The burning question that investors have in their mind is what to do with their investment? It is quiet unnerving to see value of investments fall down by 20-50%. But ask yourself a question, when there is a sale of up to 50% off in a mall what do we do? Do we join the sale with goods lying in our house or do we buy more?

You got it right. I do not need to answer the above question. So dear readers, you have answered your question about what to do with investment yourself. The question to be really answered is not whether to invest or not. But, the question to be answered is, where to invest and what to buy?

I have received numerous calls asking for a tip or an idea of what to buy. Most of the callers expecting a stock idea. But, at this point it is difficult to spot the next sector which will lead the market.

If we analyse the past major rallies and corrections we can find that every rally is fuelled by one or two sectors.

1. The years till 2000 saw sharp moves in IT sector. No one had a clue which sector can move next.

2. The years till 2008 saw Power sector and infrastructure sector have bubble valuation

3. The years till 2020 saw bubble valuations in Banking and financials.

No market participant can tell with surety about which sector or which stock will move up next. Because of Corona one cannot access the impact it has on industries. If we look at our daily lives Corona has negatively impacted the following industries directly

1. Transport (Aviation, Railway, Buses)
2. Hotels
3. Industries where large scale labour is used
4. Oil & Gas industry

On the brighter side, it has done some positive for the following industries

1. Healthcare & Pharmaceuticals
2. IT sector
3. Insurance companies

Chances are that many foreign companies may divert to India if we can curb growth of Corona and shift their manufacturing facilities from China. Chances are there that we can grab China’s share in Textile and Chemical sectors. Chances are there that the rise in medical costs and prices of basic medications will continue and help in profits of Healthcare and pharma companies. Chances are there will be growing awareness in purchase of health insurance and standard of health will still further improve with people going for good treatment because of medical insurance. IT sector will shift from current offices to work from home models.

China having cut down its production has low levels of inventory. They will take time to start exports. Moreover importers will be reluctant to import from China for some time. Stock of Chinese goods in our country is low as compared to past and chances are that our local manufacturers may be able to grab the opportunity.

I am not commenting on current situation or how grave it can be, but there is a silver lining to this dark cloud.

If you feel like others that world is coming to an end, look at your living habits. Have they changed? What impacts us impacts others. The way we have to change, others have to change. If you feel that because of corona nothing has changed except our habits of washing hands, covering nose and mouth others do the same. Remember such events have occurred in past and mankind has always won the battle and rebounded back with double force.

Don’t try to spot stocks. Invest in Mutual Funds. Mutual Funds are diversified and fund managers know what is to be done better than us. One can start investing rather than waiting for markets to fall further. Remember, such opportunities rarely occur once in a decade. DO NOT MISS THIS CHANCE OF INVESTING AT 20-50% DISCOUNT. “Participate in this Corona Sale.”

EVERY RISE HAS BEEN LONGER AND LARGER THAN EVERY FALL

Most of the people have some or the other bad habit. Either people smoke, have a habit of drinking tea or coffee multiple times a day, habit of eating food outside or any other habit which leads to ill effects on their health.

Minimum Cost of 1 branded cigarette is Rs. 10 and the same cost is that of a cup of tea if drank on roadside tea stall. A samosa would cost Rs. 10. If we analyse our daily habits we spend around Rs. 60-100 behind such harmful habits which leads to long term problems like Cancer, acidity, obesity and much more.

Did you know that a mere saving of Rs. 30/day can accumulate Rs. 4,25,000 and get a life cover worth Rs. 11,00,000? Let us convert our bad habits to health and wealth. Let us reduce spending on such hazards and invest for the best of ourselves and our family members.

At Baxi Investment we are celebrating Convert Habit into Health and Wealth month from September 1^st to September 30^th. If you have any such bad habit or if someone known to you has a bad habit and would like to quit it, contact us. It is for us to choose between Habit or Health & Wealth.

Please share this and let people join hands towards creating a Healthy and Wealthy Society.

Baxi Investment

Your Guide to Financial Well-Being

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

LIC Cancer Cover Plan - Table No. 905

This is a fixed benefit health plan offering payouts for treatment of cancer. In case the customer is diagnosed with cancer, this plan will offer benefits irrespective of the costs incurred in the treatment. LIC Cancer Cover provides protection in case of Early Stage and Major Stage Cancer.

LIC Cancer Cover Plan is a regular premium plan in which premiums can be paid Yearly or Half yearly for a policy term ranging from 10 to 30 years. The policy can be purchased offline as well as online.
 

LIC Cancer Cover Plan Options

LIC Cancer Cover 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 you take a 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 you are diagnosed with cancer after the increased cover has reached Rs. 13 lakhs, it would not increase in the next 2 years.

The benefits payable under the plan shall be based on the Applicable Sum Insured, where the Applicable Sum Insured shall be equal to-  

• Option I - Basic Sum Insured for policies taken
• Option II - Basic Sum Insured during first year and increased sum insured thereafter

LIC Cancer Cover Policy Benefits

The benefits are dependent of the stage of cancer which you have been detected with. They are as follows:

Early Stage Cancer

In case you are detected with Early stage cancer which are specified, you get 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 you are detected with Major stage cancer which are specified, you 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 you.
• 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. 

Raksha Bandhan is a very old festival which has its details even in the Bhavishya Purana during the 5^th century. On this day siblings exchange Rakhi with some gift. While tying Rakhi the sister prays and wishes a good life for brother while the brother promises her with love, protection and happiness.

In todays’ world when nobody has time these promises are fast losing their importance. None of the siblings have time to fulfil their promises as they are more entangled in their life and social media. Usually when it comes to gifting, we think of Sweets & Chocolates accompanied by a brand new Mobile Phone or a new Vehicle, or online shopping vouchers. These are traditional gifting ideas exchanged with words of promises and wishes.

Think over now, the sibling will spend whole day with gift living the other one alone, than starts monthly recharge, more time spent on social media, increasing petrol costs and maintenance, purchase of stuff not needed as time limit to use a voucher is there. These gifts may make siblings happy for a day or a week but they are ultimately going to consume time and money going ahead which is not healthy mentally, physically or financially.

If on this Raksha Bandhan you really wish for a better life and safety of your sibling gift them with an Insurance cover for life or an Insurance cover for Health or a Mutual Fund or an SIP of mutual funds. These innovative gifting ideas are actions towards fulfilment of promises and wishes of happiness and safety.

Dear readers traditional gifts are mere actions which do not support words while innovative ideas of Insurance, SIP or Mutual Funds are Actions which will fulfil your promises and wishes to your sibling.

Wishing all of you a Very Happy Raksha Bandhan.

  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.

As a parent, while you endeavour to provide the best to your children, making them understand the value of hard-earned money is equally important. Children need to realise that money does not grow on trees; you need to earn it, save and invest it sensibly so that it grows and generates wealth to continue living comfortably.

“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.” – Robert Kiyosaki (a celebrated investor and author)

As a responsible parent, you got to persistently impart money management lessons smartly to your child, so that in the long run it cultivates the good habit of saving and makes him/her and handle money deftly. One of the best and smart ways to impart money management lessons to children is allowing them to go hands-on and inculcate learning through experience.

Teach your children the importance of savings. Here’s how you could go about it…

• Introduce them to a few games associated with money such as Monopoly, Game of Life (similar to monopoly), Cashflow (inspired by Robert Kiyosaki’s Rich Dad, Poor Dad teaches how to be in better control of your finances), Payday (teaches how manage your monthly budget), etc, that can impart a money management lessons if shepherded prudently.

• Introduce children to the concept of a piggy bank initially and then take it further from there. As your child grows ups and starts getting pocket money, open a savings bank account in his/her name and park the pocket money in it. Explain the rationale, and set your terms and conditions as a parent.

A savings bank account for children will introduce them to the concept of interest on savings, power of compounding, basics banking transactions, help them recognise the nuances of personal finance, encourage them to save and invest productively, and ultimately aid them in financial planning.

Additionally to secure their future, encourage them to save via FD/RD

• Engage your children and spouse when you draw your household budget. Children learn a lot by listening and observing and they are fast learners. In fact, they may even provide you with worthy insights as they evolve and grow over time.

In the budgeting exercise, set rewards when they save or contribute positively towards the household budget. This will not only prevent them from being reckless spendthrifts but even enhance their mathematical and money management skills.

• Introduce your children to the practice of delayed gratification and encourage them to work for things they want and aspire for. Explain that making plans and getting them down on paper gives us a road map to achieve goals.

When they have certain materialistic demands, help them distinguish between ‘Needs’ and ‘Wants’. ‘Needs’ are necessities one cannot wish away, while ‘Wants’ make life more comfortable, but can wait. So, say you are out shopping and your child is nudging you to buy certain thing/s, don’t give in to his/her demand outright; ask your child to assess if it is a ‘need’ or a ‘want’ and explain to your child in a light-hearted manner using the correct analogy about saving for it to purchase it.

For your high school children, setting financial goals into short-term, medium-term, and long-term will help them understand how to prioritise. Buying a gadget, cycle, expensive clothes, shoes, etc–the shorter goals –– encourage them to save a certain portion of their pocket money, instead of fulfilling their materialistic demand/s upfront. For the longer goals (buying a bike, a foreign vacation, etc) and the vital ones such as their higher education, engage them in sensible money talk.

Doing this may help children distinguish between needs and wants well, prioritise financial goals, start understanding the value of every comfort, and luxury that you bring into their lives, and eventually sensibly accomplish financial goals as they grow up.

• Create awareness on how inflation erodes the purchasing power of hard-earned money. Educate them on how to calculate the approximate future value of the things they aspire, the rising costs, and ways to accomplish the vision and dreams they have for themselves.

• When you are giving teenagers an add-on credit card, first take them through how the credit card bill works and the perils of excessive usage of a credit card. Explain what their responsibility will be about owning an add-on credit card, in case of extravagant, impulsive spending or emergencies. Similarly, apprise them about the offers on their cards, so that they save (earn rewards points/cash-backs/discounts) whenever they swipe the card.

• And last but not the least, foster the art of giving and be role model to your child. Practice what you preach as a parent. Ensure you are setting the right example in your personal finances while you educate them on money matter.

Unless you motivate your children to save and teach them the value of money from childhood, they will probably never understand the importance of saving and make a lot of financial mistakes when they grow up.

Teaching children how to manage money is one of the best things you as a parent can do to prepare them for financial independence in the real world.

Thus, consciously impart the right financial education to your children at the right age, so that they don't commit serious mistakes. The most important skill in the art of money management is being able to make the right financial decisions when they grow up. So, be a role model for your children.

Developing money management skills can make your children financially independent once they grow up. Ultimately, it will serve in the interest of the family’s financial wellbeing.

Yes you read it correct. There is nothing available online about relation between savings and losing weight. Recently I have started my diet program with a target to lose 10 kgs by consuming 1500 calories a day. This intake is my budget. If a consume more calories I have to workout and burn excess calories. While implementing my routine I realised something which I would like to share.

Our lives are full of temptations. The moment we get up we are tempted to use a good soap, good toothpaste, wear good apparels, have a good vehicle and what not. Same is with our eating habits. We want to eat best food in town at best restaurant. Remember that usually food that tastes good is high in calories. Consuming limited calories is like following a budget. While talking to most of the clients I realised that no one follows a budget, if one does not have a budget one can not save well. So if you want to save, have a budget. A budget not targeting how much can we spend but how much can we save.

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. 

Many investors ask me questions like “what do you think about direct funds?”, “Should we invest in them?” My simple answer to them is a question. Do you operate yourself looking at a video on youtube? If the answer is yes, go ahead and invest in direct funds, if no, don’t.

Direct funds are for those investors who do not need an advisor. An advisor helps you to

1. Select right fund
2. Provides you with service like collection of form
3. Transaction execution
4. KYC process
5. Switching when fund is not performing well
6. Help you redeem such that you bear no or minimum tax and much more.

Direct mutual fund platforms do not provide any such service. They display products for you to select and buy.

Role of mutual fund advisor was, is and will be there in the industry. The day people will treat themselves without going to doctors, role of advisors will end.

The below chart shows that still 82.7% of retail investors prefer advisors.

Select your advisor wisely. At Baxi Investment we have the policy where, we do not sell Mutual Funds but we help you to purchase Mutual Funds. Our advice is customized and no two clients will receive the same advice.

What is Systematic Withdrawal Plan (SWP)?​

Systematic Withdrawal Plan is used to redeem your investment from a mutual fund scheme in a phased manner. Unlike lump sum withdrawals, SWP enables you to withdraw money in installments. It can be viewed as an opposite of SIP. In SIP, you channelize your bank account savings into the preferred mutual fund scheme. Whereas in SWP, you channelize your investments from the scheme to the savings bank account. It is one of the strategies to deal with market fluctuations.

With the Systematic Withdrawal Plan, you can customize the cash flow as per your requirement. You can choose to either withdraw just the capital gains on your investment or a fixed amount. This way you will not only have your money still invested in the scheme, but you will also be able to access regular income and returns. The money that you withdraw can be used to reinvest in some other fund or can be retained by you in the form of cash.

How to Set up an SWP?

You need to fill up an SWP form and submit it at the office of the AMC (fund house) concerned. You have to specify the SWP amount and duration of the SWP in the form. If you have opened an online account with an aggregator, you may be able to set up the SWP by filling up an online form instead. If your bank account is registered with the mutual fund, your SWP amount will directly be remitted into your bank account through ECS (Electronic Clearing Service).

There are two options for a Systematic Withdrawal Plan (SWP):

• Fixed Periodic Withdrawal

A fixed periodic withdrawal allows the unitholder to withdraw a fixed sum on regular intervals, say monthly. The mutual fund house will sell units equivalent to the SWP amount and transfer the amount to the investor’s account.

• Appreciation Withdrawal

In the appreciation withdrawal method, mutual fund units holder makes the choice to withdraw capital appreciation on his fund at a fixed frequency. Suppose an individual has invested Rs. 10 lakh in a mutual fund which generates returns at an average of 1.5% per month. If the investor picks up a monthly SWP plan under appreciation withdrawal, about Rs. 15,000 per month would be credited to his account.

While in the fixed withdrawal plan, the corpus may deplete over a period of time, there is no such possibility in the appreciation withdrawal plan as only capital appreciation gets transferred in the form of an SWP.

Example: Click to see real life example

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?

Don’t we all wait for the SMS alert informing us that our salary has been credited into our bank account? More than anything it is a reminder of the regular payments we have to do.

These could be utility payments-electricity and phone bills, EMIs for home or car loans, school fees, maintenance for society, insurance premium, credit card bills, and so on. Many of these payments can be automated and get debited directly from our salary accounts.

Once these payments are taken care of, the remaining money then gets spent on discretionary expenses - such as eating out, movies, shopping, a weekend trip out of town and so on. In the midst of this who has the time to think about saving? This is the mistake most of us commit. But it can be tackled if you automate your savings too, just like your regular payments.

Saving before spending

Keep legendary investor Warren Buffet’s words in mind: “Don’t save what is left after spending, but spend what is left after savings”. This is the key to wealth creation. And an easy way to invest in mutual funds is through Systematic Investment Plans (SIPs). The beauty of SIP is that you can automate it; make your salary day your SIP day. This way you can ensure that your investment is done the same day that you receive your salary. Let us see how.

Investing in mutual fund schemes through SIPs ensures that the investment is done regularly and periodically. If followed over a longer period, SIPs are a great tool in your journey towards wealth creation.

How SIPs work

A SIP is similar to a recurring deposit with the bank, where you deposit a fixed sum of money regularly on a specified date. The only difference in the case of a SIP, is that your money is invested in a mutual fund scheme that you choose and the returns clocked are variable, market-linked. Therefore, do note that mutual fund investments are subject to market risks.

If you make your payday your SIP day (the day the money is invested in the mutual fund) and select mutual funds schemes carefully, it can prove beneficial in achieving your financial goals.

You can choose from various categories of mutual funds (equity, debt, hybrid, solution-oriented, and others) offered by the fund house. Make sure you select mutual fund schemes that have proven track records of generating consistent returns across diverse periods and market cycles. Further, ensure the fund house follows robust investment processes and systems.

Depending on your convenience, you have the option to choose your SIP date, the amount, frequency of your regular investments - daily, monthly, or quarterly basis, and the SIP tenure. Your investments will be carried out via a NACH/ECS mandate, where on the chosen SIP date, the bank will debit your account and the money will get invested in the respective mutual fund scheme/s systematically. The process is simple to execute and you can register online through Baxi Investment.

The benefit of timing the SIP with your payday is that you know exactly how much surplus is in your account for the rest of the month. You can plan your discretionary expenses accordingly and ensure that your monthly budget stays on track. This brings in a discipline in your spending and savings and can help you attain life goals such as buying a home, a car, providing the best education to our children, getting them married, and living a stress-free retired life.

To start your SIP journey contact us today.

BJP led NDA is all set to form the next Government with a comfortable majority and Narendra Modi will have at least one more term as the Prime Minister. The Nifty after trading sideways in 2018, shot up 10% in the pre-election rally in anticipation of Modi win and after a bout of volatility during the last 2 phases of polling, reached its all time high after exit polls. The stage is set for a longer term secular bull trend in the stock market. For long term investors in India, this is a great time to invest in equity.

Long term secular bull market in India

Over the past 20 years, second term for incumbent Governments has resulted in strong returns for equity investors. NDA and UPA wins in 1999 and 2009 respectively saw the stock market surging in both instances – with Modi’s victory we can expect the same this time. Investors both foreign and domestic want stable Governments so that they have clarity on fiscal policy. The Modi Government in its previous term had initiated some important structural reforms in the economy like, GST implementation, Insolvency and Bankruptcy code, Real Estate Act, diesel price deregulation, opening more sectors to FDI etc. A stable NDA Government will ensure continuity of these reforms and also pave the way for other important structural reforms that will strengthen the Indian economy.

The Sensex and Nifty are within touching distance of 40,000 and 12,000 respectively. Both are important psychological levels and the market is set to scale newer highs in the future. While bullish sentiments sweeping through the market now will provide momentum to the leading indices, questions will be asked about over-heating valuations in the coming months; Nifty P/E ratio is now at the higher end of its historical range. Corporate earnings growth will have to sustain the near term rally. Corporate earnings growth has shown clear signs of revival over the past few quarters and should now show more robustness for the rally to sustain. Most fund managers that we have interviewed are bullish about robust earnings growth in the coming quarters.

Great investment opportunities in midcap and small cap

While the focus over the last few days has been on Sensex and Nifty because they make the headlines, a deeper look at the broader market reveals great investment opportunities. 2018 was a difficult year for midcap and small cap segments of the equity market. The Nifty Midcap 100 index fell 16%, while the Nifty Small Cap index fell 30%. Midcap and small cap equity mutual funds were among the worst performers in 2018.

However, the sharp decline in price has made midcap and small cap stocks attractive again. The valuation premium at which Nifty Midcap 100 was trading versus the Nifty has now disappeared. Some reports suggest that Nifty Midcap 100 is at a valuation discount in terms of forward P/E. The valuation premium, at which Nifty Small Cap 100 was trading versus the Nifty in 2017, in fact now has turned into valuation discount.

Both Nifty Midcap 100 and Small Cap 100 Index have risen around 9% from mid February levels, despite high volatility over the past 1 month. This clearly shows that investor confidence is returning in midcap and small cap stocks.Midcap stocks outperformed large cap stocks in the previous term of the Modi Government. Nifty Midcap 150 TRI gave 14.6% CAGR returns compared to Nifty 50 TRI’s 11.5% CAGR returns. A second term for Modi is great news for midcap and small cap stocks and mutual funds.

Many of the reforms initiated and implemented by the Modi Government benefited midcap and small cap stocks the most. One of the most important aspects of the reforms of the previous Government was that they are aimed at transforming the quality of our economic growth, e.g. tax simplification, bringing people into the formal economy, digitization, infrastructure etc. Most of these reforms are aimed at boosting domestic consumption and capital expenditure which will boost earnings of midcap and small cap companies. Some of these reforms take longer time to yield economic benefits, but we can expect to see the benefits of many structural reforms during the second term of the Modi Government. Retail investor sentiments in midcap and small cap mutual funds took a severe hit last year, but we think that this is a great time to invest in midcap and small cap mutual funds.

Conclusion

The last 5 year period was great for equity mutual fund investors. Across different market conditions, different diversified equity mutual fund categories generated on average 12 – 15% CAGR returns (source: Advisorkhoj MF Research), outperforming fixed income and gold by a huge margin. 2018 was difficult year for many mutual fund investors, but the trend over the last 3 months is encouraging and the election results today reinforced the positive trend. This is a good time to tactically increase your asset allocation to equity. However, as stated multiple times in our blog, you should keep your risk appetite in mind when investing and consult a financial advisor.

Consult us today,

Hardik Baxi

Baxi Investment

+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