Secure ₹5 Crore for Retirement with Ideal SIP

Many seek guidance on building a ₹5 crore retirement fund. Financial experts emphasize the crucial need to start saving early in your career for favorable investment returns. A year’s delay in retirement planning significantly impacts the corpus, highlighting the importance of early initiation to leverage the power of compounding.

1. Ideal SIP for ₹5 Crore if You’re in Your 20s

“Transforming the ₹5 crore dream into reality is practical through early and consistent SIPs, letting compounding work its magic. Initiating SIPs in your 20s with ₹8,000 per month in quality equity funds delivering 12% CAGR can make you a crorepati by 45 and amass ₹5 crore by 60,” states Ashish Aggarwal, Director, Acube Ventures.

Also Read: Secure ₹5 Crore for Retirement with Ideal SIP

2. Ideal SIP for ₹5 Crore if You’re in Your 30s

Starting in your 30s requires a higher monthly SIP of about ₹21,000 for the same impact. Extending investment horizons beyond 25 years, careful fund selection, and increasing contributions during earnings peaks are key. Making every rupee work hard from a young age achieves financial freedom and surpasses inflation by a considerable margin, emphasizes Ashish Aggarwal.

3. Ideal SIP for ₹5 Crore if You’re 35 Years Old

As per the Upstox SIP calculator, a 35-year-old needs to invest ₹27,000 per month for the next 25 years to build a ₹5 crore corpus by 60, assuming a 12% annual rate of return and monthly compounding. The invested amount of ₹81 lakh will grow to ₹5 crore 12 lakh 36 thousand 147.

Also Read: Secure ₹5 Crore for Retirement with Ideal SIP

4. Ideal SIP for ₹5 Crore if You’re 40 Years Old

For a 40-year-old aiming for ₹5 crore by 60, the Upstox SIP calculator suggests investing ₹33,000 per month for the next 20 years. Assuming a 15% annual return and monthly compounding, the invested amount of ₹79.2 lakh will grow to ₹5 crore 26 thousand 514.

To enhance retirement planning, diversify your investment portfolio, considering factors like risk tolerance, investment horizon, and financial goals. Regularly monitor investment performance, making necessary adjustments to stay aligned with objectives.

Also Read: Secure ₹5 Crore for Retirement with Ideal SIP

Disclaimer: The views and recommendations made above are those of individual analysts, and not of TheNewsay. We advise investors to check with certified experts before taking any investment decisions.

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Relief for Small Tax Demands Cleared: Income Tax 2024

How to Check Your Status?

To verify if your tax demand has been waived, follow these steps:

A. Visit: pending action > response to outstanding demand.

B. Look for the status of ‘extinguished demands’ in your case.

C. For queries, call 1800-309-0130.

D. Email your concerns to taxdemand@cpc.incometax.gov.in.

Also Read: Relief for Small Tax Demands Cleared

Withdrawal of Tax Demands

The government proposed to withdraw outstanding direct tax demands dating back years, causing anxiety to honest taxpayers.

“There are disputed tax demands some of them dating back to 1962 causing anxiety to the honest tax payers, so I propose to withdraw such outstanding direct tax demand up to ₹25,000 pertaining to the period up to FY 2009-10 and up to ₹10,000 up to 2010-11 to 2014-15,” said Sitharaman in the Budget speech. This is expected to benefit one crore tax payers, she added

In another development, Life Insurance Corporation of India announced receiving refund orders totaling ₹21,740.77 crore from the Income Tax Department for Assessment Years 2012-13 to 2019-20.

Also Read: Relief for Small Tax Demands Cleared

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Many subscribers have complained about delays in claim settlement on EPFO’s official handle. EPFO, the world’s largest social security organization with over 277 million accounts and a corpus of nearly ₹20 lakh crore, responded that it normally takes 20 days to settle a claim if all required documents are submitted.

EPFO Rejects One Third of Claims: Reports Indian Express

In the financial year 2022-23, out of 73.87 lakh claims for final PF settlement, 33.8% (24.93 lakh) were rejected, 46.66 lakh were settled, and 2.18 lakh remained as the closing balance, according to official data.

This rejection rate is significantly higher than in 2017-18 and 2018-19, which were around 13% and 18.2%, respectively. In 2019-20, the rejection rate was 24.1%, and in 2020-21, it rose to 30.8%. In 2021-22, the rejection rate for final settlement claims increased to 35.2%.

Also Read: EPFO Rejects One Third of Claims

Pressure on EPFO Officials

EPFO officials expressed concern about being under “extreme pressure” due to the return to manual annual account updates. The outdated IT system is blamed for delays in claim settlements beyond the stipulated 20-day timeframe.

Interest Announcement

On Feb 10, the Central Board Trustees of EPFO recommended an annual interest rate of 8.25% to be credited on EPF accumulations in members’ accounts for the financial year 2023-24. The Board also proposed a distribution of income of ₹1,07,000 crores to EPF members’ accounts on a total principal of around ₹13 lakh crores, marking the highest total income recommended for distribution so far.

Also Read: EPFO Rejects One Third of Claims

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These steps, along with advanced encryption, authentication technologies, second channel notifications, and risk-based transaction monitoring, aim to foster a secure and reliable digital payments ecosystem.

RBI uses various channels like digital, print, and audio-visual media through the “RBI Kehta Hai” program to create customer awareness. The central bank issues master directions on digital payment security controls to banks and regulated entities to safeguard customer data confidentiality and integrity.

Also Read: RBI Takes 8 Steps for Secure Digital Payments

Shikhar Aggarwal, Chairman of BLS E-Services, advises users not to share sensitive information like card details, passwords, PINs, OTPs, CVVs, UPI-PIN, and to avoid financial transactions on public Wi-Fi networks. Additionally, users are urged not to store crucial banking data on their mobiles, emails, electronic wallets, or purses.

RBI Takes 8 Steps for Secure Digital Payments: List

1. Specific OTPs required from a secondary channel for adding new payees.
2. New OTPs mandated for high-value transactions.
3. Managed time limits for OTPs to minimize misuse.
4. Use of digital signatures and Key-based Message Authentication Codes (KMAC) to prevent unauthorized transactions.
5. Customer education on rights, responsibilities, and risks under the Consumer Protection Act and internet banking.
6. Alternate notification method for transactions exceeding a specified value.
7. Guidance on responding to SSL or EV-SSL certificate alerts to prevent phishing.
8. Implementation of systems to assess transaction patterns and highlight unusual activities, ensuring alignment with customer behavior.

Also Read: RBI Takes 8 Steps for Secure Digital Payments

Disclaimer: The views and recommendations made above are those of individual analysts, and not of TheNewsay. We advise investors to check with certified experts before taking any investment decisions..

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7 Valuable Lessons from Farming Practices: Investing Insights

1. Keep Calm with Your Investments

Patience is key in both farming and investing. Farmers don’t yell at their crops; likewise, investors should avoid impulsive decisions driven by frustration or fear. Focus on long-term goals amid market fluctuations.

2. Growth Takes Time

Investments, like crops, need time to grow. Understand the compounding power, allowing returns to snowball with time. Early investments enable compounding over an extended period, transforming modest gains into substantial wealth.

3. Avoid Premature Actions

Just as crops vary in growth rates, investments also differ. Don’t hastily redeem investments due to impatience. Strategic planning, like farmers choosing crops, is crucial. Consider advantages and disadvantages before engaging in new investments.

Also Read: 7 Valuable Lessons from Farming Practices

4. Choose Wisely

Selecting the right investments is akin to farmers choosing suitable plants. Understand financial terms, conduct thorough research, and base decisions on equities, debt, and financial goals rather than hearsay.

5. Nurturing Investments

Cultivate investments like farmers nurture crops. Stay vigilant, recognize market downturns, and use opportunities to accumulate quality stocks or units in high-yield mutual funds.

6. Eliminate Non-Performers

Removing weeds in farming is like getting rid of underperforming investments. Proactively eliminate undesirable elements, strategically timing actions to optimize returns. Regular assessment ensures enduring financial success.

7. Prepare for Ups and Downs

Similar to farmers preparing for diverse weather conditions, diversify your investments across asset classes and sectors. Create a “rainy day” fund for unforeseen expenses without selling investments during market downturns. Stay informed but avoid fixating on daily fluctuations. Be ready to adapt strategies based on significant changes or economic indicators.

Also Read: 7 Valuable Lessons from Farming Practices

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Nvidia Hits USD 2 Trillion Market Value in AI Driven

The significant milestone followed a robust revenue forecast, leading to a record-breaking $277 billion increase in market value on Thursday, the largest single-day gain on Wall Street.

Nvidia’s remarkable growth in the past year draws comparisons to the suppliers of tools during the 1800s gold rush, as its chips are utilized by major generative AI players like OpenAI and Google.

Also Read: Nvidia Hits USD 2 Trillion Market Value in AI Driven

Surging from $1 trillion to $2 trillion in market value in just around nine months, Nvidia achieved this feat faster than any other US company and in less than half the time it took tech giants Apple and Microsoft.

“For AI companies today – the leaders of the sector – what’s going to be binding for them is not going to be demand. It’s just going to be their capacity to answer the surging demand,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

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Inflation vigilance is crucial said Das warns on MPC 2024

Among the six members, five voted to maintain the repo rate at 6.5%, keeping the policy stance unchanged. However, member Jayanth Varma advocated for a 25% reduction in the repo rate and a shift to a neutral stance.

“We must remain committed to successfully navigating the ‘last mile’ of disinflation which can be sticky. As markets are front-running central banks in anticipation of policy pivots, any premature move may undermine the success achieved so far,” he wrote in the minutes.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

“Food price uncertainty remains a major source of volatility for headline inflation outlook. Growing geo-political tensions and supply chain disruptions due to new flash points also pose further risks to the inflation outlook,” Das wrote.

The policy imperative at the current juncture, wrote Das, is to remain focused on achieving the 4 per cent inflation target on a durable basis, keeping in mind the objective of growth, he wrote.

Das expressed optimism that the current monetary policy is progressing well, with steady growth and inflation moving towards the target. Despite a rise in headline inflation to 5.1% in January, above the RBI’s 4% target, Das outlined expectations of a softening trend to an average of 4.5% in 2024-25.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

“Monetary policy must remain restrictive and maintain downward pressure on inflation while minimising the output costs of disinflation. It is only when inflation subsides and stays close to the target lastingly that policy restraint can be eased,” Patra wrote.

Deputy Governor Michael Patra highlighted persistent food supply pressures hindering disinflation, while external member Varma projected an average inflation of 4.5% in 2024-25. MPC member Ashima Goyal suggested that commodity price shocks might be short-lived, and the expected rise in food prices remains uncertain.

“I do not believe that such a high real rate is required at this stage to drive inflation down to the target of 4 per cent. It is true that economic growth is holding up well, but there is no evidence at all that the economy is overheating,” Varma wrote.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

“Then it would not be necessary to keep rates high just because supply shocks are expected in the future. But we can wait to test this for some more time. So, I vote for status quo on rates though headline inflation FY25 projections of 4.5 per cent gives room to cut,” she wrote.

“Avoiding any premature move will help us guard against the biggest challenge to credibility, i.e., having to backpedal later if faced with upside surprises to inflation,” Ranjan wrote.

MPC member Rajiv Ranjan acknowledged the challenges in managing the final phase of inflation’s descent, noting historical tendencies for inflation shocks to persist. External member Shashanka Bhide emphasized the need to focus on achieving the inflation target consistently, given the current elevated food inflation levels and strong overall economic growth.

Also Read: Inflation vigilance is crucial said Das warns on MPC 2024

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Mark Zuckerberg Opens Up About a Leadership Style

Zuckerberg, at 39, explained, “I’m not big on passing off tasks. I believe a founder should make decisions and be involved in various aspects of the business.” He emphasized the importance of knowing limits and avoiding half-hearted involvement that could negatively affect the team.

Acknowledging the need for a talented team, he stated, “Despite putting in a lot of time, there’s still much I can’t handle. We need awesome people to take care of crucial tasks I can’t manage.”

While admitting there might be occasional challenges in his management style, Zuckerberg expressed confidence in its long-term success. “Over time, I’ve become more assured that I can delve deep into these matters, push them in the right direction, and learn from any short-term setbacks,” he said.

Also Read: Mark Zuckerberg Opens Up About a Leadership Style

However, Meta’s recent financial report raised concerns about Zuckerberg’s risky hobbies, including combat sports, extreme sports, and recreational aviation. The report highlighted the potential harm to both Zuckerberg and the company, citing a recent knee injury during MMA training that required surgery as an example.

The report underscored the risks associated with high-risk activities, stating, “Mr. Zuckerberg and certain members of management engage in activities with the potential for serious injury and death. If he were unavailable for any reason, it could significantly impact our operations,” Meta added.

Also Read: Mark Zuckerberg Opens Up About a Leadership Style

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He stressed the power of compact, decisive teams that prioritize quality and agility over bureaucratic structures and average performance, stating, “Innovation is easier with small teams making decisive, concentrated bets, who don’t tolerate mediocre performers.”

Recipe for Startup Success of Sam Altman: OpenAI CEO

Altman argued that large teams, while offering diverse perspectives, often face challenges such as slow decision-making and a loss of focus due to internal politics and conflicting agendas.

Aligning with current trends in the startup landscape, Altman’s philosophy encourages a lean and agile approach. This involves continuous experimentation, a sharp focus on customer needs, and the presence of nimble teams capable of quick decision-making.

This mindset is reflected in the recent wave of layoffs across major tech companies in 2024, where streamlining operations has become a priority. In just two months, over 34,000 employees were laid off across tech giants like Google, Amazon, Meta, and others.

Also Read: Recipe for Startup Success of Sam Altman

Altman not only advocates for small teams but also emphasizes the importance of decisiveness and a culture of high performance. He insists that mediocre performers cannot be tolerated, underscoring the need to attract and retain top talent capable of consistently delivering exceptional results.

While Altman’s emphasis on ruthlessness may seem stringent, he believes it is crucial for startups to navigate intense competition and constant disruption in today’s markets.

Altman’s remarks serve as a wakeup call for startups, urging them to move away from cumbersome structures and embrace the effectiveness of small, decisive, and high-performing teams. It’s a call to prioritize agility, experimentation, and an unwavering commitment to excellence. In the dynamic world of startups, only the most determined innovators emerge victorious.

Also Read: Recipe for Startup Success of Sam Altman

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Japan Drops to Fourth-Largest Economy Amid Recession

The report highlighted a decrease in spending by both households and businesses for the third consecutive quarter. The downturn challenges predictions about the Bank of Japan (BOJ) ending its negative interest rate policy soon. Analysts had anticipated a 1.1% growth, but the actual result was weaker than expected.

Also Read: Japan Drops to Fourth-Largest Economy Amid Recession

The surprise contraction complicates the BOJ’s plan for a rate hike, which many economists predicted would happen by April. The market’s reaction showed a decrease in the likelihood of a BOJ rate hike by April, dropping from 73% to around 63% after the results.

Takeshi Minami, an economist at Norinchukin Research, noted that the unexpected contraction poses challenges for the BOJ, affecting its plans to end the negative rate policy. Despite recent discussions about a possible policy shift, the BOJ had aimed to reassure markets that a rate hike wouldn’t signal a drastic change.

The contraction in GDP for the fourth quarter signals a technical recession for Japan, raising doubts about the BOJ’s quick departure from its current policy stance. The data emphasized Japan’s reliance on external demand as domestic demand weakened amid persistent inflation.

Also Read: Japan Drops to Fourth-Largest Economy Amid Recession

Factors contributing to the economic downturn include a 0.2% retreat in private consumption, with households tightening budgets due to rising living costs. Household spending also fell by 2.5% in December compared to the previous year. Business spending was sluggish, decreasing by 0.1% in the last quarter.

Analysts noted that sticky inflation is impacting consumers’ purchasing power, resulting in weak consumption, resembling mild stagflation. Atsushi Takeda, chief economist at Itochu Research Institute, expressed shock at the results and suggested that the possibility of a BOJ rate hike in March is now virtually eliminated.

The weakening yen, reaching levels not seen since November, could contribute to inflationary pressure in the coming months. Despite these challenges, net exports contributed 0.2 percentage points to growth, driven by increased exports in December. Looking ahead, external demand may face challenges in supporting growth in 2024 as Japan’s key trading partners are expected to experience a slowdown in economic recovery.

Also Read: Japan Drops to Fourth-Largest Economy Amid Recession

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