Best Medical Insurance Policy for Senior Citizens in India ?

This is a question to my readers(I hope they are reading!). I am looking to compile responses and make a post regarding "Best medical insurance policy for senior citizens in India". Please help me with your responses.

I have read about Bajaj Allianz and National Insurance. But need to know more details from people who have taken and also availed some benefits out of it.

Also I have seen increase in the trend of Health Cards in India now a days. In fact seen some agents trying to sell Health Card from Hospitals than the Medical Insurance Policy. I would try to post some experience on that too later.

waiting for your inputs!

Mutual Fund Investing / Personal Finance when Sensex is < 12000

I generally read http://www.valueresearchonline.com regularly to educate myself about Indian Stock Markets and especially Mutual Fund happenings. Read this story "Make Informed Decision". Nice thing to read about. In short what auther is saying that you need to be informed about whatever you are doing in the Stock Market specially as it moves faster than you think!. My strategy for current situation after seeing new Lows for Sensex today is :

• Stop reading http://www.moneycontrol.com : Yes please do that you will find tremendous simplicity in your life and also stress will be less :). Most of the stories are crap there and the opinions change every minute!
• Create a Networth Statement NOW : Yes do that today itself. In most cases you would be having 2-3 savings account and 2-3 credit cards, 1-2 loans, 10+ Mutual Funds and probably 20+ stocks !. To create a net worth statement and consolidate all this information will not take you more than 1-2 hours.
• Stop the SIP in Mutual Fund NOW : This needs to be done asap if not done already. I am not against SIP and also believes in the fact that the market needs not to be timed at all. But when fact is seen on weekly/monthly basis that with more negative news coming from global markets. Our Indian Stock Market is also in a downturn and Mutual Funds are taking the most beating here. So it is wise to stop the SIP now and start investing in the market little later when markets are seen stabalized(after some months of no -ve news or some months of +ve news!). If you are adventours it is worth buying Index Fund as it will go up sharply whenever market moves upword.
• Make some extra payment towards your loan : If you have not done this before. Start putting little more towards your home loan or car/bike loan now. This will help a lot in long term. There are lot of tools available on Internet to assess the impact of extra regular payments towards your loan.
• Do not take Personal Loan if you can avoid: This is not the time to take personal loans. Live life in simplicity and defer your decisions to buy something with personal loan if you can.

Update : Fully agree to what Koushik Gala is saying now at GalaTime : This too shall pass

What is your strategy ?

Related

• Invest in low cost no entry load Index Funds
• Mutual Funds for NRIs
  

Saving time with Internet Banking in Singapore

I remember my days when I first got my ATM card in 1998 in India from ABN Amro Bank!. Wow.I was so exited I showed it to everybody I met after that for few days !. Well it sounds crazy but now people have more credit cards and ATM/Debit Cards they ever need. ATM / Debit Cards saved lot of time as you would never need to goto Bank Branch to get cash!..also it made people spend more too :)

After that came Internet Banking and that saved more time. Also enalbed us to do more with ease any time any where ;)

So now how this is in differnet in Singapore? here u go ...

Adding post dated Fund Transfers or Payments

• This seems to me the best feature I have ever seen in Internet Banking after coming to Singapore in DBS iBanking. I am sure it would be there in other banks too. This saves lot of time for me as I can put my Utility or Rental Payments by setting a future date on it and it get tarnsferred on that date! It also enables me to schedule my payment activities in one go.

Setting up Maximum Limit on Transfers

• This feature for some faint hearted who feel that if they do some automated payments via Internet banking one day due to some software code malfunction bank would transfer all of their money to someone including some more in over-draft!. You could think of this scenario but essentially we need to keep good faith in the system and legal stuff so that Banks and other Institutions can improve their softwares to provide more sofisticated features to their customers. I heard there is a feature too by which you can open an non-transactional Internet Banking account too - that sounds cool!

Pre-defined list of companies for GIRO and Payments

• Again this is a cool feature which provides you list of most of the companies to which you would ideally pay like - Supermarket, Income Tax Authority, Utility etc. So with few clicks you can select the Payee and do your work quickly.
• GIRO(It is Inter banking payment facility). Again I hear about this term more in Singapore only. This is what is Electronic Clearing System(ECS) is all about.The best part I found is that when I do a GIRO ..I can cancel the GIRO arrangement anytime by going to my Internet Banking portal. Similar systems are in place in I guess most of the countries. But the feature is only good if it is fully automated. For example ..Indian Railway has excellent online tickting portal but when you need to cancel the ticket you need to visit the counter!

Enjoy Internet Banking!

Reader Mailbag # 4 : Cost of Living in Singapore 2008

Hi Sandeep,

we are planning to rent out this house at HDB Bukit Batok, 177 Bukit Batok West Avenue 8, Singapore 650177, The rent is SGD 1700/ month, you think it is a good area and a decent rent??
-Bijal

Bijal thanks for commenting on my blog.

Well, as I said earlier in my posts that all areas in Singapore are good in terms of accessibility, food options, grocery, shopping malls etc. So finally it comes to your choice of location in terms of commute to office and how much you want to pay as rent!.

So go ahead if the HDB flat is not too far away from MRT Station - may be 3-4 bus stops is a good idea.

About rent this looks like good rent for 3-4 room house. But again as I lack details in the question, can't comment on that. Again it depends sometimes, some people prefer small but well furnished flats and some prefer bigger flats like 3-4 bedrooms.

Hi Sandeep,

hope all well with you.
Could you please advice in which areas the rent is not high. Am a business men and planning to open a office in Singapore so would like to shell out less funds. I would be moving with my wife. Are the rents payable very month or its taken in advance for 12 months. Are there any security deposits while renting.
-Sachin

Sachin thanks for posting a comment. Rents are payable monthly most of the times unless its a lease(again I have not seen anybody personally doing so). Advance rent depends upon your contract terms, for 1 year rental agreement the advance would be 1 month rent in advance(wow that gives relief if you are coming from India where we pay 10-12 months rent in advance!)

The rent in advance itself is a security deposit. Most of the rent agreements has a clause to for either party to vacate or ask to vacate after 6 months by giving 1 month notice. So need to check the agreement carefully before you sign in.

About rent being high or low in areas in Singapore. You need to search based on your office location and commute time you want to spend. Once you decide on location for example Senkang, Ang Mo Kio, or Tampanies you can try searching flats in those areas and generally rent varies depending upon type of flat and renovation done.

cheers
Sandeep

Finally I have moved to custom domain for my blog !

Yes I have been thinking about this for long time!. But was not able to decide about the domain name for my blog. Essentially I was looking for something which means "Sharing". As mostly what I am doing at my blog is about Sharing Information what I have have or gathered. This helps my readers(I hope!).

So finally I decided about the name today while I was traveling in a Bus in the morning.

The name is : http://www.icare2share.com

The old blog name : http://spadhye.blogspot.com remains too !

enjoy

cheers
Sandeep

FREE VOIP Calls from Singapore and to Singapore too !

You must be searching in Google for "FREE Calls to India", "FREE VOIP Calls in Singapore", "VOIP Calls from Singapore to USA" or "FREE 2 way calls from Singapore to USA" etc etc ...

In this world of Microsoft and Google we want everything free ! .. Although Google Talk/Yahoo Messenger has given us a way to talk FREE by using our PCs. But again this puts us to the restriction of using PC to PC calls only. Well not right ..There is one more service called Fring which allows one to call Mobile to Mobile anywhere in the world just by using the Free WiFi or GPRS!...But we want more ! ..We want the convenience of traditional good old phone to phone dialing without worrying of setup's of WiFi / GPRS or complex setup of some Java based software in our Mobile.

In USA I know my friends were using Vonage to use this so called free calling to international destinations.

So now for Singapore what is the option ? ! ..I did some research and found out this :

• PC to PC works the best
  
• With Internet changing our lives, everybody with laptops and PCs with broadband. PC to PC calls using Google Talk/ Yahoo Messenger / Skype works the best in my opinion.
• But we loose this option is either of the party is not having PC or not equipped to do the first time setup of installing software, using broadband, buying headset etc etc
  
• Fring - Mobile to Mobile VOIP using WiFi or GPRS
  
• This works good too in Singapore. As in Singapore we get to use Free WiFi Zones
• Many Malls have Free WiFi Access
• Most of the homes will have WiFi
• I have tested this and it works great. Specially when using the good signal broadband connection at home. As any way you are trying to make FREE calls sometimes only when you are at home.
• Free or subscription based VOIP Providers
• There are plenty when you search google like : www.ipzoo.com
  
• Some offer free calls back to Singapore or other countries
• But mostly they have charges like 6/7 cents per min to most of the destinations like India.
• I am not very comfortable using these kind of services as they are not reliable and involves subscription which is higher or equivalent to what I can get via a Calling Card like Mustafa or others available in Singapore
• 100% FREE Unlimited Calls to any destination
• Now this is something worth exploring
• I did some research in this area and found this company called Nexustel
• I know few people in Singapore using this.
  
• Although I am not sure whether this is legal to use this way in India
• I called the person to check the details
  
• You have to buy 2 VOIP Adaptor - Yes TWO
• One you install at your home in Singapore with your broadband connection
• Second you send to India or any other destination in world and install/connect to broadband internet there too
• Connect normal Phone to the VOIP Adaptor at both ends
  
• Now once you are connected, the person in India or any other destination can call the Singapore Nexustel Phone Number and the phone in Singapore will ring for FREE unlimited time.
• The Cost of 2 Adaptors is I guess in the range of SGD 400-500. So this is the one time investment you are making.
• There is monthly subscription also. As you will be making use of this VOIP Phone to make calls to Singapore Locally too which is around 2-3 cents per minute.

So with all these options you are set to explore the VOIP world in Singapore!.

Well some points to take care before you jump

• Always use good company for VOIP as once the subscription is done you are locked with the company if the voice call quality is bad.
• As we are talking about Digital Voice here, the broadband connection reliability matters most here - any compromise on this will frustrate you !
• Check the legal terms on using VOIP in your country before opting for any options.
• GPRS is expensive!
• Check call rates or plans for calling international destination with your Mobile or land line service provider first to see you get any good plan

cheers
enjoy VOIP !

Cheap Phone Calls to India : Airtel Call Home !

Airtel is ringing Singapore NRIs finally!. I have been tracking various players in this pre-paid card business for last 2 years. Airtel and Reliance started their India calling services in USA. But in Singapore we were limited to Mustafa Calling Card(which offers the best rate of 120 minutes for SGD $6.90). There are other pre-paid cards too but most of them will cheat you on minutes and hidden connection charges. I hope Airtel will do its best to get maximum attention from Singapore NRIs.

Check the page for Airtel Call Home for the offer of 70% extra talk time. So for $10 pre-paid card purchased you get 162 minutes of talk time which comes to 6.2 cents per minute. This is great!.

I have been getting marketing calls from some Indian Companies too which offers 7 cents/minute for India calling - both land line and mobile. Which is good too. But we need to remember following points before we jump and take the offer!:

• Check your local Mobile plans for any offers for FREE IDD rates
• e.g. Starhub now offers FREE IDD for India too! - so that means you only pay local charges for calling India. Depending on the plan that could be 7 cents/minutes too.
• Make sure that the prepaid card does not charge any connection fee
• Check whether it allows PIN less calling - Phoenix Card in Singapore allows that. It makes life easier.
• When you use prepaid card you also pay the call charges from your landline and mobile. Landline is pretty cheap but mobile means more 7 cents/minute apart from prepaid. So you end up spending 14 cents/minute for a India call.
• Some cards have different charges for mobile and landline in India.

I know many use Google Talk or Yahoo Messenger for calling India, which is the best option if PC is there on the both sides. But for many occasions we still need some IDD or prepaid card service to call India.

Enjoy!

Related Posts

• Cost of Living in Singapore for Bachelors
• Cost of Living in Singapore 2008
  

Reader Mailbag #3 : Cost Of Living Singapore 2008

I am getting more comments for the cost of living post and I am making efforts to answer them. Readers please post comments to share your ideas too to help these people in their decision. Again as mentioned earlier, you need to do your own research before taking any decision. As moving from one country to another country involves lot of cost and also other factors like change in job, culture, climate and many other things. Also for most cases the decision once taken cannot be changed very easily in short duration. I am glad that I am able to provide some help in this process. enjoy reading!

Hi Sandeep,

Thanks for the information.

I have got an offer of 5000 SGD per month from singapore. I am bachelor and I would like to know whether this is a good salary or not? I am an S/W engineer having around 4 years of experience.

Please let me know.

-Rahul

Rahul, I like you read the following post of mine here. In my personal opinion SGD 5000 is a good salary to save enough money if you are going to share the apartment with few more bachelor's like you.

Best of luck !

-Sandeep

I am a software engineer with 5 years of experience. Recently I got an employment offer from a Singapore based company.

Basic Salary : SGD 2850

Accommodation : SGD 350

Transportation : SGD 100

Meal Subsidy : SGD 150

Customer Services Subsidy: SGD 50

Total Salary per month will be SGD 3500. I am also entitle to AWS in year end, equal to or prorate of 1 month basic salary, upon confirmation of employment.

Q1)Is it a good offer comparing to the Singapore standard ?

Currently I am working in Bangalore,India and drawing a salary package of Rs-8,50,000 per anum. I'm able to draw around Rs-53,000 in hand per month (after tax). I am a newly married and my wife also earns around Rs-20,000 a month. Normally our family expense (rent Rs-10000, food and travel) wont go beyond Rs-22,000 per month.

In Singapore, I would like to go for a HDB flat (minimum 1 bedroom, 1 living room, kitchen and toilet) and I don't want to share the accommodation.

Q2)From the given data, Whats your opinion on my relocation to Singapore? Is the offer financially beneficial for me?

My wife is .net/C#/VB software engineer with 1+ years experience in an MNC.

Q3)Whats her chance of finding similar job in Singapore?

Q4)What salary range she can expect in Singapore ?

Q5)With the double income option, Whats your opinion on my relocation to Singapore?

Please send me your reply to

Thanks and Regards,

-Ravi

Ravi,

A1)As you might know,there is nothing called as Singapore Standard or for that matter India/USA standard when comes to salary package , it all depends on various factors like company you are joining, your skill level, need by the company and your negotiation skills for getting good salary package. You can have an idea about Singapore Wages here :

Ministry of Manpower Singapore Data on Salaries in Singapore

A2) This is an average salary. You need to define your goals for savings in Singapore as compared to what you are saving in Bangalore. I believe savings of around of Rs.50k(Rs.72k salary - expenses of Rs22k) is considered good in Bangalore. You should consider some other companies in Bangalore or in India to see what is being offered for your exp.+ skills. This will help you to take the decision better.

A3) Yes she can get job with some time of searching.

A4) Salary range could be checked in the report I have provided link earlier.

A5) Yes double income surely helps!

Hope this helps.Best of luck!

regards

-Sandeep

I would request readers to comment in more details, in case they are looking for any specific information. This would help me to provide better feedback. Also whatever I write is my personal opinion and cannot be taken granted. DYWR(Do You Own Reseach!)

Reader Mailbag #2 : Cost Of Living Singapore 2008

Hiii sandeep ur blogs have been highly informative and are a great help. i wanted to know about tax filing in singapore and India. Are u required to file returns only in Singaore or also in India how do u manage to do it??? 

-Bijal

Thanks for the comments Bijal. It is a very good question. I believe most of the people who get relocated to the new country from India must be thinking about this. Well the simple answer to this question is that you need to file Income Tax in Singapore as long as you are eligible for it. For more information checkout the informative website : Singapore Income Tax Website. Regarding Income Tax in India. You need to file returns with Indian Income Tax authority and pay the required Income Tax if you have any income in India. This is also applicable for people who have NRI status. 

Now with India providing various ways to file returns electronically it is much easier to file IT returns in India. Please read more about this at : RBI on NRI Rules on Income Tax

Hi Sandeep, many thanks for this information. Really you are doing a great work.I am planning to move to Singapore in Dec 08 along with my spouse. I would like to know more about master room (facilities, area, access to this room, cooking facility etc). Whether cooking is allowed? Thanks 

-PU

I assume you are talking about renting only the Master Bedroom out of 3 Bed Room HDB Flat or a Condo. Well generally speaking this kind of arrangement is more suitable for bachelors. But there are couples also who share HDB/Condo flats like this. Generally it requires lot of understanding between 2 parties sharing the flat and also requries some flexibility from everybody who is sharing the flat. The Master Room is the one which is having attached bathroom and toilet. Three bed room HDB flat have 1 Master room with attached bathroom and toilet. The other toilet is either near the Kitchen or having access via the living room(this is mainly true for new HDB flats which are less than 6-7 years old). Whether cooking is allowed or not depends on the owner of the flat. Most of the times the kitchen is well equipped with Fridge, Microwave Oven, Rice Cooker and some utensils too if you are lucky!..Best of luck for your house search !!

Cost of living in Singapore 2008 : For Bachelors / Single !

I have been getting lot of comments from my bachelor readers to find out what is the "Cost of living in Singapore for Bachelors".Most of them will start like this "hi...i have received an offer of S$3050 from a PR firm in Singapore and m thinking of relocating. I'm currently single and would appreciate your advice on whether it is possible to live comfortably on this salary... - Anonymous"

My blog post about "Cost of Living in Singapore 2008" get around 1-2 comments from people asking questions like this. My idea of sharing this information is to give some understanding for people who are trying to relocate to Singapore. I hope they get some idea from these posts. But most important thing to note is that I am not trying to advice here about anything. What I am putting is my frank personal opinion about "Cost of Living in Singapore". As I said before too, this depends on your lifestyle and how you continue to live here in Singapore. Also things might change over a period of time either on -ve or +ve side of it. So please do your own assessment before you take any decision.

With this let me explain about how much an bachelor would need in Singapore $ to live comfortably. Again this would depend now many things like,whether you are sharing the accommodation or not, how much do you spend on lifestyle products like iPhone!, how many times and where do you go out for eating etc etc.

Here is the sample chart to show how much an bachelor will probably spend here in Singapore for living.

Assumptions

• 4 Bachelors / Singles living together in HDB Flat!
• Sharing Grocery Expenses
• Cooking at least 1 meal daily at home !
• If a single person not living in Shared Accommodation - then the cost increases - But its a matter of preference for many. Remember it is good to live the life the way you want rather than savings some bucks :)

So for a Single it turns out to be very good as they can save good amount of money!. Again in this one needs to add a cost of travel for holidays or back to home country needs to be included. But that another post !

Enjoy Singapore!

Related Posts

• Cheap India Calling options from Singapore
• Choosing Cable TV in Singapore
• Choosing Internet Connection in Singapore
• Choosing Mobile Connection in Singapore
  

Reader Mailbag #1 : Cost Of Living Singapore 2008

In this series I will try to address the questions asked by my readers specially on Cost of Living in Singapore. This helps me to consolidate the questions and answers by me. Also it helps readers to find the answers they are looking for quickly!

The reason of for having this series is that I would like to help readers and want to protect their identity in case they put their email in the comments. Also this is a great way to share ideas !

I am getting an Offer from company to pay me SGD $3000 and rental provided by the company. I have two kids, one goes to nursary and other is neonatal.How it would be to move to Singapore from India and earn some money..plz reply back me on at yahoo.com.
- Vidyanath

I would personally avoid to give any recommendations or advice in this case. But at the same time I would like to share some facts so that it helps you to take the decision better.

If you are planning to move to Singapore from India. It is important for you to assess what you are saving there per month and how much is your expectation when you settle down in Singapore after 6 months of moving in. As there are expenses when you move in, so the first year's average savings reduce. I would suggest you to do some fact finding based on your current spending habits and savings per month in India. Also factor your current job and its potential to grow in India.

Nursary costs depends on where you put your kid. The range is between $300(decent one)-$750 based on my research in this area.

hi Mr.Sandeep ...good work ..I have got a offer from Singapore and they are offering me $1200 for housing and $2800 for other expenses. My husband and 2 yr old son will move with me. my husband is a marketing manager and I hope he will get a job in Singapore..I am really confused if I should take up the job ..what do you think ?
-Praveena

I picked up this question from my readers comment too as it similar to what I answered earlier. But this has another important aspect. It happens many times that either of the spouse finds a job and they have this tough question to decide whether to move in with that and then find job for other one later when they land in.

In this particular case again its a tough decision to take. But if you do your research right and plan properly this is something worth exploring. You would get 2 Bed room HDB apt in Singapore for $1200, although it depends on area and how furnished the flat is. Living with a family of 3 with $2800 is tough on budget, but if your spouse is confident on getting job here in Singapore in 3-4 months timeframe. The idea is worth looking at.

Singapore job market looks promising at present. So getting a job if you have right skills in demand is not difficult.

Please refer to following archives for more information on this subject:

Cost of Living in Singapore Posts

Small Savings on Grocery Items in Singapore - 2008

With Grocery taking almost $300-$400 of the monthly budget. It is important that we save on some items which makes sense.

• Go with House Brand!
• This is my favorite of all!. I was at the NTUC(FairPrice) recently and found that Detol Hand wash costs around $5+ whereas similar quantity House Brand Anti-bacteria hand wash costs only $2.50+. We always know Detol or some other brand which is shown on TV, but are unaware of simple house brand alternatives!..Check out similar house brand items at Carrefour too ..Personally I like the Jams there !
  
• Buy from your favorite Shop
  
• This is a no-brainier but it is important that you buy in bulk only from the shop which offers discounts and priced fairly. I am still unable to understand how same brand of Fresh Milk costs $5.20 in One Shop whereas same costs $4.90 in other ;) ..checkout few stores like Cold Storage, Carrefour, NTUC FairPrice etc and you will come to know where to shop more !. My Personal preference is to buy Fruits from FairPrice and Carrefour(whenever possible).
• Order Online if possible
• We order the Indian Groceries online in Singapore using website Online Groceries
• It makes more sense to order online whatever you can specially when you know that the stuff you are ordering is going to be of a same quality as you buy it from the store personally.
• Specially bulky items like Milk Cartons, Rice , Atta flour etc. As you have lot of convenience to get these delivered at your door step. Saves Taxi trip, queue at Taxi Stand, weekend time !
• FairPrice also offers Online Shopping
  
• Compare prices before you buy some items
• This is again common sense but we ignore and assume sometimes.
• A very nice example of Umbrella I had yesterday when I went to FairPrice Xtra at Hougang Point. We bought good quality Umbrella for $2.60(Aluminum frame and light weight) only. I remember buying a similar kind of Umbrella from a local shop for $13 sometime back. Even in Little India I have never seen Umbrella below $5 and they are the heavy ones. Although its a small item, but we keep loosing them sometimes!
  
• Make a reserve list for promotions!
• Always have some items to buy during promotions. Recently I saw promotions of Cock Brand Groundnut Oil for around $7+ whereas same trades at some shops for $10+. So it is a good idea to buy few items from some of the shops which keep offering promotions for the same.
• Buy cut fruits from Grocery Shops !
• You are one of a kind who likes to eat Fruit everyday during lunch or in the evening !. If you are lucky to have a carrefour or FairPrice shop near your office. You should buy the cut fruit from them instead of buying from the Fruit stall as the difference makes a lot of sense. Fruit stalls are good for juices!

Happy Shopping in Singapore !

Related Posts

• Cost of Living in Singapore 2008
• Cost of Living in Singapore 2007
• Reader Mailbags on Cost of Living in Singapore
  
• All cost of living posts of mine
  

Financial Freedom on Independence Day ! 15th August 2008

Happy Independence Day to all.

I still remember my days in K.V School when we used to go to school in white clothes for Flag Hoisting Ceremony. The special treat used to be Mooti Chur ke Laddoo !!

On this day I would like to bring an exiting topic. Which is Financial Freedom! I am not a Financial Adviser. I believe we can at least achieve financial freedom by taking small baby steps.

• Stop signing up for more credit cards
• Stop taking Promotional Offers on Financial Products in hurry
  
• Stop taking personal loans if possible
• Save and Invest : Remember that just saving is not enough. You must Invest in order to potentially increase your income and achieve financial freedom.
  
• Invest in Low cost Mutual Funds : This is interesting as investing in low cost means two things. Either you find a fund which is having less management fees and expenses or Invest in Index Fund. Just now I read this article "The Lost World" on http://www.valueresearchonline.com. Excellent article which talks about Investing in Index Funds and how they are in India Vs USA. But before you jump look at these figures(taken from http://www.valueresearchonline.com) :

Open Ended - Equity: Index - one Year Return
Fund	NAV (Date)	Returns(%)	Return as on
ICICI Prudential Index	41.37 (13-Aug)	5.44	8/13/2008
UTI Sunder	467.82 (13-Aug)	4.09	8/13/2008
Nifty Benchmark ETS	459.69 (13-Aug)	3.88	8/13/2008
Franklin India Index NSE Nifty	35.79 (13-Aug)	2.60	8/13/2008
Birla Sun Life Index	45.37 (13-Aug)	2.57	8/13/2008
Principal Index	31.80 (13-Aug)	2.20	8/13/2008
Franklin India Index BSE Sensex	42.56 (13-Aug)	1.91	8/13/2008
UTI Nifty Index	28.56 (13-Aug)	1.85	8/13/2008
Canara Robeco Nifty Index	23.93 (13-Aug)	1.61	8/13/2008
Tata Index Nifty A	27.45 (13-Aug)	1.58	8/13/2008

Note that with same benchmark of S&P CNX Nifty ICICI Pru Index gives 5.44% Yearly Return whereas Birla Sun Life Index Fund gives 2.57% :) This is what author Dhirendra Kumar of the article I linked above is trying to explain.

• Generate Passive Income : Well this is something needs more thought and planning. It is easy to say but not so easy to implment. I follow this blog regularly and here is one interesting post on Passive Income
  
• Start blogging your ideas: Its been more than 2 years I am blogging. It is good to put your ideas and thoughts on a blog. It helps you as well as others.
• Invest in Stocks directly only if you know :)
• Invest with Mutual Funds directly with AMCs: This step alone will start saving you 2.25% entry load :)
  

Enjoy Freedom and your holiday if you are in India !

Indian stock markets on Cruise Control !

Indian markets are on Cruise Control today 11th Aug 2008 !. It seems all negative news are dried up and bulls are back..really ? I don't know for now.

• Oil prices came down a bit.
• Inflation is stable! - well people are tired of listening to the same tune..
• Banks are gaining - ICICI, HDFC are up !
• Elections are not in near term at least
  
• Mutual Funds NAVs are rising slowly
• IT companies in India are still recruiting
  
• Websites say
  
• Markets yet to see worst slowdown
• They are still trying to predict level for Nifty and Sensex ! - same guys on TV will say don't try to time the market :)
• Real Estate prices are still high - I do hear that they are coming down - but not in reality!
  

With all these, what an average investor is supposed to do ? I don't have an answer. I still feel India will continue to grow and therefore need to be in the market to gain from it. But at the same time I will see stick to my strategy :

Indian Mutual Fund Strategy for coming months - Part I

We still need to more analysis in order to understand how to play in this market.

Invest Online with AMCs Directly, NRI too ! ..SAVE Entry load 2.25%

With SEBI giving directions to AMCs for not charging Entry Load to Investors when they invest directly with AMCs. I have been thinking of doing this for long time but lacking some initiative to do the same !. Well with markets performing not so well for time being. I though it is the right time to try this with at least 1 AMC to see if this really works.

With my best guess I thought ICICI will be the best AMC to start with. With my experience I know that the ICICI is one of the pioneer's in implementing Online services for its customers.

This post is only about how to start investing with ICICI Pru AMC for Mutual Funds. Once I find out about others like Kotak, Birla..I would post about that too. btw till now I have found only ICICIPru, Kotak and Birla offering Online Investment facility. SBI does too, but their process is not 100% online!. Sundaram has tie-up with HDFC, Kotak Securities and ICICIDirect. So that means you need pay entry load of 2.25% !

Steps to start investing online(Purchase, Switch, Redeem) with ICICI Prudential AMC are :

1. Goto https://www.icicipruamc.com/InvOnline/invest.asp
2. If you already have a Folio with ICICIPru(Means you had bought Mutual Fund from ICICIPru directly using manual method earlier) then the process simple and can directly goto Step 3.But if you have invested in ICICIPru Fund using ICICIDirect, Citibank, HDFC etc ..because then in that case the Folio is sought of protected and only can be updated by those brokers.
3. Click on Button "Existing Investor" and follow the form to Invest Online. Don't forget to select option "DIRECT" in the Form. ICICIPru AMC have tie-up's with most of the banks to transfer money using net banking.
4. For Investor's who are first time investing in ICICIPru AMC. Goto website https://www.icicipruamc.com/InvOnline/invest.asp.
5. Click on link "APPLY NOW"
   
6. Click on button "First Time Investor"
7. There are instructions on this page to follow. But for simplicity, as I have done this I will give the steps here - Assuming you are Investing in ICICI Prudential Index Fund !
1. Download the Common Application Form
2. Fill up the form carefully, specially the details of Fund, Cheque No, Bank Details, NRI Checkbox for NRIs etc
3. Write a crossed cheque of Rs.5000/- in the favor of "ICICI Prudential Index Fund" This is the minimum first time investment amount for ICICI Prudential Index Fund.
4. Take a blank cheque and cancel it. This is also an requirement for direct debit/credit for AMC. They need another cheque as a proof for MICR Code I guess.
5. Make sure you correctly write the IFSC(Indian Financial System Code) Code (This is printed on the Cheque normally)- This is required for RBI money transfer process.
6. Proof's to attach with application - Please go through the application form instructions.
1. Attested PAN Card Copy - If you are submitting the Form personally at the AMC, then you can show the Original PAN Card. For NRIs this is not a option, so you need to send an attested PAN Card Copy or Self-Signed would also do.
2. KYC Acknowledgment or Print out after verifying at CDSL Website
7. Verify all the documents and send by courier/post to the AMCs office in the City where your bank branch is located. This is important as they don't accept outstation cheques.
   
8. For NRIs, please make sure to use Registered Post. I used registered post from Singapore. It reached in 5 days to ICICIPru AMC.
9. The day your form reaches ICICIPru AMC, the first transaction is recorded and you get a Statement of Account in email !
10. Now you can create a ICICIPru Tracker Account to do Purchase/Switch/Redeem from ICICI AMC without any ENTRY LOAD :)
11. Steps to create the ICICIPru Tracker Account :
1. Goto ICICI PRUTRACKER Website
2. Follow the Activation process by having your Folio Number from account statement and a secret question!
3. IPIN is generated online and you can create a username/password with Prutracker.
12. Now onwards you can invest in all ICICI MFs without any entry load :)

The entire process for me took 8 days. Right from sending the Form and activation of Online account.

I will try to find out more about other AMCs and will post the steps for that too.

Happy Investing!

Indian Mutual Fund Strategy for coming months - Part I

I believe it is time to redefine the strategy for Mutual Funds for coming markets. I have been thinking about it for sometime now. I am not expert on this but I believe that one needs to experiment a bit in order to gain in this kind of market where nobody knows whether it is in bearish phase or bull phase !

For those who were lured by the Borkers/Agents/Advisors to invest in Indian Mutual Funds in last six months or in late 2007 must be thinking that this Mutual Fund boom is over. And one should not never invest it in again. Just get out of the current investment and go back to good old Fixed deposits ..that too with Nationalized banks only ;) :)

Well I have a different opinion here. There is no need to panic with markets or try to run away from it. Just because the bears are back and they are taking away your returns as never before :)

But at the same time having good strategy do helps. Here is mine.

• Stop all SIPs - Yes don't believe the Fund Managers and don't panic, but at the same time STOP SIPs for now
• Redeem all Funds with profits - If you are lucky and still have some profit left in your earlier investment, please redeem that NOW!
• STOP all Manual Investments - This is the most important point here. Many people have lost their profits just because they could not redeem the Funds as they were in a manual method. It was just laziness or ignorance which stopped them from redeeming E.g. Don't know what to do for redeeming, who is CAMSONLINE, Broker not available...etc
• Prepare Net worth Statement - You need to take stock of your investments as well as expenses and income at once. If you have never made a Net Worth Statement till date. Search on Google and you will find many sample templates for doing this stuff easily.
• Define Objective for Investments - If you had never done this. It is important that now we understand this concept of Investing with Objective and starting doing that. This will create lot of positive thought process in you - after going through this bearish phase - still counting though !
• Pay mortgage partly - If you have home loan or any other loan. Please pay little bit more than what you have been paying monthly as EMI. Not too long ago (2003-2007) advisors/brokers/agents used to say that invest first and pay loan later from profit. I believe we need to do both together to gain most.
• Start Online Investment with AMCs - In order to save 2.25% entry load, start investing with AMCs directly. Try do some research on this. Wait for few days and I will post something about it!

This is what I am doing for now. I will post more about how to plan the Investments in Mutual Funds and Stocks directly too in my Part II.

Happy Investing!

cheers
Sandeep

Related Posts

• Investing directly with Mutual Fund AMCs in India - Save Entry Load
  

Online Mutual Fund Services - be careful before you decide !

There is lot of trouble if you have taken account with Timeofmoney.com

They stopped BUY option from their website 3 months back. Now their website is out of sync for the NAV information. So you need to do look out for REAL NAV information in websites like http://www.valueresearchonline.com before you decide to SELL using their website ..well luckily the SELL option is still available !

So this is a good lesson learned for people who were looking for online options for MF services. So my recommendations would be :

• Go directly with AMCs - the biggest benefit is the Entry Load - I am yet to verify this !
• Better management of Funds
• You actually need 2-3 AMCs to cover all the BEST Mutual Funds
  
• Once you have done First Investment via the AMCs, they allow you to transact using their websites.
• Going with Banks and established portals like ICICIDirect, HDFC is better than choosing some Online Broker for your investments.
• I can't think of any other advantage at this point :)

Happy Investing !

HDFC Home Loan ...Excellent Online Transaction Services !

Recently when I got my HDFC Home Loan statement, I got to know that they have Online Services too :)

So went to the website http://www.hdfc.com and found out that they have excellent Online Transactions service for their Home Loan Customers. This is very good move by the bank. I am not sure which other banks have this service for their Home Loan customers, but this is very good. Mainly for NRI Customers where they need to get Income Tax certificates and other account statement online. No need to depend on the snail mail :) ..

Also the registration process is very simple. Just goto the web page : https://jogint0.hdfcindia.com/inet/ and provide your home loan account and create your online account with HDFC Home Loan. Immediately customers could login to the website and get all the required details for the Home Loan. Also there is a way to pay your Home Loan EMI via the website's secured payment gateway.

Only thing missing is the facility to pre-pay the home loan :) ..I hope they add that too in due course.

I know that ICICI Home Loan do have any such facility yet ...

Overall I like HDFC Bank. Their approach towards fairness in implementing policies is very good. Specially recently when one of my friend wanted to open Mutual Fund account with them. The relationship manager went out of the way to get the KYC done for the customer and activiated the MF account.

With all these nice things. They still need to more good job with their Interface design for the Online Mutual Fund web page! ICICI Direct is the best for the their Interface as well as providing all the Mutual Funds for subscription.

FAQ on Cost of Living for Singapore

I have been getting many queries from people around the world for cost of living in Singapore. It is tough to a answer to the question "I have been offers $xxyy, would that be enough for decent life for a couple?" ..Well answer to this is mainly tough as cost of living really depends on how you really live, spend your money in various things over a period of time.

If you are living frugally, you might save some money based your income and expenses. But sometimes this can get tricky ..for e.g. if you make a trip back to India or your home town after 6 months of stay here in Singapore. Your average monthly expenses is going to go up. So this is math.

I would still like to help my readers with their queries, wherever I can. So please if you are asking a specific question, leave your email-id like "xxvvbb at gmail.com" or "djhj at yahoo.com". This way I can reply back to you if time permits. Otherwise for somebody who is desperately looking for some answer, either they have to check back the blog back to see whether I have tried giving the answer. Also sometimes the question is asked in some other post of mine, while the query is related to the cost of living post! ..So you see this is tricky and time consuming for me to manage ..

My objective is to help people who are trying to get information about Singapore.

Again this is all my personal views and should be taken with caution before taking any decision.

Hope this helps ...with this I will try to put some posts soon to have some of the common queries.

Enjoy !

Mutual Funds for NRI Investors..Many questions !

I have been trying hard luck to do some mutual fund investment's of my own choice using Citibank. But it seems bank has decided its own way of giving choice of available Funds. They show all the AMCs but when try to select a Fund e.g. I wanted UTI Master Index. It is not available for me to select.

So I though I will email the realtionship manager to get the answer. The link does not work :(. So I am trying to search Google and trying to find if AMCs have any restrictions for NRIs to invest in particular funds only ? If it is ..is it listed somewhere by the AMCs on their websites ?

If anyone reading this blog happen to know the answer to above questions ..please help me understand !....this will help lot of people who are looking for a similar answer.

btw ..it seems ICICIDirect too allows mutual fund transactions online for NRIs...if anyone has experience with that ..please share ..

Update
After researching http://www.valueresearchonline.com for sometime I got to know that we can know about the Fund and its eligibility for NRI Investment. For example you can goto :

UTI Master Index

and then goto the "Fund Details" tab, there is a Eligibility column which tells who is eligible to invest and whether it is repatriable.

Now the question is why Citibank is not offering UTI Master Index but offering Birla Index ! ..As per valuresearchonline Birla Index has 3 stars whereas UTI Master Index has 5 stars. The only difference I could find out is the Expense Ratio and Management Fee is higher for Birla Index, apart from that the returns are almost the same. Which is expected for Index Funds in the same category and assuming similar tracking error.