ગુજરાતીમાં વાંચો: શું ઉદ્યોગપતિઓએ નાણાકીય સંપત્તિમાં રોકાણ કરવું જોઈએ?

Recently, I reconnected with an old school friend after many years. As we caught up, we talked about life, our families, and the paths we’ve each taken. My friend shared that he had sent his daughter abroad for further studies, while his son stayed in India, as he hoped to pass on the family business to him. With an annual turnover close to Rs. 40 crores, my friend envisioned his son stepping into his shoes. However, he admitted to being concerned—his son seemed reluctant to join the business, partly because he resented how often his father was away, spending about 15 days each month traveling for work. His son didn’t want his own family to feel that same absence.

As our conversation shifted to investments, he surprised me by saying, “If I earn 17-18% on turnover, why should I bother investing elsewhere?” This isn’t the first time I’ve encountered this mindset. Many business owners believe that if they can generate high returns within their business, there’s no need to diversify or invest elsewhere.

To those with a similar perspective, I’d like to point out a few crucial considerations:

Market Competition and Uncertainty: With competition and rapid changes in the market, there’s no guarantee that today’s successful business will thrive tomorrow. 

Fluctuating Margins: Many industries face volatile pricing, and profits can quickly erode in both manufacturing and trading. Service-based businesses are also feeling the pinch, with tighter margins and increasing direct-to-consumer models that eliminate middle layers. 

Generational Shifts: Children who see their parents’ demanding schedules often grow up reluctant to follow the same path. A farmer’s child, for instance, may choose a stable job over the tough life of farming, having witnessed firsthand the hardships their parent faced.

Risks of Business Dependency: What happens if the business owner suddenly faces health issues, disability, or even death? Who will step up to run the business? And if there’s a manager, can they be trusted to operate with the same dedication without direct oversight?

These are just a few scenarios. Life can throw unexpected challenges our way. In such times, investments become our safety net. Think of income as flowing water and investments as water stored in a dam—save while you’re earning. And remember, investing in business is not the same as investing in financial instruments. Diversifying your wealth offers security that business alone cannot provide. Even if you have a big business empire, it is always wise to invest in financial assets like mutual funds, stocks, fixed deposits etc.

Investments are done with one simple purpose, which is to fulfil needs and build wealth in a way that investors have peace of mind. This peace of mind, however, comes at a cost. 

There are a lot of questions such as figuring out the right amount to invest and choosing the right asset class. Moreover, investors have numerous options to invest hard-earned money. Due to these options available to the investors, there is confusion in selecting the right product to fulfil needs and generate wealth.

Today's world is highly interconnected, with the plethora of information being disseminated; people can now make decisions such as what phone or laptop to buy just by reading features online. However, there are some things that cannot be replaced. When it comes to investing, taking decisions on your own can sometimes be detrimental.

There are around 43 mutual fund houses in India and hundreds of mutual fund schemes lying in different categories to choose from. Even with knowledge of asset allocation, diversification, and risk profile, it is difficult for investors to research all the schemes and choose the best one that is perfectly suitable for them. This is where a mutual fund distributor steps in. 

The task of a mutual fund distributor is to understand the needs of the investor, analyse their risk profile and give the right guidance to the investors when it comes to mutual fund investments. They act as a bridge between the investor and the mutual fund house, providing valuable guidance and recommendations on investment decisions. A mutual fund distributor facilitates the buying and selling of mutual funds for their clients. With time, one can easily realise that a Mutual fund distributor plays a vital role in the wealth-building journey of investors.

In addition, they offer personalized support to investors, helping them navigate the complexities of the investment world and providing on-going guidance as needed.

Investors need someone to handhold them and walk with them through their path in times of market turbulence. Mainstream theories of finance assume that investors are rational and they don’t let their emotions play a part in their investment decisions. However, time and again, studies have contradicted this assumption. Mutual fund distributors can assist investors on the right path and help them fight these behavioural biases.

Let's look at the role which mutual fund distributors can play in the journey of wealth-building for their clients:

Assessing risk profile: A mutual fund distributor can help the client to understand their risk capacity and risk tolerance and help choose products where their risk is optimised. A mutual fund distributor can suggest to their clients how much risk they can take depending on their age and income. Moreover, they can help their customers diversify their risk, hence optimising their returns and protecting them from potential losses.

Need-based investment: Mutual fund distributors help investors analyse their needs and define the correct investment path based on their needs. While some needs are common for most investors, there might be varying needs for investors which can be tailored by the mutual fund distributors. Such needs can range from long-term accumulation of wealth to temporary management of surplus cash. With the needs in place, distributors can make a plan on how to priortise and fulfill their needs with mutual funds.

Emotional biases: Investors in general may act based on their emotions, especially during extreme market movements. When the markets are going high, they may become greedy and invest more by paying a premium while when the markets are low, investors become fearful and hence book losses. A mutual fund distributor can handhold investors during such times and remind them that the right way to fulfill financial needs is by benefitting from volatility and avoiding irrational decisions. Also, with someone always there to guide and handhold you, you are less likely to make costly mistakes.

Regular monitoring and reviews: Once an investment is made by the client, the task of the mutual fund distributor is to regularly monitor the portfolio and keep a track of their needs. He is the person you trust to be looking after your mutual fund portfolio, even when you are not, making sure you make the most of opportunities that the markets throw at you. 

With regular monitoring and reviews, mutual fund distributors can guide investors in rebalancing their asset allocation in order to achieve their financial objectives. Distributors also provide periodic reports and insights to assist investors to keep track of their investments.

Knowledge and research: Mutual fund distributors are certified individuals and are expected to have in-depth knowledge of the ins and outs of mutual fund products. They would be good at identifying suitable fund categories and would recommend funds based on your needs and risk profile, ranging from the fund categories to behavioural biases of investors. They can use this knowledge to help investors make informed decisions and guide them in choosing the right mutual fund portfolios that align with their financial needs.

Handling queries and concerns: Mutual fund distributors are there to take care of all the operational and compliance matters pertaining to mutual fund investments. He is the first person an investor will call up in case of any query or complaint with respect to any transaction, holdings, or non-financial requests. Having someone to assist you only makes things more convenient and hassle-free.

To summarise, a good mutual fund distributor can play a transformative role in the overall financial success of investors. They can impact better decision-making and optimal management of mutual fund investments. They can also contribute by motivating and pushing you to save more and stay invested longer, thereby helping immensely in the long-term wealth building journey. 

With time, when a mutual fund distributor performs the role that he is expected to, it translates into financial well-being and peace of mind, things that cannot be quantified in numbers.

(The author of this article is CEO, NJ Wealth Financial Products Distributors Network)

This is an article every parent must read till the end. It will work as an eye opener for many of us.

We live in a society where majority of us inherit house and wealth from our parents who have inherited it from their parents. The longevity of lives due to better medication and health facilities have brought us to a stage where joint families have senior citizens living with their children who are  in their mid-fifties who in turn are living with their children in their teens.

Wealth creation is a long term process where one invests and creates long-term wealth, uses it and passes the rest to the next generation.

Now to start with the main text of article, today’s youth is finding difficult to get a decent job. If they get a good job they do not get a desired pay, if they get desired pay, they do not get the time to spend on desired activities. So the problem is, majority of youngsters live a life with discontent. Many of my clients are senior citizens who have lakhs of rupees in real estate, FDs, Mutual Funds and Stocks. The combined net worth is in crores. But, when I approach younger family members for SIP, they find it difficult to shell out even Rs. 5000 a month. On inquiring to the senior citizens about their intentions for distribution of wealth, I have a few common answers…..

1. The male super or senior citizen says I will give my wealth to my wife if I die first and let her decide what she does later on
2. The female super or senior citizen says I haven’t thought of what to do but ultimately my children will inherit it from me
3. Another excuse they have is, if we distribute wealth, our children may not take care of us or may not live with us. Ultimately they will inherit when we die, so why to take the risk?
4. Still we have few years to live; we may have sudden medical expense which we want to pay from our wealth
5. We will gift it to our grandchildren. And many more reasons which have no logic.

The mid generation is working hard to up bring their children due to rising cost of education, increasing demands and inflation. The teenagers find it difficult to earn due to which they have expectations from their parents. Two lower generations are struggling while the top generation is wealthy but afraid to distribute wealth. The middle generation inherit wealth when they would have lost their interest in life. Their Hair turning white and teeth turning black. Wealth inherited after fifties is useless for having fun in life. The mid generation having experienced this will repeat the same. This becomes a vicious cycle.

The big question here is why do parents find such excuses for not distributing wealth?

I would like to present some of my observations for such behavior,

1. Having no medical insurance keeps them afraid due to rising medical costs
2. Not having life insurance make the couples feel insecure
3. Not having a proper financial plan due to which there is a constant fear of dying poor
4. Having a mentality of “we have lived like this, why can’t other generations live the same?”

Look at the plight of entire family, the one who has money cannot and doesn’t spend; the others who want to spend do not have money. The money with the topmost generation is sufficient for all generations to live a happy life but there is fear. The fear is due to lack of financial planning.

This is my sincere request to all those reading this article, have a financial plan. It includes investment, insurance, wealth creation and distribution. Don’t repeat the same mistakes that the current elder generations have made. Let the young generation live a happy life if their parents or grandparents can afford it for them. Buy them a ticket for travelling with their family, take them out for dinner, gift them and their children with useful gifts, buy them a vehicle for which they have spent years dreaming of, gift them something precious on Diwali and new year, if you see them planning for something than give them a financial push and support, buy a financial plan for your grandchild which will relieve their parents of financial burden (I have 48 clients above 60 years of age, of them about 39 have grandchildren. Only 2 clients have done this for their grandchild). Spread happiness. All this comes with just Financial Planning. Let's distribute happiness

Read in English

દિવાળી, રોશનીનો તહેવાર. જૂનાને બહાર કાઢીને નવામાં રણકવાનો તહેવાર. ઘરના લોકો લગભગ એક મહિના અગાઉથી જ દિવાળીની ઉજવણીની તૈયારીઓ શરૂ કરી દે છે. ગૃહિણીઓ મીઠાઈઓ અને નમકીનનું આયોજન કરે છે, કમાનાર કપડાં, મીઠાઈઓ, મુસાફરી, ભેટ અને ફટાકડા માટે બજેટનું આયોજન કરે છે. તે બધું ખૂબ સુંદર લાગે છે. ચારે બાજુ ખુશીઓ, લોકો તેમના જીવનમાં પરિવર્તન લાવવાનો પ્રયાસ કરી રહ્યા છે. દરેક વ્યક્તિ પોતાના માટે બકેટ લિસ્ટ ધરાવે છે. દિવાળીની ઉજવણીના આ બધા ઉત્તેજના અને ઉત્સાહ વચ્ચે, પ્રકાશના આ તહેવારની એક કાળી બાજુ છે. તે ફટાકડા છે. ફટાકડાના ભાવમાં નોંધપાત્ર વધારો થયો છે અને દિવાળીની ઉજવણીમાં ફટાકડા માટે બજેટની ફાળવણી પણ વધી છે. સરેરાશ એક પરિવાર 3000-4000 રૂ. તેમના બાળકો માટે ફટાકડા પર ખર્ચ કરે છે.

શું તમે જાણો છો કે જ્યારે આપણે ફટાકડા ફોડીએ છીએ ત્યારે શું થાય છે?

1. ભારતમાં ફટાકડા ઉદ્યોગમાં 50,000 થી વધુ બાળકો કામ કરે છે. તેઓ કોઈપણ સુરક્ષા સાધનો અથવા તો માસ્ક વિના કામ કરે છે. ક્રેકર પાવડર શ્વાસમાં લે છે જે તેમના ફેફસાને નષ્ટ કરે છે. જ્યારે અમારા બાળકો ફટાકડાના અવાજ સાથે આનંદથી ચીસો પાડે છે, ત્યારે કેટલાક બાળકને શ્વાસમાં લેવાતા રસાયણોને લીધે ફેફસાં ભરાયેલાં હોવાથી ખાંસી આવે છે.

2. દર વર્ષે ફટાકડાના કારણે આગ લાગવાના સેંકડો બનાવો બને છે. ત્યાં ઘણા અકસ્માતો, જાનમાલને નુકસાન અને જાનહાનિ છે. આ બધું શેના માટે? આનંદની થોડી ક્ષણો?

3. આ ઉજવણીનું એક વિચિત્ર પાસું જેના વિશે કોઈ વિચારતું નથી. ચાલો હું તમને એક પ્રશ્ન પૂછું. શું તમે ઉજવણી કરવા અને આનંદ માણવા માટે મહેનતના પૈસા બાળી નાખશો? તમે પાછા પૂછીને ચોક્કસ જવાબ આપશો, તે કેવો મૂર્ખ પ્રશ્ન છે? બરાબર. આ લોકો શું કરે છે. તેઓ ફટાકડા ફોડે છે જે માત્ર ચલણના બદલામાં મળે છે. તેથી જ્યારે તમે ફટાકડા ફોડી રહ્યા હોવ ત્યારે તમે આડકતરી રીતે સળગતી રોકડનો આનંદ માણી રહ્યા છો, જે તમારા બાળકની ઉંમરના બાળકને નરકની કામકાજની પરિસ્થિતિઓમાં પીડાય છે અને છતાં તે અવેતન અથવા ઓછા પગારમાં રહે છે અને શારીરિક શોષણ પણ કરે છે.

શું તમે જાણો છો કે જ્યારે આપણે ફટાકડા ન ફોડીએ ત્યારે શું થાય છે?

1. ફટાકડા ઉદ્યોગ ઉત્પાદન માટે ઓછા બાળકો અથવા કામદારોને રોજગારી આપશે. તેઓ અન્યત્ર કામ કરશે જે મને ખાતરી છે કે ઓછું જોખમી હશે

2. તમે પહેલાથી જ અસ્તિત્વમાં રહેલી પ્રદૂષણની સમસ્યાને ઉમેરવા માટે યોગદાન આપતા નથી

3. તમે આકસ્મિક રીતે કોઈની મિલકતને નુકસાન પહોંચાડશો નહીં

4. તમે જાણતા-અજાણતા અમુક વૃદ્ધ વ્યક્તિ અથવા બાળકને હેરાન કરશો નહીં જેઓ સ્વસ્થ નથી અને ફટાકડાનો ધુમાડો અને અવાજ ઉઠાવી શકતા નથી.

5. જો તમે તે 3000-4000 રૂપિયાનું રોકાણ કરો છો. તમારા બાળક માટે ફટાકડા ખરીદવાને બદલે, તે તેમને ઉચ્ચ શિક્ષણ માટે અથવા કંઈક મદદરૂપ ખરીદવા અથવા કટોકટીની જરૂરિયાતો દરમિયાન પણ મદદરૂપ થશે. જો તમે રૂ. દર વર્ષે 10% સ્ટેપ-અપ સાથે 4000 પ્રતિ વર્ષ. તે વધીને લગભગ રૂ. 10 વર્ષમાં 1,15,000  થશે 12% વ્યાજ દરે.

તેથી હું દિવાળીને સમજદારીપૂર્વક ઉજવવા વિનંતી કરું છું. ફટાકડા પાછળ હજારો ખર્ચ કરવાને બદલે માત્ર ઉજવણીના ટોકન માટે ઓછા ધુમાડાવાળા ફટાકડા ખરીદો. આનંદ અને રોમાંચ માટે તમારી મહેનતની કમાણી બાળશો નહીં.

Planning for a home loan? Read this article before you fix the repayment term.

Let us assume that one is planning to get a home loan of Rs. 25,00,000 at an interest rate of 7%. Approximate EMI payable for 20 year period would be Rs. 19382/month while approximate EMI payable for 30 year period would be Rs. 16632/month. The difference in EMI for 20 and 30 year repayment term comes to Rs. 2750/month.

Let us assume Mr. X has taken a home loan for a period of 20 years while Mr. Y has taken a home loan for a period of 30 years and invested the differential amount of Rs. 2750/month into SIP. Both Mr. X and Mr. Y will have same monthly cash-outflow. Let us see what happens next.

So, Mr. Y not only pays off his home loan in 17 years, but also has a surplus of Rs. 1,36,181 with him and has a lower cash-outflow of Rs. 6,97,769 thereby giving a total benefit of Rs. 8,33,950. So dear readers it is essential to understand the power of compounding. SIP may be small but if continued for a long period of time, it can create wonders.  

Recently a couple called me up asking me to draw an investment plan to fund their child’s education. The parents were very alert and wanted to plan for child’s education right from when the child turned 6 months old. I presented them with an investment plan, they seemed to be happy as they had to start with very low monthly investment. Upon asking about their income, the father replied that he was the sole bread earner and child’s mother was a housewife. She had never worked before and looking at her education I thought it would be difficult for her to get a job in case of need.

They were happy with the investment plan and wanted to go ahead with it. When I asked the father about his insurance, he said I am healthy and don’t need any insurance as of now. Asking about insurance, it sent a wrong signal that I was trying to sell him insurance and they told me we will meet again later and complete the formalities. Few months later, I came to know that they visited a mutual fund distributor and started SIP as per my suggestion. The only reason they avoided me is I asked if the gentleman had insurance.

Now consider a situation where they continue SIP for 3 years and suddenly the father is no more or his earning capability ends. What about the investment plan? So when you are planning monthly investment for your child’s education or any other need, have a contingency plan of how to accomplish it in case of your absence or in case your earnings stop.

The only way to achieve this is by buying an insurance cover. It will ensure that if you are not there, the insurance amount will be invested lump sum to continue with the investment plan.

When a financial advisor asks about insurance, his goal is not to sell insurance. His goal is to provide you with a complete financial plan which has plan B if plan A fails.

The following table shows how much you need to invest to fund your child’s education. I have assumed sum required to be Rs. 25,00,000 and expected rate of return is 13%

ગુજરાતીમાં વાંચો

Diwali, the festival of lights. The festival of Ringing out the old and ringing in the new. Households start preparing for Diwali celebrations from almost a month in advance. Housewives planning sweets and namkeen, bread earners planning budget for clothes, sweets, travelling, gifting and crackers. It all seems so beautiful. Happiness all around, people trying to bring change in their lives. Everyone has a bucket list for themselves. Among all this excitement and enthusiasm of cerebrating Diwali, there is a dark side to this festival of lights. That is the firecrackers. The price of firecrackers has risen substantially and so has the budget allocation to firecrackers gone up in Diwali celebrations. On an average a family would spend 3000-4000 Rs. on firecrackers for their children.

Do you know what happens when we light firecrackers?

1. In India there are more than 50,000 children working in fire cracker industry. They work without any safety equipment or even mask. The inhale cracker powder which destroys their lungs. When our children scream with joy with the sound of fire cracker, some child is coughing with clogged lungs due to breathing chemicals.
2. Every year there are hundreds of incidents of fire due to firecrackers. There are so many accidents, damage to property and loss of lives. All this for what? Few moments of joy?
3. One of the strangest aspect of this celebration which no one thinks about. Let me ask you a question. Would you burn hard earned money to celebrate and enjoy? You would certainly reply asking back, what sort of foolish question is it? Exactly. This is what people do. They light fire crackers which is received in exchange of currency only. So when you are lighting firecrackers you are indirectly enjoying burning cash, making a child who is of your child’s age suffer in hellish working conditions and yet remain unpaid or underpaid and even exploited physically.

Do you know what happens when we do not light firecrackers?

1. The firecracker industry will employ less children or workers for production. They will work elsewhere which I am certain will be less risky
2. You do not contribute adding to already existing pollution problem
3. You would not accidently damage someone’s property
4. You will not knowingly or unknowingly harass some old age person or child who is not well and cannot bare the smoke and noise of crackers.
5. If you invest that 3000-4000 Rs. for your child instead of buying them crackers, it will be helpful to them for higher education or buying something helpful or even during emergency needs. If you invest Rs. 4000 a year with 10% step-up every year. It will grow to almost Rs. 1,15,000 in 10 years at 10% rate of interest.

So I request to celebrate the Diwali wisely. Instead of spending thousands on firecrackers buy low smoke crackers just for the token of celebration. Do not seek for joy and thrill lighting your hard earned money.

Health insurance has become costly and especially post covid. It has become an essential product in the lives of individuals. The main purpose of having health insurance is to safeguard our long-term financial plans and make sure that our investments are not disturbed in case of medical emergencies.

The average annual cost of health insurance for one person is as under:

Following is the list of major diseases and their average treatment cost in India.

Heart diseases

As per data from Global Burden of Disease, about 24.8% of all deaths in India are caused due to Cardiovascular Diseases (CVD). The average cost of medical procedures involved in the treatment of cardiovascular diseases in India lies in the range of Rs 3 lakhs to 5 lakhs. The cost can rise much higher depending on the severity of the ailment. For instance, a heart transplant can cost as much as Rs 18 to 25 lakh.

Cancer

As per the National Cancer Registry Programme of the India Council of Medical Research (ICMR), 1300 people die every day in India due to cancer. The average medical cost in India for cancer treatment is around Rs 10 to 15 lakhs. This is because a single chemotherapy session can cost you about INR 1 lakh and medicines used for cancer treatment can cost you anywhere between Rs 75,000 to 1 lakh.

Kidney transplant

The total cost of a kidney transplant can be anywhere upwards of Rs 7 lakhs. Additionally, the cost of a single injection given before and after the transplant is about Rs 80,000.

Liver cirrhosis

About 10 lakh people are diagnosed with liver cirrhosis in India every year. It is the 10th most common cause of death in India. Many patients with this disease need to undergo a liver transplant. This surgery can cost anywhere between Rs 10 lakhs and 20 lakhs in India.

Looking at the above one can easily realise that going forward Rs. 10,00,000 of health insurance will not be enough. (According to reports, in 2021, India recorded the highest medical inflation rate of 14% among Asian countries. China followed next with 12%, Indonesia and Vietnam at 10%, and the Philippines at 9%.). As individuals we need to at least double the sum assured of our health insurance. But, the question is, can we afford extra health insurance premium? For many health insurance premium is a compulsion for tax planning and not financial planning; for those whom it is a tool for financial planning cannot afford higher premiums.

So today we will discuss one such policy which can prove to be handy in case of critical illness like cancer. Here we are talking about the CCP or the cancer cover plan. The plan is a health insurance product offered by the insurance giant LIC. The premium for Rs. 10,00,000 starts from Rs. 2400/year. Yes you got it right, just Rs. 7/day for at least Rs. 10,00,000. (Young people can get cover of Rs. 15,00,000 for Rs. 2400 premium as well depending on term)

Features of the policy:

Cancer Cover policy offers 2 plan options. The benefits will vary accordingly.

Option I - Level Sum Insured: 
The Basic Sum Insured shall remain unchanged throughout the policy term. So if you choose a cover of Rs. 10 lakhs, it stays that way throughout the policy term.

Option II - Increasing Sum Insured:
The amount of cover increases by 10% of Basic Sum Insured every year for the first five years. In case the policyholder is diagnosed with cancer this increase will stop even within the first 5 years. So if one takes Rs. 10 lakhs cover, it will keep increasing by Rs. 1 lakh every year for 5 years (so it can go to a maximum of Rs. 15 lakhs). In case one is diagnosed with cancer after the increased cover has reached Rs. 13 lakhs, it would not increase in the next 2 following years.

Early Stage Cancer

In case one is detected with Early stage cancer which are specified, one gets the following benefits.

• Lumpsum Benefit: 25% of Applicable Sum Insured is paid out
• Premium Waiver Benefit: Premiums for next three policy years or balance policy term whichever is lower, shall be waived from the policy anniversary coinciding or following the date of diagnosis. 

Major Stage Cancer

In case one is detected with Major stage cancer which are specified, one will get the following benefits.

• Lumpsum Benefit: 100% of Applicable Sum Insured less any previously paid claims in respect of Early Stage Cancer is paid to the insured.
• Income Benefit: 1% of Applicable Sum Insured shall be payable on each policy month following the payment of Lump Sum amount for a fixed period of next ten years irrespective of the survival of the Life Insured and even if this period of 10 years goes beyond the policy term. In case of death of the Life Assured while receiving this Income Benefit, the remaining payouts, if any, will be paid to his/her nominee.
• Premium Waiver Benefit: All the future premiums shall be waived from the next policy anniversary and the policy shall be free from all liabilities except to the extent of Income Benefit as specified above. 

So with the above policy one can be worry free from cancer claims and in addition to that, LIC will provide 1% of sum assured on monthly basis which can be used to pay medical insurance premiums and other regular medical expenses. The policy makes one free from financial burden arising from cancer and the medical insurance can be used to cover other illness other than cancer.

This plan is not comparable with products like super top-up as they have a limitation of deductible amount which this policy does not have.

The most important thing is that the policy can be purchased online and there is no need for medical checkup. For more details call us on 07990290560, 09824995011 or whatsapp us your query.

So what are you waiting for? Call us today to get your CCP online now!

Reference readings:

https://www.practo.com/health-wiki/cancer-treatment-india/289/article

https://www.hdfcergo.com/blogs/health-insurance/medical-inflation-and-its-causes

https://www.sbigeneral.in/blog-details/treatment-costs-of-common-diseases-in-india

https://www.myinsuranceclub.com/guides/early-stage-cancers-covered-in-lic-cancer-cover-plan

https://www.myinsuranceclub.com/guides/major-stage-cancers-covered-in-lic-cancer-cover-plan

Currently long-term investors have started playing a dangerous game wherein they are selling mutual funds to buy shares. The idea is not bad, but the market condition is wrong. The transaction is selling something which is high to buy something which is higher. Investors are not getting any bargain. In fact they are selling a low risk asset to buy a high risk asset. It is like getting down from bus and sitting on a sports bike on a wet and slippery road. Most investors have started comparing mutual fund returns with individual stock returns which is wrong. One cannot compare fruit salad with mango. Mutual funds are portfolios which try to optimize returns by diversifying risk. When you look at standard deviation (which no one does) of individual stock against that of mutual fund, the standard deviation of mutual funds is much lower as compared to that of stocks (standard deviation is a measure of risk)

I would like to advise this community of investors to avoid this dangerous game. Have clearly differentiate fund allocation between stocks and mutual funds. Money set aside for stocks must not flow into mutual funds and money allocated to mutual funds must not flow into stocks. Those feeling stocks are born to rise and bluechip companies are there forever please have a look at the below table. The below stocks were investor’s darling and everyone wanted to own them.

Avoid the trap of selling low risk moderate return asset for high risk high return asset. The day market corrects you will not get a chance to sell even a single share of few low quality stocks.

LIC જીવન લક્ષ્યના PPF ની સરખામણીમાં ફાયદા

મિત્રો શું તમે PPF માં રોકાણ કરો છો અથવા તમારું PPF ખાતું ખોલવાનું વિચારી રહ્યા છો? કૃપા કરીને PPF ની સરખામણીમાં LIC ના જીવન લક્ષ્યના નીચેના ફાયદાઓ વાંચો

• જીવન વીમા કવરેજ: LIC જીવન લક્ષ્ય એ મુખ્યત્વે જીવન વીમા પૉલિસી છે જે પૉલિસીની મુદત દરમિયાન પૉલિસીધારકના અવસાનના કિસ્સામાં બોનસની સાથે બાંયધરીકૃત એકમ રકમ પ્રદાન કરે છે. આનાથી કોઈ કમનસીબ ઘટનાના કિસ્સામાં પરિવારને આર્થિક સુરક્ષા મળે છે. બીજી તરફ, PPF જીવન વીમા કવરેજ પ્રદાન કરતું નથી.

• ઉદાહરણ તરીકે જો કોઈ વ્યક્તિ જેની ઉંમર 35 વર્ષ છે તે PPF માં 3 વર્ષ માટે રૂ. 50000 પ્રતિ વર્ષ ભર્યા પછી વ્યક્તિનું મૃત્યુ થાય છે. PPFના કિસ્સામાં, નોમિનીને 50000*3 = 150000 + વ્યાજ મળે છે. ચાલો 3 વર્ષ માટે 8% ધારીએ, 150000*0.08*3=12000 રૂ. તેથી કુલ મળીને વ્યક્તિને મહત્તમ રૂ. 162000 મળશે. બીજી બાજુ, LIC જીવન લક્ષ્ય ચૂકવશે કુદરતી મૃત્યુ પર રૂ. 5,80,000 (આકસ્મિક મૃત્યુ પર રૂ. 11,60,000) વધુમાં 12 વર્ષના બાકી સમય (15-3) માટે વાર્ષિકી રૂ.58000 અને પરિપક્વતા પર રૂ. 922000 મળશે.

• બચત અને સુરક્ષા કોમ્બો: જીવન લક્ષ્ય બચત અને જીવન વીમાને જોડે છે, જે તે વ્યક્તિઓ માટે યોગ્ય બનાવે છે જેઓ તેમના પરિવારની નાણાકીય સુરક્ષાને સુનિશ્ચિત કરે છે અને નાણાકીય તકિયા બનાવવા માંગતા હોય છે. PPF એ કોઈપણ જીવન વીમા ઘટક વિનાનું શુદ્ધ બચત સાધન છે. 

• વૈવિધ્યપૂર્ણ પોલિસી ટર્મ: જીવન લક્ષ્ય વૈવિધ્યપૂર્ણ પોલિસી શરતો ઓફર કરે છે, જે તમને તમારા નાણાકીય ધ્યેયો અને કુટુંબની જરૂરિયાતોને અનુરૂપ હોય તે સમયગાળો (13-25 વર્ષ) પસંદ કરવાની મંજૂરી આપે છે. PPF ની નિશ્ચિત પાકતી મુદત 15 વર્ષની હોય છે, જો કે તે પાકતી મુદત પછી 5 વર્ષના બ્લોકમાં વધારી શકાય છે.

• બાંયધરીકૃત પરિપક્વતા લાભ: જીવન લક્ષ્ય એક બાંયધરીકૃત પરિપક્વતા લાભ પ્રદાન કરે છે, જેમાં વીમાની રકમ, ઉપાર્જિત બોનસ અને કોઈપણ અંતિમ વધારાના બોનસનો સમાવેશ થાય છે. પીપીએફ, કર લાભો અને ચક્રવૃદ્ધિ વ્યાજ ઓફર કરતી વખતે, ગેરંટીકૃત વળતર ઓફર કરતું નથી. 

• લોનની સુવિધા: LIC જીવન લક્ષ્ય પોલિસી સામાન્ય રીતે પોલિસીધારકોને 2 વર્ષ ના સમયગાળા પછી પોલિસીના રોકડ મૂલ્ય સામે લોન લેવાની મંજૂરી આપે છે. PPF એકાઉન્ટ પણ લોનની મંજૂરી આપે છે, પરંતુ નિયમો અને શરતો અલગ અલગ હોઈ શકે છે.

• કર લાભો: જીવન લક્ષ્ય અને પીપીએફ બંને કર લાભો ઓફર કરે છે. જીવન લક્ષ્ય માટે ચૂકવવામાં આવેલ પ્રીમિયમ આવકવેરા કાયદાની કલમ 80C હેઠળ કર કપાત માટે પાત્ર છે અને પરિપક્વતાની રકમ કલમ 10(10D) હેઠળ કરમુક્ત છે. PPF રોકાણો કલમ 80C હેઠળ કપાત માટે પાત્ર છે અને મેળવેલ વ્યાજ અને પાકતી મુદતની રકમ કરમુક્ત છે. 

• કસ્ટમાઇઝ કરી શકાય તેવા લાભો: પસંદ કરેલા વિકલ્પો પર આધાર રાખીને, જીવન લક્ષ્ય લાભોના કસ્ટમાઇઝેશન માટે પરવાનગી આપે છે, જેમ કે પૉલિસીધારકને નિર્દિષ્ટ સમયાંતરે સર્વાઇવલ લાભની ચુકવણી, જે પીપીએફમાં શક્ય નથી.

• 3 વર્ષની પ્રીમિયમ ફ્રીડમ: પીપીએફમાં તમારે તમામ 15 વર્ષ માટે થાપણો કરવી પડશે, જ્યારે એલઆઈસી જીવન લક્ષ્યમાં પ્રીમિયમ પોલિસી ટર્મ માઈનસ 3 વર્ષ માટે ચૂકવવાનું છે. તેથી જો તમે જીવન લાભ 15 વર્ષની મુદત માટે ખરીદી રહ્યા છો, તો તમારે માત્ર 12 વર્ષ માટે જ પ્રીમિયમ ચૂકવવું પડશે.

તેથી મિત્રો PPF માં રોકાણ કરીને બીજાને આંધળાપણે અનુસરશો નહીં, તમારી LIC નું જીવન લક્ષ્ય અમારી સાથે મેળવો. વધુ માહિતી માટે અમને 7990290560, 9824995011 પર કૉલ કરો.

Interest rates are falling everywhere. The current rise of interest rates is because of inflation. Once inflation lowers down, the interest rates too will follow. If we take a long term view, it is observed that interest rates fall by about 3% every 10 years. Many individuals who had opted for VRS are now regretting their decision as their calculations of earning interest on their retirement corpus has gone wrong. This is because they had taken into consideration 5-10 year interest rates. The main question here is, you book FD at attractive interest rate for retirement say for 5 years, but what when you are to renew it? Your initial FD may be at 8% rate of interest but subsequent renewals will be at 6% and 4%.

In light of the above discussed problem of falling interest rates, today I am going to discuss one plan which locks interest rate at 7.25% for your entire life. Yes you heard it right. 7.25% for lifetime.

Let us look at an example. Mr. A is 40 years old and wants to retire after the age of 60. He has 20 years to retirement. He decides to invest Rs. 2,00,000/annum in this plan for 20 years. So he invests a total of Rs. 40,00,000. From 21^st year (Mr. A turns 61) Mr. A starts receiving Rs. 2,90,000/annum (7.25% of Rs. 40,00,000) till he turns 99 or till he lives. Let us assume he lives till the age of 80 years and expires, in that case, Mr. A has already received 2,90,000 * 20 ( age 61 to 80) = Rs. 58,00,000 and his nominee will receive Approximately Rs. 1,50,00,000-1,80,00,000. Mr. A will receive deduction from income under section 80D till he pays premium and all the amount received by him or his nominee is tax free under section 10(10D)

The plan I am talking about is LIC’s Jeevan Umang plan. The plan is guaranteed by LIC which in turn is guaranteed by the Government of India.

Eligibility Criteria of LIC Jeevan Umang Plan

Let’s take a look at the eligibility criteria of the policy:

Other Details of the LIC Jeevan Umang Plan

1. Grace Period

A grace period is 15-30 days offered by LIC to policyholders who have failed to pay a due premium amount. The policy lapses if payment is not done by the end of this period.

2. Free-look Period

A free look period of 15 days from the date of policy initiation is offered by LIC. During this period, the policyholder can cancel the policy if he/she is dissatisfied with its terms and conditions.

3. Policy Surrender

The policyholder can surrender the policy, provided the premiums are duly paid for two consecutive years. On surrender of the policy, the insurance company will pay a surrender value equal to the special surrender value or the guaranteed surrender value (whichever is higher).

4. Loan Facility

Policyholders can take loans to fund urgent needs. The maximum loan amount is subject to the following conditions -

• 90% of the surrender value for active policies.
• Annual interest charged on the loan amount by LIC should not exceed 50% of the annual survival benefit

5. Paid-up Value

In case the life assured has paid premiums for 2 years but stops after, then the policy will continue as a paid-up policy. In such cases, the sum assured shall decrease as per the remaining premiums.

The paid-up sum assured on death is equal to:

• Number of premiums paid/ total number of premiums to be paid X sum assured on death

Similarly, the paid-up sum assured on maturity is equal to:

• Number of paid premium/ total number of premiums to be paid X sum assured on maturity

Today let us understand 4Cs of financial wisdom and let us assess which type of individual are we based on the combination of these 4Cs.

C1. Creation of income (Through any economic activity like business, job)

C2. Consumption of income (spending)

C3. Continuation of income (making sure we receive money even if income is not created)

C4. Conservation of income (making sure that in case of any catastrophic event, we or our family do not lose much)

Mostly people are concerned with No. C1 & C2 but do not think of C3 & C4. C1 & C2 improve current state of life, they give a feeling of luxury but it is at the cost of future security.

Most of us never think or try to achieve C3 (Continuation of income) & C4 (Conservation of income). So the question is how can these be achieved? C3 & C4 can be achieved only when C1 (Creation of income) > C2 (Consumption of income). So make sure that you earn enough to save.

Creation of income for most of the people is certain. But it is what they feel. In reality it is not so. One can lose income because the business runs into losses, there may be natural calamity, termination from job, disability, prolonged illness, death and much more. This can impact not only us but also to our dependents.

Categories of individuals based on 4Cs.

So how to achieve Continuation & Conservation???

Continuation can be achieved through investing. Investing in Stocks, Mutual funds, Real estate, LICs certain types of endowment/cash back/annuity policies (Assets which can give a stream of income)

Conservation can be achieved through insurance (Health insurance, Life insurance, Household insurance, Auto insurance). One must have insurance at least 10 times of their annual income.

An exercise for all:

Take 2 chocolates of 1 rupee each. Remove the wrapper of one of the chocolate, drop both of them on the floor and stamp on them wearing footwear. Now you have to eat any one of them. Which one will you eat? Obviously the one with wrapper / cover. The wrapper must be costing 20 paise but it maintains the value of chocolate. This is the importance of conservation (Insurance).

Assess your self. See where do you stand in terms of 4Cs of financial wisdom. Check how do you stand in terms of savings (C1 - C2), check if you have planned for continuation of income in case of sudden income loss, check if you are adequately insured (at least 10 times of annual income)

Children are excellent learners. From the time they are born till they attain adulthood, they are in the constant process of learning. If they are given good education and guidance, they can develop into confident and prudent adults. Little surprise that many parents are especially concerned about their children's education. But what about financial education? Not many parents can boast of equipping their children with that, at least for a significant part of their childhood. Financial education is generally postponed till a person starts earning. And then who provides it? Many of us have learnt simple financial lessons the hard way. Some of us may not realise the importance of saving and investing even after many years into adulthood. Even worse, by the time we grow up, we may have developed deep-rooted bad financial habits that prove to be an impediment to progress for the rest of life. Unfortunately, financial education isn't a part of school curriculum. But, as a parent, you can start your child's financial education while your kid's world is all about toys, playtime and cartoon films. Start with educating your child about saving. Get your child a piggy bank or a gullak. Encourage him to regularly put money in it. A simple formula could be to give a coin to your child daily and asking him to put it in his gullak. Over time, he will accumulate many coins and there will come a point when the gullak is full. Take out the coins at that time and show your child how his daily contributions have resulted in a 'large' corpus over time. Most likely, your kid is going to be amazed. This would be his first lesson on systematic investing.

As your child grows, introduce him to banking. The idea of systematic investing remains same here. Encourage your child to put some money in his account regularly. The difference this time will be the extra returns he can generate through interest income. Of course, the return isn't high, yet for a child that's almost magical - extra money by just keeping money in a bank account!

At an appropriate time, introduce your child to the stock market and investing in it through mutual funds. Tell him how he can build wealth by systematically investing in a good equity fund. Emphasise the need for staying invested through various phases of the market. Discuss how the market has created wealth over time. As your child turns 18, encourage him to start investing in equity funds through SIPs. Assist him for the next few years till he becomes a confident investor.

A few other things also go a long way in creating an environment of financial discipline at home. Talk about the importance of money. Emphasise how one has to work hard to earn it and that's why one should judiciously use it. Walk the talk. Act in the same way as you would want your child to act. Reward good financial behaviour.

Warren Buffett started investing when he was just 11. By providing your child the right financial guidance, you can also set him on the path of financial prosperity. What you teach him now will stay with him forever.

This article is taken from value research online. 23/03/2020

આજે આપણે એક વ્યાપક યોજનાની ચર્ચા કરીશું જે મૃત્યુના કિસ્સામાં નાણાં પ્રદાન કરે છે, પ્રીમિયમ માફ કરે છે, વાર્ષિક રોકડ પ્રવાહ અને પરિપક્વતાના નાણાં પ્રદાન કરે છે. હું LIC ના જીવન લક્ષ્ય પ્લાન વિશે વાત કરી રહ્યો છું. ચાલો યોજનાના કેટલાક મહત્વપૂર્ણ મુદ્દાઓ જોઈએ અને તેને ઉદાહરણ દ્વારા સમજીએ. 

કોણ લઈ શકે ?
• મિનિમમ ઉમર – 18 વર્ષ પૂરા
• મેક્સિમમ ઉમર – 50 વર્ષ
• વિમા ટર્મ – 13 થિ 25 વર્ષ
• મિનિમમ વીમા રાશિ – Rs 100000/-
• મેક્સિમમ વીમા રાશિ – No Limit
• મેક્સિમમ ઉમર(પાકતી મુદતે) – 65 વર્ષ
• વીમો મળશે…10,000 નાગુણાંકમાં
• લિમિટેડ પેમેંટ એન્ડોવમેંટ પ્લાન નફા સાથે
• પ્રીમિયમ ભરવાની મુદત પોલિસીની  મુદત કરતાં ત્રણ વર્ષ ઓછી
• પ્રીમીયમ…માસિક,ત્રિમાસિક,છમાસિક,વાર્ષિક

• ત્રણ વર્ષ નો પ્રીમિયમ હોલિડે
• પોલિસી પાકતા પહેલાના ત્રણ વર્ષ પ્રીમિયમ ભર્યા વગર વીમા રક્ષણ અને બોનસનો લાભ
• પોલિસીની પાકતી મુદતે વીમા રાશિ ના 100% સાથે જમા થયેલું બોનસ અને ફાઇનલ એડિશનલ બોનસ
• અકસ્માતે ડબલ વીમા રક્ષણ
• પ્રીમિયમ રિબેટ વાર્ષિક – 2% અર્ધવાર્ષિક – 1%

• વીમા રાશિ રિબેટ 2 થી 4.9 લાખ -2 રૂપિયા
• વીમા રાશિ રિબેટ 5 લાખ અને વધુ – 3 રૂપિયા

• લોન ત્રણ વર્ષ બાદ 40% થી 90%

 આવો એક ઉદાહરણ સમજીએ

નારદભાઈ 30 વર્ષની ઉંમરે 2022 માં જીવન લક્ષ્ય યોજના ખરીદે છે. તેમની વીમાની રકમ રૂ. 10,00,000 અને યોજનાની મુદત 25 વર્ષ છે. નારદભાઈ પ્રથમ વર્ષ (2022) માટે પ્રીમિયમ તરીકે રૂ. 46843 ત્યાર બાદ બીજા 21 વર્ષ માટે (2023 – 2043) રૂ. 45835 પ્રીમિયમ તરીકે ભરસે.

હવે 5 વર્ષ સુધી પ્રીમિયમ ભર્યા પછી, નારદભાઈ 2026 માં મૃત્યુ પામે છે, તેમના નોમિનીને કુદરતી મૃત્યુના કિસ્સામાં રૂ. 10,00,000 મળશે અથવા આકસ્મિક મૃત્યુના કિસ્સામાં રૂ. 20,00,000 મળશે તથા તમામ ભાવિ પ્રિમીયમ માફ કરવામાં આવશે. આ ઉપરાંત તેમના નોમિનીને વીમાની રકમના 10% વાર્ષિક ધોરણે પ્રાપ્ત થશે જે રૂ. 1,00,000 પોલિસીની બાકીની મુદત માટે મળશે. મેચ્યોરિટી પર નોમિનીને રૂ. 26,00,000 તો ખરા જ.

કુલ ચૂકવેલ પ્રીમિયમ (46843 + 4*45835) = રૂ. 2,30,183

2026- રૂ. 10 લાખ (અકસ્માતે રૂ. 20 લાખ)
2027 થી 2046-દર વર્ષે રૂ. 1 લાખ (કુલ રૂ. 20 લાખ)
2047- રૂ. 10 લાખ + રૂ. 16 લાખ બોનસ

ટોટલ લાભ કુદરતી મૃત્યુના કિસ્સામાં-> રૂ. 10 + રૂ. 20 + રૂ. 26  = રૂ. 56 લાખ

ટોટલ લાભ આકસ્મિક મૃત્યુના કિસ્સામાં-> રૂ. 20 + રૂ. 20 + રૂ. 26  = રૂ. 66 લાખ

જો યોજનાની મુદત દરમિયાન નારદભાઈને કંઈ ન થાય, તો તેમને રૂ. પરિપક્વતા પર રૂ. 26,00,000 મળશે.

જો તમને યોજનાની વધુ વિગતો મેળવવામાં રસ હોય તો તમે અમને સવારે 10:30 થી બપોરે 01:30 અથવા સાંજે 06:00 થી 09:30 સુધી કૉલ કરી શકો છો. અમારી પાસેથી પ્લાનની ખરીદી પર આકર્ષક લાભ મેળવો.

વધુ માહિતી માટે અમને 7990290560, 9824995011 પર કૉલ કરો.

Many a times I am asked by my investors as to investment in Crypto Currencies. Crypto Currency is not officially accepted in India, but it has become a talk of town for majority people. You may have crypto whose value is in crores but still you cannot directly buy anything with it in India.

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

The gyration in their prices or even their legality notwithstanding, cryptocurrencies have got ordinary investors interested. And, it’s not just about the Bitcoin. Several more coins have joined the party. Dogecoin gave over 8000 percent returns between January and April 2021. Ethereum’s price rose to Rs 1.88 lakh, from Rs 92,593 at the start of the year. But prices fluctuate quite wildly.

Cryptocurrencies are unregulated instruments. Therefore, anyone can start a crypto exchange. “That is why, first, you should check the background of the core team and founders of the crypto exchange,” says Darshan Bathija, CEO of Vauld, a global crypto exchange and lending platform.

Opening an Account to buy:-

You have to follow the know-your-customer (KYC) process while opening an account. Barring minor differences, most exchanges require your Permanent Account Number (PAN) card and an identity proof such as your passport, Aadhaar or driving license. Some exchanges give approvals instantly. Others take up to a week to complete the KYC process. Video KYC is not mandatory for exchanges to on-board investors.

Transferring amounts to exchanges for investing:-

To buy a crypto coin, you first need to transfer money (Rupees) to a wallet that belongs to your exchange. Then, you can buy a coin. You can use internet banking facility (IMPS, RTGS, or NEFT) or debit cards for transferring sums. Your wallet gets credited once you submit the transaction reference number.

Whenever you sell your crypto, you can use the same routes to transfer money back to your bank account.

You can select payment gateways such as Billdesk and Razorpay, and complete the transfer to your account with the exchange. However, you have to bear 1-2 percent additional charges for transferring the amount to exchanges through a payment gateway.

Currently Crypto Currencies do not have legal acceptance but still it must form a part of ones investment portfolio. Investment in crypto currency must not be more than 5% in ones portfolio. There are currencies like Tron which can be gradually accumulated.

If you are looking forward to start investing in cryptos you can make use of platforms like the WazirX and Zebpay. WazirX had some server crashing issues 3 times since April to May. One can look at Zebpay which offers great use friendliness.

You can directly download and start buying crypto currencies from the below links:

Zebpay:- http://link.zebpay.com/ref/RFRHARD3782

WazirX:- https://wazirx.com/invite/beg4gcrc

Crypto currencies have become an essential vice. They add some risk to portfolio but are also necessary as a part of long term investment strategy.