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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Nine Financial Tips for a Prosperous Navratri

As Navratri draws to a close, I wish you and your family happiness, prosperity, and continued success. Festivals are a time of celebration, but they also serve as a valuable reminder to reflect on our financial habits and strengthen our financial discipline. In the spirit of the nine days of Navratri, here are nine essential financial tips to help you stay on track with your financial goals and make your journey towards financial freedom smoother and more secure. Build an Emergency Fund Make...

Nine Financial Tips for a Prosperous Navratri

As Navratri draws to a close, I wish you and your family happiness, prosperity, and continued success. Festivals are a time of celebration, but they also serve as a valuable reminder to reflect on our financial habits and strengthen our financial discipline. In the spirit of the nine days of Navratri, here are nine essential financial tips to help you stay on track with your financial goals and make your journey towards financial freedom smoother and more secure. Build an Emergency Fund Make sure you have at least six months of living expenses saved in a bank fixed deposit or a debt mutual fund. This reserve will serve as your emergency fund for unforeseen situations and ensures you are prepared for any rainy days. Review Your Asset Allocation Revisit your investments to ensure they align with your goals. For short-term goals within three years, bank fixed deposits, recurring deposits, or debt mutual funds are appropriate. For long-term goals beyond three years, a diversified combination of hybrid/equity mutual funds, direct equities, and gold should be preferred. Do Sufficient SIPs Systematic Investment Plans (SIPs) are the backbone of disciplined investing. At least 25-30 percent of your in-hand monthly income should ideally be invested through SIPs in mutual funds, equities, and gold. This consistent approach will steadily build wealth over time. Make Lumpsum Investments Along with SIPs, voluntary lumpsum contributions into long-term assets whenever you have surplus funds can accelerate wealth creation. Even occasional lumpsum additions make a significant difference to the overall corpus. Increase Your SIPs Annually As your income increases, make sure your investments grow as well. Increasing your SIP amounts every year helps your wealth stay in line with inflation and your rising lifestyle needs. Increase your SIPs yearly and anchor them to at least 30 percent of your monthly income. Stay Invested Remain invested until your financial goals are achieved. Avoid redeeming investments unnecessarily. Frequent withdrawals disrupt compounding. If liquidity is required, consider taking an overdraft loan against your investments rather than breaking them prematurely. Health Insurance Safeguard your family with adequate health insurance. Opt for a minimum cover of 25 lakhs per family member with comprehensive features. Remember that relying only on employer-provided insurance is risky. Independent health insurance is essential. Term Life Insurance Protect your loved ones with a pure term life insurance policy. Ensure a cover of at least ten times your annual income, along with provisions for any outstanding loans. Stay away from mixing insurance with investments. A simple term plan is the most effective solution. Consult a Financial Advisor A full-time, well-qualified financial advisor can simplify your financial journey. Professional guidance ensures disciplined planning, correct product selection, and proper execution of your financial strategy. May this festive season bring abundance and lasting financial peace. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Centre releases over Rs 4,200 cr for Andhra Pradesh capital’s project

PTI
Apr 7, 2025
2 min read


Amaravati: The Central Government has released over Rs 4,200 crore to Andhra Pradesh for Amaravati Capital Development project after it (centre) received the first disbursement of USD 205 million from the World Bank, a senior official has said.


The World Bank and Asian Development Bank (ADB) together committed to fund USD 1600 Million (Rs 13,600 crore), USD 800 Million each, for Amaravati capital city phase-I development, while the Centre will be contributing remaining Rs 1,400 crore, out of the Rs 15,000 crore committed by the Central Government for phase-I of the development.


According to the World Bank documents the project became effective on January 22 this year and the first disbursement of USD 205 million for program advance was done last month.


“Out of this total Rs 15,000 crore, there is a sharing between the World Bank, ABD and the centre. The ADB also may have given same amount. I do not know exactly how much the ADB has given to the Government of India. The Centre has also released its matching amount of around Rs 800 crores. So we have received a total of Rs 4,285 crore from the Centre on April 1,” the official told PTI.


According to the official , the Centre has agreed to give 25 per cent of the total committed amount as “Mobilisation Advance” and the amount that was released is under this head.


The next instalment of the committed amount will be released after the state government shows some progress and submit bills or utilisation certificates, the official added.


“That (second tranche of funds) will take time. It will take at least six months, because the works have just started and in another two to three months they will pick up,” the bureaucrat said.


On some complaints lodged with the World Bank expressing concerns over the environmental and livelihood issues, he said the World Bank and ADB have their own strong mechanism for redressing the grievances which is independent of their board also.


In fact, a delegation of six members, three each of WB and ADB visited Amaravati last month and expressed satisfaction after an inquiry.


AP chief secretary K Vijayanand recently said Prime Minister Narendra Modi will relaunch Amaravati greenfield capital city construction in April, which will entail the resumption of works worth about Rs 1 lakh crore.


The International Bank for Reconstruction and Development (IBRD), part of the World Bank which provides loans and guarantees among others, to middle-income and creditworthy low-income countries will be funding USD 800 besides ADB.


According to the WB document , the Department of Economic Affairs at the Centre is the borrower while the Andhra Pradesh Capital Regional Development Authority is the implementing agency.

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