Born into a world of constant connectivity and boundless information, Gen Z is navigating adulthood with habits and preferences that set them apart. As per UN World Population Prospects 2022, more than 50% of India's population is below the age of 25, and over 65% is below the age of 35. The future of our nation depends on the youth, i.e. Gen Z (born between 1997 and 2012). These young adults are likely just starting to enter the workforce or at the early stages of their careers.
To succeed in any endeavour, it is important to set goals. Whether it is a game of football or investing, goals shape the game plan and provide direction to your efforts. Before investing, it is important to set financial goals and quantify them. Financial goals should be SMART - specific, measurable, attainable, realistic, and time-bound. Setting such goals not only help you build a plan but also streamline your investment journey.
When it comes to investing, a plethora of options are available, but trusting your hard-earned money with these products is the real challenge. Investment instruments ranging from highly safe fixed deposits (FDs) to extremely risky speculative instruments such as options are available for investing at your disposal. However, one needs to draw a perfect balance between risk and return so that one can build sizeable wealth with peace of mind. The choice of the right product should be based on your risk profile and your financial needs.
A debt trap refers to a vicious cycle of borrowing, struggling to meet debt obligations, and consequently accumulating more debt to cover existing payments. The term debt trap is associated with the inability to exit this perpetual cycle, leading to financial hardship. Generally, young adults are at a higher risk of falling into a debt trap since they are just at the start of their careers, and the expenses can mount up, nudging them to opt for loans.

Moreover, in a bid to live flamboyant lifestyles, young adults are also turning to credit cards. If you want to use credit cards for your expenses, you should use them rationally, maintain a credit utilisation ratio, and make timely payments. These mistakes can negatively impact your credit score, making it difficult to borrow in the future. Hence, it is important to avoid such credit mistakes and budget carefully to avoid a debt trap.
Gen Z lives in a highly connected, virtual world. With the advent of technology, everyone is now closer than ever digitally. Hence, Gen Z can often become the victim of greed and desire by comparing their lifestyle with others. Moreover, Gen Z often tends to follow the newest trends and practices. A new trend, 'soft saving', is getting quite popular amongst Gen Z. This phrase refers to living a luxurious lifestyle now and saving minimally for the future. This approach can prove to be detrimental to your future, leading to a paycheck-to-paycheck lifestyle with little left for your future financial goals. It's essential to strike a balance between your desired lifestyle and allocating funds towards your financial goals.
To build wealth, it is imperative that you start investing early. As soon as you get that first paycheck, setting an amount aside for investing is the wise thing to do. When investments are started early and done for the long term, the power of compounding can turn small investments into huge funds. For instance, if you had invested Rs 1,00,000 in Sensex TRI 25 years ago, then its value today would be Rs 34,89,772, an XIRR of 15.26%. However, if you had invested Rs 1,00,000 in Sensex TRI 15 years ago, then its value today would be just Rs 9,17,060. Hence, it is essential to start your investment journey as early as possible.

(Source Ace MF. The investment periods taken into consideration are -
25 years - 31 Dec 1998 to 31 Dec 2023
and 15 years - 31 Dec 2008 to 31 Dec 2023.)
SIPs or systematic investment plans in mutual funds offer a flexible, systematic, consistent, and disciplined approach to investing. SIPs are highly accessible and affordable, allowing investors to start with an amount as small as Rs 100. With SIPs in mutual funds, one can start saving small amounts from their earnings and invest them in the long term to not only achieve financial goals but also build wealth. For instance, if you had started an SIP in mutual funds of Rs 10,000, 25 years ago, then its value today would be Rs 27,759,841, an XIRR of 15.06%. (Source Ace MF. Returns of Sensex TRI. The 25-year period taken into consideration is from 10 Jan 1999 to 31 Dec 2023. The SIP interval is assumed to be the 10th of each month.)
Young investors are often motivated to invest due to herd mentality and the fear of missing out (FOMO). Investing on the basis of such biases, fear, and greed can not only lead to losses but can also lead to missed opportunities. Hence, while investing, it is important to stick to the fundamentals and have an understanding of the investment avenue, the objective of investing, and the associated risk.
The most inevitable thing in life is uncertainty, making it the most important thing to prepare for. You may never know when a rainy day arises in your life; hence, it is essential to prepare for these perils in life by insuring yourself. Moreover, one can also build an emergency fund, which can further prepare you for uncertainties in life. Preparing an emergency fund and securing adequate insurance not only safeguards your wealth-building journey but also eliminates the need to resort to loans during unexpected challenges.
For young individuals just entering the workforce, tax planning is a crucial concept of financial management. While the complexity of tax laws may seem intimidating, one can learn basic tax laws and consult a chartered accountant or a financial advisor who can further guide in financial management and efficient tax planning.
To conclude, As the new generation sets foot in the professional world, embracing sound financial planning practices becomes paramount for a secure and prosperous future. By incorporating the aforementioned principles, Gen Z can navigate the complexities of financial management with ease. Moreover, opting for the guidance of a financial advisor can set the stage for a financially stable future.
NJ E-wealth
Mutual funds - One pill for all your financial goals
Mutual funds - One pill for all your financial goals
The majority of Indian investors do not have a structured approach to savings and investment. The amount of money saved is determined by their spending patterns rather than a savings target. In a similar vein, most people invest haphazardly. When they have enough money, they invest it all without any specific goal-in bonds, stocks, post office small savings plans, bank FDs, etc.
If your age is 35 years and you retire when you are 60, you have 25 years, making this a long term goal. The most suited mutual fund scheme category for this goal is Equity Diversified Mutual Fund which aims to achieve long-term capital appreciation through diversified investments. These funds invest across various sectors, thus reducing risk. Other than this, there are retirement oriented schemes offered by various mutual funds with specific features to cater your retirement needs.
Child's higher education is also considered as a long term goal, however, here the time frame is usually shorter than retirement. The mutual fund categories that can be looked at for this type of need are Equity Diversified Mutual Funds, Balanced Advantage Funds and Aggressive Equity Oriented Hybrid Funds. Other than this, there are solution oriented Children's fund which aim at funding future life events such as a child's higher education or wedding. If you would have done an SIP of Rs. 5000 every month, 15 years back for child's higher education, assuming a return of 12%, you would have accumulated Rs 23.79 lakh.

Moreover, other than the above mentioned mutual fund categories, you can invest in Gold Funds to achieve your need related to purchase of gold for your Child's marriage.
Mutual Funds also offer investment options for saving tax. Equity Linked saving Schemes (ELSS) are specifically designed to do the same. ELSS investments are eligible for tax deductions up to Rs. 1,50,000 in a financial year under Section 80C of Income Tax Act. Investing in ELSS funds can offer significantly higher returns in the long run than most other tax-saving investment options like PPF, NSC, NPS and 5 year Bank Fixed Deposits. ELSS funds serve a dual purpose of tax saving along with wealth creation.
SWP's can be very beneficial for investors who need regular cash flows from their investments for a long period of time. SWP stands for systematic withdrawal plan. If you invest a lump sum in a mutual fund through SWP, you may choose how much you want to withdraw on a regular basis and how often. SWP allows investors to generate both monthly revenue as well as an accumulated sum at the end of the maturity period. Hybrid funds such as Balanced Advantage Funds are good options for SWP as they have low risk as compared to equity funds and at the same time have potential to generate higher inflation adjusted returns in the long term.
Typically, younger investors with a longer investment horizon may have the capacity to withstand short-term fluctuations and may opt for a more aggressive asset allocation that includes a higher proportion of equities. However, as an investor approaches retirement age, it would be wiser to follow a more conservative asset allocation.
If you have any goal other than the ones mentioned above, then classify it on the basis of tenure and risk profile. There are different types of mutual funds available based on your risk profile. If you are a risk taker, you would lean more towards equity mutual funds. If you are more risk averse, you would lean towards hybrid or debt mutual funds.

Moreover, there are funds for all needs - short, medium or long-term. For long-term goals, equity or diversified equity funds which invest nearly 65%-80% in equity can be considered. For medium-term goals, choose balanced or hybrid funds that invest in equity and debt in a 60:40 ratio. For short- term goals of 1-3 years, consider short-duration debt funds since they offer lower volatility and better interest than bank accounts.
Mutual funds come in many different forms, and there is a mutual fund for everyone. Your financial goals together with your risk taking capacity determine which mutual fund(s) are best for you. You can consult a financial advisor or a mutual fund distributor who can handhold you throughout your investment journey and help you make the right decisions.
NJ E-wealth
Anywhere Cashless in Health Insurance
Anywhere Cashless in Health Insurance
Health Insurance in India is growing widely and rapidly from the last few years. Recently, there has been some very critical reforms that will not only shape the future but also help the present customers to reap the fruits.
In health insurance, there are two modes of claims - Cashless and Reimbursement.

So when a health insurance client is hospitalized, the hospital checks whether they can provide cashless treatment to the client. It means the hospital, if under tie-up (agreement) with the insurance company, asks for expenses related to treatment of the client. If the insurance company agrees, the client won't have to pay the hospital for the treatment. This is known as a cashless claim.

Whereas if the insurance company denies or if there is no tie-up with the insurance company, then the customer has to pay the hospital bills from his/her own pocket and afterwards submit the claim forms & bills for reimbursements. This is known as a reimbursement claim.

Today, approx. 55% of clients take cashless claims while the others have to apply for the reimbursement claims. They might be admitted to the hospitals that are outside their Insurance company's hospital network. This puts a lot of strain on their finances and makes the entire process long & burdensome. It was a necessity to make the whole journey of claims a frictionless process, which will not just improve the client's experience but will build greater trust in the system.
In the case of a hospitalization, currently the facility of cashless treatment is available only at providers (hospitals) where the insurer has an agreement or tie-ups.

As per the directive from IRDAI - all insurance companies are working on to provide cashless claims in hospitals. Niva Bupa Health, Care Health and ManipalCigna Health Insurance Companies are now providing Cashless Anywhere facility to its clients. Some insurance companies have already started such facilities at a few locations and soon will provide it to PAN India. This improves client satisfaction and helps to increase penetration of Health Insurance in India.

Some insurers have a network agreement (tie-up) with about 1000+ hospitals, while some others might have a network of 4000 to 5000 providers (hospitals). But, this is one endeavor where the entire healthcare ecosystem of approximately 40,000 providers (hospitals) can work to give the cashless facility to their clients.

  • Inform about the claim to the Insurance Company well in advance.
  • Incase of a planned hospitalization, inform the insurer 48 hours prior to hospitalization.
  • Incase of an emergency hospitalization, inform within 24 hours of hospitalization.
  • In case the hospital is not under network list, Cashless service is subject to acceptance by the respective health care provider (hospital).
  • In case the hospital is not under network list, Insurance companies may ask the client to take treatment in other nearby hospitals in which cashless is available.
  • Even after putting in all the efforts, if the provider is not accepting an offer by the Insurer and the client is not ready to move to another available provider, the client will have to go for a reimbursement claim.
Claim is not payable incase of treatment in Excluded Hospitals. List of excluded hospitals is available on the respective insurance company's website.
With this initiative, clients will be eligible to get treated in any hospital they choose, and a cashless facility will be made available even if the hospital is not in the network of the Insurer.

Aimed at encouraging more clients to opt for health insurance, the initiative also acts as a step towards reducing fraud, which has been plaguing the insurance industry significantly and diminishing trust of the clients.

Once this facility of 'cashless anywhere' works at its best efficiency, clients will benefit the most.
  • They don't have to worry about arranging money to pay for hospital bills.
  • They don't have to run long distances for cashless hospitalization.
  • They don't have to change hospitals/doctors to get cashless hospitalization.
  • Get access to world class medical facilities.
In short, Clients will be able to reap optimum benefits out of his/her health insurance policy.
Ans: NJ E-Wealth clients may change bank details in LAS Term Loan accounts by raising a request from the E-Wealth account. This is a completely online process.

Bank change process in LAS Term Loan:
  • Client needs to raise a request from E-Wealth account > My profiles > Help & Supports > Send query [Select Query type : Loan against Securities(LAS) related & sub type: Request for Change in Bank details (LAS)].
  • Client also needs to fill, sign and upload scan copy new bank proof (i.e. cancelled cheque / bank statement showing above details) and a fresh NACH Mandate for the above bank account in favour of NJ CAPITAL PRIVATE LIMITED.
Accordingly, new bank details will be updated in the LAS account within T+3 working days. (T = request submission date)

If said request is not processed within the above TAT, partner may post the query from below path: Partner desk > Client services > Customer Care > Send Query [Query Type: E-wealth Account(Investment) > Query Subtype: Request (Trading/Demat Account)].

We will provide the update on the query within 2 working days. [Please mention the query id (posted by client from EWA desk) in the Query Description box along with the query details].
Fund Manager INTERVIEW
patner Interview
Mr. Abhishek Bisen
Senior Vice President - Kotak Mutual Fund

Yash Shantaram Khanolkar (ARN-250374)

Yash Khanolkar

  • Financial Assessment
  • Retirement Assessment
  • Child Future Assessment
  • Portfolio Review
  • mutual fund : debt/equity/elss
  • insurance : general/health/life
  • realty : plots/villas/flats
  • portfolio management services (pms)
  • fixed deposit : company fixed deposit
  • bonds : tax saving bonds

"We have taken due care and caution in compilation of this E Newsletter. The information has been obtained from various reliable sources. However it does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions of the results obtained from the use of such information. Investors should seek proper financial advise regarding the appropriateness of investing in any of the schemes stated, discussed or recommended in this newsletter and should realise that the statements regarding future prospects may or may not realise. Mutual fund investments are subject to market risks. Please read the offer document carefully before investing. Past performance is for indicative purpose only and is not necessarily a guide to the future performance."

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