Business Today | August 28, 2016

Losing wallets and mis- keys, wallets, bags and such. It can placing home keys are also be attached to kids’ clothing the stuff nightmares when outdoors to be able to track are made of. Parting them while letting them roam freely. with credit cards (with It works with an app over Bluetooth generous credit limits) and raises an alarm on the smart-and the fear of them being misused phone when the object moves awaycan be agonising. The good news is from a safe distance. The companythat you don’t have to rely on good claims that the tag, which costsSamaritans to return these precious `1,499, can be used as a nightbelongings to you. You can keep an watchman when attached on doorseye on them at all times through and windows as the motion detec-Bluetooth tags and GPS-enabled tion alerts in case of any movement.trackers. Here’s the low-down onthe most handy tracking devices for YOKY TAGyour keys, wallets, luggage, pets This one, too, beeps loudly whenand even kids. out of range. You can locate your phone by shaking the tag thrice.Track Essentials You can customise the tag with your own photos or designs. YokyTo track your home or car keys or Tags are manufactured in India andeven your wallet, you can use have a maximum range of 150 ft.Bluetooth tags designed for short It is available in stores for `999.distances. These are powered byBluetooth 4.0 Low Energy and pair TRACK LUGGAGEover an app on your smartphone. Arriving at a destination and realis-As soon as the tag goes out of the ing your luggage hasn’t made it canBluetooth range, it starts beeping. ruin your trip. Now with GPS-Evotag and Yoky Tag are two such enabled trackers, you can keep aBluetooth tags among many others check on your luggage whereveravailable in the market. you go. For this, you can use any of these trackers:EVOXYZ EVOTAGWith a range of up to 70 metres, this TRAKDOT LUGGAGE TRACKERis a small water-resistant tag weigh- This one uses a GSM chip-equippeding 122 gm. It can be attached to August 28 2016 BUSINESS TODAY 101

PERSONAL TECHBLUETOOTH 4.0 LOW ENERGY costing `312 per month. The deviceUnlike the earlier version of Bluetooth technology that in itself is priced at $179 and is re-required frequent charging, Bluetooth 4.0 Low Energy is tailing for `13,000 on Amazon.power efficient with low-energy functionality. It is beingactively used for new gadgets such as wearables and tags. Track KidsIn simple terms, Bluetooth 4.0 continues to connect to asmartphone (or any device) without draining the battery These small gadgets with GPStoo much. But to pair devices with Bluetooth 4.0 Low tracking and cellular signals canEnergy, it is imperative that the device supports this tech- help in tracking the accurate loca-nology. Apple introduced this support in iOS 5 and Google tion of your kids. Choose from theadded it to Android 4.3 and onwards. The next version, following:Bluetooth 5, has already been announced and will play animportant role in the Internet of Things. Bluetooth 5 prom- SPARSH TRAXSTARises to provide four times the range and twice the speed, This CCTV manufacturing companyand is expected to be available by late 2016 or early 2017. has come up with a compact track- ing device – a key ring and a smallmonitor to track and detect the around off the leash and still know portable device. Equipped with aexact location of your luggage their whereabouts. Below are a few SIM card, the device works with awhen kept inside. When it is in the GPS trackers that you can choose special compatible app using whichairplane cargo hold, it goes into from to track your pets: one can track location and locationairplane mode and its transmit- history for up to two to three days.and-receiver capability is shut off. POD TRACKER Parents can decide when they wantOnce your luggage is back on the Designed for dogs, this attaches to a notification and of what type –ground, Trakdot notifies you of the any collar size and allows you to lo- SMS, call, or app alert. Multiple re-location using the local cellular cate your pet at any time. It can cipients can be added for the notifi-network. It is available on Amazon monitor their activities and record cations. The device has three dialIndia for `6,014 (actual price their adventures on your smart- buttons that can be used to call$69.79), but one has to go for an phone, tablet or computer. The com- three prefixed numbers at the clickannual subscription. pany has added Wi-Fi to the new of a button. Even this requires a generation Pod 2, which helps in monthly subscription plan.VICTORINOX LUGGAGE locating them indoors, too. It can beTRACKER used to create a safe zone as well – MAPMYINDIA SAFEMATEThe luggage tracker from an alert is sent when the virtual This matchbox-sized device, costingVictorinox is powered by two AA fence is breached. This waterproof `4,990, can be easily added to abatteries and is priced at `6,900. IPX7-certified device needs to be school bag or a pocket to track loca-One has to create an account on charged every five days. This isn’t a tion accurately on its built-in map.checksmart.victorinox.com to acti- standalone device; it comes with an SafeMate can send SMS and e-mailvate the device. When placed inside annual subscription of $50. The Pod alerts, and give guided directions onthe luggage, it can send out an SMS 2 GPS + WiFi Pet Tracker costs $149 the map. Pressing the large SOS but-or email alert as soon as it reaches and can be shipped worldwide. ton on the SafeMate device sendsthe airport. It works on GSM con- an emergency alert message tonectivity and works across the TRACTIVE GPS PET TRACKER the designated people, and this in-world, except South Korea and This real-time location tracker will formation gets updated everyJapan. One has to go for an annual keep you updated with the location two minutes for two hours. Its bat-subscription, which is free for the of your pets; the location can be tery can last up to three to four daysfirst year and costs $19.95 from the checked within the browser or on on default setting, the companysecond year. the iPhone, Android or Windows claims. phone. This one, too, comes with aTrack Pets safe zone feature. It shows the pet’s @nidhisingal last location, path of past 24 hours,You can now let your pets roam and allows live tracking. This also has an integrated light that makes locating pets in the dark much easier. Tractive offers two monthly plans – the basic one costing `281 per month and the premium one102 BUSINESS TODAY August 28 2016

DROWN OUT THE NOISEBOSE’S QC 35 RIDES ON THE LEGACY OF THE MUCH APPRECIATED QC 25 AND IS A SOUND BUY. By NIDHI SINGALBose QC 35, a wireless noise cancellation through the app and it was ready to play. When worn, headphone, has the same design lan- the ear cups fit perfectly and cut the outside sound. Bose guage but weighs more, at 310 gms, claims to have added microphones inside and outside than its predecessor, the QC 25, which the ear cups that help in noise cancellation and it works weighs only 196 gm. It has a wide head- splendidly. As soon as the headphone was turned on,band for a more stable fit, making it the outside noise disappeared. The sound quality on thecomfortable to wear for longer durations. Although at QC 35 is impressive while playing vocals as well as in-first it does feel slightly heavy, you get used to it. The strumentals, but at higher volumes it lacked thump.foldable design makes it easier to carry around in the In order to use it in the wireless mode, the QC 35 hascase added to the box which has space to be charged; it comes with recharge-to store the charging cable and the aux BAG IT OR JUNK IT: able batteries. True to the company’scable, too. This neatly designed head- One of the best claim, a single charge lasted me closephone has essential controls such as noise cancellation to 18 hours in the wireless mode,Bluetooth mode toggle, volume control headphones available which is pretty good. When it runs outbuttons and a larger multi-functional PRICE: `29,363 of charge, it can be used as a wiredbutton for play/ pause, answering calls headphone by connecting the cord.and initiating voice commands. RATING: 4/5 The noise cancellation feature does not Pairing the QC 35 was a breeze with work at such times, but the wide earthe Bose Connect app (for both PLUS: Noise cups manage to cut some amount ofAndroid and iOS devices). While pair- cancellation, comfort fit outside noise. The Bose Connect apping for the first time, I had to update can be used to update the software ofthe software on the headphone MINUS: Bass, Price the headphones, too. ~ August 28 2016 BUSINESS TODAY 103

EX-LIBRISWake-up CallThe book is a powerful reminder of the catastrophic implications of climate changethat we have failed to grasp. By Vandana ShivaThe Great The entry of an emi- to the human, while denying themDerangement: nent writer in the cli- to every other kind of being?” HeClimate Change mate change story has reminds us that we are members ofand the brought the oxygen of an Earth community. For me, thisUnthinkable imagination into the air. means a deep recognition that every The very title of Amitav Ghosh’s geological age is an Eocene.By Amitav Ghosh book, The Great Derangement, pro-PAGES: 275 vides a much needed shift in focus. When our age is referred to as thePRICE: `399 It refers to the collective denial of the Anthropocene, it refers to the powerPenguin Books seriousness of the crises we are liv- of man to disrupt the Earth’s ecologi- ing through – with climate change cal processes. But it would be arro-Ghosh ignores as one of its most serious symptoms. gant and irresponsible to claim thatthe biggest But it describes the planetary crisis the human power to destroy givescontributor to through the human derangement, some humans the right to take overclimate disruption not just as a crisis “out there”. the Earth’s resources, processes and– the fossil-fuel- systems, in denial of the creativity,based industrial The most significant contribu- self organisation, diversity of livingagriculture system tion that the book makes is waking beings and living systems. Most non- the reader from the anthropocentric industrial cultures view the Earth and eurocentric slumber of the past as living, as Mother Earth. If we are two centuries, and showing that the alive today, it is because the Earth Great Derangement is the conse- creates the conditions of our lives. To quence of a mechanical worldview. be alive on this beautiful Earth is to live in the Eocene. In the stories about the Sunda- rbans that the book opens with, Another major contribution of Ghosh says, “The land is alive. It Ghosh’s book is to correct the ar- is itself a protagonist.” This is also rogance of what he calls the Anglo- what I said in Staying Alive in 1988. sphere seeing all science and technol- And the climate crisis is the Earth’s ogy as arising within the industrial wake-up call to humanity. Ghosh West. The chapter on history shows asks, “Can the timing of this renewed that one thousand years ago, China recognition be mere coincidence or was using coal and Burma was us- is the synchronicity an indication ing oil. Piracy defined as invention that there are entities in the world, continues today, including patents like forests, that are fully capable on climate-resilient crops bred and of inserting themselves into our evolved by the collective intelligence thought?” of our farmers. In the chapter on power, Ghosh clarifies that capital- Ghosh continues, “and if that ism is a child of imperialism and colo- were so, could it not also be said that nisation. For the empire, military vio- the Earth has itself intervened to re- lence, not innovation, was the basis vise those habits of thought that are of domination. The Anglosphere tries based on Cartesian dualism that ar- to hide its violence behind the narra- rogates all intelligence and agency104 BUSINESS TODAY August 28 2016

Romancing the THE Balance Sheet FORTNIGHTLY By Anil Lamba PICK Price: `699 Written in a jargon-free, user-friendly language, this book will teach you finance management in simple, easy steps.tive of ‘innovation’. they have created into a new BUSINESS BESTSELLERS* My one disappointment is market and resource grab. The Rise andthat Ghosh ignores the biggest Ghosh turns to Pope Fran- Fall of Nationscontributor to climate disruption cis’s Laudato Si as a source of in-– the fossil-fuel-based industrial spiration at the end of the book. By Ruchir Sharmaagriculture system accounting During his recent visit to Poland, Penguin UKfor more than 50 per cent of the Pope Francis said the world is at Price: `799greenhouse gases. And by ignor- war. The Pope stressed he wasing it, Ghosh’s creative break- not talking about a war of reli- Thinking, Fastthroughs in the Great Derange- gion, but rather a war of “inter- and Slowment fail to reach their logical ests for money resources”.conclusion. After referring to the By Daniel Kahnemansoil, the land and the plants as liv- Imperialism in times of cli-ing, Ghosh, through his silence, mate chaos is translating into Penguinfails to address how industrial ag- what Ghosh refers to as the Price: `499riculture perpetuates the false as- “politics of the armed lifeboat”.sumptions of dead soil, plants as If climate havoc is a symptom of ELON MUSKmachines and food as a commod- the Great Derangement rootedity. Fossil agriculture based on in an imagined separation from By Ashlee Vanceoil-based poisons is also the cause the Earth, the rediscovery of ourof farmers’ debt and suicides, and “kinship with other beings” of- Virgin Booksthe disease epidemic. fers a chance for sanity. There is Price: `699 an alternative to the politics of Fossilised carbon has been the armed lifeboat, and that is the Super 30forced into every aspect of our politics of the garden of hope, oflives, polluting the health of eve- seeding a future based on what By Biju Mathewry ecosystem, species, through I have called Earth democracy,atmospheric emissions, plastic of human freedoms redefined on Penguin Books Ltdpollution and the destruction of the basis of an Earth community. Price: `199nature’s ecological processes.Our water has been destroyed For the first time in human Business: The Emamiby corporations privatising wa- history, our common future, as Wayter and selling it back to us in a species, is no longer certain.plastics, further destroying our In just 200 years of fossil fuel By R.S. Agarwalwaters and oceans, and the life age, humanity has done enough Collins Businesscontained therein. Our soils have damage to the Earth to ensure its Price: `499been ravaged by petrochemicals own extinction. Our only optionlabelled as ‘fertilisers’, killing all is to heal the Earth and in so do- *Top books by sales for July 16 - 31, 2016;life in the soil, robbing ourselves ing, create hope for our future by Includes only books released after Jan 1, 2015;of everything the soil would give recognising that we are part of Information provided byback to us. The powers that have the Earth; not separate from thecontributed to climate change Earth, and its masters. ~ August 28 2016 BUSINESS TODAY 105are trying to convert the crisis The reviewer is an author and environmental activist

EX-LIBRIS“People are trying tosell climate change asa business opportunity”Hailing from the Eastern Goa and Maharashtra – are climate development – that we are just not part of India, Amitav refugees from the East. Because of the paying attention to what is happen- Ghosh has had numer- historic drought in Bundelkhand, ing around us. Why is it so hard for ous encounters with Delhi’s flyovers are filled with refu- people to think about climate natural disasters. The gees from Bundelkhand. Delhi’s infra- change? I am from the East, we areseverity of it, however, hit home when structure is already strained; how will accustomed to seeing natural disas-he was penning his sixth novel The it sustain thousands of these people? ters on a great scale…sensitised to itHungry Tide set in the Sundarbans. As a nation, we are not prepared for to some degree. I have seen whatThe award-winning writer’s latest non- the impact of climate change; the Hurricane Sandy did to New York.fiction book, The Great Derangement: world is also not prepared. We think Once you see that, you can’t helpClimate Change and the Unthinkable, of climate change only in terms of but ask yourself what about Indianexposes the scale and repercussions of natural impacts, but we will have to cities… are they at all prepared toclimate change. He talks at length to speak about the political and demo- deal with such situations? Mumbai,Sarika Malhotra about the vulnerabil- graphic impacts, too. for instance, is extremely vulnera-ity of the Asian region, its under-pre- ble...cyclonic activity is increasing inparedness to deal with climate change, This huge disruption that is hap- the Arabian Sea because of climateand the need to bring these issues to the pening in Europe is through the mi- change. Unprecedented things arefore. Edited excerpts: gration – the whole destabilisation happening. and unravelling of Syria started withWhy climate change? the drought in 2008 and has pro- You talk about capitalism as a foundly destabilised not just the driver of climate change. Is thereI have been concerned about climate Middle-East but also Europe. The an option to strike a balance?change from a long time. It started ramifications of these are going towith my book The Hungry Tide set in keep spreading outwards. What we Capitalism has many versions.the Sundarbans, which is extremely are seeing is a process of global desta- Japanese and Korean capitalism wasvulnerable to climate change, and bilisation coming about. We shouldwas very badly affected by cyclone really try and create global systems toAila. Areas that were producing rice, deal with disruptions that will arrivevegetables were completely inun- because of climate change.dated by water. It takes 15-20 yearsto rehabilitate agricultural land that How significant will these dis-is invaded by salt water. We talk ruptions be?about climate change as if it is onlyabout natural changes. These Life-threatening, to say the least.changes, in fact, profoundly impact The Pentagon has done a study thatthe way human beings live. Since the predicts by 2030 state institutions incyclone, there has been a huge mi- South Asia will be close to collaps-gration from the Sundarbans – many ing. Very few state institutions willwomen have had to join the sex trade be able to cope with disruptions ofin Kolkata. Most workers in the West this scale. Unfortunately, we havecoast of India – Karnataka, Kerala, become so used to growth numbers – politicians giving us good news of106 BUSINESS TODAY August 28 2016

VIVAN MEHRA cloud of aerosols that has appeared over the subcontinent and it isfounded on the idea that there are We should try spreading across the Arabian Sea.very few resources, but lots of la- and create global You may think it is just pollution; butbour… hence it was labour intensive systems to deal with it is interfering with the monsoons.and not resource intensive. Japanese disruptions that will As an economy, the Indian subconti-capitalism was not based on intensi- arrive because of nent is critically dependent on thefying consumerism… it was more climate change monsoons. And the monsoons areabout providing employment and changing because of climate change.welfare to people. It was very different around the world as the only answer. We are looking at grim long-termfrom American capitalism. Similarly, However, we have to understand projections.Swiss capitalism is very different, in- that it is not the only answer andvolving use of resources wisely, while cannot be for places such as India and So we have to look at otherDutch capitalism is always address- China. We are much closer to East models of capitalism…the Swiss,ing the question of resource use. Asia, have enormous resource con- German, Japanese, Dutch – how to straints and burden of population; we allow people to have a good life, These questions of resource use should be approaching this from a within smaller spaces and less-dam-have not been addressed essentially different direction. aging environmental impacts. Whatin places where people have gone and is really worrisome is that ours wasconquered huge resource-rich conti- In India, it is simply not viable for a culture, until recently, whichnents, and created this predatory every family to have two cars. One of hated wastage and debt. But now wemodel of capitalism – basically the the strangest things to have hap- are jammed with emails and calls ofAnglo-American model of capitalism, pened in the last 20 years is this huge people who are trying sell a creditwhich is very resource-intensive and card or give a loan…pushing loansextractive. It is now collapsing. This on people who do not know better.model of capitalism after the 1990s Anyone can see that this is not agot enshrined as the Washington sustainable model.Consensus and was sold to people What is your view on the corpora- tisation of climate change? It is happening all around us. People are trying to sell climate change as a business opportunity. And this is es- sentially what the Paris Agreement is all about. It’s bringing the new liberal approach to climate change. A large part of the agreement was written by large corporations and billionaires across the globe. There is very little concern for the poor; there is no con- cern for economic justice; the biggest polluters of the world are no longer held responsible for the pollution. The Paris Agreement was a huge depar- ture from the past and people don’t seem to recognise that. It’s an agree- ment similar to the big trade agree- ments. Look at the case of scarcity of water: the technocrat will advise to build a dam, use desalinated water, but there is a much easier answer available rather than spending end- lessly on building infrastructure.~ @sarikamalhotra2 August 28 2016 BUSINESS TODAY 107









VIVAN MEHRA PEOPLEBUSINESS Reforms Back on Track ARUN JAITLEY After over a decade of slow Union Finance Minister progress, hurdles and numerous efforts of different Union Finance Nimesh Calls It a Day Ministers, Arun Jaitley takes the credit for unveiling one of the Marquee investment banker Nimesh Kampani has biggest economic reforms – Goods decided to hang up his boots and give the charge of JM and Services Tax (GST) – since Financial Group to his 39-year-old son Vishal Kampani Independence. “This is one of the after three decades of deal making. Nimesh, founder- most significant tax reforms in chairman of the group launched in 1973, announced Indian history,” Jaitley said while his retirement from the post of Chairman & MD with introducing the GST Bill, officially effect from September 30 but will continue as non- known as The Constitution (One executive chairman of the company. Nimesh, who turns Hundred and Twenty-Second 70 in September, has a long list of accomplishments Amendment) Bill, 2014, in the including launching TCS and Bharti’s IPO, government’s Rajya Sabha. GST will make the stake sale in ONGC, L&T cement business sale to Aditya country a uniform economic Birla Group, BPL-Essar deal, Bajaj Auto demerger, market with a single tax rate division of Reliance Industries between Ambani brothers subsuming all the complicated and so on. Commenting on his retirement, Nimesh said indirect taxes. The uniform tax in a statement: “I believe it is important for all businesses across the country is not only likely to implement a proper succession plan and I am to boost the economy but also the committed to follow the same.” Modi government’s reform agenda. 112 BUSINESS TODAY August 28 2016 NIMESH KAMPANI, Chairman & MD, JM Financial

SUBIR HALDER Change of Guard TRAVIS KALANICK CEO & Co-founder, Uber After departure of veteran Deveshwar Dutt next February, ITC plans to pass on the baton to another Battleground India veteran Sanjiv Puri. In a filing to the stock exchanges, the cigarettes-to-FMCG major said that the Board of Another American company has quit China. After Directors has appointed Puri as chief operating officer of Google, Facebook and Amazon, it’s the turn of Uber the company with immediate effect. An IIT alumnus, to follow suit. The San Francisco-based ride-hailing Puri, 73, joined the Kolkata-based company in 1986 app announced a $35-billion merger deal with and has handled a wide range of responsibilities ranging China’s Didi Chuxing to end its difficult journey in from leadership positions to day-to-day operations. ITC’s the country. After losing China, like Amazon, Uber is current CEO, Deveshwar, is retiring in February next now likely to shift its focus to the next important year after leading the company for over two decades. market – India, a billion-plus market it cannot afford to lose. On his trip to India last year, Uber CEO Travis SANJIV PURI Kalanick had announced plans to invest $1billion in COO, ITC the country and its loss in China could mean that the company may go all out to win the battle against Indian rival Ola. Adding Heft NILOTPAL BARUAH E-commerce major Flipkart pipped competitors like Snapdeal and Future Retail to acquire fashion portal Jabong in one of the biggest merger deals in Indian e-commerce industry. It’s a cash deal of $70 million (approximately `471 crore). This is Flipkart’s second biggest acquisition after it bought another fashion website Myntra two years ago, which was the biggest e-commerce deal at the time. Speaking on the Jabong acquisition, Flipkart CEO Binny Bansal, in a letter to employees, said: “I am happy to inform that our group company, Myntra, today acquired Jabong from Global Fashion Group, thus creating India’s biggest fashion shopping destination. Myntra and Jabong are all set to define the next generation of online shopping offering the best of brands to Indian consumers.” BINNY BANSAL, CEO, Flipkart COMPILED BY SATYAM SHARMA August 28 2016 BUSINESS TODAY 113

LEADERSPEAK Julia Stiglitz“24 per cent oflearners in Indiaare women”Of the 20 million users of its massive open online courses (MOOCs), 1.6 million are Indians. Sonal Khetarpal talks toJulia Stiglitz, VP, Coursera, the world’s largest online learning provider. Excerpts:In the MOOCs space, how does the Indian market differ sidelines of their full-time job or college. Also, for ease of use,from more developed nations such as the US? it is important that all the videos are mobile-friendly so usersThe average age of people taking the courses in India is can access the content from their phones on the go.younger, unlike in the US. We have a lot of learners whohave just finished college and are in the early stages of their How keen are women learners to pursuecareer. Another difference is that Indians take up courses MOOCs in India?that help them with their career, whereas in the US people 24 per cent of learners in India are women, and that num-use online learning platforms for enrichment courses on ber can really grow. What is interesting is that the top threepoetry, culture and such. Based on this, we have started courses women take are Computer Science, Business andpartnering with corporates such as Axis Bank and IBM to Data Science – no different from the top course categories in“It makes sense forhelp their employees with skill building and creating a cul- India. In fact, women feel a sudden rise in their confidenceture of learning in the workplace. after taking MOOCS. One of the learners Gauri Jha, a mother a lot of enterprises of two kids, turned to Coursera to overcome boredom andWhat are the changes brought in to the course inactivity. She took a few courses such as ‘Learning How tomodules over time? to operate in Learn’ and ‘How to Write a Scientific Paper’, and was ablehybrid mode”Earlier, there were modules that were 60 weeks long; now to submit a research paper related to Bioinformatics to anthe duration of courses has been reduced to four weeks. This IEEE (Institute of Electrical and Electronics Engineers) recog-change is necessary as people pursue online courses on the nised journal. She now aspires to do a PhD. ~114 Vol. 25, No. 17, for the fortnight August 15-28, 2016. Released on August 15, 2016. Totalnumberofpages116(includingcover)

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MAKES YOU RICHER August 2016 CONTENTS www.moneytoday.in COVER STORY Editor-in-Chief: Aroon Purie 2 Group Chief Executive Officer: Ashish Bagga PLAY THE RALLY Group Editorial Director: Raj Chengappa A guide on how you can make money Editor: Prosenjit Datta in the current market Senior Editor: Mahesh Jagota Senior Associate Editor: Teena Jain Kaushal Principal Correspondent: Jinsy Mathew Trainee Reporter: Priyadarshini Maji ART Assistant Creative Editor: Safia ZahidAssociate Art Directors: Amit Sharma, Ajay Thakuri Assistant Art Director: Rajkumar Wahi Chief Designers: Vikas Gupta, Raj Verma Senior Designers: Devender Singh Rawat, Mohammed Shahid PRODUCTION Chief of Production: Harish Aggarwal Senior Production Coordinators: Narendra Singh, Rajesh Verma Publishing Director: Manoj Sharma Associate Publisher (Impact): Anil Fernandes Impact Team Senior General Manager: Jitendra Lad (West) General Managers: Upendra Singh (Bangalore), Velu Balasubramaniam (Chennai)Deputy General Manager: Kaushiky Chakraborty (East)Volume 11, Number 8, August 2016 Cover by Ajay Thakuri 14 THE RIGHT BALANCE Balanced funds have done exceptionally well over theCopyright Living Media India Ltd. All rights reserved throughout years. Here’s how you can benefit from themthe world. Reproduction in any manner is prohibited. Published &Printed by Ashish Bagga on behalf of Living Media India Ltd. Printed 18 THINGS TO LEARN ABOUT EDUCATION LOANat Thomson Press India Ltd., 18-35, Milestone, Delhi-Mathura Road, Education loan gives you the opportunity to pursue your dream education,Faridabad-121007, (Haryana). Published at K-9, Connaught Circus, New but do a thorough due diligence on course, college and return on investmentDelhi - 110 001. Money Today does not take responsibility for returning before going for itunsolicited publication material. 20 5 TIPS ON BUYING GOLD JEWELLERY The yellow metal has been a safe haven for most Indian families, but many have fallen victim due to fraud. It’s time to take control of why you pay for ontrol of what you pay for. 24 FINDING MANGOES AMONG LEMONS IN THE IPO MARKET Among the ongoing IPO frenzy, here is a guide to help you pick the right one. 28 SIP BY SIP We bring you five advantages of investing through systematic investment plans. 30 SWEET SPOT SURESH SADAGOPAN, Certified Financial Planner, analyses the finances of a family and suggests the way forward 1MONEY TODAY August 2016

COVER STORY | STOCK MARKETSPLAY THERALLYA guide on how you can makemoney in the current market.BY JINSY MATHEWINDIA ON TOP 8 ILLUSTRATIONS BY RAJ VERMAThe Sensex has been the best performer in 2016 7.672.95 1.25 1.19Nasdaq FTSE Straits Times BSE Sensex Hang Seng -4.67 -4.36 CAC DAX Returns (in%) are from December 31, 2015, to July 28, 2016; Source: Bloomberg -13.43 Nikkei -15.40 Shanghai Composite

Indian equity markets have been in a sweet mean the joyride is likely to continue. However, in the spot this year. The BSE Sensex has risen 8 event of any extreme negative global event, India won’t per cent and the Nifty 9 per cent on a year- be spared and foreign institutional investors will take to-date basis. Mid-cap and small-cap indices out money, impacting stock markets, they say. They list are trading near their 52-week highs. Several five factors that will help the country’s stock markets pockets in the mid- and small-cap space have touch new highs provided the global economy does not returned more than 20 per cent over the peri- turn very bad from here. od. “Markets are riding the wave of optimism, thanks to good monsoon and signs of recov- FII INFLOWS ery in India Inc’s earnings. Favourable cuesfrom the latest meeting over the GST Bill between the One of the major features of the current rally is the faithfinance minister and his state counterparts have also in India shown by foreign investors. In July, foreign port-helped,” says Jayant Manglik, President, Retail Distri- folio investors, or FPIs, pumped in Rs 10,126 crore intobution, Religare Securities. equities, the highest in four months. Similarly, the debt market got Rs 6,862 crore, the highest monthly inflow Now, the question everyone is asking is, will this this calendar year. Going forward, the trend is likely torally continue? Market experts say improving domestic continue, thanks to the ‘risk on’ mood in global markets.trends, especially good gross domestic product, or GDP, “With liquidity conditions improving across the world,growth in a world where most economies are struggling, more money is likely to find its way to emerging mar- 3MONEY TODAY August 2016

COVER STORY | STOCK MARKETSkets, especially India,” says Sunil Sharma, CIO, Sanc- GOOD MONSOONtum Wealth Management. A few days ago, JapanesePrime Minister Shinzo Abe said his government would After a slow start in June, monsoon picked up pace inunveil a stimulus package worth over $265 billion (28 July. The rainfall deficit is now almost zero. Spatial dis-trillion yen) to boost the country’s economic growth. tribution of rainfall, too, has been good, with all regionsMarket observers say the European Central Bank will (barring East) receiving normal rain. As a result, by thetake similar measures, most likely in its next meeting. third week of July, nearly 65 per cent kharif sowing hadSome part of this liquidity glut is likely to find its way been completed. The area under pulses is up 40 per centto India, helping stocks here. Also, the fear that the US year-on-year. This will help the government control highwill increase rates — which will make foreign investors prices of pulses, a major cause for high consumer pricetake out money from emerging markets and dry up li- inflation or CPI. According to Kapil Gupta and Prateekquidity — has waned due to economic uncertainty after Parekh of Edelweiss, this augurs well, not only for farmBritain voted to leave the European Union. output, but also for inflation in specific items such as pulses, whose prices have been rising by 25 per cent STOCK RECOMMENDATIONS year-on-year for the past 13 months. By Anand Rathi Institutional Research IMPROVED CONSUMPTION 1) Sanghvi Movers A good monsoon will lead to a bumper harvest and put more money in the hands of those who live in rural (CMP: 280; Target Price: 489) India. According to a Bank of America-Merrill Lynch report, pick-up in rural demand is expected to lead to * With healthy utilisation levels of 82 per cent, consumption recovery in the second half of the year. An- revenue and profit after tax (PAT) are expected to other aspect that is expected to push up consumption grow at 15 per cent and 18 per cent, respectively, is the expected bounty that nearly one crore govern- between 20015/16 and 2017/18. ment employees and pensioners will receive after the * With contribution of the wind power business implementation of the 7th Pay Commission. These two rising from 36 per cent in 2013/14 to 61 per cent factors, leading to higher incomes, are expected to trig- now, the company has planned a capex of Rs 1,300 ger an increase in spending on white goods and auto- crore. With orders fully booked, we expect good mobiles. In anticipation, several pockets in the markets growth going forward. have already started rising. * Attractive valuation of nine times 2016/17 earnings per share (EPS) of Rs 31 and seven tines 2) KEI Industries 2017/18 EPS of Rs 37.6 (CMP:118; Target Price: 135) * With aggressive brand building, strong volume growth, ongoing capacity expansion and strong order book, the company is likely to register 16 per cent revenue growth and 45 per cent PAT growth between 2015/16 and 2017/18. * Has received orders in EPC (engineering, procurement and construction) space from various utilities; the ongoing expansion at its Chopanki plant is expected to be operational by November 2016 * Plan to repay debt and low planned capex are likely to help it improve the debt-equity ratio. It is trading at a price to earnings (PE) ratio of 8.2 times 2017/18 earnings4 MONEY TODAY August 2016



COVER STORY | STOCK MARKETSGOODS AND SERVICES TAX 4) Ahluwalia Contracts India LtdThe much-delayed Goods and Services Tax (GST) is fi- (CMP 292; Target Price 360)nally inching towards becoming a reality. “The recentstock market rally has been triggered by hope that the * The company is aiming at fresh orders of RsGST will come into effect from April 2017. It holds prom- 2,000 crore in the current financial year. Its current order book is 3.6 times trailing 12 months revenues. It is seeing less competitive intensity and huge order inflows from re-development projects in the NCR. * Revenue rose 22.1 per cent year-on-year in the fourth quarter of 2016/17 and 17.9 per cent in 2015/16. The management is expecting a significant pick-up in execution in 2016/17 and 20- 25 per cent revenue growth in the next two years backed by orders from the public sector. * The EBITDA margin rose 490 basis points in the fourth quarter to 13.9 per cent. EBITDA margins likely to be above 13 per cent over the next two years. Net margin in the fourth quarter came in at 6.9 per cent (highest since 2006/07). * Revenue expected to grow at 28 per cent and PAT at 37 per cent between 2016/17 and 2017/18, bolstered by strong order book and improved execution.3) KNR CONSTRUCTION ise for a plethora of sectors,” says A.K. Prabhakar, Head of Research, IDBI Capital Markets. It will give a big boost(CMP 586; Target Price 772) to the economy and the market. The new tax will effec- tively subsume a plethora of indirect taxes such as value* Execution picking up pace. The order book on added tax , service tax, excise duty and octroi. This willMarch 31 was Rs 3,400 crore (3.9 times trailing lead to cost savings and make the economy more effi-12 months revenues). It has submitted bids for cient, increasing GDP. “The GST will provide a push toprojects worth Rs 600 crore likely to be awarded earnings in the long term and lead to re-rating of valu-in the next two months. ations in the near term,” says Vinod Nair, Head of Re- search, Geojit BNP Paribas.* It posted 15 per cent revenue growth in the 4thquarter of 2015/16 due to better execution. The RATE CUP HOPESEBITDA margin came at 14.8 per cent (13.8 percent a year ago). Revenues expected to grow at Good monsoon and lower prices of food (major cause30 per cent a year between 2015/16 and 2017/18 for high CPI) mean the Reserve Bank of India may cutwith margins of around 15 per cent. interest rates in the coming months. “However, the risk to this assumption is excess rainfall damaging crops,”* On the back of strong operating performance, says Prabhakar.adjusted PAT rose 39 per cent in the fourthquarter. CORPORATE EARNINGS* Its conservative tax-accounting policy played This is one factor that has been disappointing marketout in 2015/16, with total tax reversal of Rs 41.1 players for a long time now. However, since the last quar-crore generating a high degree of profitability. ter, there have been encouraging signs of improvementThe current order book is eligible for Sec.80-IA in earnings of companies, barring in banking and metalbenefits; the company will continue to avail of sectors. “There is a mismatch between earnings andsuch tax benefits till 2017/18. stock prices in several pockets. In the longer term, share6 MONEY TODAY August 2016



COVER STORY | STOCK MARKETSprices will have to be driven by earnings and the pace 5) Ashok Leylandat which they grow,” says Mahesh Patil, Co-Chief Invest-ment Officer (Equities), Birla Sun Life Mutual Fund. (CMP: 91.60 Target price: 124) Sanjay Dongre, EVP and Senior Fund Manager of * The commercial vehicle industry is expected toUTI Mutual Fund, says the worst of earnings seems to continue its strong run in 2016/17.be over. “The March quarter results saw more compa-nies beating than missing estimates. 2016/17 & 2017/18 * With revival of the rural economy, the lightearnings upgrade cycle seems to have started, especially commercial vehicle segment should also do well .in domestic cyclical sectors,” he says. He projects thatearnings growth is expected to be 15 per cent-plus in * 15 per cent volume growth expected. WithFY17 due to higher government spending, lower interest stable margins, earnings growth is likelyrates and soft raw material prices, all of which will lead to be good.to improvement in margins. * Trading at 16 times 2017/18 earnings.MARKETS EUPHORIA CMP is current market price; CMP and Target Price in RsMid-cap and small-cap stocks have been on fire, outpac-ing benchmark indices, over the past one year. Recently, at Kotak Mutual Fund, says, “While broader mid-capthe BSE Mid-cap Index crossed the 12,000-mark for the valuations appear expensive, the mid-cap and small-capfirst time. It is trading at an all-time high valuation, universe is very diverse. Headline valuations may notlast seen in January 2008, of 33 times 12-month price- represent the stock-specific opportunities available.”to-earnings (P/E) multiple. As a result, several market He further says, “Many companies have improved theirexperts recommended partial profit-booking on fears balance sheets and have significant operating leverage.the euphoria may end. Some experts say the rally was This, combined with improving demand environment,fuelled by increased participation by both retail and in- can lead to substantial profit growth in the coming years.stitutional investors hoping to find an emerging large- So, while valuation multiples may not expand materiallycap name early in the cycle. Pankaj Tibrewal, Senior VP from here on, earnings growth will drive returns.”& Equity Fund Manager who manages the mid-cap funds When asked if there is any pocket he would avoid8 MONEY TODAY August 2016



COVER STORY | STOCK MARKETSRECOMMENDED BY SAMCO edge, a scalable model, decent cash flows and account- ing profits. One must also check the quality of the man-1) Hindalco agement. And, finally, the most important point while in- vesting directly or through a mid/small-cap mutual fund(CMP: 136.65; Target Price: 160) is — have a long-term horizon. Mid-caps can be volatile in the short term but investments selected after proper* Prices of aluminium and other base metals are analysis can generate good returns in the long run.at a decade low. Too much pessimism often leads THEMES TO WATCH OUT FORto reversals. The company has been reportingsubdued numbers, which the market has already Experts say investors should focus on automobile, con-discounted. Hindalco is a classic contra bet. It is a sumer durables and financial services sectors. Stocklarge diversified player with efficient operations. plays around capex recovery, they say, will show mixedThe moment aluminium prices pick up, the stock will results. Though there has been some traction, con-deliver phenomenal returns. straints are likely to emerge as any sharp pick-up in private sector capex remains a distant dream. Jinesh2) Bajaj Finserve(CMP: 2,826.20; Target Price: 2,900)* Bajaj Finserve is the holding company for BajajFinance engaged in financing diversified consumerproducts. It primarily caters to the urban elite andmiddle class. While the Bajaj Finance stock has beenrerated a number of times, the holding company,Bajaj Finserve, in spite of having life and generalinsurance businesses too, has been languishing,which has created a big margin of safety. 3) M&M Fin Gopani, Fund Manager, Axis Mutual Fund, says, “The capex cycle is seeing initial signs of uptick led by gov- (CMP: 340.60; Target Price: 380) ernment spending in sectors such as roads and rail- ways. However, private sector capex is likely to remain * Two years of drought had hit the purchasing muted for some more time as companies struggle with high debt, low capacity utilisation and weak demand. power of people in rural India. In the intervening With earnings expected to turn around, we expect that period, M&M Finance took a big hit on profitability. the corporate capex can revive in the latter part of the The stock oscillated between Rs 350 and Rs 200 cycle in one-two years’ time. In this context, govern- for over two years, making it the cheapest in the ment spending on infrastructure will be crucial to kick- category in terms of the price-to-book value in start economic growth.” the past five years. Since this year’s monsoon is expected to be normal, the fortunes of company will The logistics sector, especially companies in road turn around. transport, is seen as a major beneficiary of the GST as fast movement of goods will be the key to the success CMP is current market price; CMP and Target Price in Rs of the new regime. The other gainers will be media and entertainment sectors as their effective tax rates maydue to stretched valuations, he said at a broader level, fall. Amara Raja Batteries, Greenply Industries andvaluations of some NBFCs/microfinance companies Symphony will also benefit, according to IDBI Capital.along with some commodities/metal companies appearstretched. In the latter, he says, the current prices are MARKET OUTLOOKnot factoring in the global overcapacity in many of thesecommodities. Patil of Birla Sun Life says it will not be surprising to see So, if one is tempted to take buy at current levels,it is best to ensure that the company has a competitive10 MONEY TODAY August 2016



COVER STORY | STOCK MARKETSRECOMMENDED BY RELIGARE SECURITIES It has diversified offerings across verticals and geographies. Going ahead, recovery inJamna Auto (CMP: 176; Target Price 234) demand will boost revenue; higher exports to improve margins.The company commands a dominant share in theIndian leaf spring business. The implementation Bajaj Corp (CMP: 402; Target Price: 500)of the GST will act as a catalyst for growth in thereplacement market. The company has been continuously evaluating inorganic acquisition opportunities. Strong brandGreenply Industries and distribution network bodes well in wake of the expected demand revival.(CMP: 254; Target Price: 322) Atul Auto (CMP 473; Target Price: 580)It has a strong presence across markets and anasset-light model. Passage of GST, revival in It has been consistently improving its market share.housing construction and greenfield expansion The launch of the new petrol vehicle will furtherwill drive growth. enhance its presence in domestic and export markets.Uniply Industries Century Plywoods(CMP 170; Target Price: 214) (CMP: 233; Target Price: 271)It is coming out of the woods with change inmanagement and acquisition of Euro Décor’s It is India’s largest plywood player with excellentbusiness. Revival in housing construction, passage brand franchise and distribution network.of the GST Bill and entry in newer geographies are Backward integration, revival in housingexpected to be growth catalysts. construction and passage of the GST will benefit the company.Garware Wall Ropes CMP is current market price; CMP and Target Price in Rs(CMP 446; Target Price: 560)equities face headwinds in the near term but the mid- and ings led by global liquidity, reforms like GST & Make inlong-term outlook remains robust. Any steep market cor- India, and improvement in the domestic market due torection can be an opportunity to buy, he says. The fund increase in incomes,” says Nair of Geojit BNP Paribas.house is underweight on IT due to moderation of the He says improvement in earnings is a must for the mar-growth rate and telecom due to competitive intensity and ket outlook to improve significantly from current levels.higher capex requirements. Banks, NBFCs, cement and Their best and worst case scenario for the Sensex areselect downstream oil companies are his favourites. 30,500 and 24,800, respectively. Sector-wise, we are posi- tive on banks, auto, infra and chemicals, he says. Gopani of Axis Mutual Fund says valuations arebroadly reasonable. The Indian economy is going No analyst spoken to said the upmove will be a straightthrough a cyclical upturn and growth should get strong- line heading north. Most say that in case of a global ac-er over the next couple of years, he says. What will make cident, a risk-off action is bound to happen, which canIndia attractive vis-à-vis other emerging markets are seriously dent the gains made thus far. However, as longmacro drivers such as strong GDP growth, twin defi- as liquidity prevails, India remains a preferred market.cits under control, favourable commodity cycle, benign As Sharma of Sanctum Wealth Management puts it: “In-inflation and the government’s focus on reforms. Over dia’s hour on the global macro stage has arrived. Rupeethe medium term, earnings should start reflecting the is strong, bonds and equities are rallying. Global andimprovement in the growth environment. “Any correc- domestic investors have no choice but to take notice.”~tion should be taken as an opportunity for the long termsince there are chances of further improvement in earn- @Jinsymathew12 MONEY TODAY August 2016



MUTUAL FUNDS | BALANCED FUNDS The Right Balance Balanced funds have done exceptionally well over the years. Here’s how you can benefit from them. BY TANVI VARMA14 MONEY TODAY August 2016

H ad you invested Rs they choose. “We avoid high-risk eq- son takes by investing in pure equity 1 lakh in a balanced uities in the balanced fund as it will funds is relatively higher in the ab- fund in 2011, it would negate the promise of lower volatil- sence of the cushion provided by the have grown to Rs 1.76 ity,” says Anand Radhakrishnan, CIO, debt part of the portfolio. lakh today. Balanced Franklin Equity, Franklin Templeton funds have, on aver- Investments – India. Franklin India The outperformance of bal- age, returned 12 per Balanced Fund has returned 15 per anced funds can be attributed to the cent a year over the cent a year over the past five years fact that both the underlying assetpast five years (July 2011 to July and 23 per cent over the past three classes have done well of late. The2016), much more than the 8 per cent years. “The fund’s equity allocation equity component saw a major up-returns given by the BSE Sensex and has gone into a diversified portfolio swing with stock markets doing wellthe 10 per cent given by large-cap of large-, mid- and small-cap stocks. after a lag, while the debt componentfunds. The top performing balanced The fund manager also uses a macro benefited from a fall in interest rates.funds, in fact, returned more than 15 overlay to align sectoral exposure in For instance, Birla Sun Life Balancedper cent a year during the period (see line with economic growth outlook,” Fund 95 has been able to maintainTop Balanced Funds). says Radhakrishnan. The portfolio consistency in returns due to strong is tilted towards financials with 20 stock selection process, disciplined Tata Balanced Fund has been the per cent exposure followed by auto- profit-booking approach and flexibletop performer. It has returned 16 per mobiles at 7 per cent and energy at 6 equity exposure. The fixed incomecent over the past five years and 17 per cent. The top holdings are HDFC allocation is also managed actively,per cent over the past 10 years. While Bank, Axis Bank, Infosys, Indusind in line with the outlook on interestmaintaining 70-75 per cent allocation Bank and Yes Bank. The average eq- rates. The fund manager generallyto equities, which provide the alpha, uity allocation has been about 68 per invests the debt portion in a portfoliothe fund focuses on optimising debt cent over the last few years. comprising government securitiesreturns while lowering volatility by and corporate bonds with high creditfocusing on quality papers such as CUSHION OF DEBT ratings and high secondary market li-gilts and highly-rated corporate pa- quidity. The fund has been among theper. The focus is on lower credit risk Pure equity funds like large-cap, mid- longest standing balanced funds withand duration management. Its top cap or multi-cap funds are mandated a track record of more than 20 yearsholdings are capped at around 4 per to be fully invested into equities at and has been consistently beating itscent of assets and that too in stocks most times. Hence, the risk a per- benchmark index.like HDFC Bank, Infosys and YesBank, to name a few. The top five sec- Category Performancetors in the portfolio are banks, phar-maceuticals, software, consumer For the past five years, balanced funds (hybrid equity-oriented funds) have returnednon-durables and cement. The fundalso holds some mid-cap companies 12 per cent, outperforming the Sensex as well as the large-cap fundslike Shree Cement, whose stock pricehas risen from Rs 11,000 to Rs 16,000 FUNDS 1-YEAR 3 YEARS 5 YEARS 10 YEARSin the past one year. Equity: Large Cap 2.32 16.84 10.34 11.74MAINTAINING ALPHA Equity: Multi Cap 4.16 22.46 12.9 14.33Although the returns given by bal-anced funds may not seem very high Equity: Mid Cap 5.32 31.67 17.51 16.44at first glance, they stand out whencompared to what other fund cat- Equity: Small Cap 10.46 39.02 20.45 16.9egories have given. This when theyinvest only 65-70 per cent money in Equity: Tax Planning 4.24 23.51 13.63 13.42equities. The rest goes into debt andreduces risk. This doesn’t mean they Equity: International 5.92 4.21 3.66 5.44take undue risks with the stocks that Hybrid: Equity-oriented 5.7 18.38 11.88 12.18 Debt: Income 9.92 9.69 8.88 7.92 Gold: Funds 22.03 3.17 4.74 -- BSE Sensex -0.01 12.36 8.28 10.43 Figures show returns in per cent; Data as on Jul 25, 2016; Source: valueresearchonline.com 15MONEY TODAY August 2016

MUTUAL FUNDS | BALANCED FUNDSDIVERSIFICATION is undervalued or overvalued. A P/ tween 30 per cent and 80 per cent. BV lower than the fair value range The number is decided on the basisAccording to Sankaran Naren, CIO triggers an increase in equity levels of an in-house dynamic asset alloca-Equity, ICICI Prudential AMC, bal- and vice versa. “The conservative tion model. The fund has returnedanced funds are a good way to re- nature of investors is kept in mind 14 per cent a year in the past fiveduce volatility and earn reasonable while constructing the portfolio,” years and 18 per cent in the lastrisk-adjusted returns. This is be- says Naren. The fund does not take three years. “The fund follows thecause of pre-determined allocation aggressive calls on any leveraged philosophy of buying low and sellingtowards debt and equity, offering sector or companies and avoid high to generate returns with lowerthe benefits of both growth though companies with high valuations. volatility. It also ensures tax efficien-equity as well as stability through Majority of the portfolio comprises cy with equity taxation,” says Naren.debt. Further, with these funds, you large-cap companies that dominateneedn’t worry about selling when the Sensex such as Coal India, Cip- HOW TO CHOOSE A WINNERstock markets go up or buying when la, Reliance Industries and Bhartithey go down, as the fund manager Airtel. The three sectors with the There are numerous funds in thekeeps changing the allocations on most weights are energy, financial category, making it difficult tohis own depending on the market and healthcare. The rebalancing of choose the best one. So, how canconditions. These funds have to the equity portion takes place on a one go about it? First, it may be wisemaintain their allocation under all weekly basis, which shows the fund to look at the returns of the fund incircumstances. Hence, the automat- is managed actively like a pure eq- question. Look for consistency inic re-balancing limits your risk in uity fund. The fund has been among performance over longer tenuresthe fund. ICICI Prudential Balanced the top five performing funds over like three, five and 10 years.Fund, for instance, maintains at the last five years by returning 15.5least 65 per cent and maximum 80 per cent. Over the past three years, Choose a fund house with aper cent exposure to equities. The it has given returns of 22 per cent. strong parentage. See who theexact number is determined using promoter is and who is managingan in-house Price to Book Value (P/ There is also a different breed of the fund. Choose funds that offer aBV) model in which current market balanced funds like ICICI Prudential better risk-return trade-off. A goodlevels are compared to the fair value Balanced Advantage Fund in which mutual fund is one that gives betterrange to determine if the market the equity allocation could range be- returns than others for the same risk taken. Narrowing your searchTop Balanced Funds based on some of these parameters will give you a few winners (See TopThe best performing balanced funds have returned Balanced Funds).15 per cent-plus over the past five years ARE THEY FOR YOU?FUND ONE THREE FIVE TEN Markets go through cycles and only YEAR YEARS YEARS YEARS a well-crafted financial plan can help you weather this volatility overTata Balanced Fund - Regular Plan 4.95 23.59 16.1 16.63 the long term.L&T India Prudence Fund 7.33 23.39 15.51 - “Research has shown that the probability of attaining financialICICI Prudential Balanced Fund 7.53 22.24 15.46 13.73 goals is much higher by following this approach rather than by try-SBI Magnum Balanced Fund 6.86 22.38 15.36 13.95 ing to juggle around investments and timing market cycles,” saysHDFC Balanced Fund 8.29 25.08 14.87 16.36 Radhakrishnan. A balanced fund is ideal for you if you are looking forFranklin India Balanced Fund 6.81 22.29 14.74 14.42 an asset allocation product or are new to the world of equities.~Birla Sun Life Balanced '95 Fund 8.87 22.96 14.49 16.33 @tanvivarmaHDFC Childrens Gift Fund - Investment Plan 6.94 21.84 14.49 15.89ICICI Prudential Balanced Advantage Fund 7.69 18.55 13.99 -Reliance Regular Savings Fund 7.39 22.21 13.99 14.87- Balanced Option Figures show returns in per cent; Data as on Jul 25, 2016; Source: valueresearchonline.com16 MONEY TODAY August 2016



INVESTMENT | EDUCATION LOANThingsTo LearnAboutEducationLoanEducation loan givesyou the opportunityto pursue your dreameducation, but do athorough due diligenceon course, college andreturn on investmentbefore going for it.BY SARABJEET KAURN amrata Shukla, a students who face the same crisis of at return on money before selecting physiotherapy stu- loan repayment and there are many a course. dent from Delhi, re- reasons behind this crisis situation cently completed her including bad choice of college, poor One should opt for quality educa- four-year course but marks, unemployment crisis, useless tion. Asokan Arumugam, CEO, Reli- is now worried about degrees, etc. ance ARC says: “Students should repayment of a `4- be realistic about the job prospects. lakh education loan, In India, education loan default- They should not simply think that ifwhich she took four years ago to ers’ numbers have increased in the I don’t get a job the government willfund her studies. She is in desperate past four years and is one of the write it off and pay the loan. Educa-search of a job as repayment of loan causes of rise in banks’ NPAs. Banks tion is an investment like any otherwill start in few months. become the only source of money, if investment. It is always important to parents are unable to finance the do a thorough due diligence on the In India, there are a number of higher studies, but one should look course before taking loans.”18 MONEY TODAY August 2016

So, if you plan to take an educa- poor. There is no authenticated rating your name is in a defaulter list, yoution loan, here is a guide on how to and benchmark system where colleg- won’t get a job,” Arumugam said.manage it. es get validated (except for A grade colleges). Hence, beyond A category Not paying in time or defaultingBENEFITS OF EDUCATION LOAN colleges, it makes sense to do some can also lead to legal action. Puru industry-oriented courses along with Vashishta, Director, Deal4LoansFor a middle-class family, education traditional education to make you says: “On default in EMI payment,is an investment, and students be- more prepared in the job market. the credit score gets adversely af-come more serious about studying fected, thus making you ineligiblewhen they apply for loans. Education Do a fair valuation of the course for future loans. Also if the guaran-loan also provides tax benefit under before taking a loan. Consider the tor has put in place collaterals such80E of the Income Tax Act. return on investment before en- as fixed deposit or property for your rolling for a course. For example, education loan, then the particular Tanvir Alam, MD, Fincart says: Tanvir Alam states that if a student individual may not gain freehold“I know a lot of people who were ca- does BSc in computer science along rights on the collateral until the fullpable of becoming a good doctor or with online digital marketing certi- payment of the loan.”engineer but they end up their life as fication, the job will initially fetcha compounder or mechanic due to a pay of around `15,000 to `30,000 EXTEND THE TERMlack of resources, so education loanhelps to take decisions for better life Education Loan Interest Rates If you miss out on any EMI payment,and career.” you can request your lender to ex- BANKS INTEREST tend your loan repayment tenure Most of us take education loan RATE so that the monthly EMIs could befor quality education and good job. brought down to a level that you canSome also take loans as they don’t State Bank of India 9.45% - 13.05% afford. Moreover, if the student is notwant to put financial burden on able to complete the course withinthe family. So, if you are capable of United Bank of India 11.1% - 12.6% the scheduled time, he/she can availproving yourself and can repay on an extension of two years.time, then education loan is the best Central Bank of India 10.9% - 11.4%option to help you in getting a qual- RESTRUCTURE THE LOANity education. Repaying loans typi- Bank of Maharashtra 10.90%-12.3%cally happens in 3-10 years. It also Many lenders also allow students todepends upon the bank and course Canara Bank 11.15% - 11.65% pay just the simple interest or partialyou opted for. simple interest until he or she finds a Dena Bank 9.6% - 11.15% suitable job. They also give a chance There are many factors that to pre-close the loan by liquidatinglenders look at before giving a loan. Punjab National Bank 10.5% - 12% an investment. You should always“Lenders look at multiple param- ask your lender what relaxationseters which include but are not Axis Bank 15.00% - 17.50% one can get to make the repaymentlimited to academic background of process easier.the student, co-borrower, collateral HDFC Bank 10.00% - 14.75%security offered, course, college and CREDIT COUNSELLORSuniversity selected for higher edu- IDBI Bank 9.60% - 12.50%cation etc,” Co-Founder, MD & CEO Credit counsellors help and adviseof Credila Financial Services, Ajay Source: Bankbazaar.com you on how to go about your educa-Bohora, says. tion loan. “It’s important to approach per month. A loan of `4 lakh at 11 counsellors if you find difficulty in de-HOW GOOD IS THE COLLEGE? per cent rate with a repayment peri- ciding how much you should borrow od of three years will have an EMI of but beware of people who will act likeBefore taking a loan, it is very im- `13,095. So, if the candidate earns advisors but actually sell you the bun-portant to look at the job prospects only `15,000 then it will be a strug- dled product like loan with insuranceafter completion of course. A major gle for him to repay. policy,” says Alam of Fincart. ~issue with today’s education systemis that return on investment for vari- WHAT IF YOU MISS THE EMI? @kaursarabjeetous higher education courses is very If you don’t repay your education loan on time, the bank will put your name as a defaulter in the CIBIL list. “Sometimes, when you go for a job, they will check with CIBIL and if 19MONEY TODAY August 2016

INVESTMENT | GOLD 5 TIPS ON BUYING GOLD JEWELLERY The yellow metal has been a safe haven for most Indian families, but many have fallen victim due to fraud. It’s time to take control of what you pay for. BY JINSY MATHEW20 MONEY TODAY August 2016



INVESTMENT | GOLDAn India woman’s wardrobe without understanding that there At present, there are nearly 350 is not complete without a is no guarantee for what they are hallmarking centres and the details few pieces of gold jewel- paying for. On the other hand, there of all centres are available on the lery. More than the emo- have been instances in the past, es- BIS website. tional connect, gold has pecially in South India, where the always been an attractive hallmarking system was found to be THE YEARasset for uncertain times. However, misused by jewellery manufactur-more often than not, people are in ers in connivance with authorised Next comes the year in which thefor a rude shock at the time of sell- assaying centres. Nevertheless, fol- jewellery was hallmarked. The year,ing the asset – the 22-carat gold lowing regular inspections by BIS, in this case, is marked in the formjewellery you paid for may turn out such malpractices have reduced. of an alphabet. The series started into be 18 carat, or may even prove to 2000, or A. N indicates 2011, P indi-be junk. Such cases of fleecing have PURITY GRADE cates 2012, etc.long been prevalent in India. There-fore, with the intention to protect Purity of gold is designated through JEWELLER’S GUARANTEEcustomers, the central government carat or finesse. In any hallmarkedintroduced a hallmarking system to jewellery, the purity of gold is ex- The last in the series of signs andcertify the purity of gold. plicitly mentioned besides the BIS symbols is the jeweller’s or manu- mark. Therefore, it is imperative to facturer’s symbol. Every jeweller A hallmark consists of five com- check the number on the jewellery certified by the BIS has a logo ofponents – the Bureau of Indian (see Pure Numbers). his own and is embossed on the or-Standards (BIS) logo, fineness or naments. Says Prithviraj Kothari,caratage number, the logo of the HALLMARKING CENTRE Director of Indian Bullion and Jew-BIS-recognised Assay and Hall- ellers Association (IBJA): “Each ofmarking Centre that certified the The next in line is the hallmarking the above mentioned five elementsquality, identification mark of the centre’s logo. Each hallmarking should be present on each andBIS-certified jeweller, and the year centre is designated with a unique every piece of hallmarked jewellery.of manufacturing. So, the next time logo that is embossed on every piece Meanwhile, be aware that these areyou buy gold jewellery, check these of jewellery checked and verified for present in very tiny forms.” As a re-five things to ensure quality. purity. This is to ensure that the sult, one would need a magnifier in product can be traced back to the most instances to see the markings.BIS HALLMARK centre in case of any discrepancy. “When it comes to buying coins for investment, make sure they are inAccording to the BIS Act, a hall- PURE NUMBERS tamperproof packing with the fi-marking agency evaluates each and nesse mentioned on the coin,” heevery piece of gold jewellery submit- The numbers that would help you while adds.ted by the jeweller to authenticate buying goldif the metal content conforms to the LAST WORDnational and international stand- Gold Carat Finesseards of purity. Harshad Ajmera of Content Last but not the least is to remem-JJ Hallmarking Centre says BIS 24 999 ber to ask for a valid cash memo orcertification is provided only after (%) 23 958 invoice with details of every chargea series of tests. However, having 22 916 levied for the jewellery you buy.a BIS mark does not mean that the 100 21 875 Remember, in instances where ajewellery is of 22 carat. There are 95.8 18 750 complaint has to be raised, a validseveral other caratage for which the 91.6 17 708 bill is necessary. Without that pieceBIS mark is provided. 87.5 18 585 of document, authorities will not 75.0 09 375 entertain the complaint. Hence, It has been observed that orna- 70.8 no matter how trusted a jewelleryments not bearing the BIS hallmark 58.5 Source: Industry brand or a jeweller maybe, alwaysare sold at cheaper rates. Most in- 37.5 insist on a valid bill. ~dividuals lap up this price discrep-ancy and opt for the cheaper option @jinsymathew22 MONEY TODAY August 2016



INVESTING | TIPOsAVEL Finding Mangoes AmongLemons in the IPO MarketAmong the ongoing IPO frenzy, here is a guide to help you pick the right one. BY TRIPTI KEDIAP icking the right IPO improvement in market sentiment. A market starved of big IPOs (initial public offer- However, not every new issue is in the last several years has finally ing) in equity market worth your hard-earned money. garnered `5,727.81 crore through is never as easy as it this float route in the first three looks. Sophisticated Soft interest rates, improved cor- months of the current financial year. marketing and adver- porate earnings, the government’s This makes it a nine-year high. tising hides the risks promise on improving ease of doing that a smart investor business and efforts to uncomplicate But Prithvi Haldea, Chairman andcan check before investing. the taxation structure have all cre- Managing Director of Prime Database, ated a conducive investment climate says: “Two to three IPOs a month is Companies have of late made and perhaps improved retail inves- not a boom. The issue size of manya beeline to list on the bourses in tors’ confidence in equities once companies is also very small. So, therethe hope of making the most of the again. is still a lot of room for upside.”24 MONEY TODAY August 2016

INVESTING | IPOs A good indication of this up- through the IPO route. This will help In the tailwind, its often greed thatside is the number of issues in the you estimate whether your precious operates.pipeline. These include 16 small to money stands a chance to grow, andmedium issues worth `5,345 crore. if yes, then how soon! COMPARE IT TO LISTED PEERSSome nine larger ones, from ICICIPrudential Life Insurance and PNB DO FAIR PRICE VALUATION Pick up stocks with the same busi-Housing Finance, are still pending ness, look at their stock prices, andwith SEBI for approvals. It’s esti- A correctly-priced company will al- find their earnings ratio. This willmated that these would garner an- help you decide whether the com-other `13,414 crore, according to Liking the manage- pany going public deserves to tradePRIME Database. ment and its philos- on similar valuation multiples. The ophy is important. two most basic components for Even if you think that IPOs are a You don’t want to comparing could be the book valueroute to make quick money, you must be sailing under the and operating margins. For exam-be in the right lane. So, amid this fren- guidance of someone ple, L&T Infotech numbers couldzy and flurry of IPOs, how should the who is unsure of his be compared with that of TCS andretail investor play his cards? business or who is Wipro. Here are seven basic rules to not transparent FIND OUT HOW LONG WILLhelp you choose from the clutter. YOUR MONEY LAST ways have better chances of a fairDON’T GO BY HEARSAY listing. One method is book-built Is it a business where the company pricing where investors decide the needs fast funding? If it’s capital in-Tips and recommendations are cut-off price, which falls between tensive and the returns are slow, itgreat but you must be confident the floor price and the cap price. could mean that there would be anthat your money is going to make its IPOs in the initial phase of a bull run FPO, a follow-on public offer, too.way back into your wallet. So, web- are generally good due to the more They will be back to raise more capi-search the company for basic infor- cautious strategy adopted by un- tal. There might be a risk that theymation, read various media reports derwriters and merchant bankers. will not be able to raise the capitalabout it and pick up the narrow font and die. However, for PSUs in India,type black and white prospectus stake dilutions are done through thethat can put you to sleep. FPO route, and that’s not worrying.TRACK DOWN THE PLAYERS ALL THAT GLITTERS IS NOT GOLDLiking the management and theirphilosophy is important. You don’t Renowned broking firms or promot-want to be sailing under the guid- ers backing the float is no guaranteeance of someone who is unsure of that the IPO and your investmenthis business or who is not transpar- will be a success. One has to be cau-ent about his company’s history or tious as broking firms are executingfunds deployment in the future. Be the role of a salesman to retail in-wary of who is selling their stake vestors. Example: The RPower IPOtoo! Often private equity players had the backing of Enam Securi-or venture capitalists use the IPO ties and promoter Anil Ambani butroute to exit. it gave dismal returns on listing. In fact, even now, the stock is tradingKNOW HOW WILL YOUR at a 90 per cent discount to the list-MONEY BE USED ing price.If you give a loan to a friend you al- So, remember, don’t buy a stockways want to know why he or she only because it is being sold throughneeds it for. Similarly, you need to an IPO – do it because it’s a good in-know how is the management go- vestment.~ing to deploy the funds it is raising 25MONEY TODAY August 2016





INVESTMENT | MUTUAL FUND SIPs SIP ByRAJ VERMA We bring you five advantages of investing through systematic investment plans. BY PRIYADARSHINI MAJI E verybody wants a reward cial markets. SIPs or the good EMI, as fort towards achievement of a prede- but not risks that come they are called by many, help investors termined goal. However, maintaining while working towards avoid the risk of bad market timing, discipline in investing is easier said it. This is human nature. ensure disciplined investing, average than done if one decides to invest This is also the main rea- out costs, and help investors gain from lump-sum amounts. This is because son for the popularity of the power of compounding. We discuss some or the other expense will always systematic investment five reasons why SIP is the best way come up and distract from goals. plans, or SIPs, which to accumulate wealth in the long term. give investors the option of gaining Taking the SIP route is one way from market while reducing the risk of BRINGS DISCIPLINE to remain disciplined. SIPs allow one volatility that is inherent in all finan- to invest a fixed amount at regular in- Any investment needs a dedicated ef- tervals — daily, monthly or quarterly.28 MONEY TODAY August 2016

SIP markets, SIP is a godsend. By com- drawn during the SIP tenure or even mitting to regular investing, one can later (except in case of tax-saving reduce the risk of bad timing in en- funds, which have a lock-in period of tering or exiting the market. There is three years). The amount invested at always a chance that one stays out each interval can be increased or de- when the market is doing well or en- creased anytime. Though one has to ters when it is doing badly. SIP takes select a period for which one will in- care of all these worries. vest at the time of filling the form, SIPs do not have a fixed period. They can But is there a general rule that be stopped any time. Also, their ten- someone who is starting a mutual ure can be extended by just request- fund SIP for the first time can fol- ing the mutual fund company. “When- low? Yes, one can go by one’s age as ever there is a change in income and the risk appetite is high when a per- savings levels, one should review the son is young and falls as he grows amount committed to SIPs,” says Nav- older and has to fulfil more respon- lakhi. To get the full benefits of SIP, sibilities. Aditya Agarwal, CEO, Co- experts recommend that one should founder, Wealthy.in, says, “Scheme keep invested for as long as one can. selection and asset allocation should Also, keep in mind that gains from be different for people in different equity investments are tax-free only age groups. At a young age, more after one year of the investment. Oth- money should be going into equities, erwise, the gains attract short-term and gradually the percentage of debt capital gains tax of 15 per cent. should increase as one grows older.”Since in most cases, the amount is au- RUPEE COST AVERAGING BENEFITS OF COMPOUNDINGtomatically deducted from your bankaccount, this ensures regularity. “SIP This is one of the biggest reasons Financial planners say one mustensures that funds do not remain idle why SIPs can be so effective. As mar- start an SIP as soon as one can toin your bank account,” says Lovaii kets keep fluctuating, the amount gain from the effect of compounding.Navlakhi, Founder and CEO, Inter- invested will buy you fewer units Even a delay of a few years can makenational Money Matters. One can use when they are rising, while the a significant difference to the wealthSIPs to invest in a whole lot of instru- same investment will buy you more accumulated. In long-term invest-ments such as mutual funds, stocks, units if markets are down/falling. ments, one benefits immensely frombonds and even gold funds. This means the cost of acquisition the power of compounding as one per unit is averaged out over time. earns interest on the accumulatedTIMING THE MARKET This evens out the market’s ups and interest. “Compounding is linked to downs, especially if one has been in- the rate of return and the numberSIPs, say experts, are a stress-free vesting for long. However, in a bull of years. SIP is able to help you gainway of investing. For people who market, this approach is not likely to from compounding in a way that isdon’t know how to make sense of be of much use, as the cost of acqui- decoupled from market volatility,” sition will keep rising. One negative says Agarwal. Another benefit of SIP point of SIP is that the benefits of is that one does not have to invest cost averaging are greatly reduced a huge amount; one can start by in- if markets are not volatile, though in vesting as little as `500-1,000. reality this is rarely the case. To gain from all the above fac- FLEXIBILITY tors, one must make sure that a port- folio should have investment vehicles SIPs are usually for only open-ended that can give returns higher than the funds and one can take out the invest- inflation rate over long periods.~ ed amount anytime one wants. The amount can be fully or partially with- @PriyadarshiniM9 29MONEY TODAY August 2016

INVESTING | FINANCIAL PLANNING SHEKHAR GHOSH Sweet Spot Aasif and Hena have enough surplus to take care of future needs. All they have to do is tweak their investing strategy for meeting all goals, says SURESH SADAGOPAN, Certified Financial Planner30 MONEY TODAY August 2016

A asif, 36, is a research `5 lakh. The policy needs to be exam- into account the current assets and analyst with Escorts ined closely and surrendered if nec- investments along with the yearly Ltd. He currently lives essary. Hena also does not need life surplus (yearly income over ex- in New Delhi with wife insurance. Her employer provides a penses minus insurance) till retire- Hena Zarreen and a medical cover. They haven’t opted for ment, and plugging the goals till the one-year-old son, Md. home/personal accidental policy. younger spouse turns 80, found that Arzan. Hena is a medi- they will be able to achieve their cal writer with Kinapse CASH FLOWS goals smoothly. The study was donein Gurgaon. The couple is planning to assuming regular salary incrementshave a second child after two years. Aasif’s net take-home salary is until retirement. It was also assumed `73,000 per month. Hena’s is `52,000. that the family expenses will fall after Aasif and Hena have quite a few They’re paying a rent of `18,000 retirement. Medical insurance andmedium- and long-term goals. They per month for their current house. car insurance premiums were takenare looking to buy a house next year, They also earn `65,000 per month into consideration till the youngerin 2017/18, worth `85 lakh. Arzan’s from a parental property. Their total spouse turns 80. It was assumed thatformal education will start from monthly outgo, including rent, is up they would change their car every2018/19. They also want to have `10 to `60,000; other annual outgoes to- seven years (till Aasif’s retirement).lakh in present terms for Arzan’s tal around `2.40 lakh. The total an-marriage. They will need the same nual premium for all the policies is THE ROAD MAPamount for the second child too. They `70,000. Family expenses are well INSURANCEwant to retire at the age of 50, in 2030 within reasonable limits, though they(Aasif) and 2032 (Hena), respectively. are expected to rise after the second Aasif’s current life cover is suffi-Therefore, it is crucial that they plan child and when they take a home cient. He may have to buy additionalwell for a financially stable life after loan. The family is expected to gen- life insurance when he takes a homeretirement. It is also important that erate a surplus of approximately `12 loan. Hena’s employer provides med-they have no financial liabilities then. lakh this financial year. ical insurance that covers currentThe family also wishes to accumulate expenses. But employer insurancea fund to explore the world in 2020, ASSET ALLOCATION will be there only till she is employedwhich will cost them `20 lakh in pre- with the same company. Buying asent terms. More than 80 per cent of Aasif’s policy at later age will mean paying net worth is in equity. As some ma- a higher premium and going throughEXISTING SCENARIO jor goals are due in the next three medical tests. Therefore, we sug-ASSETS AND LIABILITIES years, and equity investments are gest that they buy health cover for considered less safe in the short run, family members for sum insured ofThey have equity investments of `50 it is important that the family chan- `5,00,000 each. We also suggest thatlakh. The other savings are cash in nelises the present investments and they buy a super top-up policy fromhand and cash at bank of `6 lakh. future surplus in debt instruments to the same insurer. The total premiumTheir provident fund savings total meet near-term goals without has- will be around `35,000 per annum.about `3 lakh. One good thing about sles.their finances is that they do not have INVESTMENTa huge liability like a personal loan, a FEASIBILITY STUDYhome loan or a vehicle loan. To meet the liquidity needs in case A feasibility study done by taking of a job loss/contingency, we sug-INSURANCE PORTFOLIO gest that Aasif keep aside `3 lakh in Hena’s employer a bank or liquid mutual funds. ThisWe calculated the life insurance provides medical amount will cover average monthlyrequirement of Aasif on expense cover, but it will be cash outflows and help in an emer-replacement and needs fulfilment there only as long as gency.parameters. After taking into ac- she is employed withcount expenses, future goals, rental the same company APPLICATION OF FUNDSincome, current insurance cover ofRs `5 lakh and Hena’s income, we We have to create an investmentfound that no further insurance is roadmap for the family that will setrequired for him. But Aasif is paying it up well for the years to come. Its`70,000 per annum for a cover of just approximate average monthly sur- 31MONEY TODAY August 2016

INVESTING | FINANCIAL PLANNINGINCOME AND GOALS MONTHLY EXPENSES (Rs) Goals Priority (High, Current Value of Target year Goals Priority (High, Medium, Low) required amount or Date Medium, Low) (Rs) 2017 Home Expenses 18,000 20303 BHK House in Delhi High 85,00,000 2020 Conveyance 4,800Retire by 50 Medium 2037World Tour Low 200,00,000 Communication 3,350Son’s Education High Utilities/ Charges 24,450 20,00,000 Others 11,000 100,00,000 Total 61,600 SelfSources Self (in Rs) Spouse (Rs) AnnualSalary Monthly Annual Monthly 7,44,000Business Income 85,000 1,020,000 62,000Total Income 30,000 36,0000 35,000 4,20,000Annual Expenses (Rs) 1,15,000 1,380,000 97,000 11,64,000 Expense Item Frequency in a year Amount spent each Total Amount (Rs) time (Rs)1. Festival & Home town Travel 2 35,000 70,0002. Vacation 2 50,000 100,0003. Repair & Maintenance ( R & M ) - Vehicles 1 5,000 5,0004. Repair & Maintenance ( R & M ) - Appliances 1 2,000 2,0005. Clothes and Accessories 5 10,000 50,0006. Consultants7. Donations 1 12,000 -8. Others 12,000 Total - 2,39,000plus is `80,000, out of which `60,000 liquidity margin of `3 lakh and cash Aasif and Hena can open PPF ac-can be channelised into debt mutual in bank can be invested in an equity counts with`80,000 and `1.5 lakhfund systematic investment plans, or arbitrage fund to finance Arzan’s respectively. From next year, homeSIPs, for goals — such as world tour first-year education as well as birth- loan repayment amount (principaland car change — that are due in related expenses of about `2 lakh portion) and PPF contributions willthe next few years. The equity port- for the second child after two years. help the family save tax under 80C.folio can be pruned to `30 lakh from Gains from investments in equity The medical premium payment on`50 lakh to make down payment for arbitrage funds are tax-free after a policies suggested will help the cou-the home they intend to buy. This year. These funds give returns simi- ple take Section 80D benefits up toamount of `20 lakh may be invested lar to that provided by debt mutual `25,000 per annum.in ultra short-term/short-term debt funds.schemes for now. A loan of `65 lakh The plan assumes that the dualfor 20 years @ 9.50 per cent will The yearly surplus can fund all income will continue till retirement.mean an EMI outgo of around `7.30 other goals as and when they come You are advised to review the planlakh per annum. The balance `20,000 up provided the couple invests judi- and rebalance your portfolio peri-per month surplus can be invested in ciously after consulting an advisor. odically, preferably every year. ~equity mutual funds. TAX PLANNING As told to Sarabjeet Kaur The cash in hand will provide a To take the benefits of Section 80C, @sarabjeetkaur32 MONEY TODAY August 2016