What moved my market: Telecom Sector Relief, PSU stake sale & many more….

Indian equity indices remained marginally higher this week. The S&P BSE Sensex closed at 40,359 up by 0.01% and Nifty 50 closed at 11,914 up by 0.16%.

Weekly Capsule

  • Cabinet approves the sale of 5 PSUs including BPCL, Shipping Corp, CONCOR
    (Selling these assets will be key to the government meeting its ambitious target of generating INR. 1.05 trillion from asset sales in the current fiscal year. The government’s decision to boost corporate taxes to boost the economy and attract investments has left Finance Minister Sitharaman struggling to meet the year’s fiscal deficit target of 3.3% despite receiving an INR. 1.76 trillion windfalls from the Reserve Bank of India.)
  • Relief to telecom sector: Cabinet gives nod to a two-year moratorium on spectrum payments
    (Telecom companies get a two-year moratorium to pay their spectrum auction dues. Deferment of spectrum auction installments would ease the cash outflow of the stressed telcos and facilitate payment of statutory liabilities and interest on bank loans. Continues operation by telecom providers, would give a fillip to employment and economic growth.)

Fund alerts:

  • Aditya Birla Sun Life Mutual Fund has proposed to change the name of Aditya Birla Sun Life Short Term Opportunities Fund to Aditya Birla Sun Life Short Term Fund, with effect from November 21, 2019.
  • Franklin Templeton Asset Management has amended its schemes to enable side pocketing. Side Pocketing allows mutual funds to set aside a portion of their units in lieu of bad debt. The move comes close on the heels of Ind-Ra’s downgrade of Vodafone Idea debt on 1st November to BBB.

Key events to watch next week:

The GDP maths: All eyes are on the July-September GDP growth figure as the debate rages on how to shore up the economy. With growth slumping to a multi-year low of 5 percent, efforts are on to spur consumer demand and investment. On top of that, a slowdown in manufacturing and construction is adding to the worry lines. The GDP data is due on November 29.
Along with GDP data, Fiscal deficit data and Eight Infrastructure Industries data will be released for the month of October on 29th November.

Bottom line:

We believe the Markets are likely to remain range-bound in the coming week and look out for positive triggers that will boost investor sentiments. Market participants will continue to track global factors like the US-China trade deal, crude oil price and currency movement.
Returns have been concentrated in select index leaders while the broader markets underperformed, this presents an opportunity to benefit from the current market distortions. We believe the Multi-Cap and Mid Cap strategies are ideally positioned to benefit meaningfully from the likely revival while Large Cap funds can be part of any investor’s core portfolio allocation.

Smart Wallet Insurance – First-Aid Kit for Your Digital Money

It is no longer odd to find auto wallas accepting wallet payments or your food delivery guy coming in with a mobile swipe machine. What is odd is the fact that most of the financial fraudulent activities, happen through online transactions or loss/theft of card and this is in our lowest priorities for insurance. Moreover, based on accumulated statistics, as on August 2018, there are over 980 million active debit cards and counting in India while the credit cards numbers are over 41 million. Imagine the volume of online transactions being made on any given day!

So, who or what will protect debit/credits and online transactions? The answer is Smart Wallet Insurance. 

What is Smart Wallet Insurance?

In the case of loss of card, this scheme protects you against fraudulent activities, mobile wallet protection, personal accident cover and assistance for blocking the wrongful usage of your cards and much more.

How is Smart Wallet Insurance Beneficial to You?

Smart Wallet comes loaded with multiple benefits and features and here are the ones that matter:

  • Lost/Theft of Card/Wallet Liability & Card-blocking Assistance: If you lose your debit or credit card or if it is stolen, this insurance provides you protection in liability and card blocking assistance.
  • Mobile Wallet Protection:  With wallet payments on the rise, this cover protects all your transactions made through online mobile payment wallets.
  • ATM Cash in Transit: In case your card is lost or stolen during a transaction at an ATM, this card provides card-blocking assistance and covers loss of liability.
  • Unauthorized Fraudulent Card Usage: Smart Wallet covers unauthorized fraudulent usage on Cards owing to:
    • Skimming
    • Counterfeiting
    • Phishing
    • Compromised Cards.
  • Personal Accident Cover: The Insured under this cover is paid for accidental bodily injury solely and directly caused by accidental, violent, external and visible means resulting in accidental death or Permanent Total Disablement or Permanent Partial Disablement within twelve (12) calendar months of the occurrence of such injury.
  • Personal Accident Benefit: Smart Wallet Insurance also gives you personal accident cover where a sum is assured as a benefit in the case of any accidental event.

FAQs About Smart Wallet Insurance 

Who Can Apply for A Smart Wallet Insurance?

Anybody with an active bank account, associated debit or/and credit card can apply for this protection in India.


Can the spouse of the Smart wallet policyholder receive coverage through this policy?

This cover if opted for extends all the other coverages selected, to the spouse of the Insured where the maximum liability for any and all claims made by anyone Insured Person and/or his or her spouse shall be limited to the total Sum Insured in the policy.


What is Cash Advance Assistance under Smart Wallet?

The cover provides Emergency Cash Assistance to the Insured in the case of Loss of Card. 


Will Smart Wallet cover incidents occurring in sporting events?

Any claim arising out of sporting activities in so far as they involve the training or participation in competitions of professional or semi-professional sports persons, Adventure Sports unless declared beforehand and necessary additional premium paid is exempted from cover.


Now that you are aware of how the Smart Wallet insurance acts as a First-Aid box for your digital money and much more, apply for this simple yet comprehensive policy today, only on Fisdom.

Hope with Hospicash

It is essential to note that mediclaims do not provide an allowance for every cost incurred at the time of hospitalization. Hospicash takes care of some of these expenses conveniently and hassle-free. It comes also with several enhanced benefits and does not require any medical check-ups for application, unlike other health insurance policies. But first let’s understand what Hospicash is and how can it aid you at the time of crisis.

Whats is Hospicash?

Hospicash provides cash benefits in the case of hospitalization. With this benefit, you get a certain fixed amount of cash for each day of hospitalization.

What Are The Major Benefits of Hospicash?

    • No Paperwork: Hospicash does not require any paperwork and can be applied online, instantly.
    • No Medical Examination Required: Unlike, other health insurance schemes, there isn’t any requirement of a medical check-up before application.
    • Enhanced Accident, ICU & Convalescence benefit: All the benefits against accident, ICU and convalescence are upgraded for this policy.
    • Instant & Hassle-Free Claim Settlement: It’s instant and it’s easy to settle Hospicash claims with the adequate documentation in hand.
    • Daily Hospicash benefits on Hospitalization: Hospicash gives its holders the convenience of a special allowance for daily expenses.


How to Make A Claim For Hospicash?

Here are the steps for claiming your Hospicash policy:


  1. The claims require documentation based on the requirements of the policyholder as proof. Submit the adequate documents with the filled claim form.
  2. If there are any issues in the documentation the insurance provider will send a deficiency letter to the claiming party, within 7 days of receiving the claim application.
  3. Once all documents have been received the insurance company will send an offer of settlement and an adjoining statement within 30 days of having received the application successfully.


FAQs on Hospi Cash



How long can I avail the Hospi Cash benefits for?



You can avail daily hospitalization benefits for up to 30 days.



How much do I have to invest in HospiCash per year for Rs. 45,000?



For sum assured of Rs. 45,000 and it can be availed with a premium of approximately Rs. 750 per year.



What is the minimum sum assured that I can avail in Hospi Cash?



You can apply for a minimum sum assured of Rs. 2,500.



What is the maximum sum assured amount that I can be insured for, in Hospi Cash?



You can apply for a maximum sum assured amount of Rs. 1,50,000



Do I need to get a medical check-up for this insurance?



No, you do not need any medical check-up to apply for this insurance.


Hosipcash is easy to apply for, hassle-free and covers a lot of hospitalization expenses on a daily basis to help you hope and relieve you of the financial stress involved in hospitalization costs.

Plan Your Financial Future with ELSS or else…

If you are someone who is looking at Section 80C investments not just for tax-savings, but also for aligning your long-term investment goals such as retirement planning or buying a house ELSS could be you’re the right choice of investment for you.

Tax planning is not only about saving taxes but also an opportunity for wealth creation to achieve future financial goals. If you are genuinely looking capital appreciation then why not look at ELSS as an investment option where the returns have outperformed all the other investment options by a huge margin.

What are ELSS Funds?

ELSS or equity-linked savings schemes are tax saving mutual fund investments which invest the majority of their corpus in equity and equity-related instruments. ELSS is the only option under Section 80C which allows you to reap the benefits of the returns generated by the equity markets and at the same time offer complete tax shield at the lowest cost possible.

How Can ELSS Funds Benefit You?

Here are some of the important benefits that make ELSS, the best mutual funds to invest in tax saving:

ELSS Returns: Gives You the Opportunity for More

These funds primarily invest in equities and equity-related instruments. Though equity returns are extremely volatile in short-term, in the long run, equities can provide superior returns. An investor with a long-term investment horizon can expect annualized returns between 12 to 15%.

Lowest Lock-in period

As compared to other tax saving investment options under Section 80C of the Income Tax Act, 1961 ELSS have the lowest lock-in period of 3 years. In all the other alternatives the lock-in period varies from anywhere between 5 to 15 years with the restriction on withdrawals.

Tax Efficiency

From a taxation perspective, ELSS enjoys the triple tax advantage. The amount invested in ELSS up to the limit of Rs.1.5 lakh is exempt under Section 80C. ELSS funds are equity-oriented with dividend income and the long-term capital gains on them are exempt from tax thus making the maturity proceeds entirely tax-free for an investor.

Whereas, in case of tax-saving FDs, post office FDs and NSC the interest earned is taxable as per your income tax slab; investments in NPS and pension plans are taxed at the time of maturity. Insurance is also an EEE (exempt-exempt-exempt) investment but it is not a pure investment product. Though PPF enjoys the EEE benefit like ELSS, investments in PPF are extremely illiquid with the highest lock-in period.

Opportunity to Create Wealth with ELSS

Equity markets though volatile in the short run, historically, is the best asset class for wealth creation. ELSS funds are professionally managed which offer tax advantage and opportunity to participate in the equity markets.

Yes, the equity market has market risks but it doesn’t have the other risks like interest rate risk, reinvestment risk, liquidity risk, etc. Also, the investment allocation is conducted by fund managers who have adequate research and expertise to make the most out of the investment.

Hence, ELSS works as an easy investment option for multiple purposes and allows you to develop a healthy investment habit for a worry-free future.



Gift Yourself A Happy Retirement: National Pension Scheme

‘Baby Boomers’ or our ‘Mommas’ and ‘Papas’ have been lucky to be the last generation of people who have received pensions from their employers, post-retirement. At least some of them did. At their time, it did not matter whether a person worked in a government school or a private company; they were eligible for a pension. However today, except for people working in Government services and organizations, the private sector does not offer pensions. Even the pension for Government employees may not be enough for the rising cost of living and deal with inflation.

National Pension Scheme is one such investment that can be made during an individual’s employed or self-employed days to sustain themselves post-retirement. This not only acts as savings but helps you to save tax as well, when you invest in it. It is indeed a gift that you give your future-self.

What is National Pension Scheme (NPS)?

The Government of India started the National Pension Scheme under the Pension Fund Regulatory and Development Authority (PFRDA). National Pension Scheme is an after retirement age security coverage to all citizens who have opted for this scheme. It is a voluntary scheme that can be subscribed for pre-retirement.

Tax Benefits of National Pension Scheme

Based on Union Budget 2019, NPS now qualifies to be an Exempt-Exempt-Exempt (EEE) category product. This means that NPS tax is exempted at all 3 stages. Here is how you benefit from it:

  • Tax deductions up to 1.5 lakh per annum under Section 80CCD of the Income Tax Act.
  • Additional tax deduction up to Rs. 50,000 under Section 80CCD(1B) in a financial year. (only Tier 1 accounts are eligible, not Tier 2)
  • At term completion or 60 years, 60% of the amount received is free from tax, while the rest 40% has to be invested in annuity.

Other Benefits and Features of National Pension Scheme

National Pension Scheme comes loaded with certain features and benefits that can prove to be useful for both your long-term and short–term goals:

  1. Returns: You can expect a return of up to 12% NPS. The return percentage is dependent on the type of National Pension Scheme that an individual chooses which is then calculated by the government-appointed Pension Accounting Office.
  2. Regular Income Post-Retirement: The scheme investor is eligible to receive monthly pension amounts to be able to sustain a comfortable living for their future.
  3. Flexible: An NPS account can be operated from every nook and corner of India irrespective of individual employment and location. You can also switch between funds in NPS.
  4. Portable: NPS scheme holders can move from one sector to another like Private to Government or vice versa or Private to Corporate and vice versa. The NPS account will always be the same no matter wherever you go. Even if you leave your job, you can continue using the same account.           

Eligibility Criteria for National Pension Scheme

The following criteria should be met to be eligible for investing in the National Pension Scheme:

  • Applicant should be a citizen of India.
  • He/she/they should be over 18 years of age and less than 60 years of age.

Types of National Pension Scheme Accounts

There are two types of accounts for NPS and individual may subscribe for:

  1. Tier 1
    It is a mandatory account for all those who opt for NPS.
  • The Government employees have to contribute 10% of their salary (salary = basic + DA), and the government will make equal contributions as well.
  • For others opting this scheme, the initial contribution is Rs. 500/- at the time of account opening and minimum annual contribution is Rs. 1000.
  1. Tier 2
    Not a compulsory account like Tier 1. You can withdraw funds at any time, and hence, it provides high liquidity. There are no contributions from the government or the employers and include no tax exemptions either. There are three critical points to make a note of:
  • The minimum amount required to open this account is Rs. 1000/-
  • Minimum monthly contributions amount to Rs. 200/-
  • Necessary to hold a minimum balance of Rs. 200/- every financial year.

What Investment Options Do I Get?

  1. Active-choice: With this investment option, an investor gets to mix equity, corporate debt, and government securities as per his/ her choice. However, the allocation of equity can be a maximum of 50%.
  2. Auto- choice: Allocation is done based on the investor’s age.
Equity Till the age of 35, the equity portion is 50%, post which it reduces 2% yearly till it becomes 10% by the age of 55.
Corporate Debt Till the age of 35, the corporate debt is 30 %, post which it reduces 1% every year until it becomes 10% by the age of 55.
Other Options 1. Aggressive life-cycle fund – begin with an equity allocation of 75%
2. Conservative life-cycle fund – start with an equity allocation of 25%
Reduce as per the investor’s age advances.

Where to Create a National Pension Scheme Account?

Opening an NPS account is not that difficult now. It’s just a click away. You can easily invest in NPS online through the Finity App. We are a new-age app that makes it easy to invest in mutual funds, in a matter of minutes.

Withdrawal and Exit From NPS Account

If you retire at 60:

  • 40% of withdrawals are free from tax.
  • From the balance 60%, 40% minimum has to be used to purchase an annuity. The remaining 20% can be used to either buy an annuity or withdrawn by paying tax according to the tax slab.

If you retire before 60 years:

  • You would use 80% of your corpus to buy an annuity.
  • And withdraw the remaining 20% by paying the amount taxable according to the tax slab.
    Remember, the taxation of the amount via annuity is according to your tax slab. In the event of the account holder’s death, the nominee receives the entire amount.
Documentation for NPS Withdrawal

There are certain documents that require to be submitted for withdrawing money from your NPS account:

  1. A filled and signed withdrawal form
  2. Original PRAN card
  3. Copy of your Proof of Identity which must be self-attested
  4. A cancelled cheque of your active bank account

Now that you have a good idea about a National Pension Scheme and how it works it’s never too late to open an NPS account on Finity App.

Happy Investing!


Money in need, is money indeed!

Demonetisation made you sweat a pond;
The big corporate defaulted on its bond.

Limitations were imposed on your account;
Yet you ignore liquidity & focus on the amount?

Investing is pretty much like the perfect dinner – a well-diversified spread of dishes with nutrients in line with your health requirements. This is pretty much what you must seek in investments in the form of a diversified portfolio in line with your investment objectives & risk profile.

But imagine, you are hungry, and this appetizing meal is well-laid out in front of you and you take the first bite only to realize that the blessed chef simply forgot to add salt.

Quite often than not, you decide the asset class that fetches you the best returns but miss out on checking a simple attribute – liquidity.

Like salt, one realizes the value of liquidity only when it goes missing. What’s worse, by the time you realize it, you’ve typically reached the point of no return.

Recent times are a wake-up call for investors chasing returns in isolation, without considering other key attributes including liquidity risk & the importance of diversification.

We all know about PMC bank that was recently mandated to freeze depositor accounts or allow withdrawals subject to a significantly low threshold – irrespective of the amount held in the account. In similar news, DHFL could not repay investors who had parked their money in DHFL-issued fixed deposits. Such news triggered a slew of reports on people who lost health, and life in extreme cases, simply because most had their life savings parked entirely in the affected accounts and couldn’t come to terms with the fact that there is a possibility that they can never see their money again.

Developing situations made my cousin Anjali take a step back and re-think of the multiple financial decisions she had made and how could she possibly strategize well-enough to avoid, or at least mitigate, the risk of not being able to access her money while ensuring it appreciates optimally.

Here’s the list of actionable she shared with me saying that this would help her minimize risks and maximize returns on every penny deployed:

  1. Park money required to meet immediate liquidity in the savings account of a large bank
  2. Invest money needed for short term needs in very high-quality bonds/debentures – in many of them so that if one of them were to come under stress like DHFL, rest of the bonds continue to cover for the losses
  3. Deploy money needed to meet long-term objectives in multiple well-researched, high growth potential equity shares.
  4. Keep monitoring the holdings daily and keep managing the portfolio hoping that my knowledge suffices to take the right investment decisions.

Well, life was simple & she was confident till point 3, but point 4 made her open yet another pandora’s box wondering aloud if she really had the knowledge and time to actively manage the portfolio? How would she buy bonds & debentures reserved for institutional investors? Could she manage multiple trading accounts? Does she have the wherewithal to gain access to insights reserved typically for large institutional investors?

“I don’t think managing money is going to be as simple as the one, two and three. I know what’s required, but there’s no way I could do that myself. If only there was a way…” she rambled to herself as an idea struck her like lightning.
“Mutual Funds?”, she asked with a hopeful gaze.
“Precisely” was the only word I uttered as she picked the drift.

Mutual funds are typically pooled investment vehicles managed by highly qualified funds managers and regulated by SEBI – known for its typically low tolerance for compromised governance. Mutual Funds have a category-suite vast and expansive enough to suit almost all investor needs. While the fund manager’s role is to maximize wealth optimally, the role of a financial advisor is to help the investor with an efficient combination of well-managed mutual funds.

Informed decision making, predictable liquidity, and solid diversification are at the heart of mutual funds as a product.

Reply to this e-mail to know more about how you can utilize various mutual funds to achieve a variety of financial goals you have.

Indians are getting richer, Indian equities are next-in-line

Nifty and Sensex ended the week up by 2.65% and 2.84% respectively.

The recent credit Suisse publication – Global Wealth Report 2019 reflects total wealth grew at an annual rate exceeding 10%. Wealth increased significantly in every region of the world. Emerging market economies, especially China and India, did not simply benefit from this growth but featured as a key driver to the overall uptick

One key takeaway would be that while the wealth in most nations has been expanding, there seems to be a systemic fracture posing to be a hurdle in overall economic progress and hence the synchronised global slowdown today.

In other news, here is the week at glance:

  • The Federal Reserve cut its benchmark rate by 0.25%, a move that was widely expected & priced-in by futures markets.
    The statement may reflect a central bank that will be less willing to cut interest rates in the coming quarters after it removed the phrase that the Fed “will act as appropriate to sustain the economic expansion” and replaced it with less forceful language suggesting a wait-and-watch approach.
  • India to spend $100 bn on energy infra, says PM Modi inviting Saudi investment
    India is expected to invest a massive $100 billion in oil and gas infrastructure to meet energy needs of an economy that is being targeted to nearly double in five years, Prime Minister Narendra Modi said on October 29 as he sought investment from oil kingpin Saudi Arabia and other nations to boost supplies. Speaking at Saudi Arabia’s annual investment forum, also known as ‘Davos in the desert’, Modi promised stable, predictable and transparent policy regime to catalyse foreign investments.

Stock of The Week

Fund alerts:

Aditya Birla Sun Life Mutual Fund has decided to change the benchmark of the Aditya Birla Sun Life Equity Fund from S&P BSE 200 TRI to S&P BSE All Cap Index TRI.

Bottom line:

Earnings season, so far, have been slightly better than analyst expectations with major banks showing improvement in asset quality and fall in slippages, auto and technology companies’ improved earnings were partially backed by corporate tax reduction indicating a systemic recovery in second half FY20.
Though major indices may seem to lend a perception of Indian equities hitting the peak; however, the reality is far from it. We recognise immense valuation-based opportunities in Indian equities – especially in stocks beyond NIFTY15.
Investors deploying capital into large-cap-oriented & multi-cap funds through a Systematic Investment/Transfer Plan can be expected to benefit the most from the structural recovery underway.