Monday, December 11, 2017


Mass Hysteria regarding the safety of FD money is doing the rounds in Social Media...especially in WhatsApp.
Warning message to FD investors that their money is in DANGER is sending Shivers.

Lets understand and see whether we should be worried

1. What is this FRDI Bill?

FRDI BILL is the Financial Resolution and Deposit Insurance Bill.
This Bill’s objective is to monitor the Financial Institutions and Banks, anticipate risk of their failure, take corrective action and resolve them through a RESOLUTION CORPORATION.
This Resolution Corporation will be vested with powers to BAIL-IN a Financial Institution/Bank by way of cancelling, modifying, replacing and even changing any form of a liability with the specific intention to ensure that the Institution/Bank is protected from the risk it is facing.

India’s NPA at 9.6% (as per RBI report) is quite huge and this bill will to a huge extent drastically cut down this NPA levels and makes our Bank strong and hence the reason for bringing this bill.

2. What do you mean by Bail in?

Bail-in means preventing a company (here BANK from failing by converting debt into equity, selling off Bank’s assets, etc) without even needing the approval of Shareholders.

The Biggest SHIVER comes in the form of the Corporation having the power to CANCEL REPAYMENT OF DEPOSITS, CONVERT DEPOSITS INTO LONG TERM BONDS AND take all necessary action to protect the Bank.

Social Media, especially, WHATSAPP is full of messages which state that your BANK FD is in danger of not getting repaid to you.

In fact an online petition against the Bill NoBailIn has already attracted more than 1 lakh signatures!!!


It is a given that people believe that Bank FDs are risk-free.
Yes. It sure is!
All Deposits in Banks in India are insured for a MAXIMUM of Rs.1 lakh by DEPOSIT INSURANCE & CREDIT GUARANTEE CORPORATION.
Note..only  upto Rs.1 lakh even in the current form!!!!
Yes. Even the present Deposit Insurance is limited and you better know this now rather than later.
The DICGC will cease to exist once the FRDI comes into effect.
Does that mean the 1 lakh insurance guarantee also goes away??

The FRBI Bill HAS NOT MENTIONED about this Guarantee in the bill.
But, there is a provision wherein it has allowed the RC to set the insured amount limit.
The present rules say that your 1 lakh is GUARANTEED but above that you may get nothing if the Bank collapses.
But, the FRDI Bill says that above the limit (not yet specified), the balance of your deposit will get CONVERTED into a longer term instrument.
Which actually means that in the present regulations, your entire money could be LOST but in the new BILL.....the Bank WILL ACTUALLY owe you money even over and above the Insurance Limit!!!
Most importantly, the new FRDI Bill clearly says in case the FD is to be cancelled, consent of the Depositor is NEEDED (Section 52(7)).

Even Private Banks were saved by RBI.
Advance and always take care to ensure that you do NOT put your money in CRITICAL BANKS.

Yes. Upto 1 lakh it indeed is.
And even here the limit of 1 lakh could well be actually INCREASED.
Remember this limit of 1 lakh was fixed way back in 1993...a full 24 years back.

Also, The Insurance limit has been increased several times from the lowly Rs.1500 in 1961 to the present Rs.1 lakh. So, an increase in limit is a given.

In fact, the Bill very clearly has mentioned that FD, RD are EXCLUDED from the Bail-In Provision!!!!

The Government has gone overdrive and issued clarification after clarification that the Depositors will be protected and assured IMPLICIT GUARANTEE.
So...for now..RELAX.
So, whether in the present form or in the new Bill your FD money upto Rs.1 lakh is INSURED.
Thus, the risk is the SAME in future as it is now. The new BILL does not alter this feature.
Your money in Bank FD is safe for now and even after passing of this FRDI Bill.

By the way....upto 1 lakh ony!!!


The New BILL will grade all the Financial Institutions including Banks as Low Grade, Moderate Grade and Critical Grade.
Thus, you, as an FD investor, will know the Health of these Banks well in advance and can always avoid Banks which are in Critical Grade.

Worried about the safety of your FD money in Bank with the new FRDI Bill??

Then read

No bank has collapsed since 1961.
Yes...there are cases like Global Trust Bank..and even though these were private Banks,  RBI intervened and ensured that the same were taken over by some other bank and Depositers were saved.
Indian Banking System is quite strong and RBI has been doing a yoeman’s job for decades now.

If you have say 5 lakhs FD ....right now only 1 lakh is insured and not the entire 5 lakhs.
The same situation continues in the new FRDI rule too.
So, why this hue and cry??

Do not get misguided by Social Media.
Your money is safe.
Do not believe bullshit stories that people like Vijay Mallya's default will be put on your shoulders.
Nothing of such sort is being incorporated in the new bill.

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 Funds,
Income Funds,
Do contact your Financial advisor before investing.

Please join my FREE TELEGRAM News Channel


Best of luck,
Happy Investing,
Srikanth Matrubai

Friday, December 1, 2017


It is the job of Media to keep posting ATTENTION grabbing Headlines and they spare no efforts in ensuring that.

Let us look at 2 examples both of which were shared by my investors..


This investor...named Mr.VM wrote
"Srikanth Bhai...
Look at this headline...and sent a link to an article which proclaimed FUNDS THAT TRIPLED INVESTORS MONEY IN 4 YEARS!!!
You did not recommend this fund....See this Escorts High Yield Equity Fund it has given 23% CAGR for the past 5 years"

I said "Cool down VM bhai..

Tripled! But at what risk?
For Ex: Escorts High Yield Equity fund has an AUM of a paltry 7 crores!@!
(Large Cap as per the image shared....however Value Research puts the fund in Mid Cap Category and Moneycontrol puts the fund in Diversified Equity Fund category)
Even then 7 Crores is not a AUM which gives me comfort.
Here I request you to invest in funds which are some decent size to begin with.....It should be at least 70% to 80% of the Average AUM in its Category.
Also.....Expenses tend to HIGH for such very small funds which could definitely impact performance,especially when the markets tank and stay bearish for long periods.

Will you invest in such a fund?

Just imagine...if an BIG investor (or a group of investors) in that fund having Rs.50 lakhs decide to redeem all investment in one go....the impact on the NAV will be CASTROPHIC!!
About 14% of Fund Corpus will go out in 1 single day.
The Fund Manager will be forced to sell his BEST STOCKS to honour the redemption.


Lets take 2  more example :
True it has doubled....nay tripled in 4 years but has been an underperformer compared to its peers and is ranked a lowly 60th out of 94 schemes.
This particular fund has actually UNDERPERFORMED its category both for 1 year and 3 years.

Lets take one more example
This fund which has been highlighted at 4 row has been such an UNDERPERFORMER that it has failed to beat its Category for 3 years, 5 years and even 10 years!!
And, just 1 or 2 years of good performance has taken it to some top position and ATTENTION GRABBERS feast on such a bonanza and gullible investors who go DIRECT are trapped.
In Fact, Value Research says this fund is ABOVE AVERAGE in terms of RISK
and BELOW AVERAGE in terms of RETURNS.

As I said...numbers can be presented as one wants.
Attention seeking is the name of the game.
Do not fall into such a trap. 

Now..lets move to the

Then comes one more investor Mr.MPS and sends me a Newspaper clipping which says BITCOIN gained $1000 in 1 single day and asks me 
"Why did you not recommend me this....??
You are talking about SIPs which give me returns after 10-15 years but look at has given in 1 day what your SIP will not give even in 1 year"!!!
I said :"MPS Bhai...

Is Bitcoin regulated? My God....NO!!!

Is Bitcoin a commodity? ....NO!!

Is Bitcoin backed by any Tangible Asset?....NO!!

Is Bitcoin a Currency?....NO!!
Try paying your Income Tax with it and you will understand..

Is Bitcoin easy to understand?...NO! Even JP Morgan's CEO Jamie Dimon acknowledged that he didnt understand Bitcoins and says Bitcoins is worse than Tulip Bulbs!
If Global Banker doesnt under BITCOIN...will you and me understand it?
Do you want to buy something you dont understand?? NO...right...then why SPECULATE..

Is Bitcoin regulated?? ....NO!!!
No SEBI, No RBI, No FED to regulate...If someone frauds you in dont have anyone to turn to complain to and get back your investment..... You want to invest in something where there is no one to go to in case of a fraud?? NO...right..then stay away
Even RBI in its Feb 1, 2017 release has clearly stated that it has NOT ISSUED LICENCES TO ANY COMPANY TO TRADE IN ANY VIRTUAL/DIGITAL CURRENCIES. 
RBI has rubbed its hands off the matter by clearly mentioning that those doing so will be doing at their own risk!!

Finally, Dear Investor....BITCOIN or for that matter other Cryptocurrency are being used by Hawala dealers, Terrorists as its very very difficult to track those who trade in them. 
So...if you want to contribute to the TERRORISTS...go ahead and invest in BITCOIN. 

Having said this....Cryptocurrency could become legal going forward and could come under regulation but till then I follow the principle of A BIRD IN HAND IS WORTH MORE THAN 2 IN THE BUSH!!

Someone buying only in the hope that there will be another person who will PAY MORE for it and this cycle as long as its running the dance goes on. 
The moment the music stops we may well see LOTS OF BLOOD on the street.

You seem to be trapped in the FOMO syndrome ....FEAR OF MISSING OUT ....This is where majority of people lose money....
The cream is already gone...who knows whats in store

Remember the Japan Stock Market....
It has still not touched its Life Time High even after 28 years!!!!
You could just get trapped in exactly such a case

Play a game of Pokemon Go or Angry Birds and enjoy the weekend. 
Lets talk about some REAL investments next week!

Let the excitement settle....
Let the regulations set in place"""

As I said...numbers can be presented as one wants.
Attention seeking is the name of the game.
Do not fall into such a trap.


He knows what funds fit into your risk profile, time horizon.

Good luck,
Srikanth Matrubai

Please join my FREE TELEGRAM News Channel

Thursday, October 19, 2017



It has become inevitable to use Plastic and Virtual money especially after Demonetisation.

And it is a given that more and more people are using Credit Cards simply because they are NOT PAYING RIGHT NOW!
Using Credit Cards is a Double Edged Sword. It can cut both ways

Using Credit Card the wrong way is a CURSE indeed but Dr.Kent (Srikanth Matrubai) will here show you the way to how turn this into a Blessing!! Read on...

I have noted down some points using which you can ensure that Credit Cards does not HURT you but actually became a friend to you.

1. Plan your Purchase
Whether  you are buying with a Debit Card or a Credit Card always PLAN your buying.
Never ever buy on an impulse. Plan your Purchases beforehand.
If some Mind-Blowing discount does come up, pause for a minute and think whether you really do that product (mobile, Watch, TV, whatever)
If yes... only then go ahead & swipe that card.
Pause before buying. Even better have a Purchase Plan in place. 

2.  Use that card which gives you the Max Benefit
Now, that you have decided to go need to check which Credit Card will give you maximum benefit for that purchase.
For example :
With an ICICI BANK Credit Card, you would get 6% EXTRA discount in Big Bazaar
With an HDFC Bank Credit Card, you would get an additional Cash Back of 5% to 10% in Amazon/Flipkart
this will help you maximise the discount.
Go for one which gives Maximum Discount NOW rather than giving you Points later. 

3. Pay off ON TIME & PAY FULL
Saves huge interest and gives peace of mind
The toughest thing is to part with money. You postponed paying by using credit card but when the credit card bill comes, you cant postpone.
Never make the mistake of paying MINIMUM and carrying balance to next month.
The charges are huge and steep.
Pay off on Time.
Pay off Full. Never make the mistake of paying MINIMUM. The interest charged is in the high 30%s and burns a HUGE hole in your pocket.
If you do not have the money to pay, better take a Personal Loan and clear the Credit Card bill as Personal Loans are cheaper than Credit Card Bills.
SMART TIP : The MAXIMUM payment should go towards Credit Card bill rather than any other as its interest charges are sky high

Not many know this but using your Credit Card regularly and paying off on time improves your Cibil Rating.
This especially helps those who had a bad history while using Personal Loan or Home loan.
SMART TIP : Use Credit Cards regularly and pay off on TIME to improve your Rating.

5. Check Billing Cycle
Different Credit Cards have different billing cycle.
Using them judiciously helps you get MAXIMUM time to pay off the bill.

For Example
lets say Dr.Kent's Billing Cycle starts on 5th of every month and his bill due date is 24th.
Now, if Dr.Kent makes a transaction on 6th of November, then he has time till December 24th to make the payment without paying any interest on his bill. This is what is called INTEREST FREE PERIOD.
Now, if the transaction was done on 4th of November, Dr.Kent would have had to make the payment by 24th of November.
So, keep this mind while swiping your Card.
Buying on the day AFTER the Billing Cycle ensures that you get MAXIMUM period to pay off the bill. 

Almost all credit cards allow you to convert your purchases into EMI.
This helps especially if you bought something expecting to pay off by a foreseeable income but the income did not materalise.
Just call up the Credit Card issuer and lo! your Purchase is converted into EMI allowing to stagger your payment.
SMART TIP : Even EMI is not advisable...hence pause before making that purchase

How can anyone gain by using Credit Card? Yes you can.
Suppose you want to buy a TV for Rs.1 lakh and you DO HAVE THE CASH.
Instead of paying by cash, swipe the Card and pay on the billing date.
This helps you
a) By earning you INTEREST by investing this money for the differencial period
b) Using that particular card which gives you Reward Points/Cash Back, etc
An average 5% cash back is a normal payback on most cards with a cieling of about Rs.5000-.
So, you can easily gain Rs.5000/- for USING CREDIT CARD!!

SMART TIP : Use Liquid Funds to park your money which is not needed for short periods of time. 

8 ) Have limited number of Cards. 
I have come across investors who have even 12 cards. That requires lot of discipline and constant monitoring.
Just like how you cant handle more than 2-3 Mobile phones...likewise it makes sense to have limited cards.

Other points
a) Preferably use for Emergencies
b) Never go Overboard
c) Wherever possible use Debit Card

d) Never withdraw CASH from your Credit Cards. The charges are sky high. It makes better sense to SWIPE  a card than withdraw cash.
The charges start from the DAY you withdraw and you dont have a GRACE PERIOD for this.
Morever, Cash Withdrawals also attract UP-FRONT FEES too.

Finally, if inspite of your best efforts you have fallen in Credit Card, take a Personal Loan and pay off the Credit Card loan

Srikanth Shankar Matrubai

Equities is the best option to create Wealth
Mutual funds are the best way to participate in Equities. 

Get views, analysis, news and all about Mutual Fund investments by clicking the following TELEGRAM link

Sunday, August 27, 2017




How true!
The earlier you put your money to work, the more it earns for you. The earlier you invest, the earlier your money starts working for you.
So, instead of investing more money later in your life, invest small now to achieve the same desired target corpus.

You may feel that few months will not matter much. How wrong you are!!!
Even a small delay will have a huge cascading effect on your returms.

See the accompanying image : 

A dealy of just 6 months will result in a loss of nearly 10 lakhs !!

Also note that if you invest Rs.10,000 per month in MF at expected 15% CAGR.

In 15 years,it will be Rs. 61 lacs.

In 20 years,it will be Rs. 1.32 crore.

In 25 year, it will be Rs 2.65 crore.

In 30 years, it will be Rs 5.63 crore.

In 35 years, it will be Rs 11.41 crore.

You can see, every delay of 5 Years, it will make your corpus half of its value.
Money saved is Money Earned.

I have seen many youngsters say "I will start next week".
Saying to yourself “I will start next week” is nothing less than a disaster. This next week could well next fortnight, next month, next quarter and even next year. Time flies and the amount you need to invest will only increase. The hard truth is you just can’t afford to delay.
The cost of delaying your savings/investment is deadlier than even inflation.

This reminds of two lines in a hindi song of Raj Kapoor film

Jawani neeend bar soya

Buddapa dekh ke roya

Delaying exercising hurts building health.

Delaying investing hurts creating wealth.

"The best time to invest was 30 years ago, second best time is today."
- Warren Buffett

As Nike ad says, 'JUST DO IT.'

Even compensating for the delayed investment will be a herculean task.
So, instead of investing more money later in your life, invest small now to achieve the same desired target corpus.


Saturday, August 26, 2017


Lord Ganesh is revered as the Lord of Beginnings and Remover of Obstacles.
Lord Ganesha is one who is loved by young & old alike.
He is worshipped by Shivais, Vaishnavas and even Shakti Aradhakas.
Lord Ganesha is seen as Shrewd, Intelligent, Wise and Full of Knowledge.
His grace is absolutely essential for our Successful LIfe, be it Financial or Otherwise.
Here's how I connect Lord Ganesha with a Successful Financial Plan

Lord Ganesha's BIG Head indicates us to Aim BIG and achieve BIG.
Our Financial Plan should be such that we achieve something BIG in life.
Obviously this means that our focus should be on LONG TERM GOALS

Our Financial Plan should take into all the small Nitty Gritty Minute Details which could create obstacles in achieving our Long Term Goals.
The Small eyes shows that we need to CONCENTRATE on minute things which look small but not actually be so.
Remember : A Small Leak can sink a HUGE SHIP!

A saying goes "A Good Listener is a Good Leader".
Likewise keep your Ears Wide open to absorb knowledge from all corners and listen to Experts whenever & wherever possible especially when it is from a person like SRIKANTH MATRUBAI!!!

The Small Mouth of Lord Ganesh is a indication to us to Talk Less, Talk Sense and Work More.  Also dont be loud mouthed with your Finances, discuss your investment plans only with trusted persons like SRIKANTH MATRUBAI!!

The Single Pointed Tusk of Lord Ganesh indicates us to discard Duality from our minds. Have a Clear Cut Definite Goal and Focus on 1 Goal at a time and then move on to another. Dont jump from one target to another in between without reason.

Your Financial Plan should have the flexilbility and adaptibility to recognise and weed out the Rotting Apples and retain performers. Very important in an ever changing circumstances. Remember a Trunk has the Capacity to uproot a Tree and at the same time, even pick a Needle!
Your Plan should be that Flexible!!

The Large Stomach shows us that our Plan should have the wherewithal to withstand and digest the Volatility. It should have an ideal mix of Debt, Balanced and Equity Funds.
Develop to Digest all the volatility. Have patientce.  The BIG Stomach shows Acceptance.

While some funds/Stocks could look hugely attractive with all indications of being the next multibagger, stay calm,  let the news flow filter out and the dust settle and take required action once the Air is cleared.

Lord Ganesha's vehicle is the small MOUSE.
Mouse cuts Ropes that Bind. Cut desires that make you spend more and prevent from Investing.
Keep Desire of Devil under Control.
Ride it rather than making it scare you.
Control the desires (mouse) or the Desires  will destroy your wealth
Even tough the Modak is next to it, the Mouse dare not eat the same without permission of Lord Ganesh.
Likewise, no profit booking without your Advisors' consent.

Mouse has the ability to see even in Dark.
Know how to see the light even in Dark times. Follow your the path shown by your Advisor and stick and you will reach the LIGHT.
Control the Mouse (Desires) and you will see LIGHT!!

MOUSE also indiciates that even the Mightest depend on the smallest.
So, a small SIP could easily make you the CROREPATI.

Ganeshaji is usually seen sitting with 1 leg folded and other on the Ground.
Meaning aim for the Sky but be rooted to the Ground.
Aim for a  BILLION even a ZILLION but know your capacity and aim for achievable Goals!!
Having a Goal too high could lead to disappointment.
Accept your limitations and work towards realistically achievable goals.

the Delicious Modak/Kadabu is awaiting for you at the end for your patientce, sharp focus as a Reward.
Modak is digestive aid and full of Proteins. And this Prasad is given at the End of the Pooja and you too will get your DESERVING REWARD when you stick to your Financial Plan and follow the advise of your FINANCIAL ADVISOR.

Post Script : 

Many images of Lord Ganesha has a Snake wrapped on HIS Stomach. 
This indicated PROTECTION OF CAPITAL (Profit).
It also indicates controlling of things which cause us unrest.
For a Successful Financial Plan, it is necessary to do constant review, monitoring and need to book profit/protect Capital in case of extraordinary events.

Best of luck,
May Lord Ganesha bless you with Health, Wealth and Happiness.
Srikanth Shankar Matrubai

Sunday, August 20, 2017



Akshay Kumar is living proof that you don't need to work 365 days in a year to be rich, successful and respected! 

For 5 years in a row, Akki holds 2 records:


Rest is good. 
Rest is imperative. 
Rest helps you give your best. 

Just don't always focus on Working.
Don't always focus on Earnings

Take Adequate Rest
Spend time with your family
Spend time with your friends
Spend time doing Social Service


As for earning even while you take Rest.....there is MUTUAL FUNDS!!!

There is SRIKANTH MATRUBAI to ensure your LACS escalate to CRORES to BILLIONS to ZILLIONS!!

Regards, Srikanth Shankar Matrubai

Happy Ganesh Chaturthi

Thursday, August 17, 2017


Last week, the Stock markets took a sharp sudden fall and left many investors shell shocked.
It was an unexpected fall for many as Markets were going on smoothly with everything looking honky dory

Two things led to sudden sharp fall.
1. The Rise in Doklam Border Tension with China
2. The Shell Companies issue raised by SEBI.
Now, look at these two images...

This Client started investing just about a month back. She had done a single investment last Nov and then restarted only last week. 

Last week's sudden brutal fall hit the portfolio valuation hard and showed a loss of Rs.7500/- and a negative CARG of -4%. 

Its obvious that the client would get upset on seeing a RED portfolio especially wherein one Fund is showing a CAGR of 33% and still the overall portfolio is showing a negative 4.1%!!
And as expected, I got a message from the client that there are rumours of war with China and whether I should be moving ALL the funds to debt
I just said "WAIT"!!!!!!!!!!!!!!

Now, watch this image. 
Just 1 single day later. 
The Portfolio has moved from a loss of Rs.7500 to a Profit of Rs.13700 and a negative CAGR to a positive CAGR of 7.3%. 
All in a matter of one single day!! 

Point is...

1. Negatives are inevitable (its a part and parcel of any business including Equities)

2. Equities is NOT for Short Term. Never was. Never will be. 

3. Positive Growth is a given. Equities have outperformed all other asset classes by a reasonable margin but the problem is VOLATILITY. 
You have to bear with it. 

4. When the Investment is LONG TERM, why should you even bother to look at your portfolio??
You will only be increasing your BP. 
So, bear with the volalitility. Enjoy the Ride. \

5. Stick to Asset Allocation. Stick to Good Quality Funds. Invest in Funds which are aliging to your Goal. 

Learnings : 
1. Dont watch your NAV/Portfolio Daily
2. Dont listen to CNBC/ETNOW experts. They find pleasure in making you nervous. 
3. Take the Advise of a Good MFD/Advisor who will guide you after looking at your Goals.
4. If the Horizon is Long term, treat the Falls as an Opportunity to buy Quality Funds at lower rates and reduce your overall Cost of Purchase.  

Relax. Enjoy the ride but be warned the ride could be bumpy.


Image result for goodfundsadvisor fall

And let the MAGIC OF COMPOUNDING WORK to your advantage. 
BEST OF LUCK!!!!!!!!!!!!!!!!!!!!!!!!!

Sunday, July 23, 2017


PMVVY is a Government subsidised Pension Plan  Scheme for Senior Citizens which entatils them to get GUARANTEED 8% return in Monthly Mode and 8.3% return in Annual Mode.
Senior Citizens require a No-Risk, Non-fluctuating and reasonable rate of return product and to address this issue, the PMVVY has been launched.
Even with its soft launch, within 2 months, the scheme has collected Rs.2705 crores. 

Features : 
1. Implemented by LIC
2. Entry Age : 60 years.....(Maximum - No limit)
3. Polity Term : 10 years
4. Plan open from 4th May 2017  till 03/05/2018
5. On Death of subscriber,  Entire Deposited Amount will be refunded to Nominee/Legal Heirs
6. On Maturity at 10 years, Policy Holder will get the Last Due Pension along with the Intiail Deposited Amount
7. In rare cases like Critical Medical Emergency, the policy can be surrendered before maturity at a surrender value of 98% of Purchase price.
8. Minimum Amount is 1,50,000 for Monthly mode
9. Maximum Amount is 7,50,000
10. Minimum Pension / Maximum Pension 
Monthly - 1000 5000
Quarter - 3000 15000
Half Yearly - 6000 30000
Yearly - 12000 60000

For Rs.1000/- you will get 
Yearly :– Rs.83 every year.
Half-Yearly :– Rs.81.30 every year.
Quarterly :– Rs.80.50 every year.
Monthly :– Rs.80 every year.

Positives : 
1. GUARANTEED interet of 8% for 10 years that too options like Monthly, Quarterly, Half-yearly and Yearly.
2. GST will not be levied on this plan.
3. Surrender (redemption) before 10 years can be done in extra ordinary cases like critical illness of self or spouse.
4. Exempted from Service Tax or GST.
5. Loan can be availed upto 75% of Purchase price.
Loan interest will be recovered from pension instalments...whereas the Loan Principal will be recovered from Maturity proceeds.
6. Since the scheme is backed by Govt, it is absolutely SAFE.

Negatives : 
1. Pension will be added to other income for tax assessment.
2. Liquidity concerns as only Loan facility available that too after 3 years.
Especially, the fact that in Old age, there could be regular health related issues and in such a scenario, this scheme does not give you easy liquidity.
3. Taxes!!!!!
Pension paid will be added to your total income and tax will be calculated accordingly (if the total income comes under the tax bracket).
4. No cumulative Benefit.
5. The ceiling of Rs.7,50,000 covers entire family including pensioner, pensioner's spouse and dependants and hence may not be sufficient to many.
6. Not Inflation adjusted.
Assuming inflation at 7%, the purchasing power of Rs 5,000 would reduce to Rs 2,500 in 10 Years.

With falling interest rates, the scheme is definitely attractive especially because the interest is GUARANTEED at 8% throughout the tenure of 10 years.
8% may appear attractive in the present circumstances but going forward may not be enough as Inflation pressure will extract higher expenses from you.

Entry age should have been 55 years as even those in that age bracket too would already be planning for their retirement.

Taxation is a HUGE negative. Govt could have given an exemption to at least to those who get Rs.3000 per month.

If you are looking for a SAFE, GUARANTEED long term product then PMVVY looks good otherwise you can consider SCSS (SENIOR CITIZEN SAVINGS SCHEME) as it provides better liquidity.
If you are just retired, you may outlive the policy term of 10 years and could get into REINVESTMENT RISK especially as you may need not just regular pension but INCREASING PENSION to meet RAISING EXPENSE.
Alternatively, Senior Citizens can look at Tax Free Bonds, Secured NCDs, SCSS, especially MIPs from Mutual Funds and even Balanced Funds, espeically if you are in Higher Tax Bracket and have just retired.

Do consult your Financial Advisor before taking any Decision. 

Saturday, July 8, 2017

Soveriegn Gold Bond - July 2017.....THE BEST ONE BY FAR

I had written a lenghty article in April 2017 on the 8th Series of the issue of Sovereign Gold Bonds

Here is the link....

I have already analysed these Bonds in depth in that article.
However what makes this particular issue of Bonds particularly interesting to me is that this Bonds are GST FREE!!!!!!!
Yes. Gold is taxed at rates even lower than the LOWEST slab of 5% of GST at just 3% and is definitely attractive Taxation wise but these SGB Bonds are exempt from even GST!!

Lets see the Features of this Sovereign Gold Bond Series II in 2017-18 in detail (Overall 9th issuance)

1. Open for subscription on 10 July and closes on 14th July.

2) Bonds will have a denomination in multiples of 1 unit = 1gram of Gold
3) Tenor = 8 years (Exit option from 5th Year)
4) Price 2780 (mkt value 2830).............the Previous series was issued at 2901 (50 less than the then market value of 2951)
5)Interest 2.5% pa payable semi-annually.......The interest shall be paid in half-yearly rests and the last one shall be payable on maturity along with the principal.
6) Minimum 1 bond, Maximum 500 bonds
7) Each underlying unit will track and mirror the price of Gold
8) SGB available in Demat and physical format. (Here physical means Paper format).
9) Investments can be made in name of Minors
10) Indian Residents, HUFs, Trusts, Charitable Establishments, Universities are eligible
11) KYC required (same as when buying physical Gold) : Aadhar Card, PAN, Passport, et

1. Gold is lower than the lowest slab of 5% and is taxed only on @3%.
But, this SGB does NOT have even this LOWEST tax.
2. And, of course, additional return of 2.5% per year (not compounded, but annual)
3. Tax Free if held till maturity (physical gold is taxed)
4. No making charges
5. Purity of 999
6. Can be used as Loan collateral
7. No "fund Management Charges" compared to Gold Funds or Gold ETFs

1. Interest is taxable
2. Lack of liquidity
3. If sold before maturity, Capital Gains will be taxed at 20% (though Indexation benefit is available)
4. Reduced Interest is at 2.5% (the first 6 tranches the interest was 2.75%)

THE BIGGEST ATTRACTION for me is that this SGB gives me Interest of 2.5% pa (on base value) and mirrors the prices of Market Value of Gold.
Neither Physical Gold, Gold Mutual Funds or Gold ETFs pay any Interest.
For a Gold lover, SGB is a GOD SENT WINDOW to invest in Gold (expecially as it is GST free!!)

SGB is definitely the BEST choice if you want to buy Gold but if you want to create Wealth and become .....the asset class of Gold itself is not the right one...
Choose others like an Equity or a Real Estate
Please understand SGB is not a substitute for Equity/Fd/ppf/etc

BEFORE INVESTING IN SGB.....ask yourself WHY you are investing?
If it is for Returns = Please dont
If it is for Safety of Capital = Okay (Gold tends to give returns in line with Inflation)
If it is as an alternative to Gold = Yes....Please Go ahead
If it is to diversify = Yes. ...Please go ahead

But, do note....DO NOT....have more than 5-10% of exposure to Gold

Short term Gold looks good but long does not look very attractive...Hence stick to Asset Allocation. 

Invest ONLY if you are sure to hold till Maturity. 
Invest ONLY if your Asset Allocation indicates you need to have more Gold exposure. 

Even if we assume just a 5% increase in Gold prices in 8 years.....the returns will be much higher due to the additional interest of 2.5% bign given by Govt. 
For example, if you invest Rs.50,000 in this bond and the same will appreciate to will actually get an extra Rs.10,000 which is 2.5 pa interest that the Govt is giving you. 
So you will end up with Rs.83872/- which is a return of 6.68% CAGR

Cost wise, SGB is really very effective even compared to Gold ETFs but cost is not everything. 
You need to look at Liquidity too. 
Even if you are lover of Gold and accept the benefits that SGB does not forge tthe dictum “DONT PUT ALL YOUR EGGS IN 1 BASKET”
While this refers to Different asset could be referred to Gold too. 
Do not put everything into have bit of exposure to Gold ETFs too
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Friday, June 30, 2017

Considering PPF..... Think again!!!

As predicted by me last year.... the interest rates on PPF is gradually moving DOWN...
it is inevitable and

with a massive lock-in of 15 years, it is one of the WORST products to put your savings into.

Instead of PPF you have to seriously consider ELSS

Whenever you take any comparision between the Small Savings and the Income Funds of any Mutual Funds, MFs have always been better not only in terms of returns but also due to their Tax Benefits in the form of INDEXATION

And, if your amount is going to be locked in for a longer period, it makes absolutely no sense to put in a product like PPF, Sukanya, it is better you consider going for a dose of Equity, at least in small measure like a Balanced Fund
If it's for Tax Savings purpose then go for ELSS

Tuesday, May 30, 2017


Today is 31st May...
No Tobacco Day
Do not want to give Gyan on how Smoking affects your Body but I WILL definitely give you gyaan on how Smoking affects your Wealth!!

Spending ₹3500 per month on cigarettes? 
Invest instead and get a return of ₹2.42 crore in 30 years. (See image)
Quit Smoking and Start Investing!

The easiest thing to do is to say SMOKING IS INJURIOUS TO HEALTH. 
but to ensure that the individual dosent smoke is the most challenging task. 
Like wise We all know by staying invested and investing  regularly you create wealth but how many people have ran the race so far. 
It's difficult if you try to do it on your own.especially when a huge corpus is built .Market is like an ECG graph which will make even the most wisest investor look like a foolish one. 
Even doctors consult their colleagues when they are sick.

Smoking will kill you earlier definitely
Trading (Speculating) will kill you definitely 
But SIPing will not only help you live peacefully but also help you live with pride with RICHNESS. 

Think Smart

Quit smoking
& Start investing!!!

Friday, May 12, 2017

WHY LIQUID FUNDS? & When to use them??

See the above video

I have always advocated that EVERY investor regardless of his Financial Stature should mandatorily have a Liquid Fund in his portfolio. This fund could be for his Emergency, for his Day to day expenses, anything that is needed at a short notice.

Liquid fund as the name suggest invest in money market instruments, treasury bills, etc which have a residual maturity of less than 91 days.
They do not have Exit Load

Liquid funds give much higher returns than your Savings Bank account without compromising on the safety and liquidty of your investment.
Liquid funds have no exit loads
Redemptions happens in an instant!!

Redemptions can be done fully or partially at any point of time. In fact, some Fund Houses give you the option of redeeming INSTANTLY. Yes...You get the liquid money in your SB account in less than 30 mins!!!!

Image result for why liquid funds

Just because Liquid funds are safe, do not make the mistake of investing in Liquid funds if your time horizon is pretty long. Take the advise of a Mutual Fund Distributor who will guide you.

Also read

1. Your salary till your next EMI due
2. Bonus till you spend/plan it
3. Sales proceeds of your flat till you invest in new one
4. Funds created for your child's education /marriage till you use it
5. LumSum amount lying in your bank account which you may be required any time
6. A Funds lying ideal for long weekend
Why you should invest in liquid fund?
1. No locking period
2. Historically return 7.50% to8.50% p.a as against 4% in saving account or 0% in current account
3. Online access
4. Minimum Rs. 5000 maximum no limit
Illustration :
Rs. 1 Cr kept for one day will earn Rs. 2200 per day,  which mean on weekends you will earn Rs. 2,28,000 (salary of one person). 

Please Consult your Financial Advisor before investing. 

Srikanth Matrubai


Suppose you get your Salary/Rent on the 1st of every month.
It is unusal for you to have your entire months expenses on the 1st itself. The expenses will be staggered and spread throughout the month.
Mobile bill on 5th
School Fees on 10th
Credit Card on 15th
EMI on 20th
Monthly SIP on 25th

Image result for why liquid funds
Till these expenses come up, you tend to lock your money in Bank wherein you are getting 4% (yes, some banks do offer 6% for Saving Bank Account, but these rates come with lots of conditions like balance of more than 1 lakh)
So, when I consider 4%, you are better off investing in Liquid Funds where returns match 1 year Fixed Deposits. Right now, even the underperforming liquid funds have been giving 8%, which is DOUBLE the rate of Saving Bank Deposit.
Another Advantage of investing in Liquid Funds instead of keeping in SB account is that Liquid Funds are in true sense “liquid” that is, you get your money within 24 hours and whats more some AMCs also offer ATM Card for your investment which you can use to withdraw money anywhere, anytime.
Theoretically speaking Liquid Funds are not Capital Safe but Liquid Funds invest in Money Markets, Short Term Corporate Deposits and Treasury and hence very liquid and very safe as all these instruments have very low risk and enjoy high liquidity. 

  1. The Average returns of Liquid Funds has always beaten SB Account Interest by a minimum of 1%
  2. True, Dividend on Liquid Funds are taxed at 28.3% but Interest on SB interest is added to your overall Income and is taxed as per Tax Slabs.
  3. Interest on Liquid Funds is paid out on Daily basis where Interest on SB Account is paid on Quarterly basis.
  4. There is no charges by AMCs if minimum balance in Liquid Fund goes below the prescribed minimum balance, whereas Banks charge anywhere between Rs.50 to Rs.1000.
So, if you an investor who comes under High Tax Bracket of 30%, you are advised to go for Dividend option wherein your Capital Gains is nullified and if you are in Lower Tax Bracket, you can go for Growth option and take the advantage of Indexation to reduce your Tax Outgo.

Prudent financial planning says that an investor should have some Contingency fund to face any Emergency situation in Life. So, keep cash at home and the balance should be divided in SB Account and Liquid Fund depending on your requirements.
I normally advise investors to keep 1/3rd of Contingency Fund in Liquid Funds.
After all, an 8% return with 1 day Liquidity is always much better than a 4% in SB Account!
Caveat : Do not use Liquid funds for Investment use them purely for parking your Temporary money.

I would recommend Short Term Debt Fund and Dynamic bond, especially those with lower duration if you are sure that you do not need this money for 2 years atleast
Low risk  and short time horizon investors should look at Accrual funds.

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Monday, May 8, 2017

Timing the Market?? Think again

Side effects of timing the market

Total trading days on sensex till date 8548

*If remain invested all days : Return 15.94%*

Missed best 10 days : 12.79%
Missed best 20 days : 10.64%
Missed best 30 days  :  8.79%
Missed best 50 days  :  5.63%
Missed best 70 days  :  2.80%

  Investor makes money by being in the market then timing the market..

Do not wait for the market to go "down"

Invest via the time tested SIP WAY!!!

Sip evens out the volatility in the Market

"In 30 years in this business, I do not know anybody who knows anybody who has done it successfully and consistently. Indeed, my impression is that trying to do market timing is likely, not only not add value to your investment program, but to be counterproductive."-John Bogle


 Do not stop your SIPs during times when market comes down. 

Keep continuing your SIP. You get allocated max units when market comes down. 

Which, in turn, gives you the highest return when market goes up, which it eventually does.

I love this poem on SIP

Systematic Investment Planning

She (SIP) teaches me discipline

She teaches me to have patience๐Ÿ‘Œ๐Ÿ‘Œ๐Ÿ‘Œ

With no worry of timing the market

With no worry of market fluctuations

We started young with a disciplined approach

To investment and growth

And at fixed intervals we surely meet

To check on the goals we have targeted on the sheet

Our alliance is mutual and we spend quality time

Together we plan to achieve our goals on time

She not only gives wings to my dreams and aspirations

But helps me lessen worries about my trials and tribulations

She teaches me the power of compounding

As little drops of water make the mighty ocean

Small or big, whatever my contribution be

Our friendship comes without any hassles

Easy to maintain and loving in nature

She is a blessing in disguise

My Systematic Investment Plan (SIP) - truthful and wise

Thanks to
Poet FB ANIL Kumar
DEHRADUN for the poem

Sunday, May 7, 2017


The average budget for an Indian wedding ceremony in the middle class is estimated to be around Rs.30 lakh. (source: HT July 2015)
This estimate in 5 years time period will cross Rs. 60 lacs.

For the upper middle class and rich class, these estimate would run in Crores.

So, start investing for your Beloved child's marriage NOW!!
If you want to accumulate GOLD for your child's marriage...

Instead of gold bonds, start SIP in balanced funds to buy gold at the time of marriage of your child.

It is beneficial as the gold rates are expected to go down and the balanced funds has a potential to deliver good tax free returns.

Watch the video

Monday, May 1, 2017


The retirement should be looked from 2 health points.
1. Financial health
2. Physical health

Interestingly people now a days put too much attention on 1 & care less about 2.
In my personal opinion, one should care more for Physical health. The reason is simple. The cost of medication 'll deteriorate your financial health also & the impact 'll be huge

Also watch

Saturday, April 29, 2017

For GOLDEN returns, avoid GOLD!!!!

Akshay Tritiya, is a holy day for Hindus and Jains. It falls on the third Tithi (lunar day) of Bright Half (Shukla Paksha) of the pan-Indian month of Vaishakha and one of the four most important days for Hindus. It is an auspicious day of the birthday of Lord Parasurama who is the sixth incarnation of Lord Vishnu. On this day Veda Vyas began to write Mahabharata. Jains celebrate this day to commemorate Tirthankara Rushabhanatha's ending of one-year fast by consuming sugarcane juice poured into his cupped hands. – Courtesy - wikipedia

The word "Akshay" means the never diminishing in Sanskrit and the day is believed to bring good luck and success. It is believed that if you do charity on this day you will be blessed.

The day is considered auspicious for starting new ventures: Assumed to grow and bring prosperity.

Now let's get into reality....

Akshay Tritiya is very popular if I remember right, especially in the last 15 years or so. Jewelers’ utilized this opportunity and positioned in such a way that everyone should buy gold and it is hugely success as well.

Let’s look at the reality of what happened in the last 5 years when it comes to GOLD investment. 5 Years is relatively longer period when it comes to investing.

28th April 2012 gold price were trading at 29,107 and it was closed yesterday at 28,875. One more observation is, even if you take it, year on year performance from the day one bought it has never increased, emotion plays a bigger role when it comes to investing to many of us, so without calculating anything we keep buying. Here, it is only blind faith and never verified!

I have observed one more thing, let us assume somebody has not invested lump sum and they have invested through monthly chit (which is very popular in Bangalore, not sure about other states) and the value is one and the same. It clearly indicates passive investment will not work. See the below table of Gold Investment in SIP.

Sensex value as on 27/4/12 is 17,134 and it was closed 29,918. The absolute return in the last 5 year is 74.61 in terms of CAGR it is 11.8% only.

I have given you some of the mid and small cap funds which were popular in those days and their returns and anyone can see their own investment returns or any other fund they feel it’s a good fund. I have provided just for illustration purpose only. I used to say jokingly to all my clients, if you invest in GOLD you can give X amount to your daughter and if you invest in mutual fund it will be at least 2X, you decide how much you would like to give your daughter!!!

NAV Value as on

Fund Name
Abs Return
HDFC Midcap Opportunities
DSPBR Small & Midcap
Reliance Smallcap
Mirae Asset Emerging Bluechip
Franklin India Prima Fund
International gold price has touched all time high as on 22nd August 2011 as $ 1,917.90 per ounce and yesterday closing price is $ 1,268 and it is down by 33.85%. In the same time our rupee has weakened from 45.66 to 64.23 against USD. There is an absolute increase of 40.67%. I am not here to predict what will be the gold price in future, but one thing I can be rest assured is there will not be much appreciation henceforth from the currency.

My humble submission to everyone is never buying gold as an investment, buy gold as an ornament which you constantly wear. Do not start any gold investment even if you have girl child. Gold is important for the marriage, but it does not mean that we should invest only in gold!

Last, but not the least investment have no emotions, so whenever you invest do not show emotions. Gold and Real estate investments are more out of emotions which is proven now. Real estate has also not grown much in the last 5 years, but it is not regulated and no such data available I am not in a position to give any data.


1. Most of the gold digged from time immemorial is still in circulation.

So we may even be using the some of the gold (recycled) that was used in the times of Rama, Krishna, Buddha and Jesus.

2. The quantity of steel poured in an hour in our planet is more than what has been poured for gold since the civilization. That is how limited the availability of the gold is.

3. It is estimated that total gold available (in circulation and storage) in the world is 1,65,000 tonnes.

4. 75% of the gold available today has been extracted only after 1910.. The Pace of extraction is quicker!!

5. If you are worried that gold’s supply would get exhausted soon, fear not!

About 10 billion tonnes – 10,000 million tonnes (yes, you read it right) of gold is estimated to be held in the oceans of the world. An economically viable model of extraction is being explored.

Necessity is the mother of invention. If gold prices continue to rise and if the demand would only increase, who knows, a technological innovation can happen in extracting gold from ocean.

10mn tones under the sea is eye opener. Same happened with oil; eventually people dug under the sea after land sources were well discovered and prices kept climbing- oil came from sea!

Its the Multi Stage Fracking Technology that changed equation for oil. 
Offshore was there, but the shale gas was the real gamechanger.

And Crude Oil was never the same again. 

so, maybe maybe some day going forward something in technology breakthrough could just help us in laying our hands on that 10 billion tonnes of Gold lying in Oceans. 
and Like Crude Oil..the price of Gold is bound to go down...
Waiting for that day!!!!!!!!

The diamond conglomerate De Beers has been mining diamonds from shallow waters off southwest Africa since the 1960s, so harvesting diamonds from deeper water is a possibility.

Also please read.

Gold is not an investment. Gold is an allocation in Indian Households. Continue buying gold in SIP for a specific purpose & allocation.

Your wealth grow as per the potential of the asset you invest. 

Potentials of  some financial assets are.

Idle money in SB A/c ~4%
Bank and Post office deposits ~7-8%
Traditional life insurance policies ~5-6%
ULIP plan~ 8-9%
Gold 8-9%
Equity mutual funds~12-15%
Provident funds ~ 8% 

Whatever wealth you have accumulated today is a result of where your investment was done in the past.


If you would have bought 10 gram gold on the Akshaya Tritiya of 2002, it would have costed you Rs.5,000/- ; at today's Akshaya Tritiya, your gold is worth 30,000/- a Growth of 6 times!

Well, with the same Rs.5,000, if you had bought the shares of one of those jewellery companies (Titan company, which owns Tanisq jewellers or Rajesh Exports, which owns Shubh Jewellers), your 5K should have grown to 8 to 10 lakhs...Growth of 167 to 200 times (that too ignoring the dividends)

Happy and 'Prosperous' and ENLIGHTENING Akshaya Tritiya!

Best of luck, 
Srikanth Matrubai

Thanks to Padmanabhan and Muthukrishnan for valuable inputs

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