“It's July already, I am in the midst of the year. I'd rather start investing from the next year. New Year, New Beginnings”

That auspicious new year will never come

“I am young in my career, I am earning Rs 20,000 a month, which is just enough to meet my expenses. I'll start investing when I start earning at least Rs 30,000 a month”.

And then you'll say the same thing to yourself when you reach the 30,000 mark.

“This year, I am planning for a vacation to Dubai, so I need to spare some money for that. I will start from next year.”

Vacations will come and go, your Investments will stand by you in all facets of your life.

“I am waiting for the right time to invest, like when I'll have some extra money”

Money can never be extra, you have to carve out for your investment from the money you have.

“The markets are high, Investing now will be a costly affair”

No one can predict the direction of the markets, it may never come back.

These are the excuses you give to yourself and to others. You should get over the lazy attitude and start investing now. Because the cost you'll pay for delaying investment can be very high.

Why do we say, you shouldn't delay investing? Why should you start investing in the early stages of your life?

What are you losing?

Power of Compounding: Ramesh and Suresh are two friends, both of them are 25 years old and working in the same company. Ramesh is a smart guy, he decides to start an SIP of Rs 5,000 for 10 years. While Suresh picks up two of the above mentioned excuses and he procrastinates his investing. Now Suresh realizes the need to invest after 5 years and he too starts an SIP of Rs 5,000 a month in the same mutual fund as Ramesh's.

Their Investment comparison is as follows:

* Assuming a CAGR of 20% for the overall investment period

Conclusion: Suresh, who started investing 5 years after Ramesh, invested Rs 3 Lacs less than the latter but the difference in their investment's maturity value is huge i.e., Rs 12,28,035. This huge difference is because of the Power of Compounding, which has taken Ramesh many steps ahead of Suresh in just 5 years. This huge difference has resulted when the SIP was of just Rs 5,000 a month and the difference in duration was 5 years. So, imagine the cost you are bearing by procrastinating your Investing for decades now.

Failure to meet goals: When you delay investing, you are dragging yourself away from your life goals. It may not be easy to collect a huge corpus in a very short period of time. Consider the above example, Ramesh has Rs 17.21 lakhs at the age of 35, so he can use this money for making a downpayment for his dream home. But Suresh, who is also 35, may not be able to do this with Rs 4.93 Lakhs. So procrastinating his Investment has taken him away from fulfilling his goal of owning a house, he will need some more years for accumulating the money required for making the downpayment.

Tax Benefits: Many investments carry the dual benefit of Yielding Returns plus Saving Taxes. So, if you are the one who has not yet started investing for saving taxes also, then you are practically committing a financial crime. Let's say, Harish falls under the 20% tax bracket, but he is too lazy to invest for tax. He shakes off the load from his shoulders by explaining to himself that “I live in India, I am paying taxes, because it's my responsibility to contribute towards the economic development of the country”. He omits to tell his conscience that he is also paying VAT on everything he consumes, he pays road tax to drive on the roads, he pays water tax to drink water, he pays service tax on the movies he watches, etc., and all these taxes are also contributing towards the economic development of the country. Hence he must save paying Income Tax as much as he can. If Harish would have invested in a tax saving instrument, like PPF, which is giving a nominal return of 8%, his effective return is 8% plus the 20% tax he is saving, i.e. a cumulative return of 28%. (For simplicity sake, we have ignored the time value of money). It doesn't make sense to lose out a return of 28% p.a. just because Harish is procrastinating investing. We have taken the example of PPF, if we replace it by a high return generating option like ELSS, then your money would know no bounds.

These were the three basic costs you are paying by procrastinating your Investments, there are many more that you actually bearing. The excuses are endless, but the time is not. So, stop procrastinating and Start Investing Now.

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This was during the year 2009 - 2010. Mr. Shankar, Amit's father retired few weeks back and he was enjoying his retired life. After retirement he got a hefty sum from his savings as PPF & Gratuity. One day, Amit & his father, Shankar was having a conversation -

Amit - Dad, I am very happy to see you enjoying your retired life. But I wonder if you could tell me about your savings. What have you done with it?

Shankar - Hey Champ, I have kept this money in three different banks as Fixed Deposit for 3 years. I would be getting average 10% interest per annum which would suffice mine and your mother's expenses.

Amit - Ohh.. that's great.. Good plan Dad..

As per plan, every month's income was sufficient though the bank was deducting the Tax (TDS) on the interest offered. But Shankar was comfortable as this amount was enough to fulfil the monthly expenses. Days, weeks, months and years passed and in the year 2013, Shankar received a call from the bank. The banker told him that the Fixed Deposit that he has made would be matured next week. He also requested Mr. Shankar to come to a bank and renew the instrument. Shankar immediately visited bank where he learnt two things -

• Due to every month withdrawal, his base amount has not appreciated. It was the same amount which he had invested.
• Earlier the interest rate was 10 % but now the interest rate would be 9.00%

Shankar was bit worried when he understood that the amount that he will be getting every month will be less than the amount which he was getting earlier. But he had no option as he was not ready to take risk on the only savings that he had. So he decided to renew the Fixed Deposit for another 5 years. That day evening, while having dinner, he shared this with Amit -

Shankar - Amit, I visited a bank to renew my Fixed Deposits.

Amit - So, What happened?

Shankar – But I am nervous as the interest rates have gone down. I will be getting only 9% interest on my investment. This amount will be on the border line of my requirements. So at times you may will have to support me financially.

Amit – Don't worry Dad… Surely..

Now Shankar had to spend money very carefully as the income from interest on FD was as same as to his expenses. Days.. weeks.. months.. Time was flying at its own pace…. And the day came (2016) when Shankar received another call from the Bank to renew his FD. But this time the interest rate was only 7.75 %. This was a very bad news for Shankar. Now he had no option but either to depend on his son for few of his day to day life expenses or work somewhere again. For whole of his life he worked very hard but that didn't help him to live happy retired life.

Dear Friend, The jist of the story is, FD interest rates are coming down and on the other hand inflation is rising. If we keep our money in FD, then after few years, value of our money will depreciate and the gap between our expenses and our income will be widened.

If we wish to secure our retired life, we have one solution and i.e. "BALANCE FUND". Now if we compare FD and Balance Fund, surely there is a minimal risk in Balance Fund but we look at the average returns for the last few years, this risk is nullified. If we keep our money in FD and use interest for expenses, our Capital does not appreciate, but if we invest the same amount in Balance Fund and if we opt for SWP (Systematic Withdrawal Plan), then we get fix monthly income as well as our capital also appreciate over a period of time. This happens because some portion of your fund is invested in Equity Markets and some portion in Debt Market. Another advantage of investing in Balance fund is the monthly income which I get is totally Tax Free. All Mutual Fund AMCs have various Balance Fund schemes. So you need to consult an experienced financial advisor to select a right balance fund from the exhaustive list of schemes. You need to change the mindset as per time and situation. Think Different and be Smart.

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Honorable Prime Minister Mr. Narendra Modi formally launched the Digital India Project on 1st of July. The project, a pet scheme of the NDA government, aims to connect India by broadband Internet, promote e-governance and transform India into a connected knowledge economy. The possibilities and benefits of such a project, in time, will prove to be immense and trans formative in nature. With E-Commerce, it also has the seeds to change how we all deal with our financial activities. At this time, the need for acknowledging these under-currents of technology transformation in India cannot be overlooked. The question now arises, are we ready for Digital India? Are we going to be a part of it or refuse to change ourselves and stay stuck in the past? This article attempts to connects us, as investors, to a digital, on-line world on the go.

eCommerce in India:
The eCommerce sector has seen unprecedented growth in recent years. The increasing use of devices like smart-phones and tablets, easy access to internet, better internet speeds have driven rapid technology adoption and increase in consumer base across India. eCommerce is today seen spreading across a very wide range of products and services and set to grow further. It has changed the industry landscape and unsettled old players in industries like classifieds, training & education, financial services, communications, logistics, music, travel, transport, real estate broking, retail and so on. Apart from volumes, even value of transactions has increased many fold. For some it may be hard to believe that recently Tata Housing, a pioneer in online selling of flats, sold a villa worth Rs 5.50 Crores through its' ecommerce portal. eCommerce sector in India has grown by 34% (CAGR) since 2009 to touch 16.4 billion USD in 2014. eTailing, which comprises of online retail and market-places, has become the fastest-growing segment in the larger market having grown at a CAGR of around 56% over 2009-2014. There are projections for a growth of over 700% in next 5 years!

Case for Online Investments:
In the use of digital technologies, financial services in India lags behind other categories. Technology discontinuities such as the mobile Internet, cloud storage, automation of knowledge work, digital identity verification and digital payments provide tremendous opportunity to reinvent financial services. We are already seeing the change taking shape in banking industry where innovative solutions are emerging that allow you to make payments and transfer amounts. Today we can access information, compare and do research in virtually any financial product. The scope of products which you apply for and/or transact online today is larger than ever. The list is dominated by shares and mutual funds at the top followed by fixed income securities, insurance, loans, credit cards, etc. Since long we are used to having equity shares in the demat mode with online trading facility. Now there is an increasing awareness and appreciation for the advantages of going for online transactions in other financial products, especially mutual funds. To start investing online through mutual funds, the investors need to have a "NJ E-Wealth A/c" or Trading Account and Demat Account. While trading account is needed to undertake transactions, the online demat account is needed to hold the securities in dematerialised form.

Advantages of having NJ E-Wealth A/c Service:
Avoiding physical transactions: Among the greatest advantages of having NJ E-Wealth A/c is that you can completely avoid any physical transactions in mutual funds. Through NJ E-Wealth A/c, you would be able to make virtually every type of transaction like purchases, redemptions, switch, SIP and STP. Doing multiple transactions and inter AMC switches would is also possible through NJ E-Wealth A/c. Thus you save on time and efforts in filling form and form submission. With NJ E-Wealth A/c, transactions can be done instantly through the online NJ E-Wealth A/c Account, mobile application or through Call & Trade service.
With online transactions you would …

• Enjoy freedom to transact from anywhere, any time
• Save time & effort on form filling
• Avoid physical travel and submission process
• Ensure timely transaction processing and update on email /SMS
• Avoid manual mistakes of form filling and increase accuracy of transactions

Consolidation of All Holdings:
With a demat account, you would be able to see all your actual holdings of securities at one single place. This would avoid any confusion and cases of queries in terms of what your holdings are. You may no longer bother to collect and store account statements. Further, in addition to mutual funds, your demat account would also hold other securities like equity shares, bonds, ETFs, etc. One would also be able to apply in NFOs and IPOs through the demat mode. Having a consolidated holdings across different financial products would be challenge had things been in physical mode.
Here are the advantages in brief...

• Avoiding hassles of remembering, tracking and consolidating investments
• Actual, real-time holdings in your demat account
• Single holdings statement across products like mutual funds, equities, bonds and ETFs

Synchronisation of Investor Information:
One of the many problems of physical transacting is having to remember and manage investor information across multiple AMCs. Quite often important investor details may differ leading to many problems. Updating any such information proves very troublesome for any investor. With NJ E-Wealth A/c, we are no longer worried about such non-financial information and records as they are maintained at the single level and are applicable for all your holdings.

• Standard investor information like bank details, contact information, nomination, redemption payout mode, etc.
• Single window update of all investor related information.

Conclusion:
We have adopted technology in many parts of our lives, be it socialising, communicating, learning, traveling or shopping. But we are yet truly embrace technology in an area which perhaps is most important comes closest your financial well-being – investments. In line with the digital India vision and the trend in our own lives, it is now high time that we go fully digital on our investments front. Opening a NJ E-Wealth A/c is an one time exercise but which can provide you with a lifetime of advantages with its' promise of convenience, ease, efficiency, mobility, control and choice. Its' is high time that we undertake this important task of opening NJ E-Wealth A/c by approaching.

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Here is a headline even a pessimist cannot doubt. Indian E-Commerce is on fire. The hottest e-commerce market in the world is not in US or China or but it's in India. Experts predict that the industry is poised to grow at a phenomenal rate of at least 50% year on year for next four years. What is driving this change? We take a quick look at the underlying reasons for this change. We also explore how we can adopt our evolving online behaviour over our traditional way of investing.

E-COMMERCE IN INDIA
Today, technology is something that has the power to change history in a very short time and there are numerous industries which have changed their character. The most amazing transformation is being seen in how we shop. The e-commerce industry in India is expected to grow at 40% CAGR from US$ 5.9 billion in 2010 to US$ 34.2 billion in 2015E. One interesting observation is that the e-commerce wave has come after we became more comfortable with the social media sites. Today, the digital world has penetrated every aspect of our lives, from ordering grocery, booking hotels, making friends, buying homes, searching jobs, selling old items and of course finding your spouse. To make things even better, we now have mobile devices connected to internet so that we can do things at any time, anywhere. There are a number of factors behind e-commerce boom and here are some key enablers and trends that you would like to know...

• Rising household income and spending ability. Annual household income rising from $2632 in 2005 to estimated $3823 in 2015.
• The rise of the great Indian middle class. Estimates for 2015 predict the share of households under the bottom of the pyramid as 29% compared 64% in year 2006.
• Falling mobile & computing device prices, internet costs and the rise in internet speeds. Internet penetration is up from 5m in 2000 to 140m in 2012 and estimated at 400m in 2016.
• Credit and Debit Card penetration increasing along with the value of transactions. Together, they have risen from 4.5m cards in 1999 and expected to cross 420m in 2015.
• Phenomenal growth of mobile e-commerce. In 2016, mobile shopping likely to be 27 times of that in year 2012. Mobile shopping grew 800% in 2013 alone

THE CHALLENGES
However, there are also challenges that the industry faces. The above numbers may look very optimistic but the fact remains that in a huge country like India, the share of organised retail online was only 0.3% compared to 8.7% of organised retail off-line and 91% of unorganised retail. There are also challenges of internet broadband speed which is minuscule compared to the speeds in US, Japan or European countries. The infrastructure and logistics is also a big challenge for the players. There are also questions whether the ecosystem consisting of payment gateways, technology, skilled manpower, regulations, supply chains, etc. can match up with the opportunity. The good news is that 2014 also marked an inflection point in the Indian politics with the formation of the new government. Clearly there is new found optimism and confidence. The government is playing its' cards well with initiatives like Jan Dhan Yojana, Digital India, projects like National Bill Payment System, National Optical Fiber Network, the focus on infrastructure coupled with policy & procedural revamp efforts. The initiatives are today laying foundation for a new, connected, efficient and digital India tomorrow.

UNLOCKING THE BEHAVIOURAL REASONS
There is no doubt a big sea change in how the Indian customer has evolved with time. Today he is not shy, afraid or illiterate to log on, create accounts, make posts, give orders and make payments. But what is driving this behavioral change? Here are some pointers that come to our mind...

1. Need for Convenience: Ease, comfort, efficiency and time savingsby going online.
2. Need for Choice: Availability is no longer an issue. Consumers can easily compare and choose from the many options available./li>
3. Need for Freedom: To be free from any dependence on physical stores, freedom from mobility, time and geographical restrictions. Any one can now transact any time and any where.
4. Need for Control: Being online is also about having a sense of control in your own hands at all times.
5. Increased Confidence: Much improved confidence in online brands and payment gateways.
6. Increased familiarity with technology: With almost everyone being a Facebook user, Indians are increasingly more comfortable with technology and are using same across different platforms.

EXPLORING POSSIBILITIES IN ONLINE INVESTING
Year 2014 saw the penetration of e-commerce to newer areas including health care, groceries, education, governance in India. However, there is one big area which is still relatively less penetrated – and its' “investing” online. Though, among investment products, online investing or perhaps 'trading' in equities has been already there for some time, its' suitability for retail investors has been in question.

Mutual funds, which is nothing but a vehicle to hold any asset class, is suitable for all kinds of investors. While India had very long ago shifted fully to the demat holding format for equities, mutual funds units are still being held by a vast majority in physical mode. Today one can hold mutual fund units in demat format just like shares. One can also very easily transact in mutual funds online. While we are very happy to benefit from ease of doing our transactions online and also fully understand the benefits of holding shares in demat form, a question must be asked – why are we reluctant to take the next step of transacting online in say, mutual funds?

No one can doubt the below list of the advantages that transacting & holding mutual funds and other financial products in online mode can offer...

1. Any Time, Any Where Investing: freedom from dependence on your financial advisor for processing transactions. With the advice, you can transact at your own convenience within matter of few seconds. There would be no time or geographical or mobility restrictions.
2. ncreased Accuracy & Efficiency: With freedom from paperwork, the chances of physical rejections, errors, etc. is almost eliminated and the overall system /data management gets much more efficient.
3. Know Your Holdings: your actual holdings in the demat account can be easily and accurately known at any time at just one place.This becomes a big challenge when the holdings are in physical format.
4. Better Information flow: With every online transaction, you can track the status of the transaction and also get instant alerts related to transactions requested. All information will be easily available on the online account.

WHAT YOU NEED TO DO?
It is high time that Indian investors truly adopt the online mode when in comes to managing their wealth. Today, in addition to equities, there are other products like mutual funds, Exchange Traded Funds (ETFs), Bonds, etc which are available in online mode. You can truly enjoy the benefits of freedom, convenience, control, choice and much more by taking the online route.

The journey of going online begins by opening of a Trading Account and Demat Account (NJ E-Wealth Account) with a registered distributor /broker. For this one time process, your financial advisor will help and guide you. After the opening of the Trading & Demat Accounts, you are good to begin transacting online in products of your choice. Your existing, physical mutual fund holdings can also be easily converted to the demat mode on submission of a simple request for mode conversion.

NJ E-Wealth Account with NJ
NJ India Invest Pvt. Ltd. a member of BSE & NSE and a registered DP with CDSL, also offers the services of Trading Account & Demat account with many unique features and benefits as listed below.

• Single Window Multiple Products– currently live segments are Mutual Fund & Capital Market. Even bidding for IPOs can be done through NJ NJ E-Wealth Account.
• Multiple modes of transactions (Online, Call & Trade, Mobile App and even Offline)
• Single access point for multiple AMCs and mutual fund schemes
• Inter AMC switch & STP is possible.

SUMMARY
We have been making giant strides in how we are connecting and transacting in our lives and are skilled in the usage of internet and mobile. Time has now come to also go digital and online with our investments. As we all know, the advantages are enormous and it is a matter of time that until the day when we all will be investing and managing our wealth online. And going by the trends, it feels like that time will be sooner than later. Many have already logged on, have you?

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