Stress Free!

All this talk of Stress Tests on mid cap and small cap funds....all because of the extra 'froth' that every good cup of coffee has...and attracts! My point is asset allocation is a function of your Risk Profile and Risk appetite. As per your portfolio plan, you would allocated funds into the asset class with time horizons proportionately. Surely, it could not have been looking at liquidity, days for liquidation of portfolio, when deciding on a mid cap or small fund! A pure overnight or liquid fund will be just right for that. So if a frothy coffee excites you, remember there is a Starbucks price to it, there is a doctor signoff based on your health condition...and most importantly why you are having the coffee?!! Is it time pass, grabbing a quick bit before you move on or it is a deliberate SIP ..before better things ahead?!! Life is not all about stress tests only....but health is! So healthy diet, healthy lifestyle and planned investments...the road to Stress free life. #joyofliving #joyofinvesting #stressfree

In Iraq’s book market, books remain on the street at night. Iraqis say, _the reader doesn’t steal, the thief doesn’t read._ Carrying a line of dichotomy in finance, let us say, _the one in a hurry doesn’t make money, the one making money is never in a hurry._ In the last 43 years of Sensex, across ~11000 trading days, here is the data proving this simple fact: Positive and negative returns were observed as follows: ♻️ Daily: 53% positive, 47% negative ♻️Weekly: 56% positive, 44% negative ♻️ Monthly: 61% positive, 39% negative ♻️ Quarterly: 64% positive, 36% negative ♻️ Yearly: 72% positive, 28% negative ♻️ 3 years: 89% positive, 11% negative ♻️ 5 years: 96% positive, 4% negative ♻️ 10 years: 100% positive, 0% negative #joyofinvesting #blueskypremiere #whatsapp8697729504 courtesy Axis AMC

Spending smartly during the festive season

*Spend smartly this festive season* In October, thanks to Durga Pujo, Navratri and Dusshera, e-commerce websites, retail chains, and independent neighbourhood stores are rolling out festive shopping offers. Make a budget and track your shopping expenses during the festival season. Prepare a list of gift items that you need to buy, use cards from partner banks for additional discounts and cashbacks. Redeem reward points for additional savings. Avoid shopping for things you may not use immediately, thus, avoiding impulsive spending and *redemption of investments.* Blue Sky Premiere introduces *LAMF (Loan against Mutual Funds)*. Lien your Debt/Mutual fund units and take short term credit against them. Instant disbursal of amount at low interest rate. To know more click here : https://rb.gy/f8y3j

The Ethical Blueprint: Embracing the ESG Mandate Overview: ESG stands for environmental, social, and governance. It is a framework used to assess an organization's performance on sustainability and ethical issues. It also provides a way to measure business risk and opportunities in those areas. ESG factors include climate change, pollution, human rights, labor practices, and corporate governance. ESG is becoming increasingly important for businesses and investors. A growing number of consumers and investors are demanding that companies take ESG factors into account. This is because ESG factors can have a significant impact on a company's long-term financial performance. Components of ESG – (A) Environmental: This refers to a company's impact on the environment. Key considerations under this pillar include climate change, deforestation, biodiversity, renewable energy, waste management, water conservation, and pollution. • Greenhouse gas emissions: Companies that emit a lot of greenhouse gases are contributing to climate change. This can lead to a number of negative consequences, such as rising sea levels, more extreme weather events, and food shortages. • Water usage: Companies that use a lot of water can put a strain on local water resources. This can lead to water shortages and other problems. • Waste disposal: Companies that produce a lot of waste can pollute the environment. This can lead to health problems and other environmental damage. (B) Social: This dimension revolves around how companies manage relationships with employees, suppliers, customers, and communities. It covers aspects like human rights, labor standards, health and safety, and community engagement. • Labor practices: Companies that have poor labor practices may exploit their workers. This can lead to a number of problems, such as low wages, unsafe working conditions, and child labor. • Human rights: Companies that violate human rights may harm their employees, customers, and suppliers. This can lead to a number of problems, such as discrimination, forced labor, and environmental degradation. • Diversity and inclusion: Companies that are not diverse and inclusive may have a negative impact on their employees, customers, and suppliers. This can lead to a number of problems, such as a lack of innovation, low morale, and poor customer service. (C) Governance: This refers to a company's internal controls and corporate structure and largely revolves around topics like corporate board diversity, executive remuneration, audits, internal controls, shareholder rights, and transparency in financial reporting. • Board composition: Companies with boards that are not diverse and independent may be more likely to make poor decisions. • Executive compensation: Companies that pay their executives too much may be less likely to invest in their businesses. • Shareholder rights: Companies that do not respect shareholder rights may be less likely to be accountable to their stakeholders. The three pillars of ESG are interconnected. For example, a company with poor environmental performance is more likely to have poor social and governance performance. This is because environmental problems can often lead to social problems, such as pollution and climate change. And poor social and governance performance can also lead to environmental problems, such as deforestation and water pollution. Why is ESG important for companies: Adherence to good ESG practices is important for companies for the following reasons- • Risk Management: Companies with strong ESG performances are perceived to have better risk management practices. This reduces the vulnerability to regulatory, legal, and societal changes. • Performance and Competitiveness: Studies suggest a positive link between ESG and financial performance. Moreover, companies that adopt ESG practices can attract and retain top talent, ensuring competitiveness in the market. • Long-Term Vision: ESG-focused companies and investors often think long-term, prioritizing sustainability and enduring value creation. • Stakeholder Trust: Companies that adhere to ESG principles tend to enjoy enhanced trust among stakeholders, including consumers, employees, and the community at large. Rating criteria: ESG scores are typically calculated by combining a company's performance on multiple ESG factors. The scores are then used to rank companies from best to worst in terms of their ESG performance. ESG scores can be used by investors and companies to make decisions about investments and business practices. Investors can use ESG scores to identify companies with strong ESG performance. Companies can use ESG scores to identify areas where they can improve their ESG performance. To assess a company's ESG performance, several rating agencies have emerged, each with its methodology. However, common criteria include: • Disclosure and Transparency: How openly a company shares its ESG data and practices. • Absolute Performance: Evaluation of a company’s ESG data in absolute terms. • Relative Performance: Comparing a company's ESG performance against its peers. • Direction of Change: How a company's ESG performance is evolving over time. Aditya Birla Money Ltd, a responsible research house have started publishing ESG score in their research reports. The reports use Crisil/Bloomberg ESG scores to benchmark the performance of companies on ESG parameters. The companies are assigned a score between 0-100 gauging a company's commitment and effectiveness in addressing sustainability and ethical practices. A score of 0 indicates a complete lack of ESG initiatives and possible neglect of environmental, social, and governance responsibilities, while a score of 100 represents an exemplary commitment to sustainable and ethical practices in all ESG domains. Companies that score closer to 100 demonstrate a higher dedication to sustainable business practices, stakeholder engagement, and governance transparency. These scores are further categorised in 7 grades ranging from Poor to Ideal for graphical representation on a colour scale as demonstrated below0-14 (Poor), 15-28 (Below Average), 29-42 (Average), 43-56 (Adequate), 57-70 (Above Average), 71-84 (Strong) and 85-100 (Ideal)

 

What happens to your provident fund after early retirement?

EPF – Employees’ Provident Fund.

If you are a salary earner, you can choose to contribute 12 per cent of the basic income and dearness allowance to EPF each month due to the following reasons:

The monthly contributions are eligible for tax deduction (old tax regime only)

Your savings will earn tax-free interest The money deposited can come in handy during an emergency It can be a retirement corpus

When you withdraw your provident fund, the entire amount is exempt from tax .

 

Question 1: What will happen to the EPF account if you retire early? The account will remain operable for three years after retirement. For instance, if you retire today - August 2023 - at the age of 52, the EPF account will remain operable until August 2026.

 Question 2: Will my EPF money continue to earn interest? Yes, it will earn interest as long as the EPF account is operable. And as you know, the EPF account is operable for three years after you have retired. Just an added information, you'll earn an interest of 8.15 per cent this financial

Question 3: Is the interest I earn on EPF tax-free?
As long as you are employed and contributing to the EPF, the interest you earn is exempt from tax. However, once you retire, the interest you earn is taxable. In this case, the interest is added to your annual income and then taxed accordingly.

The last word
Don't forget to withdraw your money while your EPF account is still operable. Because if you fail to remember and your EPF account becomes inoperable after three years, your hard-earned corpus will stop earning further interest, and inflation will reduce the value of the savings gradually.

 

 Start that Emergency Fund...make a beginning!

One of the most famous adages about savings goes, ‘A penny saved is a penny earned’.

While emphasizing the importance of saving, what this saying means is that setting aside money from your existing funds is as good as earning it.

There are several reasons why one needs to save. Its merits include -- being prepared for emergencies, fulfilling your financial and material goals, and eventually building wealth over the long term.

Financial goals would typically include, but not be limited to, buying a house, securing funds for children’s education and marriage, funds for retirement, a dream car, vacations and adequate health care etc.

While saving is the primary step to all of these, one also needs to define their goals, how much money each of these goals would require, choose the relevant instruments and allocate funds accordingly.

Goals could be short-term or long-term in nature, but foremost is that one needs to build and maintain an emergency corpus.

What exactly is this corpus, and how does one work towards it?

As its name suggests, an emergency corpus is meant to come in handy in emergencies and should be strictly kept separate from regular savings or funds earmarked for specific goals.

These funds could ideally be about three-six months of your living expenses and can be invested or kept in an instrument where it is easily accessible. For instance, many investors prefer  these funds to be parked in a liquid fund or a savings account.

An unexpected medical expense is something you could dip into your emergency funds for. A loss of a job or any other unforeseen crisis is also something for which your emergency corpus could come in handy.

The need for money is inevitable for tackling these situations at most times, and not having the funds at that time may lead to one borrowing the funds at unfavorable rates, which is another burden to deal with.

 Zhou Daxin’s latest novel, “The Sky Gets Dark Slowly”. It is a sensitive exploration of old age and the complex, hidden emotional worlds of the elderly in a rapidly ageing population.

In it he writes, “…Many elderly speak as though they know everything, but of old age they are in fact as ignorant as children. Many elderly are in fact, completely unprepared for what they are to face when it comes to getting old and the road that lay ahead of them.

“In the time between a person turning 60 years old, as they begin to age, right until all the lights go out and the sky gets dark, there are some situations to keep in mind, so that you will be prepared for what is to come, and you will not panic.

ONE. The people by your side will only continue to grow smaller in number. People in your parents’ and grandmothers’ generation have largely all left, whilst many of your peers will increasingly find it harder to look after themselves, and the younger generations will all be busy with their own lives. Even your wife or husband may depart earlier than you, or that you would expect, and what might then come are days of emptiness. You will have to learn how to live alone, and to enjoy and embrace solitude.

TWO. Society will care less and less for you. No matter how glorious your previous career was or how famous you were, ageing will always transform you into a regular old man and old lady. The spotlight no longer shines on you, and you have to learn to contend with standing quietly in one corner, to appreciate the hubbub and views that come after you, and you must overcome the urge to be envious or grumble.

THREE. The road ahead will be rocky and full of precarity. Fractures, cardio-vascular blockages, brain atrophy, cancer…these are all possible guests that could pay you a visit any time, and you would not be able to turn them away. You will have to live with illness and ailments, to view them as friends, even; do not fantasize about stable, quiet days without any trouble in your body. Maintaining a positive mentality and getting appropriate, adequate exercise is your duty, and you have to encourage yourself to keep at it consistently. 

FOUR. Prepare for bed-bound life, a return to the infant state. Our mothers brought us into this world on a bed, and after a journey of twists and turns and a life of struggle, we return to our starting point – the bed –and to the state of having to be looked after by others. The only difference being, where we once had our mothers to care for us, when we prepare to leave, we may not have our kin to look after us. Even if we have kin, their care may  never be close to that of your mother’s; you will more likely than not, be cared for by nursing staff who bear zero relation to you, wearing smiles on their face all whilst carrying weariness and boredom in their hearts. Lay still and don’t be difficult; remember to be grateful.

FIVE. There will be many swindlers and scammers along the way. Many of them know that the elderly have lots of savings, and will endlessly be thinking of ways to cheat them of their money through scam phone calls, text messages, mail, food and product samples, get-rich-quick schemes, products for longevity or enlightenment… basically, all they want is to get all the money. Beware, and be careful, hold your money close to you. A fool and his money are soon parted, so spend your pennies wisely.

Before the sky gets dark, the last stretches of life’s journey will gradually get dimmer and dimmer, naturally it will be harder to see the path ahead that you are treading towards, and it will be harder to keep going forward. As such, upon turning 60, it would do us all well to see life for what it is, to cherish what we have, to enjoy  life whilst we can, and to not take on society’s troubles or your children’s and grandchildren’s affairs for yourself. Stay humble, don’t act superior on account of your own age and talk down to others – this will hurt yourself as much as it will hurt others. As we get older, all the better should we be able to understand what respect is and what it counts for. In these later days of your lives, you have to understand what it means, to let go of your attachments, to mentally prepare yourself. The way of nature is the way of life; go with its flow, and live with equanimity.

For all of us, a nice read, very beautiful, very true!

Hardly the day started and … it is already six o’clock in the evening.

Barely arrived on Monday and it’s already Friday.

… and the month is almost over.

… and the year is almost up.

… and already 50 or 60 or 70 years of our lives have passed.

… and we realize that it is too late to go back…

So…Let’s try to take full advantage of the time we have left …

Let’s not stop looking for activities that we like…

Let’s put color in our grayness…

Let’s smile at the little things in life that put balm in our hearts.

And yet, we must continue to enjoy serenely the time that remains.

Let’s try to eliminate the ‘after’…

I do it after…

I will say after…

I will think about it after…

We leave everything for ‘later’ as if ‘after’ was ours.

Because what we do not understand is that:

after, the coffee cools…

after, priorities change…

after, the charm is broken…

after, health passes…

after, the children grow up…

after, the parents get older…

after, the promises are forgotten…

after, the day becomes the night…

after, life ends…

And all that ‘after’, we find it’s often too late…

So… leave nothing for ‘later’…

Because in always waiting for later, we can lose the best moments,

the best experiences,

the best friends,

the best family…

The day is today…The moment is now…

We are no longer at the age where we can afford to postpone until tomorrow what needs to be done right away.

So let’s see if you’ll have time to read this message and then share it.

Or maybe you’ll leave it for…’later’…

And you will not share it “ever’ ’’

Even share with those who are not yet ‘seniors’.

May you be well and happy…