Be the MasterChef Of Your Finances

MasterChef Of Your Finances-01

As the twelfth season of MasterChef Australia comes close to it’s last few episodes, one watches people make mouth-watering dishes that are a perfect balance, technique and sometimes even innovation, it is hard to not imagine, what could be the classic perfect recipe for a happy life? Sadly there isn’t. However financial freedom which can at least make life comfortable just might have a recipe.

Recipe for Financial Freedom A La Keiv with Tax-saving Sauce


  • Life Cover
  • Health Cover
  • Investments

For the Tax-saving Sauce:

  • ELSS
  • NPS


1. Financial Freedom is an easy task if you have the best usage of the right ingredients mixed well in your financial portfolio, based on your financial goals and requirements. One of the biggest priorities in an individual’s life is to secure their family’s future and that is why life cover is so important. It is also essential to see that the coverage amount is enough and the premiums aren’t a liability.

2. The next biggest priority and asset is generally, health. Getting health insurance is also crucial because it protects one of your valuable assets. So, make sure when you have a health cover it has a large network of hospitals and meets the requirements of your Investments: family too.

3. The most beautiful thing about investing is that it helps you not only earn but also create more savings. Today, it is possible to get a mutual fund starting at just Rs. 100 a month. That is literally, throwaway money for things we don’t need. Your investment and what you make out of it is your savings, which is what will give the catapult to make all your dreams come true.

The Tax-saving Sauce

National Pension Scheme (NPS) and ELSS tax-saving funds are not just investments to earn high returns, but also save on your income tax money.

  1. NPS: is a Government initiative and monitored investment plan that anyone can use to both save taxes and earn returns that can at least fight inflation. 
  2. ELSS: on the other hand, comes with the shortest lock-in period among saving schemes and also can be attained for instant tax proof online.
  3. All the Other insurances: Both the health cover and life insurance come with tax benefits under the Income Tax Act. 

This is the classic recipe for hassle-free financial freedom while you can save on taxes. Find out what can you do with it. You can get all the ingredients and cookware for this recipe on our app. Click here to download our free app. Our app also comes with a tax calculator tool so that your sauce compliments your main dish.

How to Plan a Happy Retirement with NPS?

Happy Retirement with NPS-01

The reality of retirement planning isn’t as dramatic as it sounds. It is, in fact, easier if you start early because you never know what befalls in the future. So where do you get started? What could you possibly do effortlessly to save for your post-retirement days and not depend on other family members? National Pension Scheme might be the answer to all these queries. Let’s find out how.

Retirement Planning with National Pension Scheme (NPS): 101

The first thing that one needs to be aware of, about NPS is that it is governed by Indian laws and hence protected by them. This is one of the most secured investment schemes in India and can be very beneficial. 

1. All you need to be eligible for investing in the National Pension Scheme is proof of citizen of India with ID and Address proof and be over 18 years of age and less than 60 years of age.

2. There are 2 types of accounts for NPS and individual may subscribe for:

  • 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. 5000.
  • 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. 5000/-

3. You get two options which are Active-choice and auto choice. With active-choice 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%. 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%. Reduces as per the investor’s age advances.

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

5. This is not all, NPS also has major tax benefits: 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:

  1. Tax deductions up to 1.5 lakh per annum under Section 80CCD of the Income Tax Act.
  2. 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)
  3. At term completion or 60 years, 60% of the amount received is free from tax, while the rest 40% has to be invested in the annuity.

So, you not only plan a financially happy retirement but also save on taxes while doing so. A lot of people need to understand that given the current scenario where the pension is almost non-existent one can use NPS to make their actual free time in life, comfortable.

Insurance Awareness Day


Insurance Awareness Day

How mutual fund investment can help you achieve your financial independence?

Financial independance

Any investment requires a certain amount of money, obviously. But what if you had just a ₹100 in your account and that’s all you can afford to invest per month at least for the time being. Do you still have a chance to be an investor and become financially more stable? Of course, it is possible with mutual funds and we’ll tell you how to make it possible.

How to invest in a SIP to ensure your financial stability?

SIP or Systematic Investment Plans are simply mutual funds that are invested on a monthly basis instead of a whole lump sum. While there are a plethora of schemes out there you have to make sure that you keep certain things in mind, so that you are able to achieve financial stability.

1. Set a Target:

Decide how much earnings due you have to make in the long run to be financially independent. The time it will take to build that wealth is based on your goal. You can use our Save For A Goal tool on Finity App for estimating your target amount and the time it would take you to achieve it.

2. Choose Scheme Wisely:  

There are multiple factors which should decide whether a scheme is appropriate for you or not. Your risk appetite is the most important because if you wish to become financially independent, you cannot afford to lose money and at the same time not indulge in the low-risk appetite where your investment is unable to fight inflation in the long run. 

3. Compounding:

Unlike other saving schemes the amount that you invest grows every month as you start earning more and you invest both your principal amount and earned amount in the next month, in the case of a SIP. Mutual funds have hence the major advantage of compounding interest hence the amount of money invested keeps growing not just through the monthly investment but also the earned amount.

4. Don’t Be Hasty:

It is quite exciting to watch your investment grow over time, which gives you further reason not to withdraw your investment and earnings in short periods of time. In that way, with continued investment and the power of compounding to aid it, you will keep earning more.

5. Check Your Fund Performance and Keep Adding to Your Mutual Fund Portfolio:

While you have existing funds and building wealth, you can start investing in larger amounts when it seems comfortable for you while you keep an eye on your older scheme at the same time. This way you can build wealth parallelly through two different plans.

6. Mutual funds are basically a multiplayer strategy game:

So your initial investment is the resources that you start with and you keep building wealth and getting ahead in the game by continued and strategic moves. While in a multiplayer game, it is your job to create and execute the strategy, in the case of mutual funds, it is the fund managers who strategize based on your risk appetite. You of course are overlooking the fund performance but leaving the major chunk of the game to the fund managers and making returns on the gameplay.

The truth is that mutual fund investments can help you become financially independent for real but you have to be patient and keep increasing your resources. Life may be tough but mutual fund investment is surely not one of those things. The best part is that with ₹100 as your minimum investment amount, it’s similar to the beans from ‘Jack and the Beanstalk’, only in this case you can keep earning without fighting a giant.

The Signal: The Week & More

the week & more




Key Events

  • PM dismisses lockdown rumours: 

PM Narendra Modi dismissed the rumours of lockdown reimposition, and infact urged states and union territories to get ready for Unlock 2.0.  

With economic indicators showing early signs of revival, cautious approach to open up the economy will further help boost business sentiments and help revive the economy.

  • 21 million jobs added in May: CMIE: 

The unemployment rate remained very high in May 2020, but labour market conditions have improved during the month. Announcements made by central government and several state governments indicate the lockdown could be lifted further in phases during June. 

With improving labour statistics on the horizon, we expect consumption recovery to be right around the block.

  • IAF on high alert, moves fighter jets to forward bases

India and China have held another round of military-level talks, following the fierce clash in the Galwan Valley in eastern Ladakh on Monday night. China has claimed sovereignty over the region, that India trashed as exaggerated and untenable.

Aggressive movements on both fronts could disrupt foreign investments in India. Foreign investments started picking up only last month since the onset of the pandemic. However, since Indian equities have already witnessed a flight of significant foreign capital, reactive downside seems capped.

  • RIL share price hits all-time high as firm becomes net-debt free 9 months ahead of deadline

RIL stock price has rallied 95 per cent in less than three months from its 52-week low of Rs 867.82, fuelled by 11 investment deals in nine weeks, which aided the Mukesh Ambani-led firm to raise Rs 115,693 crore by selling 24.70 per cent stake in Jio Platforms

The RIL fundraise has been a significant contributor to increased foreign  institutional/portfolio investments in India. Reliance Industries has the highest weightage in bellwether indices NIFTY50 and S&P BSE SENSEX – meaningful contribution to index uptick.

The Signal: The Fool’s Misbehaviour

The signal

“Investments are subject to market risk. Read all scheme related documents before investing”

Nothing represents investor ignorance better than the above statement. Let me fix it for you –

“Investments are subject to risks even beyond the market. Only reading scheme-related documents will not help you mitigate those risks.”

Writers love to talk about fancy-name-ratios and how it indicates risk. Journals and columns love to rave about risk indicators more than the risk. In fact, most do not even dare tread beyond diversification to mitigate risk. 

But, here’s the bomb – market risk is NOT the biggest risk. 

You know market risks exist. You invest with an understanding that this risk may materialise, and you can incur a loss. 

But what if there is a risk that you are completely unaware of? 

Or even worse – you are aware of the risk yet continue to be a helpless victim?


Behavioural risk is the most underrated risk!

Even the most intelligent investors succumb to behavioural risk – especially during volatile times like now. While behavioural risk is an expansive subject, here are the three most critical and common behavioural fallacies among investors.

#1: The Investor’s Ego

There’s a popular notion about the investor’s ego – the moment a person buys his first equity share, he/she contracts this behavioural virus known as the Investor’s Ego. Symptoms include being excessively confident about own’s own rationale, ignoring conflicting opinions and in extreme cases – a tendency to compare oneself with Warren Buffett (or the other way round).

Often, investors refuse to accept own decisions as wrong and continue with futile attempts to make good of the situation. The inability to see beyond one’s ego is a prime reason for fractured relationships & broken investments.

Most long-term equity investments started out as an intraday trade gone wrong!

#2: Paying Attention

Don’t get this wrong. Paying attention is important; paying attention selectively is lethal.

“South-Asian Paints’ market share in Mumbai goes up from 30% to 35%. The company’s WACC has increased to 18% in just three quarters. Analysts note, the stock price has been exhibiting a continuous increase in the beta and standard deviation over the three quarters.”

Now, just because the investor itches to act upon newfound knowledge, they log into their trading account. 

What do you think happens next? Is it a buy or sell? What would you do?

Hold onto that thought.

Most investors (academically & professionally unrelated to finance as a subject) read the above as – 

“Increase in market share… blah-blah … increase to 18% in just 3 quarters … blah-blah-blah … continuous increase … blah … three quarters”. 

Is this how you read it?

If yes, let us take a wild guess about your investment decision. 

Was it a “buy”?

Here’s how paying attention selectively can backfire. As humans we tend to retain only the things we understand and base our decisions on the information our memory retains. 

Here, it is simple to understand that the company’s market share has increased (which is a good thing) and then we read through some more mumbo-jumbo that talks about an increase – so we presume this is also a sign of progress.

Here’s where things go wrong, and this is how wrong investment decisions are made. 

For the curious, the other two increases were referring to an increase in cost and increase in risk (which is not a good thing!).

It is okay to pay attention selectively if that piece of information has no role in your investment decisions.

#3: The Itch

Drawing from the above illustration, the investor can still do well if he stops at paying attention selectively. The real problem begins when he acts on it. 

This itch to act upon newfound information is also popularly known as action bias.

“Charlie and I decided long ago that in an investment lifetime it’s just too hard to make hundreds of smart decisions. That judgement became even more compelling as Berkshire’s capital mushroomed and the universe of investments that could affect our results shrank dramatically. Therefore, we adopted a strategy that required our being smart – and not too smart at that – only a very few times. Indeed. We’ll now settle for one good idea a year.” 

– Warren Buffett

Investors need to find solace in the fact that not acting upon something is also a conscious action. While this may seem straightforward, most investors are vulnerable to this behavioural risk. If you are considering investing, switching or redeeming any of your capital market investments because of the current volatility – that’s a prime symptom of the itch

Do not be a fool. Do not misbehave.

Each time you feel like tweaking your portfolio, wash your hands for 20 seconds and utilise the time to think about this – 

A theory suggests that oxygen absorbed during respiration damages cells through oxidation which leads to aging and consequently death. In a way, the elixir of life is also the kiss of death. (Now you know why they recommend antioxidants in diets!)

Is it possible that your paranoia about financial security led you to making great investment decisions and the same paranoia will push you to overdo it and ruin the fort you built?

Finsight (15th June 2020 to 19th June 2020)


Indian Equity Markets ended on a negative note for the week. Nifty 50 was down 1.7% and Sensex by 1.5% respectively.

Weekly Capsule

– US Fed sees interest rates staying near zero through 2022

The Federal Reserve kept interest rates near zero indicated that rate might stay as it is till 2022. Also, during the Fed meet US Fed Chairman Jerome Powell said that the US economy will shrink by 5% in the year 2020 but will see a growth only in FY 21.

– Telecom operator dues

The Supreme court has asked private telcos to provide for security and repayment of roadmap in an attempt to allow telcos to replay AGR dues over a 20 year period. And if telcos are not able to furnish those guarantees the apex court is likely to consider a shorter time frame which may not be good news for these players.

– Indian Economy to Bounce Back with Growth of 9.5% in Next Fiscal: Fitch

After a contraction in the current financial year, India’s economy is forecast to bounce back with a sharp growth rate of 9.5% next year provided it avoids further deterioration in financial sector health. It has forecasted a 5% contraction in the GDP in the ongoing financial year.

Nifty at glance 


outlook of week

Outlook for next week:

We feel that the markets will tend to be volatile over the next week also. Investors are suggested to invest only in staggered manner. The important number to watchout for next week in Indian market would be India Vix which is currently at 30-32 levels. In upcoming week markets are expected to remain volatile and this vix levels to elevate.

The Goldilocks Planet of Investment – Digital Gold

The Goldilocks Planet of Investment - Digital Gold

If you are a space buff and follow, all the latest updates in the space race, appalled by the beauty and mysteries of space you already know what a Goldilocks planet and probably why are we referring to Digital Gold as it. You can skip and straight away go to the section ‘Why is 24K Digital Gold A Better World for Gold Investment?’ Before we fly into the idea of Digital Gold being the better alternative world for gold investment, it would be wise to understand why are we referring to Digital Gold being a Goldilock planet and the source of this term.

Understanding the Concept of ‘Goldlilocks Planet’

It all starts with a fairy-tale: ‘Goldilocks and The Three Bears’. This is the story of a little girl with golden locks of hair who confidently walks into a home of a family of bears who aren’t at home and checks out her compatibility with their different sized chairs and beds. Of course, she eats all their porridge and does get caught in the end but indeed is the idea behind naming these special planets Goldilocks planet. 

A Goldilocks planet is all about the idea of finding a world that is possibly habitable by carbon-life forms, based on similar features and conditions that exist on Earth. This is extremely difficult to find despite the fact that the universe is limitless and scientists have found only a few possible Goldilocks planet with Earth-like living conditions. You could watch or recollect your memories of watching Christopher Nolan’s science-fiction opera, ‘Interstellar’. It has the concept of Goldilocks planets well explored.

How is Gold investment a Goldilocks Planet?

The immediate idea to buy and sell or trade gold would require a jewellery store or a bank. What if these options aren’t available due to circumstances that could vary from the store is too far to you are sitting at home due to a lockdown? You will need to find a Goldlick alternative for Gold. Digital Gold is not just the answer but it could be possibly a better alternative to regular Gold in multiple ways. However on the contrary in the literal sense of Goldilocks planets, there is no place like home when it comes to Earth and no matter how many Goldilocks planets there are in the universe, bursting with life, Earth is the only home planet we have.

Why is 24K Digital Gold A Better World for Gold Investment?

If regular Gold is Earth, then Digital Gold is a planet like Asgard with narcissistic God-like humanoids roaming around with hammers and staffs with special powers. Not really, that’s not true but in case you want to be an ‘InvesThor’ of Gold, Digital Gold is the right option for the following benefits:

  1. Pay only for 24K Gold: When you buy the jewellery store you are not paying for the gold you are also paying on metals and studded stones and gems. But that is different in the case of buying digital gold. Every rupee you invest is paid to pure 24K gold which has 99.9% of purity ridding it of making charges and precious stones that don’t have any resale value.
  2. The convenience of trading: We are all aware that buying gold can be time-consuming as you need to visit the jeweller, store or bank. With the digital gold investment, you can buy and sell gold online anytime and anywhere as per your comfort. You can even track your gold investment if you are buying gold on our app.
  3. Gold can be converted to cash in seconds: You can easily sell digital gold online anytime and anywhere. As soon as you sell the 24k gold the amount is successfully transferred to your bank account. Where in to liquidate the physical gold you need to visit the seller during the working hours and then you sell the gold.
  4. Zero storage hassles: We all know physical gold needs to be stored in bank locker and vaults, which come with long term expensive storage costs where digital gold saves from such hassles as it stores your accumulated gold in safe and secure vaults.
  5. Digital Gold investment doesn’t have to be a big amount: The best part about buying Gold online is that you do not have to buy large amount of Gold unlike at the stores and keep accumulating it over time by buying small amounts at a time. For example, on our app, you can buy gold for as low as ₹1000 at a time, regardless of what the price of Gold is at the time.

While you can be an ‘InvesThor’ of Gold on our app, do not forget that the most simple life forms are the most powerful and that a Goldilocks planet of gold investment requires simplicity like the scientifically almost immortal amoeba, to thrive.

‘We’re made of star stuff’ – Carl Sagan

5 Things You Oughtta Know About Health Insurance

5 Things You Oughtta Know About Health Insurance

In recent times, health has become the forerunner of people’s concerns with the pandemic affecting our lives and changing it forever, as a slow vengeful apocalypse brought to us by our self-destructing capacity. No, it isn’t that grim. We will thrive and do just fine but what really is important at this time is to understand is the importance of health and medical treatment. We cannot take medicine for granted anymore and health insurance is no longer a want but a necessity. So, if you are planning to get health insurance, go for it but you must keep a few things in mind.

5 Things to Note Before You Choose Your Health Insurance 

Just as it is with any other insurance product, there are things one needs to keep in mind about health insurance in general:

1. Variety of health insurance: There are a plethora of types of health insurance available in the mediclaim market. While some cover just your hospital bills, there are comprehensive plans that cover you up to the age of 100. They are referred to as, senior-citizen health cover. Of course, the premium prices vary based on the plan you choose. There is health insurance that simply covers critical illness as well.

2. Exclusions in coverage: Generally, this is the last thing to talk about. However, considering that time is a precious commodity, it is wiser to start with the idea of what health insurance doesn’t cover to set your expectations from this product correctly.

  1. Pre-existing diseases are not treated as soon as you purchase of the policy
  2. A waiting period is applicable to pre-existing diseases.
  3. For a few conditions, the amount assured to pay may vary around 10%
  4. Treatment for the use of intoxicants (alcohol and drugs) are not included in most cases.
  5. A waiting period for maternity/newborn baby expenses is generally applicable, however, the waiting period time varies based on the providers.
  6. A waiting period for weight-loss medical procedures such as bariatric surgery may be applicable in some policies. 

3. Work and Individual Health Insurance:  It is essential to note that while people don’t need to pay for the group health insurance that the employers cover their employees under, it may not be enough if one loses their employment suddenly or has a higher cover amount requirement due to pre-existing diseases. Individual or personal health insurance is essential to be taken in these times to protect yourself financially against any medical issues. You can also buy family health insurance that covers all the members of your family and falls cheaper against individual coverage.

4. Premium costs: The better your lifestyle and the younger you are, the more pocket-friendly your premiums for a health policy will be. However, it is crucial to keep in mind that premium costs also rise with the features and benefits it covers you for. You can always negotiate your way to reduce the premium costs by choosing a plan with lesser features. For example, some health insurance covers you for air-transport to and from the hospital. If you find that unnecessary there are plans which cover you for road ambulance costs as a feature.

5.Read the policy wordings: You cannot be 100% informed about the product you choose unless you make the effort too. So, it is advisable to go through your policy wordings. You don’t want to be troubled at the time of the claim process.

In the end, it boils down to how detailed you want your policy to cover you. If you are looking for options in terms of the type of coverage in health, you can check our health insurance section on our app since we have everything from basic hospital insurance to comprehensive health covers to even critical illness insurance. All you need is to download our app or connect with us.

Category Update: Arbitrage

Arbitrage Finity

What’s happening in arbitrage funds?

Arbitrage funds spreads turned negative for the first time. A spread is the difference between the price of stock and the price of its futures contract. Arbitrage funds delivers returns from a positive arbitrage spread and gives negative whenever there is negative spread.

How future prices converge with the spot price

Spot price Finity


What was the primary reason for such negative spread?

If you look at May end series, market-wide rollovers stand at 91% (vs. average rollovers of 86% seen in last 3 series). Stock future rollover stand at 94% (vs. average rollovers of 90% seen in last 3 series).
Due to this pressure from arbitrage players over short roll overs, spread across stocks dipped into negative zone from over 20bps. Even the large inflows in last two months and lower interest rates have also contributed to the dip.

How do we look at it?

Amid such environment we all know that the arbitrage fund may generate lower returns over the next couple of weeks, however one should not forget that the market volatility during the May 2020 helps funds managers capturing better arbitrage opportunities by churning the portfolio in between. Hence, the actual returns are better than the spread captured on expiry days. One should ideally invest in arbitrage funds with at least 3-6 month’s investment horizon for stable investment experience.

Key Takeaways:

Existing Investor: Nothing will change for existing investor, they should stay invested for a horizon of 3-6 months.

For new investor who has time horizon of 3-6 months can definitely look at arbitrage funds cause they may generate better yields compared to liquid funds on a post-tax basis.

We believe that in couple of weeks the situation should normalize.

eye of an investor Finity