रामायण से वित्तीय सबक

22 जनवरी 2024 को, अयोध्या में भव्य नए मंदिर में राम मंदिर का अभिषेक किया गया। राम को मर्यादा पुरषोत्तम कहा जाता है, वह हमेशा सही काम करते थे चाहे परिस्थितियाँ कैसी भी हों । इस मौके पर आइए जानें कि हमें अपने वित्तीय जीवन के लिए क्या अच्छे काम करने की जरूरत है।

 

1. अनुशासन विकसित करें :

भगवान राम ने जीवन में सही, जिम्मेदार और अनुशासित होने के लिए "धर्म" का अभ्यास किया। इसी सिद्धांत को अपने जीवन में लागू करें। अनुशासित वित्तीय जीवन के लिए समझदारी से बचत करें, सावधानी से खर्च करें और समझदारी से निवेश करें।

 

2. सलाहकारों को बुद्धिमानी से चुनें:

कैकेयी ने मंथरा की सलाह मानी जिसके परिणामस्वरूप बाद में परिवार अलग हो गया, कठिनाइयाँ, रिश्तों की हानि, पारिवारिक विवाद और अंततः रामायण हुई। राम ने हनुमान, जामवंत और विभीषण से सलाह ली और युद्ध जीता।

आकर्षक ऑफ़र और जल्दी अमीर बनने वाली योजनाएं बेचने की कोशिश करने वालों से दूर रहें, जो अपने फायदे के लिए सलाहकारों और कोचों के भेष में छिपे होते हैं।

 

3. आकस्मिकता निधि :

अप्रत्याशित रूप से, भगवान राम को 14 साल के लिए 'वनवास' भेज दिया गया और उन्हें अपना आलीशान महल छोड़ने के लिए मजबूर किया गया। हर कोई जीवनशैली में ऐसे अचानक बदलाव के साथ नहीं रह सकता। अप्रत्याशित परिस्थितियों से निपटने के लिए पर्याप्त आपातकालीन निधि रखें।

 

4. धैर्य रखें/दीर्घकालिक सोचें :

'वनवास' के 14 वर्षों के दौरान, भगवान राम को सीता के अपहरण सहित कई उतार-चढ़ाव का सामना करना पड़ा। भगवान राम ने शॉर्टकट चुनने के बजाय धैर्यपूर्वक स्थिति अनुकूल होने तक इंतजार किया। लंबी अवधि के लिए निवेशित रहें, सफलता का कोई शॉर्टकट नहीं है।

 

5. अपना बजट निर्धारित करें :

अपने वित्तीय बजट की "लक्ष्मण रेखा" निर्धारित करें और सुनिश्चित करें कि ऑनलाइन छूट के लालच में इसे पार न करें। जरूरत और चाहत के बीच अंतर समझें.... आर्थिक रूप से अनुशासित रहें।

 

6. अपना जीवन सुरक्षित करें :

आप लक्ष्मण नहीं हैं, और आपके लिए संजीवनी लाने वाला कोई हनुमान नहीं है.... इसलिए जब आप स्वस्थ हों तो स्वास्थ्य और जीवन बीमा प्राप्त करें।

 

7. कर्म पर विश्वास रखें:

भगवान राम ने राजगद्दी छोड़ दी और 14 वर्षों तक वे जंगलों में रहे, लेकिन उनके अच्छे कर्मों का फल मिला और अंततः वे अयोध्या के राजा बने। इसलिए, अच्छे काम करते रहें और अंततः आपको अपने अच्छे काम का अच्छा परिणाम अवश्य मिलेगा ।

 

8. एक कोष बनाएँ:

भगवान राम, सीता और लक्ष्मण कुछ भी न लेकर अयोध्या से चले गये। रावण को हराने के उद्देश्य तक पहुँचने के लिए उन्होंने वर्षों तक धैर्यपूर्वक अपना नेटवर्क और वानर सेना बनाई। दीर्घावधि में मुद्रास्फीति को हराने के लिए, एक कोष बनाने के लिए धैर्य की आवश्यकता होती है।

 

9. अपनी स्लेट पोंछें और फिर से शुरू करें:

14 दिवसीय लंका युद्ध ने बुराई की हार को चिह्नित किया और एक नए रास्ते के लिए मंच तैयार किया। इसी तरह, अपने अतीत में लिए गए बुरे निर्णयों को भूल जाएं और अपनी वित्तीय यात्रा को सुव्यवस्थित करने के लिए सोच-समझकर निर्णय लें।

 

राम लला प्राण प्रतिष्ठा की हार्दिक शुभकामनाएँ

Financial lessons from Ramayan

On 22^nd January 2024, Ram Manidir’s Consecration at the great new mandir in Ayodhya was done. Ram is called Maryada Purshottam, who does the right things come what way. At this occasion let’s learn what good things we need to do for our financial life.

 

1. Cultivate discipline :

Lord Ram practiced "Dharma" in order to be right, responsible and disciplined in life. Apply a similar theory to your life. Save judiciously, spend carefully and invest wisely for a disciplined financial life.

 

2. Choose advisors wisely :

Kaikeyi took Manthara's advice which later resulted in separated family, hardships, loss of relationships, family disputes, and eventually Ramayana. Ram took advice from Hanuman, Jamvanta and Vibhisana and won the war.

Stay away from those trying to sell Lucrative offers and quick rich schemes who are disguised as advisors and coaches for their own benefit.

 

3. Contingency Fund :

Unexpectedly, Lord Ram was sent to 'Vanvas' for 14 Years and was forced to leave his luxurious Palace. Not everyone can live with such sudden changes in lifestyle. Have an adequate emergency fund to handle unforeseen circumstances.

 

4. Be Patient/Think Long Term :

During the 14 years of 'Vanvas', Lord Ram faced many ups and downs, including the kidnapping of Sita. Lord Ram patiently waited until the situation favorable, rather than choosing shortcuts. Stay invested for the long term, there is no shortcut to success.

 

5. Set your budget :

Set "Laxman Rekha" of your financial budget and make sure not to cross it due to luring online discounts. Understand the difference between need and want .... be financially disciplined.

6. Secure your life :

You are not Laxman, and there is no Hanuman to get Sanjeevani for you.... so get health & life insurance when you are healthy.

7. Believe in karma :

Lord Ram left the throne and for 14 years he lived in forests, but his good deeds paid and finally, he became the king of Ayodhya. So, continue to do good things and finally you will get the good results.

8. Build a Corpus :

Lord Ram, Sita, and Laxman left Ayodhya with nothing. They patiently built their network and Vanar Sena over the years in order to reach the objective of defeating the Ravan. It takes patience to build a corpus, to defeat inflation in the long run.

9. Wipe your slate and start over :

14-day Lanka War marked the defeat of evil and set the stage for a new path. Similarly, forget bad decisions that you made in the past and make informed decisions to streamline your financial journey.

Happy Ram Lala Consecration

रियल एस्टेट में निवेश, क्या यह वास्तव में लाभदायक है?

हम सभी रियल एस्टेट में निवेश करना पसंद करते हैं, क्योंकि हम इसे देख सकते हैं और महसूस कर सकते हैं, और यह एक स्टेटस सिंबल भी होता है। लेकिन क्या यह वास्तव में फायदेमंद है? आइए हम रियल एस्टेट में निवेश के बारे में और समझें कि  इसके फायदे और नुकसान क्या हैं।

हम में से अधिकांश लोगों को रियल एस्टेट पसंद है, इसके मुख्य कारण इस प्रकार हैं: 

• रियल एस्टेट एक ऐसी बड़ी चीज है जिसे हम देख और महसूस कर सकते हैं।
• हम इसे अपने परिवार के सदस्यों और रिश्तेदारों को दिखा सकते हैं क्योंकि यह एक स्टेटस सिंबल बन जाता है।
• इक्विटी की वृद्धि के साथ रियल एस्टेट को 100% सुरक्षा के रूप में देखा जाता है।
• लोग मकान में न रहने पर उसे किराए पर देने की कल्पना कर सकते हैं।
• किसी घर को किराए पर देकर उसके कैश फ्लो मूल्य की कल्पना करना आसान है।

 

लेकिन रियल एस्टेट में निवेश करते समय हम जो नहीं देख सकते वह है: 

• ऋण पर संपत्ति खरीदने से ब्याज का बोझ बढ़ जाता है और वर्तमान बढ़ती ब्याज दर के परिदृश्य में यह ब्याज के बोझ को और बढ़ा देता है।
• जब हम अपना घर किराए पर लेते हैं तो हम एकाग्र जोखिम उठाते हैं क्योंकि पूरी संपत्ति एक ही व्यक्ति को किराए पर दी जाती है।
• हाउस रेंट यील्ड्स महंगाई के सामने टिक नहीं सकते।
• तथ्यों की जांच करें: मुंबई में एक ₹2 करोड़ का फ्लैट लगभग ₹ 35-40000 मासिक किराया देता है। जिसका मतलब है कि 2.1-2.4% का वार्षिक रिटर्न, अगर हम मेंटेनेंस चार्ज और प्रॉपर्टी वियर एन टियर खर्च घटा दें तो यह और कम हो जाएगा।
• अचल संपत्ति में तरलता जोखिम एक और महत्वपूर्ण कमी है क्योंकि हम इसे उचित मूल्य पर जल्दी से बेच नहीं सकते हैं।
• इसके अलावा, अगर हमें पूरी राशि की आवश्यकता नहीं है, लेकिन केवल पैसे के सिर्फ एक हिस्से की आवश्यकता है, लेकिन हम या तो पूरी संपत्ति को या कुछ भी नहीं बेच सकते हैं।
• अचल संपत्ति खरीदने और बेचने में लेन-देन की लागत होती है यानी स्टैप ड्यूटी, पंजीकरण, दलाली शुल्क आदि जो एक डूबती हुई लागत है।
• आज की दुनिया में जब लोग नौकरी और शहर बदलते रहते हैं; एक घर खरीदना और फिर दूसरे शहर में शिफ्ट होना दोहरी मार बन जाता है।
• एक घर आज के संदर्भ में एक सफेद हाथी है क्योंकि यह बहुत कम रिटर्न देता है और इसे बनाए रखने के लिए बहुत अधिक धन और देखभाल की आवश्यकता होती है।

 

उसके स्थान पर: 

• हम उस पैसे को ठीक से निवेश कर सकते हैं।
• हम एकाग्रता जोखिम को कम करने के लिए विभिन्न परिसंपत्ति वर्गों और उप-वर्गों में निवेश में विविधता ला सकते हैं।
• हम अपनी जरूरतों के आधार पर अपने नकदी प्रवाह को समायोजित कर सकते हैं जैसे कुछ परिसंपत्तियां नियमित नकदी प्रवाह दे सकती हैं जबकि कुछ सिर्फ बढ़ सकती हैं।
• विभिन्न परिसंपत्ति वर्ग और कैशफ्लो भी हमारी कर देनदारियों को अनुकूलित करने और विभिन्न बाजार चक्रों को मात देने में मदद करते हैं।
• इक्विटी में निवेश हमारे पैसे को लंबी अवधि में मुद्रास्फीति को मात देने में मदद कर सकता है।

 

स्वयं के रहने के लिए घर खरीदना भावनात्मक और आराम कारणों से एक उचित निर्णय हो सकता है लेकिन निवेश के दृष्टिकोण से यह एक अच्छा विचार नहीं हो सकता है। इसलिए निवेश के लिए संपत्ति खरीदने का निर्णय लेने से पहले अच्छी तरह सोच-विचार कर लें।

Investment in Real Estate, does it really makes sense

We all like to invest in real estate, as we can see that and feel, and it also gives a status symbol. But does it really makes sense? Let us understand more about investments in real estate and what are pros and cons of real estate investment.

Most of us Love Real Estate, the main reasons for it are as follows: 

• Real Estate is something big that we can see and feel.
• We can show it to our Family Members and relatives as it becomes a status symbol.
• Real Estate is seen as 100% Security with the growth of Equity.
• People can imagine renting the house if not living in it.
• It is easier to imagine the Cash Flow value of a house by renting it out.

 

But what we can’t see while investing in real estate is: 

• Purchasing a property on loans leads to an interest burden and in current rising interest rate scenario it further increases the interest burden.
• When we rent our house we take the concentrated risk because the whole property is rented to a single person.
• House Rent Yields cannot stand up to Inflation.
• Check the facts that a ₹2 cr flat in Mumbai gives a monthly rent of approx. ₹ 35-40000. Which means annualised return of 2.1-2.4%, if we deduct maintenance charges and property wear n tear expenses it will further come down.
• Liquidity Risk is another important drawback in real estate as we can’t sell it quickly at a fair price.
• Further, if we don’t need whole amount but just a part of the money we can’t sell the property in parts; either full property or nothing.
• Buying and selling real estate has transaction costs i.e. Stamp duty, Registration, brokerage charges etc. which is a sunk cost.
• In today’s world when people keep on changing jobs and cities; buying a house and then shifting to another city becomes a double whammy.
• A House is a White Elephant in today's context as it gives little returns and needs a lot of money and cares to maintain.

 

Rather then that: 

• We can invest that money properly.
• We can diversify the investments in different asset classes and sub-classes to reduce concentration risk.
• We can adjust our cash flows based on our needs like some assets may give regular cashflows while some may just accumulate.
• Different asset classes and cashflows also helps to optimize our tax liabilities and beat different market cycles.
• We can liquidate investments partially in case of emergency even we can take loan agains the securities.
• Investment in Equities can help our money to out beat inflation over a longer duration.

 

While purchasing a house for self-living could be a fair decision due to emotional and comfort reasons however it may not be a good idea from an investment perspective. So think rationally before making a decision to buy a property for investment.

REITs: A New animal In the Investing World

  

What is REIT

Real Estate Investment Trusts (REITs) are similar to a mutual fund wherein investors pool funds which are invested by the sponsor of the scheme into the real estate asset class which acts as the underlying securities. However, the working of a REIT differs a lot. During the launch offer, an investor may buy REIT units which can then be traded on the stock exchanges and thus ensure liquidity. As per the rules, the minimum allotment will be in multiple of one lot each consisting of 100 units and after listing trading will be in multiple of one lot. The REIT shall issue units only in dematerialized form to all the investors.

The minimum subscription amount in REIT has now been reduced from the earlier limit of Rs 2 lakh to Rs 50,000.

India’s first REIT

The first REIT IPO by Embassy Office Parks, a Bangalore-based real estate developer backed by Blackstone Group LP, a global private equity firm, was open for investment between March 18 and 20, 2019. The Embassy Office Parks REIT raised ₹4,570 crore through the IPO. The per unit price of the REIT has been kept in the range of ₹299-300, with the minimum application bid of 800 units. This means that an investor will have to invest at least ₹2.4 lakh in this product. Thereafter, one can increase the lot size in multiples of 400 units. As on 26th April'19 closing price of it was Rs. 327 per unit.

Where it invests

As per SEBI guidelines,  REIT shall hold at least two projects, directly or through SPV, with not more than sixty per cent of the value of the assets, proportionately on a consolidated basis, in one project. Further not less than 75 per cent of the revenues of the REIT and the SPV, other than gains arising from sale of properties, shall be, at all times, from rental, leasing and letting real estate assets or any other income incidental to the leasing of such assets.

The investment can be made in under-construction properties, ‘completed and not rent generating’ properties subject to caps and conditions. REIT is also allowed to invest in listed or unlisted debt of companies or body corporate in real estate sector, mortgage backed securities, equity shares of listed companies, money market instruments and government securities amongst others.

Expected Returns from REITs

As per guidelines minimum 90% of net distributable cash flows of the SPV shall be distributed to the REIT. Further, not less than 90% of net distributable cash flows of the REIT shall be distributed to the unit holders; and any such distributions shall be declared and made at least once every six months in every financial year.

As a REIT investor, the earnings may be in the form of regular income and capital appreciation, if any. In Indian scenario, most industry experts expect return of about 8-12% percent from the REITs.

How REITs are taxed

How the income gets taxed in your hands depends on whether your REIT is passing it off as a dividend income or rental income.

Scenario 1:  If it’s the rental income that it is passing on- which would mostly be the case since REITs are meant to pass on at least 90% of its rental income, then it will be added to your overall income and get taxed at your income-tax rates. In this case REIT will deduct a tax at 10% (TDS) for resident investors and at rates in force (40%, at present) for non-resident investors

Scenario 2: If the income distribution is in the nature of a dividend, then there won’t be any dividend distribution tax or any tax in the hands of unitholders.

Capital Gain Tax:

If you sell your REIT units on the stock exchange after three years, you will need to pay a capital gains tax at 10% (plus applicable surcharge and cess). If you sell your REIT units within three years, a short-term capital gains tax of 15% (plus applicable surcharge and cess) will be imposed.

Things to look beyond

·     Returns can’t be very high as dividend yield might be between 6.5 and 8 percent. Even the capital appreciation can also be limited to single-digit.

·     Another concern is over the liquidity of these instruments. As REIT is a new product and it takes time to catch up. Hence there may be low liquidity in the secondary markets.

·       REITs are best considered as a means to diversify your portfolio across asset classes than for earning higher returns.

And Finally:

Real estate has always been considered an illiquid and a big-ticket investment. REITs provide an opportunity to diversify across real estate as an asset class. REITs are primarily a hybrid investment seeking capital appreciation and even income (rent) from the underlying securities of the sponsor. With twin benefits of REIT and the rules in place, one should expect the REIT to provide a new investment option to the Indian investors.

How to invest large sum when market is at all time high?

We all understand Systematic Investment Plan or SIPs as they are generally know as to invest regularly. But what should we do if we want to invest a large sum and not so sure about the market, for those investors STPs could be the right answer to so as to spread risk over a period of time. Let’s understand it in more details.

Most of us understand SIPs which is the best way to invest in mutual funds especially for those who earn regular income i.e. salary and want to save in a disciplined way. SIPs is a systematic way of investments which works by setting up a regular, fixed investment every month or even could be weekly or quarterly. It gets you a buying price that is averaged over many months or years, which eventually enhances returns. It also protects us from falling market to some extent as SIP ends up buying more units for the same amount of money in falling process. Most importantly, in SIP the monthly or regular installment fits the income pattern that most people have.

However, many times people have lum sum money or they get due to some reason like bonus etc which is not regular but wants to invest that money also but in a much better way. If this money is meant for the long-term ( five years and above) it could be invested in an equity fund all in one go also. However, that carries the risk also, if the markets tank 10-20% soon after the investment we may lose a big chunk of our money and to recover the loss could also be long term affair. In this kind of situation may people would get panicked and redeem the entire sum.

So what could be the solution? 

The solution is simple, but many people are not aware of it, It is called Systematic Transfer Plan or STP, which effectively provides the same potential for higher returns and lower risk as SIPs do, but for onetime investments. The STP is a regular transfer of money from one fund to another. It's like an SIP but the source of the money, instead of being from our Bank Account, is another mutual fund.

So how is it better than lum sum investment?

In STP, initially the money is invested in debt funds i.e. Liquid/Ultra short term funds which have lowest risk and stable returns, and non-volatile. For example. Let's say we got Rs.20 lakh which we would like to invest in an equity fund. This could be an asset sales or bonus from an employer etc.  If we are investing the entire sum at one go, we are exposing the entire investment to any sudden decline in equity markets. Therefore, what we should do is to choose the equity fund(s) and then, choose a liquid/ultra short-term debt fund from the same mutual fund company. First we should invest the entire sum in the debt fund, and then instruct the fund company to transfer say, Rs. 1 lakh into the chosen equity fund every month. In 20 or 21 instalments (not 20, as the debt fund will also add some returns), all the money would have shifted to the equity fund. The buying price would be the average of that time period, thus insulating us from market fluctuations.

However we should always remember that STPs, like SIPs, are not foolproof. If we look back at the markets over the last 10-15 years, we will understand that while an STP generally helps one avoid a market peak and average costs, they're not a foolproof device. In a situation like 2003-2008 when markets keep rising for many years, and then fall sharply, then even an STP cannot eliminate losses. As we all know equity is volatile asset class and there's no way of doing away all risks. However, based on what has happened over the last two decades in India, stretching an investment over one to three years is likely to capture enough of a market cycle to significantly reduce risk.

How should we decide the period for STP?

That should depend on how significant is the sum of money in our overall assets. For example, If the money is  proceeds of a property sale on which some major future plan depends, then three- four years would be appropriate. On the other hand, if it's a bonus worth a few months' income, then maybe six months to one year is enough. There's no fix rule on period and it depends on what we feel is the risk.

To conclude, like SIP, STP can also help us to average out the risk which is inbuilt in the equity market. AS we all know equity market does not works in a simple line, it has short term and long term volatility based on may internal (micro) as well as external (macro) reasons. We can use different strategies to average out the risk however at the end of the day, So be ready for surprises by the market also.