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How to plan your finances for the New Year 2022

As we inch closer to the new year, forming resolutions becomes imperative in order to set goals for the forthcoming year. Setting a budget, getting finances in check and carefully analysing your savings and investments comprise a key part of the financial aspect of resolutions. However, there are multiple other factors that are kept in mind while making that decision. There are multiple methods and practices along with financial tools that one can use to plan finances carefully and ensure a level of financial wellness.


The Guide to Financial Planning this New Year

December is the time everyone starts setting resolutions for themselves and before the new year arrives, here are a few easy-to-implement ways in which you can plan your finances for the coming year:


Budgeting: The Foundation of Financial Planning

Almost all financial planning depends majorly on having a budget and following it diligently. It is important to analyse past income sources, expenditure, investments and savings to get a clear picture of your financial standing and then plan accordingly how you want to spend, save and invest your future income.

A fixed budget puts a healthy constraint on your expenditure as well as gives you a number that you should ideally aim to save. Adopting the 50-20-30 rule, as mentioned in the famous book All Your Worth: Ultimate Lifetime Money Plan” by Elizabeth Warren, could be a great way to start as it allows you to have a better, more crisp idea of how to spend your money while also saving a particular amount.


Monthly Savings: Your ‘Rainy Day’ Saviour

When setting up a budget, it is imperative that you set an amount aside as savings or “rainy day fund”. A financial resolution that you should strive to include in your list of resolutions is to either save an amount of money every month or have a bigger goal and amount for the end of the month.

A few ways you can save more are by sorting priorities, differentiating between essentials and non-essentials, setting up fixed or recurring deposits with a bank, etc.


Building an Investment Portfolio: Your Retirement Companion

Investments assure present and future financial safety. They enable you to increase your wealth while also generating inflation-beating returns.

After you have a fixed plan for savings, the next important step is to figure out how and where to invest. Investing instills financial discipline by establishing a habit of getting away a specific amount each month or year for your investments.


Expenditure Control

In today’s day and age, when everything is available at your finger steps, people don’t realize how vastly their spending capacity has increased. The use of mobile apps and mobile-based payments have made it easier for consumers to get things done quickly, and that has changed the way a transaction is perceived now in comparison to earlier. Preferring food delivery overcooking, multiple streaming platform subscriptions, etc are now opted more by the millennial generation.

This in turn has given rise to a lot of expenditure that is non-necessary and can be avoided very easily. Expenditure control can help increase savings and allow more assets to be invested, as the more you save, the more you can invest.


Insurance: Your Safety Net

Insurance is essentially a financial safety net that you can rely on in times of distress. It is an extremely important and valuable financial tool. Purchasing insurance is critical because it ensures that you are financially secure in the event of a life crisis, which is why insurance is such a vital aspect of financial planning.

It not only allows financial security but also reduces stress at a later stage in life, especially when things would go south. A prime example of this was the pandemic when an unprecedented crisis struck the world, and it got extremely difficult to manage finances with the increasing costs of medical expenses and aftercare. The peace of mind that insurance provided to people in such a time is also what makes it a widely appreciated policy.


Summing Up

These are the most common ways in which you can plan your finances for the upcoming year. Since these methods are evergreen, they are sure to work perennially and also across the years.

Having said that, it’s important to take these methods seriously, as most people are aware of them but tend to overlook them.

Another critical point to keep in mind is to set realistic goals and aspirations to not overburden yourself and keep things going smoothly.

These are a few ways you can ensure your financial wellness, but it is essential to keep in mind that it is a step-by-step process that you need to take one day at a time.

Source: financialexpress.com


Why It Is Important To Have A Fire Insurance For Your Business Property?

Being a business owner, you have to take care of a lot of things like overseeing operations, finding innovative ways to grow your business, reviewing financial data, and a lot more. When you are busy planning about all these important aspects, you may not be able to identify every possible risk which threatens the future of your company.

Among all, fire accidents are quite common in the workplace. It may cause huge damage to your business property. Cooking was the most common reason followed by carelessness and electrical malfunctions for such a fire outbreak. It’s important for all small business owners to take precautions and minimize the fire risk involved.


Find out fire risks at the workplace

A business owner’s policy includes general liability insurance coverage with certain property coverage. He should identify specific fire risks. After evaluating the possible outbreak, you must opt for the right fire insurance among all the policies available.


Importance of fire insurance and how it works

When you have fire insurance on a BOP, coverage will be provided regarding:

  1. New property
  2. Lost business income
  3. Physical loss or damage to the personal property of the business
  4. Betterments, office fixtures, and improvisations

​Those who buy fire insurance against their business property will stay protected from the losses incurred during the damage. If the damage occurs, you file a standard fire insurance claim. And the insurance company verifies standard claims prior to issuing compensation.

However, if you don’t know how to follow steps in the process properly, approach the agent as soon as possible.


Types of fire insurance

Usually, it’s hard to find different types of coverage specially designed for fire outbreaks at the commercial place but some provision is of great help. To cite an instance, if you know that overloaded outlets may result in fire accidents that may cause damage to the company’s computers or network servers. To deal with all this, you can avail benefits of fire policies providing electronic data loss coverage. This is an upgrade option for BOP which provides the coverage for interruption of computer operations, lost data, and e-commerce operations.

As we all know that fire from any source can destroy computer hardware so the upgrade is highly beneficial for business owners.


Advantages of fire insurance

When you have a BOP, it assures peace of mind, provides protection against physical property, and safeguard the future of your company. In case an electrical fire has caused damage to your computers and stock and you are finding it tough to continue business operations, BOP can provide coverage for temporary business interruption.

Remember, your physical property is covered and the business can easily recover in financial terms with the help of the best suitable fire insurance policy. When you fail to insure the possible business risks, there will be limited scope to reopen and start it all over again.



All in all, it’s important for every business to ensure coverage against fire outbreaks due to any reason mentioned in the policy. Choose the right fire insurance policy after important considerations.​​




Be Your Own Santa This Christmas With These Financial Gifts

Christmas is upon us, and it is that time of the year when we eagerly look forward to giving and receiving secret Santa gifts. However, what if this Christmas is a little different from the rest, and instead of expecting gifts, you present yourself some. And, what if they are financial ones that can help you going forward?

Read on to know the multiple financial Christmas gift ideas to help you secure your future and augment your riches. Let’s get started.


Mutual Fund Investment

Mutual funds need no introduction. They are one of the most potent financial tools to help you accumulate a corpus for different life goals – short and long term. Thanks to rising financial literacy and innovative campaigns such as Mutual Funds Sahi Hain, they have become quite popular among investors.

This Christmas, you can contemplate investing in mutual funds to achieve your goals.

If you are investing in mutual funds for the first time, you need to be KYC-compliant, post which you can invest in your chosen fund. You can invest through a systematic investment plan (SIP) or lump sum. In the former, a certain amount of money is deducted and invested in your chosen fund on a specific date. On the other hand, in the latter, you invest a chunk of money at one go.


Long-term Stock Investment

Long-term stock investment can help you gain inflation-beating returns. Investment in fundamentally strong stocks can help you nullify the effects inflation has on your wealth. Note that stocks are volatile in the short term. Only if you remain committed to them for the long haul can you make real gains.

When markets crashed in March 2020, many investors panicked and took the exit route. However, those who remained committed to their investments enjoyed meaty gains. So, if you are investing in stocks, adopt a long-term strategy and stay committed to your investment, come what may.


Building Emergency Fund

An emergency fund is an absolute must, and Covid-19 has further accentuated its importance. While earlier it was advisable to have an emergency fund equivalent to six months’ expenses, given the recent experience, it’s recommended to have a fund close to a year’s expense. You can build it by investing in instruments such as liquid funds that invest in debt instruments maturing in 91 days.

For that matter, you can also contemplate investing in a bank fixed deposit to build an emergency corpus. Make sure the corpus is easily accessible. Don’t chase returns, and capital safety should be your prime concern.


Buying Health Insurance

Health insurance prevents out-of-pocket expenses during a medical emergency and prevents drying up of savings. This Christmas, you can gift yourself a health insurance policy to ensure funds are not a paucity in receiving the best possible treatment. You can either buy an individual plan or a floater policy that will cover all the members of your family.

Compare different plans and choose the one that best fits your needs. Also, while filling up the proposal form, provide accurate information as any wrong information could result in claim denial. If you live in a metro, it’s wise to have a policy with a sum insured of a minimum of Rs. 5 lakhs. On the other hand, if you already have a health plan, review it to ensure that the sum insured is adequate.



Buying yourself these Christmas gifts can hold you in good stead in the years to come. They will help you accomplish your goals and ensure a smooth ride amid turbulence. Merry Christmas!

5 Most Common And Avoidable Tax Saving Mistakes

Morgan Stanley’s advertisement on tax-saving showed a catchy line, “You must pay taxes. But no law says you have to leave a tip.” The ad highlighted the importance of not ignoring the opportunity to legally save on taxes. Because, the lower amount of taxes you pay, the greater is your disposable income.


Mistake 1: Delaying Tax Saving Planning Till March

Many people delay executing a tax-saving plan until the end of a financial year, i.e., March. However, this is far from a good strategy. The truth is that the sooner you start working on your tax-saving planning, the better.


For instance, if you invest money in your PPF account in the first month of the financial year, you will receive a lot more tax-free interest for the year than investing the money in March.

Similarly, starting financial planning early in the financial year allows you the convenience of investing in an ELSS fund via the SIP route. Otherwise, you will have to put a large chunk of money later in the year. And this can be pretty troublesome from a cash flow perspective. Moreover, you may also end up borrowing money from credit cards to invest, which is a horrible idea.

So, don’t make the mistake of waiting until March to start your tax planning.


Mistake 2: Tax Saving Is Only About Investing

People often assume that tax saving is only about investing money in tax-saving products. It happens because much of the marketing effort is attracting your attention to products like ELSS, tax-saving fixed deposits, insurance policies, etc.

However, investing is only one part of sound tax management. The other important part that doesn’t receive due attention is how you manage your spending. Income tax laws allow for several deductions from your taxable income for certain expenditures that you make. For instance, payment of children’s tuition fees, health insurance premium, repayment of home loan, education loan, and house rent are expenses that quality for a tax deduction.

As a taxpayer, you need to explore all such tax-saving options to determine what works best for you. The more prepared you are with the tax laws, and the sooner you act on them, the better are your chances of minimizing your tax outgo.


Mistake 3: Not Evaluating Enough On Tax Saving Products

You can evaluate every tax-saving investment option on three broad parameters. The first parameter is liquidity, which simply means the ease you can access and withdraw your money when you need it. In this regard, you must have a clear understanding of the instrument’s lock-in period in addition to the premature withdrawal rules, including its taxability and penal charges.

The second broad parameter when evaluation a tax-saving financial product is the risk of losing money. Some investments are inherently volatile. And these are generally the investments that have some component of equity in them.

Public Provident Fund Debt No 7 – 8%
Equity Linked Saving Scheme (ELSS) Equity Yes (Moderate) 12 – 14%
Sukanya Samriddhi Yojana Debt No 8%
National Savings Certificate Debt No 7%
Post Office Time Deposit Debt No 7%
Bank Tax-Saver Fixed Deposit Debt No 6 – 7%
National Pension System (NPS) Equity & Debt Yes (Low) 8 – 12%
Unit Linked Insurance Plans Equity & Debt Yes (Moderate) 7 – 12%

* Estimates Based On Historical Performance; May Not Sustain In The Future

That said, it is also crucial to factor that the presence of equities allows instruments like ELSS, ULIPs, and even NPS to offer inflation-beating returns over the long run. So as an investor, you need to ask yourself how comfortable you are in tolerating some volatility in the portfolio to make more returns.

Finally, the third parameter you need to consider when picking tax-saving products is their post-tax returns.

Public Provident Fund Tax-Free
Equity Linked Saving Scheme 10% Tax Payable On Long Term Capital Gain Exceeding ₹1,00,000
Sukanya Samriddhi Yojana Tax-Free
National Savings Certificate Interest Earned Is Taxable
Post Office Time Deposit Interest Earned Is Taxable
Bank Tax-Saver Fixed Deposit Interest Earned Is Taxable
National Pension System 60% Maturity Is Tax-Free; Rest 40% Goes To Annuity Which Is Taxable
Unit Linked Insurance Plans Mostly Tax-Free Except Where Annual Premium Exceeds ₹2,50,000

Investors generally check for tax benefits in terms of the deduction it allows. For example, a PPF or ELSS offers deduction under Section 80C. NPS provides a little more.

But what’s equally important to understand is the taxation on the income earned by that asset. And also how the maturity proceeds and early withdrawals will be treated from a taxation perspective.

Understanding these aspects can not only help you zero in on the right investment product, but it can improve your post-tax returns as well.

A big problem with not having an acceptable awareness or knowledge of tax-saving instruments is the inherent inefficiency in the planning process. This inefficiency often passes down as a legacy from parents and other well-wishers.

Consequently, many investors continually invest in LIC policies and other small saving schemes that typically struggle to beat inflation. While such investments with subdued returns can help you save some taxes in a particular year, you may end up wasting a lot more in potential returns on your money by investing in these products.


Mistake 4: Investing In Insurance-Cum-Investing Products

Every year in March, millions of Indians blindly invest in traditional life insurance plans like endowment and money-back policies to save taxes.

Such is the last-minute rush that life insurance companies have effectively marketed the month of March as India’s tax-saving season. And it should come as no surprise that insurance companies rake in around 20% of the entire year’s traditional life insurance policy sales.

Now, from a utility perspective, these insurance-cum-investment plans offer meager returns and often struggle to catch up with the long-term inflation rate, which is about 6%. Not just that, these products deliver lower returns than what a PPF, National Savings Certificate, or other small savings schemes offer.

Additionally, these insurance plans come with an investment commitment that runs from 10 to 20 years, and any attempts at a premature withdrawal or policy closure attract a heavy penalty.


Mistake 5: Not Diversifying Your Tax Saving Investments

All the tax-saving products come with lock-in requirements. As a result, they seldom align with your short-term financial goals. That is why you must understand how these investments fit within your overall long-term financial goals.

Most individuals rarely look at their investments in PPF, EPF, and other instruments as part of their overall financial portfolio. In effect, such investors grossly miscalculate their asset allocation.

Consequently, they invest less in the equities and miss the chance to accumulate a bigger corpus in the long run. While they think they are in a particular risk profile, unfortunately, their investments are stuck in a different risk basket.



Tax planning investments are no different from conventional investments. The basic principles such as asset allocation or diversification apply to managing tax-saving investments as well. Now that you know the most common and avoidable tax-saving mistakes, you can reflect on how you work your tax-saving activities.


Do I Need A Term Insurance If I’m Healthy

You often plan for your rainy days, your financial goals, your retirement, but forget to value what you really have, i.e., the present. You need to invest in your present in order to secure your future. This means that even if you are healthy today, you need to invest in a term insurance plan in order to ensure your family’s financial security in your absence. You don’t know what happens to you or your loved ones the next minute. There’s a possibility that your health deteriorates in the future or when you get old. Thus it’s good to buy a term plan now before it gets too expensive or you become uninsurable. Besides, here’s a list of reasons that shows why is it important to buy a term insurance plan irrespective of the state of your health.


Easy to understand

 As compared to other life insurance plans, term plans are easy to understand. All you have to do is pay your premiums and get insurance coverage for the term period chosen by you.



If your budget is tight, then it’s ideal to buy a term insurance plan as it costs less than other insurance plans. Moreover, term insurance is good for a person who has a low income but needs higher coverage.


Tax benefits

This is yet another significant benefit of buying a term insurance plan. Not only premiums paid for term insurance are less, but they are also eligible for tax benefits. You get to enjoy tax benefits on the premiums that you pay towards the term insurance plan as per Section 80C and Section 10D of the Income Tax Act, 1961. Tax benefits under the term insurance plan are as per prevailing tax laws that are subject to time to time amendments.


Lower premium rates

The premiums paid for term insurance plans are much less as compared to other plans. Therefore, buying a term plan is the best option for someone who gets a moderate income and is the only breadwinner in the family.


Spousal cover

You get the option to cover your partner under the same policy.


Financial security

It is important to have a term insurance plan if you are the only breadwinner in the family as a term plan offers coverage to your family if something unfortunate happens to you.

It offers financial coverage that takes care of your family’s financial liabilities in your absence. Thus, if you don’t want your family to compromise on their lifestyle in the future, then it’s good to buy a term insurance plan for your family.


Flexible premium payment option or term

A term insurance plan also gives you the flexibility to choose your premium payment option. Premium payments can be made either monthly or annually, depending on the choice of the policyholder. Also, you get the flexibility to choose your premium payment term that ranges from 5 years to 40 years.


Rider benefits

Term insurance plans also come with add-on coverage options if you want to enhance the coverage of your policy. You can easily get a rider by paying some additional cost along with the basic premium of the policy.


Whole life coverage

A term plan offers financial security for a longer period of time. You get the life coverage option of up to 80 years along with in-built death and terminal illness death benefits.


On the whole, investors need to know that term insurance plays a very important role in your financial planning.


7 Ways Smart Spenders Save and Invest Their Money

Spend today, or save for tomorrow? The former gives us a rush of instant pleasure, while the latter helps us build a solid future for ourselves and our families. However, what’s the point of putting in long hours at the office if you cannot enjoy the fruits of your labour – at least partially? The key lies in maintaining a balanced approach between saving and spending so that one act does not cannibalise the other. Also, it’s essential to invest in mutual funds through SIP’s to let your ‘savings’ compound and grow over the long term. Here are seven things all smart spenders tend to do. You should, too!


1.    They save first

While reckless spenders indulge themselves to their content the day their paychecks hit their accounts, smart spenders save for their financial goals first. They’ve usually got a well-documented financial plan in place,

and with it, they have a fair degree of awareness about just how much they need to put away each month to make these dreams a reality. Having saved first, smart spenders enjoy the luxury of ‘guilt-free spending’.


2.    They have a written budget in place

The boring old budget is the bedrock of the smart spender’s financial plan. By earmarking sums of money each month for things such as home purchases, dining out, electricity, fuel, and the like, they inadvertently follow the tried and tested ‘coffee can’ system of bucketing monthly spending.

If they exceed their budget in one category in a given month (say, a great play hits but the tickets cost a bomb), they cover the deficit by scrimping on another one ( clothes bought for one month never killed anyone!).


3.    They ‘sleep’ on large purchases

Smart Spenders avoid the infamous “buyers regret” syndrome by delaying the impulse to make big-ticket purchases before properly thinking them through. Tempting as that 100-inch flat-screen TV seems to them as they stroll past it in the mall, smart spenders will rarely succumb to the impulse buy.

Instead, they’ll head home and contemplate the purchase decision and its ramifications with the mind. If it still seems good tomorrow, they’ll head right back to the mall and buy it!

4.    Occasionally, they observe ‘fiscal fasts’


Smart spenders are known to go on self-inflicted ‘fiscal fasts’. These purchase hiatuses could last from a few weeks to a few and can be very cathartic indeed. By restricting themselves to only spending on ‘needs’ and not ‘wants’ for a few weeks in a year, smart spenders effectively deleverage themselves – scaling back on money-draining, costly credit and stabilising their financial situations in the process.

In doing so, they also build their willpower to resist impulse purchases that could potentially set off a vicious cycle of unhappiness-inducing credit.


5.    They don’t bother with ‘keeping up with the Jones’s

Smart spenders understand that buying things merely to impress others is utterly futile, and akin to a never-ending race with a constantly shifting goalpost. They buy things with the singular intent of making themselves happy.

They never overextend their finances and spend their future incomes by taking on expensive personal loans or strapping on EMIs on their credit cards. In other words, they spend what they have, and for themselves alone.


6.    They know that saving isn’t investing

Smart spenders understand that saving money alone won’t make them rich unless they invest it fruitfully. Instead of procrastinating their investments, they deploy their savings into mutual fund investment plans through SIP’s, to secure their financial futures. Without curtailing their financial freedom, they invest in mutual fund SIP’s, which allow them to amounts as small as Rs. 500 per month.


7.    They believe in ‘tax-saving’ wealth creation

Smart spenders invest in tax-saving mutual funds and enjoy ‘tax-saving wealth creation’. They start their SIP’s into tax-saving mutual funds early on in the financial year and enjoy deductions under Section 80(C) in the process.

Smart spenders usually choose ELSS mutual funds over traditional tax-saving instruments, which give them the dual benefits of tax saving and wealth creation.



6 Benefits of Health Insurance.

A health insurance policy is primarily designed to cover you financially in case of a medical emergency caused by illnesses, accidents, or hospitalization. It has long-term benefits that make taking a health insurance policy a definite goal in your annual financial plan.

Let’s look at how a health cover can benefit you.


Hospitalization Cost

One of the most pertinent benefits of a health insurance policy is that it covers expenses for hospitalization, whether it is for accidental injury, daycare expenses, capping on room rent, or illness.


Pre-and Post-Hospitalization Expenses

When an individual takes treatment at a hospital, there are a series of visits by doctors along with the diagnostic tests that are required to be done for you before you get treated as well as after. These expenses are considered by certain health covers also transport costs.


Cashless Treatment

Generally, insurance companies have tie-ups with hospitals, known as network hospitals that offer cashless treatment to the insured in case of hospitalization. These hospitals reimburse the expenses related to treatment availed by the insured. This means you can avail of treatment at these hospitals without paying anything for the medical expenses.


Health Check-Ups

Health insurance plans are designed to primarily take care of financial stress in case of a medical emergency. However, insurers also want people with good health in their portfolios. To ensure an individual is aware of their health, most health insurance plans offer preventive health check-ups every year


No Claim Bonus

Health insurance not only covers the medical expenses of those who have to seek hospitalization for illness or accidental injury but also rewards those who do not have to avail the benefits of health insurance and do not make a claim in the policy period. A “No Claim Bonus” can be earned up to 100% of the original sum insured in the policy.


Income Tax Rebate

While an individual pays the insurance premium for health insurance, there is an immediate financial benefit in the form of income tax rebates on premiums paid by an individual. In India, health premium rebates are as follows:

. Health insurance for self and family (spouse and children) is INR 25,000.

.If an individual or spouse is 60-years old or more, the deduction available is INR 50,000.

Source: forbes.com

In Your Thirties? Avoid These Common Retirement Planning Mistakes!

Are you in your thirties right now? Your retirement may seem a long way away today, but this is really the best time to start planning for it – if you haven’t already. A multitude of factors is increasing the need for maintaining structured, disciplined, and committed action towards your retirement portfolio. Here are four mistakes to avoid on your journey.

Planning only for your Child’s Education

There’s nothing wrong with aspiring for a great education for your child, but it would be a mistake to shovel away every last saved penny towards your child’s education, without paying heed to your own retirement. Remember, you’ll be able to avail education loans for your child’s education, but not for your own retirement. The interest on these loans is fully tax-deductible too. Also, would you really like to become a financial burden on your kids at a time when they’re just finding their feet in their careers?

Being a Low-Risk Taker

When it comes to Retirement Planning, don’t think twice – just divert your regular retirement savings (such as Mutual Fund SIP’s) into an aggressive investment such as a mid-cap-oriented equity fund anyhow. When it comes to Retirement Planning, high risk/ high return Mutual Funds Sahi Hai! If you allow your individual risk tolerance to dictate your choice of retirement savings avenue, you could end up retiring with lakhs of rupees – if not crores – less. Be careful, as a 5-6% difference in annualized returns compounded over three decades, is a lot more than you think.

Choosing the NPS over Mutual Funds

Sure – the NPS is a low-cost investment and represents a massive improvement over traditional endowment life insurance plans and fixed deposits, but they need more reforms before they can become your one-point retirement solution. For one, the NPS bars you from taking more than a 75% exposure to equities. In addition, your equity allocation is mandatorily slashed by 4% every year after your 35th birthday, and this can hamper your long-term returns. While the NPS is definitely worth considering, make sure that the lion’s share of your retirement savings still flows into Mutual Funds.

Getting stuck into a Pension Plan

Buying a pension ULIP is an avoidable step on your retirement planning journey. After all, when your pension ULIP matures, you’re permitted to withdraw just 1/3rd of the funds tax-free under section 10(10D) of the income tax act. The remainder, you’ll need to put away in an annuity that’ll give you a post-tax annual yield of just 5-6%, depending upon your tax bracket, and the option you choose. Just stick with regular Mutual Funds or bluechip stocks during the accumulation phase.

Why Is The Stock Markets Falling In India: Two Important Reasons.

Stocks markets in India are experiencing a downward trend in December. On December 6, Monday, NIFTY 50 has fallen by 284.40 points and SENSEX has fallen by 949.32 points, which has worried investors today and for the upcoming weeks.



The most important reason, because the stocks markets in India are falling, is the new Covid variant named Omicron. In India, a total of 21 cases have been detected that were infected from the Omicron Covid variant, and on Sunday, December 5, a total of 17 fresh cases were reported from Delhi, Maharashtra, and Rajasthan. So, Indian investors are much worried about the inception of another wave from the new variant. The earlier delta variant has already affected the Indian stocks markets largely. During the first two waves, major manufacturing activities were hampered, profits of the companies drowned. Sectors like automobile, real estate, constructions, infra have plunged.

On the other hand, pharma, and IT stocks have gained. In that situation, Indian investors are concerned that if a new Covid variant again surges in the country, affecting the companies.


So, the stock indexes fell significantly today. However, India has reported 8,306 new Covid cases yesterday, and the active cases are 98,416 now. This is the lowest contamination rate in the last 552 days, according to the health and family welfare ministry. So, equity investors are struggling for clarity, should they think the pandemic is under control, or will the Omicron rise as a big threat?




The second reason behind this fall is inflation. Indian central bank, the RBI is having its Monetary Policy Committee (MPC) meeting today. The MPC on December 8, will declare its monetary policy, and how are they thinking about the high inflation rate in the country. Surging inflation will drag down customers’ purchasing capacity, which will be a stress for the companies. India’s present CPI inflation is 4.48%, and the headline inflation in the US is above 65, which is the highest in the last 30 years.

Hence, the rising inflation rate is concerning investors more, according to analysts. Commenting on inflationary pressures and bearish trend of the stock markets, Nikhil Kamath, co-founder of Zerodha told English news daily Mint, “Fear surrounding the new variant may lead to travel restrictions and lockdowns,

which can, in turn, reduce oil demand, thereby cooling off inflationary pressures to some extent. The biggest risk to the markets according to me isn’t this but inflation. I believe it’s best to stay defensive until a clear trend emerges.” He also believes that during the pandemic many stocks have gained significantly, and “Omicron alone can erase all those gains”.

Source: goodreturns.in

Why you need a Financial Advisor – now more than ever!

History tells us that stocks tend to outperform all asset classes over the long term. But while paper returns from equities and equity mutual funds remain strikingly impressive, the unfortunate reality is that few investors end up reaping their rewards to the fullest possible extent. 

More often than not, the reason for this dichotomy between published and actual returns is the lack of support of a qualified, competent, and unconflicted Financial Advisor acting on your behalf.

The need for support from a Financial Advisor becomes all the more pronounced during times like these. Gripped with COVID-19 induced panic, markets have turned fiercely volatile – and most portfolio values have sunk deep into the red. 

Even the haven of debt funds has proved fickle. As an investor, your mind will undoubtedly be spinning with a hundred questions. Should you stay invested or redeem? Should you switch your money to less risky assets… or switch your money into more risky assets? Will markets continue to fall further? Should you rebalance your portfolio at this time? Should you stop your SIPs and restart them at a more opportune time? And, so on and so forth. 

In testing times like these, a Financial Advisor can help you stay on the straight and narrow path to wealth creation. Here’s how.

Saves you from Yourself

Guess who is your worst enemy when it comes to creating wealth from your investments? The answer is – you, yourself! As markets oscillate between the depths of pessimism and the heady heights of euphoria, even the most seasoned investors fall prey to greed, fear, and a host of other behavioral traps. 

By drawing upon their experience of past market cycles, seasoned Advisors can help you sidestep regrettable investment decisions such as bailing out at market bottoms or piling on investments near market tops.

Steers you clear of Avoidable Investments

It’s a sad truth that a poor investment is always lurking around the corner. From the ULIP saga of the 2000s to the YES Bank AT-1 bond write-off crisis this year, investors often tend to fall prey to bad investments – usually goaded by salespeople masquerading as Financial Planners. 

Having a trusted Financial Advisor who can trawl through the fine print on your behalf can be a great source of strength for you, as you’ll be able to steer clear of getting locked into poor investments that can end up destroying a great deal of your hard-earned money over the long term.

Helps you see the Bigger Picture

By aligning your investments to your long-term and short-term goals, A Financial Advisor can help you see the bigger picture concerning your investments. In ensuring that you invest according to a fixed roadmap with pre-defined time-bound milestones, your Advisor can ensure that your investments are perfectly aligned to the tenor of your goals; hence, only long-term money flows into higher-risk assets. 

As a result, you’ll be a lot more immune to the ups and downs of the markets, because your perspective on investing will be dramatically and positively altered.

Helps you pick the right investments

Left to their own devices, most investors tend to use short-term past returns as the barometer for choosing investments. However, this myopic tendency is the exact opposite of ideal, because what goes up comes down – and vice-versa! 

Using their expertise and drawing upon concrete research that is generally not available in the public domain, a Financial Advisor can ensure that you select the right investments for your portfolio. 

In doing so, your Advisor ensures that your portfolio is spread across investments that are poised to outperform in the future and deliver fantastic risk-adjusted returns to you over your defined investment timeframe.

Get in touch with us today to begin your journey to Financial Freedom!

Source: Finedge