The major problem that most of the clients throw at me is, we cant save! This question is asked by the one earning Rs. 10,000/month and even the one earning Rs. 80,000/month. So if we think about it, it is not that we can not save. It is like we do not know how to save or rather we do not wish to save.

If you google the question, How to save? You will have thousands of advise about how to save and invest. Mark my words, those are useless unless you implement them. If you want to save, just read and follow the below line.

Start a monthly investment deduction from your bank account of 5% of your salary or average monthly income.

Yes, just start investing 5% of monthly income in the investment option you are comfortable with. Be it SIP, PPF, post office savings deposit, Bank recurring deposit or an insurance policy. JUST START IT. Do not think much. If you want to start right, contact us and we will give you the right option.

Remember better late than never. Friends mark my words, 5% deduction will not impact your monthly budget unless you are paying housing loans.

Baxi Investment,

Hardik Baxi.

+91-7990290560

It was indeed a matter of joy for the public and especially those earning about Rs. 5,00,000/year as their income was tax free from assessment year 2020-2021. Today I wish to review the ill effects of this joy over long term.

Talking to most of clients in the income range of below Rs. 5,00,000, they are no longer interested in investments. Why? Because now they do not need to pay tax. Dear reader, tax benefit through investment is an added advantage and not the sole purpose of investment. We invest for achieving our future goals and with tax benefit we achieve them faster. Increase in income tax limit does not mean there is no need to invest under tax saving options. Rather it means now we have more Rs. 15,000 for investment.

Remember we invest for our goals like Retirement, Children’s education, Foreign trip and much more. We don’t just invest to save tax. So please change your perception and continue with the on-going investment programme.

For guidance on impact of new tax slabs and their impact on your future investments call us on +91-7990290560.

Hardik Baxi

Baxi Investment.

Most of the parents are worried about the future of their children and especially the girl child and her marriage. Looking at current social change I personally believe that worry has become less relevant today. However, if still one wants to save for daughters' education & marriage the majority question everyone has is which instrument to choose?

Today we will try to compare and evaluate 2 well known options 1. Sukanya Samruddhi Yojna & 2. Jeevan Tarun Plan

Both plans are guaranteed by the Government of India so they are risk-free. Let us compare features of both the plans.

 The Verdict:

Both plans are good in their place but when it comes to pre-mature withdrawals in case of emergency Jeevan Tarun is better. Similarly interest rate in SSY is variable so risk of downward shift is always present. Moreover Jeevan Tarun gives a stream of cash flow from age 20-25 which can be useful for higher education fees payment.

Overall one can say that the Jeevan Tarun plan has an upper edge over SSY looking at its flexible features.

To know more feel free to contact on +91-7990290560

Hardik Baxi,

Baxi Investment

Hello readers,

One question which most of my clients ask me is whether to invest in Equities or Mutual Funds? Well exactly we ourselves can answer the question as we ourselves and our pattern of thinking decide which one is right for us. Many of business minded people have ability to spot correct stocks which everyone does not have. See your portfolio, market is hitting new highs, are your stocks hitting new highs? Most of 100% equity oriented mutual funds have NAV at new life high. So if your portfolio is hitting new highs with market, you have ability to spot stocks and one must invest in direct equities. But if your portfolio is not hitting new highs with the market, invest in equity oriented mutual funds.

OR

JUST CALL US @ +91-7990290560 AND WE WILL DO THE REST FOR YOU

Most of us buy mutual funds but do not know when to sell them. We also do not know which fund to buy? How many funds to buy? When to buy? How to buy? this when and how creates a confusion and the confusion leads to errors in investing.

Today I will try to explain a product which will eliminate all which and how queries.

MARS = Mutual Fund Automated Re-balancing System 

It is first and only of its kind advanced mutual fund management system which has predefined rules which help you to keep your mutual funds balanced. The system adjusts proportion of mutual funds in your portfolio to give you the best outcome. The system automatically reduces equity exposure when markets are high and reduces debt exposures when markets are low. The robust and dynamic model strikes optimum balance between risk & return and delivers best outcome.

If you are stuck with the age old way of managing mutual funds than please change. You can get more details about MARS from here.

This service is free free free. Why pay advisers when you can get advise free of cost? You can also divert your existing mutual funds to MARS.

Call us today to start your free MARS. 

The markets fell by about 4% in past 6 trading sessions. I received numerous calls from clients about their eroding wealth and profits turning into losses. Dear readers, when we plant a seed it needs continuous watering. In summer especially when it is very hot we need to water them the most. We need to fertilise them and nurture them. Same is with investment. When markets are down, be aggressive and go long , invest more. If you will not invest more, you will never benefit from averaging. So next time market falls, please call for investing more and do not worry. Remember, Bull markets will survive till the end of world. 

I had a question from one of my client regarding housing loan. He wanted to opt for a housing loan without making any changes in his existing investments and his insurance. After almost an hour of discussion he requested me to write an article for others to understand the relationship between Loan and Insurance.

Dear friends, loan is a liability while insurance is an asset. One may even call it a contingent asset. When we take a loan we create a liability and an asset (That is what we think). If we take loan for a vehicle it can be called an asset but asset depreciates fast and involves running cost. When we talk about property it again has high maintenance cost plus it will transfer in your name once the entire loan is repaid. So when we take a loan, we are creating a liability. To balance this liability we must create an asset. That asset is insurance.

Think of a housing loan whose installments are due and consequences that the family will have to face in your absence. Will your family recover from mental trauma, financial loss in the form of lost income, and loss of house due to inability to pay installments? For all those who have outstanding housing loan please upgrade your insurance. The amount must be such that its interest can cover the installment amount. This insurance must be over and above an insurance 3 times your yearly income.

Dear friends change your perception towards genuine insurance planners and agents. They are not to just sell insurance but they are there to provide you right advice so that you and your family live a constant standard of living under whatsoever conditions.

If you are paying a loan or planning to take a loan; and are not insured, contact us today. Special plans are available for such individuals.

Hardik Baxi,

Baxi Investment

Yes, you heard it right. We all save and that is where we usually stop. The problem is we have lot much biasness in our minds. The first being,

1. Knowledge biasness, we have lack of knowledge of what to do with savings. So we either don’t save or we just save and don’t invest or invest in FD as it is the only instrument we understand.

2. Information biasness, we believe when certain people say something. It begins from our family members who always look at banks as ultimate savings & investment option.

3. Incentive biasness, I have heard many savings channelized into non-productive areas just for getting one time share of income from agents. Remember, the agent who has to share commission is like getting a Parle-G at discount. It’s just not possible as already there are very low margins. So if you get an incentive just BEWARE of such investment option.

4. Simplification biasness, we save because it’s simple, we don’t invest because its complex.

5. Bandwagon biasness, we save or not save just because others are saving or not saving.

Still there is much biasness which we can talk about. Todays’ article is to make everyone understand that real wealth is created in investing and not just saving. Savings have to be invested which create an asset. That asset may be financial or physical which earns money in form of interest or capital appreciation. If we just save and not invest, money does not earn anything and we lose purchasing power of our hard earned money.

So stop just saving and start investing. If you have any biasness you can call on +91-7990290560. I will help you overcome your biasness and clear all of your confusions about investment. Start with SIP of Rs. 500/month and you will not feel any difference in your budget. If we lose a Rs. 500 note do we moan? Do we think all the time about it? Than why can’t we start SIP of Rs. 500 and forget about it? I am sure you will regret after some time why did I just forget Rs. 500 and not Rs. 5000.

In the month of April I got a phone call from one of my friends informing me about accidental death of one of our childhood friends. For some time I could not believe my ears and my mind went totally blank. How could this be? I had seen him a week back with his family.

I rushed to meet his parents and his wife. His children are too small, the eldest being 11 years old. My friend had 5 kids and wife is not that educated to work and earn outside either.

I started talking about how uncertain life is and before I could express my sympathy and grief his father interrupted me. With an angry tone he told me “તે મરતો ગયો ને મારતો ગયો”, meaning he killed us all by dying. His father is earning Rs. 5000 a month and he is 65+ with additional responsibility of 5 kids and his daughter-in-law. His wife was viewing the scene unable to defend her husband who did not even have Rs. 20,000 in his bank account.

Dear readers it may seem to be a story but you cannot imagine the condition of the family. Rather than being grieved, the family was angry.

This situation has arisen because of lack of financial planning. Had my friend planned his finances he would have just 1 or 2 children and would be insured for medical requirements as well as death.

Financial planning may seem to be least important and may find last place in our to-do list but it is of prime importance. Remember, we want to make our loved ones smile in our presence than why not even in case of our absence?

Most of us visit our family doctors as we trust them the most. But what happens when the doctor prescribes us a wrong medicine? It gives us unwanted outcome in the form of side effects and uncured ailment. What do we do next? We again talk to him about new problems and he changes the medicine. But what if your doctor insisted that he is correct and he knows what you need?

Same thing happens with our investment advisers. They have knowledge of few investment options and a few mutual funds, they will prescribe you with some instrument based on their limited knowledge which will not suit you. On complaining about side effects they make you understand something or the other. Do you feel same thing has happened to you or is happening with you?

If your adviser does not know you he must ask details about your education, current sources of income, family background, assets owned, investments made, family members, dependants, and much more. Your investment objectives and constraints will serve as major guidelines to select the investment option.

Has your adviser ever asked these things to you if he does not know your background? If the answer is no, it means you will always get a wrong medicine and you will always suffer from some or the other side effects of wrong investment.

If you have experienced the above or want to get a health check of your investments feel free to call and fix a meeting.

Feel free to call on +91-7990290560

Mr. Hardik Baxi,

Baxi Investment

Most of us are very much clear when it comes to buying things for ourselves about the performance of product. If we buy a family car we don’t expect it to do wonders on the road. Likewise if we buy a sports car we don’t expect to fit in the entire family. Post purchase we are satisfied because we have rational expectations of performance considering amount spent. But now consider a case where you buy a family car and enter into a race with it. Can you blame the manufacturer for your defeat? The answer is NO. Likewise while purchasing insurance people talk about returns. Many clients ask that does any policy do more than 4.5%? Dear Sir/Madam you are expecting a family car to do 300km/hr which is not possible and you are surely going to be dissatisfied.

All those reading this article please make sure that while buying a life insurance policy please do not ask about returns, look at options available, cover provided, raiders available as we are buying an insurance for life cover and not returns.

Yes, there are plans available which act like MUV (Multi Utility Vehicles) cars which provide insurance +  moderate returns. Do not expect these plans to do wonders for you. To know more about such products call us today on +91-7990290560

Few of my clients were planning for vacation. On asking them about financial resources for vacation they proudly said “Credit Cards”. Credit cards have made financing each need so easy that now we are habituated to converting our each need into EMI. This may seem a fair deal as we do not have to wait for long, but on the other side one is paying 14-18% interest on the amount borrowed.

If you are looking for a vacation without debt, plan in advance. Make use of time value of money calculators. Prepare a vacation budget for next year and start SIP for 12 months in debt funds or liquid funds with guaranteed returns. On completion of SIP withdraw the money and enjoy your holidays.

This will bring financial discipline, bring down interest cost to zero and avoid sudden cash outflow. Remember to start SIP for every need making use of time value of money calculators.

To learn how to use such calculators for free, contact us today.

Hardik Baxi

Baxi Investment

Disability Insurance in India: How to get it!

Let’s learn what disability insurance is and how to be insured for disability.

Insuring one’s ability to keep earning livelihood is of paramount importance. Accidental disability can render anyone temporarily or permanently disabled for life. This is why we all look for an insurance policy for disability. However, getting disability insurance in India is not a straightforward task. In fact there are no separate insurance policies available especially to cater for the events of disability. So, many people wonder how to get such an insurance policy. Today I am going to write a few facts on this subject.

What is Disability Insurance?

Disability insurance is also known as disability income insurance. It is an insurance policy that covers a person for disability conditions in future. Disability due to accidents and diseases can strike anyone at any time. Such an event may adversely impact one’s ability to earn. A disability insurance policy ensures that if such an event happens, the insured person would get financial assistance. The money got from disability insurance can come handy for treatment and to provide for the dependent family members.

A lot of people do not understand the importance of getting a good disability insurance. People make all sorts of investments but they hardly invest a portion of their income in securing their future against permanent or temporary disabilities.

Depending on the nature of disability, the insurance can provide short-term disability benefits or long-term disability benefits.

How to Get Disability Insurance in India?

As I said earlier, there are no separate insurance policies available for protection against disability. But various Life Insurance and Term Insurance plans come with disability and accident riders. A rider is an add-on for which you will have to pay extra premium. If you opt for disability rider in your insurance plan — then you will receive benefits in case of a disability. Some plans offer benefits only in case of permanent disability whereas some other offer benefits for temporary disability as well.

Disability Insurance often Corresponds to Monthly Income

Yes, the disability rider corresponds to monthly income. One can get an amount equal to their income for a period of 10 years every month. The main advantage of this rider is that disability arising after 180 days of accident is also covered. So even if you get disability later on, you are covered. However the insurance company must be informed as soon as the disability occurs (Standard time is 90 days).

Premium waiver for life insurance policy

Another advantage of LIC disability rider is that post disability the insured does not have to pay any premium for his life insurance policy. The policy continues with all benefits for free.

How LIC defines benefits under disability rider:

In case of Total and Permanent disability arising due to accident an amount equal to accident benefit sum assured will be payable over a period of 10 years in monthly instalments. However, the payment of accident benefit will be subject to an overall limit of Rs.25 lakh under all policies of the Life Assured with the Corporation taken together.

The disability due to accident should be total and such that the Life Assured is unable to carry out any work to earn a living. Following disabilities due to accident are also covered -

a) irrevocable loss of the entire sight of both eyes or
b) amputation of both hands at or above the wrists or
c) amputation of both feet at or above ankles, or
d) amputation of one hand at or above the wrist and one foot at or above the ankle. 

Contact us today for securing your future income @ +91-7990290560

An emergency fund is a pool of liquid money set aside for unforeseen expenses like a medical expense or job loss. Having an emergency fund can be the difference between a small bump in your financial life and complete disaster in your entire life.

Many people fail to prepare for the future. Financial security is important for every person. An emergency savings fund can help individuals look forward to the future without worrying about being unprepared for unexpected expenses.

Having an emergency savings fund is critical to the financial security of your family. Learning more about this type of fund can better prepare people to start saving if they have not already done so.

Everyone has a certain set of fixed expenses each month. These bills have to be paid on time to retain excellent credit. Some of these expenses include a mortgage, health insurance, life insurance, car payments, car insurances, home utility bills, food, and automobile gas. Let’s say that a person is living week to week and has no savings at all or has only a very minimal amount in a bank account. If this person suffers a job loss, this could be catastrophic.

That’s why no matter how hard it is to save; an emergency fund must be saved in order to carry a person or family through those tough economic times when not enough income is coming in to pay all the required expenses. People can lose their homes to foreclosure. Renters can be evicted and have no money to stay at a hotel or to re-rent another home. Shelter is a must, as is food, and paying for prescription drugs, and keeping up all of the insurance policies and car payments, otherwise people can have their cars repossessed if they do not make the payments.

So it’s imperative to save a separate emergency fund. One way to do this is to cut back on nonessential items such as eating out every day or buying fancy clothing that people don’t really need. Keep a journal of the items you cut out, and put that money into a savings account each week. As the account starts to grow, you’ll probably start to feel a real sense of accomplishment, and you probably won’t even notice the things that you cut out of your spending.

Paying down debt is also a great way to help grow your savings. As you pay off your loans and credit cards, the money you used to put toward these bills can be set aside in savings where it will grow for you year after year.

How much money to set aside as emergency fund?

Ideally it must be an amount equal to 6 months income.

How to invest emergency fund money?

Always remember that emergency fund has an intention of being useful at any point of time so liquidity is of prime importance. Second comes safety as we cannot afford to lose anything from this fund. Third is it must provide average returns. Liquid funds are the best option. With NJ E-Wealth account one gets this facility without additional cost. The service is available at just a click of mouse or a tap on your mobile screen. One can get returns on daily basis, so if you have money even for 24 hours, you can invest it. Average returns are 6.5% per annum.

To know more about planning and investing your emergency fund contact us today on +91-7990290560

Hardik Baxi,

Baxi Investment.