axis - dec11

Student Loans for

HIGHEREDUCATION

PagesiNSiDE

Moneytalk Setting Up Your

Retirement Plan All Things Spicy &

Meaty Gone in 30 Minutes All in a Day’s Work

HergéJANUARY - MARCH 2012VOLUME 40

Chief EditorsYasir ImranA.K. Gupta

Executive Editor and PublisherManeck Davar

Editorial Aaron RodriguesPriyanka Agarwal

Art DirectorManoj P V

Designers Namrata D. Shelar

Sunil Kadam

Digital ImagingParas DamaniNinad Jadhav

Dear Priority Customer,

Happy New Year to our Priority Pages readers! As we let 2011 pass, we welcome 2012, and hope it is one filled with joy, prosperity and tranquility. We know you have a plethora of expectations in the New Year – whether it’s from family and loved ones, career prospects, or financial health. And with this in mind, we set to ensure that in this issue you are provided with ample ways to enhance and enrich your life.

Our cover story this time has tried to demystify the intricacies of student loans through an innovative dialogue. Titled ‘Student Loans for Higher Education: A Conversation’, the story helps eradicate any doubt regarding student loans in the present financial market. If at one end we have spoken about garnering money for student loans, then on the other, we have set up steps for creating your retirement corpus.

Also in ‘Do More’, we tell you about Goa’s multi-faceted cuisine; so, when you go visit the tourist hotspot, you try out its delicious and scrumptious dishes.

Getting on to ‘Be More’, we give you ideas for energy conservation which can begin in the very confines of your office. With simple but powerful ways, you can add some changes in your office life to help the environment in a big way. We also talk about some ways in which you can kick-start your mornings on a right note, because we realise that the way you begin your morning has a bearing on your entire day.

In ‘Achieve More’, we delve into the life of a phenomenal artist, Hergé, whose legacy lives in the form of the lovable, intrepid boy reporter — Tintin.

So, please let us know what you feel about the magazine. Till the next time, we wish you a great time and hope you enjoy this issue.

Priority Pages Editorial Team

Please mail your suggestions to [email protected]

Disclaimer: The views and opinions expressed or implied in the magazine are those of the authors and do not necessarily reflect those of the directors, employees or any other individual directly connected with the company and its group of companies. The transparencies that are sent in are at the owner’s risk and the publisher accepts no liability for loss or damage. Material in this publication may not be reproduced, whether in part or whole, without the written consent of both, Axis Bank and Spenta Multimedia.

The in-house ‘Priority Pages’ is a quarterly magazine of ‘Axis Bank’ Corporate office: Axis House, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400 025 and published and printed by Spenta Multimedia at Peninsula Spenta, Mathuradas Mill Compound, N. M. Joshi Marg, Lower Parel, Mumbai 400 013. Tel: +91-22-24811010; Website: www.spentamultimedia.com.

CONTENTSVOLUME 40 | JAN - MAR 2012

DO MOREmoneyTALK 6Time to Bond with Fixed Income Investment

coverSTORY 9Student Loans for Higher EducationA Conversation

personalFINANCE 12Setting Up your Retirement Plan

food 15All Things Spicy & Meaty

BE MOREwellness 17Gone in 30 Minutes

environment 19All in a Day’s Work

ACHIEVE MOREprofile 21Hergé

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domore MONEY TALK

A bond is a fixed income instrument that gives you income by way of interest for a

specific period of time. Simply stated, it is a loan that you give someone who needs money, for which the borrower pays you interest and then repays the loan at a pre-decided date. Today, investing in fixed income is typically equated with investing in Bank Fixed Deposits or Company Deposits. In this case, the Bank/Company is borrowing money from you, for which it pays you interest and then returns the principal amount on maturity.

Such lending and borrowing between two or more entities can be structured in various ways, depending on specific requirements. A fixed deposit (as explained above) is one of the most common examples. Other forms are bonds, debentures, certificate of deposit, inter-corporate deposits,

Government Securities and many more. In common parlance, these are referred to as Debt Securities or fixed income Securities/Investments.

Investing in fixed income securities is typically associated with investing in debt instruments that generally offer a regular coupon and repayment of principal on maturity. A debt security represents a contract between the borrower (issuer of the securities) and the lender (investor in the securities), which allows the borrower to borrow a sum of money, for a predetermined tenor at a predetermined interest rate. Debt securities in the form of debentures or bonds are different from deposits and loans as they can be listed and traded on the exchange.

When investing in debt securities, there are some terms which you need to understand and keep in mind, namely,

Principal:• It refers to the amount invested (by the lender) or borrowed (by the lender/issuer). In some cases, the amount may be broken down into smaller units, each unit representing a portion of the principal amount.

Face Value or Par Value:• The face value or par value of a debt instrument refers to the amount at which the unit was initially issued. In most cases, it may be R100, R1,000 or in multiples. However, this may not be true for all cases, and you may have instruments issued at different amounts as well.

Interest Rate or Coupon:• The coupon is the rate of interest payable by the borrower. The amount may be paid at regular intervals, e.g. annual, semi-annual, quarterly or monthly, or

TIME TO BOND WITHFIXED INCOME INVESTMENTBy Axis Bank Investment Advisory Group

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may be cumulated and paid on maturity.

Maturity Date:• It refers to the date on which the borrower has agreed to repay the principal amount.

Redemption Value:• It refers to the amount payable on maturity date. In most cases, the redemption amount will be the same as the face value. However, in some cases, the redemption value may be higher (premium to the face value) or lower (discount to the face value).

Tenor:• It refers to the period from the date of issue till the maturity date.

Term (or Time) to Maturity: • It refers to the remaining time period till the maturity date. The tenor of the bond reduces after it is issued as it starts approaching the maturity date.

Another very important aspect that needs to be considered is whether the debt is secured or unsecured. Secured debt is when there is an underlying asset owned by the borrower, which acts, in a way, as a guarantee for the borrowing. If the borrower fails to pay the principal and/or the interest amount, you then have the right to or a claim on this asset of the borrower. In the worst case scenario, the asset can be sold and the sale proceeds used to repay the amount due to you. Any lending done without such underlying asset(s) is called unsecured lending.

From an investor’s perspective, there are various avenues or types of fixed income (debt) investment options available. These can be categorised as follows:

Issuer (or Borrower)•

Tenor•

Security•

Convertibility•

Tax-free vs. Taxable•

Issue at par vs. Deep Discount•

CATEGORISATION BASED ON TENOR Debt securities can be categorised into short-term and long-term based on tenor of investment. Typically, short-term refers to investment horizon upon 365 days, while long-term refers to investments with a maturity period of more than one year.

The following are examples of Short Tenor instruments that are available for investment in the current market:

Treasury Bills issued for 91 days • and 364 days

Certificate of Deposits (CD) issued • for a 90-day tenor upto one year

Commercial Paper (CP) issued for • a 90-day tenor upto one year

Treasury bills are issued by the RBI on behalf of the government to meet short-term liquidity requirements. Certificate of Deposits are predominantly issued by banks to meet the short-term requirement of funds. Commercial Papers are issued by companies to meet short-term funding needs of companies. Typically, the ticket size of investment in each of these instruments varies from R 25,000 (T Bill) to R 5 lakh (CPs). One important feature of short-term instruments is that they are issued at a discount to the face value.

CATEGORISATION BASED ON ISSUER (LONG TENOR INSTRUMENTS)Long-term debt securities can be broadly categorised into government securities and corporate bonds.

G SECSGovernment securities, popularly called gilts, are issued by the RBI on behalf of the central government. Securities issued by the state government are called state government securities. G Secs are a form of market borrowing undertaken by the government to bridge the fiscal deficit. Dated G Secs have maturity varying from 1 year to 30

years and the typical market lot size of R 5 crore. G Secs are interest-paying coupon bonds with a fixed rate of interest paid semi-annually. Sometimes, G Secs are issued on a floating rate basis, where the coupon rate is reset periodically and reset is typically linked to a Treasury Bill rate or a suitable benchmark. Between two reset dates, floating rate bond is effectively a fixed interest rate bond and its price is sensitive to changes in money market rates.

CORPORATE BONDSCorporate bonds can be issued by Public Sector Units (PSU) and the Private Sector. Other issuers of long-term bonds are municipal corporations and local bodies. Normally, in case of PSU, the government offers guarantee for the payment of interest and repayment of principal amount. These bonds, as they carry sovereign guarantee, are considered less risky as compared to private sector bonds or debentures issued by companies, but riskier compared to government securities. When companies borrow directly from the market through issue of securities, they are subject to capital market regulations.

Companies can issue two types of debentures:

Non-Convertible Debentures • which are pure fixed income instruments, and

Partly or Fully Convertible • Debentures. In this case, the convertible portion bears interest till the date of conversion, while the non-convertible debenture earns interest till redemption.

The non-convertible debentures and the non-convertible portion of partly convertible debentures can be redeemed on maturity at par or with a premium.

Corporate bond issues are usually listed on the Wholesale Debt Market (WDM) segment of the NSE or the


debt segment of the BSE. Debt instruments once issued in the primary market get traded among investors in the secondary market.

The corporate debt securities market is essentially a market dominated by large institutional investors on private placement basis. Public issue of corporate debt securities is regulated by SEBI guidelines, which require that all publicly issued bonds should be secured, have a credit rating and have a compulsory listing option. Further, the appointment of a debenture trustee, creation of a debenture redemption reserve and creation of charge on the assets of the company are mandatory.

ROLE OF CREDIT RATING FOR RISK ASSESSMENT Debt securities represent the borrowing of the issuer and, hence, it is important to understand the credit risk of the borrower before making an investment decision. Credit risk refers to the possibility of the borrower not honouring its commitment to pay periodic interest and repay the principal. The ability of the borrower to meet its debt obligation depends upon internal and external factors. The decision to lend or not to the borrower and at what rates is known as risk assessment. The credit risk of the borrower for companies raising debt capital (on public issue or private placement) is evaluated by the rating agencies.

Credit rating is essentially an opinion on the credit quality of the bond expressed through a symbol indicating the ability and willingness of the company to service the instrument that has been issued. The credit rating assigned to an instrument is not static and it is monitored by rating agencies by taking into account the factors which impact the company’s working/business. Rating agencies typically track the underlying instrument issued by the company until its maturity for any changes in the underlying risk. A rating can be placed on watch or it can be

upgraded or downgraded, depending on developments affecting the working of the company. Rating agencies typically review and revalidate the rating assigned to a debt issue annually. AAA is considered the highest safety grade, while AA+, AA and AA- rated securities are considered to offer high safety.

UNDERSTANDING BOND MATHEMATICSThe value of a bond depends on two factors:

Time to maturity (which changes • every day)

Discounting rate which depends on • the tenor and the credit quality of the issuer

The value of the bond and its discounting rates are inversely related. Expectation of interest rate movement impacts the price of bonds. If interest rates are expected to move up, the price of bonds goes down. If interest rates are expected to move down, the price of the bond goes up. Yield to Maturity indicates the return on the bond at a given price. It means the return an investor will earn on buying the bond in the market at a price that is different from the face value.

Most investors, while investing in fixed income securities, only consider the tenor and the interest rate. While these aspects are important, there are various other aspects, which are equally or probably even more important, that must be considered before any decision to invest.

Issuer• – Company details (background, industry, management, track record, credit rating)

Returns – • Simple or compounded return, frequency of payment and compounding

Price and Interest Rate • Scenario – Historical price movement, in case there has been an issuance of similar security earlier, and interest rate

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environment to determine the market price of the security

Tenor –• Period of investment, is there a lock in period?

Liquidity –• How quickly can one exit (if required), cost of exit, can it be used as a collateral for loan?

Secured or Unsecured – • Underlying asset against which secured and the coverage percentage

Fees and Charges –• Cost of investing (upfront brokerage in case of secondary market trades) and annual charges (demat charges for holding bonds in dematerialised form).

Convertibility –• What are the terms of conversion, price and applicable conditions?

Tax Implications –• Interest vs. Dividend vs. Capital Gains (short term or long term), tax deductions at the time of investment, tax on maturity, etc.

Companies in the recent past have found it very convenient to tap the capital market through the Non-Convertible Debentures (NCD) route to fund their medium-term borrowing requirements. Investors also prefer NCDs because they are secured and the coupon/interest rate offered on these bonds is also very high. Since these debentures are listed on recognised stock exchanges and held by investors in dematerialised form, there is no Tax Deduction at Source (TDS) on the interest payment.

In recent times, there is another category of bonds that is gaining prominence. These are the bonds whose interest incomes are completely tax-free for the entire tenor of the bond. These bonds in the current financial year have been issued by public sector units like Power Finance Corporation (PFC), Indian Railway Finance Corporation (IRFC), National Highway Authority of India (NHAI), and Housing & Urban Development Corporation Limited (HUDCO).


domore COVERSTORY

Student Loans for

HIGHER EDUCATIONA Conversation

Getting your child educated in the right school can be painstaking, especially when you look at it from a monetary point of view. So, plan early and prepare yourself when it comes to getting your precious one educated.

By Poornima Subramanian

more affordable. Raghav was shocked to hear this. Having always believed that Sujay was financially prudent and savvier than him, his friend’s current dilemma left him concerned.

Raghav: Sujay, I am sure that you must be aware of educational loans?

Sujay: Yes. I have heard of them from some of my friends. However, I am not sure if I can avail or service another loan with my present income. I am already servicing housing and car loans.

Raghav: No, Sujay, you have not understood them properly. Educational loans are term loans given to students to help them pursue their higher studies. These loans can be applied for once your son or daughter secures an admission in a college. The formalities are simple and repayment begins only after your child completes his or her education and secures a job.

Educational loans are term loans given to students

to help them pursue their higher studies.

Raghav Raghuram looked at the clock for the third time. It was 6:30, and his friend Sujay was

over half an hour late for their morning walk. This was a rare occurrence. Over the last ten years, both friends — colleagues at work too — religiously met at 6:00 at the nearby Joggers Club for an early morning stroll. Raghav was slightly disturbed by his friend’s lack of punctuality. He also remembered that over the last couple of days, Sujay had not been his usual self. In fact, in the past few days, he had been preoccupied and quiet. Worried, Raghav decided to investigate and promptly landed at Sujay’s house after his walk.

On enquiring, Sujay told him that his 20-year-old son Anirudh, a final year engineering student, wanted to go abroad for higher studies. Sujay had made initial inquiries with friends who

had sent their children abroad, and also visited websites of schools that offered post-graduate courses abroad. He was stunned by the massive cost involved – admission forms, online tests, coaching classes for GMAT, GRE, TOEFL, visa, cost of air travel, tuition fees, boarding fees. The list just seemed endless. Sujay confided to Raghav that he did not have the wherewithal to fund his son’s education. He also had a daughter, Anuradha, who would be seeking college admission in the upcoming academic year. He would have to counsel his son to look for options within India which were

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Sujay: That is fine but who will repay till he/she gets a job?

Raghav: These loans offer maximum advantage to the students. Repayment mostly begins a year after completing the course or six months after he or she gets a job.

Sujay: What is the maximum term of this loan? And what about interest rates? Even home loans have become costlier.

Raghav: The maximum term ranges anywhere from five to seven years depending on the bank’s loan issuing policy. And interest rates are not that high either. For loans upto r2,00,000, the interest rate usually does not exceed the Base Rate*. For higher value loans, most banks charge anything around 12% to 16%*, depending on the total sum you borrow.

Repayment mostly begins a year after completing the

course or six months after he or she gets a job.

domore COVERSTORY

Did you know?

There are no processing or • upfront charges on educational loans.

No collateral security is required • for loans upto r4,00,000. Only co-obligation of parents is required.

For loans above • r4,00,000 and upto r7,50,000, collateral is in the form of third party guarantee.

For loans above • r7,50,000, co-obligation of parents/guardians, together with tangible collateral security of suitable value, is required.

The maximum loan given for • studies in India is r10,00,000 and for studies abroad it is r20,00,000.

Set Target Dates

Know the Current Cost of Education

Realise Target Amount

Evaluate the Returns you could Generate

Calculate Monthly Contribution

Steps To Plan for Your Child’s Education

required for higher education is to be calculated. Let us assume that

• Anirudh is at present 10 years old and will start his post-graduation at 21 – 11 years from now.

Education Loan

Application

Further, Anirudh will also get a tax deduction for the interest paid under section 80E when he starts repaying the loan. This deduction is valid for graduate courses in engineering, medicine and all post-graduate courses.

Sujay, when and if you do avail of an educational loan, sit your son down and ensure that he realises that the loan is his responsibility and his alone. Repayment of this loan has to be his top priority once he starts earning. Counsel him again when he gets a job. Help him calculate his EMI and keep track.

But, let me ask you something. I have always thought that you are savvier than me when it comes to finance. Then how is it that you did not have some plan for your children’s education?

Sujay: I did plan. I took two insurance policies that would mature when my son and daughter reached the age of 18. I thought that this amount would be sufficient to fund their higher studies.

Raghav: Insurance — though not the best — is a good instrument to plan for your child’s education. However, most parents fail to factor in the inflationary cost. Thus, they end up receiving paltry sums. Let me show you how the money

* Can vary depending on the individual bank policy

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• Average rate of inflation is 8%.

• Current cost of an MBA programme abroad is r40,00,000.

You would then roughly require to save approximately around r,95,00,000** for an MBA education abroad.

Sujay: Oh my God!

Raghav: Don’t let these numbers scare you. As the proverb goes, little drops of water make an ocean. If you start investing wisely from today, you can definitely save a substantial part of the sum. The rest can always be made up through scholarships, student loans,

Documents to be submitted

Proof of admission— i20 in case • of schools abroad and admission card in case of colleges within India.

Marksheets of the last qualifying • exam (X and XII for under-graduate studies, and degree/provisional marksheet for post-graduate studies).

Fee structure letter from the • college/university – tuition, travel, hostel, equipment, books, etc.

Two passport-size photographs.•

Brief statement of assets and • liabilities of the co-borrower.

Proof of income (i.e. salary slips/ • Form 16, etc).

You should also create an emergency fund for your child’s

education. This would help during a crisis.

etc. Mutual funds are another option for you to save for your child’s education. There are several dedicated mutual fund schemes that allow you to invest a fixed amount (SIPs) every month. Another method and probably one which suffers from a lot of volatility is through equity investments in the stock market. In fact, in the past, the equity markets in India offered 12% to 15% annual returns. Agreed that currently it’s going through a bad phase, but in time, it will stabilise. Also, as a principle, always diversify your investments. There are tonnes of options you can use — fixed deposits, pension schemes, mutual funds, insurance, etc.

Sujay: You are right. The other day, I was talking to my friend whose daughter is currently pursuing her MS in the US. He said that he had planned for his daughter’s education well in advance. He gave me some pointers:

Start early— When your child is one. This will give you 18 years to plan and accumulate funds.

Ensure higher returns — Strive to ensure that your investments yield higher returns than the current rate of inflation.

Always review — Do not invest and forget. Review your portfolio periodically and rejig your investments. Make your money work.

Early withdrawal — Ensure that you withdraw the investments (especially those that are exposed to market vagaries) two years before you need to make the actual payment. Short-term FDs are a safe place to park your money for a short period of time.

For students

Your total borrowing shouldn’t • exceed what you expect to make in your first year out of school.

Before borrowing, estimate a • year’s expenses for college.

Pay your loans on time, thus • protecting your credit record.

Staggered withdrawal — Do not withdraw from all the financial instruments at the same time; adopt a staggered approach instead. For example, after withdrawing the first-year fees, invest the remaining in some secure short-term scheme. This will add to your nest eggs.

Raghav: You should also create an emergency fund for your child’s education. This would help during a crisis. Even now it is not too late. Start saving for Anuradha’s post-graduation course expenses from today. You will definitely find it easier to help her four years from now, when she is planning to study abroad.

Sujay: Thanks, Raghav. I was really upset that I had to ask my son to compromise due to lack of funds. I will see you tomorrow morning as usual.

** Calculated as x(1+r/100)^n

Disclaimer: Education plans will change depending on the market conditions, bank policies, RBI interest hikes, etc. This article has been written keeping in mind the current market scenario.

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domore PERSONAL FINANCE

When we think of life after retirement, we dream of one that is carefree, but clearly you need to plan for it to realise your dream. By Aaron Rodrigues

When you think about the long haul, the peaceful end to a stressful work life, how do

you see it all coming to an end? Do you see yourself on a beach with your beloved drinking pina coladas? It’s nice to have a dream, but there also comes a time when you need to start getting real. Sorry for being the pessimist here, but let’s check the facts around us.

SETTING UP YOUR

RETIREMENTPLAN

Life expectancy in India has increased every passing decade. Back in 1970, the average life expectancy of a person was 49 years. However, in 2011, it has jumped to 66 years and is set to reach 73 to 76 years by 2040-50, according to the United Nations, Department of Economic and Social Affairs.

Another major factor lies in the

improvement of healthcare facilities in the country. However, medical costs are also rising every year. A simple bypass procedure in a Tier I or II hospital will not cost less than R1.75 lakh; moreover, any hospital admission would cost at least R1 lakh. For anyone who is retired, additional expenditure is a burden, especially one such as medical costs.


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Isn’t this enough to get you thinking? If it has, that’s a good sign. Start saving. We get it that it is human nature to put things off and leave things aside, especially for those that require sacrifices in return for future rewards. Out here are five simple rules to create that ideal plan.

KNOWING YOUR EXPENSES AND HOW MUCH TO INVESTThis one is quite simple; in fact, let’s do this while you read. Take a piece of paper and make a note of your expenses. From daily expenses such as travelling and food, to discretionary expenditure such as fancy clothes and parties. Also, from your monthly

expenses like bills (phone, electricity, gas, etc), household expenses, children’s education fees, to surprise costs like paying for charity. Make a note and understand your expenditure. Set up a budget, cancel the unnecessary (these will mostly be discretionary expenditure) and you will realise how much you have gifted to your retirement corpus.

The next logical question that arises while figuring out your retirement plan is your priority criterion – returns anticipated or monthly contribution? Though this is up to you, the smarter move for beginners would be to understand how much you can invest per month.

WHAT’S THE MOOLAH YOU REQUIREThere is an old piece of wisdom that when it comes to retirement planning, ‘save 10% for basics, 15% for comfort, 20% to escape’. In fact, this is a personal finance rule of thumb and is quite easy to understand, and is perfect if you have started investing your money for retirement from your early 30s. If you save 10% of your income, then rest assured you would survive and not live on crumbs, while 15% sees to it that you get a comfy lifestyle. But if you were to put 20% of your income and save for retirement, then you are most likely to get a chance to have some of those pina coladas with your beloved! So, now you need to decide how you would actually like to spend your post-work life on planet earth. Remember, the best retirement plans are meant to keep your standard of living in pace with your lifestyle. So, take into account your current yearly expenses, the inflation expected over the

You could invest up to 70% to 80% in equity-related

markets, because the younger you are, the more chances or risks you are able to take.

Jobs for senior citizensBeing a part of the senior citizen bracket can leave you wanting to do more. Many, in fact, want to contribute after retirement as they believe they still can. And, who is to say they can’t? They have tonnes of experience, managerial skills and an acute understanding of people’s problems. Here are some occupations in which senior citizens can fit in easily.

Working at an NGO: Many NGOs are being run by youngsters. Providing your expertise on man management skills can be valuable and would also have you participating in a social cause you believe in.

It’s time to teach: There is an old saying – Those who can’t do, teach. Well, you can no more do the things you were once specialised in, but you can certainly teach. Plus, this profession gives you an innate satisfaction that you are helping the bright young minds of tomorrow.

Baby sitting: This could be a big profession in the long term and most parents would love to have their kids taken care of by the elderly. This is a profession best preferred for the elderly.

years and the number of years left for retirement. Once you figure that out, then you know the moolah you require.

CREATING YOUR CORPUS Diversify, expand and enlarge your corpus as much as you can. No product by itself can help you ascertain your desired target; rather, it needs to be a cocktail of various financial instruments. So, don’t put all of your eggs into one basket. It will need to be a mixture of equity- (high risk, high returns) and debt-related (low risk, low returns) products. How you want to live life in your golden years depends completely on you.

As we mentioned in our previous cover story years ago, the most people

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is for retirement; until then, keep your mitts off it.” There is never a sensible reason to touch your retirement plans. If you are having trouble in repaying debt, look some place else. Keep your retirement moolah as it is. In fact, make it a commandment, “I shall not touch my retirement corpus.” Remember, each time you touch your corpus, you lose out on the advantages of compounding.

Keep these simple steps in mind and follow them, and you wouldn’t need to fret about the cost of that evening on the beach.

could do was to stuff their money in ‘safe investments’ like fixed deposits or provident funds. Now, things have dramatically changed. With products evolving and generating better results, it’s time to take a few chances.

So, if you start investing young, say in your early 20s, in products like mutual funds, unit-linked insurance plans (ULIPs), stocks and derivatives, you have the ability to create additional wealth. In fact, you should make it a point to overweigh your investments in equity. You could invest up to 70% to 80% in equity-related markets, because the younger you are, the more chances or risks you are able to take. In time, when you cross the 45 or 50 age mark (whichever you are comfortable with), you can reshuffle your investments from equity (20% to 30%) to debt instruments (70% to 80%).

INCREASE INVESTMENT AS YOUR INCOME GROWSAs your working cycle continues, your salary will increase. So, do you increase the invested amount when you get a higher pay package? Not many do, but one must. Say your salary is R20,000 a month and you set aside 10% of your salary in your retirement plan. In the next few months, your salary jumps to R35,000 a month. Would you still invest R2,000 a month for your retirement plan? No. You should now let the invested amount be R3,500.

Granted that inflation has jumped and with it so has your cost of living, but that doesn’t take away from the fact that if you need more, you should save more. As stated earlier, you save for investment to maintain your standard of living; so, increase your invested amount when your salary rises. It is pertinent to maintain your retirement savings at 10%/15%/20%, so that your golden years don’t lose their shine.

THOU SHALT NOT TOUCH THE CORPUSThere is another personal finance adage that says, “Retirement money

As stated earlier, you save for investment to

maintain your standard of living, so increase your invested amount when your salary rises.

Four retirement planning errors to avoid

Underestimating how long • you will live: A common error we make is not investing the right amounts. Many don’t believe that they will go beyond 70, but the fact is most pass the age bracket because of better healthcare.

Undervaluing healthcare • costs: Health insurance is a must at any age, and having it after you retire is significant, as now you don’t have your normal source of income.

Overestimating your returns: • Just like it is dangerous to underestimate your life expectancy, overestimating your returns from investments can be a trap.

Failing to make a retirement • budget: Make a budget. Set aside at least 5% a year from your savings and, as time goes by, increase the amount.

There is an old piece of wisdom that when it comes to

retirement planning, ‘save 10% for basics, 15% for comfort, 20% to escape’.

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domore FOOD

The people of Goa are fun-loving and forever jolly. However, if you were to have their cuisine, you would find that hard to believe.By Arthur Candillac with Priyanka Agarwal

Photographs by Sanjay Ramachandran

if you were to sit with any Goan aunty, she might most probably tell you, “Aanni Elae (A little more).” Most frequently used ingredients are cumin seeds, coriander, chillies, garlic, ginger, pepper, cloves and turmeric, and at times to flavour fish, kokum is used. But even with all of these, there remain three ingredients that a Goan dish simply must have – dry red chillies, coconut and, of course, jaggery (lots and lots of it).

MEAT LOVERS’ PARADISEA good part of Goan food is meant for meat lovers. Goan Catholics savour meat and consider it as a key ingredient in their meals. It’s not to say that there aren’t any dishes for vegetarians, but they are just

affair. It’s never an easy task, consuming time and energy. But, there is a word always associated with Goans, susegad, which basically means chilled out and, sometimes, that is what Goan cooking is all about.

Even as many Goan dishes have found their genesis from the Portuguese, they are far from what was originally conceived. With time, Indians adapted tastes and locally available ingredients to lend their flavours, and these dishes have been altered to produce something that is more distinctive. For instance, the Portuguese preferred mixing wine with their dishes; however, the Goans decided to replace wine with vinegar and use liberal amounts of spices. Even now,

Christmas is a wonderful time to be in a Christian home. The stereo is on all day, shifting from Jim

Reeves and Christmas carols to some good old country music. The Christmas tree is lit up and filled with streamers, Christmas decorations and fake snow disguised as cotton and, beneath the tree, the little ones unwrap their presents. The various sweets are all placed on the dining table. All the while, your favourite uncle sits on his favourite chair, sipping his cashew fenny. But beneath this festive atmosphere are the women of the kitchen preparing food for this jolly

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overshadowed by the variety of non-vegetarian dishes available. Go to any Goan Catholic’s house and he is most likely to tell you about the amazing sorpotel he had the other day. Sorpotel is finely chopped pieces of pork, pork fat and bits of liver, mixed with a paste of red chillies, onions, ginger, garlic, cinnamon, cumin seeds, pepper and turmeric, finely ground in vinegar.

Chouricos, better known as Goan sausages, are salted and spiced cubes of pork, mixed with stone-ground piri piri masala. Once they are stuffed into the sausage casing and prepared, the strings of sausages are dried in the sun and are hung above the kitchen fire where they are gradually smoked. The next dish you may have tried is croquettes. It is ground meat mixed with mashed potatoes and spices, and later encased in breadcrumbs.

Another dish is chicken xacuti. Basically, it’s cooked with grated coconut and a variety of spices including white poppy seeds and dry red chillies. But probably one of Goa’s most recognised dishes is chicken cafreal. It is marinated in chillies, garlic and ginger and then dry-fried.

SOMETHING FISHYA staple meal in Goan homes is fish curry and rice with its variant blend of spices. In Goa, or if in someone’s home, try out ambotik; however, be warned – you need an acquired taste for this dish. A hot and sour curry mixed with usual Goan spices, kokum and shark pieces, it is well loved by Goans. If you aren’t into something bitter, then try something simpler like kaldeen. Hardly taking 30 minutes to make, any fish (pomfret,

ravas, surmai) can be used to create this yellow, tangy curry, which utilises coconut, dry coriander, garlic, ginger, jeera and turmeric for flavour. Do not forget recheado, which is seafood stuffed or fried to produce something that is dry, hot and flavourful. The best way to enjoy recheado is to have it stuffed in fried fish or with crab. Also, do have some tangy and yummy prawn balchao.

SOMETHING FOR THE VEGGIESAgreed that Goan food is overshadowed by the meats, but even vegetarian food has a peculiar place. First, there’s Khatkhate curry, a vegetable coconut curry with lentils (usually tur dal). Then, there’s Tondak, which is dubbed as Goa’s chana masala, with the differing factor being the use of coconut. Besides, there is solantule kodi, a spicy coconut and kokum curry, and loads of others.

PAV WALAS If you are in Goa, you are bound to be woken up by the pav wala on his bicycle, hooting the arrival of fresh bread. There are several types of local bread. Uned are

It’s not to say that there aren’t any dishes for

vegetarians, but they are just overshadowed by the variety of non-vegetarian dishes available.

...sorpotel may take two hours to cook, but for the flavours

to mix with the pork, it’s best left untouched and well covered for two or three days.

small round crusty rolls, generally served from the bakery. The most famous recipe from the bakery is sanna. They are steamed rolls made from rice flour, ground coconut and coconut toddy, and perfect to go with any spicy Goan meals. Poee is another type of bread which is soft and spongy. This bread is made of wheat husk and is modelled like a butterfly and airy inside. The best way to enjoy Goan cuisine is to have it with pav or its variants.

SWEETSEveryone probably knows about the dark bebinca and the exceptionally coconut-y dodol. Cooking bebinca is not easy and each layer can only be added after the other one is cooked.

Probably a dish you may get only at a Goan Catholic household and especially on 15 August (the Feast of the Assumption) is pattoe. It is made of grated coconut, rice and jaggery, which are cooked by being wrapped and steamed in turmeric leaves.

WHY SUSEGADAsk any Goan household cook and he is most likely to tell you that sorpotel may take two hours to cook, but for the flavours to mix with the pork, it’s best left untouched and well covered for two or three days. This is done so that the pork marinates well with the masala and gives you the desired symbiosis. The same goes for beef roast.

So, as the women of the kitchen lay the food on the dinner table and everyone is ready to grab some sorpotel or pick a piece of chicken cafreal, the carols go on and you get a jolly feeling deep inside, knowing it is Christmas.


nice warm-up session. Slowly, increase the speed and you will be done with your cardio session. Breathing exercises and stretching with various yoga postures will help your muscles release stress and feel rejuvenated. Round off your yoga session with a few minutes of meditation. Let your inner self be at peace in the morning and the rest of the day will follow suit.

MIRRORTake a good look at yourself in the mirror. While you may not be a style freak, remember that grooming can add to your confidence and set you apart. You are your own self and the way you define your avatar sets you, and this incarnation is a part of you. Grooming is an important aspect of a professional’s working life. So, make it a habit to invest a good ten minutes (at least) in grooming yourself every morning. The way you stride into the office and the admiring glances that you get from your colleagues will be proof enough that you have set things right.

Breathing exercises and stretching with various yoga

postures will help your muscles release stress and feel rejuvenated.

Mornings are crucial. After all, the way you feel throughout the day is determined by the way

you start your mornings. With trains to catch and traffic snarls to combat, any urbanite’s day begins with a frantic rush. Hurried breakfasts and quickly completed ablutions certainly help you meet the office deadline, but do they help you remain healthy? We don’t think so.

All you need is 30 minutes in the morning to get back into shape and revitalise yourself, and we are about to provide you with the ingredients for the perfect day. Below is a list of 10-minute activities that you can try (combine them to suit your mood and fill up the 30-minute slot) and kick-start your day on a positive note.

EXERCISE Meet your personal trainer in the gym and ask him to chart out a ten-minute regime for you. If you are not a gym person, consider your body areas that require exercise and devise a routine for yourself. Begin with a warm-up exercise like jumping with your arms apart. Increase the speed eventually and

the warm-up will culminate into a cardio session. Marching on the spot is another good cardio exercise. Add stretching

exercises and pushups to complete the session. Every exercise should

be carried over a two-to-three- minute period with a two-second break between each set.

Another option for a great start is yoga; more importantly, its meant for

those who aren’t comfortable with exercising. Begin with

a surya namaskar at an even pace. It will be a

Late nights and early mornings aren’t the best of friends. And when you want a positive start to your day, getting it right is absolutely a must. By Kanishka Ramachandani

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HOBBYStart you day with something you love doing. Spend ten minutes with yourself indulging in your favourite hobby. If you like reading, pick up a good book with your morning cuppa. Reading could also mean glancing through the newspaper; after all, there’s no better way to meet the world than by being updated about it first. Gardening is another way you could add freshness to your mornings.

BREAKFAST Now, for the most important

part of your morning – breakfast. If you enjoy cooking, you can actually club the earlier pointer with this one. Cook, eat and be happy. Needless to say, eat a healthy wholesome breakfast.

MUSICFor most of us, music has a therapeutic effect on our senses. Your ten-minute morning activity can also revolve around music. If you play any particular instrument, take it up every morning in the form of a small practice session, liberating your mind and easing it of its daily woes. Playing music in the background as you go on with your everyday chores, too, is a good idea. Once your mind falls in the rhythm, you will actually look forward to the rest of the day.

CLEAN UP Before you crinkle your nose at this

one, here’s some clarification. Like music, cleaning up can also have

a therapeutic effect on your senses. We are not asking you to have a massive home clean-up every morning. Just a little tidying up of your room or the living room will help you enhance your sense of well-being.

Put things in their right place, reduce the clutter around the house and decorate it with interesting artefacts, plants or paintings.

This will also ensure that your home will welcome you warmly when you get back in the evening after a tiring day at work.

TAKE A WALK: If you haven’t already dashed outdoors for your morning jog, try taking a walk. So, take a brisk walk or simply a stroll in a garden for ten minutes. Mornings are the best time to observe nature. While walking is a good form of exercise, being one with nature is great activity for the mind. Sounds of chirping sparrows and the fragrance of freshly showered lawn are lost upon us as we hurry to catch a train or drive through mind-boggling traffic. Devote at least ten minutes of your time to discovering nature and rest your mind.

It’s wonderful how only 30 minutes can change your lifestyle! Once you adapt your schedule to include the above activities every morning, you will notice the change in your attitude, your mindset and the way you perceive the world.

You are your own self and the way you define your

avatar sets you, and this incarnation is a part of you.


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They say our first lessons begin at home. But, considering we spend a lot more time at work these days,

our homes are becoming more of a crash pad. It’s time we did things a tad bit differently. You don’t have to be an avid nature lover or the most dedicated employee to make a beneficial impact on the environment. Sometimes, all you need are minor changes and an ounce of extra effort to deliver a big change — and

eventually participate in saving our small but beautiful planet.

Here are some pointers.

CARPOOL Everyday, it’s the same battle — whether you’re on your way to work or headed back home, the one thing that remains constant is the traffic. As if the pressures of the job are not maddening enough,

Want to save the planet? What better place to start than at your own office! By Manali Das

ALL IN A DAY’S WORK

@

the last thing anyone wants to deal with is the mad rush. And while it’s easier to blame the other cars on the road, maybe it’s time we took matters into our own hands. If, for whatever reason, you can’t travel by public transport, don’t take your own car — carpool instead. It’s not only convenient and saves you from the tension of driving, but it also helps reduce the number of cars on the roads.

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Now that you have carpooled to work (bravo!), you can earn some brownie points by taking the stairs. You probably spend a good eight to nine hours at work (or maybe even more). It helps cut down on energy consumption by taking the stairs instead of the elevator.

THE BIG SWITCHHow many of us actually take the effort to switch off our computer when we leave from our office? Make it a habit to put your computers off when you’re done for the day and keep your PCs and printers in the energy-saving mode while you are off for a long lunch break or a meeting. Did you know that screensavers actually consume power? It is best to unplug the printers, scanners and other peripherals that are used occasionally, until they’re needed. Similarly, after your mobile phone is charged, it’s pertinent to remove the charger from the socket.

If you are the last one to leave the office, take a good look around. Take up the additional responsibility to switch off your colleague’s computer if it is still on, and ensure the ACs and lights are switched off as well. It will probably take up five extra minutes, but they are worth it when you realise that all these little efforts go a long way in ensuring a greener office environment.

COFFEE, ANYONE?What would working life be without our favourite coffee vending machine? It is a spot for endless office gossip and chitchats, but it is also a place where an endless number of disposable cups accumulate hour after hour. Here is where you can pitch in to save the environment.

Avoid using disposable cups and grab a mug instead (all you have to do is wash it). In fact, encourage your colleagues to do the same. Imagine the number of cups you will save which would have otherwise piled up in some dumping ground.

RECYCLE PAPERThis is probably the most important, particularly for offices that require a lot of printouts to be taken, such as publishing houses. Bully your colleague if you have to, but get them to recycle paper. First, realise that you don’t have to take printouts of every mail and document. Get into the habit of reading your documents on your computer rather than taking a print. And, if taking a printout is imperative, use both sides of a paper, and preferably give black-and-white prints rather than coloured ones. And, for those employees who are prone to forget — get a green email signature (just as a friendly reminder, of course).

Another point to remember is to ensure that the printer paper used is made from recycled paper, which has a minimum percentage of chlorine bleaching. Today, there are varieties of eco-friendly paper (made from bamboo, hemp as well as cotton) available in the market. If you absolutely must use paper, better to save a tree while you’re at it, right?

LET THERE BE LIGHTThis one is directed more towards the management rather than the employees. The arrangement and positioning of workstations should be such that it makes optimum utilisation of natural light. This will go a long way in conserving electricity, and is conducive to good

health and work productivity. In addition, shift to energy-efficient lighting such as fluorescent light bulbs, LED desk lamps and occupancy sensors to conserve electricity. Another good option is solar shading, which efficiently reduces the amount of heat that penetrates the office, reducing the need for all the ACs to be at work constantly.

You needn’t be in the management or the ‘top boss’ to implement these changes in your workplace. If you care about where the planet is headed and would like to bring about a positive change in the environment, start with your workplace. These baby steps are what will eventually improve energy efficiency and create healthier and smarter workplaces.

The arrangement and positioning of workstations should be such that it makes optimum utilisation of natural light. This will go a long way in

conserving electricity…

Take up the additional responsibility to switch off your colleague’s computer if it is still on, and ensure the ACs and lights are switched off as well. Did you know that certain •

organisations offer cash and other incentives to employees who play a significant role in energy and resource conservation? Now, you will make your colleagues go green with envy! Try using GreenPrint, a software • that helps eliminate blank pages from documents before printing and can also convert files to PDF for paperless document sharing.Wearing office formals made • out of organic material is a step closer to making the workplace eco-friendly.

Eco-friendly office ways

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Poussette and Piglet, which he illustrated but which a sports reporter wrote. Being tired of it, he soon began to work on his own comic, which led, finally, to the first appearance of an intrepid boy journalist, Tintin.

HERGÉ AND THE GREAT TINTIN ADVENTUREThe first story Tintin in the Land of the Soviets, a political satire, was an instant success. Everyone in Belgium, and very soon the world, fell in love with the young hero and his pet fox terrier Milou, better known as Snowy.

After the story was concluded in May, 1930, Hergé began to complete a new adventure every year. While he was working on the first of the Tintin adventures, Hergé also began working on a lesser-known comic, Quick & Flupke. Each adventure, once finished,

achievemore PROFILE

Some of us are born for adventure and some born to create it. And so was the case of young Georges

Prosper Remi, who dreamt of great adventures as he spent a childhood that was, by his own admission, extremely boring. And, in a way, it is fitting that this young boy grew up to ensure generations of children after him would get plenty of adventure in their lives, lived through his most celebrated comic creation – Tintin.

THE ADVENTURES OF THE CURIOUS FOXAs a child, Remi would alleviate his boredom and fulfil his lust for adventure by living vicariously through the lives of fictional characters in novels such as The Adventures of Huckleberry Finn and Treasure Island, and the movies of Charlie Chaplin and Buster Keaton. He enjoyed drawing, and was often seen doodling in his books.

When he started his secondary education at Saint-Boniface School, Remi joined the Boy Scouts and was nicknamed ‘Renard Curieux’, which means ‘Curious Fox’. Remi’s first

published drawings appeared in his school’s scouting paper Jamais Assez, and were also published in the monthly scouting magazine Le Boy-Scout Belge. His time as the ‘curious fox’ during his boy scouting days left an indelible mark on him.

CREATING A NAME FOR HIMSELFBy 1924, Remi started to use a nom de plume (pen name), one that he was associated with for the rest of his life. Flipping his initials — G. R. — backward, Remi came up with Hergé, the French pronunciation of ‘RG’. In 1925, after passing out from school, Hergé got a job at a Catholic newspaper Le XXe Siècle, where he worked in the subscription department.

A year later, Le Boy-Scout Belge published Hergé’s first comic series Totor, about a boy scout. It wasn’t until 1928 that he was given the responsibility of putting together Le Petit Vingtième, the Le XXe Siècle children’s supplement. For this, he created a comic strip Flup, Nénesse,

Working through war, personal troubles and ill health, Georges Remi, or Hergé as he is better known, is a European icon thanks to his most popular comic hero. By Freyan Patel

The war forced Hergé to revolutionise his style, because a

shortage of paper required him to create shorter, snappier strips, and he could no longer rely on current affairs for his stories. He turned instead to adventures based on fantasy.

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achievemore PROFILE

was published as a complete book by Le Petit Vingtième. In subsequent editions, Hergé continued to make revisions in the stories, later including colour in his work.

In 1932, Hergé embarked on an adventure of a different kind, when he married Germaine Kieckens, the secretary of Norbert Wallez, editor of Le XXe Siècle.

AN EYE FOR DETAILOne of the best facets of the Tintin stories was Hergé’s eye for detail. He would take great pains to ensure that the places Tintin visited were represented correctly. As Steven Spielberg once said, “Hergé wrote about fictional people in a real world, not in a fantasy universe.”

Hergé’s true genius and eye for detail, is truly apparent in the fifth Tintin adventure, The Blue Lotus. Set in China, the story saw the introduction of Tintin’s young Chinese friend, Chang Chong-Chen, who was inspired by a young Chinese sculptor — Chang Chong-jen, aka, Zhang Chongren — Hergé had met in Brussels. It was Chang who taught Hergé about the finer details of Chinese culture. The two became fast friends and remained so when Chang returned home, but lost touch after the Japanese invasion of China.

THE WORLD AT WARBy 1940, World War II had broken out and Hergé was mobilised as a reserve lieutenant. When Belgium was occupied by the Nazis, Le Petit Vingtième was shut down, and the 15th Tintin adventure, Land of Black Gold, was interrupted (it was finished in 1948). Then, Hergé was offered a job at Le Soir, a French daily appropriated as a Nazi mouthpiece.

During the war, he published six Tintin adventures, the most notable being The Crab with the Golden Claws, The Shooting Star and The Secret of the Unicorn. The war forced Hergé to revolutionise his style, because a shortage of paper required him to create shorter, snappier strips, and he

brought in for questioning four times by various groups.

TURNING THE TIDEAs Tintin’s popularity soared, there was a great demand for new adventures, which took a toll on Hergé, who had to take a two-month break due to exhaustion, interrupting Prisoners of the Sun. After this, he suffered two nervous breakdowns, finally leading to the establishment of Hergé Studios in 1950, where several employees aided Hergé in producing the comics. It was here that he met and fell in love with colourist, Fanny Vlamynck, causing his marriage to crumble. He and Germaine separated in 1960 and divorced in 1977, which allowed him and Fanny to finally marry.

In the latter half of the ’50s, Hergé started to have recurring nightmares, filled with whiteness. A psychoanalyst advised him to stop working on Tintin adventures, but Hergé, just like any true artist, used his despair to create Tintin in Tibet, where Tintin, Captain Haddock and a Sherpa journeyed to the Himalayas to search for Tintin’s lost friend, Chang. Years later, when Hergé finally did visit China, he reunited with his old friend, the real-life Chang, after almost four decades.

THE END OF AN ERA…In 1974, Hergé published what was to become the last completed Tintin story, Tintin and the Picaros. His final story, which was left incomplete due to his death in 1983, was set in a world inspired by modern art, of which Hergé had become a great admirer. The incomplete Tintin et L’Alph-Art was published in 1986.

One of the best facets of the Tintin stories was Hergé’s

eye for detail. He would take great pains to ensure that the places Tintin visited were represented correctly.

How the heroes came about

Hergé drew inspiration for his star • character, Tintin, from the career of the French foreign correspondent Albert Londres, who he deeply would have liked to be.Snowy• , a fox terrier, popular for his intelligence and heroics, was named after Hergé’s girlfriend who was nicknamed Milou.The grumpy, pipe-smoking • alcoholic, Caption Haddock, is an adaptation of Edgar-Pierre Jacobs, who worked with him to make Tinitin into colour.Thomson and Thompson• , the forever late and forever wrong detectives, are physically based on Hergé’s father and uncle, who were twins and would more often than not dress up in similar fashion.Professor Cuthbert Calculus• , the half-hearing scientist, is a partial replica of inventor Auguste Piccard, who was a professor of physics at the University of Brussels from 1922 to 1954.Bianca Castafiore• , the glass-breaking opera singer, was modelled after Aino Ackté, a Finnish soprano.

could no longer rely on current affairs for his stories. He turned instead to adventures based on fantasy.

Despite this, Hergé still faced some flak for seemingly anti-Semitic characters and for being an alleged Nazi collaborator. Hergé was accused of being a Nazi sympathiser and was

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