All Posts by Himanshu Sheth

|In: Finance|Last Updated: | 0 Comments

Have you wondered what’s so special about Systematic Investment Plans (SIP)? One of the main reasons for recommending the SIP strategy of investment is to maximize your profits. Ask any mutual funds‘ expert how to achieve a long-term financial goal and her/his answer would be, “Start an SIP investment in an equity-based mutual fund”. But before we get to that, let’s understand what an SIP is.

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What is SIP?

An SIP is a mode of investment in mutual fund schemes. It allows individuals to periodically invest small amounts over a specific period. The frequency of the investment can be daily, weekly, monthly, quarterly, or annually.

The popularity of investing via SIP in mutual funds has gone up in the past few years and several individuals have discovered the charm of investing in mutual funds via SIPs. Another factor that led to the popularity of SIPs and mutual funds is AMFI’s [Association of Mutual Funds in India] ‘Mutual Fund Sahi Hai’ campaign.

The SIP methodology aids you to stagger your investments in equity mutual fund schemes over a specific period. Mutual fund experts believe that staggering your investments is a better way to invest in mutual funds as SIPs help average out purchase costs and maximize profits. This concept is known as rupee cost averaging. It allows you to purchase more units of a mutual fund when the markets are low and vice versa. What’s more, SIPs are a convenient tool for salaried individuals to invest in mutual funds regularly. Here’s a quick guide on how to invest in SIP.

You can engage in an SIP mutual fund investment with a pre-fixed amount regularly, depending on your convenience, through post-dated cheques or electronic transfers. For this, you have to fill up an SIP mandate form and an application form on which you need to indicate a date of choice on which the SIP should be debited. Subsequent SIPs will be automatically debited courtesy of the standing instructions you provide with this application. You can submit these forms to the office of the Investor Service Centre/Mutual Fund or the closest service centre of the Registrar & Transfer Agent.

You also need to specify the amount that will be debited from your account and credited to the mutual fund scheme periodically. You can start investing with amounts as low as Rs. 500 per month. You can use a SIP Calculator to calculate the returns you would earn on your SIP investments and also tells you how much you would need to invest every month to earn a target corpus.

Why should you be a part of the mutual fund SIP revolution?

SIP investment helps inculcate financial discipline into your life. It also aids you to invest regularly without wrestling with market movements, research, etc.

Another benefit of investing via SIP is the power of compounding. When you regularly invest for a long duration, you get to earn returns on the returns earned by your investments, i.e. your money starts to compound. This helps build a large corpus over time that ultimately helps you achieve your long-term financial goals.

Choosing to start an SIP is the first step towards financial independence and the sooner you start, the more beneficial it would turn out for you.

|In: Finance|Last Updated: | 0 Comments

Two-wheeler insurance cover protects your bike by compensating you in case of partial or total damage. However, the amount of protection and the extent of the coverage completely depends on the type of policy chosen by a buyer.

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In a third-party policy, only the property or person of the third-party is covered. This comes as a mandatory requirement to all bike owners in India. The second type of cover is a comprehensive two wheeler insurance policy and it includes compensation for own damage as well as third-party damage.

Several factors are considered to calculate the premium amount, such as:

  • The model of bike
  • The modifications and specifications
  • The type of applied motor insurance
  • The age of the bike

In simple words, a two-wheeler loses its value as it ages due to things like wear and tear, etc. This process is known as depreciation. When filing claims, you don’t receive the complete value of your bike due to depreciation. Therefore, people lack interest in filing insurance claims even on valid grounds.

A comprehensive policy comes with a unique option of add-ons. It is an extended cover applied to strengthen the existing basic cover and provide a sense of financial security. You can even opt for these while purchasing motor insurance online. One such additional cover would be the Zero Depreciation add-on. If you opt for this cover, the depreciation amount won’t be considered, i.e. there will be no deduction and you will receive the original value of your bike.

Advantages of a Zero Depreciation cover

  • A Zero Depreciation cover enhances and adds more value to your existing comprehensive policy.
  • It gives an assured sense of security and mental satisfaction knowing that your two-wheeler is secured.
  • No out-of-pocket expenses.
  • Makes the basic insurance policy stronger and more efficient.
  • When settling claims for the vehicle parts that are insured, the insurer does not consider depreciation.

More insight on Zero Depreciation cover

  • A Zero Depreciation cover can be bought while buying a new insurance policy or at the time of renewal.
  • The coverage applies to a wide range of materials, including fiberglass, plastic, rubber, and nylon.
  • The cover can only be purchased for new bikes or bikes that are up to two-years-old.
  • The number of claims you can make on this cover completely depends on the insurance company you’re opting.
  • Damages resulting from normal wear and tear won’t be included in the Zero Depreciation cover.
  • This cover can be applied to bikes with modifications.
  • Damages from mechanical breakdowns are not included in the cover.

To be able to make a motor insurance claim, make sure to renew the Zero Depreciation cover annually, provided your vehicle is eligible for this cover, and enjoy its benefits. For people living in accident-prone areas or people with expensive bikes, this cover is a must-have. If you don’t already have it, opt for it during renewal or get ready to face the effects of depreciation.

|In: Books|Last Updated: | 0 Comments

There is one thing which is common between startups such as Housing, Snapdeal, and FreeCharge. Jason Kothari, referred as business turnaround leader was the former CEO of Housing & FreeCharge and former CSIO [Chief Strategy and Investment Officer] of Snapdeal. He started his career as the co-founder and CEO of Valiant Entertainment, a US based superhero entertainment company.

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Majority of us know about the founders of these startups but not many might know that Jason Kothari played a pivotal role in the turnaround of these companies when they were facing the the most turbulent times. He is also the Executive Producer of the Bloodshot [Sony Pictures] starring Vin Diesel.

We had the opportunity to read the book Irrationally Passionate: My Turnaround from Rebel to Entrepreneur by Jason Kothari. The book reveals the inside story of how a rebel, train-wreck kid transformed himself into a successful young entrepreneur and business leader who became one of the top ten paid executives in India while in his 30s. Irrationally Passionate is a highly personal, authentic, open, and complete account of a young entrepreneur’s life.

About the Author

Jason Kothari went on to transform distressed internet icons Housing, FreeCharge, and Snapdeal, helping them save billions of dollars in value. He is also served as the advisor for giants like Softbank and real-estate developer Emaar which has invested billions of dollars in India. You can find more about Jason Kothari from his LinkedIn profile.

Detailed Review

Before I start off with the detailed review, one thing which I have to admit is that this book was in my bucket list since this blog has been a small [yet a crucial role] by interacting with startup founders about their startups. Coming back to the review, the book starts with Jason recollecting his childhood events where he tried his negotiation skills with a seller and managed to get a chess board for Rs. 30. This is what made Jason realize that he had the persistence and gut to turn things around in his favor.

He gets the first taste of entrepreneurship at the age of 19 where he is raising funds for a company named Valiant Entertainment which he has followed since his early years. The author also touches upon his childhood life in Hong Kong and later in the US.  There are interesting learnings from the game of baseball and how Jason went on the learn the sport, inspite of facing several hurdles. As mentioned, Functioning as a unit made him realize the importance of being a selfless player and putting the team first.

It also touches upon the passion that Jason Kothari had for entrepreneurship and how he hung on to his passion. He also talks about the importance of making mistakes and not repeating the same by taking valuable lessons from those mistakes. Te most interesting part of the book is the section where he talks about the turnaround of Valiant Entertainment from bankruptcy and bringing it back to life. This is when he was the college student at Wharton and arranged funds from family & friends. Few years later, he transformed Valiant entertainment into world’s third largest superhero entertainment company which was later sold for $1oo million.

We particularly liked the chapter titled Not every seed is meant to bloom a forest which talks about the transformation of Snapdeal to Snapdeal 2.0, the turn-around of events, interaction with Snapdeal investors, transformation of FreeCharge, and more. It is a must-read for anyone who is slightly interested in entrepreneurship and startups.

Few excerpts from the book:

Sometimes, the most important decision an entrepreneur makes is knowing when to pull the plug. You have to understand what a sunk cost is and not throw good money after bad. These decisions are often among the most agonizing the entrepreneur encounters. As a battle-hardened business-people, we have conditioned ourselves to never quit, never accept defeat.

That’s what so deceiving about disinvestments or the closing of business lines or geographies – what on the surface may appear to be a ‘loss’ may actually be the key that unlocks the door to strategic wins.

There is emphasis on the sale of FreeCharge for shaping up Snapdeal 2.0. There are chapters that highlight about his role in Housing.com where he took over as the CEO at a very rocky time. He cites the importance of focusing on important features when building a product and why entrepreneurs [and key executives] should take right product decisions when building a startup. He also speaks about the series of events and interactions that led to the closure of renting module in Housing so that there is concentrated focus on the buying-selling module. He took the decision even when employees and other executives were of the firm belief that renting module was key to the company.

We liked the writing style and the usage of simple language throughout the book. It is around 230 pages long and consists of 11 chapters in total. We specifically liked the sections where he talks about his career as a turn-around specialist in prominent Indian startups. As entrepreneurship is hard, he also talks about the importance of meditation in controlling emotions and reducing stress & anxiety.

Closing Thoughts

It would have been better if more details were added about how Jason Kothari dealt with decision differences with other leaders within the company, internal politics being played, and more. This would have been an icing on the cake for this otherwise wonderful read!

You can purchase Irrationally Passionate: My Turnaround from Rebel to Entrepreneur by Jason Kothari by clicking on the link below:

|In: Finance|Last Updated: | 0 Comments

Add-on covers in two-wheeler and car insurance are a type of extension purchased over the basic comprehensive motor insurance policy to strengthen it. It should be noted with concern that even the basic comprehensive insurance plans for two- or four-wheelers have quite some limitations.

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An add-on cover, thus, provides customized protection that is offered upon agreement with the motor insurance providers.

Different types of add-on covers that you can choose from

Zero Depreciation

Zero Depreciation/Depreciation Shield is the cover provided against deductions of wear and tear in the case of an insurance claim. Through this, the net value of the claimed amount is higher as compared to the deducted amount for depreciation. Nonetheless, buying a Zero Depreciation add-on cover for you car insurance policy gets you full compensation for the cost of repair and replacement from the insurer in the case of an accident. Note that tyres and batteries are not covered under the Zero Depreciation cover.

24*7 Spot Assistance

This cover provides quick response in terms of help in the case of a mechanical or technical breakdown or even an accident. Moreover, it is a package that contains a variety of services that you receive from the site of the event.

Following are some of its features:

  • You get minor repairs of the covered vehicle on the site
  • Assistance in battery jump-starting
  • Emergency fuel delivery
  • Emptying the fuel tank and reservation of the fuel safely when the need be
  • Tyre refitting
  • Towing the vehicle from the site to the garage.

Engine Protection cover

This is a customized protection plan for the engine. This covers a person from the complete failure of the gearbox or the engine that may result from natural causes.

Its extent in coverage includes

  • The gearbox and the engine are repaired when need be and replaced when damaged beyond repair
  • Labour costs for repair and maintenance
  • Engine maintaining charges
  • Replacement of minor parts

Consumables Expense cover

Expenses that are incurred as a result of replacing consumables won’t be covered under a regular motor insurance policy. The consumable parts include bolts, nuts, oil and lubricants, coolants, grease, gaskets, among others.

Key & Lock Replacement cover

In case you lose your vehicle keys, you receive a fixed amount or actuals incurred for the cost of replacing it. If you are one of those people who tend to lose or misplace their keys, then this cover is a must-have for you.

A very important point to note would be that add-on covers cannot be purchased with a third-party policy. Only if you have opted for a comprehensive two wheeler insurance or car policy can you buy these extra covers and customize your existing plan as per your needs.

These additional covers can be purchased online while purchasing a new policy or during renewal. Remember that these add to your premium amount and so it is advised to first calculate the amount using an insurance premium calculator online and then go ahead before making a purchase. Remember, always avoid buying add-ons that you won’t require.

|In: Finance|Last Updated: | 0 Comments

Loan Against Property [LAP] is a product that has become a popular resort in times of financial need. It is offered by most leading financial companies and banks. The type of loan can be availed by providing your property as a collateral. Funds obtained through an LAP can be used for several purposes that includes business expenses, marriages and educational fees to name a few.

If you are looking to secure a loan against property, there are some aspects that you must be clear of. This will ensure that you do not face hassles during the process or disappointment with loan denial. Here are some things that you must be aware of before applying for a loan against property.

Eligibility check by banks – The bank you pick for your property mortgage loan will evaluate and verify your provided information before approval. Several aspects such as your property value, payment track record, credit history and more are closely checked. Depending on the findings, you loan eligibility may increase or reduce. Thus, ensure that you provide all the information to best of your knowledge and have all the required documents well in place.

LTV [Loan to Value] ratio – The LTV ration is decided based on the market value of the property that you provide as collateral. Typically, it may be limited to 40-80% of the market value of the property. Based on the same, you may be granted a loan that ranges anywhere from Rs. 10 lakhs to Rs. 5 Crore.

Flexible tenors – Financial companies offer flexible tenors on mortgage loan against property. Depending on other affecting factors, you can opt for a tenor of 1 to 15 years. A longer tenor makes for a viable option if you have a fixed budget plan while it will also ease your EMI payments.

Default can cause loss of property – You must be aware that not paying your EMIs on time or defaulting in anyway can lead to the risk of losing your property. This is the property that you provide as collateral. For this reason, you should avoid pushing your lending capacity. Over-leveraging yourself brings with it a higher chance of default. It is important to evaluate your budget and stick within your means for the monthly EMIs.

A loan against property is a great way to raise money. However, it is important to note the above factors and make an informed decision keeping in mind your repaying capabilities.

|In: Technology|Last Updated: | 0 Comments

Jio has announced eSIM service support on the recently launched Motorola Razr, which is the first-ever clam-shell style foldable display smartphone in the world.

Jio’s eSIM service allows Motorola Razr users to make and receive calls, use data and applications on the Jio network, without a physical SIM card. All Jio prepaid and postpaid customers can use the service at no additional cost. eSIM enables seamless device setup experience, without the need to insert or replace a physical SIM card.

Motorola Razr users on the Jio network will get

  • An additional 1-year of unlimited services absolutely free-of-cost
  • Double data benefits when recharging with the Jio Rs.4999/- annual plan [Get 350 + 350 GB High speed data without any daily capping + another year of unlimited voice and 700 GB data. This amounts to a saving of Rs. 14,997/-]

The iconic Motorola Razr is available in Black Noir colour variant for pre-booking, starting 16th March and will go on sale starting 2nd April 2020 at Reliance Digital at a remarkable price of Rs. 1,24,999

|In: startups|Last Updated: | 0 Comments

Western Digital, a leading worldwide data infrastructure provider, has announced Data Innovation Bazaar  2020 [DIB 2020] to support and encourage a vibrant entrepreneurial sector in India. Data Innovation Bazaar 2020 will closely engage with the ecosystem to promote data driven solutions for industries like healthcare, education, financial inclusion, energy & environment, agriculture, smart transportation and smart cities.

Since its inception in 2016, Startup India has now over 25,000 registered startups across the country [Source]. Breakthroughs in technology and accessible funding has ensured rapid growth in the startup ecosystem; however, in order to help further scale the industry and address key issues of national importance, Data Innovation Bazaar was conceptualized by Western Digital. The powerful and unique forum will showcase data led ideas that address the key society and national needs and transform the nation.

This edition of Data Innovation Bazaar is being hosted in partnership with Startup India and Invest India, and knowledge partners – Ministry of Electronics & Information Technology [MeitY], Department of Science & Technology – Ministry of Science & Technology [DST] and The Indus Entrepreneurs [TiE, Delhi].

Deepak Bagla, Managing Director & CEO, Invest India, said

We are pleased to continue our engagement and encourage India’s startup ecosystem to scale with Data Innovation Bazaar. With Western Digital’s vision of driving innovation with data, we can touch base with data-driven startups and encourage them to scale further.

Invest India has played a vital role in strengthening the ecosystem and these collaborations help achieve the next wave of innovation. Being one of the largest entrepreneurship platforms in India, our large community of stakeholders enables young entrepreneurs to network and cultivate their growth.

Siva Sivaram, President, Technology & Strategy, Western Digital, said,

At Western Digital, we are committed to driving innovation and transforming the data industry across the globe. Data lives in every aspect of our lives and it’s our imperative to help leverage it to build a better tomorrow. Through the second edition of Data Innovation Bazaar, we aim to encourage the startup ecosystem to help build data-centric solutions, and also play a role in the continued growth of India’s economy.

Supria Dhanda, Country Manager & Vice President, Western Digital India, said

Western Digital has long been at the forefront of game changing innovation and we believe in enabling those who dare to think big about the possibilities of data. Through the Data Innovation Bazaar initiative, we will empower the next wave of innovative startups that will address real-time challenges. Partnerships with the Government and leading Industry Bodies coupled with our own technology expertise will give these innovators the boost needed to take their powerful ideas to greater levels.

Data Innovation Bazaar 2020 is open to young entrepreneurs, startups, innovators and students. This edition will focus on three themes across sectors:

  • Data for Social Transformation for the healthcare, education, financial inclusion and energy & environment industry
  • Innovative Data-Intensive Commercial & Industrial Applications for the agriculture and logistics industry
  • Connected World Solutions with Data as the Fuel for smart cities, smart videos, connected homes & offices and next generation connected transportation

As part of Phase I of Data Innovation Bazaar 2020, the online application process is open until March 15, 2020 on the Startup India portal. 40 teams will be shortlisted for Phase II where they will showcase and present their ideas. All the shortlisted teams for Data Innovation Bazaar will be given TiE membership. The final winners will be given awards totalling up to Rs. 22 Lakhs.

For women entrepreneurs, there is a special prize money of Rs. 2 Lakhs. Additionally, the top 10 teams will be invited to Western Digital’s Innovation Boot Camp at the company’s Bengaluru campus to learn, scale and engage with experts in the industry, academia, investors and Western Digital leadership.

The previous edition of Data Innovation Bazaar focused on education, renewable energy, healthcare, transportation & mobility, and clean-tech for which over 520 applications were received. Western Digital’s partnership with Government of India’s – Startup India and Invest India, provides an opportunity for the development of an ecosystem for emerging entrepreneurs and brings together government alliances, businesses and innovators on a unique forum.

Learn more about Data Innovation Bazaar here.

|In: Technology|Last Updated: | 0 Comments

Amid the worsening situation due to COVID-19, Amdocs has taken a major step to allow all its employees to work from home, until the health situations are under control. To support the employees work remotely, Amdocs has launched a platform – Virtually Together website.

This will provide a wide range of solutions for employees, like:

  • Remote Work Solutions – Support development teams working from home and solutions for virtual teamwork, including remote management, advanced multi-participant video conferencing and real-time content sharing, as well as a variety of digital and collaborative learning platforms. managers training dedicated to addressing the challenges of managing employees at times of crisis and uncertainty.
  • Well-being Solutions – A variety of stress-reducing tools and content to deal with the unknown, including a series of videos and virtual lessons, as well as daily exercises that incorporate positive thinking, health tips, mindfulness, nutrition and ideas for raising the mood.
  • Solutions for Parents – A digital kit including activities for and with children, including remote programming classes, a variety of home experiments and artwork ideas, special meditation exercises, cooking, baking and other activities. These are not easy times: the need to stay home for long days, the change in routine, the need to cancel plans, maybe even miss important events, take their toll.

Staying away from family and friends can cause a feeling of loneliness. The solutions we have incorporated into Virtually Together can help our employees stay part of the corporate community while maintaining a work routine and a healthy body and mind.

Talking about this, Shucky Sheffer, Amdocs President & CEO, said

In view of the coronavirus outbreak…we are evaluating our guidelines to determine how to best adjust our working routines in the office to the new evolving reality, while keeping our mind on our employees’ health and safety and our business continuity.

For more details refer this link.