Alice in Wonderland!

May 29th, 2009- May 31st, 2009 makes its place into the special dates of my memoire...The day seemed a haze till I entered the IIMB campus. Once inside those compound walls, I knew my world will never be the same again.
Therez some magic in the air within those compound walls...the next 2.5 days were like a dream. Still can’t come to terms that all the activities and tasks we did were in just a span of 2.5 Days.

Day 0:
It began with a BIG debate on “Executive MBA- a faster way to the Top” on 29th May evening. The panelists were Wipro Global delivery Head, Accenture HR Head, an alumnus of PGSEM and Prof Sheshadri.While the Wipro Global delivery Head and Accenture HR Head presented a very pragmatic (and bordering on discouraging ..:) ) viewpoint of how PGSEM is perceived by the industry, Prof Sheshadri presented a philosophical viewpoint and questioned the very “topic” and made us think on what was “TOP”. He made us ponder over matters like, was the destination a function of speed—and how would one decide over the “pace” when the destination itself was not clearly defined. The point that I liked the most was he said the mangers today mostly use their heads. What would and should be the differentiator is the participation of heart and soul along with head in decision making.The Alumnus commented on the selectivity criteria of PGSEM vs other programs.

PGSEM Chairperson Prof Venkatgiri aptly closed the evening with an anecdote where he mentioned how difficult it was at Laddhak at 18000 ft where he was yearning for oxygen and how much he appreciated the beautiful valleys at 11000ft. He drove down the point to us that “TOP” need not necessarily be pleasant.

The evening formally closed with a talent show and antakshari. We were then handed BLITZ Case assignment. We were up till 4.00 am working on it thinking we'd done a decent job only to realize how mediocre it was when Prof LS Murthy presented the Case Analysis the next day.

A guest speaker Sanjay Anandaraman gave a speech on entrepreneurs vs managers. Amongst some great speeches from Profs, case assignments and a surprise quiz( on Quants, Macro economics and Fin Accounting), we also had some team building activities( solving a murder mystery which my team won. Hale Team B!!!) and a house cup we were competing for( which again my team won..:)Hurrah Humdingers!!! ).

I did feel the point reiterated by the profs all through the orientation that Journey was more important than reaching the destination---that the winning process of achieving the house cup was more enjoyable than the moment of holding the House Cup.
Overall, it was great fun with alarmingly high level of energy!

Cant wait for the hell to unleash starting June 19th!!!

Making the best out of ULIPs

If you have invested in ULIPs, here are a few suggestions to make the best out of it

Use “Switch” Option to the fullest. (4 are free)
The intent must be to increase the number of units accumulated and in the right bucket.


What are Units and how are they allocated?

Let me explain with the example of ICICI Prudential Life Time Pension Plan. The premium amount is invested in various funds as per your instructions.

For ICICI Prudential Life Time Pension Plan, following are the Funds

Pension Balancer (Balanced)
Pension Flexi Balanced
Pension Flexi Growth
Pension Maximiser (Growth) Plan
Pension Preserver (Short Term) Fund
Pension Protector (Income) Plan


You can choose the percentage distribution on the above funds for your ICICI Prudential Life Time Pension Plan.



Say for instance, I chose the following distribution:

Pension Balancer (Balanced) – 85%

Pension Maximiser (Growth) Plan -15%



Based on the premium paid and the NAV of the chosen funds in the market on that day, the invested money( premium amount) is used to buy as many units of the Fund.

For eg,

* if you paid the premium of 10,000, after some allocation charges are deducted, say 9000 is left.

* 9000 will be divided into 2 buckets—

1. 15% of 9000 = 1350;

2. 85% of 9000= 7650;

* Assume the NAV of Pension Balancer (Balanced) is 25.00 Rs and Pension Maximiser (Growth) is 50.00 Rs

* You would have the following number of units in each bucket

1. Pension Balancer (Balanced) – 306 Units (7650/25)

2. Pension Maximiser (Growth) – 27 Units (1350/50)



What is Switch?

Switch is an option for you to change your fund allocation.

For instance, switch allows you to move from the earlier allocation of Balancer(85)- Maximizer(15) to Balancer(10)- Maximizer(90)



Why Should I switch?

Some funds show better growth than the others.

For instance on the day you wish to redeem your Policy, the NAV of Balancer is 30 and Maximizer is 70,

With the Initial allocation of Balancer(85)- Maximizer(15), you would get =306*30 + 27*70 = 11070

But if your allocation was Balancer(10)- Maximizer(90), you would get =(10% of 9000/25)*30 + (90% of 9000/50)*70 = 12420



Implying, there was a better allocation you could have chosen for maximizing your returns (more than 10% difference w.r.t the initial plan)



Switch helps us by giving options to change fund allocations and hence maximize your returns



How does Switch Work?

Lets build on the above example. To refresh, you had taken the policy with Balancer(85)- Maximizer(15) and you have 306 and 27 units respectively.



The current NAV of Balancer is 30 and Maximizer is 70; You wish to make a switch

You have 3 options: Switch based on percent, units or amount.



Here, I will explain the switch through switch by percent. You can move x% from Fund1 to Fund2.

I wish to move 50% from Balancer to Maximizer.



In current market at the NAV of 30, 50% of 306 units of Balancer would amount to 306*30*50/100 = 4590.00;

Also 4590 is worth 4590/30= 153 units Balancer



With 4590.00, I can buy 4590/ 70(Current NAV of Maximizer) = 65.6 units of Maximizer

Hence my new units allocation would be, Balancer (306- 153= 153) and Maximiser (27+65.6= 92.6)



Your Fund value as per the new allocation (after switch): 153*30 + 92.6* 70 = 11070



If in future, the NAV Balancer is 35 and Maximizer is 90

Per old allocation fund value would be = 306*35+ 27*90 = 13140

Per new allocation fund value would be = 153*35+ 92.6*90 = 13686



Any guidelines for Switch:

When the market is on a low, switch to Balancer
When the market is on a high, switch to Maximizer
This will help you accumulate more units in each bucket

Before you decide to redeem, (one would usually do it when the market is on a up so that you get the max benefit), moving to maximizer should be profitable.

Wake up and take charge!

Do you sufficintly respect the money you earn? Do you understand your pay slip? Do you know how much tax you pay? Do you know what yu have been doing for tax exemptions?

If these questions were thrown to a group of ladies( in my circle), I can tell without so much as a blink that the majority would NOT answer in affirmative.

The sad but seemingly true fact with the majority is that, its "her" dad who handles her planning. The dad figure is replaced by the husband figure later.. And may be the sons when the lady is much older..

And I have been no exception until recently.

Without getting into the "whys" or reasoning the behavioral pattern, herez what I did to get into the bracket of the seemingly elite who unedrstand their monitory planning.

The ans was very simple and simply in Understanding the market and the various products available. Based on the way I chose and found effective, here are some tips---
Bottom Line: Just Do it! First take the leap (small one)-- then think!

a. Shares:
----------
1. Start investing small time ( start from as small as Rs 500.00 per month) in equity market ( icicidirect.com is quiet handy)
2. Once you have your money in it, you would start following the news/happenings that impacts your money
3. And once you get into the groove, there is no stopping you.
4. No amount of reading without getting your hands in the mud helps.

Remember: Dont treat the first couple of Rs 500 as too dear. Imagine it to be the money you spent on auto-rickshaws that month!

b. Mutual Funds:
-----------------
The chance that you still havent got into the MF Ship, is very rare.. atleast in the current situation...if you have been trying to do something to lessen your tax-payable.
If you havent yet got into the ship, SIP is a good option-- Rs 1000/month into MFs meant for tax exumption under 80C to start with is again a pretty neat thing. If you want to know which ones to invest in, visit moneycontrol.com or any icici branch and have a chat with a MF advisor. He would give you a list of MFs and some sites that you can study to understand the suggested MFs history.


Remember: Again, once you have your money in the market, you would start using sites/portfolio managers like moneycontrol and that triggers the process of you watching your money. Once you start watching your money, you start following the trend and then, unconsciously, you start getting up-to-date and start understanding some investment options and then start venturing into a few.
Overall, you become more conscious of your money and the market situation at the expense of Rs 1000 each month. And this money also helps you do you tax planning.Pretty neat deal ha?

c. FMP: A less adverstised ,low-risk option
--------------------------------------------
FMPs are open only for a small window( 4-5 days); This works similar to an FD. More info below..

A few questions you might have...

Q1. Due to lack of info or want to take risks, have you invested in FDs?
A1: If yes, there is a better option: Fixed Maturity Plan(FMP). FMPs are especially attractive because they have better post tax benefits that FDs.
I will not elaborate more on what the post tax benefits are here and spoon feed you... go, and read it yourself...:)
Things you want to understand before going for FMP:
1. Are you chosing Growth/ Dividend option? Dividend is better for short term investments.
2. If Growth( i.e. fro long term investment), are you going for with/ without indexation?

Q2: Have you invested in NSC? Do you know it is an option that earns you the least interest?
A2: FMP is a much much better option.

Q3: Have you invested in ULIP? Do you have a lapsed ICICI policy? Wondering if it is worth renewing? Are you getting different solution options that are contradicting/ confusing?

A3: ULIP is one of the good options available in the 80C products basket.
Here was my situation:
1. I had purchased an ICICI Prudential Life Time Pension Policy in 2004; I paid the first premium; The product had a 3 years lock-in and mandatory payment of first 3 premiums.I travelled onsite; I hadnt chose ECS and hence defaulted on teh mandatory premium payments.
I got different/ contradictory/ peace meal solution options from ICICI contacts. I was totally pissed off. I was suggested I forget the firs premium and ditch the policy.

After months of research, Herez what i gathered. And the good news is I am renewing the policy without any ICICI nit-wit officer giving me incorrect pointers.
1. Register yor policy on iciciprulife.com
2. You can make payments, switches etc online-- all on your own.
3. You can chat with an Advisor can get clarifications in writing.

Solution to my case:
1. Pay the due premiums ( between 8.00am and 3.00pm online- this constrainst is policies that are lapsed fro more than 6 months)
2. I can close my policy anytime after it is in-force. ( Ofcourse i will take this decision based on the fund value)

Overall, Collect info from as many sources..But, ultimately let it be you who should be taking the decision and responsible for it.

(Would like to express my opinion on why Women should plan their finances more rigorously... some other time.. tired of typing for now..)

Thanks Blogspot

yesterday, had a interesting conv with one of my colleagues-- seems he'd stumbled on one of my posts in the past-- a post that was oozing feministic views... guess it was written on one of those days when i ran into unpleasing samples of the opposite gender....:)
Lately have been so occupied in keeping up with the pace and running the race of the new life, that therez hardly been the inclination or time to observe any entity thats not family.
So getting back to the conv, when V asked if i still held my feministic views, I was at loss...because honestly, i couldnt recall the old references.. and that made me visit my blog again.. read a few of my old posts... relived some of those moments, raked the pages of past that had so much zest for life...

Thanks V.

I also sketched ysterday! Felt wonderful...But, for the first time noticed something different about me..

In the past whenever i've skecthed,i've known the thought behind it.. the abstractions and the strokes have been deliberate. But yesterday, for the first tiem, i did not understand my sketch. There was no specific idea or intent... something just unfolded...
Umm... not sure if this is positive development.. I am in the habit of knowing what my mind thinks...

IPL

The two things you get to hear on every FM channel these days is "Jinke mari na" and about IPL. This post is on teh latter. BTW, i find "Jinke mari na" totallt totally irritating!!!



At home, the dinner-time kannada serials have been taken over by IPL matches. My family isnt one of those that has taken on to IPL becuase its shorter and glamorous ! My family has always been a fan of the game.



Of course, my loyalties would be with Royal Challengers-Bangalore, though they arent doing great. But, I stand fascinated by Rajasthan Royals!- Full marks to Shane warne for doing a spectacular job with a bunch of mostly unknown Indian youngsters.

My sympathies with Deccan Chargers-- Poor Laxman, I think he must blame it on his stars..

I think Kings XI Punjab are the cutest of the lot. I like Delhi daredevils for Gambhir and McGrath! Chennai Superkings are interesting. I wish good to Mumbai Indians-- I look forward to them being able to shut a lot of mouths on the discussion of experienced players not having what it takes for a T20. The only team i have negative emotional attachment with in Kolkata Knight Riders- I just dont like them..and may be its got to do with SRK...

Back to Begining

Like I mentioned in my previous post, my bench days are over. And frankly, I cant wait to get back into regular hung-ho of deliveries that I sooo wanted a break from a while ago...
May be because the "while" lasted for 3 months..:)

Anyways, the news is that I am back to NM! Its what I began my career with at Infosys. The only difference though is that this time, its a new Area and a new DC! Well, if you have ever been a part of Minfy, you know that these 2 factors make all the difference!

Well, my true reason for accepting to join back NM was I liked some of the challenges in the Project. With a long running and friendly client like NM who treat Infosys as partners, there i saw this one project which seemed an aberration from what you would normally expect in an NM Project!
So, the next gyan post you see might be on "Managing Tough Clients" or "How to get your client to ask you what you want and the way you want"...
Lets see!.. Have a few strategies.. watch out for another "case study on me".. but that'll be a while from now..

Words of Wisdom from My Manager

If you want to be respected as a Manager,
1. Do not delegate anything "You Dont Want to do".
Reason being simple- If you dont like doing it, the possibility that someone else would is also low.As a Manager, do not delegate unless when
a. You Can do, but want the next-level leads to pick up
b. You want to do, but inntelligent planning requires the next-level involvement

2. Never do what you are good at a second time.If you have done it once n you know it well, encourage and guide your next-in line to do it next time.

nanna voluvina nandana

Ade bhoomi ade bhanu... ee nayana noothana
ade dari ade thiruvu.. ee payana noothana

Inspired by TOI

The person who has had the most positive influence in 2007- Baba Ramdev
The person who has had the most negative influence in 2007- Deve Gowda and family

abhi pikture baki hai...

and i thought my flu-time was over!
yesterday B'lore recorded 12.7 degree celsius... the lowest in 16 yrs...

realized my resistance to the temperature has reduced considerably since the MKE days...