Personal Finance Notes - Latesh Bayad

Myths

The amount of risk you can tolerate is based on your age
Zero Risk is the best investment option
Investing means stock picking
Buying gold jewellery is an investment
You should buy investment products from well-known companies like SBI, LIC, HDFC etc. (ULIPS and chit funds)
Life insurance products are better if they give us money after the policy expires
If I’m healthy and there is no history of illness in my family, then I don’t need health insurance
Your first home is an investment and an asset
If my company has health insurance then I don’t need separate insurance
I don’t need to know about finance or taxes because my CA will take care of everything

Should You Buy a Home

Basic thumb rules:

Home value < 5 times post-tax income. If annual income is 12 lakhs then the home value shouldn’t be more than 60 lakhs.
EMI < 40% of post tax income
If Home value / Annual rent < 15 then buy the house
If Home value / Annual rent > 20 then rent the house

For example, if you’re staying in a 1 Crore home and the monthly rent is INR 30,000. The annual rent is INR 3.6 lakhs

Home value / Annual rent = 27.77

So definitely rent the house and not buy

Should You Buy a Car

Basic Thumbrules to follow:

Car value shouldn’t be more than 6 months of post- tax salary
Don’t buy car on loan since interest rates are too high. Only buy if you have the cash.
If you’re a business owner or self-employed then buying a car makes sense since it can give you tax benefits on depreciation cost and interest payments

Financial Planning Intermediate

Common goals: emergency funds, domestic & international vacations, electronic gadgets or clothes, higher education, home, car, marriage, child planning, retirement planning

Short term (1-3 years) = 100% debt; Mid term (3-6 y) = 40% equity & 60% debt; Long term (6+ y) = 40-60% equity, 20% debt, 5% gold, 5% REIT, 5% Crypto or alternate assets or put remaining in debt

List your goals, do asset allocation, do quarterly or yearly

Check the excel sheet for financial planning goals & watch that video

Coast Fire is the amount which if collected till a particular age, can be kept as it is with normal 10% CAGR to reach the FIRE amount at retirement age. So like you’ll work hard till 40 and save it, then use active income to live life till retirement by doing what you like such as freelancing or other careers

Financial Planning Advanced (Picking funds)

Equity

Invest in any combination index fund, mid cap, small cap, multi cap, ELSS

Use INDmoney to know MF allocation in each cap accurately Use tickertap MF screener and add filter of expense ratio and tracking error and sort: https://www.tickertape.in/screener/mutual-fund Put in the excel sheet and sort ranking

For other than index funds, set AUM filter 1,000 to 10,000 Cr (because if too much money then their porfolio is more diversified due to SEBI 5% in 1 company restriction); Add 5 year CAGR filter sort high to low, extract top 10 funds & paste with expense ratio in excel sheet Add 5 year rolling returns, and the probability should be high for getting more than 15% returns or return consistency from Advisor Khoj (add 15-20% & Greater than 20% column values with % sign) https://www.advisorkhoj.com/mutual-funds-research/rolling-returns Add upside and downside capture ratio from MorningStar (similar to volatility ratio). Search fund name morningstar upside capture ratio

Pick 1 midcap & other funds, if investing more then pick 2. Put selected funds in main financial planning sheet, adjust SIP amounts to meet allocation percentages

Quit a fund if it’s not in top 25% of rankings for last 3-5 years. Go to moneycontrol page for that MF, check Rank within Category column next to returns column

Debt, REITs, Gold

Emergency funds: 20% cash, 40% savings, 40% liquid funds

Ideal for goals 1-2 years away. Search google for “small finance banks fd rates” to invest in FD If no clear purchase date in mind, use liquid fund, if decided then use FD, for retirement use govt schems like PPF, everything in between use debt funds Senior Citizen Savings Scheme or Post Office Monthly Income Scheme for parents, NSC Govt securities (bonds) or Treasury bills (T-Bills) are also good for short term (<1yr 91, 182, 364 days lockin options), invest via zerodha coin

Debt funds don’t have lock-in and only use for less than 3 year goals, avoid long term funds because of credit risk & interest rate change risk. Good categories for 1-3+ years are Banking & PSUs Funds, Corporate Bond Funds, Short Duration Funds. You only need:

Liquid (short term < 1yr or don’t know exactly when you’ll need it)
FD (1-3 yr and you know when you’ll need money); if not then compare returns (YTM) with ultra short duration or low duration funds
Banking & PSU, Corporate Bond (Mid term 3-5 years)
Short Duration Funds (long term home downpayment or retirement) Check excel sheet for return comparison. Tax is levied on FD every year, for debt funds it’s on withdrawal. Debt funds have indexation benefit after 3 years

Interest rate set by RBI or Federal to lend money to banks which will influence rate of loan to companies & savings rate given to depositors is inversely proportional to bond price when sold or traded for earlier liquidy. Eg: Interest or Loan giving rate goes for 8% to 12%, bond prices from from $100 to $80 because company prefer saving in bank instead of taking bond

Selecting Liquid Funds

Go to tickertape MF Screener & select liquid fund
Set the AUM filter to min- 4,000 Crores, the more the better as they get better rates
Add SEBI risk category filter and select only Low and Moderately low
Add column of Average YTM, CAGR 3Y
Sort by expense ratio low to high
Select the top 1-2 in terms of AUM and lowest expense ratio

Selecting Debt Funds

Go to tickertape MF screener and select the type of debt fund (Banking & PSU, Corporate Bond, Short Duration, any 1)
Set AUM filter to min 4000 Crores
Add filter for SEBI Risk category, Volatility and Average YTM
Filter funds for Low and Moderately low SEBI Risk Category
Extract the list into my excel model and Enter fund managers’ tenure (experience in that fund) and Modified duration from Morningstar
Adjust the weightages and select the top ranked 1-2 funds

No need to quit debt funds, but do only if fluctuating volatility too much because debt funds is for balance and safety

REITs Brookfield > Mindspace > Embassy (in order of best) are listed REITs. Capital Mind website has research done on REITs. Pick only 2. If skipped then put in debt.

Gold Invest in SGBs (2.5% p.a. + appreciation) or Gold MF for liquidity but no 2.5% Go to tickertape, in category, search Gold (comes in FoF). No need to look at returns & volatitlity as they’re investing in same. Put AUM filter to min 500 and low expense ratio. ETF are cheaper because Gold Funds too invest in ETF

Insurance

Health Insurance

Mediclaim policies which cover only hospitalisation expenses without any add-ons. Usually small covers are offered upto say 5 lacs. A policyholder can file multiple claims until the total amount insured amount is exhausted. Hospitalization is necessary to avail it. So avoid them.

Comprehensive health insurance plans provide cover for hospitalization expenses plus pre/post hospitalization costs. Add-ons are available. An insured can file claims as long as his/her sum insured isn’t exhausted. But when claims related to critical illness/ accidental disability cover arises, the assured sum is paid in a lump sum. Such claims can only be made once during the entire policy tenure.

Types:

Individual health insurance.
Family Floater plan calculates premium based on age of oldest member. Make sure it has restoration benefit.
Top-up and Super top-up plans: It’ll pay anything above the deductible amt. Eg: 10L amt and hospital bill is 15L, it’ll pay 15L. If bill is 3L it’ll pay nothing. So they’re cheap. Buy this as combination with individual health insurance is economical than buying 30L health insurance. There’s no NCB in this so go with full cover if you can. Topup considers individual claims amt, super topup considers total of all bill in year
ULHP (Unit Linked Health Plan)
1 Cr Cover: New type and costs 70-100% more (double) of normal 30L policy

Imp terms:

No room-rent limit or Room rent waiver (All Must Have)
No co-pay (exception for senior citizen as it becomes expensive) (All Must Have)
Restoration Benefit (All Must Have)
No Disesase-wise sub-limits (All Must Have)
Waiting Period: claims for 2 kinds (specific diseases which are usually frequent, prexisting diseases)
Inflation cover: Preferred but not madatory because of NCB
Maternity cover: Don’t consider because too high cost by 50-60%. (Maybe if planning after 2-3 years but avoid)
Domiciliary hospitalization: When you cannot be treated in hospital and treated at home (For senior citizens)
Day care treatment: Covers only when you spend at least 24 hours in hospital. But this addon also covers less than that many hours like for cataract (Preferred but not mandatory)
No-claim bonus: Discount offered or increase in cover if you don’t make any claims (All Must Have)
Hospital cash: Covers daily expenses during hospital stay which are not covered otherwise like buying medicine, ors, etc (Not Mandatory)
OPD Care: OPD means visits to doctor for consulation (Not Mandatory)
Consumables cover: For equipments used by doctors like PPE kits, gloves, etc. (Not Mandatory)
Air Ambulance Cover: Emergency ambulance services (Those with serious illnesses)
AYUSH: Alternative therapies like Ayurveda, Yoga, Unani, Siddha, Homeopathy (Those who prefer extensive alternative treatments)

Exclusions:

Cosmetic surgeries: Except accident cases, surgeries or procedures done to improve looks and appearances are excluded.
Suicide attempt or self harm
Alternative therapies like acupressure, naturopathy etc
Diagnostic expenses like MRI, Dexa scan because they’re done everytime you visit
Dental, hearing and vision treatments not requiring hospital stay
Congenital diseases, war injuries, HIV etc

Minimum covers you should have for individual, family floater, senior citizens in order:

Zone 1: Delhi/NCR, Mumbai including (including Navi Mumbai, Thane and Kalyan) ~10-15 lac ~10-20 lac ~20-30 lac
Zone 2: Hyderabad, Secunderabad, Bangalore, Kolkata, Ahmedabad, Vadodara, Chennai, Pune and Surat. ~5-10 lac ~8-15 lac ~15-20 lac
Zone 3: rest of India (Eg Kanpur/Trichi) ~3-5 lac ~7 lac ~10 lac

Better to have higher cover as it’s easier to decrease cover by paying less than to increase it because then you have to go through the wating period, etc.

Buying Tips:

Visit any aggregator site of your choice: say policybazaar.com, Insurance Dekho (good for health bcoz of UI), coverfox.com, turtlemint.com etc
Choose health insurance option. Enter your personal details like age, gender, city and contact details
Add the required filters such as cover amount and features required
Once you shortlist 2/3 policies, review the policies in detail on JoinDitto website
Also check IRDA website for claims settlement ratio and incurred claims ratio (should be between 60 – 90). Search IRDA
Buy directly from the company or Ditto

Open IRDA Annual report by searching and search for above ratio. Beshak org provide consultation if you want to purchase something specific

Senior citizen (parents) insurance It’s for people above age 60. Some policies have entry age limit where they won’t accept people above 60 or have many conditions to be accepted, etc.

Order of Priority for Senior citizen’s Health Insurance: Priority 1: Individual health insurance policy: Niva Bupa Health Companion, Aditya Birla Health Active Sure Diamond, ICICI Lombard Health Shield, Care Insurance Priority 2: Senior Citizen Health Insurance: Niva Bupa Senior First, Care Insurance Care Senior, Star Health Senior Citizen Red Carpet. These ones have more restrictions compared to individual plans Priority 3: Group Health Insurance from banks: Punjab National Bank, Bank of India

Opt for deductible or having co pay clause as it’ll reduce premium the most

If both parents are senior citizen, opt for floater or else separate

Porting\ Insurance You don’t need to restart waiting period, no claim bonus is carried forward. Can be ported if you shift location so nearby hospitals are connected to your insurance or they denied enhanced cover.

Port can only be done at time of renewal or minimum 45 & max 90 days before so wait before buying new one. They may accept or reject and it should be similar type policy. Search your new insurance company porting on Google to get the form. Agents don’t get commission so they may discourage it. Don’t port if above 50 or have pre existing disease as they’d need re-checkup and it increases premium & waiting period

Life Insurance

Take when other’s are dependent or will be depending on you in a few years. Once you achieve FIRE money, no need to continue paying insurance as it should only be till you achieve financial independence

Types:

Term policies (must): pays on death of insured
Defined benefit policies: critical illness (highly recommended but expensive if bought separately instead of rider, imp if strong family history of this), personal accident and disability (frequent traveller or works in hazardous environments. take separately if high chances). Eg: cancer, heart attack
Avoid these: ULIP (insurance + investment), Endowment (pay on death or till maturity), whole life (till 100), group life, child plans, retirement plans (gives pension)

Riders (Addons):

Critical illness rider (Recommended and maximize amount because you won’t work if this happens)
Terminal illness: Something that can be fatal or have high chance of dying
Accidental death and disability benefit (gives lump sum) (if working in hazardous environment)
Income benefit term rider (Recommended but not mandatory): in case of disability but regular income
Waiver of permium rider (Recommended): if disability makes impossible to pay, policy still continues to provide cover
Return of premium rider (nobody): If survives after policy term, all premiums excl. taxes is returned to policy holder (but expensive so avoid)
Limited pay (people with unstable income): Pay higher over shorter period instead of whole term (avoid because of opportunity cost, but recommended if in unstable income)
Increasing / Life stage benefit (Recommended but not mandatory) are variations that help change cover, useful if buying late. Eg: can increase cover at same rate as before if achieving fire later so doing lower amount at the time, can decrease if kids become independent

Exclusions: Death by Suicide, under influence of alcohol or drug, war, adventure or life threatening activities not in most policies, criminal activities, private aviation (chartered), maternity complications, due to pre existing illness, incorrect information or hiding habits, natural disasters, murdered by nominee

Buying Guide:

Step-1 Do a full body medical check-up
Step-2 Calculate how much coverage you require? FIRE Number (of people dependent on you so excludes your portion if no critical illness) + Major Expenses (marriage, kids edcation) + Major Liabilities (Pending Loans) – Liquid Net Worth (Everything excluding house & jewelry).
Step-3 Use Join Ditto tool: app.joinditto in
Step-4 Add the required riders or add-ons
Step-5 Shortlist and schedule call with an insurance expert

Have cover until age you’ll financially retire and not for entire life Ratios doesn’t matter because India’s rule is that companies can’t reject policy after 3 years apart from fraud so go with cheapest option Go with regular pay instead of paying all amt in 10 years or approx because you can invest difference somewhere else. Use only if uncertain income.

Mistakes

Not being careful about the disclosures made to the insurer (instead do full body checkup & be honest)
Just buying the cheapest policy that may not have riders
Not having accurate estimate of their coverage needs- being underinsured
Not keeping family in the loop about the cover. Open e insurance account with NSDL, add nominees so get notification
Not considering riders
Buying a policy with too long/short tenure
Not buying a term plan under married women’s property act wherever necessary. Money goes directly to family instead of them taking a cut first. You can’t change it later even in case of divorce

Getting out of policies

Get surrender value (% of premium amount paid that you get back & policy get’s cancelled). SV value comes after 2 yr for <10 yr policy or 3 yr for more than 10. If maturity 9+ yrs away, get SV, if less yr, then paid up
Or ask how many years until it becomes paid up (no further premiums but cover will reduce). Use if SV is too low like 30%
Get our of ULIP after 5 yr, & make sure life cover is 10 times annual premium to receive tax free surrender benefits

Car Insurance

Show price comparison of policy bazaar to dealer with same addon, so tell him to reduce cost or will buy online. Preferrably buy from dealer as you can call them and they’ll talk to insurance company so negotiate. Even at renewal, negotiate. Or buy it from insurance company’s office directly

Types: Third Party (Covers other’s loss), Own Damage, Comprehensive (Both)

Default Comprehensive Covers

Theft of your car and accidents
Damages caused to your car due to natural calamities like cyclones, floods and earthquakes etc.
Damages caused to your car due to man made hazards like fires or explosions
Any damages caused to your car during transit(shipping from one place to another)
No Claim Bonus (gives discount on next premium)

Addon Covers

Zero Depreciation Cover / Bumper to Bumper Cover: The entire claim amount is paid by the insurer without considering (deducting) the depreciation on the value of the car (each part depreciates at different rate). Not available for cars older than 5 years
Return to Invoice Cover: This add-on allows you to receive compensation equal to the car’s invoice value. The claim applies when a car is stolen or when it is beyond repair. Not available for cars older than 3 years.
Engine Protection Cover: This add-on covers the costs of damages to engine that occurred due to its malfunction, lubricating oil leakage, ingression of water, hydrostatic lock etc. Not available for cars older than 5 years. Eg: due to flood
Loss of Personal Belongings Cove (not needed): This add-on covers for any loss or damage to your personal possessions kept inside the car.
Roadside Assistance Cover (default in long distance cars but not needed separately): This cover offers the much needed relief to a car owner if his vehicle breaks down or has a mechanical failure on the road.
Daily Allowance Cover (avoid): This cover provides a travel allowance to cover day to day expenses in case the insured car is getting repaired at the network garage of the car insurance company.
Consumables Cover (not needed): It provides coverage for all the consumable items used in insured car during repairs like nut & bolts, lubricants, grease, washers, engine oil, brake oil, screw, bearing etc. Not available for cars older than 5 years.
Tyre Protect Cover (avoid): It covers the expenses incurred towards the repair or the replacement of the tyres. It ensures that the insurance company pays for tyre damages like punctures, tyre cut etc.
Key Replacement Cover (useful): It covers the cost of repairing the lock set of the car in case the keys have been lost, stolen or damaged. In expensive cars, locks need to be replaced which can be expensive. If you create duplicate key because original stolen, they won’t compensate in case of theft of car unless you change the lock as they’ll ask for both keys as you didn’t change lock even if key stolen
NCB Protection: You’ll get ncb discount even if claim made but very few offer this

Third party insurance addon

Paid driver cover: Pays your driver
Owner driver personal accident cover: medical expenses. not mandatory if in life insurance & not mandatory for every car

Cover doesn’t include

Any damage happening when the car is being driven by a person under the influence of alcohol or drugs.
Any damage happening if the car was being used for illegal activities like drug peddling, traffic violations etc.
Any damage happening when the car is being by a person without a valid driving licence.
Any damage due to war, nuclear attack etc.

Conditions & Additional covers

Accident prone area (any metro city): Zero Dep, Return to invoice (both for every type)
Theft prone area: Above & Key replacement c\over
Disaster prone: Engine protection
Old/Second hand car: Roadside accidental cover, Engine protection cover

NCB

You can switch to a different insurance company without losing No Claim Bonus(NCB).
You can transfer NCB from old car to new car in case you are planning to purchase a new car.
You will lose the NCB if you fail to renew the policy within 90 days of it expiring.
You are eligible for an NCB only if you have comprehensive car insurance policy.
Upon cancellation, you will receive an NCB retention letter from your current insurer. Present that letter to the new car’s insurer to avail the bonus.

The current insurer will ask for the following documents to issue the NCB retention letter (call them):

If same car but changing insurance: Request letter for policy cancellation, Original policy copy and certificate of insurance (also called Form 51)
If selling your old car: Form 29 (notice of transfer of ownership of a motor vehicle), Form 30 (application for intimation and transfer of ownership of a motor vehicle), Photocopy of registration certificate book with nange of the new owner, Proof of delivery of car to the new owner
You can apply for an NCB retention letter within 90 days from the date of sale of the old car. The retention letter is valid for three years.
It is not necessary to buy car insurance from the same insurer that provided you with an NCB transfer certificate. You can use this certificate as proof to buy car insurance from any insurance provider.

How to buy Insurance are sold as 3 year thrid party cover (premium fixed by gov) + 1 year own damage cover (needs renewal every year) Do it atleast 2 months before own damage policy expiring

NCB discount can be set & it’ll ask for retention letter
Put recommended IDV Cover
Add addons, mention if any electrical accessories added, look at deductible
Incurred claims ratio to be between 60-90, (IRDAI site, high preferred but not out of range), claim settlement ratio
Now check their cashless garages number in city (means insurance company directly pays instead you later claiming)
Check terms & conditions, choose least costing

Take care of deductibles. Higher the deductible, lower is the premium. There are two types of deductibles in Car Insurance Policy:

Compulsory Deductible- This deductible is compulsory. As per IRDAI, the compulsory deductible cannot exceed Rs. 1000 for a car below 1500 cc and Rs. 2000 if the car exceeds 1500 cc.
Voluntary deductible(VD)- A voluntary deductible is chosen by you. A higher voluntary deductible means a lower premium amount. But it also means that you will have to pay more yourself in case of any damage to your car.
1. If you own a premium car and live in accident prone area then you should not take VD.
2. If you live in a accident prone city like Ghaziabad or Mumbai then you should select a lower VD.
3. If you are a reckless driver then you should not opt for a VD. You should opt for a VD only if you are sure of your driving skills or for your parent’s car who drive slow.
4. If your vehicle is old then opt for a lower VD.

Mistakes

Insurer will not provide coverage in case your car was damaged while being used for commercial purposes unless the policy covers commercial vehicles.
Renew your insurance policy timely. In case any damage happens post the expiry and before the next renewal, the loss won’t be covered.
If you are switching from one car insurance policy to other, you must purchase the new insurance policy before cancelling the existing policy otherwise your car will remain uninsured during the interim period.
If you have added any accessories or an external bi-fuel kit in your car, you need to inform the insurer immediately otherwise your claim will be rejected in case of an accident.
Inform the insurer before getting the car repaired if you intend to raise a reimbursement claim. Don’t get it repaired without informing the insurer otherwise you will not get the claim.
If the car gets damaged when you do not have valid documents like insurance policy, driving licence, PUC(Pollution Under Control) certificate and RC(Registration Certificate) of car then your claim can get rejected.
Do not provide any incorrect information. If the insurer finds the information is misleading, your claim will be rejected.
Inform the insurer about the accident within 24-48 hours of it happening otherwise the claim may not be approved.

Reducing premium

Modifications that increase the chance of theft, such as wheels, car interiors or paintwork, should be avoided. Similarly, any change in engine or mechanics to enhance power or increase acceleration, leads to an increase in risk and a rise in premium
If your car suffers minor damage like scratches or small dents, you should avoid making a claim because you will not be eligible for a no-claim bonus (NCB) at the next renewal.
Install anti-theft devices like gear locks, anti-theft alarms, steering locks from egistered manufacturers o get a discount on the premium. The higher the safety, lower is the premium.
If you don’t pay your premium on time, the insurer sees it as a risk and can raise your premium amount.
When you have multiple insurance policies (in any category) with the same insurance company and you approach the same company for car insuran policy, they offer a lower car insurance premium as a loyalty award.

Tax Planning Basics & Advance

Use GST, many have business apps like Amazon, makemytrip, hotels booking. Can’t claim on personal use goods, food, health services, membership fees, non work travel expense, works contract, composition scheme If want to claim ITC on rent, need to pay gst directly to govt and have gst. Ask CA if you need to pay gst on your rent

Direct income: salary, rental income, business or self employed, capital gains, other

Rebate is not applicable to capital gains. Eg: income 3L, 10k ltcg after reducing 1L, you still need to pay 10k even if total income below 5L. No tax only when income & capital gains below 2.5L
There’s 30% standard deduction (SD) on rental income, 80C upto 1.5L
Can transfer amount to parents and invest from their account (seniors have 3L exemption limit) and transfering money isn’t taxable
Need to pay advance tax if tax is more than 10k for the year. Tell CA when you sell MF at end of month and need to pay advance tax
Can’t claim HRA & interest on emi exemption if both house in same city, but applicable in big cities like mumbai (~25 km distance)
LTA can be claimed twice in 4 years for domestic travel. You’ll get that income tax free at end of year. If you haven’t claimed 2 in last 4 years, can claim 1 extra in 1st year of next 4 year period
Yearly bonus (on promotion) is given in next FY (arrears) that can increase tax slab. Claim relief by telling CA to fill form 10E
Gratuity paid to employees servicing more than 5 years, can be less also but rules change about exemption. Ask CA to get relief on gratuity
Leave encashment: get’s amount for unutilized leaves, varies based on company policy. Can get relief for all types of arrears, or exemption on retirement or resignation.

Deductions

80C: Specified investments and expenses – Maximum up to INR 1,50,000
80CCD(2): Employers contribution to NPS account – Maximum up to 10% of salary.
80CCD(1B): Additional contribution to NPS – Maximum up to INR 50,000
80D: Medical Insurance (not a senior citizen) – INR 25,000; Medical Insurance (senior citizen) – INR 50,000. Includes deduction of 5k for preventive health checkup.
80G: Donations – 50% of the donation made if made to a 12A registered body; 100% of the donations made if made to specified organizations
80GG: For rent paid when HRA is not received from employer – least of the following: Rent paid minus 10% of Total Income; INR 5,000 per month; 25% of total Income
80TTA: Interest income from savings account – Maximum up to INR 10,000. Seniors don’t qualify
80TTB: Exemption of interest from banks, post office, etc. Applicable only to senior citizens – Maximum up to INR 50,000. (Invest in FD in seniors name)
80E: Interest on education loan – no limit (Don’t prepay secured education loan. For international loan, add parent as co-borrower to get deduction)
80EEB Interest on Electric Vehicle loan – Maximum up to INR 1,50,000 (before 31st March 2023 or check if updated)
Standard Deduction: 50k for salaried employees
Daily allowance/ Conveyance/ Travel/ Research. Can ask employer to sponsor education or structure it in pay slip

Investments covered under 80C: PPF (debt), EPF, ELSS, Sukanya smriddhi yojana, national saving certificate, Senior citizen saving scheme (quarterly returns), ULIP, tax saving FD, Infrastructure bonds, etc.

Expenses covered under 80C: Life insurance premiums, home loan principal repayment, stamp duty & registration for purchase of property, etc.

Maximizing Quantify your contribution to PF, check qualifying expenses, if 1.5L not crossed then only invest If employer makes contribution to NPS, you can avail further deduction but due to lock in till 60, not recommended unless 30% tax bracket (10L+ yearly)

Tools and Helpful Sites for Investing

Screeners Tickertape https://www.tickertape.in/ Screener https://www.screener.in/ Tijori finance https://www.tijorifinance.com/timeline/all (shows market share of each company, segment and product breakup with sources) Trendlyne https://trendlyne.com/stock-screeners (gives research report with buy sell signal)

Research reports, brokerage & conference calls Trendlyne site, and YT channel Screener (call con reports and recording)

Chart Reading on

Trading view https://in.tradingview.com/ (On search of stock or fund, you see others charts as well)
Chartinc https://chartink.com/ (to see stock near breakout of previous high)

Reading US stocks
Investing https://investing.com/ (has economic calendar showing major events that have impact)
Google finance https://www.google.com/finance/ (comparison, news)

Forums
https://forum.valuepickr.com/ (read about company reviews and people’s analysis, get ideas of stocks by viewing top or latest, search smallcap or anything related)

Some people to follow: Vikas Sinha
https://forum.valuepickr.com/u/vikas_sinha/summary
Hitesh https://forum.valuepickr.com/u/hitesh2710/summary

News
For international, https://investing.com/
Bloomberg https://www.bloomberg.com/asia (for Asia and other)
https://www.moneycontrol.com https://economictimes.com/ (latest and top news only for stock) https://www.livemint.com/

Connecting dots

Look at moneycontrol and livemint to see what’s happening in market Create screener to discover companies Use trendlyne and valuepickr to read in detail of they pass screener

Latesh Bayad