Sucheta Dalal (Trustee, Moneylife Foundation and Managing Editor, Moneylife magazine) warned students from falling for the lure of get-rich-quick schemes, while Debashis Basu (Trustee, Moneylife Foundation and Editor & Publisher, Moneylife) explained how one can make money over the long run by using the power of compounding
Moneylife Foundation conducted an exclusive workshop for the students of the Sadhana Centre for Management and Leadership Development, on Saturday, 30th July. Over 120 students attended this session from various academic disciplines offered by the management college.
The first session was on 'How to be Safe with Your Money' by Ms Sucheta Dalal, Trustee of Moneylife Foundation and Managing Editor of Moneylife magazine. Ms Dalal spoke on how investors should remain safe by avoiding pyramid schemes and multi-level marketing schemes.
"Any scheme that asks you to introduce two more investors to get extraordinary returns is avoidable," warned Ms Dalal.
Citing the examples of popular pyramid schemes such as Citi Limouzine, which duped gullible investors on the promise of exceptional returns, Ms Dalal explained how these schemes even target professionals such as lawyers, policemen and doctors to gain legitimacy. Their modus operandi is simple-they target people, pay them returns, then ensure that their target's friends and relatives start investing.
The second session was on 'How to be Smart with Your Money' by Mr Debashis Basu, Trustee of Moneylife Foundation and Editor & Publisher of Moneylife magazine. Mr Basu spoke on risk and returns of various investment options-from gold to bank deposits to real estate and equity.
Mr Basu described simple investment principles that can lead to substantial wealth creation over a long period of time. He explained how to invest smartly in equity schemes and stocks, and pointed out the merits of compounded interest over a long term. The key, he said, was to start early and with modest expectations and hold on for a long term.
Mr Basu explained the power of compounding and how regular saving and re-investing of the money saved can give substantial gains over the long term. But the key is to start early, save regularly, remain invested and ensure that there are no losses or gaps during any year, cautioned Mr Basu.
He also emphasised on the need to select a few key products that will cover the bulk of one's financial needs and not give in to the temptation of trying to make easy money without adequate knowledge of speculative products-usually derivatives, which are meant for professional traders.
The card will be offered to eligible salary account holders of IDBI Bank
Public sector bank IDBI Bank has launched a unique offering, IDBI Magic Card. It encompasses the features of a debit card with a credit limit, that charges much less than a regular credit card.
The card will be offered to eligible salary account holders of IDBI Bank and the credit limit would be a multiple of the monthly salary earned by the card holder. There is no processing fee for the card, neither any charges for cash withdrawal, with a daily limit of Rs50,000 from any bank ATM or purchase transaction. There would also be loyalty points for amount spent for purchases and insurance cover for lost/stolen/counterfeit cards etc. The card is expected to be a game changer in the market of cards.
Intent to partner as a corporate agent, subject to regulatory approval
DLF Pramerica Life Insurance (DPLI), a joint venture between DLF Ltd, a real estate company in India, and Prudential International Insurance Holdings, Ltd (PIIH), a fully-owned subsidiary of Prudential Financial, Inc (PFI), a financial services leader headquartered in the US, have signed a Memorandum of Understanding (MoU) with Mapusa Urban Cooperative Bank (Mapusa UCB), Goa for a corporate agency partnership, subject to regulatory approval.
Founded in 1965, Mapusa UCB is one of the oldest cooperative banks in Goa and has 24 branches across the state with over 125,000 registered customers.
Talking about the proposed bancassurance partnership, Pavan Dhamija, MD & CEO, DPLI said, "A distribution relationship between Mapusa UCB and DPLI will allow us to address the insurance related needs of the bank's entire customer base in Goa, a region where we see immense potential for life insurance business."
According to Davinder Singh, executive vice president-products and third party distribution, DPLI, "Our company's focus is on 'life protection' which is really the fundamental purpose of life insurance. All our products are designed to cater to this specific need. At the same time, we are building strong distribution and servicing capabilities that are keenly directed towards providing enhanced customer service. Our alliance with Mapusa UCB that has significant presence in Goa is another step in this direction."