4. Learnings:
This video proved to be very motivating as it illustrates the best example of Indian Career
Women. She started her career 20 years ago with star plus, star gold, star news, etc.
channels.
She also said when its your first job you don’t even know what to exactly to expect. So her
expectation for job was she could sit in a large port room, talking to clients, well dressed in
suits but the reality was quite opposite than her expectation as she had to wear casuals.
Even though she had fun with all her colleagues, clients and she still continues a good
healthy relationship with them.
Besides that there was a lot of learning too. Star at those days was in its composition. So
she finds herself fortunate to work with best professionals and had a lot more to learn from
them.
She worked with star for about 4 years which was basically an entertainment channel in
which she did her best but she also was familiar with news so after which she joined CNBC
Aawaz which was a news channel.
As per her views entertainment and news were different because in entertainment
everything is preset but in case of news it is getting more influence set, getting them to
talk about you, getting them to know about frequency but other than that the basics
remains the same.
5. She had a fantastic status in CNBC Aawaz which led her to success and she became the vice
president of it. When asked about her success mantra she said for success there is no need
to do different things but to do same things differently or better than others and also to
give 100% and be focused to the goal.
As per her re-launch is harder than the launch as in case of launching, it starts with the key
state but in re-launching everything is changed, transfer to new market, audience are
changed or the product and so does expectations. So it was challenging for Star News to
launch in India as Star News English was an iconic brand and Aaj Tak was the leading Hindi
News channel.
She worked for CNBC in south which was very different market and smaller than other plus
the clients were also less in skills so there was a lot of need to apply customized solutions
as compared to other parts of country where marketing is far more practiced.
She learned the skills of Print Media when she worked for about 11 years in Forbes India and
Forbes Life India which was quite challenging for her even though she did excellent work in
it by growing the branch and calls herself a troubleshooter.
As in Print Media the news paper is to be printed daily so which must be done fortnight and
which needs extreme discipline and persistency. You just cannot take your eyes off the ball
for single day. So discipline for oneself is what she learned from the Print Media.
With the help of her excellent team she also managed the magazine and its subscriptions
which were much in demand by then. Effectively her team communicated with the clients
by introducing various categories of magazine which were not so common in those days
which gave them the thrust of increasing revenue.
6. She believes focusing on various advertising options and talking with clients persistently they were able to
attract many dealerships and contracts.
After Forbes Life she joined moneycontrol.com as COO which marked her entry to the Digital Media Business.
From her point of view she saw lot of opportunities in the Digital Media. She believed that it would be the
future of media and when she got the opportunity to join organization she was keen to work with it which was
a larger role than previous ones.
After moneycontrol.com she joined iProspect as CEO where Launched Intelligent Content - A content
marketing service to grow iProspect India’s capability, driving business outcomes for clients.
Currectly she is Country Manager at VerSe Innovation.
She had spent her last 20 years with all those organization wonderfully and with no regrets and even if she
looked back she didn’t want to change anything about which she feels really lucky to work with different
streams as well.
The only thing that drives her is excellence and continued efforts to do better than before which she had
done till now and look forward to carry the same in future.
8. Learnings:
Her journey till now was very evolving and exciting. She is happy and
fortunate for her journey so far.
She started her career as a journalist in well known newspaper Dainik
Bhaskar which was famous in central India and Delhi.
She believed in fairness that is everything must be righteous, must be done
fairly, so she thought that was her best characteristics.
She thought management was very structured way of going into people and
fairness equally. So she thought journalism was right thing which she did
naturally but she was incomplete about academic qualification so she got
into management.
The part of HR i.e. Human she was attracted to as she always wanted to
have interactions with people. So over all other branches she took HR.
9. Sealed Air is very non-glamorous, B to B industrial selling organization. So
she came from very different background where the audience were quite
different as they were high contact, no commercial people and all of them
were either chemical engineers, food application experts, etc.
7 years ago when she joined a typical industrial set-up where attitude was
less important than skills which made her think that the different mind set
in India is parallel shift for de-management leadership, so they started
moving to higher interest skills than attitude as they knew skill is what
that can be taught but attitude is what you have. Once you get your
attitude level on board you enjoy doing your work with more fun.
By bringing new culture in the company she changed it in a way so that the
employees are taught technical skills as per need but they have now known
the value of attitude. Due to which she says that the employee’s package
is formed in a way that their behavior in industry much more appealing .
10. She said once they hire a guy they make him to experience everything in
real so that he faces all sorts of responsibility and the environment would
teach him everything.
She said there are hundreds of people who are hired yearly which all come
from very different culture so they transient them into one single culture.
Before Sealed Air she worked with Wockhardt, Reliance Broadcast, Tata
Finance, Tata Capital and Glaxo Smithkline Pharmaceuticals. This diversity
helped her in all way it could be. And all these diverse industries had same
context only the background changed but context remained same.
Currently she is Executive Director HR in Diversey.
12. Learnings:
From this video I understood various points as he spoke about his journey in various
organizations. His professional journey was fantastic. Overall it was very rewarding
professionally and personally.
He says, when you start your journey you build your career graph, you have your own
milestones in mind that you want to achieve. So he had achieved few of them but not all
yet.
During his journey till now he was able to build up relationships with professional friends,
clients, etc. across India and overall. Also worked with best brains of industry who were in
front panel of wealth management who were very motivating and supporting to him which
matters a lot to him.
Since his childhood he wanted to be in finance and wealth management and the reason was
he was very fascinated about bottom lines, balance sheets, profit and loss market and how
things moved and capital markets moved. Besides he wanted to working India as well as
across India.
He also says finance gives you much more opportunities like that.
13. He said, his father spent his entire career into the banking which inspired him to go into
the finance sector. Though he studied CA but his interest was in business so he also pursued
MBA. He felt that he had a bigger role to play for any organization so he thought he should
have better perspective on business. He says MBA is better to enhance the bottom line of
organization.
During his stint with Standard Chartered Bank, he set up the wealth management business
and was responsible for the overall business of the region which under his leadership
topped the performance.
He said, it was the first MNC in that region and he was first employee in it. So he had
various challenges and opportunities with it but always had a very strong support from top
management plus he had a good local knowledge of banking platform which helped him to
set him in an MNC.
Setting a new business there must be very concentration on client satisfaction and must
work on very small details. It was difficult in setting new business as clients were new to
investment like mutual fund so he decided to first educate them and when they get
comfortable with take them in.
During early 2000 environment was not very stable as there were changes in financial
industries, privatization of insurance company, mutual fund was reviewed which helped to
bring lots of suitable products to client.
14. He was very successful in setting a wealth sector as he set up a private banking business for
Kotak in MP and Gujarat. He worked for Kotak in MP for about 3 years then shifted to
Gujarat which he was new to the location and language. But he says in order to achieve
something you need to come out of your comfort zone.
During that time Kotak was one of the very few private banking sector and had an
advantage of private equity fund and real state fund. When he spoke to various people
about it most of them were new to it so it gave him challenge plus opportunity to make
great business out of it.
He also continued the same success story in Axis Bank as well. He feels that once we have
build up our own skill and we go on updating it then it becomes our ability to take our skill
portability across organizations but organization must also be adaptive to it.
With his skills and experience Centrum has been very successful in expanding its business
all over the world.
He guides students in Finance that its very challenging stream as it requires lots of patience
but with growing ideas and enthusiasm you can have a fantastic career in it.
17. Learnings:
Corporate Identity is the persona of the corporation – it is as set of values and principles held
by the firm and it is the way these values are communicated verbally, in writing, and
graphically in the corporate logo, design and colors. All these elements put together gives the
image of the corporation – the corporate identity.
Corporate identity is the distinguishing character or personality; individuality which defines
and identifies your business to the marketplace.
Corporate identity is the value of one’s vison, purpose, values, ethical stance and leadership
as it contributes to brand equity and economic success in business relationship.
Corporate identity is the group of features, values and beliefs with which the company or
organization identifies and differentiates from the rest.
Composition of Corporate Identity:
Corporate Design (logos, uniforms, corporate colors, etc.)
Corporate Communication (advertising, public relations, information, etc.)
Corporate behavior (internal values, norms, etc.)
18. Corporate Identity Program is:
Drive within the organization.
Initiated under the custodianship of corporate communications department.
Desired elements and aspects are designed, defined, picturized and
technicalised.
Rolled out for implementation across the organization.
Rolled out also among the closely linked business stake holders.
20. Learnings:
Brand Identity:
A unique set of brand associations that a brand owner wants to create or maintain.
These associations represent what the brand stands for and imply a promise to customers
from the organization.
Characteristics of Brand Identity:
Brand Identity is internal to the organization.
Brand Identity is not actively communicated to the audience.
It forms the basis of what needs to be actively communicated.
Brand Identity goes far beyond the product and its attributes.
21. Kapferer’s Brand Identity Prims:
Physique- Physical attributes of the brand.
Personality- Characteristics of the brand as a person.
Culture- Organizational culture that company wants to portray.
Relationship- Relationship that the brand wants to build with the consumer.
Reflection- How using the brand reflects on the consumer.
Self-image- How the consumer feels having used the brand.
David Aaker’s Brand Identity Model
1. Brand as a Organization
Organizational Attributes (innovation, customer service, trust)
Local Vs Global
2. Brand as a Person:
Personality (genuine, rugged, energetic)
Relationship with customers (friend/advisor)
22. 3.Brand as a Product:
Scope of the product
Attributes
Quality
Uses
Users
Country of Origins
4.Brand as a symbol:
Visual imagery and metaphors
Brand heritage.
24. Learnings:
Risk is:
Risk is defined as the probability of occurrence of an unexpected event, that may
alter the result under normal circumstances.
Higher the probability of unexpected event, higher the risk.
Types of Risk in Banks:
Credit Risk
Market Risk
Operational Risk
Liquidity Risk
25. Credit Risk:
Credit Risk is the Risk taken on the borrower.
If the borrower defaults, Bank lose its principal and interest.
Credit Risk involves two types of risk: Counterparty Risk and Country Risk.
With loan forming large part of banking asset for most banks, it is clear source of credit
risk.
Market Risk:
Market risk is the risk arising from the adverse movements in the market process of the
investment portfolio.
Standard market risk factors are: Interest rate risk, FX rate risk,
Equity/Commodity/Market risk.
26. Operational Risk:
Operational Risk is the risk of loss from inadequate internal process and systems, human
factors and external events.
Operational risks are often associated with one-off events. Operational risks are thus
non-financial risks.
Liquidity Risk:
Liquidity risk is the risk of losses arising due to lack of funds to meet its obligation.
Role of banks in the maturity transformation of short-term deposits into long-term loans
makes them vulnerable to liquidity risk.
28. Learnings:
As per Reserve Bank of India (RBI) notification, A Small and Medium Enterprise
(SME) may be defines as:
Any unit with investment in plant and machinery in excess of SSI limit and up to
INR 10 cr. may be treated as Small Medium Enterprises.
SME’s can be defined as having three main characteristics:
Companies that are not quoted on stock exchange i.e. they are unquoted.
Ownership of the business is typically restricted to few individuals. Often there
is a family connection between the shareholders.
Many SME’s are the means by which individuals or small groups effectively
achieve self-employment.
29. Need for Short Term Finance:
It facilitates smooth running of business operations by meeting day to day financial
requirements.
It enables firms to hold stock of raw materials and finished product.
With the availability of short term finance, goods can be sold on credit. Sales are for a
certain period and collection of money from debtors takes time. During this time gap,
production continues and money will be needed to finance various operations of the
business.
Short term finance becomes more essential when it is necessary to increase the volume of
production at a short notice.
Short term funds are also required to allow flow of cash during the operating cycle.
Operating cycle refers to the time gap between commencement of production and
realization of sales.
This type of finance is required for a period of less than a year. It is required to provide
working capital to the business.
The working capital is needed to purchase of raw material, payment of wages, salaries
and meeting day to day expensed of the business.
Short term finance may be required to meet the seasonal requirements of business.
It is available at low rate of interest.
30. Short Term Sources of Finance:
A short term sources of finance means any instrument which can help companies to bring in
funds/asset in less than one year.
1. Trade Credit –
It refers to credit granted to manufacturers and traders by the suppliers of material.
Finished goods, components, etc.
This type of credit does not make funds available in cash but it facilitates purchases
without making immediate payment.
2. Bank Credit:
Commercial banks grands short-term finance to business firms which is known as bank
credit.
Bank credit may granted in many ways such as loans, cash credit, overdraft and discounted
bills.
32. Learnings:
Supply Chain Management:
SCM is the strategic management of activities involved in the acquisition and conversion of
materials to finished products delivered to the customer.
Supply Chain is the system by which organization source. Make deliver their products or
services according to the market demand.
Supply Chain Management operations and decisions are ultimately triggered by demand
signals at the ultimate consumer level.
Supply Chain as defined by experienced practitioners extends from suppliers, suppliers to
customers, customers.
Supply Chain Management is all about effective integration of:
Right Product at Right Place
Right Quantity at Right Time
Right Quality at Right Value
33. The 8 key supply chain management processes identified by members of
the Global Supply Chain Forum (GSCF) are:
Customer Relationship Management:
The CRM provides the structure for how relationships with customers are developed and
maintained. Through this process, management identifies key customers and customer
group to be targeted as part of the firm’s business mission.
Customer Service Management:
Customer service provides the customer with real-time information on promised shipping
dates and product availability through interfaces with such functional areas as
manufacturing and logistics.
Demand Management:
Demand management is the process that balances customer requirements with supply chain
capabilities. With the right process in place, management can match supply with demand
proactively and execute the plan with minimal disruptions.
Order Fulfillment:
It encompasses all activities necessary to define customer requirements, design a network,
and enable a film to meet customer requests while minimizing the total delivered cost.
34. Manufacturing Flow Management:
Manufacturing flow management includes all activities necessary to obtain, implement, and
manage manufacturing flexibility in the supply chain and to move products through the
plants.
Suppler Relationship Management:
The SRM process provides the structure for how relationship with suppliers are developed
and maintained.
Product Development and Commercialization:
Product development and commercialization is the supply chain management process that
provides structure for developing and bringing to market new products jointly with
customers and suppliers.
Returns Management:
Returns management is the process by which activities associated with returns, reverse
logistics, gatekeeping and return avoidance are managed within the HRM and across key
members of the supply chain.
36. 1. 4 TYPES OF COMMUNICATION STYLES
Learnings:
Human beings develop several behavioral and non-behavioral characteristics during their
lifetime, which usually become non-amendable or difficult to change.
But people shall learn all styles to connect with others feasibly and augment their base of
thinking and conversating.
1. Passive Communicators:
Passive communication is a communication style where one faces difficulty and
hesitation in expressing their thoughts, feelings, and opinions and fails to identify their
needs and safeguard their rights.
The inability to communicate and convey thoughts and emotions leads to
miscommunication and misunderstandings, thus creating anger and frustration.
The common traits to identify passive communicators are difficulty making eye
contact, poor posture, and failure to assert themselves. However, these people are the
safest to share secrets with or any personal issues as they are compassionate and
understanding.
37. 2. Aggressive Communicators:
Aggressive communication is a style where individuals convey their feelings and
thoughts dominantly and advocate their rights at others’ costs.
These people are usually rude, abusive, and cold-hearted. By dominating the
conversations, aggressive communicators fail to listen to the problems of others.
Common features to recognize aggressive communicators are frequent interruptions in
conversations, intense glaring, excessive condemning nature, and loud-mouthed.
However, individuals with this conversational nature have many possible chances of
becoming great leaders in the future as they can make others follow them.
3. Passive-Aggressive Communicators:
Passive-Aggressive communicators are those individuals who are passive in their real-
life but have an untold resentment that they reveal in indirect ways to others. People
of such nature feel stuck, confused, and become guilty of their mistakes.
Common traits to identify passive-aggressive communicators are difficulty expressing
their resentment, unusual muttering, and excessive sarcastic statements.
These individuals generally show those facial expressions that do not match what they
are feeling or meant to say.
38. 4. Assertive Communicators:
Assertive communication style is a type of communication style where individuals
convey their feelings and thoughts to others and advocate for their rights without
violating other people’s rights.
Assertive people care about their time and emotional needs and respect the
problems and rights of others.
Traits to recognize assertive communicators are stating and pronouncing the words
clearly and firmly, having a relaxed body posture, maintaining good eye contact,
controlling emotions, having a calm tone of voice, and standing up for their rights.
People of such nature often use ‘I’ statements to imply ownership, and they can
deny other people politely.
It involves listening to others’ problems, having a compassionate nature, and
developing a matured mindset by denying certain important aspects for personal
development. People should develop an assertive communication style to develop
an unbiased perspective and maintain and control the balance of emotions and
work.
39. 2. HOW IS ROBOTICS FRAMING THE
INDIAN EDUCATION SYSTEM:
Learnings:
From creation of an exciting learning environment to wider range of career opportunities,
robotics will play a multi-faceted role in the Indian education.
Robotics and its advantages:
There are a plethora of opportunities served by the inculcation of robotics in Indian
education system.
Creation of an exciting learning environment Robotics provides a fantastic opportunity to
learn how real-world creativity reveals from student’s interaction with their various
environments: Physical, social, and cultural.
Undoubtedly, there’s an excellent creation of an exciting learning environment as students
practice to learn how to use constraints and affordances of robotic construction kits while
also engaging in collaborative problem solving in order to build their functional and
authentic robotic device.
40. Quick decision-making ability:
As there are no fixed method of programming and designing a robot. Therefore, robotics
highly encourages students to analyze and think of various possibilities by reasoning and
logical methods to come up with the best suited method. This in turn, enhances their
decision-making ability and further empower them to level up as quick independent
decision-makers.
The wide range of career opportunities:
Robotics involves various principles, practical and theoretical knowledge of engineering
fields such as – Automobile, Electrical and Mechanical Engineering as well as other IT skills,
and thus opens a plethora of exciting career paths for students.
The advantages of promoting and inculcating Robotics in Indian Education System are many,
may it be the ability to take risk or to generate a collaboration and teamwork among
students, Robotics education will develop a strong and determined attitude among the
many Indian flag bearers.
41. 3. WHAT ARE SOCIAL SKILLS AND HOW TO
POLISH THEM?
Learnings:
Social skills refer to a set of soft skills that enhance the quality of interpersonal communication,
social interactions, and professional and personal existence.
In a professional field or inside a closer social circle, a person communicates through various
channels, verbally with the help of words and ideas, and non-verbally, using subtler expressions,
body language, eye contact, and hand gestures.
The ability to convey a particular thought to the people in front, the art of selling one’s
proposition to dynamic social groups with conviction, summarizes the critical aspects of
socialization.
If we rewind the clock, ‘social skills’ shall not mean the number of Facebook friends one has and
shall fit itself into being a fine set of ideal, tangible techniques used in intellectual
conversations.
A widely believed disposition about extroverted people having an upper hand in socialization can
be debated. A healthy communication channel requires empathetic speaking on the one hand,
and active listening on the other.
A calmer, quieter self can also excel in maintaining a quality network, both personal and
professional.
42. How to Polish your Social Skills:
1. Be a part of small gatherings:
It is always easier to start a conversation with an inner circle of like-minded people than to hit
large crowds directly.
2. Be present in the conversation:
Show it to the group of people or individuals by offering subtle compliments, nodding to their
statements as a sign of comprehension.
3. Create a space for others in the conversation:
When it seems complicated to navigate the conversation further, invite others to talk. Ask open-
ended questions, the responses to which are easy to build upon.
4. Observing one’s body language:
It is essential to learn one’s bodily gestures and how they might be perceived. Standing in front of
a mirror and practicing different social scenarios can work wonders.
5. Have substance to make intelligent points in a conversation:
Reading about the things happening around and carving out an ideology to pitch in can give a
head start in intimidating conversations.
43. 4. 5 PERSONAL LOAN MYTHS WHICH ARE NOT
TRUE AT ALL
Learnings:
Personal loans are unsecured loans as the applicant does not need to place his or her
assets as collateral for the borrowed loan amount.
Rohit Garg, Co-Founder & CEO, Smartcoin says, “Being unsecured and easy to avail of has
generated an air of mystique around personal loans. Often, people are filled with
apprehension and distrust when it comes to applying for a personal loan as there are a
number of misconceptions surrounding them.”
Myth – 1 Personal loan has a high rate of interest. Not true.
The rate of interest on personal loans is established by financial institutions and lending
companies on the basis of an individual applicant’s repayment ability and CIBIL score.
Myth – 2 Only those people who draw salaries can apply for personal loans. Not true.
Even individuals who are self-employed or are running a business can receive personal
loans as the approval of a said loan amount is more or less dependent on the applicant’s
credit history.
44. Myth – 3 Personal loans do not extend a prepayment option. Not true.
Personal loans do carry a prepayment option as borrowers can foreclose after paying a
particular amount as foreclosure charges.
Myth- 4 Banks are the only lenders of personal loans. Not true.
Move over traditional legacy banks, as there are numerous NBFCs and digital lenders
who are offering personal loans these days.
Myth – 5 Personal loans involve a long processing time. Not true.
As personal loans are unsecured in nature and do not require collateral security, they
are readily disbursed in a span of 2-7 working days from the time of the initial
application, and that too with negligible documentation.
Garg adds, “One should make sure to commit ample time towards market scrutiny and
comparative analysis between different lending companies and their financial products to
find the best personal loan with the most attractive interest rate.”
45. 5. NATIONAL PENSION SYSTEM: KEY FEATURES
TO KNOW BEFORE OPENING AN NPS ACCOUNT
Learnings:
National Pension System (NPS) has become one of the most popular retirement saving tools
among the investing community.
NPS works out to be a good substitute for EPF (Employee Provident Fund) which comes with
an additional tax benefit.
Before opening an NPS account, here are some features to keep note of:
1. Age Criteria:
Under the new user-friendly rules, the PFRDA has also increased the age limit of the Indian
Citizens who can apply for NPS. Senior citizens can now opt to enrol in this scheme and
further create a retirement corpus for their old age while enjoying tax benefits that comes
wrapped with it. All citizens between 18 to 70 years of age can join the scheme regardless
of their gender or income-based criteria.
46. 2. PRAN Account:
Individual subscribers are issued a unique identification number called Permanent
Retirement Account Number (PRAN). This account can be opened with as low as Rs.500
contribution individually. The minimum annual contribution required to be made is
Rs.1000 only and there is no upper limit of contribution.
3. Pension Fund Manager:
The Pension Fund Managers that are appointed by the regulator prudentially manage
subscriber funds through investments across various asset classes. They are critically and
closely observed while their performance is constantly kept under the radar by the
regulator.
4. Early Withdrawal:
In order to make NPS user-friendly, the PFRDA introduced the option to prematurely
withdraw funds due to certain exigencies that may arise at any time. Those who do not opt
for early withdrawal and wait for their retirement, on reaching the retirement age of 60
years, the option to withdraw a lump sum and deferred pension can be availed by them.
5. Enhanced Investment Period:
Under the National Pension System, one has the option to stay invested even after the
period of investment comes to an end by extending the scheme tenure. The Enhanced
Investment Period option, allows the subscriber to accumulate a higher corpus by staying
invested for an additional period in the scheme.
47. 6. 7 FACTORS TO CONSIDER WHEN
INVESTING THROUGH SIPS
Learnings:
What’s the right strategy for investing when markets are volatile? A time-tested investment
strategy that works well in the long term is Systematic Investment Plan (SIP).You can
systematically invest small amounts at regular intervals, be it weekly or monthly, in an SIP. It
removes the potential mistakes one may commit, by timing the market. Besides, it ensures you
stay on the right track for your long-term financial goals.
So, let’s look at seven factors you may want to consider when investing through SIPs.
1. Set a time-frame for your financial goals:
When planning for your financial goals, adopt a systematic approach. Categorise your SIP
investments based on time-frames such as:
Short-term goal – to be achieved within 3 years
Mid-term goal – to be achieved 3 to 5 years
Long-term goal – to be achieved after 5 years
48. 2. Ascertain how much you want to invest:
Typically, most mutual fund schemes via SIP allow you to invest with a minimum of
Rs 500. But to know your SIP amount needed for your intended goals, estimate the
future cost of your goal, duration by which you plan to achieve and the probable
returns you are expecting from the investments.
3. Diversify investments according to your risk appetite:
Your risk appetite or tolerance is the amount of risk you’re prepared to take, when
investing in a specific asset-class. Every investor’s risk appetite is distinctly different
and is typically influenced by several factors such as the disposable income,
investment horizon, and, most importantly, age and immediate financial or needs.
4. Top up your SIP contribution periodically:
As your income grows, allocate a higher amount of your income as an SIP top-up.
Doing so can help you reach your financial goals faster. Ensure that your
contributions stay in line with inflation. Also, evaluate and find out if the top-up can
be done in the existing SIP rather than initiate a new one.
49. 5. Have a separate SIP for each goal:
You may have multiple objectives to accomplish, like saving for a vacation, paying for
your child’s education, saving for retirement and so on. Having separate SIPs for every
goal can help you gauge your investment smartly. Find the appropriate asset allocation
that is suitable for a particular goal and look at investing in the correct category of
mutual funds in line with your timeline.
6. Review the portfolio performance once in 3 or 4 years:
A periodic review and rebalancing of your SIP mutual fund portfolio are essential.
Doing so once in three or four years would help to remove non-performers and to
boost your portfolio returns.
7. Stop the SIP on reaching your specific goal:
Once you reach your desired financial goal, you can stop or redeem your SIP and use
the money to address the goal. Since various factors and circumstances may change
during your SIP tenure, you may meet your financial goals much in advance. In that
case, you can channelize this surplus to other goals.
50. 7. YOUR MONEY: FIVE TIPS TO SELECT A
MUTUAL FUND THAT’S RIGHT FOR YOU
Learnings:
Align your goals with the objective of mutual funds to make the most of them. This
assures that your money is working towards your goal even as you sleep
We often come across terms such as ‘world’s best performing’ and ‘highest returns’ when
selecting investment avenues and mutual funds. It’s easy to get swayed by them, as we all
want to buy the best performing mutual funds.
Here are five pointers to help you decide where to invest:
Set your goals:
Everything that you do for your investments depends on your goals. Your goals could be
getting a higher return than your bank savings, planning well in advance for a wealthy
retirement, saving taxes, children’s wedding or education abroad, etc.
51. Ignore market noise:
You may see and hear various things, but don’t fall for big words or follow the herd blindly.
Consider all risks before investing. Remember, your goals are different from that of other investors.
Match MFs to your goals:
You have to align your goals with the objective of these funds to make the most of them. This
assures that your money is working towards your goal even as you sleep. And for that, you need to
be very clear about what your goal is. Check whether the mutual fund aligns with duration, asset
class, diversification. It then becomes simple to track how your finances are moving in terms of
your predetermined goals.
Look beyond short term performance:
Now, we are not saying that you should not look at the past performance; of course, you should. It
gives a fair idea where the fund has performed and where it faltered. But don’t base your
investment decision entirely on that. More than the recent performance of a fund, what is
important is the fundamentals of the fund.
Know your risk appetite:
There is a risk in every type of investment. Mutual funds are also subject to market risks. So
consider all the risk factors before you jump into mutual funds. Risk appetite is the level of risk
you as an investor are willing to accept while pursuing your financial goals.
52. 8. TOP 5 INVESTMENT OPTIONS TO LOOK
AT BEYOND BANK FIXED DEPOSITS
Learnings:
The interest rates for fixed deposits are at an all-time low. If we consider inflation, the
returns are negative. For someone wanting to have a regular income, fixed deposits are no
longer the ideal choice. If the person is in a higher tax slab bracket, the returns are in
negative territory. The rise in interest rates seems like a far-fetched dream, at least for now.
Fortunately, there are other options that can offer higher returns for those seeking regular
income while also ensuring the safety of their money. Here are some options:
Corporate Bond Funds:
Corporate Bond Funds are debt mutual fund schemes that invest in corporate bonds or non-
convertible debentures. Since these funds invest at least 80% of their assets in the highest
rated corporate bonds, the risk is considerably lower. These funds have delivered returns as
high as 9%. Hence, they are ideal for someone looking for regular income with low risk.
Another plus is that if the investor holds these funds for three years, he gets indexation
benefit since these funds are classified as debt funds while computing capital gains.
53. Pradhan Mantri Vay Vandana Yojana (PMVVY):
This scheme is backed by the Government of India and offers an interest rate of 7.4%. However,
this scheme has a lock-in period of 10 years. The interest is payable monthly. Considering the fact
that it is backed by the Government of India, it makes an ideal choice for extra conservative
investors.
NPS Tier II account:
If the investor has an NPS Tier I account, he can voluntarily open a Tier II account. NPS Tier II
account scheme G, which invests in government bonds and other related instruments, has given
double-digit returns in the past one year. However, the Sec 80C benefit is not available for
private sector individuals.
Senior Citizens Saving Scheme (SCSS):
This scheme is ideal for senior citizens. Any individual above 60 years can invest in this scheme.
The present interest rate is 7.4% payable quarterly. The maturity period is 5 years. Even benefit
under Section 80C is available for this scheme. However, there is a cap of investment limit of
Rs 15 lakh.
Short Duration Funds:
These funds are considered as an entry point for those investors who do not mind taking a slight
risk in favour of higher returns. Since these funds earn interest income as well as capital gains,
they offer higher returns than fixed deposits. These funds are not affected by short term cycles
of interest rate fluctuations. These funds are able to offer steady returns and are considered as
tax-efficient than bank fixed deposits. They are treated on par with debt funds, thus offering
indexation benefits for long-term holders. One can withdraw funds through a Systematic
Withdrawal Plan (SWP) according to his needs.
54. 9. MUTUAL FUNDS: SIX KINDS OF HYBRID
FUNDS: KNOW WHAT’S BEST FOR YOU
Learnings:
Bucketed based on the asset class allocation and risk-factor, each type of hybrid fund
has a different investment style and purpose. Assess each type to pick the right one for
your portfolio.
Here are the six key categories of hybrid funds:
Aggressive hybrid fund:
This category of hybrid funds is at the other end of the spectrum compared to a
conservative hybrid fund and is good for investors who have a higher (equity like) risk
appetite. The mandate is to allocate 65-80% to equity across market capitalisations (large-
cap, mid-cap and small-cap) and the remaining to debt and other asset classes. The
category is ideal for investors who are looking for equity-like return (as 65%-80% is invested
in equity) but with lower volatility (balance 20%-35% is invested in fixed income). But as the
underlying is heavily tilted towards equities, investors should consider this product for a
period of more than five years.
55. Conservative hybrid fund:
A conservative hybrid fund invests only about 10-25% of its total assets in stock markets, i.e.,
equities. The remaining portion is invested in debt instruments that include corporate and
government bonds and non-convertible debentures. While the debt investment aims to provide
regular and stable income from coupon payments, the equity portfolio has the potential to
generate better returns through capital appreciation and dividends over time. If you are a risk-
averse investor with moderate returns expectation, then this category of hybrid funds is likely to
suit your investment style.
Dynamic asset allocation fund:
A balanced advantage fund or a dynamic asset allocation fund are hybrid mutual funds which
increase / decrease allocation between equity and fixed income based on certain pre-defined
valuation parameters. An investor can invest in balanced advantage funds if they want to avoid
timing the market levels. The fund balances between equity and fixed income instruments
depending on market conditions to earn reasonable returns with low volatility as compared to
pure equity funds.
Equity savings fund:
The equity savings fund is another way of diversifying the portfolio as the fund is a prudent mix of
equity, debt and arbitrage. An equity savings fund does just that, by allocating a minimum of 65%
in equity and arbitrage positions and the balance in fixed income instruments. The arbitrage
positions create a hedge in the portfolio and the focus is to generate regular income, whereas the
allocation to equity focuses on capital appreciation.
56. Arbitrage fund:
Arbitrage funds take advantage of the price differential of a stock either on two different
exchanges or between two different markets (the cash and derivative market). By creating
an arbitrage position, the fund manager ensures that the spread between the two markets
is captured and this translates into returns for the investor. With the advantage of equity
taxation, an arbitrage fund can be an investor’s choice for parking short term surplus
liquidity and earning decent returns.
Multi asset allocation fund:
Going one step beyond your traditional hybrid funds, the multi asset fund invests in at least
three different classes with a minimum of 10% allocated to each. A mix of three asset
classes can help the investor attain the goal of asset allocation via a single product. Since
every asset class behaves differently, diversification safeguards the portfolio against
downside emerging in a single asset class. A mix of asset classes which have low correlation
amongst them is a good way to generate decent returns with low levels of volatility.
Because of this, the fund’s equity exposure is partially hedged and the volatility is reduced as
compared to the completely unhedged equity exposure in aggressive hybrid fund. The fund
also offers equity taxation. Each type of hybrid fund has a unique investment style. Investors
must compare these plans vis-à-vis their investment needs and pick the ones that best address
them.
57. 10. WHAT IS AN INTERPERSONAL
RELATIONSHIP?
Learnings:
In simple words, International Relationship is a legit connection between two or more
individuals that enjoy being in each other’s company. The main block behind this strong
bond is attraction.
The contextual settings of interpersonal relationships change with different relations like
family, companionship, friendship, marriage, relations with partners, work, neighborhoods,
clubs, love, and so on. Also, such relationships might be managed by mutual understanding,
social custom, law, or common arrangement or the structure of the society all in all.
Such strong bonding may happen between two colleagues working in the same institute,
love bonding, relatives, parents and children, friends, students and teachers, and more.
The analysis of interpersonal relationships revolves around different branches of the social
sciences like psychology, communication studies, social work, anthropology, human science,
arithmetic, and so on.
58. An interpersonal relationship can develop amongst any of the following:
Individuals working in the same organization.
People working in the same group or team.
Relationship between a man and a woman (Love, Marriage).
Relationship with close relatives and family members.
Relationship of little kids with their parents.
Relationship between companions or friends.
The relationship developed in a group like students’ relation with the teacher.
We humans are social beings and we all have a longing for interpersonal relationships, which is
a human association with each other, whether it’s a companion, a friend, kin, a parent, or a
perfect partner. We all flourish when we have the social collaboration and backing of someone
else in our life. Interpersonal relationship as a social affiliation, connection, association, or
affiliation between at least two individuals enables us in flourishing with the needed social
interactions and support.
