SAMRIDDHI

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VOLUME 10, EDITION 3 THE PATH TO PROSPERITY

The 5 steps to becoming

a successful mutual
fund investor
Understanding your risk profile, time horizon & discipline can
catalyse your investment performance.

Not a child’s play

Financing your child’s higher education is getting increasingly
tough. Here’s what you should do.
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Contents
4
9 23
CEO’S MESSAGE
A message to readers by COVER STORY
A Balasubramanian TRAVEL
The 5 steps to becoming a Delhi
successful mutual fund investor Modernity
meets heritage
Katra
A divine place

5 EXPERT’S

13
VIEW
Paving the way CHOOSING
A MUTUAL
for prosperity this FUND
Navratri A mutual fund for every need

7
The
WAY TO
PROSPER 15Not a
COVER STORY

un-Diwali child’s play

investment

27
strategy
WORD
SEARCH
A fun way to recap

8
all that you’ve read
and learned
QUICK ADVICE
4 ways to not overspend this
festive season

19 INVESTORS’
HANGOUT
Investor queries answered
by Dhirendra Kumar
Disclaimer: The views and opinions expressed are those of Value Research India Pvt. Ltd. and do not necessarily reflect the views of
Aditya Birla Sun Life AMC Limited (“ABSLAMC”) /Aditya Birla Sun Life Mutual Fund (“the Fund”). ABSLAMC/ the Fund is not guarantee-
ing/offering/communicating any indicative yield on investments. ABSLAMC or any of its officers, employees, personnel, directors make
no representation or warranty, express or implied, as to the accuracy, completeness or reliability of the content and hereby disclaim any
liability with regard to the same.

3
 CEO’S MESSAGE
A BALASUBRAMANIAN
MD & CEO, Aditya Birla Sun Life AMC Limited
Dear Readers,
By the time you receive this issue of ‘Samriddhi’,
we would be in the middle of the festive season
that kicks in with Navratri. So, first of all, accept my
warm wishes. As the pandemic has subsided, I
hope that the festive season will add even more
colours to your life.
However, as we have emerged out of one crisis,
we seem to have entered into another. Fortunately,
it’s not a ‘crisis’ for us Indians yet, but the world,
especially the developed countries, is grappling with
it. As you may have guessed it, I am talking about
the rising inflation and consequently interest rates.
There is no need for me to get into the reasons for
that; I am sure you have already read about them in
the media. I would like to talk about how you can
combat this economic phenomenon.
Among asset classes, equity has a credible track
record of beating inflation over the long term. So,
it’s even more important now to have part of your
corpus in equities. The younger you are, the more
the equity component can be. Even retirees should
not be averse to equity. To get inflation-adjusted
returns during your golden years, it’s advisable that
you invest part of your retirement kitty in equity. Of
course, you must have a long-term horizon to
benefit from equities.
This issue of ‘Samriddhi’ has a couple of stories
that can help you accomplish this objective. The
lead story in this issue discusses how you can make
a profitable mutual fund investment. Mutual funds
are a very effective way to get exposure to equity.
The other lead feature is about investing for your
child’s higher education and equity has an
important role to play there. Rather, any portfolio
for a long-term goal must have an equity
component. Last but not least, do read up how you
can save money this festive season. Money saved
is money earned.
I really hope that the readers of this issue will
start their equity journey after reading it, if they
already haven’t. This single step can add even more
happiness to your life.
Cheers!
4
 EXPERT’S VIEW
Head—Investor Education and Distribution
Development, Aditya Birla Sun Life AMC
Paving the way for
prosperity this Navratri
A
s autumn approaches, an air of fes-
tivity engulfs us in a warm, comfort-
ing embrace. The humdrum in the
markets, the circling of festival dates
on calendars, and the fervour that marks plan-
ning and preparations for the upcoming festive
season – it is that time of the year when
excitement and cheer are palpable everywhere.
This year, the festive season has a special
significance. After a gap of two years, thanks
to the turbulence unleashed by the pandemic,
the festival of Navratri will herald a new begin-
ning. And any conversation about a new begin-
ning is incomplete without pondering over our
relationship with money.
It is not just the festive season that war-
rants our attention towards money manage-
ment and financial goal. Every year, on the first
Wednesday of October, World Financial
Planning Day is observed to create awareness
about the importance of financial planning.
Besides World Financial Planning Day, our
securities market regulator, Securities Exchange
Board of India (SEBI) in association with The
International Organization of Securities
Commissions (IOSCO), announced its sixth
annual World Investor Week (WIW) in India from
October 10 to 16 2022. It will be based on two
themes: investor resilience and sustainable
finance. Here are few insights that we all should
strive to work upon this festive season to enrich
our journeys of wealth creation:
5
K S RAO
The astras of knowledge and
self-awareness
The first three days of Navratri can be perceived
as your chance to put into action the value
embodied by Goddess Saraswati, the goddess
of learning. The goddess serves to remind us
that learning is an ever-expanding trajectory in
any sphere of life and this holds true in the
arena of wealth
management as well.
Building your knowledge in
the domain of financial
literacy, understanding the
workings of different
financial products, and
developing the acumen to
gauge how external factors
impact your finances is vital for a sound
financial health. This should be accompanied by
a keen introspection about your own financial
goals and capabilities (net worth) – self-
awareness works hand in hand with knowledge
enhancement for a secure financial future.
Looking up to Lakshmi, the
goddess of wealth
Goddess Lakshmi signifies wealth and
prosperity – both material and spiritual. She is
believed to be the divine power that transforms
dreams into reality. In this regard, wealth is not
just money or material well-being. It includes
the realm of the richness that we perceive
through the very experiences of life. In the
next three days of Navratri, we should strive to
incorporate the
virtues that Goddess
Lakshmi stands for in
our financial paths;
the foremost one
being to develop a
deep understanding
of how money works.
An unwavering commitment to keeping our
finances organised, paying high-cost debts
promptly, and maintaining financial discipline
by automating savings are the cardinal rules to
ensure your finances run like a well-oiled
machine in the long run.
Empowering your finances by
following Goddess Durga’s path
Goddess Durga, the unconquerable force, is also
known as Shakti or Devi and is considered to be
the protective mother of the universe. As we
celebrate the Goddess in all her glory and
splendour this festive season, let us all strive to
bring resilience and strength into our finances.
The test of any financial plan lies in its ability
to withstand unforeseen circumstances, and our
goal should be to fortify our future and those of
our loved ones with financial strategies that
manifest the strength of Goddess Durga. The
Want to ensure a healthy
environment for your finances?
Don’t miss this podcast.
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first step towards this would be to channelise
savings into appropriate investment avenues
based on our goals and risk-taking abilities. The
next step should involve creating a cocoon
through adequate health and life insurance
coverage that shields your family from
emergencies. Emphasis on tax saving for wealth
creation is also an important aspect of
strengthening finances. Finally, we should
develop the foresight to prepare a roadmap for
retirement years.
On the final day of the festival, when
Dussehra is celebrated to mark the victory of
good over evil, let us pledge to let go of
unhealthy financial habits and steer towards an
enlightened path where we value money and
keep working to make it grow by dutifully sav-
ing and investing. In fact, Dhanteras, the festi-
val that comes right after Dusshera, gives us
the chance to sow the seeds of wealth cre-
ation and put our learnings from Navratri into
action. Dhanteras is considered the most aus-
picious occasion to buy gold and other assets.
It paves the way for Diwali, the festival of
lights when we all seek blessings from the
divine to trust the magic of new beginnings.
So, this festive season, let financial planning
be the path to prosperity and mutual funds be
the instruments to create wealth.
6
 WAY TO PROSPER
DHIRENDRA KUMAR
CEO, Value Research

The un-Diwali
investment strategy
T
he best way to invest investment strategy to be fol- vacation to Europe after two
this Diwali (or indeed, lowed should depend entirely on years. You’d like `2 lakh to always
any Diwali) is to pretend what your needs are, and not on be available for emergencies.
that it’s not Diwali. In what the calendar shows. Each of these goals is very
other words, to have an un-Di- However, that immediately brings precise. The risk you can take
wali investment strategy. I realise up the question of dealing with with it, as well as the amount
that this may sound sort of sac- what your needs are and how to of money needed can be quan-
rilegious—perhaps it is—but map them on to the investments tified quite precisely.
investments are serious business you make. Therefore, it is relatively easy
and it’s never a good idea to The trick here is to divide your to decide what kind of invest-
make investing decisions based investments into specific finan- ments should be made for
on custom or habit or ceremony. cial goals, a goal being defined as each of them. Each individual
Diwali, like all other festivals, the combination of a target must have many portfolios,
is a great time to celebrate, to amount and a target date. For one for each financial goal.
be with friends and family and to example, you’ll need money for And then you can tune each
conduct whatever rituals and tra- your daughter’s higher education portfolio’s level of conserva-
ditions that are customary for after three years. You’d like to buy tiveness or aggressiveness to
your community. However, unlike a house at least ten years before the right level by choosing the
many other festivals, Diwali is retirement. You’d like to go on a right kind of assets.
intertwined with wealth and
prosperity, which makes it an
auspicious time to invest.
However, any rational analysis
as an investor would lead one to
the conclusion that there is no
reason to treat a date—any
date—as special. Whether the
date is a calendar new year like
January 1, or a traditional new
year like Diwali, or the start of a
new decade, it has no more sig-
nificance to how you invest than
your own birthday.
Therefore, I’d say that the

7

4 ways to not overspend
this festive season
T
he festive season is
here and for most of
us, it is synonymous
with shopping, eating
out, buying gifts and many such
extravagant activities. Consumer
goods companies leverage your
festive spirit to lure you into
spending much more than you
should, which is often
detrimental to your long-term
financial interests.
 So, here is some quick
advice to ensure you don’t go
overboard with spending this
festive season.
1. Make a list:  How often
do you come back from a shop-
ping excursion carrying things
that you didn’t plan to buy in
the first place? Big festival dis-
counts are a big distraction,
inducing you to buy things you
don’t really need. The only way
out is to make a list of things
you need and then stick to it, no
matter how fat the discount on
that gorgeous Armani suit you
can easily do without.
2. Set a budget: Set your-
self a spending limit and pledge
not to exceed it at any cost.
And importantly, keep track of
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financial journey.
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how much you have spent out
of it. If you find it difficult to fit
your entire shopping list in your
budget, prioritize and drop the
not-so-important items. On the
contrary, if you are left with
some budget even after ticking
all items on your list, feel proud
of your bargaining skills and use
the spare money to gift yourself
that Armani suit!
3. Do not fall for the
EMI trap: As a consumer, the
three most harmful letters for
your finances are E.M.I. EMIs
make expensive, unnecessary
things look affordable but that’s
a trap because the interest rates
hidden behind them are exorbi-
tant. Do not buy things on EMI
unless there is a dire need. 4. Keep your credit card
in check:  Just like EMIs,
buying things on credit card
amounts to spending your
future income today, and that
too at a huge interest cost. If
at all, use your credit card only
as a matter of convenience but
`
`
Rs
only to the extent that you can
pay off without rolling over the
`
`
`
`
outstanding balance to the
next month.
8
 COVER STORY

The 5 steps
to becoming a
successful mutual
fund investor
Understanding your risk profile, time horizon & discipline can
catalyse your investment performance.

9
A
conversation on
mutual funds or
any other market-
linked investment
among a gathering of people
generally sparks divergent
reactions. While some
eulogise the power of
investing, the other half of the
room becomes glum and
complains about meagre
returns—or even losses. But
how is that possible? How can
one investment vehicle be
good to some and harmful to
others?  invest in a particular asset
Perhaps, the answer lies
elsewhere. Perhaps, our
patience has failed us; or
maybe, we are not organised.
Just like, to win a marathon,
one cannot simply get up from
bed one fine day and leave
everyone behind over 26.2
miles, it is impossible to
succeed in the game of
investments without following
a process.  markets dipped in the past.  meet your financial goals that
Hence, we have developed a
simple five-step process
that can enable you to be
a successful mutual
fund investor.  investor with a low appetite
1. Know thyself
If one looks at the entire
human history, this two-word
aphorism ‘know thyself’,
meaning know yourself, is one
of the common threads that
weave through
the multi-layered fabric of
race, culture, tradition,
spiritual and scientific
framework. Even in personal
finance, this age-old adage
plays a very important role and
can determine the
final outcome of your
financial journey. 
In the world of finance, the
process of knowing yourself
is known as ‘risk
assessment’. It involves
assessing a person’s
temperament when they Only then can you choose the
asset mix between equity and
class. If you want to assess fixed-income. 
yourself, you can ask yourself However, it is equally
the following questions: important to consider the time
What will you do if markets horizon. If you have a short-
fall 30 per cent today? Will term goal, it is best to invest
you stop your SIP? Or will in fixed-income products.
you redeem your equity Fixed-income products like
investment out of fear? And debt mutual funds are often
if you have already been the most stable instruments
investing, try and remember across all mutual fund
what you did when the categories. These are ideal to
If you are someone who are due between one and
would stop their SIP or three years. 
redeem their money out of For goals that are due after
fear, you are a conservative three to five years, you can
have some exposure to equity,
for market volatility. On the depending on your risk
other hand, if you are or were appetite. But most of your
fearless and stayed invested portfolio should still be
in equities when the markets allocated to debt, providing
declined sharply, you are more the much needed stability to
of an aggressive investor and
can have a higher allocation
towards equity. 
2. Begin with the
end goal in mind
You are well-placed to form
your portfolio once you know
your risk-taking capability.
10
your investments.
For goals with a much
longer horizon, equity should
unequivocally form an integral
part of your portfolio. But
before you do that, remember
the first step of investing –
‘know thyself’, what type of an
investor you are.
It would be best if you also
rebalance your portfolio
periodically. Rebalancing takes
care of profit-booking during
a market rally and helps you
buy more equity when markets
fall. Let’s explain this with an
example. Say you split your
portfolio 50-50 between
equities and bonds. If your
equity investment grows 15
per cent, your portfolio would
become equity-heavy. This is
when you rebalance your
portfolio by selling equities at
a higher price. The opposite
holds true too. If your equity
Sensex
Those who redeemed their money out of fear in March 2020 regretted later as
the market not only recovered the losses but also reached a new high.
75000
60000
45000
30000
15000
December 2019
investment falls and bonds
rise you can sell some bonds
and buy equities at a lower
price to restore the original
50-50 balance in your
portfolio.  translates to higher returns. By
3. Invest in a
staggered manner
When one employs their
money in equities, it is best to
avoid investing in a lumpsum
(in one go). Systematic
investment plan (SIP) is the
better option. It helps you
keep investing over a period
of time. In most cases, SIPs
will do better than a lumpsum
investment over a sufficiently
long period.
To understand this, you need
to understand what an SIP is
and what it does. Since SIP
allows you to invest with a
fixed sum regularly, regardless
of the market level, you
Source: S&P BSE Website
11
automatically buy more units
when the markets are low, and
buy less when the markets are
expensive. This results in a
lower average price, which
contrast, if you invest a large
sum in one go at a time when
the market is on an upswing,
you may see your gains shrink
when the markets go down. 
4. Stay the course
It can be very tempting to dip
into your investment meant
for long-term goals (like
retirement) and use it to buy,
for instance, an expensive
phone or a car. While it is
natural to have a never-ending
list of needs and wants, one
needs to prioritise them. So,
whenever you have the urge to
take some money out from
your investment, ask yourself
if you are ready to
December 2021

compromise on your long-
term goal, such as retirement
or child’s higher education.
Similarly, you may want to
redeem your money during
market crashes. At that point,
you may think it’s the best
thing to do, but withdrawing
your investment during a
falling market may actually
lose you more money in the
long run. For instance, when
the markets crashed in 2020
because of COVID, many
investors had pulled out their
money abruptly and made
losses. But soon after, they
regretted their decision as the
markets recovered the losses
and climbed to a new high. On
the other hand, those who
stuck to their long-term plan
benefitted immensely. 
5. Exit methodically
Over the years, a large part
of the investment narrative in
the mutual fund industry has
focused on systematic
investment plans (SIPs). And
that’s only natural, given the
large population waiting to
benefit from the wealth-
creating potential of equities.
However, it is equally
important to exit the market.
What if you are nearing your
long-term goal and that
coincides with a market
crash as seen in 2008 and
2020. That’s not a pretty
picture, is it?  dream run and you achieve
This is where systematic
withdrawal plan (SWP) can
come in handy. SWP is the
other side of the investment
equation. It is the opposite
of an SIP and helps you
systematically exit equities.
The process involved is
simple: when you set up an
SWP, a part of your
accumulated corpus is
transferred to your bank
account monthly. So, you
don’t exit from equity in one
go. Just as SIPs help you
12
average your investment
costs, SWPs help you
average your withdrawal. This
ensures that you don’t
redeem your investment
during a market bottom. 
Ideally, you should set up an
SWP 18 months to two years
before your target date. In
case of non-negotiable goals
like your child’s education,
you should start even earlier.
Markets can be really wild and
a sound withdrawal plan can
go a long way in securing
your goals. 
Further, if equities witness a
your target amount earlier,
don’t fall for the lure of
earning extra returns. It’s
better to shift your funds to
debt instruments immediately.
Remember, your aim is not to
earn the maximum possible
returns but to accomplish the
goal you have set out. If you
wish, continue with your
remaining SIPs but ring-fence
the achieved target amount.
 CHOOSING A MUTUAL FUND

A mutual fund for

every need
Mutual fund investors often find it difficult to choose
a suitable type of fund from several options available.
The right approach is to match the time
horizon of your investment to the suitable
category of funds. As per Value Research,
six types of funds are sufficient to provide
for goals of different durations.
Here’s a primer.

Emergency funds and goals

less than 1 year away
Liquid funds can be a suitable
alternative
They invest in debt and money market
securities maturing in not more than 91 days.
They seek to offer reasonable returns
with low risk.

Average returns (%)

0.13 0.44 1.31
1-week 1-month 3-month
Data as on October 07, 2022.
Source: Value Research

13
Goals that are 1 year to 3
years away
Short-duration funds can be a
suitable alternative.
They invest in debt and money market
instruments such that the macaulay
duration of the portfolio is between one
and three years.
They aim to offer better returns and
liquidity than other savings instruments.
Average returns (%)
1.06 3.50
6-month 1-year
Data as on October 07, 2022; Returns over one year
are annualised; Source: Value Research
Goals that are 3 years to 5
years away
Short-duration funds are suitable in
most cases.
However, if your goal is non-negotiable,
you can add a bit of equity.
For this purpose, use equity savings
funds. They invest at least 65 per cent in
equity and equity related instruments with
the rest being invested in fixed-income.
Goals more than 5 years away
Flexi-cap equity funds can be a suitable
alternative. They invest in a diversified portfolio of
shares of different sectors and sizes.
If you want to avail tax exemption under Section
80C, go for Equity Linked Savings Scheme
(ELSS). These are similar to flexi-cap equity funds
except that they come with a lock-in period of
6.13 three years.
If you have never invested in equity before, you
5-year
can go with Aggressive Hybrid funds. These
funds invest 65-80 per cent of your money in
equity and equity related instruments and the rest
in debt instruments.
Remember: Equity funds fluctuate a lot on a day-to-day basis
but over the long term of more than five years they have
reasonably higher return potential. To mitigate the impact
of short-term volatility, always spread your investment over
several months through a Systematic Investment Plan (SIP),
instead of investing in a lump sum.
Average returns (%)
18.67 12.24 13.06
Equity
flexi-cap

ELSS 19.68 12.29 13.20

Average returns (%) Aggressive
Hybrid 16.20 10.93 11.64
2.58 10.09 7.84
3-year 5-year 7-year
1-year 3-year 5-year
Data as on October 07, 2022; Returns over one year Data as on October 07, 2022; Returns over one year are
are annualised; Source: Value Research annualised; Source: Value Research

Disclaimer: The views and opinions expressed are those of Value Research India Pvt. Ltd. and do not necessarily reflect the views of Aditya Birla Sun Life AMC Ltd
(“ABSLAMC”) (formerly known as Birla Sun Life Asset Management Company Ltd)/Aditya Birla Sun Life Mutual Fund (“the Fund”). ABSLAMC/ the Fund is not
guaranteeing/offering/communicating any indicative yield on investments. ABSLAMC or any of its officers, employees, personnel, directors make no representa-
tion or warranty, express or implied, as to the accuracy, completeness or reliability of the content and hereby disclaim any liability with regard to the same.

14
14
 COVER STORY

Not a
child’s play
Financing your child’s higher education is
getting increasingly tough. Here’s what
you should do.

15
S
chool education costs are
increasing every year. And
higher education is no
exception. While school fees
may fit into our monthly income cycle,
accumulating enough money for your
child’s higher education has become a
major financial goal. Failing to achieve
any other goal such as a foreign
vacation may make you feel sad for a
while but failing to provide your child
with the best education you can
provide would be heart-breaking, a
lifetime of regret.
This is where planning comes in. It is
the cornerstone to achieving any long-
term financial goal. How much you will
have in your kitty after a certain period
of time is a mathematical function. It
depends on how much you can invest
every month and the kind of return
your investment can generate. An
online calculator can do this job quite
well. Just enter the target amount,
assume the rate of inflation and your
expected return, and the calculator will
tell you how much you need to invest
every month.
But when you plan for your child’s
higher education, it can get complex.
That’s because it is difficult to give a
precise number to the target corpus
amount. You don’t know whether your
four- or five-year-old kid would become
an engineer, a doctor, a chartered
accountant, a teacher or something
else. There are numerous career
options to choose from, and, most
likely, there will be more options in five
to ten years’ time. In addition,
education costs vary dramatically; it
depends on the stream of education.
For example, someone who aspires to
be a doctor and do some specialisation
16
Indicative range of average higher
education cost in India
Costs vary depending on the types of institutions, say
whether it is a government, private or a premier college
Medical Education `5 to 30 lakh
Commerce and `1 to 10 lakh
Arts Education
Management `5 to 20 lakh
Engineering Education `5 to 30 lakh
from an institution abroad would need
much more money than someone who
wants to be a teacher and groom young
minds in India.
It is impossible to know the precise
amount until your child becomes
mature enough to pursue their choice.
Nowadays, it is common for children to
select a completely different career
stream from what they had planned in
high school.
No doubt, there is a lot of
uncertainty about the amount you
would need for your child’s higher
education. So, how do you plan?
Start early
There is no alternative to starting early.
Since you already have a financial goal
in mind, it is important to start
investing early. Otherwise, it would be
difficult for you to accumulate such a
huge amount over a smaller time
frame. There is no harm in building a
larger corpus than the actual
requirement, but you definitely don’t
want to fall short of it. Also, starting
early would give you enough time to
accumulate wealth by reaping the
benefit of compounding.
 How compounding works 52,362

Compound interest reinvests the interest you earn, 46,752

thereby accelerating your wealth-building process 41,743

l Amount invested* l Interest / Return earned 37,270

33,277

4,88,711
29,712

4,36,349
26,528
23,686

3,89,598
21,148

3,47,855
3,10,585
18,882
16,859

2,77,308
15,053

2,47,596
2,21,068
13,440

1,97,382
12,000 1,76,234
1,57,352
1,40,493
1,25,440
1,12,000
1,00,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
*Interest/Return earned during the year is added to the principal and re-invested in the next year.
We have assumed a return of 12% p.a.

Let’s understand the power of revisit your goal and make the required
compounding through an example. Say adjustments. For example, parents of a
you invest `1 lakh in a product that Class 11 student would have a clearer
yields 12 per cent annually. The vision of their possible career choice
interest at the end of year one would than those whose children have just
be `12,000. In the second year, the 12 started going to school.
per cent interest would be calculated
by adding the principal (`1 lakh) and Where should you invest?
the year-one interest (`12,000). That’s Once it is clear that you must start
12 per cent multiplied by `1.12 lakh.
Essentially, your money grows much Want to turn your children into
faster than simple interest. While the financial savvy adults of tomorrow?
difference may not look huge in the Don’t miss this video.
initial years, compounding can turbo-
Scan Here!
charge your investment the more years
you give it. No wonder Albert Einstein
called compounding the eighth wonder
of the world.

Revisit the goal periodically and

adjust accordingly
Once you start getting an idea about
your child’s education decision, you can

Disclaimer: The views and opinions expressed are those of Value Research India Pvt. Ltd. and do not necessarily reflect the views of Aditya Birla Sun Life AMC Ltd
(“ABSLAMC”) (formerly known as Birla Sun Life Asset Management Company Ltd)/Aditya Birla Sun Life Mutual Fund (“the Fund”). ABSLAMC/ the Fund is not
guaranteeing/offering/communicating any indicative yield on investments. ABSLAMC or any of its officers, employees, personnel, directors make no representa-
tion or warranty, express or implied, as to the accuracy, completeness or reliability of the content and hereby disclaim any liability with regard to the same.

17
investing as early as possible, the next
question that comes to mind is – where
should you invest? Well, the ground
rules for investing would remain the
same. Here also, the time horizon and
your risk appetite ultimately define your
investment avenue.
It is recommended that one invests in
equities for a goal that is more than
five years away. And it is applicable to
financing your child’s education too.
That’s because equities help you earn
inflation-beating returns and are
considered the most suitable asset
class for long-term investing.
To keep things simple, one may
choose equity mutual funds. You will
not have to worry about which stocks to
buy and when to buy them. An equity
fund investment can do this for you in
exchange for a small fee. But it is
always advisable to invest in mutual
funds through SIPs, and not in a lump-
sum (one-time large amount). SIPs help
you invest a fixed amount from time to
time, regardless of how the market is
performing. It helps you buy more units
when the market is low and buy less
when the market is expensive. This
results in a lower average price, which
translates to higher returns.
Those who get quickly unnerved by
sharp market ups and downs or are
investing in equities for the first time
should start with aggressive hybrid
funds. These funds invest about
20-35 per cent of your investment in
fixed income, which is less volatile.
Once you get comfortable with market
movements, shift to pure equity funds.
But wait, simply investing does not
ensure you will be able to provide the
required financial support for your
child’s higher education. No doubt,
18
Wondering how to give practical
financial knowledge to your
children? Listen to this podcast.
Scan Here!
making investments is the preliminary
requirement for this purpose. But you
can only achieve your goal if you can
utilise the accumulated amount at the
defined time.
Planning the exit
Equities are volatile by nature, and you
should never wait till the last moment
if you have invested in equities. This
is why it is essential to set up a
systematic withdrawal plan (SWP) and
stagger your exit over a period of
time. Ideally, it would help if you
gradually moved from equities to a
avenue like bank deposits or debt
funds about 18 months to two years
before you are required to pay for your
child’s higher education.
This ensures you don’t sell your
mutual fund when the market is not
performing well. Of course, this also
means that you don’t sell out at the
top either. But then, without the
benefit of hindsight, who can tell
when the market has made a top? And
indeed, no one would like to take that
kind of risk when it comes to
achieving such a crucial financial goal.
 brought to you by

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queries at Investors’ Hangout, which is an investor
education initiative broadcast on YouTube and Facebook.

The best mutual fund

How can I choose the best
mutual fund?
Brij
The best fund depends on
your goals, time horizon and
experience in the market.
‘Best’ is therefore a relative
term. If you are a short-term
investor and have never
invested in a fund, a liquid or
an ultra-short-duration fund
will be ideal. If you are invest-
ing for the long run with the
goal of saving taxes, a
tax-saving fund will work best.
If you are a first-time investor
with a long-term view, you can
invest in an aggressive hybrid
fund. If you are an experienced
investor with a long-time hori-
zon, a flexi-cap fund will be
the best option for you.

There is no ‘best’ fund. It actually depends on your goals, time horizon and
experience in the market.
19
Of silver ETFs and index funds
What is the difference performance. Interestingly, you  In case of silver ETFs, all
between Silver ETF and can invest in Sensex or Nifty your money is invested in silver.
Sensex/Nifty index? through index funds. These Your return depends on the price
funds mirror the performance of silver, after accounting for
Anoop of either of the two indices. the expense ratio of the
Sensex is an index that For instance, if the Sensex rose exchange-traded fund (ETF) and
comprises stocks of India’s 30 10 per cent in the last 12 the inefficiency between ETF
largest companies. Nifty, months, your index fund price and silver price. Put sim-
meanwhile, is made up of 50 investment would grow 10 per ply, ETF silver helps you invest
well-established company cent as well, after taking in silver as compared to index
stocks. These indices help expense ratio and tracking funds investing in a bunch of
reflect India’s stock market inefficiencies into account. company stocks. 

Compared to investing in a bunch of companies as in the case of Sensex/Nifty,

Silver ETFs invest in silver.

Make the most of your NPS investment

How to get maximum ben- in equity after the age of 35, Besides, with the NPS, investors
efits from my NPS invest- while in the second option, the enjoy the benefit of changing
ment? maximum allocation towards their asset allocation between
equity is restricted to 75 per cent equity and fixed income without
Vivek up to the age of 50.  incurring any extra charges. 
While investing in the NPS, When it comes to long-term Last but not least, NPS Tier 1
investors get two investment investments, one should allocate allows investors to claim an addi-
options: ‘Auto’ and ‘Active’. If you as much as possible to equity. tional tax benefit of up to
opt for the first option, you can- And that can be done only when `50,000.
not invest more than 75 per cent you opt for the ‘Active’ option.

NPS investors get an additional tax benefit by claiming a deduction of up to

`50,000 from their taxable income.

Investing for the first time

I am a 50-year-old first-
time investor. In which
mutual fund should I invest?
Naresh
You can invest in an aggressive
hybrid fund for the next three
years through an SIP. Invest as
much as possible and be regular
with your investment, irrespective
of the market movements. An
aggressive hybrid fund invests
about 65 per cent in equity and
the rest in debt. This allocation
can act as a cushion if and when
markets fall. Hence, aggressive
hybrid funds are best for first-
time investors.
You don’t need too many funds
for this. Just select one or two
good aggressive hybrid funds and
invest in them through SIPs. Even
if you have an accumulated
amount, do not invest it in a lump
sum (in one go). Once you have
become accustomed to market
movements, you can shift to a
flexi-cap fund. Being pure equity
funds, they are riskier but also
have higher return potential.

Aggressive hybrid funds are best for first-time investors.

Disclaimer: The views and opinions expressed are those of Value Research India Pvt. Ltd. and do not necessarily reflect the views of Aditya Birla Sun Life AMC Ltd
(“ABSLAMC”) (formerly known as Birla Sun Life Asset Management Company Ltd)/Aditya Birla Sun Life Mutual Fund (“the Fund”). ABSLAMC/ the Fund is not
guaranteeing/offering/communicating any indicative yield on investments. ABSLAMC or any of its officers, employees, personnel, directors make no representa-
tion or warranty, express or implied, as to the accuracy, completeness or reliability of the content and hereby disclaim any liability with regard to the same.

20
Generating income with the accumulated corpus
How to create a retirement
plan with a `25 lakh
corpus?
Subhash
When it comes to allocating your
retirement corpus, you need to
follow a mixed approach.
Allocate some portion to fixed
income and some to equities.
The basic premise should be that
your investments can provide a
stable, dependable income but
at the same time, they are able
to generate adequate returns
that can protect you from infla-
tion in later years. So, invest at
least 30–40 per cent of the cor-
pus in equity and the remaining
in high-quality, fixed-income
instruments and rebalance your
allocation periodically.
Now, of this `25 lakh, you
should aim to invest `10 lakh
in conservative equity funds
and the remaining `15 lakh in
fixed income. Of the fixed-in-
come avenues, you can invest
`12 lakh in the Senior Citizen
Savings Scheme (SCSS) to
generate stable income and
the remaining `3 lakh in
short-duration funds to make
the rebalancing efficient. Also,
to support a rising, infla-
tion-beating income, keep your
withdrawal rate within 5 per
cent per annum. In this case,
start by withdrawing `1.25 lakh
in the first year and aim to
increase the amount by 5 per
cent every year.

When it comes to allocating your retirement corpus, one should allocate some
portion to fixed income and some to equities.

Locking your profits

Is there a way to lock prof-
its I have already earned
on my mutual fund invest-
ments?
Vansh
The market is unpredictable.
Look at everything that happened
in the last two-three years. The
pandemic hit, everybody panicked
and the market collapsed in
March 2020. But, within a short
span of time, everyone came
back to the market. Everybody
started investing – rather invest-
ing more – and the market ulti-
mately revived. But no one was
anticipating that the market
would bounce back so quickly
and steeply.
Many investors feel there is a
need to time the market for
booking profits. But with the
market being so unpredictable,
timing them perfectly isn’t possi-
ble. In fact, what matters is time,
not timing, as it is extremely dif-
ficult to anticipate events and
time the market. So, devise an
asset-allocation plan in line with
your risk appetite, financial goals
and the scale of money. And
then, just follow it without get-
ting disturbed by market move-
ments. That’s the only way to
lock your profits with surety.

Devise an asset allocation plan and follow it without getting disturbed by

market movements.

PPF after retirement

I superannuated in 2020 amount in PPF every year It’s good to know that you
but still invest in the after investing in the have always invested and are
Public Provident Fund Senior Citizens Savings still able to do it.
(PPF). I don’t want to Scheme (SCSS) and Post Your money in the Senior
invest the entire amount Office Monthly Income Citizens Savings Scheme
in mutual funds. So, I Scheme (POMIS). Am I (SCSS) and Public Provident
continue to invest the right in doing so? Fund (PPF) is sheltered by the
maximum possible sovereign guarantee. Thus,
Taposh
Disclaimer: The views and opinions expressed are those of Value Research India Pvt. Ltd. and do not necessarily reflect the views of Aditya Birla Sun Life AMC Ltd
(“ABSLAMC”) (formerly known as Birla Sun Life Asset Management Company Ltd)/Aditya Birla Sun Life Mutual Fund (“the Fund”). ABSLAMC/ the Fund is not
guaranteeing/offering/communicating any indicative yield on investments. ABSLAMC or any of its officers, employees, personnel, directors make no representa-
tion or warranty, express or implied, as to the accuracy, completeness or reliability of the content and hereby disclaim any liability with regard to the same.

21
these investments will fail only
if India as a country fails. The
Post Office Monthly Income
Scheme (POMIS) also falls
under the same category.
If you have successors and
wish to leave a larger estate
for them, you should take a lit-
tle chance with your invest-
ments. That’s because most
investors do not understand
that the risk lies in thinking
short-term with investments.
Equity is very risky if you are
investing for three months or
three years. However, if you
invest in equity for 10-20
years, the likelihood of losing
Wondering how
money is zero. Had someone
an investment
invested in Sensex (hypotheti- advisor helps?
cal) on the worst possible day Watch this video!
(when the market is expensive) Scan Here!
and redeemed their investment
on the worst possible day
(crashing market) after a peri-
od of 10 years, the likelihood
of losing money is zero.
Thus, if you are likely to
remain invested for a very long
time, which it looks like, leave investing a meaningful amount
a larger estate by investing in in mutual funds, assuming you
equity. In equity, the risk gets can save a decent amount
reduced with a large invest- after meeting your expenses.
ment horizon. Thus, start

If you invest in equity for 10-20 years, the likelihoodof losing money is zero.

Get mutual fund ideas to invest wisely

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for ideas and answers to
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22

Modernity
meets heritage
Delhi offers a delightful blend of a rich cultural heritage
and a cosmopolitan lifestyle.
D
elhi is much more than
the nerve centre of the
Indian political establish-
ment. From rich Mughal heritage
to the grandeur of the colonial
era to the swankiest shopping
malls, it has something to offer
to every leisure traveler.
Red Fort
Recognised as a World Heritage
Site by UNESCO in 2007, Red
Fort was built by Mughal emper-
or Shah Jahan in 1639. It was
used as the political center of
the Mughal state and also the
main residence of the Mughal
dynasty for around 200 years.
TRAVEL DELHI
As the name suggests, it is
made up of red sandstone. The
Prime Minister hosts the nation-
al flag from here every
Independence Day.
Chandni Chowk
Chandni Chowk or Old Delhi is street food, shopping and old
almost adjacent to Red Fort. It architectural designed Havelis. The
is one of the oldest markets, place has wholesale market for
the origin of which is associated books and stationery items,
with the establishment of Red clothes, spices and electronic
Fort. Originally, the market had goods. A must visit place for street
1,560 shops and was square food lovers and shopaholics.
shaped with a pool in the centre
which used to shimmer in Qutab Minar
moonlight. Qutab Minar is a 73 metre high
Chandni Chowk is famous for tower constructed in 1193 by
23
 Qutab-ud-din Aibak. It has five
distinct floors, each marked by a
projecting balcony and tapers
from a 15 metre diameter at the
base to just 2.5 metre at the top.
The first three floors are made of
red sandstone; the fourth and
fifth are of marble and sand-
stone. It also houses the first
mosque of India, Quwwat-ul-
Islam Mosque. The courtyard of
the mosque has an iron pillar and
it is believed that a wish is ful-
filled if anyone is able to encircle
it with his hands while standing
with his back to it.
India Gate
It is a war memorial to 70,000
soldiers of the Indian Army who
died in the period 1914–21 in the
First World War. It is 42 metre tall
and lies on Rajpath. India Gate is
hexagon shaped and covers
approximately 3.6 lakh square
metres in area. The best time is
to visit is around sunset or at
night which gives an illuminated
view of the India Gate. The place
is flocked by locals.
Lotus Temple
Also known as Bahai Temple,
it’s architectural beauty draws
tourists in large numbers. It is
surrounded by landscaped gar-
dens, nine pools and red sand-
stone walkways. The temple is
built in the shape of the Lotus
flower. 27 white marble petals
are grouped to form nine sides.
It is a symbol of purity, beauty
and divinity. A must visit place
for people with interest in archi-
tecture, Bahai faith and photog-
raphy.
Hauz Khas
Hauz Khas Village is a mix of
heritage, nature, and modern
life. It has a fort, a lake and
plenty of places to enjoy the
night-life of Delhi. Quite close to
South Delhi, the place can be
visited for a nature walk along
the lake which has beautiful
Swans. There’s also a Deer Park
in the vicinity. After enjoying the
nature, you can head to the
urban village for a drink or to eat
at a restaurant of your choice.
24
Dilli Haat, INA
Dilli Haat is located in the com-
mercial centre of South Delhi. You
need to pay a nominal entrance
fee. It is an open food plaza,
offering cuisines from different
states of India along with hut
shaped Kiosks selling craft prod-
ucts including wood carvings,
junk jewellery, handlooms, etc.
Worth a visit
} Connaught Place
} Sarojini Nagar Market
} ISKCON Temple
} Jama Masjid
} Gurudwara Bangla Sahib
} Akshardham Temple
} Rashtrapati Bhawan
} Jantar Mantar
} Humayun’s Tomb
} Rail Museum
} Khan Market
} Raj Ghat
} Birla Mandir
} Feroz Shah Kotla Fort
} Purana Qila
} Delhi Zoological Park
} Lodhi Gardens
} Nizamuddin Dargah
} Shankar’s International Dolls
Museum

A divine place
There’s more to Katra than just the Mata
Vaishno Devi Temple.
L
ocated about 42 kilometres
from Jammu and 685 kilo-
metres from Delhi, Katra is
a popular destination among
Hindus as it houses the Mata
Vaishno Devi Temple. But the
place has much more to offer—
from a hill station to a Mughal
garden to an underground aquari-
um. So, let us look at some of
the popular destinations you
should take time out to visit
while in Katra.
Maa Vaishno
Devi Temple
Situated in Trikuta hills, about 13
kilometres from Katra, Maa
TRAVEL KATRA
Vaishno Devi Temple doesn’t need
an introduction. It is a very
famous Hindu Temple that several
millions of people visit every year
to seek the blessings of Maa
Vaishno Devi.
In Hindu mythology, it is said
that Bhairav Nath, a tantrik baba,
fell in love with Mata Vaishno
after seeing her in a mela (fair).
Following which, she fled to the
Trikuta hills to escape his amo-
rous desires. Later, she cut off his
head with her sword after taking
the form of Badrakali.
To reach the temple, one must
climb a distance of around 13
kilometres. Those who do not
25
want to climb on foot can take
the services of a helicopter.
Ponies, palkis and pithoos are also
there to help you climb up. 
While the temple is open
throughout the year, the best time
to visit is between the months of
March and October, as the weath-
er is quite pleasant. It generally
experiences snowfall in December
and January.
Patni Top
It’s a hill station, situated near
Udhampur city, about 95 kilo-
metres from the Mata Vaishno
Devi Temple. Located at a height
of more than 6,600 feet, it can
be a perfect destination for
adventure lovers. It houses
India’s highest ropeway—
Skyview Patnitop. In fact, it is
the most extensive Indo-French
collaboration in mountain infra-
structure development.  by flowers and lawns.
Spanning over 800 meters
between eight towers, the rope-
way is a must-visit for adven-
ture lovers.
Raghunath Temple
About an hour’s drive (43 kilome-
tres) from Katra, Raghunath
Temple is located in the city of
Jammu. Maharaja Gulab Singh
and his son had built this temple
in the 19th century. Though the
temple houses many gods, it is
mainly devoted to Lord Ram. The
temple has huge gardens and
seven ‘shikharas’. A shikhara is a
rising tower of a temple in
north-Indian architecture.
Shiv Khori
Located in the Ransoo village of
Reasi district, about 24 kilometres
from Katra, Shiv Khori is a cave
devoted to Lord Shiv. It’s a natural
cave, about 200 metres long, one
metre wide and two to three
metres high. Shiv Khori also
houses a self-made lingam. The
first entrance of the cave is so
vast that 300 devotees can be
accommodated at a time.
26
Bagh-e-Bahu
Built in the surrounding areas of
Bahu Fort, Bagh-e-Bahu, which is
around 50 kilometres from Katra,
is a Mughal garden accompanied
Bagh-e-Bahu also houses
India’s largest underground aquar-
ium with over 400 different fish-
es, including piranha, bubble eye,
red shiner and shark catfish. It’s a
popular attraction among locals
and tourists, especially if you are
with children or like aquatic life.
Meanwhile, Bahu Fort is
built with sandstones at a
height of 1,000 feet on the
bank of River Tawi. 
Worth a visit
}Charan Paduka
}Ban Ganga
}Bhairavnath Temple
}Baba Dhansar
}Himkoti
}Sanasar
}Jhajjar Kotli
}Ranbireshwar Temple
}Dera Baba Banda
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Disclaimer: The views and opinions expressed are those of Value Research India Pvt. Ltd. and do not necessarily reflect the views of Aditya Birla Sun Life AMC Ltd
(“ABSLAMC”) (formerly known as Birla Sun Life Asset Management Company Ltd)/Aditya Birla Sun Life Mutual Fund (“the Fund”). ABSLAMC/ the Fund is not
guaranteeing/offering/communicating any indicative yield on investments. ABSLAMC or any of its officers, employees, personnel, directors make no representa-
tion or warranty, express or implied, as to the accuracy, completeness or reliability of the content and hereby disclaim any liability with regard to the same.

27
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