The Destruction of Savings and the Threat of Old Age Poverty

The Destruction of Savings and the Threat of Old Age Poverty

By not investing in equities for the long term, too many Indians are setting themselves up for old age poverty

From an investment perspective, India is a fixed income country. An overwhelming proportion of financial savings and investments that Indians make are in fixed income avenues. These are dominated by bank deposits and various government small savings schemes like PPF and National Savings Certificates (NSC). Even the money that we invest in mutual funds is overwhelmingly (70 per cent of it) in fixed income funds.

Interestingly, our love for fixed and predictable returns has somewhat lessened in recent decades. Till about thirty years ago, the very idea of investing in anything else was literally unknown to people outside a limited set who were involved first hand with the stock markets. In fact, the only time some more investors dabbled into equities was when they filled out an application form for an IPO, or just 'issue', as it was then called. This changed to some extent from about the mid-1990s onwards. There arose a small but distinct equity culture where individuals started investing in equity mutual funds in reasonable numbers. Unfortunately, this nascent equity culture is now in full retreat. In the last few years, the number of investors in equity funds as well as the inflows into such funds has been weakening. Last year's (2012-13) data from industry body Association of Mutual Funds in India (AMFI) shows that even among richer investors (HNIs, in the jargon), fixed-income is the preferred asset class.

People who are pulling out of equity--and those who are advising them--try to find some justification for these numbers. Sure, equity returns have been below expectations for some time now. Three-year returns of an average large-cap equity fund stand at 5.4 per cent while five-year returns are also about the same. Meanwhile, fixed-income funds yield in the region of 8 to 10 per cent, depending on the type and the time horizon. However, this is a short-sighted view which inevitably leads to the returns-chasing behaviour. When equity will start going up sharply, then investors will rush in.

However, this kind of self-destructive investor behaviour arises out of not appreciating the fundamental difference between equity and fixed income.

Fundamentally Different

 

Equity and fixed income are not merely two sides of the same coin. They play fundamentally different roles in the economy and in businesses and this difference means that in the long run equity is far superior. This superiority is not incidental to some particular economic situation or to some businesses. It is an inherent characteristic.

Let's examine the differences from the basics. What is the best way of earning money? If you look around, you will realise that for anyone who is good at running an enterprise, the best place to invest is in your own business. However, not all of us can be businessmen. Fortunately, because of the existence of the equity markets, any one of us can become an owner (or rather, a part-owner) of a business. The stock market is basically a way for all of us to reap the financial advantages of being a business-owner with very few of the challenges that a real owner or manager of a business must face. This is the way to get real growth of your money: growth that can beat long-term inflation, and equity is the only option.

To understand why this is so, one should understand what is the source of equity profits. The ultimate source of profits in equity is the growth of the economy. On the whole, stocks grow at a rate that is at least equivalent to the growth of the economy. And the inflation rate is built into the growth of the economy. If inflation is 5 per cent and the real economy grows at 5 per cent, then stocks on the whole will at least match 10 per cent. And that's the average. On top of that, as an investor, if you are able to select stocks that are better than average (through a good equity mutual fund, for example), then you can beat the general rate of economic growth by a larger margin.

If you look at the past trend, then this characteristic is evident. Over a long period, you can expect stocks as a whole to grow about as much as nominal GDP does. The GDP figure that you read about is adjusted for inflation, that is, the GDP is measured and then reduced by the inflation amount. This makes the GDP comparable across years. However, the rupee value of the GDP has increased by the non-adjusted amount, which is called nominal GDP. This is the actual value by which business and other economic activity increases.

If you compare the average GDP for five years ending 2000 with the average of the latest five years with the Sensex, then the GDP is up 5 times and the Sensex is up 4.6 times, which is good enough for most. There may be some caveats to this--like the Sensex is not all stocks but it's a rule of thumb and is an excellent rough guide to the long term growth potential of equities. Of course, this relationship doesn't actually hold if one goes back past 1993--but India was a very different kind of economy at the time and economic growth was not well-connected to business growth. Therefore, what this relationship shows is that broadly, equities will deliver to you what the economy grows by, plus what the businesses grow by.

Fixed income is a different kettle of fish. Fundamentally, fixed-income investing means lending money to someone. When we say lending, it actually includes activities that you may not normally think of as lending. Lending just means giving someone money and getting interest income in return. For example, depositing money and getting interest on it is lending. When you make a deposit in a bank (it could be a fixed deposit or a savings account), you are lending money to the bank. When you make a post office deposit or PPF deposit, you are lending to the Government of India.

However, the scope of gains is sharply limited compared to investing in shares. When you lend to a business (by making a bank deposit, for example), your gains are limited to the interest rate that the business has agreed to pay you. No matter how successful that business may become, you are not going to get more than that. Of course, the risks are limited too. In most such lending, the risk of losing money or not getting your interest is rather limited. The rewards are predictable and so are the risks. Fixed income mutual funds do deliver a twist on this lending theme by trading in bonds, but for the purpose of this article, they principally amount to lending.

We now have the basic principles on which our argument is based. Equity has the potential to deliver growth which is over and above what the inflation rate is, while fixed income (or debt or bond) investments can deliver only same rate of return that is inextricably connected to the inflation rate. Let's take a step back to understand why inflation is such an important factor. Inflation is the effectively the reverse of compound interest, it's like decompounded interest.

Each year's inflation occurs on top of the previous year's inflation, it means that the effect is just like that of compound interest. Consider a situation where you invest Rs 1 lakh in a deposit which earns you 8 per cent a year. At the same time, the prices are also generally rising at the rate of 8 per cent a year. In such a situation, your compounding returns will just about keep pace with inflation.

The actual amount will increase, but what you can do with it won't. So, for example, over ten years your Rs 1 lakh will become Rs 2.16 lakh. However, at the same time, on an average the things you could buy for Rs 1 lakh will also cost Rs 2.16 lakh. In effect, you have not become any richer. The purchasing power of your Rs 1 lakh is still Rs 1 lakh.

But inflation may not be so kind as to stay at the level of the interest you are earning. What if it's more? And what if this goes on for a very long time. Suppose your returns are 8 per cent but inflation stays at 10 per cent and twenty years go by? Your investment would grow to Rs 4.66 lakh but things that used to cost Rs 1 lakh would now cost Rs 6.72 lakh. Now, the purchasing power of your Rs 1 lakh is just Rs 69,000. Your investment has actually made you poorer! This is not a theoretical problem, it's happening all the time to crores of Indians. Our propensity for using bank deposits and other fixed-return investments is the cause of this problem. The problem is especially severe for retired people who depend on long-term deposits for income.

So coming back to where we began--why is India a fixed income country? Despite being a relatively high inflation economy, why don't investors switch to equity more enthusiastically than they have done so? The first reason is that this is actually a circular problem. Because inflation is high, fixed income returns are also high. We can get 8, 10 or even 12 per cent from different kinds of deposits. In earlier times, one could even get 14 or 15 per cent from a bank FD. These returns are low in real terms but the headline number is big. It creates an illusion, a false impression, that you are earning a lot of money. In reality, getting 10 per cent when inflation is 9 per cent is no different from getting 5 per cent while inflation is 4 per cent. Thus, paradoxically, higher inflation makes fixed income look more palatable.

Source : www.valueresearchonline.com

Income Tax Planning

Franklin D. Roosevelt said; "Taxes, after all, are dues that we pay for the privileges of membership in an organised society." Tax is a compulsory payment made to the Government for services it provides us, though people may not be completely satisfied or convinced with these services.

Eligibility

• Any individual or group of Individuals or artificial bodies who or which have earned income during the previous years is required to pay income tax on it

• When companies pay taxes under the Income tax Act it is called Corporate Tax
• The IT Act recognises the earners of income under different categories
• Each category is called a status, which includes: Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of individuals (BOI), Firms and Companies, Local Authority

Entry Age

• No age is specified

• Income arising or accruing to minor is to be included in the total income of that parent whose total income (before such inclusion) is greater

• Income arising to the minor child as a result of some manual-work done by him or from such activity involving application of his skill, talent or specialized knowledge and experience is not to be included in the hands of the parents. For example, income of a child actor or singer derived from acting or singing is not covered by this clubbing provision

Other Aspects

• Need a PAN (permanent account number) to file returns

• Need to have adequate income to file returns

• Condition of residency

Tax Payee

• Individual

• Hindu Undivided Families (HUF)

Income tax is an instrument used by the government to achieve its social and economic objectives. Simply put, tax is duty or tariff that income earning individuals pay to the Government in exchange of certain benefits such as law and order, healthcare, education and a lot more. With proper planning, your tax liability can be reduced and optimized effectively, leaving you with a greater share of your income in your hands than being paid out as tax. Income earned in the twelve months contained in the period from 1st April to 31st March (Financial Year) is taken into account when calculating income tax. Under the Income Tax Act this period is called the previous year.

Assessment Year: It is the twelve-month period 1st April to 31st March immediately following the previous year. In the assessment year a person files his return for the income earned in the previous year. For example for FY: 2012-13 the AY is 2013-14. You are required to pay tax if your income in a particular year is above the minimum threshold in the category of taxpayer that you fall in. There is however, certain other criterion that decides that you need to pay income tax depending on your residential status in India.

The three different residential statuses' are: 

• Resident Indian

• Non-Resident Indian (NRI)

• Not Ordinarily Resident (NOR)

What is Gross Total Income?

The gross total income is the sum of all sources of income that an individual has or the total income he earns in a financial year. It can fall into one of the five heads:

1. Income from Salary

2. Income from House Property

3. Income from Profits and Gains of Business or Profession

4. Income from Capital Gains

5. Income from other Sources

Tax Deductions

Deduction is the reduction that one can claim under different heads to reduce the tax liability, thereby reducing the income tax that pays.

Section 80C

Section 80C offers a window of investment opportunities on up to Rs 1 lakh investment in each financial year. This benefit is available to everyone, irrespective of their income levels. For instance, if you are in the highest tax bracket of 30 per cent, the investment of Rs 1 lakh under this section will save you Rs 30,000 each year. The various financial products that qualify for Section 80C benefits are as follows:

• Life Insurance premium payment

• Home loan principal, wherein the principal portion of the home loan EMI qualifies for deduction under Section 80C

• Employees Provident Fund (EPF) where 12 per cent of your salary is deducted every month and an equal amount is contributed by your employer and put into a fund maintained by the government or your company’s provident fund trust. Only your contribution towards the fund is eligible for deduction from taxable income of the basic salary towards EPF

• Tuition fees up to children can be claimed for. However, any payment towards any development fees or donation to institutions is excluded

• Contributions to the public provident fund

• Investments in the senior citizens savings scheme

• Savings in notified term deposits in scheduled banks with a minimum period of five years under the bank term deposit scheme, 2006. Savings in post office time deposits with 5-year lock-in

• National Savings Certificate, six-year government-backed security available at post offices

• Investments in tax planning mutual funds, popularly known as Equity-Linked Savings Scheme (ELSS)

• Investments in pension plans

Other Deductions

• Section 80D: Premium payments towards medical insurance for self, spouse, children and parents qualify for deduction. The limit is Rs 15,000 for self, spouse and dependent children up to Rs 15,000. Additional deduction up to Rs 15,000 for the parents going up Rs 20,000 if the parent, for whom the policy is bought is aged 60 years. Preventive health check-ups up to Rs 5,000 within limits qualify for tax deductions under section 80D.

• Section 24: Interest on home loan with a maximum deduction of Rs 1.5 lakh as interest payment on home loan for self-occupied property and unlimited for property that is let out.

• Section 80E: Interest on educational loan qualifies for deduction on full-time studies for any graduate or post graduate course. However, there is no benefit on principal repayments.

• Section 80G: Donations to funds and charities from 50 or 100 per cent of the donated amount, depending on the charity, is deductible from income. But this shouldn’t exceed 10 per cent of your gross total income.

• Section 80DD: Deduction up to Rs 50,000 or Rs 1 lakh on the medical treatment of a dependent with a disability, certified by a medical authority.

• Section 80DDB: Deduction up to Rs 40,000 for assessee under 65 years and Rs 60,000 for senior citizens on costs incurred for treatment of specified illnesses such as malignant cancer, chronic renal failure, Parkinson’s disease and other listed diseases.

Source: www.valueresearchonline.com

While we are sleeping...!

“Thoda market ko stable hone do, phir invest karenge”, exclaims a potential investor being chased by every salesperson of a financial intermediary in these dampened markets. In hindsight, the salesperson is offering the sanest advice to invest especially when the markets are battered and bruised. However, the person who was thinking to invest has never run out of reasons for his preference towards real estate and gold over equities. His primary reason of abstaining from equities is waiting for the Indian markets to resuscitate. While equity Investor continue to sleep and invested heavily in gold and real estate, the markets are offering them umpteen hints to resume investing.

European debt crisis

It all started in the late 2009. Commonly known as the Eurozone crisis, the crisis made it almost impossible for some countries to repay their government debts. Banks over there being grossly undercapitalized and compounded by liquidity problems sent shockwaves among the global investors. The investors were caught in the fears of sovereign debt crisis amongst the European nations which was spread unevenly; most famous being Greece. Speculations were rife nationally and internationally that Greece will default on its debt. Sentiments were poor, markets crashed globally; Greece was Europe’s best performing stock market in 2012 clocking 33%. All expert opinions of carnage in the markets went for a toss along with the investor’s belief of investing only when the markets are stable.

Political instability in UPA

“UPA proposes Mamata disposes” was becoming the norm in everyday headlines; until one day Congress decided to part ways with its second biggest constituent of the UPA with 19 members in Lok Sabha. She wanted the withdrawal of FDI, rollback of diesel prices and raising the cap on subsidized cylinders. All in all, she was firing cylinders from left, right and center. Then the experts started claiming “although reforms will start, but political stability is a concern”. Indian investors got another reason to wait and let the UPA stabilize, and then they would invest. UPA was stabilized eventually, but Investors continued to stay away while Foreign Institutional Investors were enjoying the party. In fact, there were net redemptions in Mutual Funds by retail investors.

Current account deficit and fiscal deficit

After politics was stabilized, then came the issue of widening Current Account Deficit (CAD) and fiscal deficit faced by India. Various economists and all sorts of forecasters were cutting down expected growth rates. Every day we were getting a new growth rate ranging from 5 to 7 to 9 percent. There were some suave statisticians giving the numbers like 6.1, 5.2, 5.8 percent etc blaming everything on the CAD and fiscal deficit. In fact, these two terms became so hot and sexy in the markets that it made every expert sound very cool. Meanwhile Sensex almost touched 21,000, FIIs enjoying the party!!. But investors were brainwashed that it’s a good time to invest but paradoxically they were consistently warned against CAD and fiscal deficit. Indian investors took the latter part more seriously and continued their own party with gold and real estate. Let’s not discuss what really happened to Gold.

Weak unemployment rate in US

The unemployment rate in the US jumped to 7.6% while the Dow Jones was and continues to hit a new high every day. And then Mr. Bernanke hinted the tapering of monetary policy rocking the Indian bond and equity markets. We were more worried about FIIs pulling out their money (which they did not); although the continuous bond purchases were not showing considerable improvements in the employment data.

Weak Indian Currency

The rupee fell to an all-time low of 68 against the dollar. The key reasons were widening CAD, fiscal, strong dollar (of course), weak economic fundamentals, etc. Not to forget that problems relating to political instability, Eurozone crisis and weak unemployment in US have been completely resolved now! So Indian markets crashed because of the falling rupee (they say so), bond markets took everyone by surprise forcing the RBI to step in and take some strict measures while the “Potential” equity investors are still waiting for the rupee to “stabilize” at 55 or 54 or 53 or whatever to enter the markets. Meanwhile there was more news about the retail investors discontinuing their SIPs and falling rental yields in housing markets.

Despite the political turmoil, massive terrorism and an economy expected to grow by only 3.6%; the Karachi Stock Exchange has risen by 40% so far this year in local currency terms. This performance is second only to Japan. While we do not expect some egregious terrorist attacks or the situations like Greece to give us the opportunity to enter the markets, the inconsistent selling of FIIs are a great opportunity for retail investors to start entering. As per the studies, it takes only 60 best trading sessions for an investor to lose opportunities in stocks. So either one can safely assume that the gutsiest investors always gain in the stocks or the ignorant will always continue to ignore the hints. I concur that times are bad but this is the time to enter before it all starts getting better. So let’s not miss the bus this time.

Source: PPFAS

No Alternative to Equity

The way inflation has increased over the last few years, there is a great possibility of cost over-runs in all your goals. Shed the conservative approach...

                         -         An article from Value Research Online

My husband and I are both aged 38 and our combined net income is around Rs 2,06,000 per month. We pay house loan EMIs of Rs 43,000 and Rs 40,000 respectively from our incomes. We get a combined rental income of Rs 32,000 from both these houses. Our monthly expenditure is Rs 45,000. Since January 2012, we have monthly SIPs of Rs 70,000 in 9 different funds. Both of us also have term plan for Rs 1 crore each and a health cover provided by our respective employers.

Both of us plan to retire by 60 and want to save for higher education of our two sons (keeping aside Rs 50 lakh each in current value) and accumulate a corpus of Rs 3 crore for our retirement.

My husband will also withdraw Rs 10 lakh from his PF account soon. Can we use this amount to bring down our liabilities? Are our SIPs sufficient to meet the goals that we have set?                                                                                                     - Vijaya

It's good that you have clearly-defined goals and have set a definite duration to achieve them. But one thing that comes out upon seeing your portfolio is over-dependence on debt. While it is true that one should have a sufficient amount which is there for taking all the time, returns from debt are way too moderate to fulfil long term plans. So, to begin with, change your style of investing and increase your investment into equities. Second, you also lack sufficient health insurance cover. Buy a separate policy of your own that offers a lifetime renewal. This will meet unforeseen medical expenses.

Insurance

Continue with your term life insurance plans as they cost less. It is good that your employer offers a Mediclaim which have now become portable too at an additional cost. However, it may not be sufficient. Go for a family floater policy of your own where the sum insured can be utilised by any of the insured members. Continuing with the same health policy over the years might actually provide higher benefits than the costs. If you do not make any claims for a few years, no-claim bonuses will add up and offer a larger cover without any increase in premiums due to the higher sum insured. Continuing the same policy from young age will allow you a greater coverage in the later years when buying a new policy becomes difficult.

Investments

Your current portfolio is doing good. But if we look at your current investments and savings you have a portfolio allocation of around 75 per cent into debt and remaining into equities. Adding to it is your home loan liability. You have a long time to go for your goals which means you can do with greater risk to improve your returns considerably over time. Change your strategy to invest at least 90 per cent into equities. Exit from HDFC MIP and the two Balanced schemes in your portfolio and switch to other schemes in a proportionate manner. Make sure to review your portfolio regularly to check any deviations and take corrective actions. Start shifting your funds to debt to lock-in equity returns as you near your goal. Take a look at our recommended portfolio wherein we have retained three of your existing schemes and added three new ones which you should consider.

Goals
You have accumulated around Rs 13.40 lakh through SIPs which will grow further. Your first goal to accumulate for your sons' higher education can be met within the time frame mentioned. Consider the following points to save the desired amount for your rainy days:

* Keep an amount equal to your 6 months' expenses in bank FD as contingency fund which comes to around Rs 3 lakh. After doing that, take out the surplus and invest into equities through Systematic Transfer Plan wherein you park your funds in debt mutual funds that get invested into equities systematically

* Once you get rid of your loans, you can use the surplus to increase your investments towards retirement planning

* You may use your husband's PF amount to repay your loan. This will reduce the principal amount you owe and your interest costs will also reduce

* Use your KVP maturity proceeds to either pay your loan in advance or increase investment in equities through STP. Compare both the options before bringing your KVP proceeds to use.

Experience shared by Summer Interns :)

Vandana R

When I began my MBA journey, I was quite confused about the direction in which my career would steer. Internship at NK Capital Inc helped me get a clearer vision. This summer internship opportunity gave me an exposure into an entirely new area of work. I am now well versed with various disciplines in the field of finance. This experience has no doubt helped me enhance my professional career.

Interning at NK Capital Inc helped me understand investments better. As I did my research on financial planning, I got an opportunity to understand various investment alternatives that are available.

NK Capital Inc is a one stop shop for all financial planning. Thus I got a brief idea about all the investment alternatives. However for my project I concentrated on the four main asset classes- Equity, Debt, Gold and Real Estate. I understood the criticality in making investment decisions as every individual is different from the other in various aspects like income, risk appetite, financial goals etc.

At NK Capital Inc I also understood that relationship building is most essential for a business to prosper. Here, each client is important no matter how much business he generates. Going for a few client meetings, I have learned how to interact with the clients and also learned the skill of analyzing their need.

Apart from all this, I would always cherish the relation I made with the founders of NK Capital Inc, Nupur and Komal. They helped me widen my knowledge and skills not just about the financial market but also assisted me to take right decision in the upcoming future.

Sanal Anjickal

A drastic shift from college routine to professional timing, from faculty guidance to being answerable at work place, from discussions regarding weekends to the movement in Nifty and Sensex, from assignments to targets, this summer had a bag full of surprises. These two months could not have been spent in a better way other than an internship at NK Capital.

At NK I was given a wider picture of financial markets. NK being a wealth management firm, every discussion and task that I was a part of has enhanced my knowledge. NK’s mission to be a one stop solution for all financial needs of an individual introduced me to different investment opportunities available for an individual at his disposal. Each individual being different from other and his needs being totally different, to tailor an investment opportunity as per that was a great learning.

I was provided the apt guidance for my future endeavors in life. The experiences of being a part of this small but family like team, the excitement, the thrill, the tension and the strategy building to meet targets have instilled in me a sense of being responsible and a readiness towards being more  professional in my dealings.

There are few things that I have learned during this short span of industry interaction which I am sure my MBA textbooks would not teach me. Primary take away for me would be the lesson that one needs to compromise and set priorities in life to see their dreams turning into actions. I learnt that there was one major thing that drives this business or even every business is the personal interaction that is built with clients.

At NK what I always found was the ever smiling faces of two entrepreneurs Nupur and Komal, the founders of NK Capital. Without their help and constant support this summer would not have been fruitful. The freedom that was given to me to put in any queries was very helpful that shed away my hesitation. This experience at NK was a small step in right direction in achieving my future goals. My time spent at NK was one of the best investments I ever made in my life.

Corporate Alliance

As the cliché goes, “A long journey starts with a single step”, for NK Capital the long journey of corporate collaboration started with taking the first step into MS International, Inc. – India. MSI is the largest supplier of natural stone in the United States. It is the leading distributor of countertop, flooring, wall tile and hardscaping products in North America and has its operating office for India in Bangalore.

Mr. Neerav S Doshi, Mr. Darshan Sheth and Mr. Nirav Shah took a commendable initiative to educate their employees about the various investment opportunities and their benefits.

NK Capital Inc. is associated with MSI for the Tax and Financial Planning segment of all its employees in Bangalore. At MSI, NK Capital addressed a gathering of around 70 employees giving them an overview on financial markets, risk and return correlation of investment alternatives for short and long term horizon.

The employees were very co-operative and made us feel a part of the MSI group. The affectionate and hospitable environment was encouraging to have an interactive and informative session.

NK Offers to MSI Employees:

• Generate returns through varied investment products
• Customized Investment Strategies to fit the unique and complex needs of MSI employee
• An experienced personnel who will constantly monitor and evaluate their investments
• Research methodologies that would help in reducing risks and enhancing returns

MSI sharing their experience:

Darshan Sheth –Team Leader

Nirav Shah – Process Associate

It was a nice experience to have a session with NK Capital Inc. The relationship managers had very wide knowledge of products related to equity market and mutual funds and all other modes of investments. They were helpful in clarifying all our queries very patiently and suggested products which suited our requirements which can achieve our long term goals & also helped us in diversifying our portfolios. They were clear on their vision and must say that - They are very approachable.

Child Education Planning

It is every parents dream to provide the best of everything to his child. A sound education would undoubtedly be at the top of the list. However, it now costs more to bring a smile on child's face than it once did to educate his father. Quality education comes with an expensive price tag, and you need to invest today in order to gift your precious one the education he deserves tomorrow. With every passing year the cost of child education is increasing beyond our imagination. Apart from course fees there are other expenses involved which are normally ignored.

Course	What it Costs Today (Rs.)	5 years later (Rs.)	10 years later (Rs.)	15 years later (Rs.)
Engineering	5,00,000	6,69,112	8,95,423	11,98,279
Doctor	15,00,000	20,07,338	26,86,271	35,94,837
MBA	8,00,000	10,70,580	14,32,678	19,17,246
Foreign Study	15,00,000	20,07,338	26,86,271	35,94,837

   (Increase in the cost of education assumed at 6% every year)

If the cost of education is going to increase by more than 3 times in next 15 years assuming inflation @ 6% then you need to choose a right asset class to plan for your child's higher education.

NK Capital helps you secure your child's future without compromising on their dreams. Dreams come into reality when it is nurtured.

Outstanding Opportunities this Summer!

Summer’s the perfect time to give your career a head start. NK Capital Inc.’s summer internship program is the ideal opportunity to gain an introduction into the world of Investments and Wealth Management. Our program will give you the opportunity to fully integrate into our team and work on real projects. The experience will provide you with a great mix of training, knowledge development and professional skills.

Our 10-week Internship Program runs from April to June. This programme will provide the interns with a hands-on experience within our business and an opportunity to gain real exposure from day one. They will be guided by an assigned tutor as well as a manager. Interns generally work as a part of a small cross-functional team, on a live, challenging, “business” project. The project provides the interns a thorough and holistic understanding of Business and its various functional aspects. The internship starts with an overview of financial services industry and ends with a presentation on the project for managers, colleagues and other summer interns.

Summer 2013

Meet our new interns:

Sanal Anjickal

A team builder with good communication skills, he is a student at St Joseph College of Business Administration, Bangalore pursuing PGDM in the field of Finance and Marketing. He is here to explore different Derivative Strategies applicable in the stock market.

Vandana R

Pursuing PGDM in the field of Finance and Marketing from St Joseph College of Business Administration, Bangalore; she is a strong team player with excellent interpersonal skills. She is here to conduct a study on Financial Planning with various investment alternatives.

A very warm welcome to the team!