Through the Looking Glass

If the needs of families gave birth to family office concept, the changing business environment has made it a business opportunity today and Financial Planners in India can take a lead in utilizing this opportunity. Read the detailed article here:  Financial Planning Standards Board

The Economic Times Realty funds offering innovative investment avenues Pradeep was ecstatic. He had just received a larger than expected year-end bonus. After a vacation to Shimla with family, he was now wondering how to invest the remaining amount productively for the future. He considered buying a flat in Mumbai, using the bonus as down payment and taking a loan for the remaining amount. Though he would get a tax benefit on interest repayment, prevailing high rates worried him. He was not sure about finding the right property with a good rate. He was told that yields on commercial property were better than those on residential, but the ticket size was higher. The likes of Pradeep can take heart as there are now useful vehicles in the form of Real Estate VC funds and Real Estate PMS. They address precisely the problems mentioned above. For a fee (typically 2% annually), they take money from investors and invest in a set of realty projects. They take a share of profits from in...

The Economic Times If you have exchanged vows recently, you would need to rejig your expenses and savings structure. Here's how you should go about it. Now that both of you have decided to take the plunge, among the various angles that you should look at, there is one more that both of you should consider jointly: your finances. As you move from the ‘single stage’ to the ‘double income no kids’ stage, it is important to note that your priorities, incomes, expenses and savings will all change significantly. (This article addresses the couple where both are working). There are certain strategic and the tactical changes that you should consider and prepare for. Change in milestones: One of the pillars of financial planning is identification of milestones. When you are single, milestones are determined by your whims and desires. Talking to each other about your financial milestones will reveal how significantly different your ideas might be; and this will set the stage for a...

“While thinking of equity investments, think long term” - goes oft-repeated words of wisdom. Is it true only when the markets touch these unprecedented heights or should we keep this in mind even during saner times? Read the whole article here:  Financial Planning Standards Board

The Economic Times - part 3 The case of dealing with a historical exposure is like determining the right proportion of currencies that you should have in your portfolio.  By Akhilesh Tilotia & Ramganesh Iyer In the last two articles of this three part series, we brought to you a perspective on the movement of the rupee vis-à-vis the dollar and how the relationship between the two currencies is undergoing a change and a few factors NRIs need to consider to manage their foreign currency earnings better.We conclude the three-part series with tips on how to take care of the foreign currency exposure that you have. We saw the last time that the Indian currency is ‘jumpy’ and that the direction of the ‘jump’ is getting increasingly harder to predict. There are more opinions than experts on the value of the Indian rupee going forward. We also saw some factors to consider while planning your investments. How do you then take care of the foreign currency exposure that you have?...

The Economic Times - part 1 NRIs have been hit hard by the appreciating rupee. Here is the first part of a three part series on what the appreciating rupee means for them. Investing tips for beginners By Akhilesh Tilotia & Ramganesh Iyer There are many reasons that lead a person out of his country. For the last many decades, one of the strongest was the possibility of leading a much better life economically, outside the shores of India. This was driven by a weak Indian economic growth and job situation, compared to the rest of the world. There was another big reason for this strategy of working outside to be attractive. The exchange rate of the rupee was very weak compared to its purchasing power; so a lot of NRIs would profitably earn in US dollars or dirhams and send money back to India. Either their families would live in India, or they would return a few years later, and have a sizable chunk of accumulated wealth to spend in India. For instance, take the case of Rahu...

Rediff Getting a bonus calls for a celebration. With the right investment tools, you can put your bonus to good use and create wealth. Finance experts, Krishanmurthi Vijyan, CEO, JP Morgan Asset management; Rajivdeep Bajaj, MD Bajaj Capital; and Akhilesh Tilotia, financial advisor, tip you off. How should you invest your bonus? Krishanmurthi Vijyan:  Calculate tax on the bonus. Most companies give their employees bonus only after deducting the income tax. If the net cost of debts is more than the cost of savings, you should pay off the debts first before you plan any savings. It is better to get rid of the high cost loans like personal loans and outstanding credit card bills. Next is investment. While investing for one year, go for a mix of 80-90% in debt and 10-20% in equity. A long-term investment should have at least 70% in equity and 30% in debt. As investors can't choose SIP to invest lump sum of bonus, you can certainly put the bonus in a debt fund first and the...