“Financial Literacy Does Make a Big Difference”
The Maharashtra CM promised to engage with organistions like Moneylife Foundation to address citizen’s issues
 
Devendra Fadnavis, the chief minister of Maharashtra, while speaking at Moneylife Foundation’s 5th anniversary, said, financial literacy would help people to understand risk and returns better, thus saving them from being duped.
 
Addressing a crowd of over 650 prominent citizens, businessmen, bankers, management students, activists and whistle-blowers, the chief minister (CM) said, “Financial inclusiveness requires financial literacy. People are always in need of an instrument for saving. However, most of the time, they do not look at the ‘scheme’ or who and why it is offering such high return. People do not even look at similar instruments in the market. We get attracted to higher interest rates without checking the credentials of the offering party, and, several times, this ends in severe losses for investors.” 
 
“एक आदमी था वह सौ का माल पचास में बेचकर लखपती बन गया. िकसीने पूछा ये कैसे हुआ? तो बोले, पहले वह करोड़पती था! (There was a man who became millionaire by selling an item worth Rs100 at Rs50. Someone asked, ‘how is this possible’? He was billionaire before!!),” the CM said in a lighter vein, warning investors to be aware about the fact that nobody is in the market to give ‘fancy or sky-high returns’.
 
The CM flagged online economic offences as the biggest emerging challenge for the government. He explained how one of the provisions in the Information Technology (IT) Act has been hampering a fast probe in such crimes. Mr Fadnavis said that the IT Act mandates that complaints must be registered and probed by an officer who is not less than a police inspector (PI) in rank. However, most PIs, having joined the police force before the IT Act came into effect or the big spread of technology, are not tech-savvy. On the other hand, several police sub-inspectors (PSIs) have sound knowledge and know how to use technology for investigations. 
 
Mr Fadnavis said, “We have requested the Centre to make suitable amendments in the IT Act to allow officers of PSI rank to register and probe online frauds.”
 
The CM delighted Moneylife Foundation members when he said, “Our government would like to work with institutions like Moneylife Foundation to make people financially literate. In addition, based on the ground-level inputs from such institutions, we would also like make policies for investors. This will help people understand the difference between gain and loss on their investment.”
 
Moneylife Foundation’s 5th anniversary event was attended by a wide cross-section of activists and NGOs representing diverse interests—from civic issues, to banking, environment, transport, noise pollution, railways, senior citizens’ groups and even the Forum of Free Enterprise. When the CM agreed to a brief interaction, Sailesh Mishra, from the Silver Innings Foundation, led a team of the joint advisory committee of senior citizens organisations and submitted a memorandum to the CM on issues faced by seniors.
 
Right to Information (RTI) activist and former central information commissioner, Shailesh Gandhi and Ashok Ravat, honorary secretary of All India Bank Depositors’ Association (AIBDA) asked questions about the Right to Services Act.

User

Only 49% are aware how much money they need post-retirement
According to Principal Financial Well Being Index 2014, while 70% people say they are financially prepared for retirement, just 49% know how much money they would require post-retirement
 
The Principal Financial Well Being Index, which touches upon the perceptions and attitude of Indians towards financial planning, retirement planning and availing the services of financial advisors, found that overall individuals are financially prepared for retirement showing an increase in savings and investments. However, only 49% people claim to know how much money they require post retirement and just 53 % people keep inflation in mind for retirement funds.
 
The second edition of the Principal Financial Well Being Index in India has been conducted along with Nielsen in 11 centres (Mumbai, Delhi, Bangalore, Chennai, Kolkata, Hyderabad, Ahmedabad, Pune, Lucknow, Chandigarh and Jaipur) and a total of over 1,550 respondents were interviewed during the last quarter of 2014.
 
On questioning participants on their retirement planning, 70% say they believe they will be financially prepared for a comfortable retirement. Overall 49% people claim to have started investing for retirement at age of 26–30 years. Yet, 67% say they are worried about their long-term financial future and 63% feel stressed about their current financial situation. 65% often worry about their job security.
 
On other aspects of financial planning, only 28% said that they had some kind of emergency corpus available. As many as 73% of the households are satisfied with their current levels of savings, this is despite the facts that 63% of the households say that their savings have stayed the same in past one to two years.
 
Rajan Ghotgalkar, Country Head – India, Principal International said, “It is exciting as well as encouraging to see the optimism in Indians, reaching a new high as we enter 2015. While the sentiment is upbeat, it is very crucial for households to continue focusing on taking concrete steps towards building their financial future. The Well-Being Index is a source of some very useful insights on how we perceive and feel about our economy and our finances. We hope this will help all the stakeholders to collectively educate and empower investors”
 
Unemployment, rising inflation and fuel inflation continue to be top concerns in the economy in the next one year. Few are concerned about rupee volatility in foreign exchange, environmental issues and economic reforms. Overall 52% respondents feel that the prices of groceries, fuel and other household items will go up in next one year.
 
On surveying people’s attitude towards spending, the study found that there is a slight increase in conservativeness when it comes to spending as compared to last year. Just 30% of the respondents increased their spending slightly compared to last year.
 
On their expected spending for the current year, most Households expect spending to increase across all categories such as education, family care, food products and apparels. Children expenses (education & marriage) and Buying a House/property continue to be big-ticket expenses expected in 2015.
 
As many as 59% of the respondents say they are not planning a holiday in 2015. The number has decreased from 73% in the last year. On coming to spending on festivity, 24% of the respondents said they will spend more compared to last year and 62% said they will spend about the same compared to last year.
 
Financial advisers too plan an important role. About 58% of the respondents say that they rely on financial professionals when making important financial decisions. Setting financial goals (54%), Tax saving / planning (47%) & investment advice (46%) are the top three reasons for consulting a financial advisor. Retirement planning also figures prominently with 41% respondents consulting financial advisor for the same.
 
Overall 68% respondents feel that a financial advisor plays an important role. 57% people cite knowledge (know enough on their own) as the foremost reason for not consulting a financial adviser. 54% do not want to pay a fee, 33% do not trust financial professionals. Almost 70% people consult financial advisors referred by their friend / family & co-workers. Financial advisers experience (57%), qualification (51%), trust (44%) & reputation (42%) are the key attributes that people look for in an adviser.
 
Along with the above findings, the study attempts to highlight the Indian household’s perception of their own financial health and economy in general and how these perceptions have changed over the last year. Overall optimism on the economy has increased in the last one year. Around 55% of the 1,585 respondents say that the economy will improve or get even better over the next one year. 

User

COMMENTS

Nilesh KAMERKAR

2 years ago

It is not rocket science, This is such a no-brainer . . .

Charlie Munget has said
1) "Work hard. Spend less than you earn. Avoid leverage. Avoid Drugs. Don't drink too much. It's not rocket science."

2) "Spend less than you make; always be saving something. Put it into a tax-deferred account. Over time, it will begin to amount to something. This is such a no-brainer."

Deepak R Khemani

2 years ago

Out of those who are aware how many are planning/investing/saving for their retirement exclusively?

MG Warrier

2 years ago

Very interesting. I presume the respondents had mostly urban background and were a cross section from the earning population in India. The ignorance about need to save enough for post-job life is one thing and the capacity to save enough is another. Irrespective of the income bracket, now there is a need for earning population in the age-group of 20-60 to plan their retirement. It is comforting to see that Moneylife is taking up different aspects of this need through articles which will create awareness. Savings for retirement should form part of compensation package and there should be regulatory safeguards to ensure that such savings are safely retained.

Nifty, Sensex may come under pressure – Monday closing report

If Nifty closes below 8,750, a down move may start

 

We had mentioned in last week’s closing report that NSE’s CNX Nifty may continue to head higher. The 50-share benchmark opened Monday with a gap up and moved further higher to hit the day’s high. After a range bound session up to 11am, the index moved lower. Nifty lost its strength further during the last few minutes of the trading session, when it made a quick plunge into negative. However, after few minutes of trading in the red, Nifty entered the green zone and closed marginally higher.
 
The S&P BSE Sensex opened at 29,171 while Nifty opened at 8,831. Sensex moved to the low of 29,083 after hitting a high at 29,325 while Nifty moved to the low of 8,793 from the high of 8,870. Sensex closed at 29,136 (up 41 points or 0.14%) while Nifty closed at 8,809 (up 4 points or 0.04%). NSE recorded a volume of 105.89 crore shares. India VIX rose 3.59% to close at 20.8250. 
 
The stock market will remain closed on Tuesday for Mahashivratri.
 
Petrol price was hiked by Rs0.82 a litre and diesel by Rs0.61 in Delhi with corresponding increase in other states from midnight of Sunday. Such a price hike is the first increase since August 2014.
 
Exports during January 2015 were 11.19% lower in dollar terms than the level of January 2014, while imports were 11.39% lower in dollar terms. The trade deficit for April-January 2014-15 was estimated at $118,373.95 million, which was higher than the deficit of $116,532.22 million during April-January 2013-14.
 
The annual rate of inflation based on monthly wholesale price index (WPI) stood at negative 0.39% in January 2015, compared with a reading of 0.11% for December 2014. Meanwhile, annual rate of inflation based on WPI was revised downward to negative 0.17% for November 2014, from a figure of zero reported earlier.
 
Coming back to Indian stock markets, Suzlon Energy (19.84%) was the top gainer in ‘A’ group on the BSE. The board of directors at its meeting has approved issuance of up to 100 crore equity shares on preferential basis to Dilip Shanghvi family & Associates and has also approved divestment in SE Forge Limited, a wholly owned subsidiary of the company.
 
CESC (12.15%) was the top loser in ‘A’ group on the BSE. It was in the news as SN Menon has resigned as a director with effect from 16 January 2015.
 
ITC (3.04%) was the top gainer in Sensex 30 pack. It informed that it has entered into asset purchase agreements with Johnson & Johnson Ltd (India) and Johnson & Johnson Pte Ltd (Singapore) for purchase of ‘Savlon’ and ‘Shower To Shower’ trademarks and other intellectual property, respectively, primarily for use in India. These agreements are subject to customary closing conditions and regulatory permissions as may be necessary. 
 
Sun Pharma (2.65%) was the top loser in Sensex 30 stock. The company fell as it posted a weak December 2014 quarter result.
 
US indices closed Friday in the green.
 
The University of Michigan said its preliminary consumer sentiment index for February tumbled to 93.6 from the final January reading of 98.1.
 
Except for Jakarta Composite (0.91%), SET Composite index of Thailand (0.49%) and NZSE 50 (0.49%) all the other Asian indices closed in the green. Shanghai Composite (0.58%) was the top gainer.
 
China attracted $13.92 billion of foreign direct investment in January, up 29.4% from a year earlier, the Ministry of Commerce said today. The figure was above December's $13.32 billion, which was 10.3% higher than a year earlier. Chinese investments overseas reached $10.17 billion in the first month of the year, up 40.6% from a year ago, according to the ministry.
 
European indices were trading in the red. US Futures too were trading marginally lower.
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)