Indices 2nd 27th Change

February February in (%)

2015 2015

Dear Investor,

The Finance Minister presented the Union Budget 2015 in the parliament on February 28, 2015. Touted as “make or break” budget for India, it retained focus on financial inclusion, education, health, agriculture and curbing black money. Besides, the budget has increased focus on infrastructure development, housing and manufacturing in India. The Union Budget 2015 also takes into account the interest of diverse sections of the society such as aged, disabled, middle class, youth and farmers. Of course, the tax payers would have liked to get more relief than what has been given in the form of increase in exemption limit for health insurance premium and a nominal increase in transport allowance. While we have listed out the highlights of the Union Budget in this issue, I would like to touch upon a few of the path breaking announcements.

To begin with, the Goods and Services Tax (GST) will be implemented from April 1, 2016. GST is expected to play a transformative role in the way economy functions. However, the government will have to move faster as everything is dependent on whether it is able to pass the constitutional amendment bill in the current budget session.

With its focus on infrastructure-road, power, ports and housing- the budget is likely to kick-start the investment cycle. The setting up of National Infrastructure fund is a step in the right direction. The budget has provided much needed clarity on taxation, MAT and permanent establishment for private equity players thus encouraging them to bring in more investments.

The move of having a composite limit for foreign direct investment (FDI) and foreign private investors (FPI) is something that industry has been asking for long time. The move to reduce the rate of corporate tax from 30 percent to 25 percent over four years starting from 2016-17 will add to their earnings. Although the market was expecting a fiscal deficit of 3.6 percent to be met in 2015-16, the finance minster pegged it at 3.9 percent. However, on the positive side, the budget shows pragmatism in making higher allocation to infrastructure. Moreover, the revenue deficit of 2.8 percent of GDP will provide the RBI the flexibility to cut interest rates.

Overall, we believe that it is transformational budget. It may have disappointed certain sections of the society as it didn't offer much to them directly, its focus on improving the state of the economy will benefit one and all.

Warm regards,

Hemant RustagiEditor

The Stock MarketPerformanceDuring February 2015.

Sensex 29,122.27 29,361.50 0.82

MIDCAP 10,799.13 10,810.85 0.11

SMLCAP 11,456.84 11,266.44 -1.66

BSE-100 8,895.29 8,994.46 1.11

BSE-200 3,641.01 3,674.53 0.92

BSE-500 11,353.84 11,454.35 0.89

Registered - R.N.I. No.: MAHENG/2007/19802 • Postal Regd. No.: MH/MR/N/72/MBI/13-15 • Posted at Mumbai Patrika Channel Sorting Office, GPO, Mumbai on 9th & 10th of every month.

Volume 9, Issue 3

March, 2015

A Month ly Publ icat ion f rom Wiseinvest Advisors Private Limited

Price ` 2

Inside Pg No.

“Wealthwise” is a monthly publication brought to you by Wiseinvest Advisors, which is a quality investment advisory firm that specializes in mutual funds. Our CEO, Hemant Rustagi, is a well known personal finance expert. He brings with him an experience of more than 25 years in this field. He regularly writes articles for major national dailies and business magazines as well as appears as a personal finance expert on many investments related TV shows. Besides, our team of advisors has professionals who have spent years in the mutual fund industry. In the last ten years, thousands of our clients have benefitted from our quality advice and have made mutual funds as the mainstay of their portfolio. You can benefit too from our expertise for your existing as well as new investments. All you need to do is to just call up any of the branches or email your requirements at

and our professional advisors will do the rest.information@wiseinvestadvisors.com

Wealthwise

Address to be affixed here

4Performance Of Select Funds

5Tips To Invest Smartly ForYour Retirement

2-3Key Features OfUnion Budget 2015-2016

6Form IV

March 2015 | Page No. 2

Key Features Of Union Budget 2015-2016

Introduction

Key Achievements

State of EconomyInflation

Amrut Mahotsav - The year 2022, 75th year of Independence Vision for “Team India” led by PM

• Credibility of Indian economy has been re-established in the last nine months.

• Indian economy about to take-off on a fast growth trajectory.• Most growth forecasts have upgraded Indian economic growth while

downgrading global economic growth.• Economically empowered States are equal partners to Indian economic

growth.• Round the clock, round the year Government to pursue accelerated growth,

enhanced investment for the benefit of all Indians.• After inheriting an economy with sentiments of “doom and gloom” with

adverse macroeconomic indicators, nine months have seen at turn around, making India fastest growing large economy in the World with a real GDP growth expected to be 7.4% (New Series).

• Stock market - Second best performing in 2014.• Macro-economic stability and conditions for sustainable poverty

alleviation, job creation and durable double digit economic growth have been achieved.

• Restored the trust of the people on the Government by delivering on different areas.

• Financial Inclusion - 12.5 crores families financially mainstreamed in 100 days.

• Transparent Coal Block auctions to augment resources of the States.• Swachh Bharat is not only a programme to improve hygiene and

cleanliness but has become a movement to regenerate India.• Game changing reforms on the anvil:

- Goods and Service Tax (GST)- Jan Dhan, Aadhar and Mobile (JAM) - for direct benefit transfer.

• Inflation declined - a structural shift• CPI inflation projected at 5% by the end of the year, consequently, easing

of monetary policy.• Monetary Policy Framework Agreement with RBI, to keep inflation below

6%.• GDP growth in 2015-16, projected to be between 8 to 8.5%.

• Housing for all - 2 crore houses in Urban areas and 4 crore houses in Rural areas.

• Basic facility of 24x7 power, clean drinking water, a toilet and road connectivity.

• At least one member has access to means for livelihood.• Substantial reduction in poverty.• Electrification of the remaining 20,000 villages including off-grid Solar

Power- by 2020.• Connecting each of the 1,78,000 un-connected habitation.

• Providing medical services in each village and city.• Ensure a Senior Secondary School within 5 km reach of every child, while

improving quality of education and learning outcomes.• To strengthen rural economy - increase irrigated area, improve the

efficiency of existing irrigation systems, and ensure value addition and reasonable price for farm produce.

• Ensure communication connectivity to all villages.• To make India, the manufacturing hub of the World through Skill India and

the Make in India Programmes.• Encourage and grow the spirit of entrepreneurship - to turn youth into job

creators.• Development of Eastern and North Eastern regions on par with the rest of

the country.

• Five major challenges: Agricultural income under stress, increasing investment in infrastructure, decline in manufacturing, resource crunch in view of higher devolution in taxes to states, maintaining fiscal discipline.

• To meet these challenges public sector needs to step in to catalyse investment, make in India programme to create jobs in manufacturing, continue support to programmes with important national priorities such as agriculture, education, health, MGNREGA, rural infrastructure including roads.

• Challenge of maintaining fiscal deficit of 4.1% of GDP met in 2014-15, despite lower nominal GDP growth due to lower inflation and consequent sub-dued tax buoyancy.

• Government firm on journey to achieve fiscal target of 3% of GDP.• Realistic figures shown in fiscal account without showing exaggerated

revenue projections.• With improved economy, pressure to accelerate fiscal consolidation too

has decreased.• Accordingly, journey for fiscal deficit target of 3% will be achieved in 3

years rather than 2 years. The fiscal deficit targets are 3.9%, 3.5% and 3.0% in FY 2015-16, 2016-17 & 2017-18 respectively.

• Additional fiscal space will go to funding infrastructure investment.• Need to view public finances from a National perspective and not just the

perspective of the Central Government. Aggregate public expenditure of the Governments, as a whole can be expected to rise substantially.

• Disinvestment to include both disinvestment in loss making units, and some strategic disinvestment.

• Government to work towards creating a functional social security system for all Indians, specially the poor and the under-privileged.

• Pradhan Mantri Suraksha Bima Yojna to cover accidental death risk of ̀ 2

Lakh for a premium of just ̀ 12 per year.

Major Challenges Ahead

Fiscal Roadmap

From Jan Dhan to Jan Suraksha

Cont. on page 3...

Page No. 3 | March 2015

Key Features...

• Atal Pension Yojana to provide a defined pension, depending on the contribution and the period of contribution. Government to contribute 50%

of the beneficiaries' premium limited to ` 1,000 each year, for five years,

in the new accounts opened before 31st December 2015.• Pradhan Mantri Jeevan Jyoti Bima Yojana to cover both natural and

accidental death risk of ̀ 2 lakh at premium of ̀ 330 per year for the age

group of 18-50.

• Sharp increase in outlays of roads and railways. Capital expenditure of public sector units to also go up.

• National Investment and Infrastructure Fund (NIIF), to be established with

an annual flow of ̀ 20,000 crores to it.

• Tax free infrastructure bonds for the projects in the rail, road and irrigation sectors.

• Government to bring enabling legislation to allow employee to opt for EPF or New Pension Scheme. For employee's below a certain threshold of monthly income, contribution to EPF to be option, without affecting employees' contribution.

• Gold monetisation scheme to allow the depositors of gold to earn interest in their metal accounts and the jewellers to obtain loans in their metal account to be introduced.

• Sovereign Gold Bond, as an alternative to purchasing metal gold scheme to be developed.

• Non-Plan expenditure estimates for the Financial Year are estimated at

` 3,12,200 crore.

• Plan expenditure is estimated to be ̀ 4,65,277 crore, which is very near to

the R.E. of 2014-15.Total Expenditure has accordingly been estimated at

` 17,77,477 crore.

• The requirements for expenditure on Defence, Internal Security and other necessary expenditures are adequately provided.

• Gross Tax receipts are estimated to be ̀ 14,49,490 crore.

• Devolution to the States is estimated to be ̀ 5,23,958.

• Share of Central Government will be ̀ 9,19,842.

• Non Tax Revenues for the next fiscal are estimated to be ̀ 2,21,733 crore.

• Fiscal deficit will be 3.9 per cent of GDP and Revenue Deficit will be 2.8 per cent of GDP.

• No change in rate of personal income tax.• Proposal to reduce corporate tax from 30% to 25% over the next four years,

starting from next financial year.• Rationalisation and removal of various tax exemptions and incentives to

reduce tax disputes and improve administration.

Infrastructure

Financial Market

Monetising Gold

Budget Estimates

Tax Proposal

...Cont. from page 2 Black Money

Swachh Bharat

Benefits to middle class tax-payers

• Generation of black money and its concealment to be dealt with effectively and forcefully.

• Benami Transactions (Prohibition) Bill to curb domestic black money to be introduced in the current session of Parliament.

• Acceptance or re-payment of an advance of ` 20,000 or more in cash for

purchase of immovable property to be prohibited.• PAN being made mandatory for any purchase or sale exceeding Rupees 1

lakh.

• 100% deduction for contributions, other than by way of CSR contribution, to Swachh Bharat Kosh and Clean Ganga Fund.

• Clean energy cess increased from ̀ 100 to ̀ 200 per metric tonne of coal,

etc. to finance clean environment initiatives.• Excise duty on sacks and bags of polymers of ethylene other than for

industrial use increased from 12% to 15%.• Enabling provision to levy Swachh Bharat cess at a rate of 2% or less on all

or certain services, if need arises.• Services by common affluent treatment plant exempt from Service-tax.• Concessions on custom and excise duty available to electrically operated

vehicles and hybrid vehicles extended upto 31.03.2016.

• Limit of deduction of health insurance premium increased from ` 15000

to ̀ 25000, for senior citizens limit increased from ̀ 20000 to ̀ 30000.

• Senior citizens above the age of 80 years, who are not covered by health

insurance, to be allowed deduction of ` 30000 towards medical

expenditures.

• Deduction limit of ` 60000 with respect to specified decease of serious

nature enhanced to ̀ 80000 in case of senior citizen.

• Additional deduction of ̀ 25000 allowed for differently abled persons.

• Limit on deduction on account of contribution to a pension fund and the

new pension scheme increased from ̀ 1 lakh to ̀ 1.5 lakh.

• Additional deduction of ` 50000 for contribution to the new pension

scheme u/s 80CCD.• Payments to the beneficiaries including interest payment on deposit in

Sukanya Samriddhi scheme to be fully exempt.

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March 2015 | Page No. 4

Performance Of Select FundsData as on February 27, 2015

Mutual funds, like securities investments, are subject to market and other risks. As with any investments in securities, the NAV of units can go up or down depending on the factors and forces affecting capital markets.

Please check whether you have received dividend for the fund/s that you may have in your portfolio out of this list. In case, you do not maintain any portfolio statement, Wiseinvest Advisors can do that for you free of charge. Once we have the details, we would send your updated statement every month. You can contact our corporate office or any of the branches to avail of this free service.

EQUITY FUNDSDiversified Fund Launch 1-Month* 3-Month* 6-Month* 1-Year* 2-Year** 3-Year** 5-Year**Axis Equity Fund Jan-10 -0.45 1.37 14.18 48.81 29.32 24.37 15.19Birla Sun Life Frontline Equity Fund Aug-02 0.35 5.48 17.18 56.25 33.00 26.32 17.14Birla Sun Life Equity Fund Aug-98 0.56 6.83 18.03 68.70 38.78 28.01 15.81BNP Paribas Equity Fund Sep-04 -0.67 7.08 17.56 61.59 33.24 26.01 18.30Canara Robeco Equity Diversified Sep-03 0.68 4.46 14.58 51.66 28.80 21.56 16.43Franklin India Prima Plus Fund Sep-94 -0.42 6.47 21.97 65.22 35.32 26.21 18.62HDFC Equity Fund Jan-95 -2.08 -1.17 9.68 58.41 32.42 22.29 16.51HDFC Top 200 Fund Sep-96 -1.54 -0.24 9.98 53.69 29.21 20.46 15.35ICICI Prudential Dynamic Fund Oct-02 0.90 3.66 12.54 45.85 31.55 22.62 16.67ICICI Prudential Focused Bluechip May-08 0.03 3.65 14.38 50.07 30.53 22.58 17.97Kotak 50 Dec-98 0.89 7.30 18.72 54.40 29.08 22.21 14.71Kotak Select Focus Fund Sep-09 -0.78 6.03 22.29 66.66 37.50 28.15 18.38L&T Equity Fund May-05 0.26 6.54 18.66 62.52 34.22 23.01 17.17Reliance Top 200 Fund - Retail Plan Aug-07 0.46 4.81 20.33 64.21 34.71 26.31 17.59Religare Invesco Contra Fund Apr-07 1.56 8.16 21.66 76.57 40.65 28.25 17.12SBI Bluechip Fund Feb-06 1.35 6.86 18.16 56.56 32.50 27.27 16.25UTI Opportunities Fund Jul-05 -0.92 3.95 14.60 49.71 29.47 21.19 17.36

Sector, Specialty & Tax SavingCanara Robeco F.O.R.C.E Fund Sep-09 -1.00 6.46 25.28 71.78 31.51 25.88 19.88ICICI Prudential Infrastructure Fund Aug-05 0.35 5.63 14.45 75.36 31.47 18.41 9.77Reliance Banking Fund May-03 -3.21 6.09 22.88 85.11 30.62 24.11 20.25Reliance Pharma Fund Jun-04 -2.29 1.72 15.75 41.82 41.24 32.81 24.04Axis Long Term Equity Fund Dec-09 1.06 8.51 22.29 72.92 47.90 34.96 24.92HDFC Long Term Advantage Fund Jan-01 -0.13 0.12 7.87 46.93 30.47 21.93 16.76HDFC Taxsaver Fund Mar-96 -0.87 0.63 11.59 62.12 34.24 22.48 16.20IDFC Tax Advantage (ELSS) Fund Dec-08 0.98 9.31 20.53 58.10 36.03 27.80 18.44Reliance Tax Saver Fund Sep-05 1.13 7.65 25.62 101.39 49.88 33.91 23.13

Midcap & SmallcapFranklin India Smaller Companies Fund Jan-06 0.42 8.30 21.69 94.95 53.88 41.78 25.65HDFC Mid-Cap Opportunities Fund Jun-07 -1.24 4.85 19.59 74.37 45.56 31.66 24.53ICICI Prudential Value Discovery Fund Aug-04 1.34 8.62 19.18 85.75 46.13 34.30 23.21IDFC Premier Equity Fund - Regular Sep-05 2.89 10.36 22.83 69.22 39.85 30.55 22.65IDFC Sterling Equity Fund - Regular Mar-08 1.21 9.21 22.79 72.02 35.69 28.35 19.97SBI Magnum Global Fund Sep-94 0.44 11.36 25.72 76.89 42.48 33.10 22.89Reliance Equity Opportunities Fund Mar-05 0.60 3.83 22.19 67.14 36.68 29.18 22.11Religare Invesco Mid N Small Cap Mar-08 3.54 9.72 25.44 87.00 49.05 36.56 26.04

HYBRIDEquity, Debt Oriented & Multi Asset ClassBirla Sun Life 95 Fund Feb-95 0.14 5.91 18.51 54.97 30.41 23.03 16.60Canara Robeco Balance Fund Feb-93 -0.86 4.36 15.79 53.57 28.58 21.78 16.78HDFC Balanced Fund Sep-00 -0.39 4.12 14.85 51.77 33.15 23.02 19.12HDFC Prudence Fund Feb-94 -1.44 0.50 9.32 55.19 30.22 21.17 16.99ICICI Prudential Balanced Fund Nov-99 0.71 4.80 15.09 49.41 30.92 24.51 18.87ICICI Prudential Balanced Advantage Dec-06 1.23 3.62 9.83 33.35 23.50 20.82 16.09Kotak Balance Nov-99 0.71 4.14 13.64 35.09 20.60 17.24 12.61Reliance Regular Savings Fund Jun-05 -1.66 4.04 13.34 51.92 28.12 22.46 15.55Tata Balanced Fund - Plan A Oct-95 2.26 9.48 22.04 60.52 34.80 26.63 18.60Canara Robeco Monthly Income Plan Apr-01 0.66 3.52 9.00 23.11 15.62 12.56 10.68HDFC MF Monthly Income Plan Dec-03 -0.48 2.42 8.84 27.09 15.29 12.97 10.94IDFC Monthly Income Plan Feb-10 0.32 3.66 10.20 22.06 13.17 13.27 10.48Reliance Monthly Income Plan Dec-03 0.17 4.79 12.77 27.22 15.46 13.22 11.04Axis Triple Advantage Fund Aug-10 -0.64 4.23 8.78 18.56 11.83 10.92 —Franklin India Dynamic PE Ratio Oct-03 -0.06 2.85 10.27 30.58 17.06 13.70 11.20Kotak Equity Savings Fund Oct-14 0.36 2.42 — — — — —

Arbitrage FundsICICI Prudential Equity Arbitrage Fund Dec-06 0.74 2.24 3.96 8.48 9.03 9.74 8.74IDFC Arbitrage Plus Fund - Regular Jun-08 0.62 2.42 4.05 8.21 8.50 8.82 7.81Kotak Equity Arbitrage Fund Sep-05 0.74 2.22 4.08 8.80 9.04 9.33 8.45

International FundsFranklin India Feeder Franklin US Opp. Feb-12 6.66 4.49 9.87 8.38 28.55 23.73 —ICICI Prudential US Bluechip Equity Jul-12 6.59 -1.02 2.88 10.08 25.80 — —JP Morgan Europe Dynamic Equity Feb-14 5.27 1.29 0.29 -7.41 — — —

*Absolute ** Annualised. Past performance may or may not be sustained in future.

Income, Short Term & Ultra Short Term Funds Funds Launch 1 Week* 1 Month* 3 Months*6 Months* 1 Year* 2 year** 3 Year**Birla Sun Life Short Term Opp. Fund Jun-08 0.34 0.43 2.39 6.16 11.82 10.92 10.97Birla Sun Life Dynamic Bond Fund Sep-04 0.05 0.38 4.29 9.92 15.94 11.13 10.74Kotak Income Opportunities Fund May-10 0.25 0.45 2.17 5.41 11.25 9.32 9.31Religare Invesco Short Term Fund Mar-07 0.23 0.32 2.58 5.91 10.42 8.48 8.80Reliance Regular Savings Fund Jun-05 0.30 0.48 2.22 5.58 11.36 9.63 9.55SBI Magnum Income Fund Nov-98 -0.01 0.21 4.47 9.47 14.44 8.18 9.61L&T Income Opportunities Fund Oct-09 0.27 0.43 2.44 5.98 11.98 8.96 8.78BNP Paribas Flexi Debt Fund Sep-04 -0.07 0.34 4.93 10.02 15.49 10.98 10.90BNP Paribas Money Plus Fund Oct-05 0.16 0.57 2.01 4.27 8.61 8.52 8.63L&T Ultra Short Term Fund Mar-02 0.19 0.57 2.01 4.31 8.91 8.79 8.78Kotak Floater Long Term Aug-04 0.21 0.57 1.97 4.45 9.40 9.22 9.26UTI Short Term Income Fund Jun-03 0.07 0.41 2.54 5.59 11.31 9.76 10.01Kotak Banking and PSU Debt Fund Dec-98 0.23 0.58 2.05 4.26 9.15 9.53 8.86

DEBT

Dividends declared by equity and equity-oriented funds duringthe month of February 2015 Scheme name Date Dividend declared in ̀ Per unit

HDFC Premier MultiCap Fund 05/02/2015 1.50HDFC Long Term Advantage 05/02/2015 4.00DSP-BR Technology.Com 06/02/2015 3.40ICICI Pru Tax Plan 06/02/2015 2.00Reliance RSF - Equity 06/02/2015 3.00Religare Invesco Mid Cap 06/02/2015 2.90Tata Tax Saving Fund - Plan A 06/02/2015 2.85HDFC Growth Fund 12/02/2015 3.50DSP-BRTax Saver Fund 13/02/2015 1.90Franklin India Prima Plus 13/02/2015 2.50JPMorgan India Equity Fund 13/02/2015 1.70Mirae (I) Opportunities-RP 13/02/2015 1.60Sundaram Select Micro Cap-Sr 1-5RP 13/02/2015 0.50Reliance RSF - Balanced 13/02/2015 2.00Tata Balanced Fund 13/02/2015 8.60IDFC Tax Advantage (ELSS)-RP 16/02/2015 2.00HDFC Capital Builder Fund 19/02/2015 3.00HDFC Core & Satellite Fund 19/02/2015 2.00HDFC Small and Mid Cap Fund 19/02/2015 2.00Franklin (I) Smaller Cos 20/02/2015 2.00Reliance Diverisified Power Fund 20/02/2015 3.25Reliance Focused Large Cap - RP 20/02/2015 2.35DSP-BR Balanced Fund 20/02/2015 3.55Baroda Pioneer ELSS 96 23/02/2015 2.25Birla Sun Life Index Fund 25/02/2015 5.20IDFC Classic Equity - Plan B 25/02/2015 1.50IDFC Classic Equity - Regular 25/02/2015 1.50IDFC Equity Opport. -Sr 2- Reg 25/02/2015 1.50HDFC Large Cap Fund 26/02/2015 2.50UTI Leadership Equity Fund 26/02/2015 2.25HDFC Prudence Fund 26/02/2015 3.50L&T Tax Advantage 27/02/2015 1.70Reliance Banking Fund 27/02/2015 5.00Tata Dividend Yield Fund 27/02/2015 2.25BNP Paribas Dividend Yield 27/02/2015 0.10BNP Paribas Long Term Equity 27/02/2015 1.00Can Robeco Eqty TaxSaver 27/02/2015 1.00DSP-BR India TIGER 27/02/2015 2.10ICICI Pru Bkg & Fin Services fund 27/02/2015 3.00ICICI Pru Tech. Fund 27/02/2015 3.00Kotak Mid-Cap Fund - Regular 27/02/2015 1.00L&T Prudence Fund 27/02/2015 0.12

Page No. 5 | March 2015

Tips To Invest Smartly For Your Retirement

One of the most important investment goals for every investor is to build a corpus that is sufficiently large to generate adequate income during his retirement. However, many of us often get overwhelmed by the thought of retirement and how to go about building a retirement corpus. No wonder, only a small section of investors plan for their retirement in the right manner. For the remaining, a combination of factors like failure to plan and investing in instruments that do not provide real rate of return makes it difficult to lead a happy retired life.

The truth, however, is that one must plan for retirement as much ahead as possible. Remember, a carefully planned investment strategy not only goes a long way in helping you identify what you need to do in the present to lead a particular lifestyle after retirement, but also in avoiding pitfalls in your retirement. Your retirement plan should take into account factors such as when you plan to retire, the corpus you would require and the number of years you have to build it. Overall, the focus should be on saving as much as possible so that you can retire when you want and ensure that you do not outlive your money.

If you are one of those investors who has not yet started your investment process for retirement planning, you must act now. Although it pays to start investing early, it's never too late to do so. The important thing is to realise the importance of this goal in your life and make a commitment to follow a disciplined investment approach. The right way to make amends to the delay is to start investing now by ascertaining your time horizon and corpus required for retirement. Based on these two factors, you can work out how much you need to invest per month to achieve the desired corpus.

For example, if you are 40 years old and would like to have an income of, say, Rs 50,000 per month during your retirement, you will need to generate a corpus of at least Rs 1 crore to generate this income for you at the start of retirement. However, considering that your monthly expenses will keep on increasing every year on account of inflation, assuming an inflation rate of seven per cent, your expenses will increase by Rs 20,000 after five years, i.e., Rs 70,000 pm. In another five years, the monthly expenses will increase to Rs 98,000. As is evident, you will have to generate a tax-free income of around 10 per cent in the 10th year of retired life, which may compel you to take unwarranted risks on your retirement corpus.

A situation like this can cause distress and hence needs to be avoided. Therefore, you must aim to create a corpus of Rs 2 crore over the next 20 years. Assuming an annualised return of 12 per cent, you need to make a monthly investment of Rs 22,000 through SIP in options like equity funds . If you are not in a position to invest this amount currently, you must begin with whatever amount you can. In fact, the right way would be to create a budget for your monthly expense and avoid certain discretionary expenses that may allow you to invest some more money than what you may think you can. Make sure that you continue this process, irrespective of the market conditions. Remember, being a long-term investor, you will benefit from the volatilities in the stock market as investments made during market downturns will bring your average cost down.

The problem is that most young people do not think about retirement - mentally or financially. They need to realise that for every 10 years of delay in the start of their investment process, they will need to invest three times as much each month to catch up. Therefore, if you are young, don't be afraid to start investing even with small sums. Remember, smaller contributions made

on a regular basis in a highly potential asset class like equity can produce fantastic results in the long run. Needless to say, the longer you keep your money invested, the more you benefit from power of compounding. Of course, to get the best you have to stick to the plan as ups and downs would all even out over the years.

Don't make the mistake of withdrawing amounts during the process of building the retirement corpus. While at times it might become absolutely necessary to do so, making it a habit can prove very costly after retirement.

Selecting appropriate investment options holds the key to success for retirement planning. Investing too conservatively can seriously dent your chances of creating the required corpus. For a long-term investment objective like retirement planning, your portfolio must have a significant portion invested in equity and equity-oriented options. The presence of efficient investment options like mutual funds in the portfolio can help you a great deal.

Remember, investing in pension funds offered by mutual funds can go a long way in keeping you focused on this very important goal. Besides, you enjoy tax benefits at the time of investment under section 80 C. In addition, long-term capital gains on funds that invest 65 per cent or more in equities are tax-free. For debt-oriented funds, that is, funds that invest less than 65 per cent in equities, long-term capital gains are taxed at 20 per cent after providing for indexation. Overall, these funds score over pension plans offered by insurance companies as well as NPS.

Currently, there are three such funds on offer from mutual funds - Templeton India Pension Plan, UTI Retirement Benefit Pension Fund and Reliance Retirement Fund. Out of these, Reliance Retirement Fund offers a Wealth Creation Option that allows investors to invest between 65 and 100 per cent in equities. The fund also has an income generation option that invests up to 30 per cent in equities and the rest is invested in debt instruments. The funds offered by UTI and Templeton invest up to 40 per cent in equities and the rest in debt instruments. You can select a fund based on your asset allocation, which should ideally depend upon how much time you have before you retire.

Unfortunately, many investors in our country continue to invest a significant part of their investments for retirement planning into traditional options like EPF, PPF, bonds, etc. They do so because they do not want to risk their capital. While it is all right to be worried about the safety of the capital, putting too much emphasis on it exposes them to another bigger risk, which is inability to beat inflation. Therefore, during the accumulation phase, the focus should be on "growth".

Investors also err while making their post-retirement investments for generating regular income. They invest predominantly in instruments offering guaranteed returns like Monthly Income Scheme of post office, Senior Citizen Savings Scheme as well as bank fixed deposits and hence often struggle to keep pace with inflation. It's important to invest a part of the corpus in equities and equity-related instruments even after retirement. Considering that the life expectancy in our country has been rising, it is a must. However, the exact asset allocation should be based on the corpus size, income requirement and financial liabilities.

(This article written by our CEO, Hemant Rustagi, was published in businesstoday.in on February 16, 2015).

March 2015 | Page No. 6

DISCLAIMER: All reasonable care has been taken to ensure that the information contained herein is neither misleading nor untrue at the time of publication, but we make no representation as to its accuracy or completeness. All information is provided without any liability whatsoever on the part of Wiseinvest Advisors Private Limited.

RISK FACTORS: Mutual funds, like securities investments, are subject to market and other risks and there can be no assurance that the scheme's objectives will be achieved. As with any investments in securities, the NAV of units can go up or down depending on the factors and forces affecting capital markets. Please read the offer document before investing.

Edited, Published and Printed by Mr. Hemant Rustagi, on behalf of Wiseinvest Advisors Pvt. Ltd. from 202, Shalimar Morya Park, New Link Road, Andheri West, Mumbai 400053 at AdvantEdge Offset Printers, K-7 Rizvi Park, S V Road , Santacruz (W), Mumbai 400 054. Design by Mosaic Design. Copyright reserved © 2007. All rights reserved in favour of Wiseinvest Advisors Pvt. Ltd.

• Corporate Office:

202, Shalimar Morya Park, New Link Road, Andheri West, Mumbai 400053. Tel : 26732676 / 77

Fax : 2673 2671. E-mail : information@wiseinvestadvisors.com

• Branches:

Fort : 107, Vikas Building, Above Jimmy Boy Restaurant, 11, N.G.N. Vaidya Marg, Fort, Mumbai - 400 001. Tel: 6524 5333 / 34, 2263 2329

Fax: 2263 2330. E-mail : information3@wiseinvestadvisors.com

Thane : Aishwarya Laxmi, Shop No. 4, Opp. Namdeo Wadi Hall, Maharshi Karve Road, Thane (W) - 400 602. Tel : 6592 7051 / 52

Fax : 2539 1306. E-mail : information1@wiseinvestadvisors.com

www.wiseinvestadvisors.com

WISEINVEST ADVISORS PVT. LTD.

Date of Publication: 5th of every month.

Registered - R.N.I. No.: MAHENG/2007/19802 • Postal Regd. No.: MH/MR/N/72/MBI/13-15 • Posted at Mumbai Patrika Channel Sorting Office, GPO, Mumbai on 9th & 10th of every month.

(CIN No.: U74140MH2003PTC142921)

(See rule 8)

Statement about ownership and other particulars about newspaper entitled “WEALTHWISE” as required to be published in the first issue every year after the last day of February.

1. Place of publication : Wiseinvest Advisors Pvt. Ltd.202, Shalimar Morya Park, New Link Road,Andheri West, Mumbai 400053.

2. Periodicity of its : Monthlypublication

3. Printer's Name : Hemant RustagiNationality : IndianAddress : Wiseinvest Advisors Pvt. Ltd.

202, Shalimar Morya Park, New Link Road,Andheri West, Mumbai 400053.

4. Publisher's Name : Hemant RustagiNationality : IndianAddress : Wiseinvest Advisors Pvt. Ltd.

202, Shalimar Morya Park, New Link Road,Andheri West, Mumbai 400053.

5. Editor's Name : Hemant RustagiNationality : IndianAddress : Wiseinvest Advisors Pvt. Ltd.

202, Shalimar Morya Park, New Link Road,Andheri West, Mumbai 400053.

SHAREHOLDERS

6. Names and addresses of individuals who own the newspaper and partners or shareholders holding more than one per cent of the total paid up capital as on 28.02.2015.

ndHemant Rustagi : 1205, Brighton Towers, 2 Cross lane,Lokhandwala Complex,Andheri West, Mumbai 400053.

nd

Shantasree Rustagi : 1205, Brighton Towers, 2 Cross lane, Lokhandwala Complex,Andheri West, Mumbai 400053.

I, Hemant Rustagi, hereby declare that the particulars given above are true to the best of my knowledge and belief.

FORM IV

Sd/-Hemant Rustagi

Signature of PublisherDate: 01.03.2015