Vishvender, Author at fisdom

A gift for retirement – National Pension Scheme!

Technology has played a vital role in improving the standard of living of mankind. It has also made people lazy. Not sure, whether I should thank technology or blame it for the simple reason that it has increased the average life expectancy to 70 years. It makes me think if I have been gifted such a long life, shouldn’t I plan for a healthy and happy retirement? Shouldn’t I be prepared for relaxed tomorrow?

I am pretty sure you guys have been of the same thought process. Are we on the same boat? Absolutely. Ladies and gentleman let me present you National Pension Scheme.

What is NPS?

The Government of India started the National Pension System under the Pension Fund Regulatory and Development Authority (PFRDA). National Pension Scheme is an old age security coverage to all citizens who have opted out for this scheme. It is a voluntary scheme.

Why should I invest in NPS?

  1. Tax Deduction: Additional tax deduction of Rs.50,000 can be availed via NPS under section 80CCE other than 1.5 lakh deduction which we get under 80C.
  2. Returns: You can expect a return of 8% – 9.5% from NPS. It is totally depending upon the investment choice you do (Ref point: investment choice under NPS below.
  3. Regular income during retirement days: There is no need for asking monetary help from your near and dear ones during our retirement. NPS will take care of your monthly expenses.
  4. Flexible: NPS account can be operated from every nook and corner of India irrespective of individual employment and location. You can also switch between different investments funds in NPS.
  5. Portable: NPS scheme holders can move from one sector to another like Private to Government or vice versa or Private to Corporate and vice versa. The NPS account will always be the same no matter wherever you go. Even if you leave your job, you can continue using the same account.           

Who can invest in NPS?

All the State and Central Government employees, as well as citizens of India that fall between the age group of 18 to 60 years, are eligible for investing in the NPS. The pre-existing pension account holders can also apply under this scheme for fresh registration.

Types of accounts under National Pension Scheme:-

1. Tier 1 Account: It is a pension account with limitations on withdrawal. Before you hit 60 years, you can withdraw 20% of the contribution. A subscriber required to make an initial contribution of 500 at the time of registration. Subsequently, the subscriber needs to make a minimum contribution of INR.1,000 in any financial year. Minimum amount per contribution is INR. 500. Tax benefits can be availed on money deposited in this account.

2. Tier 2 Account: A subscriber required to make an initial contribution of INR.1,000 at the time of registration. Subsequently, the subscriber needs to make a minimum contribution of INR.250 in any financial year. Tier 1 account is a prerequisite for Tier 2 account.

Opening an NPS Account: –

Opening an NPS account is not that difficult now, it’s just a click away. You can easily invest in NPS online through us. We are a new-age app that makes it easy to invest in mutual funds.

How to exit from NPS?

When you hit 60years of age, you can withdraw up to 60% (Out of which 40% is tax-free) of accumulation as the lump sum and rest 40% will be converted into a pension.

If you want to exit from NPS before 60 years of age, then you are allowed to withdraw only 20% accumulated amount. Pension product will be purchased by the remaining 80% of your fund.

However, in case the death of the subscriber, a nominee is allowed to withdraw 100% of NPS.



The movie is never a good movie until the climax is awesome. I rest my case!

Happy Investing!

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When Crude Oil becomes Rude Oil

Being a crazy football fan, I have been planning to write on FIFA. But the dinner table discussion between my mom and dad, made me realize there is something more important than FIFA. The month just got over. You guys might have realized it. Where are you thinking monthly salary? Sorry, but it’s not that. It’s the monthly budget which has been changed, which made me wonder, why is it happening? I am pretty sure; we all are on the same boat. So I decided to enlighten them about why is it happening and how will it affect them? By the way, the budget has got nothing to do with my FIFA tickets.

Apart from the maid, oil has a major contribution to our day to day activities. Jokes apart, right from the food we eat, the car we drive, the cream you apply, the paint that color your wall and the list goes on. It is being witnessed that, there has been a sharp increase in the oil prices. The oil which used to trade at $60 per barrel is now trading at $80 per barrel. It has been rightly said that “Tiny drops of water, makes a mighty ocean”. The analogy holds true for the monthly budget as well.

                                      Oil prices from Aug 2017 to July 2018


Why is the oil price rising? I am happy to say that, Mr.Modi has got no play in this. Having said that, it’s Mr. Trump who has pulled out the Iran nuclear deal, which prohibits Iran from exporting oil to different countries. Iran has a lion’s share in supplying oil to the world. Due to the cancellation of the deal, the supply of oil has decreased. Due to this, we have seen the oil price to roar. There are some other reasons as well, but the one we discussed is the major one.

How is the price going to affect my household expenses?
To be honest, oil is a blessing in disguise. It is used in a majority of the products.
The picture speaks louder than words. If the oil price is increasing, all these products will get a bit expensive and you may see a temporary hike in your monthly budget.

                                        Usage of oil products in household

How is the price going to affect my investments?
The increase in oil price has caused depreciation in the value of rupees and accordingly appreciation in the value of dollars. This causes an increase in the price of the bond, which results in a lesser yield from the bond. Apart from bonds, the stock price of the company will also get affected. The increase in price will result in lesser profit and hence lesser returns. Yes, mutual funds to the rescue. Invest in mutual funds and decrease the losses considerably.

How is the price going to affect my business?
If your company deals in tires, plastics, chemicals, fertilizers, wax industries, refining, airline, paints, footwear, lubricants, cement, logistics, and construction material for whom crude or its derivatives are major inputs/costs will take a hit on their margins.

How is the price going to affect my daily commute?
Daily commute can be a bit expensive due to the increase in the price of petrol and diesel. Apart from that, some other automobile equipment can also appreciate to some extent.

                                         Usage of oil products in automobiles

To be honest, oil price does fluctuate. It has happened before and it is happening now. It is a game of supply and demand. But the market always brings equilibrium. The prices are high today. But expect them to fall in near future. It is just a momentary situation. Stay invested. Stay safe.

Happy Investing!

Being financially free

It’s the month of India’s financial independence and I can only think about what it takes for us to be free, as people.

We’re either dependant on our jobs, relationships, traps of habits, or emotions.

Taking a route on viewing how we can be financially free and how relatable it is to each one of us.

There isn’t a person I know who hasn’t watched queen! Or wanted to watch it again. I run out of words that could describe this movie. It isn’t a movie it is an entire experience.
For those 2.5 hours I got involved with her joys, her sorrows her heartbreak, the condescending nature in which she was treated by her Fiancé and most involved in her evolution within that time period and her courage to break free from the shackles of social standards( Who is this society anyway?).

While watching the movie I couldn’t help but wonder, what could be the financial implication of such a situation in any young girls life…

1. Heartbreak is a big deal! As much as you hear:‘ It is for the better’, ‘ He didn’t deserve you’ etc… it always hurts. Shopping is a solution! So is taking a holiday with your girlfriends and so is pursuing your hobby, taking up a course. None of which comes free, unfortunately. Word of advice, start saving for a worst case always!
A Monthly SIP (Systematic Investment Plan) could go a long way in bailing you out of any situation that suddenly looms on your head.

2. Do not let past bad experiences affect your future decisions- In a state of self-pity, it may have been very easy for her to slip into that life again by accepting a not so positive partner.
However, she chose to step out of that territory and find one of her own. Often, we struggle with investments we have made in the past, regret them, curse the person who sold them to us, stop any future investments and sit cushy with the money in the bank feeling comfortable.

Sometimes a bad experience should be used to leap into the future with more gathered wisdom. Research/ understand the options of investment well before getting into them.

Use the guidance of an expert on this route to financial freedom.

3.Change / Transformation – she transformed from her a meek quiet under confident submissive girl to one with a spark in her eyes, a skip in her step and confidence oozing off her. This she gathered only through going through different experiences and finding herself. The same could be associated with your investments.

Evaluating options and then finding those that make you comfortable. Whatever they may say, savings, investments and going to bed knowing that your money is working hard for you, gives you confidence like no other!

4. Self Discovery – Her journey only helped her realize what her dreams were for herself. Something as simple as cooking which gave her a sense of joy when she realized she could sell what she made!

Often, we don’t pursue our smallest dreams cause we don’t put down and road map our goals or don’t have the money to fund them! Put it down and start working towards it! You never know how these small steps help you realize your biggest dreams! Start building a small investment fund to just help you pursue your goals, whatever they might be.

In a lot of these steps, you might need fisdom, and we are here for you.

On that note, I’m signing off, hoping some of this makes a small difference in your lives!

Can a coin have one side?

There are times when you have no answer to some questions. This is the time when you call your best friends for words of wisdom. It was my wife’s birthday and I had no clue what to gift her. And I called my dad asking for his help. The answer was, “Son, always remember, Ye Dil mange more. It’s fun to watch Sehwag open with Sachin, Shah Rukh act with Kajol, Modi Ji strategizing with Shah Sahab”. Do you see what he was trying to convey? Gift her the best combo.

Being a wealth advisor, the best combo for me was something very different but super lucrative. Wait for it, it was a SIP plan with a term insurance plan. Boom! That’s what I got in return gift.

Jokes apart fellas, take a minute and think about it. Why do you invest money? To spend it on things you like, which you dreamt of in your childhood. Pretty sure, not on things which you don’t like. So is there a solution which can take care of helping you invest your money in things which you like at the same time protecting you against unwanted circumstances at a bare minimum cost, I repeat, at a bare minimum cost. What better idea than a combo of SIP and term insurance plan!

Allow me to play with numbers. I purchase a term plan which provides me a coverage of 1 Crore charging a premium of Rs.12000 per year for a time span of 15 years. Indeed a bare minimum cost if the thought of the premium you are paying strikes your mind.

Time to look at your Insurance Cover. Isn’t it an eye-opening fact of the day for you?

As long as we are playing with numbers, if you would have invested Rs.15,000 in Systematic Investment plan for a duration of 15 years, expecting a return of 15%, it would have been your golden ticket to 1 Cr club. No wonder, why I love mathematics. Just the right amount of investment, smart investment, and you have the answer for “Kaun Banega Crorepati?”

Investment avenue is one which gives you a significant return. This number crunching makes it very clear that insurance is not an investment avenue. A systematic investment plan is an investment avenue. So it makes no sense in investing a large sum of your hard-earned money in Insurance. God forbid, TIP (Term Insurance policy) takes care of your loved ones when things are not in your hand, SIP takes care of your loved ones when things are in your hand.

SIP and TIP is a win-win situation which proves my point, the coin does have one side. I rest my case.

Happy Investing!

Income tax return

Deciphering the mysterious ‘capital gains’ while filing the ITR this year

While traveling in the woods, I met a monk who enlightened me with his words of wisdom about happiness. Happiness is of two forms. The first one is the internal happiness which you gain from charity and other social cause. The other one is the external happiness which you gain from spending money. He told me you can’t get both kinds of happiness at the same time. Well, the monk hasn’t met the older monk yet. Politely, I bowed my head and whispered, “I am sure you aren’t aware of the concept of Income Tax”.

Allow me to get to the point, how to file an ITR?

To be honest, ITR filing is quite a cumbersome task. But we have got a specialty in making life simpler for our customers. Just be with me and follow the steps.

To file ITR, you will need the form. To get form, you will need to visit There you will find 7 ITR forms. If you are a salaried person and have not had any capital gains, then ITR Form 1 is the option for you. But if you are a salaried person or a HUF(Hindu Undivided Family) with the capital gain or loss, you will need to choose ITR Form 2.

Wondering what capital gains are? The extra gain which you have received from your mutual funds is capital gains. The tax is supposed to be paid on realized capital gains during the financial year. Rules for taxation on capital gains is different for debt mutual fund and equity mutual fund. The capital gains can be short term or long term depending upon the period after which the mutual fund is redeemed.

Mutual funds scheme also provides the dividend to investors. Dividend received is also subject to taxation based on certain conditions. Dividend received up to Rs.10 lakhs is tax-free and dividend earning of most of the retail investor falls under this category.

There are some things which must be taken into consideration. Tax is calculated for funds in your portfolio, which you have redeemed. For long-term capital gains, the tax is payable capital gains if the amount is above 1 lakhs. If you are looking for tax deductions, only ELSS schemes and pension schemes of funds can be shown under Section 80C up to a maximum of Rs.1.50,000.

This is all a smart investor must be aware of.

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Happy Investing!


Yeh Khel Hai Sher-Jawaano Ka: Watch out for these five things this IPL season.

Where cricket is religion and the once-naive become legends, India is the pitch where challenges are yorkers, uncertainty is review and cover-drive is the victory.  While the ritual of watching matches are sacrosanct and the Indian Premier League is no less than a celebration of the religion, are we religious enough to not just watch, but also learn?

Here are a few pointers that can help you take your financial goals across the boundary with the finesse of a straight-drive.

Renowned franchises like Mumbai Indians are cautious about their horizon. Are you?

Mumbai Indians is perhaps among the most popular teams in the renowned Indian Premier League franchise. Notably, for the team, there has been a significant churn in its players – ten-year-old names like Malinga and Harbhajan have been replaced by the likes of Ishan Kishan, Suryakumar Yadav, Pradeep Sangwan and similar.

When asked about the decision to not retain legacy players, the comment received was that they were looking to build a team with a longer-term perspective, perhaps three years or more instead of a quick-fix.

This is a sheer reflection of how the big boys of India Inc. like Mr. Ambani think. If they can think long-term and beyond the obvious with their investments, why can’t you?

Everything has a cost and a value. Planning is important

Though exciting as a spectator, the IPL auctions are a real test for franchise owners’ value-picking skills. For every decision, there are millions at stake – literally.

The entire setup of having a budget, different requirements and the need to fill every spot on the team is no less than our regular financial life where we need to provide for everything and there are a few spots which can’t be compromised while the available budget is rigid as a rock.

So, what to the big boys of IPL do? Simple, they plan ahead. They think about the kind of players they want, the kind of money they are willing to put behind those spots, do their research for players across categories and then bid in line with the requirements.

This is exactly the same process one can learn about their personal finance and investments. Point number one is that you have a fixed budget, what’s next? Define your goals, decide how much money you would need for it, in how much time and then decide on how much money you must park in what places and for how long to achieve everything on your goal-list.

Discipline and patience is an indispensable virtue of the successful

The IPL of 2015 was a memorable one. Any IPL-loyalist would remember the way Mumbai Indians were beaten up in their first four matches and their name flashing at the bottom of the league table sent a shiver down the spine of every MI-fan then. What followed next was an exemplary display of enthusiasm and form while not losing the golden virtues of patience and discipline. We all know what happened next – the trophy was swinging on the waves of blue jerseys.

Though anecdotal, it has quite a lesson for everyone out there trying to manage their personal finances. In the short run, there can be volatility – stomach-lurching volatility; but once you manage to sit tight and focus on the game with continued patience and discipline you will realize that the knot in your stomach was actually nothing but the feeling you get just when the plane takes off the runway. It may be uncomfortable in the beginning but proceeding with patience and discipline will take your flight to the skies.

The old folks’ tale might be true: Excess of anything is not good.

Just a brief look at the history of IPL seasons would reveal that the winning teams emerged victorious not because of any lone-star, but because of coordinated and collaborative efforts from the entire team. The episode of Sunrisers Hyderabad in the season of 2016 when a not-so-flamboyant, but the prudently constructed team picked the trophy was a glaring reminder of how a concoction of different skill-sets outperforms a heavy yet single skill.

Likewise, for the victory of your investments, it is very important to split your investments across asset categories and funds in line with your goals and expectations. Only when every penny invested has a goal for itself will the entire portfolio move towards achieving your larger financial goal.

Power Play: Get a headstart, while you can.

It is quite typical of every team to try and get the maximum possible headstart during the first six overs of power play. These are perhaps the most important six overs for any team in the twenty-over match– the team is fresh, brimming with energy and have lower obstacles. This is the opportunity to mark the team’s territory farther off in the match.

Similarly, when you are young – having the appetite to invest, the energy and understanding along with low responsibilities and deterrents, it is your power-play period in your quest to financial success. Your early years should be leveraged to gain a headstart in your chase towards the bigger financial success.

Cheat sheet to utilizing your bonus in the best way possible

April is that time of the year that is largely ignored. I say so, because for various reasons it is usually an uneventful month, with no major events, festivals or work pressure that calls for stress.

Although, something pleasant or for some unpleasant happens in the months of April and May, the annual/ bi-annual bonus is declared. For a moment, I am going to stay away from how happy or unhappy we might be with that number, truth being told, we all look forward to this amount reflecting in our bank accounts.

I often see myself discussing with my friends, how they / I am going to use the bonus to take a holiday, buy a new gadget, and buy some jewellery and some such. However, seldom is the discussion point “How will I invest my bonus”.  I try to steer that conversation in that direction a few times, and at times make progress.

We are all victims of the bane called “instant gratification”, a moment of impulsive decision making, often financial that leads to feel happy for a very short period. This short period often involves large expenses.

What I am going to give you now, is a bonus cheat sheet, smart ways that you could use this money to make it work better for you.

1.Reduce your debt

The most unexciting part of money, bringing down liabilities, however it makes most sense to bring down those credit card/ personal loan amounts with huge interest portions.  We can very rarely find investments that earn us the interest that we pay on credit cards.

2.Create an emergency fund

I cannot emphasise enough the need for such a fund, and almost sound preachy when I say it, but yes! You do need an emergency fund, should this be 3 months or 6 months of your monthly expenses is a number I shall leave for you to decide, and the best instrument for this would probably be, a liquid mutual fund. This puts your money aside and also makes it accessible when you need it, out of sight, out of mind they say! The urge to spend that money will come down.

3.Plan for your goals

Perhaps you have been lagging all this while in terms of achieving your financial goals. The bonus is a good windfall for you to make an extra contribution to your financial goal. This financial goal can be anything from a short-term goal of a vacation or a long-term one like retirement. A part of your bonus should definitely go towards your financial goal.

4.Start your tax saving investments

Tax saving investments is typically made, at the end of the year, in a rush when the we have the date of submission of documents hanging on our head.

A smart thing to do , is to make a start in that direction, this also gives you enough time to analyse and choose the right ELSS product/ Term insurance/ Health Insurance and critical illness policies.

5.Now spend your money

Should you have taken care of one through three, what left of it can be uses to make some purchases that could give you the kick of instant gratification?

It is only by creating a disciplined and consistent pattern of investing that we can expect for our money to multiply many fold.

Like any other behavioral habit, if investing is not practiced well, the outcome may not be what we expect.

8 personal finance changes that have kicked in this April on-wards

8 personal finance changes that have kicked in this April onwards

  1. 10% LTCG Tax on equity shares and equity mutual funds: Earlier, LTCG on equity/equity-oriented mutual funds were tax-free. However now, all long-term capital gains over and above INR 1 Lakh will be subject to a flat tax of 10%.
  2. 10% DDT on all Equity Mutual Funds: While dividends from equity/equity-oriented mutual funds were tax-free, this financial year onwards, the same will be subjected to a 10% dividend distribution tax. This will be adjusted for by the dividend-paying entity; proceeds will continue to remain tax-free at the hands of the recipient.
  3. Introduction of standard deduction: Standard deduction will replace traveling/transport allowance, medical reimbursements expenses which were subject to a maximum of INR 19,200 and 15,000 respectively. The amount of standard deduction will be INR. 40,000. This will help pensioners who normally do not get medical & travel allowance.
  4. Change in EPF contribution for women employees: EPF contribution for women employees is now capped at 8% instead of the earlier previous 10% or 12%. This will increase the take-home pay for women’s.
  5. Hike in 80D (medical insurance & Health check-up) deduction for senior citizens: Senior Citizens can now protect their health-related expenses even better as the annual deduction for senior citizens under section 80D has been hiked from INR.30,000 to INR. 50,000.
  6. Hike in interest exemption limit for the senior citizen: Interest income on fixed deposits and post office deposits is exempt up to INR. 50,000 as compared to the previous INR. 10,000 cap. This will be applicable for all fixed and recurring deposits.
  7. Rationalising the lock-in period for 54EC Bonds: Gains from the sale of house property can be invested into government-notified 54EC capital gains bonds subject to a maximum of INR 50 Lakh. While the lock-in for these bonds was 3 years, it is now amended to 5 years.
  8. Increase in income tax cess: Income tax cess has been increased to 4% from 3%. This increases the total tax payable by an individual. Cess is calculated on the total tax amount payable.

SIP your way through falling markets

“There could be no better time to stay invested in your funds;

Now, may not be a good time to withdraw your money;

The next few months could be great to invest money systematically. “

None of these comments are those that anyone would give you while having conversations about the market and money.

James Montier, in The Little Book of Behavioural Investing ( a much-recommended read for any investor), says, “How do we as investors prevent ourselves from emotional time travel pitfalls? “, One answer is to prepare the pre-commit.

When we commit to a SIP, we commit to letting that investment continues in a systematic manner until it’s tenure/ unless something goes wrong at the fund level. Assuming that you have already taken care of any emergency funds and kept them in a liquid fund.  The markets are much like our emotions and trigger our emotions too.  What’s happening around us affects our behavior reactions and actions. More often than not, when emotions are high, we make decisions that we often regret. A good thing to do is to postpone the reaction because the cost of that reaction could be very high.

Sir John Templeton, the legendary investor and mutual fund pioneer says,“The time of maximum pessimism is the best time to buy, and the time to maximum optimism is the best time to sell.” Few would disagree with such a sentiment. However, as investors our biggest hurdle is myopia, an overt focus on the short term.

While we make SIP investments and commit them to long-term goals and promise to stick to them till the goal is achieved, when the markets turn a bit chaotic, we get all sweaty and hit the redeem instead of the investor hold button.

There cannot be a better time than a falling market to invest because all your investments will help you enter the markets at much lower levels than you would otherwise with equity SIP.

The next time you hear/ read that the markets have fallen 5%, you should enjoy the thought that you possibly got your SIP entry at a similar discount, and holding your emotions through this period and staying invested will only lead to monumental gains.

Happy women’s day 2018

fisdom dedicates this poem to all women in the world!
Written by:
Parul Mehta (A happy customer of fisdom)

Rise Higher

As a child, I would watch beautiful birds;
Admire their strength and courage beyond words.
I loved that the birds could fly so high;
I had no wings and I wondered why.

I dreamt of having my own wings some day;
Open them up and fly away.
I asked my dad if it was possible for me;
He said now that I wanted, it will surely be.

“Like birds have wings to fly; you too have your self-belief to rely on.
Go create your own wings, and experience the joy it brings.
Knowledge will bring wisdom and wisdom will empower;
That my child will give you wings like no other”.

Next, I asked, how would I know if my wings had grown?
“The day you feel free, they will shine on their own.
Have faith in yourself and the job will be half done;
I promise you, my child, you will be second to none.”

Having embarked on that journey;
I met some lows on the way,
Some withered away my confidence;
And some just made me sway.

My self-belief would always say in my dips,
“Chin up princess, else the crown slips”
No one except you can pull you down;
Bring back that smile and wear it as your crown.

Both victory and defeat, you better embrace,
No matter what, live life with grace.
Fly, run or walk at your pace,
Always live your life with grace.”

There may be times when hard will get harder;
The glory of the past may be shaken altogether.
There may be times when you feel you may drown;
And that exactly is the time, to rise even higher.

These lovely lessons still thrive in my heart;
Every day I make a promise that no matter what,
I will give more power to my wings;
If I want to play my music, only I must tighten the strings