Tuesday, December 30, 2014

WHAT MAY MAKE or BREAK THE MARKETS IN 2015 and how the year 2014 was?-Photo Story

Saturday, December 27, 2014

EASY WAY TO TAKE HOME LOAN INTEREST RATE CALL- especially under current scenario

Got lot of calls from known people as well as client family’s, as to what to do with their loans ( More from home loan subscribers/ to be subscribers ), especially in current interest rate market scenario?What to do with Home Loans in current interest rate scenario?

MARKET UPDATE- an Overview- Interest Rates related-

The markets are pretty confusing. If you are watching Money control or NDTV or Bloomberg or UTV or for that matter any of the business channels and if you are following any or all media forms, you will hear and notice, MIXED OPINIONS, - markets are divided- on what is the direction RBI will take on interest rate decision.

The international, political and economic recent news calls for a cautious approach and while there is no fundamental uptick in Indian Companies profits as well. Although the recent oil drop and inflation drop is a positive sign which calls for interest rate cut. Now it depends upon the RBI governer, Mr.Raghuram Rajan, to take the call. Some say he will declare interest rate cut even before next meet, while some say he will wait for the meet to declare the same and some say he will wait to decide and declare the rate cut for this meet and will do only in next meet. While international analysts say he is waiting for next step declarations from US, Europe, Russia, Japan and China and also keeping close watch on Oil rates and inflation rates as well.

My view-

While the RBI has not taken any direction call, our economy is already adjusting. If you have noted, the FD rates going a year ago were around 9.5-10 pct., which is now around 8.75 pct. The 10 year Bond yield of GOI papers is around 7.9 pct currently which was around 8.5 pct in sept. and around 9.5 pct. a year ago.So now there's official call from the Reserve Bank that may take interest rate further down.

So while RBI has not taken the call markets have already adjusted itself.

The recent Confusion for Home Loan Subscribers-

1 What to do if I have a loan currently under floating rate scheme?
2 What to do if I have a loan at Fixed rate?
3 What should I do if I am looking for a loan? Should I go for floating or fixed rate scheme?

The confusion has increased recently, when HDFC re-launched Fixed rate Mortgages i.e. it has re-launched a fixed term, fixed rate home loan scheme, where home loan for 2-3 yrs fixed rate term is in range of 10.15 to 10.35 percentage range and 10.25 to 10.5 pct. fixed term fixed rate range for 10 years.

Below is the Economic times HDFC News cut- ( Please note on the same news it is also written SBI, Union bank, not planning to cut rates )

Above I have briefed the market scenario and the cusp at what it is. The market believes a 50-75 basis downward rate call by RBI in 2015 and infact that is already factored in.

What should be your call on home loan? Well depends upon the following answers from you-

1 What is your market take on interest rate? ( Although very difficult to take interest rate call )
2 At what stage your loan is- i.e. what term is completed and how many years are pending?
3 Your kind of scheme currently
4 What are the switching from one home loan provider to another home loan provider costs?
5 What are special discount benefits the home loan provider is offering?
6 The home loan provider’s hidden charges, if any
7 When the fixed term ends, what would be the scheme of rate applicable?
8 What would be the EMI break-up? And accordingly tax benefit ( individually needs to be calculated with break-up) ?
9 Ease of operation and ease of switching of loan
10 How does it fits in your financial plan and what will be the effects of changes

An overall view on your individual situation ( depending upon above questions answers ) will help you define your Home loan call and for that you can call upon your financial consultant. He/she has the nag of the markets and if you help them understand the above queries, they can suggest you on your approach with more conformity.

What-One-Can-DO after news as on 29-09-2015 after 0.5% interest rate drop declaration by RBI-

The Finance minister asked.
The industry honchos asked. And so the RBI governor said "Take it. Happy now?"
50 basis points repo rate cut was much more than expected. This means banks now borrow from the RBI at 6.75% and get only 5.75% for their deposits with RBI.
While banks borrow at 6.75% from RBI, they borrow from retail investors at more than 9%. Why should they?
Quickly - what all does this mean to you as an investor?

In the short term
- All banks will reduce interest rate on their deposits. SBI and Andhra Bank have already announced reduced rates effective from 5th October.
- There will be a short term bond market rally.
Your debt fund investments will show a healthy gain in your next periodic review
- Foreign investors who have invested for higher rates in India will find it less attractive. Expect a flight of capital, especially NRI deposits, institutional bond market investors etc.
- Market sentiments will spike equity markets.
Banking sector might gain
- If you have a home loan on floating rate - the interest rate should fall.

What you should do?
- If you are planning to do any fixed return investments like bank Fixed Deposits, do them now. Next week, you might get 0.5% lesser.
-Call the bank and ask for lower interest rate on your floating rate home loan
- Keep investing in equities through systematic investments

In the long term
- This is good news for companies who plan to start new businesses or expand. They could borrow at lesser rates. Lesser interest costs mean better profits for industry. Which should reflect in their share prices going up. Good days for equity investors.
- Lesser inflation means more money in the hands to spend. And if saving the money is going to get lesser returns, as well spend it. Good for almost all industries. Good days for equity investors.
- You should be able to borrow at lesser rate for purchase of new house or car or anything else. Ensure your credit score is good. Whether this will improve real estate prices is hard to say.
- Lesser interest rate may be bad news for retirees or those who expect their investments to give regular cash flow. Government will be forced to reduce small savings scheme rates. Expect lesser from EPF / PPF / PO deposits etc.

What you should do
Invest in a portfolio of assets that include debt, equity, real estate and commodities.
Base the asset allocation on your goals, risk profile and cash flow needs
Protect all risks and write your WILL.
Manage Money Well, Live Well !.
Ask your Financial Consultant Now.....
                                                                                       -add on write-up, bhuvana


" Poorna Nazariya " ( Wholesome View ) , is what Arth Shastra says, is important to take any financial decision

Tuesday, December 16, 2014


Why HR / Employer seek Financial Awareness sessions, NOW, for employee’s?

What is at the top of Mind of an employee at this point of time, which also in a way is top at every employeer’s mind as well?

Well two TOP MOST upcomming events-

EMPLOYEE RE-VIEW ( INCLUDING PAY ) ( how to enhance employee engagement ?) 
TAX - DECLARATION’s PLANNING in advance for the year? ( WITH AWARENESS) ( as pay scales are also reviewed/declared) ( would that be great ?)

( this directly leads to more employee concentration and highten's productivity )

I don’t know, if you noticed, but both are in red bold, because if it is taken in right sense, and put-forth correctly, handled rightly,  it’s most enjoyable part of life.

After the year 2014-2015 is finally done with and all Employee's have just intime finished their declaration submission, it's that time of the year when they are in total touch of their net Income, Net expenses and Net Taxes paid and these sometimes leads to uncerainity and depression, if not handled properly and so less productivity. ( Reason being sometimes most people realise that their expenses are more then their desired income and hence their borrowing is more i.e. life not self-financed. ( this is time when generally companies are also thinking of employees pay packet revision )

This is also time when employee's are planning or have already planned their Vacations due to Summer Holidays, so yet more expenses.

If this feelings and time, if taken and guided in the right sense can lead to best results from and for them as well as the company

After the tax and expense season the individual comes to practical terms and feels the real ground level pressure. ( Do you as an HR / Employer/ individual, want to feel and be under pressure ?)


-          Depression
-          Less productivity
-          Some may avoid enjoyment  ( also depressing) to not do extra expenses, so absenteeism
-          Non-involvement, pre and/or post season
-          Teamwork going down
-          Only few participate actively, so groupism
-          Borrowing money from colleagues, which creates unpleasant work environment
-          Resulting into Health issues  
-     Individual budgets go for toss and non-planned expenses shoot up
-     At the end of the year, Tax filling issues, non clarity on Tax implication ans tax laws
-     All this leads to Higher Employee Attrition



I am sure you and your employee has experienced a point of time, were all have to submit  IT and investment declarations alongwith proofs and details, so that TDS, can be rightly deducted after full year adjustment by the company. This nearly one month activity is so hectic and disturbing for a lot that people have to run from pillar to post to collect papers and information. Most start searching tax details online, and all sort of misleading or/and non required details are floating around ( which actually takes a lot of time of employee ).Most also do last minute tax saving investments which they grudge later, as they find not good for them. ( but still, lot doing the same mistakes year on year, because of non-planning and in haste).People have less money for next few months and so are more disturbed. Lot of people don’t know what is deductible and not deductible, what can be claimed under which IT section and upto how much limit and what all can be claimed; so end up paying more taxes.


-          People paying more taxes then actual, and some inhaste give wrong declarations, so has to apply for refund ( which is an extra activity by itself)
-          less productivity
-          People having cash crunch
-          People having not good sleep
-          Absenteeism to handle personal finance matters
-          Lot of people fall prey for hand loan or credit card loan in these phase and few also fall into debt trap
-          Attrition- people moving to another company for small increase
-          Resulting into health issues, for self and/or family members

Well, which Employee, Employer and/or HR would not like to enjoy this summer vacation season to it’s fullest ?
More and more people are taking interest in physical, emotional and financial health- ARE YOU ?

It’s that time of the year where-

-          Involvement in Company activities can be increased
-          Person is always present at each and every part of company activity
-          Inter-personal engagement’s happen the most
-          Employer-Employee and all concerned departments and authorities are extremely involved in.
-          Where an individual can actually increase cash flows ( relatively) year-on-year
-          Attrition can be reduced
-          Productivity can be upscaled
-          Overall well-being is maintained
-          Working environment can be upscaled and/or maintained


All the above can happen for longterm only through unbiased, thruthful, loyal, trustworthy FINANCIAL WELLNESS – awareness session at your company by dedicated Lifestyle Financial Consultant.

I am going to LEH-LADAKH Summer Vacation tour at peace of mind.... ARE YOU AND YOUR EMPLOYEE AT PEACE OF MIND ?

Tuesday, December 09, 2014


What Are you currently Thinking upon?

1-      Mr.Narendra Modi, his opposition and India ? ( How India will move forward) / ( Will Shiv Sena really Support Maharashtra government for long ) / ( or will Sharad Pawar, NCP Supremo, Withdraw support ) /  ( or How will new foreign policy work in favour of India )
2-      World Economics, Terrorissm, ISIS etc.? ( How China, Pakistan, Afghanistan , Iran, Iraq, Korea,USA, Russia, Japan React to it? )
3-      How all business sectors will benefit from upcoming budget and Modinomics? How will good Governence Help India? Will GST Be launched? Will my Tax burden Reduce?
4-      How Environment is changing? ( Pollution, new diseases’, gas leakages, less greenery, less water )
5-      Will my salary improve, next year as well? Or will I have to change my current job?
6-      How this market condition will improve, so that business improves?
7-      Will SENSEX Touch 30,000 before coming union Budget? Will NIFTY cross 10,000 ?
8-      Will Mr.Rangarajan, RBI governer, reduce rates in next review meet or in between?
9-      How will my health be in future or will my health improve?Hope my family’s health remains good.
Are these actually your worries?


1-      How can I improve / upgrade my lifestyle? Can I have that Latest mobile ? or Can I gift that to my Wife?
2-      How can I prepare for my future of my desire? Children’s education, Graduation, Marriage , Business Expansion, Buying Home / Secondary Home, Retirement, buying new Mid-Segment SUV car, Vacation etc
3-      Will all my dreams be fulfilled, even if I am not there?
4-      How can I concentrate more on work and have only measured worries?
5-      How can I ensure my Family being Happy and safe, both at the same time?
6-      Can I be more with my family, more relaxed?
7-      What is my current situation like? And how far can I go ?
8-      Will me and my family have to scale down, our standard of living?
9-      Do we have to compromise, everytime ?
Are above worries your’s?

If the answer to second set of queries’ is more profound, the answer is right in Financial Planning.  " YES ".

And your worries can minimize and one can actually have only measured worries- which are required to be their, by you, cause you will start choosing worries as well, because of Clarity and Confirmity through Lifestyle Financial Planning.

Family will have better idea of their current as well as future situation. Your basic worries can go in about 2-6 months, from date of enrollment.

Just imagine a situation which most of us go through, some or the other time, which is : Daughter is not well, parents take her to Specialist and Dr.recommends to take out few reports and says about specific problems and also suggest it’s solution, so that daughter can perform better and normal, what she is made for to originally do.SO one is not sticking to the PROBLEM, but knowing actual problem and having a specific solution- does the worry minimise?

WORRIES are forever, but they are no longer your worries, once you know which have to be taken seriously.


Incorporate worry-free life , through proper Lifestyle Financial Planning.Mind you, Time is ticking, and not by your side, always.