PRESENTATION FOR VIVA

KETAN SAGWEKAR
HPGD/JA21/0542
WE LOUNGE
 1.Mr. Anuj Galgotia
VP & HEAD ( HR, Admin & IT) at RNA Corps.
• Mr. Anuj Galgotia has an overall experience of 27 years in the field of HR & Admin. His
specialities are in Talent Acquisition, Change Management, Organization Structuring &
Compensation Management. He is also a guest speaker and consultant in many educational
firms.
• He has worked previously with Larsen & Toubro Railway Business Unit, Reliance Retail LTD
Mumbai, Essar.
• When asked on how was his journey since graduation till date, he says, “his journey has
been long but interesting”.
• Mr.Anuj's professional journey started in the year 1990.
• He chose HR because after MBA he developed interested in strategic management. In his
words, 'finance was not my cup of tea'.
• At that time HR was growing, it started to come off as a different form of Management and
was a relatively new concept.
 How has HR changed compared to now and when you started?

Mr. Anuj says that “A lot has changed, at the same time a lot has not changed”.
HR means dealing with people, it does not mean that a law passed today that brings
changes in the system immediately will also bring changes in a human being.
People's behavior does not change so quickly, it takes years or sometimes decades to
change.
Technology has also brought out a lot of positive changes.

 How easy is it to manage both the roles of admin and HR?

He jokingly says that in HR we are not supposed to say that this job is difficult, we take
things as they come.
An Admin's task is chaotic. IF you are able to deal with chaose everything falls in a place,
it becomes easy to deal with it.
 2. MR. NIKHIL APTE
CHIEF PRODUCT OFFICER -ROYAL SUNDARAM
ALLIANCE INSURANCE
Alumini from the batch of 1995-97 PGDM Marketing from we
school Started off as an asst. manager sales at Emerson
network power , immediately after the course Today he is a
seasoned sales and marketing professional with over 20 years
experience Has successful designed developed and launched
about 20 + new product/platforms in the accident and health
insurance space he comes with multinational experience
covering a with spectrum of management functions and
industry.
The first day of work He was very excited that he had been selected as a management trainee. From the time he joined
Welingkar, everyone used to tell them you should be in operations, not in marketing, but they were very comfortable with
marketing. They wanted to build a career in marketing. His starting salary was 1.4 lakh. His biggest strength was that he could
follow his passions and belief. He always wanted to be a product guy. They would like to tell students to follow their passion no
matter what their parents or friends say. If you believe in yourself, you will definitely succeed. After they graduated from
Welingkar, there was no insurance industry exit and no private place for insurance. The scope for innovation in the industry was
extremely high, so they picked up good parameters from the insurance industry. He started his insurance carrier with accident
health.
When he gets asked a question, how does he manage such a role?
In his opinion, as you grow, you should be diversified in your prospective. You need to be a good boss of yourself. People
should look forward to working with you.
He said the insurance sector is one of the big things in his case, health insurance. In 2007-08, health insurance was only like
4000 cr. Today, it’s become 25000 cr. He knows that people in this country are going to fall sick, so they will go to hospital for
treatment. The cost will rise if we see our average male live 67 years and average female live 69 years, so there is no death for
heart insurance company.
A key challenge for the insurance industry It's a highly regulated industry. One of the challenges of this industry is that you need
to be extremely pensions.
The strength of an insurance company the population we have, as well as insurance not only for people but also for property,
vehicles, and so on.The insurance industry's perception of people is still negative.
 3.MR.GAURAV MEHTA SR. VP & MARKET
DIRECTOR AT CENTRUM CAPITAL

by Rohan Sequeira

Mr. Gaurav was asked about his journey so far and he mentioned that, “it was rewarding, both personally and
professionally”. When he started out on his journey he had certain milestones that he wanted to achieve and he has
achieved them at this point, not all but few. He made good relationships on his successful journey over the years with
different enterprises, clients, senior colleagues & people from various other geographical boundaries. How did finance
happen to you or did you always know that this is where you wanted to be? -Gaurav said that he had been sure about
choosing finance as his field of study since high school as he was always interested and curious about financial
markets, wealth management and capital markets. He also read about how most of the business leaders are born and
brought up in humble backgrounds.
• Mr. Gaurav mentioned that his father had only worked at one bank all his life, and how his own career path has been
so different. Gaurav initially pursued being a Chartered Accountant and then switched fields to MBA. He studied at
XLRI, Jamshedpur. He believed that he had a bigger part to play in life, being only a Chartered accountant meant that
he would only be a legal counsellor. He could relate himself to being an MBA as he personally found it more
challenging. Currently, Gaurav manages the tier 2 regions in the Middle East and also India for Centrum. His
message to all MBA aspirants in the field of finance is quiet simple. He says that, “a career is finance is demanding
and challenging, you need to work long hours, everyone has high expectations but in the end it is hardwork that pays
off. You would grow eventually with experience gained over the years. If you are proactive and enthusiastic, then a
career in finance can be rewarding”. His next professional goal is to work with firms that have presence in the
domestic as well as the international market.
WE TUBE
 1. MUTUAL FUND
- PROF. AMIT
OAK
What are mutual funds?
A mutual fund is a company that pools money from many investors and
invests the money in securities such as stocks, bonds, and short-term debt.
The combined holdings of the mutual fund are known as its portfolio.
Investors buy shares in mutual funds. Each share represents an investor’s
part ownership in the fund and the income it generates .

What Is Mutual Fund NAV?

Mutual fund net asset value (NAV) represents a fund's per share market value. It is the price at which investors
buy (bid price) fund shares from a fund company and sell them (redemption price) to a fund company.
A fund's NAV is calculated by dividing the total value of all the cash and securities in a fund's portfolio, less any
liabilities, by the number of shares outstanding.
The formula for a mutual fund's NAV

NAV = (Assets - Liabilities) / Total number of outstanding shares

Types and Categories of Mutual Funds

1.closed ended funds

2.open ended funds
3.Equity schemes
4.Debt schemes
5.Hybrid schemes
6.Index Fund
1. closed ended mutual fund

A closed ended mutual fund scheme is where your investment is locked in for a specified period of time. You can
subscribe to close ended schemes only during the new fund offer period (NFO) and redeem the units only after the
lock in period or the tenure of the scheme is over.

2.Open ended funds

Open ended funds are always open to investment and redemptions, hence, the name open ended funds. Open ended
funds are the most common form of investment in mutual funds in India. These funds do not have any lock-in period
or maturities; therefore, it is open perennially. Generally open ended funds do not have any maximum limit (of AUM)
upto which it can collect investments from public. In open ended funds, the NAV is calculated daily on the value of the
underlying securities at the end of the day. These funds are usually not traded on stock exchanges. The big difference
between open ended and closed ended mutual funds is that open-ended funds always offer high liquidity compared
to close ended funds where liquidity is available only after the specified lock-in period or at the fund maturity.
3.Equity Schemes

Equity Schemes As explained earlier, mutual funds invest in a variety of securities. However, the proportion of investment into
such securities differs. Hence, those mutual funds that invest at least 65% of their total assets into equity shares of companies are
called equity mutual funds. Under equity schemes, there are further sub-categories of mutual funds, as explained below: Large-
Cap Funds: Mutual funds that invest in shares of companies with the largest market capitalization, typically ranked 1st to 100th by
SEBI, are called large-cap funds.Mid-Cap Funds: Mutual funds that invest in companies with medium market capitalization,
typically ranked 101st to 250th by SEBI, are called the Mid-cap funds.Small-Cap Funds: Mutual funds that invest in companies with
the smallest market capitalisation, typically ranked after 250th by SEBI, are called small-cap funds.Multi-Cap Funds: These mutual
funds invest in all market capitalisation companies (basically, large, mid and small cap), to attain maximum returns with reduced
risks.Sector Funds: These mutual funds invest in a particular sector such as financial or healthcare and are called thematic
funds.Index Funds: Index funds are created considering the companies in a particular market index where the index and the index
fund return will be similar. These funds basically mimic the market.Such funds invest in the same companies as that of the market
index.ELSS Funds: These funds invest majorly in equity shares and are eligible to avail INR 150,000 tax deduction from total
income, under section 80C of the Income Tax Act, 1964.

4.Hybrid Funds

Hybrid Funds are mutual fund schemes which invest in more than one asset class i.e. equity, debt and other asset classes
depending on the investment objective of the scheme. These funds invest in a mix of different asset classes to diversify the
portfolio with an aim to minimise the risk involved.
5.Debt Schemes

Debt Schemes In contrast to equity schemes, debt schemes invest majorly in debt instruments and other safe securities such as
corporate bonds, government bonds, etc. At least 65% of the total investment is allocated to debt and fixed-income instruments.
Liquid Funds: These mutual funds invest in liquid instruments that mature within 91 days. Liquid funds offer higher returns than a
savings bank account and fixed deposit.Dynamic Bond Funds: These mutual funds invest in short-term and long-term bonds and
their fund managers generate higher returns by modifying the portfolio based on interest rate fluctuations.Short-term Debt Funds:
These mutual funds invest in debt funds that mature in a short duration, typically one to three years.Fixed Maturity Plan Funds:
Such mutual funds invest in fixed-income debt funds, such as government bonds.Gilt Funds: Such mutual funds invest in high-rated
government securities that offer stable returns with low risk.Credit Opportunity Funds: Such mutual funds invest in low-rated
securities, potentially good return providers.

6.Index fund

An index fund is a portfolio of stocks or bonds designed to mimic the composition and performance of a financial market
index.Index funds have lower expenses and fees than actively managed funds.Index funds follow a passive investment strategy.
Index funds seek to match the risk and return of the market based on the theory that in the long term, the market will
outperform any single investment.
3 Mutual Funds with Best Returns in the Last 5 Years.

1. TATA Digital India Fund.

TATA Digital India Fund is a Equity - Sectoral fund was launched on 28 Dec 15. It is a fund with High risk and has
given a CAGR/Annualized return of 19.8% since its launch. Return for 2021 was 74.4% , 2020 was 54.8% and
2019 was 7.5% .

2. ICICI Prudential Technology Fund .

ICICI Prudential Technology Fund is a Equity - Sectoral fund was launched on 3 Mar 00. It is a fund with High risk
and has given a CAGR/Annualized return of 12.5% since its launch. Ranked 37 in Sectoral category. Return for
2021 was 75.7% , 2020 was 70.6% and 2019 was 2.3%

3. Aditya Birla Sun Life Digital India Fund .

Aditya Birla Sun Life Digital India Fund is a Equity - Sectoral fund was launched on 15 Jan 00. It is a fund with
High risk and has given a CAGR/Annualized return of 11.6% since its launch.  Ranked 33 in Sectoral category.
2.FUNDAMENTALS OF FINANCE FOR RECORDING BUSINESS TRASACTION

- PROF.SURESH PUJARI
What is accounts ?
Accounting is the process of recording financial
transactions pertaining to a business. The accounting
process includes summarizing, analyzing, and reporting
these transactions to oversight agencies, regulators, and
tax collection entities.

ACCOUNTS

Accounts Are Classified Into Two

Categories
IMPERSONA
L PERSONAL
PERSONAL ACCOUNTS :

Personal accounts are related to persons, debtors or

creditors etc. A Company has a number of Customers
REAL NOMINAL
(Debtors) and Suppliers (Creditors). Each one of these is a
Personal Account.
IMPERSONAL ACCOUNTS :

ACCOUNTS WHICH ARE NOT PERSONAL ACCOUNTS SUCH AS PLANT AND MACHINERY ACCOUNT, THE BANK OR CASH ACCOUNTS, INTEREST ACCOUNT ETC. ARE IMPERSONAL ACCOUNTS. THESE IMPERSONAL ACCOUNTS ARE FURTHER SUB-DIVIDED AS UNDER:

- REAL ACCOUNTS :
ACCOUNTS WHICH RELATE TO ASSETS OF THE FIRM BUT NOT ITS DEBT. INSTANCES OF REAL ACCOUNT ARE:

• LAND
• BUILDING
• INVESTMENT
• FIXED DEPOSITS
• CASH BALANCE K BALANCE
- NOMINAL ACCOUNT :

THESE RELATE TO EXPENSES, LOSSES, GAINS, REVENUE, ETC.

INSTANCES OF THESE ARE:

- SALARY ACCOUNT
- INTEREST PAID ACCOUNT
- COMMISSION RECEIVED ACCOUNT
THREE GOLDEN RULES

All business transactions fall into one of the above account categories. It is important that we have the rules of debit and
credit committed to memory, as we will use them time and again as we proceed through the course. These are called the
Three Golden Rules of double entry accounting. These three Golden Rules are briefly encapsulated in the following table:
The accounting cycle 

- Transactions : Financial transactions start the process. Transactions can include the sale
or return of a product, the purchase of supplies for business activities, or any other
financial activity that involves the exchange of the company’s assets, the establishment
or payoff of a debt, or the deposit from or payout of money to the company’s owners.
- Journal entries : The transaction is listed in the appropriate journal, maintaining the
journal’s chronological order of transactions.The journal is also known as the “book of
original entry” and is the first place a transaction is listed.
- Posting : The transactions are posted to the account that it impacts. These accounts
are part of the General Ledger, where you can find a summary of all the business’s accounts.
Trial balance: At the end of the accounting period (which may be a month, quarter, or
year depending on a business’s practices), you calculate a trial balance.
- Worksheet : Unfortunately, many times your first calculation of the trial balance shows that the books aren’t in balance. If that’s the case,
you look for errors and make corrections called adjustments, which are tracked on a worksheet.Adjustments are also made to account for the
depreciation of assets and to adjust for one-time payments (such as insurance) that should be allocated on a monthly basis to more
accurately match monthly expenses with monthly revenues. After you make and record adjustments, you take another trial balance to be
sure the accounts are in balance.
- Adjusting journal entries : You post any corrections needed to the affected accounts once your trial balance shows the accounts will be
balanced once the adjustments needed are made to the accounts. You don’t need to make adjusting entries until the trial balance process is
completed and all needed corrections and adjustments have been identified.
- Financial statements : You prepare the balance sheet and income statement using the corrected account balances.
- Closing the books : You close the books for the revenue and expense accounts and begin the entire cycle again with zero balances in those
accounts.
3.IN THE WONDERLAND OF FINANCE 

- PROF. KANU DOSHI

 The Wealthiest Man in India & among the 1st 5
Wealthiest Man in the World –
Mr. Mukesh Ambani
The Wealthiest Woman in India –
Mrs. Sudha Narayan Murthy
The Wealthiest Indian Woman outside India – Ms.
Parveen Warsi ( S & A Foods – Known as “Samosa
Queen”)
The Wealthiest Indian outside India & The Wealthiest
Man in UK, Six years in a row –
Mr. Laxmi N. Mittal (Arcelor Mittal Steel)
The Wealthiest Man in the World –
Mr. Carlos Slim (Mexico)
The 2nd Wealthiest Man in the USA –
Mr. Warren Buffet (Berkshire Hathaway)
The Wealthiest Man in the USA -
Mr. Bill Gates ( Microsoft)
American Thinks, “If you are the Wealthiest Man
in the America, You are the wealthiest in the world..”
What is common to all those Individuals:
- They are all very rich & famous.
- They own Equity shares in listed companies.
- Magic of Market Capitalization.
How do we know that they are Wealthy?
- By counting, by accounting, by recording, by valuing all their
worldly wealth, their assets, their properties & liabilities, if
any.
- Accounting all incomes, expenses, assets & liabilities in
monetary term is the sole determinant of economic
activities of all businesses, Industry, trade, commerce, also
of fashion designers; artists, media moguls & NGOs in
terms of all the currencies.
 To learn Accounting you have got to do on yourself. There are two approaches
to Accounting :
From the point of view of the Preparer like Accountant.

From the point of view of the User like CFO

Financial Accounting helps recording all financial transactions for

preparation of below five very important statements :
- Trial Balance
- Profit & Loss Account
- Balance Sheet
- Cash flow Statement
- Ratio Analysis

Financial Statements are useful to seven separate

stakeholders :

Suppliers of Investment
Creditors & Government to We School
Shareholders goods & Employees Analysis,
Lenders collect taxes Students
services Researchers
 Accounting is a very important process with the help of which the
management of an organization attempts to manage and control its performance.
This small module will help you to understand basic concepts related to Financial
Accounting.
“You have to understand Accounting & You have to understand nuances of
the Accounting. It is the language of business & It’s imperfect language, but unless
you are willing to put in the efforts to learn Accounting – How to read & interpret
Financial Statements – you really shouldn’t select stocks yourself.” Says Warren
Buffet.
 Any commercial activity consists of purchases, production, sales, loans, stocks, debtors, creditors, cash & bank balance,
profits & losses.
 To have a profit you should have sales & to have a sales first you should produce or purchase the goods/services.
Though, not all sales are at a profit. Ideally there should be profitable sales.
 Accounting is a tool of measuring worth, profitability, efficiency, respectability, solvency, brand equity & goodwill.
 There is a parta system which says accounting function is most valuable than production, purchases, sales & HR
adopted by G. D. Birla on accounting function. Technocrat knows how to produce wealth, they may even sell but go
broke for non recovery from debtors & this happens because they don’t know about the accounting function.
 It is said that, sales is a vanity, profit is a sanity, whereas, cash is a reality. Therefore, cash is important part of any
business. To be a right business decision it should be financially sound decision. It is also said that, money is 6 th sense
without which all other 5 senses are meaningless.
• Principles of Accounting:
• Accounting is a Art as it interprets, Science as it Records all the transactions.
• All financial transactions are in a Monetary term only.
• Accounting uses Historical Cost (Not Present Market Value)
• Going Concern & Matching Concept
• Consistency Profit is a result of Valuation
• All Valuations are subjective
• Limitations of the Accounting:
• Profit is a Fiction & Only Cash is a fact.
• It Accounts only monetary value of all the transactions. Measurements are quantitative, qualitative aspects are ignored.
• In Inflation/deflation value of Rupee appreciates/depreciates, but no adjustment in the books of accounts is done.
• All Assets are recorded at Historical costs & not the Replacement Cost.
• Conservatism & Accrual Basis i.e. it provides for unrealized losses, but ignore the unrealized gains.
• Separate from the Owner
 4.BASIC DEDUCTIONS TO BE CLAIMED FROM GROSS
TOTAL INCOME

-PROF. SURESH PUJARI

Income tax department with a view to encourage

savings and investments amongst the taxpayers
have provided various deductions from the taxable
income under chapter VI A deductions. 80C being
the most famous, there are other deductions which
are beneficial for the taxpayers to reduce their tax
liability. Let us understand these deductions in
detail:
Section 80C
Section 80C of the Income Tax Act came into effect on 1 April 2006. It basically allows certain expenditures and investments to be exempt from tax. If you plan
your investments well and spread them intelligently across different investments such as PPF, NSC, etc., you can claim deductions up to Rs.1.5 lakh, thereby
lowering your tax liability.

Deductions on Investments under Section 80C of the Income Tax Act

Provident Fund:

Provident Fund is automatically subtracted from your monthly salary. An employee and his/her employer both contribute towards PF. While the contribution
made by the employer is exempt from tax, the contribution made by the employee is eligible for deductions under Section 80C of the Income Tax Act.
Employees are also allowed to make voluntary contributions towards the Provident Fund Account. Voluntary Provident Fund or VPF as it is called, is also
eligible for tax deductions under Section 80C of the Income Tax Act.

Public Provident Fund:

Public Provident Fund is a popular investment instrument as it offers assured returns. Interest is compounded on an annual basis and the maturity period of
the scheme is 15 years. The least that you can contribute towards PPF is Rs.500 and the maximum contribution allowed is Rs.1.5 lakh. The amount you
contribute towards PPF is eligible for tax deductions under Section 80C of the Income Tax Act.

Premium payments towards life insurance:

If you have purchased a Life Insurance Policy for yourself, your children or your spouse, the premiums you pay towards it are eligible for deductions under
Section 80C of the Income Tax Act. In case you have multiple life insurance policies from different insurance providers, you can club all the premiums and claim
deductions up to Rs.1.5 lakh p.a.

National Savings Certificate:

National Savings Certificate or NSC as it is known in its abbreviated form, is one of the most popular tax-saving instruments available to Indian citizens. The
maturity period of the scheme is five years and 10 years. The interest in this scheme is compounded semi-annually. The minimum amount of money that you
can invest in this certificate is Rs.100 and there is no maximum limit on the amount of investment you can make in NSC. The amount you invest in National
Savings Certificate is eligible for tax deductions under Section 80C of the Income Tax Act, subject to a maximum of Rs.1.5 lakh per financial year.
Repayment of home loan principal amount:
The EMI amount that goes towards the repayment of the principal amount on your home loan is also eligible for tax deductions under Section 80C of the Income
Tax Act. The repayment of your home loan amount has two components, viz. the principal amount and the interest. While the interest part of the repayment cannot
be claimed as deduction under Section 80C of the Income Tax Act, the repayment of the principal amount certainly is.
Infrastructure bonds:
Infra bonds as they are commonly called, Infrastructure bonds are issued not by the government but by infrastructure companies. In case you invest in these bonds,
you can claim tax deductions up to Rs.1.5 lakh under Section 80C of the Income Tax Act.
Five-year Post Office Time Deposit Scheme:
Post office deposit schemes are a lot like fixed deposits offered by banks. The duration of these schemes could range from one year to five years, but only the
interest earned on five-year post office time deposit schemes are eligible for tax deductions under Section 80C of the Income Tax Act.
Sukanya Samriddhi Scheme:
Individuals can open a Sukanya Samriddhi account for a girl child anytime from the date of her birth to the day she turns 10 years old. The minimum amount that
you can invest in the Sukanya Samriddhi scheme is Rs.1,000 and the maximum is limited to Rs.1.5 lakh in a financial year. The interest in this account is calculated on
an annual basis and compounded on an annual basis too. The interest you accrue through this scheme is eligible for tax deductions under Section 80C of the Income
Tax Act.
Sukanya Samriddhi Scheme:
Individuals can open a Sukanya Samriddhi account for a girl child anytime from the date of her birth to the day she turns 10 years old. The minimum amount that
you can invest in the Sukanya Samriddhi scheme is Rs.1,000 and the maximum is limited to Rs.1.5 lakh in a financial year. The interest in this account is calculated on
an annual basis and compounded on an annual basis too. The interest you accrue through this scheme is eligible for tax deductions under Section 80C of the Income
Tax Act.
Equity Linked Savings Scheme (ELSS):
Certain mutual fund schemes have been designed especially for the purpose of tax savings. Equity Linked Savings Schemes, or ELSSs as they are generally called,
allow investors to claim tax deductions to the extent of Rs.1.5 lakh under Section 80C of the Income Tax Act.
Section 80D
Premium paid on health insurance and expense incurred towards preventive health checkup can be claimed as a deduction under
Section 80D.

Who is eligible for a tax deduction under section 80D of Income Tax Act,1961?

Individual and Hindu Undivided Family (HUF) can claim deduction from taxable income under Section 80D. A person can claim a
deduction for the health insurance premium and expense incurred towards preventive health checkup for self, spouse, dependent
children and parents. This is-subject to the terms and conditions mentioned in the Section 80D of the Income Tax Act, 1961 .

What is the limit of deduction under section 80D of Income Tax Act, 1961?
For a person aged below 60 years, the limit for deduction under Section 80D is upto `25,000. The limit of `25,000 includes `5,000 on
preventive health checkup. If the age of the insured is above 60 years, the limit for deduction increases upto `50,000.

What are the exclusions under section 80D?

A deduction under Section 80D cannot be claimed

i. If payment for health insurance premium is done by cash. Payment for the medical expense can be made by cash.

ii. If payment is made on behalf of working children, siblings, grandparents or any other relative

iii. Group health insurance premium made by the company on behalf of the employee
Section 80DD
Deduction under section 80DD of the income tax act is allowed to Resident Individuals or HUFs for a dependant-who
is differently-abled and– is wholly dependent on the individual (or HUF) for support & maintenance.
Below are the conditions you must meet to avail this deduction –
Deduction is allowed for a dependant of the taxpayer and not the taxpayer himself.
The taxpayer is not allowed this deduction if the dependant has claimed a deduction under section 80U for himself/herself.
Dependant in case of an individual taxpayer means spouse, children, parents, brothers & sisters of the taxpayer. In case of a HUF means a
member of the HUF.
The taxpayer has incurred expenses for medical treatment (including nursing), training & rehabilitation of the differently-abled dependant or
the taxpayer may have deposited in a scheme of LIC or another insurer for maintenance of the dependant.
Disability of the dependant is not less than 40%.
Disability is defined under section 2(i) of the Persons of Disabilities Act, 1995.

When the above conditions are met, amount of deduction allowed is –

Rs 75,000 (Starting from the financial year 2015-16) where disability is more than 40% and less than 80%.
Rs 1,25,000 (Starting from the financial year 2015-16) where disability is more than 80%.
These deductions are allowed irrespective of your actual expenditure.
Section 80CCC
What is Section 80CCC
The Section 80CCC exemption limit includes the money spent on the purchase of a new policy or payments made towards renewal or continuation of an existing
policy.

The primary condition for availing this exemption is that the policy for which the money has been spent must be providing a pension or a periodical annuity.

Section 80CCC is read along with Section 80C and Section 80CCD(1), thereby limiting the total exemption limit to Rs. 1,50,000/- per annum.

Section 80U Deductions for the Disabled

Section 80U
Section 80U of the income tax is a deduction for the disabled person. This section provides a flat deduction to the disabled person on the basis of severity of
disability irrespective of the amount of expenditure.

The conditions to claim this deduction are -

Tax-payers should be a resident individual.

He should be suffering from at least 40% disability.

The disability should also be certified by the recognised medical authorities.

Section 80E
Section 80E of the Income Tax Act provides provisions for tax deduction on educational loans. Such loans can be availed for higher studies of the spouse or children of
a taxpayer, with the deduction available only on the interest component of said loan.This essentially means that any interest paid by an individual towards clearing an
educational loan qualifies for deduction under Section 80E.
Tax deduction towards payment of interest can be claimed only after an individual has started repaying the loan, and can be claimed only in the particular years when
interest is being paid on the educational loan.

Deductions under Section 80E

Section 80E provides for tax deduction only on the interest component of an education loan for higher studies. The principal amount cannot be claimed for deduction
under this section. Deductions can be claimed from the start of first repayment till 7 more repayments are made, that is, a total of 8 deductions are available with respect
to the interest component. Higher education, under Section 80E refers to education after completing the Senior Secondary Examination or its equivalent.

Eligibility for Tax Deduction under Section 80E

There are certain eligibility criteria associated with tax deductions available under Section 80E of the Income Tax act, some of which are mentioned below.
Only individuals are eligible for tax deductions under this section. Hindu undivided families and companies cannot avail deductions under this section.
Deduction can be claimed only on the interest component of a particular educational loan.
Only those loans availed from recognized financial institutions and charitable organizations are eligible for tax deduction. Loans obtained from friends or relatives are
noteligible under this section.
Loans can be taken by a taxpayer towards fulfilling the educational commitment of either himself/herself or his/her spouse or children.
Deduction can be claimed only if the loan is availed for purpose of higher education.
Deduction can be availed only for 8 years, beginning from repayment from the first year.
Deduction can be claimed only if the loan is taken under the name of taxpayer.
5.BASIC FUNDAMENTAL FOR COMPUTATION OF TOTAL INCOME
FOR AN INDIVIDUAL

PROF. SURESH PUJARI

Income from Salary :

The amount received by you from your employer every month comes under the head
income from salary. As per law, employer-employee relationship is must to consider
the amount as income from salary else it will be considered under other head and
therefore exemptions, allowances available to a salaried individuals will not be
available.
The amount of your Salary includes basic pay, dearness allowance, medical,
transport, annuity, gratuity, advance of salary, allowances, commission, perquisites in
lieu of salary and retirement benefits etc.; The aggregate of the above incomes, after
the exemptions but before the deductions, is known as Gross Salary and this is
charged under the head income from salary. (you can refer to column no. 6 of your
Form- 16 to know your taxable salary amount
Income from Business or Profession
: Income earned through business or profession is taxable under the head ‘profits and gains of business or profession. The income
on which tax is levied shall be net of expenses.
The income on which tax is levied shall be net of expenses.
Income from capital gains :
Any profit or gain arising from transfer of capital asset held as investments (such as house, Jewellery are chargeable to tax under
the head capital gains. The gain can be on account of short-term and long-term gains. Our article Basics of Capital Gain talks
about it in detail.
Income from other sources :
Any income that does not come under the above four heads of income is taxed under the head income from other sources. For eg.
savings bank interest,lottery you win (probably never :P) or Reality shows like “Kaun Banega crorepati” etc. all these Incomes are
taxable that means the person winning 1 Crore in the show will have to pay 30% of tax. so he actually never became crorepati
Income from House property :
Any Rental Income from residential or commercial property that you own will be taxed. If you have home loan then interest part
of it would also be considered as negative income from House property.
NEWSWIRE
 1. RBI PLANS TO CONNECT CREDIT CARDS TO UPI MAY BENEFIT FINTECHS

The Reserve Bank of India plans to connect credit cards to UPI with the help of fintech companies like Paytm, according to Citi and Goldman Sachs.

Analysts at both brokerages agreed that the move will be crucial for Paytm and other fintech businesses, since they will be able to monetize UPI payments
and make more money.

In June 2022, the RBI recommended attaching RuPay credit cards to the UPI, claiming that it has become the country’s “most inclusive means of payment”
and that the move is intended to broaden the reach of the UPI.

Goldman Sachs indicated in a June 10, 2022 note that the central bank’s action will “positively influence” fintech firms like Paytm and perhaps enhance
credit card use in the nation.

“In our view, this could potentially increase credit card penetration and expand the scope of digital payments in India, positively impacting both card
companies (such as SBI Cards) and fintech platforms (such as Paytm),” reported ANI citing Goldman Sachs report.

Citi, another major brokerage business, stated that the change from debit/bank accounts to credit cards may boost the monetisation of UPI payments,
which will benefit Paytm and other fintech platforms.

According to the brokerage business, it appears that all of the latest digital payment criteria are either helpful to Paytm or will have no influence on the
company’s operations. Several worldwide brokerages continue to be optimistic on Paytm shares, noting the company’s quick revenue growth, expedited
loss reduction, and significant increase in contribution margin.

According to Goldman Sachs, limits on digital lending are unlikely to have an influence on Paytm’s operations, but will assist to make the company more
appealing. In August, the RBI issued digital lending guidelines to enable the orderly rise of credit delivery through digital lending while minimising
regulatory issues and protecting clients.
 2. DIRECT TAX COLLECTION GROWS 30% IN FY23,
ADVANCE TAX MOP-UP JUMPS 17% IN FIRST TWO
QUARTERS
CBDT said that the growth of direct tax collection is a clear indicator of the revival of economic activity
post-pandemic. The government also released the data of tax collected saying it is focusing on
simplification and streamlining of processes.
The finance ministry on Sunday said that the net direct tax collections grew 30% to Rs 8 lakh crore till
September 17 of current fiscal year on increased advance tax mop-up.

"The Gross collection of Direct Taxes (before adjusting for refunds) for the FY 2022-23 stands at Rs.
8,36,225 crore compared to Rs. 6,42,287 crore in the corresponding period of the preceding Financial Year
i.e. FY 2021-22, registering a growth of 30% over collections of FY 2021-22", The Finance Ministry stated in
a press release.

“Direct tax collections continue to grow at a robust pace, a clear indicator of the revival of economic
activity post-pandemic, as also the result of the stable policies of the government, focusing on
simplification and streamlining of processes and plugging of tax leakage through effective use of
technology” the Central Board of Direct Taxes said in a statement.
The Finance Ministry highlighted that the cumulative Advance Tax collections for the first and second quarter of the FY 2022-23 stand at Rs. 2,95,308 crore
as on 17.09.2022, against Advance Tax collections of Rs. 2,52,077 crore for the corresponding period of the immediately preceding Financial Year i.e FY
2021-22, showing a growth of 17%.

The Advance Tax collection of Rs. 2,95,308 crore comprises Corporation Tax (CIT) at Rs. 2,29,132 crore and Personal Income Tax (PIT) at Rs. 66,176 crore.
There has been a remarkable increase in the speed of processing of income tax returns filed during the current fiscal, with almost 93% of the duly verified
ITRs having been processed till 17.09.2022. This has resulted in faster issue of refunds with almost a 468% increase in the number of refunds issued in the
current financial year," the Ministry said in a release.

"Refunds amounting to Rs. 1,35,556 crore have been issued in the FY 2022-23 till 17.09.2022, as against refunds of Rs. 74,140 crore issued during the
corresponding period in the preceding Financial Year 2021-22, showing a growth of over 83%," it added.
 3. HOW TO START INVESTING IN THE
STOCK MARKET AS A BEGINNER
Investing in the stock market investing can be a daunting task for beginners. Here are 5 points on how a market novice can start investing.

Stock market investing can be a daunting task for beginners. Even seasoned investors occasionally find it challenging to maneuver and make choices in up-and-
down markets. Today we will go over 5 points on how a market novice can start investing.

1. Invest in yourself before investing in the market

One of the most common mistakes people do is to venture into something that they don’t know about or have very little knowledge of. As the Oracle has said, “The
best investment you can make, is an investment in yourself.” Warren Buffett knows that the mind is the most important asset that one can invest in, which is why he
spent 80 percent of his day reading and thinking. So, the first step to becoming a successful investor is to start reading. One can start with the basic financial
statements; such as Balance Sheets, P&L, and Cash flow statements, and then can move on to read about legendary investors who have amassed enormous wealth
in the markets like Warren Buffett, Jim Simons, Peter Lynch, and Ray Dalio.

2. Clearly defining the risk and goal

Setting goals is essential in everything you do, including life and investing. Every person has different goals. A person at age of 18 may have a goal to become
financially independent at an age of 30, and a person at age of 30 might want to invest in a child’s education, tuition, or marriage. If you’re older, you might desire
to grow and safeguard your wealth for retirement.

3. Understand the business and invest only in what you know

Understanding the business is the first step in investing. One should always read in-depth about the product and services that the company offers. Some of the key
things to know about the company are products/services, the raw material (if it is a manufacturing company), rivals, industry, risks for the business, geography
where the company operates, and the management which runs the company. After carefully reviewing the aforementioned information one can get in-depth
knowledge about the business of the company. The second thing for the investor is to focus on the area which matches his/her skills and expertise. An individual
working in the IT industry will understand the company which provides IT services. Likewise, an individual familiar with the chemical manufacturing industry will
understand the chemical company.
4. Obtain first-hand knowledge through quarterly and annual reports
In this era of the internet where information is cheap and readily available, it is hard to restrain yourself from
fake information and rumors. As a beginner, one should always focus on reading annual and quarterly
reports provided by companies. The companies provide these reports to the investors and explain the
current state of the business. These reports provide all the data pertaining to the company’s financial
situation.

5. Be practical and start early

The stock market has a lot of emotions, sometimes it becomes upbeat and exciting, and sometimes desperate and panicked. As a beginner, it is important to feel all
these emotions as they help an investor to get the experience in real-time. To be a part of these important emotions one should always start early and start
investing. Warren Buffett bought his first share when he was 11 years old. So, starting early is always good.
 4. SAVING V/S INVESTING
A detailed analysis on saving and investing, so that you can decide whether to save or invest according to your financial goals

At the outset, let’s differentiate between the two terms, viz. savings and investment. While the terminology is often used interchangeably, there is a
perceivable difference between the two.

Savings: can be defined as money that is available when you need it, making it easily accessible. However, the downside is that it may lose value owing to
inflation.

Investments: can be defined as contributing your money (or savings) to a financial instrument such that it may have the potential to increase in value over time,
even allowing for inflation.

While savings may help you gain financial freedom, they may not help you work towards creating wealth in the long run. For instance, you may have funds at
hand in order to purchase your dream car, but when you’re planning ahead for your retirement , the prudent investment would help you build a possibly
sizeable corpus given time and the right investment tool.

A good way to decide whether you should save or invest could be to identify your purpose or
goal, whether they are short term or long term. Though it may be helpful to save a decent
amount of money to meet your short term goals, emergencies and casual expenses; in the long
run your needs may change and inflation will also be accounted for where saving money may
not help to achieve your long term financial goals.

Investment can help to bridge the gap between your future financial goals and your current
situation. For potential wealth creation, it is advisable to start investing early. When you plan to
invest for the future, always keep your financial goals and investment horizon in mind. It also
helps to understand just how much risk you are willing to undertake in order to earn
commensurate returns.
 5.EXCHANGE TRADED FUNDS - EVERYTHING
YOU NEED TO KNOW BEFORE INVESTING
A guide on exchange traded funds and the advantages of investing in them

Fund investments are popular mainly because of the ease of investing and maintenance. Of course, investing in them
also requires research and regular monitoring, but they tend to demand much less effort than manually managing a
portfolio of different securities

The same can be true for equity investments as well. While creating and managing your portfolio could be equally
fruitful, investing in a fund could make your job easier. Exchange traded funds or ETFs are one of the options that
you can consider here. Read on to learn more about exchange traded funds and the advantages of investing in them

What is an ETF?

ETFs are funds that track a particular index as it is. For instance, an ETF that tracks the Nifty 50 will have a portfolio that is precisely similar to the index's
composition. This allows you to benefit from the growth of the index directly on similar levels

In many ways, an ETF is similar to a mutual fund, but there are a fair few differences between the two as well. But first, let us look at the similarities.
Differences

The main difference between an ETF and a mutual fund is the management style. Most mutual funds are actively managed. That means, the fund manager may
constantly monitor and tweak the portfolio for best performance. But in the case of an ETF, since the fund tracks an index exactly as it is, it is only passively
managed. Instead of picking out the securities manually through research, the fund manager in an ETF brings about changes only when there is a change in the
index's composition.

Also, ETFs' units are tradable in the stock market. That means you can trade their units as you do with stocks, whereas mutual funds' units cannot be sold to
another investor.
Types of ETFs

There are many types of ETFs for you to choose from, including the above-mentioned equity ETFs. Let us look at them in detail.

1. Equity ETFs

Equity ETFs are funds that follow stock market indexes like Nifty and Sensex. They tend to be the most popular ETFs as well. There are equity ETFs that
track different sectors also. For example, an FMCG ETF will track an FMCG index like Nifty FMCG.

2. Fixed-income ETF
They are funds that invest in fixed-income securities like bonds, debts etc. Since these are not market-linked, they tend to be more suited for conservative
investors.

3. Commodity ETFs
As the name suggests, these ETFs track the prices of different commodities like gold, silver etc. Thus, investing in commodity ETFs becomes a good way to
diversify your portfolio by including different asset classes. Diversification can help balance your portfolio, and may also help mitigate the risk inherently
associated with investments.

4. Currency ETFs
Currency ETFs invest in different currencies from across the world. ETFs either invest in a single currency or a basket of the same. These ETFs help investors
participate in the currency markets without actually buying currencies. Like commodity ETFs, reserving space for currency ETFs in your portfolio helps with
diversification.
 6.DIRECT TAX – DEFINITION, TYPES, ADVANTAGES AND
DISADVANTAGES
Direct tax is the tax levied on individuals or businesses for which they are directly responsible. The most common direct taxes are income taxes, property taxes, and
inheritance taxes. Direct taxes are generally progressive, meaning that tax rates increase as income or wealth increases.

Direct taxes are paid to the government by the taxpayer, and they can be either mandatory or voluntary. Direct taxes are typically imposed by the government on taxpayers
who earn income from wages, salaries, tips, interest, dividends, and other forms of investment.
What Is Direct Tax?

Direct tax is the most common form of taxation, levied directly or straight on individuals by the government, such as income tax, poll tax, land tax, and personal property
tax. They are levied on both individuals and businesses.

The tax rate is usually based on the amount of income earned. For example, the tax rate may be 20% for incomes between $50,000 and $75,000, and 30% for incomes over
$75,000. The United States has a direct tax system, which means that taxpayers are required to pay taxes directly to the government. The most common type of direct tax in
the United States is the personal income tax.

Meaning of Direct Tax

Ability-to-pay is the most common principle used to assess taxes in the United States. This economic idea claims that individuals with more resources or a greater income
should shoulder a larger tax burden.
The income tax act refers to the tax imposed on the income of individuals, corporations, trusts, and other legal entities. Direct taxes are levied by the government on the
earnings of an individual or organization.
Many people believe that it serves as a deterrent for people to work hard and increase their salaries because the more money they make, the more taxes they will be
required to pay. Personal income taxes can’t be passed on to a new person or entity. The person or organization against whom the tax is levied will only be responsible for
paying it.
How Direct Taxes Work?

When you file your taxes each year, you are required to pay a certain amount of money to the government based on your income. This money is used to fund various
public services like roads, schools, and national defense.
The amount of money you owe in taxes is determined by your tax bracket. Your tax bracket is the range of income that is taxed at a certain rate.
For example, if you are in the 25% tax bracket, any income you earn between $37,500 and $90,750 will be taxed at 25%.
If you have a taxable income of $50,000, your marginal tax rate would be 28%, meaning that your last dollar of income would be taxed at that rate. However, your
effective tax rate would be lower because only a portion of your income is actually taxed at 28%. Your effective tax rate is the total amount of taxes you owe divided by
your total income. So, if you owe $14,000 in taxes on a total income of $50,000, your effective tax rate would be 28%. The progressive nature of the U.S. tax system
means that people with higher incomes pay a higher percentage of their income in taxes than people with lower incomes.
For example, someone who earns $200,000 a year may pay an effective tax rate of 30%, while someone who earns $20,000 a year may only pay an effective tax rate of
10%.
While the progressive tax system may seem unfair to some people, it is actually designed to make the tax burden more equitable. People with higher incomes can
afford to pay a larger share of their income in taxes because they have more money left over after they pay for their basic needs. People with lower incomes, on the
other hand, may have a hard time making ends meet if they are required to pay too much in taxes.
Direct taxes are also imposed on businesses and organizations. Businesses are required to pay corporate income taxes, which are levied on the profits of a company.
Nonprofit organizations are also subject to direct taxation. They are required to pay taxes on any income that is not related to their charitable mission. Direct taxes can
be imposed at the federal, state, and local levels. The most common type of direct tax is the personal income tax, which is imposed by all levels of government.

Types of Direct Taxes

1. Income Tax

An income tax is a tax that is imposed on individuals, businesses, and other entities based on their income. A percentage of a worker’s pay is taken, depending on how
much he or she makes. The bright side is that the government is also interested in disclosing credits and deductions that can help to lower one’s tax burden.

2. Transfer Taxes

A transfer tax is a tax that is imposed on the transfer of ownership of property. The most common type of transfer tax is the estate tax, which is imposed on the
transfer of property from a deceased person to his or her heirs. Other types of transfer taxes include gift taxes and sales taxes.
3. Entitlement Tax
An entitlement tax is a tax that is imposed on the receipt of certain government benefits. The most common type of entitlement tax is the Social Security tax,
which is imposed on workers who receive Social Security benefits. Other types of entitlement taxes include Medicare taxes and Medicaid taxes
4. Property Tax
A property tax is a tax that is imposed on the ownership of property. Property taxes are levied by both state and local governments. The amount of tax owed
is based on the value of the property. Property taxes are used to fund various public services, such as schools and police departments.
5. Capital Gains Tax
A capital gains tax is a tax that is imposed on the sale of assets, such as stocks, bonds, and real estate. The tax is imposed on the gain from the sale, which is
the difference between the purchase price and the sales price. Capital gains taxes are typically imposed at lower rates than other types of taxes, such as
income taxes.
Advantages of Direct Tax

1. Direct taxes are generally considered to be more stable than indirect taxes. This is because direct taxes are less susceptible to economic fluctuations.

2. Direct taxes are also considered to be more efficient than indirect taxes. This is because direct taxes are less likely to result in the distortion of economic
activity.

3. Direct taxes are also considered to be more equitable than indirect taxes. This is because direct taxes are based on the ability-to-pay principle, which
states that people should be taxed according to their ability to pay.

4. Direct taxes can also be used to achieve specific policy goals. For example, direct taxes can be used to redistribute income from high-income taxpayers to
low-income taxpayers.

5. Direct taxes can also be used to finance public goods and services. This is because direct taxes are typically mandatory, which means that everyone who is
subject to the tax must pay it.

6. Direct taxes can also be used to discourage certain activities. For example, high taxes on cigarettes and alcohol can discourage people from consuming
these products.
Disadvantages of Direct Tax

1. Direct taxes are generally considered to be more burdensome than indirect taxes. This is because direct taxes are typically mandatory, which means that
people have to pay them even if they cannot afford to do so.

2. Direct taxes are also considered to be more complex than indirect taxes. This is because direct taxes often involve a lot of paperwork and record-keeping.

3. Direct taxes are also considered to be more intrusive than indirect taxes. This is because direct taxes often require taxpayers to disclose personal information,
such as their income and assets.

4. Direct taxes can also be used to finance activities that some taxpayers may object to. For example, direct taxes can be used to fund military interventions in
other countries.

5. Direct taxes can also be used to finance activities that some taxpayers may consider to be wasteful or unnecessary. For example, direct taxes can be used to
fund the construction of roads and bridges that are not needed.

6. Direct taxes can also create incentives for tax avoidance and tax evasion. This is because taxpayers may attempt to avoid or evade taxes if they believe that
the taxes are too high.

7. Direct taxes can also lead to economic inefficiency. This is because high direct taxes can discourage work, savings, and investment.

8. Direct taxes can also lead to economic inequality. This is because direct taxes tend to be progressive, which means that they place a greater burden on high-
income taxpayers than on low-income taxpayers.

9. Direct taxes can also be used to finance activities that some taxpayers may consider to be unfair or unjust. For example, direct taxes can be used to fund the
construction of prisons or the death penalty.
 7. MF INVESTMENT: HOW TO MAKE MORE
MONEY BY INVESTING IN MUTUAL FUNDS
It is important to know why mutual funds are worth investing in before setting out to know how it will help you
create wealth.
Mutual funds have grown steadily in popularity over the years. Investing in mutual funds seems to be the best option for those looking to grow their
wealth quickly. Mutual fund investments come with a number of risks, but diversification ensures the risk is minimised to a certain extent.

1. Managing risk through diversification:

A mutual fund invests in a variety of stocks or bonds across different sectors or issuers, thus diversifying risk. A diversified portfolio minimizes the risks
associated with individual stocks and bonds.

2. Management by professionals:

It is the responsibility of professional fund managers to ensure that mutual funds are managed in accordance with their investment objectives. Research
teams assist fund managers in selecting stocks and managing portfolios.

3. Offering a wide range of solutions:

A wide variety of mutual funds are available to meet the investment needs and risk appetites of investors of different levels of experience. The purpose of
investing in equity funds is to meet long-term goals like retirement, children’s higher education, marriage, etc., while investing in debt funds is to meet
short-term needs like regular income or shorter investment periods. An investor with varying risk appetite can choose a hybrid mutual fund that combines
both equity and debt.
4. Tax benefits:

The tax efficiency of mutual funds makes them an attractive investment option.Short term capital gains (held for less than
12 months) in equity funds are taxed at 15% and long-term capital gains (held for more than 12 months)
at 10% (over Rs 1 lakh capital gains). Capital gains on non-equity funds are taxed at your income tax rate, while long-term
capital gains on non-equity funds are taxed at 20% after indexation. Traditionally, interest income from fixed income
investments is taxed according to the investor’s income tax rate. In comparison with traditional fixed income investments,
mutual funds offer significant tax advantages to investors in higher tax brackets.

5. Tax rebate:

In order to take advantage of Section 80C tax benefits, you can invest in ELSS mutual funds.

6. Liquidity:

There is no doubt that open ended mutual funds are among the most liquid investments after bank deposits, and are far more liquid than investments such as life
insurance plans, infrastructure bonds, and post office schemes. There is usually no problem redeeming liquid, overnight, low duration, and ultra-short funds on the
next working day.
 8. INDEX MUTUAL FUNDS: EVERYTHING YOU NEED TO KNOW
BEFORE INVESTING
What are Index Mutual Funds?

An index mutual fund is an open-ended scheme that invests the majority of its investible corpus in underlying
securities that comprise a benchmark, like the NIFTY 50 or the SENSEX 100. These funds invest a minimum of 95
percent of their total assets in the equity and equity related instruments of companies listed under a particular
index, without changing the composition. Since these are passively managed funds, the portfolio manager ensures
that the composition of the index funds remains aligned with that of the securities in the underlying index. Unlike
other mutual funds that aim to outperform their benchmark, index funds aim at generating returns close to that of
the underlying benchmark instead of outperforming.

Understanding how Index Mutual Funds work

Let us assume that a particular index fund is tracking CNX NIFTY (NIFTY 50) as its underlying benchmark. Such an index fund portfolio will comprise
all the 50 stocks from the index in the same proportion as they are listed on the index. An index may comprise of equity and equity related
instruments, or they may also comprise of fixed income securities. Such indexes are referred to as fixed income indices of bond indices. When it
comes to active funds, the fund managers actively manage the fund’s portfolio and are the decision makers. They are there to ensure that the fund
generates benchmark beating returns and returns that will outperform the competition. But in the case of passively managed funds like index funds,
these do not try to outperform their underlying index. Instead, index funds follow a passive investment style and are designed to closely track their
benchmark and generate similar returns. However, the returns generated by index funds are subject to tracking errors.
Index Mutual Funds are ideal for

When investing in mutual funds, investors must first identify the risks associated with the scheme, then
determine if their risk appetite allows them to take such risks. Also, it is important to ensure that the
investment objective of the scheme aligns with that of the investor. Index funds that comprise stocks as
their underlying securities have very high investment risk. Investors may even take a look at the
riskometer, to understand the volatility factor.

Investors who have a very high risk appetite and are willing to invest for the long term may consider
adding index funds to their mutual fund portfolio. At times, investors are not comfortable with the fact
that the returns generated by a mutual fund scheme are driven by human emotions.

Things you should consider before investing in Index Mutual Funds

Before investing in index mutual funds, investors must ensure that they have a long-term investment horizon. To allow an equity linked scheme like
an index fund to perform to its fullest potential, it is advisable for the investor to remain invested for the long run. Short-term investing in equity-
oriented index funds may not be advisable as equity investments are constantly affected by fluctuations in the market and may even generate
negative returns in the short run. To witness their investments grow and compound gradually, investors need to be patient and remain invested in
index funds keeping a long term investment time horizon. Since index funds are more likely to perform over the long term, investors can target their
life’s long term financial goals with index funds. If wealth creation is on your mind, then index funds can give your portfolio the much needed push.
One may even consider index funds for goals such as retirement planning. Index funds are known to have a high risk-return tradeoff. Although there
is a very high investment risk, there is a possibility that the scheme may allow investors to earn some capital appreciation over the long haul.
When we talk about index mutual fund investments, it is impossible to exclude the expense ratio from the discussion. Unlike actively managed funds
that have a considerably high expense ratio, index funds are considered to be a cost-effective investment. The returns generated by index funds are
through a passive investment strategy. The fund manager need not devise an investment strategy for the fund to generate returns. Index funds track
their underlying benchmark and try to generate similar returns. Since there isn’t much involvement from the management, index mutual funds
attract a low expense ratio. Do understand that if there are two index funds tracking the same index as their benchmark, they are probably going to
generate similar returns. Hence, in such a scenario an individual may consider the index fund with a lower expense ratio.
9.CASH FLOW – DEFINITION, TYPES AND STRUCTURE
What is Cash Flow?
Definition: Cash flow is defined as the total amount of cash and cash equivalents that businesses generate and
spend over a given time period. Cash flow is different from profit, as cash flow alludes to the money that comes in
and goes out of a business while profit is the money that businesses have subsequent to deducting their
operational expense from the revenues.

In cash flow, the cash received is understood as inflows, while cash spent is called outflows. An organization’s
capacity to make an incentive for investors is understood by its ability to generate positive cash flows or to amplify
long-term FCF or free cash flow which is the cash that an organization generates from its not normal business
operations subsequent to subtracting any money spent on capital expenditures (CapEx).

Cash Flow Statement

The statement of cash flows can be understood as a financial statement that sums up the in and out movements of CCE (Cash and Cash Equivalents).
The CFS is used for estimating how adeptly a business handles its cash position.

It also suggests how well the business generates cash for paying its debt obligations and financing its operating costs
Structure of the Cash Flow Statement

Three components that make the structure of the cash flow statement are-

1 Cash from Operating Activities

These activities incorporate any sources and uses of cash from a wide range of business operations. It also suggests how much money is
generated from the products or services of the company. Some of such operating activities refer to the Receipts from sales of goods and
services, income tax payments, interest payments, rent payments, payments made to suppliers of goods and services used in production,
salary and wage payments to employees, etc.

2. Cash from Investing Activities

They incorporate any sources and uses of money from the investments of a company. Buys or sales of assets or loans that are made to
vendors or received from the clients or any other payments associated with M & A mergers and acquisitions are incorporated in this
category.

3. Cash from Financing Activities

They incorporate the sources of cash from the investors as well as banks along with the way money is paid to investors or shareholders.
They also incorporate any profits or dividends along with the repayment of debt principal (loans) that are made by the company, payment
for stock repurchases, etc.

Uses of Company’s Cash Flow Statement

Cash flow is involved in multiple uses in operating a business as well as performing financial analysis. As a matter of fact, it’s one of the
main measurements in all accounting and finance activities. The most widely recognized cash metrics that cash flow helps in finding out
are-

1. Net Present Value

2. Internal Rate of Return

3. Liquidity

4. Cash Flow Yield

5. Cash Flow Per Share (CFPS)

6. P/CF Ratio

7. Cash Conversion Ratio

8. Funding Gap

9. Dividend Payments

10. Capital Expenditures, etc

 10. ONLINE SAFETY: 10 MUST-DOS TO STAY SAFE ONLINE  
SHARE PERSONAL INFORMATION IN REAL TIME ONLY, PREFERABLY IN PERSON OR BY PHONE.
BE CAREFUL OF WHAT YOU SHARE ON SOCIAL MEDIA
Cybercrime is globally disruptive and economically damaging. Microsoft’s 2021 Global Tech Support Scam Research report observed that seven out
of 10 consumers in India were targeted by a tech support scammer in the last 12 months. This spurt in cybercrime has made it very important for
individuals to know how to stay safe, online. Here are 10 must-dos to keep your email, accounts, devices safer and avoid identity theft:
 
  Share personal information in real time only, preferably in person or by phone. Be careful of what you share on social media
 
If you absolutely must email personal information, use encryption tools provided by your email service provider. Protect yourself from social media
hackers. Before you post to social media, think of all the information that can be harvested from your post.
 
Be skeptical of messages with links, especially those asking for personal information Find a phone number on the sender’s official website and call
them directly to confirm the message is legitimate. Be on guard against messages with attached files
Never open unexpected attachments, even if they seem to come from people or organizations you trust. If needed, call the sender to verify.
 
Go password less and use an authenticator app for stronger security
 
Turn passwordless by signing in with your phone, switching to Windows Hello. If you must use passwords, make them strong and unique with a
password manager Strong passwords have at least 14 random characters and symbols. Use your browser to remember passwords and manage
password changes.

Enable the lock feature on all your mobile devices. Require a PIN, fingerprint, or facial recognition to unlock your device. Install software updates
immediately
 
Many app and operating system updates are security fixes for currently active issues, so install them promptly.
Ensure all the apps on your device are legitimate
only install apps from the official app store for your device. Keep system secure with
‘Tamper Protection’ or adjusting security settings
 
Use the latest version of your operating system. Increase the security on your system
by using features like Tamper Protection on Windows 11.
 
Keep browser updated, browse in incognito mode, enable Pop-Up Blocker Install
browser and operating system updates immediately to maintain the latest security
standards.