Wealth creation for children*

*Wealth creation for children*

It is a topic of increasing interest among parents and financial advisors.

It has two parts , one is investing by you as a parent regularly to make their dreams come true. 

And the second is inculcating the habit of saving, and investing at their young age. 

One takes care of their financial well being at a later stage which you are doing at present. 

Another one takes care of their Habits cultivated early for their  well being when they grow older. 

Here's a breakdown of key strategies and considerations:

Early Savings and Habits. 

  *Start Early:* 

The power of compound interest is significant. Even small, regular contributions can grow substantially over time.

 *Savings Accounts* : 

A good starting point for young children. Open a Bank Account in the name of your minor children and inculcate them a good habit of Savings. 

  *Age-Based Savings Accounts:* 

Consider accounts with features that adjust investment risk as the child ages 

 *Teaching Financial Literacy:* 

 *Practical Lessons* : Involve children in budgeting, saving for goals, and understanding the value of money.

 *Age-Appropriate Discussions* : 

Tailor conversations to their understanding.

 *Role Modeling:* 

Children learn by observing. Demonstrate responsible financial habits.

 *Investing* :

============

 *Long-Term Perspective:* Investing for children is typically a long-term endeavor, allowing for greater risk tolerance.

  *Diversification* : 

Spread investments across different asset classes (stocks, bonds, real estate) to manage risk.

 *Consider a Custodial Account* : 

Allows parents to invest on a child's behalf, with the child gaining control at a specified age.

 *Entrepreneurship* :

 *Encourage Creativity* : Support their ideas and help them explore business concepts.

 **Teach Problem-Solving:* Emphasize identifying needs and developing solutions.

  *Start Small* : 

Encourage them to plan to save for a predicted future expenses however small it is .  Like buying their most liked toys only after saving in small amounts every day/week /month. 

 *Key Considerations:* 

 *Child's Age and Maturity* : Tailor strategies to their developmental stage.

  *Goals* : Are you saving for college, a down payment, or general financial security?

  *Risk Tolerance* : Understand your and your child's comfort level with investment risk.

 *Professional Advice:* Consult your trusted financial advisor for personalized guidance.

Consult your Trusted Mutual Fund Distributor Sridhar Rajasekar S -Shree Investments.

     Credit :-   Inputs from various articles published already by some authors.

ELSS -EQUITY LINKED SAVINGS SCHEME

We are about to enter the final quarter of FY 2024-25. 

 Investors in the old tax regime should ensure the tax planning for FY 25 well before the deadline of 31st March. 

 In the old tax regime, tax payers can claim a deduction of up to Rs 1.5 lakhs under section 80 C by investion in certain financial instruments. 

Mutual Fund ELSS is such an Financial instrument. 

What is ELSS? 

Equity Linked Savings Schemes are diversified equity funds with a lock-in period of 3 years. 

 These funds diversify across different industry sectors and market capitalization segments. Y

ou can start investing in ELSS with a minimum of Rs 100 only. 

There is no upper limit of investments in ELSS; however, you can claim tax deduction of up to Rs 1.5 lakhs u/s 80C. 

Why invest in ELSS for tax savings? 

Equity linked savings schemes are equity market linked investments, and as an asset class,which can be volatile, but have the potential of giving superior returns in the long term. 

Since ELSS funds can invest across market capitalizations segments, there is opportunity for fund managers to create alphas by investing in a bigger universe of stocks. 

 The three year lock-in period of ELSS enables fund managers to invest in high conviction stocks for a long period of time because of relatively less redemption pressure. 

ELSS is the most liquid investment option u/s 80C. ELSS has lock-in period of three years, whereas minimum lock-in period of other 80C investment options is 5 years. 

 ELSS is one of the most tax efficient investment options u/s 80C. Capital gains in ELSS are tax exempt up to Rs 1.25 lakhs and taxed at 12.5% thereafter. In this article we will review Groww ELSS Tax Saver Fund. 

                                                                               -article courtesy "Advisor Khoj

*Domestic Economy not as bright as it is reported in News Media

 *Tread with Caution*

1. Trump threatens 100%. tariff on BRICS Country 

2. Domestic Passenger vehicle sales dipped in   

   November, @ 3.3 lakh against  3.8 lakh in Nov. Last 

    year

3. In July-Sep. 2024, Manufacturing @ 2.2%; Mining & 

    Quarrying @0.1%. most sluggish.

4. Agri sector positive expanded 3.5% higher than 

     previous & Quarters

5. Sharply Lower than Expected GDP figures highly 

     dissapointing

6. Corporate earings - Mamfacturing sector appears to 

     have taken maximum beating - Upasana Bhanatway 

     - Chife Economist @kotak Maluindra Bank'

7. PMI Index is bumpy (Purchase Managers Index - 

    which represents Mfg sector

8. Slower Credit growth.

9. Barclays. lowered Indias GDP growth from 6.8%, to 

     6.5%,

10. Retail Inflation zoomed to 6.4% Growth

11.  RBI Challange - Lower than Expected GDP. and 

      higher than tolerable Inflation

11. RBI may not cut Interest rate during this Dec 6 MPC 

     meeting .

With all these factors , coupled with Gio political factors ,we at Shree Investments strongly advice you to enhance MULTI ASSET ALLOCATION,Multicap funds, Flexi Cap funds in your portfolio for any new Investment. 

- Shree Investments 

- 05-12-2024.

Money Mistakes

Avoid these money mistakes:

1️⃣ *Worrying Only About Bills:*

 If you focus only on expenses, you might miss out on ways to grow your money.  

2️⃣ *Saving Too Much and Not Investing:* Relying only on savings can let inflation eat away at your money’s value. Invest to make it work for you!  

,3️⃣ *Spending for Quick Happiness:* Buying things for instant joy might feel good now, but it can hurt your finances in the long run.  

4️⃣ *Thinking You Know It All:* Being too confident about your money skills can lead to mistakes that cost you.  

5️⃣ *Spending More with Every Raise:* Upgrading your lifestyle every time you earn more makes it harder to save and build wealth.  

 **Change your money mindset, and you can change your future!* 

* 

What’s your main reason to save right now?  

- Emergency fund safety  

* Education for children  

* Saving for a wedding or family wedding  

* Buying a car or home  

* Starting a business  

 *Now that you’ve picked your goal, take action* 

— *start Investing* 

Consult your  *Trusted Mutual fund Distributor* 

SRIDHAR RAJASEKAR S 

-SHREE INVESTMENTS

WHERE TO INVEST IN DOWN MARKET PERIOD

 Multi Asset Allocation Funds are mandated by SEBI to invest in at least 3 or more asset classes.

 Minimum allocation to each asset class will be 10%.

 Nippon India Multi Asset Allocation Fund is a "true to label multi asset fund" as it invests in 4 asset classes:- 

 • Equity Allocation - Multi Cap investment strategy, blend of growth and value stocks, large cap bias, focus on alphas creation through stock selection.

 •  Debt Allocation - Debt portfolio is managed with a moderate duration; duration range of 1.25 – 2.25 years, predominantly invest in high credit quality assets, focused on Accrual Income. 

 • Commodities allocation – The fund invests in Exchange Traded Commodity Derivatives (ETCDs). Maximum commodity exposure will be 20%. Minimum 10% investment in gold through ETFs / ETCDs. 5 – 10% exposure to other commodities. 

 • Overseas equity allocation - Investment across geographies through investment in MSCI World Index. Overseas equities could act as an effective diversification tool as well as benefit from any currency depreciation. The fund has stopped investments in overseas securities with effect from 1st April 2024 as per SEBI’s mandate. 

 The fund was launched in August 2020 and is among the Top 3 Multi Asset Allocation Funds.

Nippon India Multi Asset Fund is one the very few multi asset allocations funds which has allocations to international equities. 

The chart below shows the 1 year rolling returns of Nippon India Multi Asset Allocation Fund versus the Multi Asset Allocation Funds category average since the inception of the fund. 

You can see that the fund was able to consistently outperform the category average over the last 2 – 2.5 years. 

Though this fund was slightly more volatile than the Balanced Advantage Fund, it was able to give 12%+ CAGR returns in more than 65% of the instances (observations) across different market conditions since its inception.

Source: Advisorkhoj Research From

TAXATION

DIGITAL FRAUDS IN A NUTSHELL

*All scams summarised and shown below. Stay alert.*

*10 Common Tricks Used by Scammers: Beware and Stay Safe*

Scammers target people of all ages, but middle-aged and elderly individuals are particularly vulnerable. Be cautious and aware of these common tricks:

1. *TRAI Phone Scam*: Fraudsters claim to be from TRAI, stating your mobile number is linked to illegal activities, and services will be suspended.

    - Reality: TRAI doesn't suspend services; telecom companies do.

2. *Parcel Stuck at Customs*: Scammers claim a parcel with contraband has been intercepted and demand payment.

    - Action: Disconnect and report the number.

3. *Digital Arrest*: Fake police officers threaten digital arrest or online interrogation.

    - Reality: Police don't conduct digital arrests or online interrogations.

4. *Family Member Arrested*: Scammers claim a relative will be arrested and demand payment.

    - Action: Verify with family members before taking action.

5. *Get Rich Quick Trading*: Social media ads promise high returns on stock investments.

    - Reality: High-return schemes are likely scams.

6. *Easy Tasks for Big Rewards*: Scammers offer high sums for simple tasks, then ask for investment.

    - Reality: Easy money schemes are scams.

7. *Credit Card Issued in Your Name*: Fake executives confirm large transactions on bogus credit cards.

    - Action: Check with your bank.

8. *Mistaken Money Transfer*: Scammers claim incorrect transactions and ask for refunds.

    - Action: Verify transactions with your bank.

9. *KYC Expired*: Scammers ask for KYC updates via links.

    - Reality: Banks require in-person KYC updates.

10. *Generous Tax Refund*: Fraudsters pose as tax officials, asking for bank details.

    - Reality: Tax departments already have bank details and communicate directly.

*Stay Safe:*

1. Verify information before acting.

2. Don't click suspicious links.

3. Confirm transactions with banks.

4. Report suspicious calls/numbers.

5. Be cautious of high-return schemes.

6. Update KYC in-person.

7. Don't share personal/bank details.

*Report Scams:*

1. National Consumer Helpline (1800-11-4000)

2. Cyber Crime Reporting Portal (cybercrime.gov.in)

3. Local Police Station

Stay informed, stay vigilant!

Issued in public interest!!

STAR HEALTH DATA LEAK - CAUTION AND PROTECT YOURSELF

*Star Health Insurance Data Leak:* 

*A Major Breach*

Star Health Insurance, one of India's largest health insurers, recently suffered a significant data breach, compromising the sensitive personal and insurance details of over 31 million customers. 

The incident highlights the growing threat of cyberattacks on healthcare providers and the potential risks to individuals when their personal health information is exposed.

*Modus Operandi*

The exact methods used by the hackers to access the data are still under investigation.

However, the leaked data reportedly includes:

 *Customer names*

 *PAN numbers*

 *Mobile numbers*

 *Email addresses*

 *Policy details*

 *Birthdates*

 *Confidential medical records*

The leaked data has been shared on various platforms, including Telegram, where it is being sold by the hackers. 

This poses a significant risk to individuals, as their *personal and medical information could be used for identity theft*, *financial fraud, or other malicious purposes*.

*Risks Involved*

The data breach has exposed Star Health customers to a range of risks, including:

 *Identity theft: Hackers could use the stolen information to create fake identities and commit fraud.*

 *Financial fraud:* Hackers could use the stolen information to access bank accounts or credit cards.

 *Medical identity theft*: Hackers could use the stolen medical information to obtain medical services or drugs under false pretenses.

 *Discrimination*: The leaked medical information could be used to discriminate against individuals, for example, by insurance companies or employers.

*Other Details*

 * Star Health has acknowledged the data breach and has launched an investigation into the incident.

 * The company has also filed a lawsuit against Telegram and the hacker responsible for the leak.

 *The Indian government has taken note of the incident and is investigating the matter*

This incident serves as a stark reminder of the importance of protecting personal data.

Individuals should be vigilant about protecting their information and take steps to minimize their risk of identity theft and fraud.

      - *Shree Investments* 

For knowledge and safeguarding our Investment purpose.