The Economic Times Wealth - July 11, 2022

26 Pages·2022·13 MB·English

T E T
HE CONOMIC IMES WHO WILL GAIN FROM

RISING REFINING
MARGINS? P10
www.etwealth.co | Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, New Delhi, Pune | July 11-17, 2022 | 24 pages | `8
PPllaann aann IInnddiiaann
ddeessttiinnaattiioonn
wweeddddiinngg
RETIREMENT:
A FAST
DISASTER OR A
SLOW ONE
FFiindd outt hhow tto piickk a ddesttiinattiion andd opttiimiise
P7
your expenses for a unique wedding experience
at beautiful locales. P2
HOW TO
ESTIMATE
RETURNS FROM
INVESTMENTS
P12
BEWARE:
RISKOMETER
WON’T FLAG
ILLIQUIDITY
P13
cover ssttoorryy
02 The Economic Times Wealth July 11-17, 2022
PPllaann aann IInnddiiaann
ddeessttiinnaattiioonn
wweeddddiinngg
FFiinndd oouutt hhooww ttoo ppiicckk aa ddeessttiinnaattiioonn aanndd ooppttiimmiissee yyoouurr eexxppeennsseess
for a unique wedding experience at beautiful locales.
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By Riju Mehta
T
he big, fat Indian wedding may
well have been on a diet these
CCoosstt bbrreeaakk--uupp ffoorr aa ddeessttiinnaattiioonn wweeddddiinngg
past two years. In an unlikely
fallout, Covid helped shed the fi-
nancial flab off weddings, slim-
ming down the scale, trimming down guest
lists, and forging a new trend from what
was considered the preserve of the uber
rich. Destination weddings went desi—in
more ways than one.
From luxurious jaunts in foreign lands
and chic locations in the country, the con-
cept has expanded to include smaller hill or
beach weddings on a budget. The chic snob- Hotel (stay, food, Décor/ Entertainment (Chore- Photo/videography & Wedding
bery confined to a palatial Udaipur or an venues) & travel f lowers ographer, DJ, artists) make-up/mehndi artists planner fee
exotic Lakshadweep wedding has trickled
down to hotels and resorts in unassuming 50-60% 15-20% 10-15% 5-10% 5-7%
tier 2 and 3 cities with beautiful locales.
The Covid-confined Indian wants to break
free from local, large functions to indulge “They now understand the value of different,” says Rituraj Khanna, CEO, Q Sterling Holiday Resorts. Agrees Shreyas
in outstation, intimate celebrations. close-knit weddings with 150-200 guests, Events & Weddings, a leading Noida-based Kudalkar of Kings Hotel & Resort: “Places
“There has been a considerable shift instead of big, fat ones with 500-800 peo- wedding management firm. like Alibaug, Shimla and Coorg are afford-
after Covid, with people from all walks of ple, as well as the fact that it can be done This has led to the emergence of several able locations with extremely pleasant
life, across strata and smaller towns aspir- in a much more fun, relaxed, creative new wedding destinations in tier 2 and weather that offer a variety of travel choic-
ing for destination weddings,” says Chetan and personalised manner,” says Shweta 3 cities, apart from the traditional hubs es and are easy to schedule things.”
Vohra, Co-founder & MD, Weddingline, Acharya, Founder, Baraati Inc, a leading in Rajasthan, Goa and Kerala. “We are So if you, too, have been planning a desti-
a wedding management firm that has or- Delhi-based wedding planner. “Events can seeing new destinations like Kalimpong, nation wedding, read on to know how much
ganised top-notch weddings for celebs like be conceptualised around two families in- Wayanad and Dharamsala, where people it can cost and the cities you can pick.
Priyanka Chopra, Yuvraj Singh and Vivek stead of doing it separately,” she adds. want small weddings because they are
Oberoi, among others. “People are realis- “Another factor is that, after the pan- not only close to the domiciles of bride or How to choose a destination
ing that a wedding can be a celebration demic, all the local properties are booked. groom, but the logistics too are easily man- The first step in planning is selecting the
with a vacation thrown in,” he adds. So people are going out to have something aged,” says Vikram Lalvani, MD & CEO, right destination and venue.
cover ssttoorryy
The Economic Times Wealth July 11-17, 2022 03
AAaarrttii && DDhhrruuvv GGooeell,, 2244 && 2288 yyrrss,, DDeellhhii
CCuutt yyoouurr wweeddddiinngg ccoossttss
Destination
Here’s how you can slash your expenses and still
wedding
retain the f lavour of a destination wedding.
Umaid Bhawan Palace,
Jodhpur, Rajasthan
“II wwaanntteedd aa bbiigg,, ffaatt,,
Opt for boutique or small resorts
No. of days: 3
DDeellhhii wweeddddiinngg,, wwhhiillee With 5-star beach or hill hotels costing upwards of `20,000 a day,
No. of guests: 400 look for smaller resorts in scenic locations ranging from `8,000-
DDhhrruuvv wwaanntteedd aa ssmmaallll,,
15,000. Holding weddings in tier 2/3 cities like Dehradun, Kochi,
Wedding Hotel iinnttiimmaattee iinntteerrnnaattiioonnaall Alibaug and Rishikesh can cut your guest accommodation and food
planner fee (stay, costs almost by half.
5% food, wweeddddiinngg.. WWee ffoouunndd
Photo/ Budget venues) tthhee mmiiddddllee ggrroouunndd iinn Choose an accessible location
videography break-up 55%
5% aann IInnddiiaann ddeessttiinnaattiioonn Pick a place that is at a drivable distance from your home city. So
if you are in Mumbai, you could pick Jadhavgarh in Pune, and if
wweeddddiinngg iinn JJooddhhppuurr..”
Entertainment/ you are in Delhi, you could go to Dehradun. If you choose a distant
artists location that involves f lying, you will raise your costs considerably,
AARTI GOEL
15% Travel Decor besides making it inconvenient for a lot of guests.
5% 15%
Cut down on f lowers, decor
If you choose a scenic destination like a beach or a beautiful valley
BUDGET: The choice of city will depend in October last year. or hillside, you can cut down on your décor costs by keeping it
on several factors, the foremost being your WEATHER: The weather and time of the simple. Since f lowers are one of the most expensive design props,
budget. Fix the total amount you want to year are other factors to be kept in mind you can slash your costs by minimising their usage, choosing a an
outdoor location with natural beauty instead.
spend on the wedding and allocate 60-65% as it will determine the ease of travel and
of this on destination and travel. booking. If it is peak tourist season, you
GUEST LIST: Next, decide on the number will need to plan much in advance, and if Hire local artists
of guests attending the wedding. This will the weather is hot and humid, you will need Another way to cut costs heavily is hiring local vendors and art-
help you pick a property that has the re- to worry about the wilting flowers and ists instead of f lying them from your home city. Be it caterers or
quired number of rooms. If the rooms fall décor. Off-season booking is invariably the make-up and mehndi artists, by opting for local talent, you will not
short, you may have to book more than two best in terms of both cost and travel. only save on their fees, but also avoid the expense of stay, food and
travel for the people you f ly down to the destination.
hotels. “While I wanted a large Delhi wed-
ding with 1,000 people, my husband wanted How much will it cost?
a small international wedding with very Depending on your budget, the wedding Plan off-season wedding
few people. We found middle ground by get- destinations can be split into three seg- If you are looking at a popular destination, time your wedding to an
ting married in Jodhpur with 400 people,” ments: luxury, mid-segment and budget. off-season month to avail of lower hotel, travel and vendor costs.
says Aarti Goel, who got married at the The hotel costs typically include stay, food However, make sure you pick the right weather. So if you pick Goa,
Umaid Bhawan Palace last year. and use of venues. Most provide add-on ser- March may be a good time to have a wedding, when the tourist rush
is waning and the weather is still pleasant.
DISTANCE: An important consideration vices for an extra cost, while some include
is the distance of the location from your a few services and staff in the package, and
home. If it is too far away and flights are yet others offer end-to-end wedding man- Trim your guest list
your only option, factor in the higher cost agement for a higher cost. Having a local wedding means inviting everyone you know, but in
of travel. Drivable distances are preferable, The top segment includes premium destination weddings, you can include only close family members
especially if you have to carry a lot of wed- 5-star hotels, palaces & forts, with costs and friends. Though costs for a destination wedding may surge due
ding material and workers with you. starting at `35,000 per room for a night to travel or accommodation of guests, you can still bring it at par
with that for local wedding with careful weaning of guests.
CONVENIENCE: You will also need to and can go up to `5-7 lakh a night. The total
figure out the convenience of travelling costs can run up to `3-5 crore for a 2-day
if elders in the family are accompanying wedding for 200 guests, but can go up even Gifts
you. “We chose Jaipur because no flights further depending on the family’s require- The fact that you invited your guests for a fun vacation-cum-wed-
were needed from Delhi and we had elderly ments. Most such venues, with plush regal ding and took care of their stay and/or travel costs means that you
people with us who were more comfortable settings and services, are in Udaipur, can scale down on the gifts you give them.
driving down,” says Delhi-based Navya Jodhpur and Jaipur in Rajasthan.
Kapur, who got married at the Leela Palace The mid-segment includes 4- and 5-star
cover ssttoorryy
04 The Economic Times Wealth July 11-17, 2022
FAQss oonn wweeddddiinngg iinnssuurraannccee......
luxury and heritage hotels, starting from
`20,000 a night per room, and the total ex-
penses can range from `45 lakh to `2 crore. For a high expense event like a wedding, it may be a good
Some top hotel brands in this segement idea to secure risks by buying an insurance policy.
include the Hyatt, Leela, Taj, JW Marriott,
ITC Welcomhotels, among others. Q. What does it cover?
The budget segment includes 3- and Q. How much is the premium?
4-star hotels and resorts with costs rang-
Cancellation or postponement: It
ing from `8,000-20,000 a night per room, will cover your booking amount The premium will depend on the size and type of
and the total cost adding up to `15-45 lakh. and advance payments made to cover opted for and will typically be 0.2-0.4% of
These include Radisson, Sterling, Lemon décor companies, food vendors, the sum insured. For instance, a Future Generali
Tree Premier and other local resorts. hotels, travel agencies, enter- policy of `40 lakh will cost `10,000-15,000 in
While destination weddings are per- tainment artists, among others, premium for the duration of the wedding.
if the wedding is cancelled,
ceived to be more expensive than local
postponed or rescheduled.
weddings, it may not always be the case.
Damage to property/ valuables: Q. What is the term of insurance?
Since your guest list for destinations is cut
It covers damage due to f ire,
drastically, including only close family and
explosion, earthquake, etc, to
friends, you save on the costs that would residence, wedding venues or The wedding cover lasts for the duration of the
wedding, usually seven days, typically ending on
have gone into a bigger local wedding with sets and props, as well as loss
the next day of the wedding.
800-1,000 people. Besides, you can cut down of valuables due to theft or
your costs on décor and entertainment if burglary.
you choose a scenic locale that does not re- Personal accident: This covers Q. What doesn’t it cover?
Q. Which companies offer
quire too many flowers or decorations. accidental partial or complete
disability or death of specif ied wedding insurance?
Need a wedding planner? members. Any unnatural cause of injury,
loss and injury or death caused by
Public liability: It covers any
While Indians have been planning congenital disease, war, terrorism, Not many insurers offer wedding insurance in
injury or damage to third par-
elaborate weddings on their own for a long kidnapping, suicide or pollution are India. Among those who do are Future Generali,
ties due to accidents during the
time, destination weddings require more wedding. among the standard exclusions in a ICICI Lombard, Bajaj Allianz, Oriental Insurance
wedding policy. and National Insurance Company.
evolved planning and logistics to deal with
travelling, outstation guests, decoration
and entertainment at the location.
Wedding planners charge a flat fee for
defined services, which typically add up
to 5-10% of the total wedding cost. This is a
small price to pay for the convenience that
comes from planning and dealing with
NNaavvyyaa && AAnnkkrriisshh KKaappuurr,, bbootthh 2277 yyrrss,, DDeellhhii
complex dynamics of a destination wed-
ding. “For our Goa wedding, the planner
not only negotiated a good hotel discount,
but also handled the transfers of guests Destination wedding
without any delays, which is considered a The Leela Palace, Jaipur, Rajasthan
big hassle in Goa,” says Bengaluru-based No. of days: 3
Swati Verma.
No. of guests: 400
Bigger planners usually provide end-to-
end services, including guest hospitality,
Photo/
travel and transfers, food and beverages,
videography
entertainment, and décor, leaving the host
Entertainment/ 10% Wedding
family with a no-stress celebration. artists planner fee
How to cut costs 10% 5%
Whether it’s a luxury or budget destination
wedding, there is always a possibility to cut Budget
costs (see Cut your wedding costs…). While Décor break-up Hotel
hotel discounts have dried up after Covid 20% (stay,
food,
as demand has surged, there are other
venues)
ways you can slash your expenses. “A good
Travel 50%
option is to negotiate with the hotel during
5%
off-season when the demand is low, bring-
ing down your costs by 20-25%” says Vohra. “WWee ggoott aass mmaannyy llooccaall vveennddoorrss aass wwee
You can also use local vendors and artists,
ccoouulldd ffrroomm JJaaiippuurr,, bbuutt tthheerree wweerree
which drastically reduces the travel and
stay costs for the staffers you would other- cceerrttaaiinn ppeeooppllee lliikkee tthhee mmaakkee--uupp
wise carry with you. Choosing a beautiful
aarrttiisstt,, pphhoottooggrraapphheerr aanndd DDJJ wwhhoomm
location can also help you bring down deco-
ration charges. wwee ttooookk ffrroomm oouurr hhoommee cciittyy..”
How to plan NAVYA KAPUR
The planning should begin at least six
months before the wedding, staring with
fixing your budget, guest, ceremonies, and ner has good contacts with local vendors, it Get wedding insurance of wedding, burglary, damage to valuables,
destination. You will have to do a recce of will turn out cheaper and more convenient. While planning extravagant weddings, accident, death, and even third-party li-
the shortlisted places along with the wed- Typically, however, people prefer their people often leave out a crucial detail: in- ability,” says Raghavendra Rao, Chief
ding planner at this point. After finalising own make-up and henna artists, choreog- surance. “Even if they want to, many are Distribution Officer, Future Generali
the destination, you will need to go there raphers and DJ or singers, who will need clueless about how and where to get it,” Insurance India. “The policy will cover
personally for deciding on the food and bev- to be booked in advance. About a month says Acharya (see FAQs on wedding...). the non-refundable expenses incurred in
erages, venues for different ceremonies, or 15 days before the wedding, the planner The sum insured should be roughly the connection with the wedding,” adds T.A.
themes and décor ideas, etc, at least 2-3 should have finalised all the details with- size of expenses incurred for the wedding. Ramalingam, Chief Technical Officer,
months before the wedding. If your plan- out any loose ends. “It will cover cancellation or postponement Bajaj Allianz General Insurance.

cover ssttoorryy
06 The Economic Times Wealth July 11-17, 2022
JODHPUR KOVALAM
Rajasthan Goa Kerala Tamil Nadu
The more premium hotels
This beautiful beach
include the Umaid Bhawan
locale has wedding venue
Palace, Vivanta by Taj Hari
options ranging from
Mahal, Indana Palace, ITC
top-end 5-star hotels to
Welcomhotel, Ummed
3- and 4-star hotels. Some
Palace, among others.
are The Leela, Vivanta
South Goa is preferred for by Taj Green Cove, The
UDAIPUR JAIPUR KUMARAKOM MAHABALIPURAM
destination weddings due to its Raviz, Niraamaya Surya
Considered the top It offers a wide variety, quieter, private beaches. Some This backwaters paradise near Samudra, Uday Samudra, This tiny town along the Tamil
destination for luxury from premium luxury of the top-end hotels include Kottayam is currently among and Turtle on the Beach. Nadu coastline, an hour from
weddings in India, it offers to 4-stars. Top names Park Hyatt, Zuri White Sands, the hottest destinations for Chennai, is fast becoming
extravagantly luxurious include Rambagh Palace, Taj Exotica and The Leela (not weddings. With spectacular KOCHI a hot destination for beach
palaces and premium 5-star Oberoi Rajvilas, Fairmont, operational after 6 October backdrops, it offers a range of This tiny port city is one weddings. Some popular
hotels, such as the Taj Lake Samode Palace, etc. 2022), while some of the other scenic locations of hotels and of the most picturesque. 4- and 5-star venues include
Palace, Jag Mandir Palace, resorts are the Caravela Beach resorts, with Zuri Kumarakom, Some of the popular Radisson Blu Resort Temple
Oberoi Udaivilas, The Leela JAISALMER Resort, Beleza by the Beach, Kumarakom Lake Resort, venues include Ramada Bay, Chariot Beach Resort,
Palace, among others, as Some of the best venues Mayfair Hideaway Spa & Resort, Taj Kumarakom, Niraamaya Resort by Wyndham, Intercontinental Hotel, Taj
wedding venues. It also has 4- here are Jaisalmer and Zeebop by the Sea. Retreats Backwaters & Beyond Kochi Marriott, Trident, Le Fisherman’s Cove, etc.
and 5-star hotels and smaller Marriott, Suryagarh, Fort among the top rated. Meridien, Holiday Inn, etc.
palaces, which will cost lesser. Rajwada, and Jaisalkot. Hotel cost: `20-60 lakh Hotel cost: `15-55 lakh
Best time for a wedding: Hotel cost: `15 lakh - `1 crore Best time for a wedding:
Hotel cost: `45 lakh to `4 crore (for Udaipur, Jodh-
October to March Best time for a wedding: October to March November to March
pur, Jaipur, premium luxury and 5-star luxury hotels);
`30 lakh – `1.5 crore (Jaisalmer)
Best time for a wedding: October to February
Uttarakhand DEHRADUN/
MUSSSOORIE
Top
Orissa These scenic hill towns
are fast becoming trendy
wedding destinations, with
PURI
top preferences including
The beautiful beach town cities for the recent Hyatt Regency,
offers options like Mayfair Four Points by Sheraton,
Waves, Mayfair Heritage, RISHIKESH ITC Welcomhotel, Jaypee
Chariot Resort & Spa, Holiday Hotel cost: `12- Another popular new entrant Residency, JW Marriott,
Resort, Toshali Sands, Sterling, 30 lakh to the destination wedding Ramada by Wyndham.
atynpdi cSaelvlye nra Hniglles .f Trohme p`a8c,0k0ag0e s Bweesdtd tiinmge: Ofocrt oa- destination loisf to, pitt ioofnfesr fsr oam w ibdued rgaentg teo JIM CORBETT
-15,000 a night, making it an ber-February premium luxury. The lack of This quaint town by the
affordable budget choice. wide open spaces or parks is Kosi river offers ideal
compensated by the beautiful backdrops for a small
locations on the banks of the wedding. The Riverview
Maharashtra wedding
Ganges river. Some options for Retreat, Namah, Tarangi,
weddings are Ganga Kinare, Taj Corbett Resort & Spa,
ALIBAUG Aloha on the Ganges, Anand Club Mahindra and many
The coastal town with its Kashi by the Ganges, Taj Resort other venues offer open
beautiful beaches is just 100 Hotel cost: `15- & Spa, The Roseate Ganges, and spaces for a tranquil
km from Mumbai and a perfect 40 lakh Summit by the Ganges. wedding.
destination. It’s also among Here are some popular and upcoming locations
the cheaper options, with top Best time for Hotel cost: `18-60 lakh (Rishikesh); `15-50 lakh
venues including the Radisson a wedding: for destination weddings. These cities offer a (Dehradun/Mussoorie); `20-40 lakh (Jim Corbett)
October-Novem-
Blu Resort & Spa, The Mansion ber, January- range of options, from premium luxury palaces Best time for a wedding: October to March (Rishikesh);
HTrooupsiec,a Pnraa Rkerusotir Rt e&s Soprtas,, etc. February and 5-star luxury hotels to 3- and 4-star heritage MNoavrcehm tboe Jru (nJiem ( DCeohrrbaedttu)n;); February-March, October-
hotels, affordable boutique hotels and budget
Himachal Pradesh resorts. The hotel packages typically include stay,
Andaman Islands
food and venues for functions, with costs ranging
SHIMLA
There are many easily accessible from `5,000 to `5 lakh a night per room. The Spa, Beach Island, Barefoot
at Havelock, Munjoh Ocean
places in and around Shimla
prices listed here are not the total wedding cost Resort, and Coral Reef Hotel.
for cozy weddings in beautiful
settings. The more popular ones but hotel rates for a 2-day wedding for 150
include the Taj Theog Resort Hotel cost: `25-60 lakh
& Spa, Wildfl ower Hall, Oberoi guests, which form the bulk of expenses. As some HAVELOCK ISLAND
Best time for a wedding:
Cecil, Woodville Palace, ITC Hotel cost: `30- The logistics and travel costs
hotels in smaller cities may have fewer rooms, October to February
Welcomhotel, Radisson, etc. 60 lakh are higher, but you can trim
Best time for a you will either have to cut your guest list to your guest list to 50-75.
There are more 3- and 4-star
wedding: March-
50-75 people, or book more than one hotel. options, and fewer 5-star
April, October-
hotels. Some include Taj
November
Exotica, Sea Shell Resort &
and 5-star properties and outdoor venues offering
Karnataka
expansive backdrops to weddings. Some of these
include the Leela Palace, Taj West End, JW Marriott, Hotel cost: `25
Moongate, White Mist, Antra, among several others. lakh - `1.5
crore (Ben-
COORG galuru); `25-50
Kodagu, known as the Scotland of India, is a perfect lakh (Coorg)
hill station venue for destination weddings, with Best time for a
BENGALURU
properties like Taj Madikeri Resort & Spa, Club wedding: Octo-
This IT hub is fast emerging Mahindra, Heritage Resort, Amritara Ambatty ber to February
as a wedding destination for Greens, Kadkani River Resort on the Cauvery river
South India, with several 4- perfect for a serene wedding.
guest ccoolluummnn
The Economic Times Wealth July 11-17, 2022 07
Retirement: A fast
disaster or a slow one?
Unless we make good choices during our earning years, retirement can
quickly turn into a financial nightmare, says Dhirendra Kumar.
A
few weeks back, while googling
retirement systems in other
countries, I saw this headline:
DHIRENDRA KUMAR
100-year-old Brazilian breaks
CEO, VALUE RESEARCH
record after 84 years at same
money company. Brazilian Walter Orthmann
joined a company named Industrias Renaux
mysteries
on 17 January 1938, and 84 years later is
still working there. I guess the greatest
achievement here is that at the age of 100,
he is still active and alert and still enjoys
working. In the article I read, here’s the
advice he gives, “I don’t do much planning,
nor care much about tomorrow. All I care
Even though lifespans about is that tomorrow will be another day
have become long, in which I will wake up, get up, exercise and
the rise of chronic go to work; you need to get busy with the
present, not the past or the future. Here and
diseases has meant
now is what counts.”
that ‘healthspans’
There are a lot of news stories about this
have become short
man that you can Google and find out more
and many of us will but it goes without saying that this kind of
face ruinous medical a ‘retirement solution’ is not on the cards
bills at some point in for the salaried amongst us. Retirement is
the latter part of our a scary thing. By the time salaried people
reach that age, they’ve typically been work-
lives.
ing for close to 40 years. For most of them,
their existence is pretty much defined by the
S
E
routine of their jobs. More importantly, their G
A
finances are defined by getting that salary M
YI
every month. TT
E
G
Like all savings, fixing
is gone forever. You will not be able to earn thing that needs to be done sooner rather
your post-retirement in- more and make up for the losses. This than later. It may be a slow disaster, but
makes people extremely conservative in the years roll by quickly and it does not
vestment plan is something
their outlook. A considerable number will take time for the slow one to arrive.
that needs to be done soon- trust only bank deposits, sovereign schemes
and perhaps LIC.
er rather than later. Please send your feedback to
This feels safe but actually it is not. The
[email protected]
problem is that your savings can face a sud-
Except for a small fraction of people who den, hard disaster, or they can face a long,
are lucky enough to have an inflation- gradual disaster. Like the proverbial frog
protected income—for example, rent or a in boiling water, the latter cannot be felt.
government pension, or those who have gen- Those who face this long, slow disaster do
erated enormous wealth during their work- not even know that there was an alternative.
ing years—the spectre of post-retirement In fact, I’ve come to realise that some peo-
financial problems and impoverishment ple choose this disaster knowingly. Why so?
haunts most retirees. Nowadays, lifespans I’ve spent years explaining that after retire-
are long and most people have two or three ment, equity is a must in order to avoid this
decades of lives left at retirement. During slow disaster. There are those who under-
these long years, a lot can happen. For exam- stand this very well and yet are so scared
ple, even though lifespans have become long, of the quick disaster that they willingly
the rise of chronic diseases has meant that choose it. This is the worst of all worlds, and
‘healthspans’ have become short and many it comes entirely from a lack of confidence.
of us will face ruinous medical bills at some This confidence is hard to gain, and the
point in the latter part of our lives. only route to it is through knowledge and
This fear of the unknown—the spectre experience, coupled with real life examples.
of risk that comes with retirement—makes That’s the part I try to play in this publica-
it a natural instinct to be conservative tion, along with resources you can find
with post-retirement investments. This is online, including a very comprehensive set
perfectly understandable. Once you stop on Value Research Online. However, I must
earning, there is no plan B. If you make big point out that like all savings, fixing your
losses in your investments, then that money post-retirement investment plan is some-
review pprreevviieeww
08 The Economic Times Wealth July 11-17, 2022
MF asset base increases 14
NEWS IN BRIEF %
Paytm Money moves
MF investors to BSE Star y-o-y at end of Jun quarter
Paytm Money, one of the coun-
try’s largest direct investing
platforms for mutual funds,
will migrate to the BSE Star ex-
Despite NFO ban, sustained inflows take industry average AUM to `37.75 lakh crore.
change platform and the trans-
actions will use Paytm’s brok-
ing code instead of RIA Code. The asset base of the domestic mutual fund appreciation and sales growth as more
The fintech had sent an email industry saw an annual growth of 14% to investors discover the wealth creation op-
to customers asking them to reach `37.75 lakh crore in the three months portunity presented by equity investments.
comply with the KYC norms as
ended June on sustained inflows in equity While a single quarter may not necessarily
part of the platform’s shift to
schemes by way of SIPs and lumpsum in- contain all three elements, they all contrib-
BSE Star. This shift entails us-
vestments. Going ahead, the long term trend ute meaningfully over time,” he added.
ers getting a unique client code
and acceptability of mutual funds across Vidya Bala, Co-founder of PrimeInvestor.
and a demat account.
different investor segments will continue in, said asset base can rise both due to in-
to strengthen taking the AUM to new highs, flows and market movement. Since the mar-
NFO announced
Abhishek Dev, Co-Founder and CEO of ket has been flat for the last one year, the
WhiteOak Capital Mutual Epsilon Money, said. According to Amfi increase is mainly due to inflows.
Fund has launched its first data, the industry’s average AUM rose to According to Dev, mutual funds are now
equity NFO, WhiteOak Capital `37.75 lakh crore in the quarter ended June well recognised by both retail and corporate
Flexi Cap Fund. This open- 2022 from `33.2 lakh crore at the end of June investors as a core investment product.
ended scheme will invest 2021. “The retail SIP investments into equity
across large, mid and small-
During the March quarter, the asset base mutual funds have particularly been robust
cap stocks. The NFO opens on
of the industry, comprising 43 players, was through this period despite turbulence in
12 July and closes on 26 July.
at `38.38 lakh crore. Industry experts at- equity markets. Another contributing fac-
The minimum investment re-
tributed increase in the AUM to inflows into tor is fixed income institutional flows into
quired is `500.
equity schemes, reflecting the growing con- the short end of the curve,” he added.
fidence of investors. had set 1 July as the deadline for the imple- During April-May, equity mutual fund
LIC MF to absorb IDBI MF “There has been sustained inflows in mentation of the new system. schemes attracted `28,980 crore, which was
LIC Mutual Fund has started equity schemes in this quarter both by Rajiv Shastri, Director and CEO of NJ way higher than `19,508 crore received in
the process of absorbing IDBI way of SIPs and lumpsum. This could have AMC, believes that the AUM of the industry such schemes in the entire June 2021 quar-
Mutual Fund to fulfill regula- been much better if NFOs were permitted,” reflects the growing confidence of investors ter. The data for June is not available.
tory norms after two attempts Omkeshwar Singh, Group Head-Mutual as well as the essential financial inclusion In terms of asset size, SBI MF continued to
to find a buyer for the latter Funds at Samco Securities, said. service that the industry offers. lead the pack with an average AUM of `6.47
failed. IDBI Bank-promoted Sebi had discontinued the launch of NFOs “It is also in line with our long term in- lakh crore (excluding FoF) during the quar-
IDBI MF had to be either sold or until the new systems concerning pool ac- dustry growth expectations which includes ter followed by ICICI Prudential MF (`4.65
merged with LIC MF because,
counts were determined and the regulator the impact of accumulated SIPs, market lakh crore) and HDFC MF (`4.15 lakh crore).
under Sebi rules, one promoter
cannot have more than 10%
stake in two mutual funds. Life
Nod for payment
Insurance Corp of India (LIC), Irdai yes to add-ons for
the promoter of LIC MF, took a
aggregator licence
controlling stake in IDBI Bank
in 2019.
vehicle insurance
Cooking oil prices
Mother Dairy has slashed
prices of soyabean and rice
India’s insurance regulator has compared to the ones used less. ‘Pay
bran oils by up to `14 per litre
permitted general insurers how you drive’ add-on will
owing to fall in global cooking
to introduce innovative depend on the driving
oil prices. The move comes
add-on policies for own behaviour of the owner.
after the government directed
damage of vehicles, Vehicles with more
edible oil firms to pass on the
depending on the fines and accidents
benefits of fall in global cook-
ing oil prices to consumers. usage and driving will have to pay a
Mother Dairy, which is one of history of owners. higher premium.
the leading milk suppliers in Individuals can A ‘floater policy’ Online payment providers including
Delhi-NCR, sells edible oils un- also buy floater will allow the Razorpay, and Pine Labs are among
der the Dhara brand. policies for mul- vehicle owners the top names which have received the
tiple vehicles to get a single in-principle nod from the RBI for a pay-
Indigo salary hikes instead of a sepa- policy for multiple ment aggregator license.
Indigo will increase its pilot rate policy for each vehicles includ- This comes as over the past few
salaries by 8% from August, vehicle, Irdai said in ing two-wheelers. months, the central bank has been hold-
reacting to their demands to a notification. Irdai “Introduction of the ing presentations with payment gate-
reinstate remuneration to said general insurance above options will aid in ways and other fintech firms that ap-
pre-Covid levels, as air travel companies can introduce giving the much-needed fil- plied for a payment aggregator license.
bounces back. The airline in- own damage cover for motor in- lip to motor own damage insur- Now the RBI is expected to release
creased salaries by 8% on surance in three categories for vehicles ance in the country and increase its pen- a complete list of the players who have
31 March. Pilot salaries are belonging to the same individual owner etration...the above mentioned covers been approved to operate as payment
still lower than pre-Covid for two-wheelers and private cars. will be provided as add-ons to the basic aggregators in the country shortly.
levels. The airline has also en-
‘Pay as you drive’ add-on will allow cus- policy of motor own damage,” Irdai said. The payment aggregator framework,
hanced other incentives such
tomers to pay a premium based on their Insurance companies said AI and data introduced formally in March 2020,
as layover allowance to
usage. Vehicles spending more time on analytics will play a major role in design- mandates that only firms approved by
pre-Covid levels.
the road may attract a higher premium ing these policies. the RBI can acquire and offer payment
services to merchants.
banking
The Economic Times Wealth July 11-17, 2022 09
How benami auditor put PMC bank
depositors’ money in jeopardy
by N. Sundaresha Subramanian with deposit of over `100 crore. The bank It was only during his arrest that
became dependent on Wadhawans with Lakdawala confessed to the real nature
I
n a Freudian slip, the resolution of about 60% of transactions coming from of the relationship between Sangani and
appointment of auditor of Punjab them. By 2005-06, PMC’s exposure to the himself, and the former’s key role in the
and Maharashtra Cooperative Bank group grew to over `500 crore. audit. He went on to explain how a lion’s
(PMC Bank) mentioned the name According to the chargesheet filed by share of the fee went to Sangani, his son
of Ashok Jayesh and Associates EoW, HDIL group started defaulting in and associates. Against a total fee of `55
(AJA), the firm belonging to Jayesh D. various credit facilities in 2011 itself. lakh and `60 lakh paid by PMC Bank for
Sangani as the statutory auditor in place As many as 21 major loan accounts were 2017-18 and 2018-19, Lakdawala said he re-
of Lakdawala & Co, who was to take charge not declared NPA and false records were ceived only `16.5 lakh and `15 lakh.
from the financial year 2017-18. Not many reported to the RBI to shield the actual In a legal notice sent in March,
in PMC Bank at the time knew that this financial position. It is not clear how much Lakdawala referred to long association
was a clue to the way things would unfold. was known to Sangani and how much of of Sangani’s firm AJA first as statutory
Almost five years later, Ketan what he knew he shared with Lakdawala. auditor between 2008 and 2011 and then
Lakdawala, who had floated Lakdawala In regular practice, the statutory audi- between 2014 and 2017 and as concurrent
& Co, has written to the disciplinary tors are appointed by shareholders in the auditor and alleged that even during the
directorate of the Institute of Chartered AGM. But, in the case of PMC Bank, the years 2017-19 period when Lakdawala & Co
Accountant of India (ICAI) saying he was board had obtained powers to appoint the was the auditor, “audit of PMC bank was al-
just lending his name, while the de facto auditor. When Sangani’s firm had to be ways conducted under your guidance and
auditor of PMC Bank for 2017-18 and 2018-19 Wadhawan family dates back to the rotated out after the completion of three direction”. However, soon after, Sangani
was allegedly Sangani himself. The revela- 1980s. Started in 1984, the bank faced its years, it was decided to get Lakdawala in. reached out to Lakdawala and a secret set-
tions give a new twist to the investigations first crisis two years later. In 1986-87, Though Lakdawala himself had partici- tlement is said to have been arrived at.
into the `6,300 crore PMC Bank scam. the Wadhawan family led by late Rajesh pated in the PMC Bank audits as part of “The story brings to fore the menace of
Lakdawala joined AJA as a partner in Kumar Wadhawan infused capital of `13 AJA, now he was to be the signing partner benami audits and auditors. Many small
2003. For over a decade, Lakdawala worked lakh and transferred deposits with other for a large audit. CAs are wooed into accepting these kinds
in AJA for a fixed salary of `36,000 and banks to PMC Bank. ICAI’s disciplinary directorate had is- of mandates. This badly affects the integ-
fixed annual profit of an equal amount. It In 2004, when there was a run on the sued notices to Lakdawala, which said the rity of the profession and the audit process.
is during this period, AJA and Sangani be- bank following the collapse of Global auditors missed years of violations at the The institute should tighten regulation to
gan the association with PMC Bank. Trust Bank and some cooperative banks, PMC Bank. In reply Lakdawala blamed the ensure the practice is curbed,” said a sen-
PMC Bank’s relationship with the Wadhawans came to the rescue again management for perpetrating a fraud. ior member of the community.
Housing sales slump 19 in Delhi NCR
%
H
ousing sales in Delhi-NCR fell Delhi-NCR is one of the biggest real
19% to 15,340 units in April- estate markets in the country, but it has
June compared to the previ- been severely affected due to stalled and
ous quarter on lower demand delayed housing projects. Homebuyers
due to rise in property prices who booked flats in NCR are worst
as well as mortgage rates. In January- affected, as they have not received
March 2022, housing sales stood at 18,835 possession of their flats but almost
units in NCR. paid the entire purchase value to the
According to data compiled by Anarock, builders. Flat owners are also paying
one of the leading real estate consultants EMI on their home loans.
in India, the new launches or supply de- Anarock data showed 4,79,940 units
clined 56% in Delhi-NCR to 4,070 units in worth `4,48,129 crore are “stalled or
April-June from 9,300 units in the previ- heavily delayed” across these seven cit-
ous quarter. ies as of 31 May. Out of this, Delhi-NCR
S
The unsold housing stocks declined 7% GE alone accounts for a whopping 50% with
A
in Delhi-NCR to 1,41,235 units at the end of M 2,40,610 stalled or delayed units worth
YI
June quarter from 1,51,500 units as on 31 T `1,81,410 crore. Noida and Greater Noida
T
E
March 2022. G region account for nearly 70%t of total
Giving a breakup of the Delhi-NCR stuck/delayed units while Gurugram’s
data, Anarock said that housing sales in from nil in the previous quarter. 7% decline from the March quarter. share is only 13%. In Noida and Greater
Gurugram fell to 7,580 units from 8,850 In Ghaziabad, housing sales declined Unsold housing inventories in Greater Noida, there are 1,65,348 units worth
units. New launches dipped to 2,830 units to 1,650 units in April-June from 2,080 in Noida fell 8% to 28,875 units at the end of `1,18,578 crore stalled or delayed. While
from 7,890 units. the previous quarter but new launches the June quarter. Ghaziabad saw its un- Gurugram has 30,733 units worth `44,455
In Noida, housing sales declined to 1,650 rose to 740 units from 220 units. sold stock decline by 5%to 17,990 units in crore stuck/delayed, the Ghaziabad mar-
units in April-June 2022 from 2,045 units Housing sales in Faridabad, Delhi and Q2 2022 from 18,900 units in Q1 2022. ket has 22,128 such units valuing `9,254
in the previous quarter. There were no Bhiwadi combined fell to 1,710 units dur- Unsold housing stocks in Noida fell 12% crore. Delhi, Faridabad, Dharuhera and
new launches in the city in the June quar- ing April-June 2022 from 2,410 units in to 12,150 units at the end of June quarter as Bhiwadi together have 22,401 stuck/de-
ter as against 270 units in the previous the previous quarter. New launches, too, against 13,800 units in the preceding quar- layed units worth `9,124 crore.
quarter. were down to 110 units from 920 units. ter of 2022. Meanwhile, Delhi, Faridabad
Housing sales in Greater Noida fell to Out of the total unsold inventory in and Bhiwadi together have over 23,100 un-
Please send your feedback to
2,750 units from 3,450 units, while new Delhi-NCR, Gurugram currently has the sold units as on 30 June. It was 24,700 units
[email protected]
launches rose to 390 units in April-June maximum stock of around 59,120 units, a at the Q1 2022-end, the data showed.
stocks
10 The Economic Times Wealth July 11-17, 2022
Firms that will gain from
rising refining margins
Standalone refiners and those with limited exposure to marketing
segment will benefit from elevated refining margins. However,
OMCs will suffer as marketing losses will eat into refining gains.
by Sameer Bhardwaj
D
emand-supply mismatch in
the oil market has led to a
surge in refining margins.
Demand for petroleum
products is rising amid
increased consumer spending, global
economic recovery, easing of covid
restrictions and rebound in travel and
tourism. On the other hand, supply has
failed to keep pace due to sanctions on
Russia, limited exports from China, un-
certainties regarding the Iran nuclear
deal and lower OPEC output.
Analysts believe supply tightness
S
GE will keep refining margins elevated
A
M in the near term. But a global reces-
TYI sion could reverse such high refining
T
GE gains. The benchmark Singapore Dubai
Hydrocracking refining margin hit a
multi-year high of $39.42/barrel in the
last week of June 2022. It has averaged
$28.85/barrel in 2022-23 so far compared
to an average of $4.03/barrel in 2021-22. prices will provide additional benefits. Singapore Dubai hydrocracking refining
In the first quarter of 2022-23, such mar- Moreover, rising oil prices lead to invento-
gins increased by 142%, according to ry gains as the inventory is sold at a higher margins hit a multi-year high in June
data compiled from Bloomberg. price compared to the price at which it was
The jump in GRMs is supported by an purchased. The price of Brent crude has
FIGURES IN $/BARREL 36.82
increase in product cracks. According averaged $111.9/barrel and gained close to
to a Motilal Oswal report, crack spreads 10% in the first quarter of 2022-23. In 2022
of diesel, petrol and ATF rose to $40/ so far, oil price gained 45.9%.
barrel, $33/barrel and $39/ barrel re- However, not all oil refining companies
28.27
spectively in the first quarter of 2022-23 will benefit from the refining upsurge.
compared to the 20-year average of $12, Integrated operations (refining and mar-
$11 and $13/barrel. keting) of OMCs will not see any gains in 22.32
GRM measures how much a company the first quarter of 2022-23. “OMCs are
earns by refining a barrel of crude oil. expected to report negative EBITDA and
It is calculated by taking the difference net losses in the first quarter of 2022-23
14.71
between the total value of petroleum due to high marketing losses that will
products coming out of an oil refinery offset the refining gains.” says Swarnendu
and the price of the input, which is the Bhushan, Senior Group VP, Oil & Gas ana-
crude oil. The higher the GRM, the bet- lyst at Motilal Oswal Financial Services. 6.19 6.83 6.45
ter the refining performance. Looking at 2022-23 expectations, analysts 5.19 4.53
For Indian refining companies, die- compiled by Bloomberg have downgraded
1.68
sel and petrol account for 55-60% of the standalone earnings estimates for all three 0.64 0.72 0.92
product slate and, therefore, the surge OMCs. Indian Oil, HPCL and BPCL have
in cracks will be beneficial. Also, sourc- seen earnings downgrades of 10.3%, 31.3% Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
ing of crude from Russia at discounted and 42.3% in three months. Also, analysts 2021 2021 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2022