Converting your loosing hand to winning (whether at Job or business) ………………. By switching up to Equity Investments, did pay in this LIVE case study of our own client, a 27-year old!
Smart Money decisions ……………. investing money at hand in Equity!
What beautiful is: “Money Maths” …………. Converting losses to gain altogether …Just needs that mental frame and decision making!
THE CASE: 2020 Covid-time Salary Cutby 12% ……….. ………… Salary last year was at just at 88% ……………..
Employer Salary-hike target for 2021 & 22 ….. slashed by 6% each year ……………….…. own expenses shot up by 7%
………………… Total earning hit was at about 25% each year, making it 25% + 25% = 50% losses in 2 years!
Then in 2020 …… a smart one, pulled down by circumstances but not broken, was guided first-time to venture into better alternative investments (away from Fixed Deposits, PPF, etc) and that too – directly into EQUITY to cover up for the lost earnings. This happened only because there was a clear desire to cover some lost ground, with which this individual came to us. ……. Invested 50% of his reduced salaries (i.e. 44% of their take-home earnings) ……………….
44% Invested amount……………….. grew by an average 77% each year, in 2 years, by this day of 2022 …….
Effectively …………. Loss of approximately 5 Lacs was converted to 12.1 Lacs of gain! Technically from a -25% setback on 2 years’ earnings to a +41% Gain at the end, today!
Overall – the situation actually mimics a salary-hike of a whopping99.26% each year on the original salary of 2020 (which was so-called pandemic affected or reduced)!
Actual Table below.
Note: Actual figures just rounded off to nearest decimals.
Whether INR or $$ ………….. careful thought and courage to solve an on-hand financial problem is all it takes to make your status better! Equities are a good option if done well with the right advisory. Never fear it!
Equities still look pretty good for the next 1-2 years in India, owing to the massive gain India sees from a variety of global factors. And taking that route – would pay you in the short or long run!
Moral of the Story: Consciously find ways to grow your earnings/ savings! Seek professional advice. Take calculated bets. Never fear Equity!
Real Case study & compilation by: Rishabh Aggarwal (Investment Expert) BigRise Financial™
Budget 2021 Highlights for Indian-origin Worldwide (Fy 21-22)
1st Feb 2021, India witnessed a roaring Budget 2021, completely in favor of the Indian-origin, amidst the near-end of the coronavirus-hit economy. The Finance Minister of India presented startling financial facts across various industries with key themes around: Banking, Infrastructure, Housing, etc. The Union Budget 2021 was presented ‘digitally’ (paperless) for the first time. The framework of the budget was clearly to give a massive ‘push’ to the Indian economy.
Below are select financial insights & strategies that we could bring forward for Indian-origin (PIO, OCI, NRI & Expats) worldwide. Whether employed internationally or in business, these recommendations would help scale your wealth up, along with the 5 Trillion-dollar India growth story. Exactly, what the budget brings to you from its top-drawer.
1. Earnings of elderly/ Senior Citizens in your family, aged 75 years or above, in pensions or interest incomes, would have limited tax-deduction at the bank only. There is no need for them to file ITR (Income Tax Returns) in India, anymore.
Strategy: Within the family, India does not attract any gift-tax on any sum of money given to a family member. So, you could gift any sums of your earnings to a senior citizen in your family (in approved relations), cross-country. The interest earnings that an elder member receives on these sums, will only be taxed at a minimal level. If they invested the amount in Fixed Deposits (FDs) or in Pensions (including Life Insurance pension products), they yet wouldn’t be paying higher tax as that of yours. Plus, there won’t be any headache of filing taxes for seniors as the bank will have to maintain all the tax deductions & report out self. For an Indian-origin (PIO, OCI. NRI & Expats) with senior family members in his/ her direct family in India, it makes sense to transfer your tax-paid monies to elders’/ parents’ bank accounts (whether even managed by you) to take advantage of growing your corpus significantly, with limited tax outgo.
2. Foreign Direct Investments (FDI) in Insurance sectors raised from 49% to 74%. This is to help an Indian-origin (salaried or business owner) have the best investments in India through the insurance savings route.
Strategy: In a bid to attract global Indian-origin outside (PIO, OCI, NRI & Expats) to invest into life insurance products, saving plans or market-linked products in India, taking benefits of higher returns from Indian-collaborated world insurers, the finance ministry drastically raised the limits of FDI in budget 2021. This opens the gates for world insurers to come into India, and we clearly see a series of high quality – Coverage Plans (like: term life covers or term plans), guaranteed return products (returning 4% to 9% fixed per year), or even the booming market products (10% & higher up) getting launched. It gives an advantage to an Indian-origin now to invest directly in India, sitting outside.
We encourage you to avail your investment options, as now you can even invest in global currencies in India (or your home country currency), in most safety-oriented products. You could pay through your local home country bank or your NRE/ NRO (Non-Resident External or Non-Resident Ordinary) bank accounts, with any bank, as well. All your maturities & redemptions come back swiftly in your NRE bank account, making it easily repatriable later to the country of your choice. Further, investing in currency would get you a currency hedge on these products as long as you keep paying, as well as, waive-off the entire Goods & Services Tax (GST), which you don’t have to pay anymore. All this put together can really work towards growing your wealth exponentially, and keeping your costs low!
Budget 2021 Update: Investment in India gets GST waived-off, plus invest in your local currency
The budget also made the ‘Income Tax Appellate’ faceless (all digital) completely for Indian-origin (PIO, OCI, NRI & Expats) to benefit from, in terms of, faster and error-free filing and resolution of tax issues, online itself. This only aims at encouraging global Indian-origin to invest online in India. Note: There are no changes to existing Indian tax slabs, since the last financial year. The time period of re-opening of tax matters by the Income Tax department in India has now been reduced from 6 years to 3 years, in normal cases. Even this points to the fact that the Indian tax system is being simplified and now favors the global Indian-origin to send back investments in India, effortlessly. Indian ministries are strategically working with UAE & Japanese governments in areas of skill development of the workforce in India, in many areas.
Indian-origin people definitely have the flexibility to consult BigRise Financial™, an Investment Consulting organization that works in the space of working with Indian-origin (PIO) across the world including: OCI, NRI & Expats to get them innovative investment options in India. They bring world-class products and solutions from the world’s most renowned financial organizations and insurers to their clients.
To get COMPLIMENTARY advice on this situation, write into: nitin@bigrisefinance.com Or Drop a WhatsApp on: +91 98182 46300
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