GOODFUNDSADVISOR

Wednesday, October 16, 2019

IS YOUR MONEY SAFE IN HDFC BANK?

Since this afternoon, an image has gone VIRAL of an image of a HDFC bank passbook

The message goes something like this.
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HDFC BANK Using Stamp on Passbook and declaring they are not liable to take the responsibility over one Lakh....that means savings upto *ONE LAKH ONLY is safe in Private Banks*
.
.

Along with this message, some people even posted the following message which doubted even the fundamentals of HDFC BANK !!

I got so many messages and calls from my investors whether they should pull out money from HDFC BANK.

SRIKANTH MATRUBAI says :

Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India GUARANTEES that in case of an unlikely bank failure deposits up to ₹1 lakh is insured and paid back to the depositor.
So in effect whether it's your
PSU (GOVT) Bank SBI
or the private HDFC BANK,
your neighbouring CO-OPERATIVE BANK,
even branches of Foreign banks operating in India

your money is GUARANTEED upto Rs.1 lakh (only) by the DICGC.

The ₹1 lakh limit covers both principal and interest amount.

This amount is PER BANK.

Later, HDFC BANK too came out with a clarification on this.

CAVEAT ,:

If your bank has NOT paid the premium payable to DICGC in time, in that case DICGC will not pay the said Rs 1 Lakh too.

But never in history has any bank made such a stupid blunder !

The deposit insurance cover was last hiked in May 1993 to Rs 1 lakh from Rs 30,000 in July 1980.
The present Govt is seriously considering INCREASING this limit soon.

It's simple DICGC rule which is printed by HDFC Bank.

In fact, this should be followed by all the banks

In fact, this practice should have been followed long back and followed by all the banks and thankfully HDFC BANK has taken the lead in this direction and deserves to be applauded.

I sincerely request all my readers and investors to IGNORE this kind of malice fake news and rather focus on creating WEALTH.

DO NOT FALL PREY TO MALICIOUS SOCIAL MEDIA MESSAGES

However, one thing which you should make NOTE of is that only 1 lakh is GUARANTEED but any amount above that you may get nothing if the Bank collapses.

So IT MAKES SENSE TO DIVERSIFY YOUR SAVINGS AND INVESTMENTS INTO DIFFERENT BASKETS AND NOT ONLY PROTECT YOUR HARD EARNED MONEY BUT ALSO ENJOY THE BENEFITS OF COMPOUNDING.

FINALLY,
While you already are aware that MUTUAL FUNDS ARE SUBJECT TO MARKET RISK...
It would also be better to be aware that your FIXED DEPOSITS (above 1 lakh) IS SUBJECT TO SYSTEMATIC FAILURE RISK.!!
So, you could look at alternatives to FD like
Liquid Funds,
Short Term Fund
Income Funds,
Do contact your Financial advisor before investing.

Avisit http:/http://https://t.me/MutualFundWORLD/

Wednesday, October 9, 2019

Should you EXIT from Reliance mutual fund?

Greetings,
Friends and Investors….its always a pleasure interacting with you.

Wishing you a very Happy Deepawali in advance and hope you had a Dhamaka Dasara.

I have been in Investment field for more than 28 years now (I am not exactly a BUDDHA but just started very young !!!) and I have seen many of my investors becoming CROREPATIS over the years and very soon some of my investors will be graduating to become ARABPATIS too!

Cant wait to see that day.

Mutual funds has been a integral part of Wealth Creation Journey for me and my investors and RELIANCE MUTUAL FUND has been right at the top with its blockbuster funds be it RELIANCE GROWTH FUND, RELIANCE VISION FUND RELIANCE EQUITY OPPORTUNITIES FUND (NOW RELIANCE MULTICAP FUND), RELIANCE SMALL CAP & in recent times, RELIANCE RETIREMENT FUND.

Many of you would have invariably invested in some of these funds and would obviously be worried, concerned after hearing the news that the Reliance Mutual Fund is changing into NIPPON INDIA MUTUAL FUND.

THE BACKGROUND FOR THE CHANGE :

This change has been necessitated because of Reliance Capital’s decision to sell its stake to their Japanese partners, Nippon Life International.

BACKGROUND OF NIPPON

Nippon Life International is Japan’s largest and Asia’s second largest Insurance Company and was founded 130 years ago. It has been a consistent performer and is now widely recognised as a global player in Insurance and Asset Management.

Nippon Life International is Japan’s largest and Asia’s second largest Insurance Company and was founded 130 years ago. It has been a consistent performer and is now widely recognised as a global player in Insurance and Asset Management.

They are like Japan’s LIC and in fact their assets under management are double that of LIC of India.

Nippon Life is a Fortune 500 conglomerate with 130 years of success behind them.

Being an Insurance Company, they have very sound risk management processes and global expertise.

More importantly, they have been a co-owner of Reliance Mutual Fund since 2012 and have gradually increased their stake, as they developed their familiarity with Indian Asset Management industry.

FOR THOSE WHO UNDERSTAND KANNADA, CAN WATCH MY INTERVIEW IN THE CHANNEL NEWS18 ON THIS SUBJECT BY CLICKING HERE

http://https://youtu.be/NNRFQrjl-8s/

I WAS INVITED BY THE TV CHANNEL NEWS18 AND THE ABOVE IS THE SHORT CLIP FROM THE SAME

WHAT TO EXPECT FROM THE CHANGE IN OWNERSHIP ?

While you would obviously be impressed with Nippon Life’s stability and global prosperity expertise, you have been keen to understand what to expect from Reliance Mutual Fund schemes after this Changeover.

I want to tell you that the entire management team, the fund managers and the customer service team, everything remains the same. The only change is that you need to now write your cheques in the name of Nippon India Mutual Fund!

For existing investors, the Fund Objectives and portfolios will remain the same. You can expect Nippon Life’s robust risk management processes and expertise in global markets to make your investments in the schemes perform better.

The only difference here is that scheme names will now change. Large cap Fund will now be called Nippon India Large cap fund for example.

SO WHAT SHOULD AN INVESTOR DO?

Suppose you are travelling from MUMBAI to PUNE.
On the way, when you reach Lonavala, you are informed that the owner of the bus that you are travelling has changed.
Now what has happened is the only the owner has changed
The bus is same
The Engine is same
The driver is same
The tyres are same

Will it not be foolish to change the bus now just because the owner has changed.

Likewise just because the owner of the fund you have invested has changed doesn't mean you should jump out of the fund and move to another fund!

· Should you move out of Reliance funds (Nippon funds) ?

So lets see whats the change……

· if your objective is the same,

· the fund objective is also the same.

· Only the promoter is changing, rest everything remains the same.

· There is no change in the fund managers and in the investment philosophy of the funds.

· So it doesn’t make sense to move out !

So, my advice to you friends is to continue staying focused on your goals and stay invested as there is no change at all except for Nippon Life, a global leader, taking controlling stake in Reliance Mutual Fund.

· From an investor point of view, if you are currently happy with your funds and achieving your goals, then it is recommended to stay invested in the funds, there is no need to change anything.

Sundeep Sikka, who continues to be the CEO of Nippon India Mutual Fund, says that naam hai Jaapani – lekin – apni team hai Hindustani.

So let’s welcome the new name of our very own mutual fund and sit back and watch our investments being managed with even more robust processes and expertise.

Thank you and wish you a great year ahead.

Happy Investing.

Srikanth Matrubai

Watch my interview on the topic in the channel NEWS18

http://https://youtu.be/NNRFQrjl-8s/

Also visit http:/http://https://t.me/MutualFundWORLD/

Tuesday, September 17, 2019

DONT REDUCE EXPENSES ....DONT STOP YOURSELF FROM BECOMING RICH !!

My latest article in the Kannada Magazine PROFIT PLUS titled
DONT REDUCE EXPENSES.......DONT STOP YOURSELF FROM BECOMING RICH went viral within a couple of days it getting printed.

The headlines was curious and attractive enough.
But regular readers of mine already would be knowing what exactly I intend when I say DONT REDUCE EXPENSES.

A normal layman is always concerned about the costs and expenses.
Especially the day to day expenses.
Last month, it was about Onions touching Rs.100 per kg,
This month, its about Crude and consequently PETROL rising
and next month, he will be worried about the expenses he is going to have in form of Dasara and Deepavali.

Its essential that you need to COME OUT OF THE MINDSET OF always thinking of Expenses and rather divert it to the much more impactful INCREASING INCOME.

I always keep telling my investors that
"there is a limit to how much you can save on expenses....
But there is NO LIMIT to how much you can EARN!

If you ask, the majority will say "Expenses is in my hands but Income is not"

I would actually say BOTH INCOME AND EXPENSES IS IN YOUR HAND.
You just need to understand and focus your energies on both, especially INCOME.
By default, our genes, thinking, action, everything is focussed on HOW TO SAVE, HOW TO SAVE, HOW TO SAVE.

But, step back a little and think, if the same time, energy had been spent on HOW TO EARN, HOW TO EARN, HOW TO EARN, your life would have been a much much wealthier one.

That does not mean, be a spendthrift. Controlling expenses is the 1^st step to getting your finances right. If you don’t know how to control your expense, you won’t be able to save.
Please note that I have used the word “Control” not “Cutting”.

Some would come running and say
"Hey Srikanth, I am a salaried. My income is FIXED. There is no way I can earn more".

I would say "Why not? There is huge number of ways you can earn.
Why dont you do PART TIME job?
Why dont you do Tutions at home?
Why dont you do Tailoring at home?
Why dont you write articles during spare time?
Why dont you learn a new hobby (cake making, cloth bag making,etc) and start earning?

If the intent is there to LEARN AND EARN, the routes will AUTOMATICALLY open up.
Especially learning new things like Cloth Bag making may even open up loads of money to you.
In fact, I have seen some of investors actually resigning from their MAIN jobs and now doing full time business in what started as a Hobby for them.
And, they are earning MORE THAN WHAT THE SALARY THEY WOULD HAVE GOT.

So, it all boils down to FOCUSING ON EARNING MORE

I agree, that learning a new hobby/skill takes time and implementing it and making it successfully even more, but look at the reward you will get.....because once you are successful, mark my words, you will be achieving your goals much more earlier than you ever imagined.

Concentrate your energies and focus your expertise on Earnings.

Then, only then, you will become a Contented Man even while being a Common Man!

There is a LIMIT TO SAVING but THERE IS NO LIMIT TO EARNING.

WHAT ABOUT RISK IN BUSINESS??

Risk is something that can cause bankruptcy or severe loss of capital.

Hence its absolutely imperative that you have sufficient back-up before venturing out on your own.

HAVE A FOOL PROOF PLAN

You need to PLAN.
In fact, even in the Roman times, some intelligent Slaves would earn enough money to buy themselves freedom from slavery and even get slaves of their own!!

Learn to Earn
Earn to Learn.
Keep on adding skills to your Portfolio.
Then you will keep on increasing your income and no one can stop you from becoming RICH.