This Pandemic let lot of us into financial crisis or instability. We are all worried about the stability of income. So I have decided to post some tips on financial planning for individuals from now on. It will be helpful in managing your finance.

Today the tip is regarding budget…
Many of us keep a budget according to which we would spend our money. Now I am going to give a small idea to the budgeting you do. This is called as Zero based budget.

As the name suggests this budget totals to zero. All we need to do is take a paper and pen or open a spreadsheet and start seperating our incomes and expenses. First we should add up the various incomes such a salary, interest from savings and investments if any, business income, etc…

Next we should name all our expenses. Literally name every expense in the starting itself. Like House hold, DTH, Mobile Bill, Food, Entertainment, Medicines, Savings, Investment, Insurance, Car service, Current Bill ,Rent, etc…

Add all the income and total it. Now allocate the total amount to the different expenses you have named. Finally on subtracting the expenses from income our Total should be zero.

It might seem easy but when you sit and start allocating it will be little tough. But no problem on repeating for every month soon you will get the total to zero.

One important point is you can’t keep this budget as same for every month. You must do this for every month seperately according to that month’s income and expenses. Don’t forget to name all the expenses. Since you are starting newly you can keep a column for miscellaneous expenses too. That will help during any need. If no need arises for that money you can add it to the savings at month end.

This will take 15 to 20 minutes of your time. But will be very useful in future. Do it once you will get every expenses accounted and will know where to spend more and where to spend less.

– Thiru

Axis Multicap Fund(MCF) has been launched on 24.11.17 (roughly 2 years back).

Now it is one among the best performing funds in Multicap category.

Though there are many schemes in the multicap category this fund’s performance is very notable from the very beginning. This is because of their portfolio selection.

Let’s see about the fund in detail,

Fund Manager – Shreyash Devalkar.

He is a fund manager with around 14 years of experience who manages 9 schemes(debt and equity).

Where are do they invest?

Axis Multicap invests in the Nifty 500 TRI. Which means they have options to select large,mid and small cap stocks.

Axis MCF consists of a 25 stocks portfolio with a portfolio turnover ratio of 91%. Which means the fund manager is updating the stocks very often.

What do they have?

Axis MCF consists of,

• Large Cap – 77.32%
• Mid Cap – 2.52%
• Small Cap – 0.87%
• Debt – 1.26% (Bonds and NCDs)
• Others – 5.82% ( TREPS and FDs)

How do they perform well?

From their pattern of holdings it is clear that they hold large caps in huge numbers. Which means they are using the current rally of large cap stocks. Addition to it while analysing the portfolio we can see that they nearly hold 44% in top 3 stocks of their holding. Those are all the large cap ones(Bajaj Finance Ltd., Kotak Mahindra Bank and HDFC Bank) which benefits the fund in a huge manner.

Who can invest?

Axis MCF is best suitable for the investors having a term of 5 years to grow. This fund is obviously apt for risk takers who are ready to take a moderately high risk.

How to invest?

At this point of time Systematic investments will be the best option to enter the fund.

What can an investor expect?

On waiting for 5 years an investor can expect a CAGR of 15% minimum.

To conclude, if an investor is looking for a good return and have 5 years of time who is also ready to take a little bit risk this fund is best suitable. In addition if they enter the fund in a systematic way(SIP or STP) it will be highly beneficial.

Happy Investing!

– Thiru

Nirmala Sitharaman the FM of India today (6.11.19) after a cabinet meeting said that the government is funding ₹10000 Crores towards the Alternative Investment Funds for Real estate which will be a relief to the Realty Developers with unfinished projects to complete the same and deliver.

Additionally government has also spoken with SBI and LIC for an additional funding of ₹15000 crores. This sums up to ₹25000 crores. This investment will be managed by the SBI Cap ventures.

Who will get funded?

The projects fulfilling the following criterias are eligible for the funding:

• Net-worth positive (The project’s assets outweigh its liabilities)
• Affordable & middle-income housing project
• On-going projects regd with RERA(Real Estate Regulatory Act)
• Reference by existing lender
• Include stressed projects classified as NPA & NCLT

Who are getting benefited?

• The realty developers with roughly 4.5 lakhs housing units.
• The housing units with a value less than ₹1 Crore in non metros and ₹2 crores in metros.

This means the buyers are the real beneficiaries. This will be ultimately beneficial to those who have made an advance and aren’t got delivered their housing units.

To conclude Realty gets its own dose of reforms which is beneficial to many citizens who are waiting for their half built homes to be delivered and the ones looking for homes. Eventually it will also be a good boost to the real estate sector to overcome the sluggishness.

– Thiru