FLAME Newsletter - August 14, 2013


“Financial products are complex and often opaque. Savers and investors are handicapped by information asymmetries; they make choices based on inadequate information and are driven by irrational emotions” — Dr Duvvuri Subbarao, Governor, RBI


How to achieve financial independence

Our finance is like using water everyday. We store water in a pitcher with a tap for outflow at the bottom of it. The water flowing into the pitcher is our income and the water flowing out of the pitcher are our expenses. Sometimes, the water may not be available to you, so do we stop using water? No! We don't stop using water, we store water when it is in plenty and use when it is scarce.This act is called saving.
Similarly, we need money to meet our present and future financial needs. We also need money to achieve financial independence. Financial freedom is necessary for each one of us so that we are not dependent on other people to support us for our requirements. Therefore, financial freedom gains importance for all of us. Most of us earn surely have some source of earning income.

It is high time now that we start thinking seriously about our savings and investments to achieve financial freedom. Financial independence is necessary to meet our financial goals such as money needed for our retirement, buying a house, education of children, their marriage, etc.Financial independence helps us to make a budget of our daily expenses, buying the right insurance cover and making smart tax and investment decisions. By and large, financial independence is primary. Try some of the below mentioned steps to increase your financial freedom... Read more

Do you need a financial planner?

Power of compounding… A motivating story

Long back, when the inventor of the chess showed the game to an Indian king, the king was so impressed by the new game, that he wanted to reward the inventor. At that time, the inventor replied, “My wishes are simple. I only wish for one grain of rice for the first square of the chessboard, two grains for the second square, four grains for the third square, eight for the fourth square and so on for all 64 squares.”

The inventor said, “Please double the number of grains in the next square compared to the earlier square.” The king was amazed to hear that the investor had asked for such a small reward. He happily agreed to the inventor’s request. However after a week, the king’s treasurer informed him that the reward would add up to a huge number—far greater than all the rice that could possibly be produced in many centuries!

Do you know how much rice it would be when one reaches 64th square of the chessboard... Read more

Understanding the importance of early investing

Good habits to manage your finances


What are other tax saving options other than Section 80C
Most of the taxpayers know only about the type of deductions and the limit of deduction under Section 80C but there are few more deductions which taxpayer can claim to lower the amount of tax payable. Listed is a comprehensive picture of tax deductions and exemptions that you are entitled to in various financial products...Read more


What does sweat equity shares mean?
The term "sweat equity" indicates equity issued to directors and long time employees who have work hard from the inception of the company to build it with a brand image and thus contributed significantly by their efforts in this direction. Sweat equity shares can be issued by the company to employees or directors at a discount or for consideration other than cash, for providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called.


IRDA allows banks to act as insurance brokers

SEBI set for major overhaul of role, vision

Unauthorised investment schemes are fraudulent, unfair: SEBI

MFs assets falls over 6% to Rs. 7.61 trillion in July

Miscellaneous insurance premiums rise to Rs. 84bn in FY13


FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.

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