If you save towards pension today, you will have a monthly income when you stop working. Even Rs. 100 per month, saved from the age of 30 years onwards would yield an estimated corpus of Rs.1,49,035 @ 8% rate of return, at the age of 60 years.
QUOTE OF THE WEEK:
“In today’s world—with final salary pensions becoming a rarity and state support shrinking—those of working age have a huge degree of uncertainty around their financial futures” - Martin Wheatley, Managing Director, FSA, UK
YOUR FINANCE DEMYSTIFIED:
NPS Lite: Ensuring old age income for all
If you save towards pension today, you will have a monthly income when you stop working. Even Rs. 100 per month, saved from the age of 30 years onwards would yield an estimated corpus of Rs.1,49,035 @ 8% rate of return, at the age of 60 years.
If rate of return is more, the corpus will grow more. The earlier you join, the returns on your savings will be higher. NPS Lite aims at ensuring a pension of at least Rs. 1,000 per month based on your contributions and government support under Swavalamban Scheme… Read more
How to prepare for early retirement
Some little known facts about NPS & NPS Lite
National Pension System or NPS—a defined contribution pension scheme—became operational in 2008-09. NPS is a government-approved pension scheme for Indian citizens in the 18-60 age group. While central and state government employees have to subscribe mandatorily, it’s optional for others.
A defined contribution plan is a type of retirement plan in which fixed contributions are paid into an individual account by employers and employees. The Government of India adopted NPS based on defined contributions in respect of all new entrants to Central Government services, excepting the Armed Forces from 1 January 2004. Pension regulator PFRDA (Pension Fund Regulatory and Development Authority) has also made NPS available to all citizens of India from 1 May 2009 on a voluntary basis… Read more
FAQs on National Pension System
Know more about NPS-Corporate Sector Model
Most of us have surely heard about National Pension System (NPS). We are also aware about the basic features that NPS offers. NPS is a pension plan where you can invest during your working years and withdraw when you retire. A low-cost retirement solution, NPS can turn our retirement savings into a sizeable kitty. However, many people are not aware about the ‘Corporate Model’ of NPS which is designed for workforce employed in the corporate sector. Let us try to know more about NPS-Corporate Sector Model and how it can help us to retire rich… Read more
DID YOU KNOW?
What is a fractional share?
A fractional share refers to unit of stock that is less than one full share. Fractional shares generally come about from stock splits, bonus shares and similar corporate actions. Fractional shares cannot be acquired from the market… Read more
BOOK REVIEW
10 Commandments for Financial Freedom
Everybody in the world wants to gain freedom from the shackles of their money problems. There are various books published on personal finance providing loads of information to us. They are so many books to choose from that eventually you may walk away without buying one. Most of these books contain many difficult financial terms which are difficult for a lay reader to understand. Only a few books aim to explain the concept of personal finance in lucid detail… Read more
TERM OF THE WEEK
Amortisation
Amortisation refers to reduction of an amount at regular intervals over a certain time period. Usually, refers to the reduction of debt by regular payment of loan installments during the life of a loan. Also describes the accounting process of writing off an intangible asset.
IN THE NEWS THIS WEEK
Fund houses to implement new IDF norms: SEBI
Investors optimistic about stocks, but focusing on physical assets
Companies to redress investor complaints in a month: SEBI
Infra debt funds can extend scheme term up to 2 yrs: SEBI
New PF rules to reduce take home salary
EPFO settling claims at 8.25% rate on PF deposits for FY13
ABOUT FLAME
FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.
In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country.
IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.
Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.
This portal is but one of the various IIFL initiatives that would be part of FLAME.
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The laws of the financial world are different from the physical world. You can have prolonged periods of time, when sanity takes a back seat and excesses happen.
R. Venkataraman Aug 20, 2021
Retail trading or day trading has exploded because of falling brokerage rates, democratization of information, higher transparency and mobile platforms.
R. Venkataraman Jun 15, 2021
My simple message for dear readers is, if you don’t have any desperate need for funds, then don’t do anything.
R. Venkataraman May 12, 2021
The blow up of a US hedge fund has resulted in WhatsApp university offering many courses on what went wrong with Bill Hwang and Archegos.
R. Venkataraman Apr 09, 2021
The expensive valuations have been sustained by strong rebound in corporate earnings which led to ~8% upgrade in FY22 Nifty EPS since October 2020.
R. Venkataraman Mar 26, 2021
We believe the interest rates are likely to have bottomed due to inflationary pressure, large government borrowings and normalizing credit growth. Hence rate sensitive sectors should be avoided in our view.
R. Venkataraman Feb 17, 2021
As markets make new highs, one gets more emails and messages, which highlight the accomplishments of traders who have found a formula for making money.
R. Venkataraman Jan 27, 2021
Data does not seem to convincingly prove that short periods of high returns are always followed by meagre returns. Only in 4 instances, we had negative returns in the subsequent year.
R. Venkataraman Jan 01, 2021
Since September end, Bankex is up 16% with large banks like ICICI Bank, Bandhan up 20-27%, Housing Finance Companies like Repco, LICHF, PNB Housing are up 50%-100% from their six-month lows.
R. Venkataraman Oct 13, 2020
Morgan Housel’s 'The Psychology of Money' explains in detail the role of human biases in investment decisions.
R. Venkataraman Sep 26, 2020
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