Human beings not only think about their present but also about their future, so it is significant to do something that will at least give them financial security and help them in growing their wealth. None of us is aware of our future, so instead of sitting quietly and doing nothing, it is better to invest in something that can at least play the role of an umbrella for us during a rainy day.
Life Insurance Corporation of India also known as LIC is the biggest life insurance company in the country. If you live in India, there is no way, you haven’t heard about LIC. This life insurance company has captured 70% of the market share and is under the Government of India. In this, we are going to talk about LIC IPO, what it exactly is and what are the things we need to know before investing in them. So, let’s get right into it.
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” —Robert Kiyosaki
LIC IPO is LIC’s Initial Public Offering where they are offering shares of LIC as the Government has decided to sell some of its stakes. Recently LIC made headlines after submitting Draft Red Herring Prospectus (DRHP).
The Government of India has decided to sell 5% of its stake, therefore 95% stake of the company will remain under the Government. Among the public offering, 35% will be booked for the retail investors, the other 5% for the employees of LIC and 10% will be reserved for the policyholders.
Things You Need to Know Before Investing In LIC IPO
Investing in something is a very important decision that one has to take; you have been very clear and careful before doing anything related to this as it is about the financial security of your future.
As per the information, LIC policyholders who got their policy on or before the 13th of February, 2022 are eligible to invest in the 10% of public offerings that is reserved for the policyholders.
If anyone wants to be eligible in the quota for the policyholders, their PAN has to be linked with their policyholders. Those who have already linked their policyholders with their PAN on or before the 28thof February 2022 are eligible for the 10% quota.
Policyholders who have their Demat account are eligible for the 10% quota.
As 35% are reserved for retail investors, it means anyone who is not a LIC employee or a policyholder can apply to this quota. Policyholders, as well as employees of LIC, can also apply to this quota.
A retail investor is allowed to invest max to max INR 2 Lakhs, not more than that in their quota of LIC IPO.
LIC policyholders are allowed to invest INR 2 Lakhs under their quota of IPO.
LIC Employees are also eligible to invest a maximum of INR 2 Lakhs under their quota of IPO.
A policyholder who is not a LIC employee can invest a total of INR 4 Lakhs that is INR 2 Lakhs in the quota of retail category and INR 2 Lakhs in the policyholder category.
A LIC employee can invest up to INR 6 Lakhs if they are also a LIC Policyholder. It means INR 2 Lakhs under the quota of retail category, INR 2 Lakhs under the quota of policyholder category and another INR 2 Lakhs under the quota of LIC employee category.
If policyholder wants to avoid getting their application rejected under the policyholder quota, then they must ensure that they are primary Demat account holder.
If there are joint policyholders then they can apply under the policyholder’s quota, if only they have separate Demat accounts.
LIC IPO will be open to the public in the month of April 2022. The total offering is 31.6 Crore shares. It is also said that LIC employees and policyholders are eligible to get discounts on the floor price as well.
Conclusion
LIC is one of the biggest insurance companies in India founded in 1956 and is completely owned by the government. It is one of the most awaited IPOs since the launch of Zomato, Nykaa and Paytm IPO. It is expected to be one of the biggest IPO launches. People are eagerly waiting for LIC IPO so that they can invest in it.
FAQs
Who are the shareholders of LIC?
The government of India is the major shareholder and will remain the majority shareholder of LIC, only 10% is being sold to policyholders.
When will LIC IPO launch?
The LIC IPO will be open to the public on March 11, 2022.
How can I buy LIC shares?
If you’re a retail investor you can buy LIC shares using your UPI id.
Royal Enfield is easily one of the biggest brands from India founded by and has broken records in selling its motorcycle in India and abroad. But this wasn’t the case 20 or so years back, as Royal Enfield then was sitting on brink of bankruptcy. The automotive company has achieved its best-ever sales with over a million bikes that are sold worldwide. The company’s sales have also increased to about 27%.
Imagine if you brought a Royal Enfield motorcycle in 2001 you would now only have an old rugged bike. But if you would have invested the same amount in shares of Eicher Motors, the company that makes Enfield bikes your investment will be worth Rs 3.53 crore now. Despite operating in a niche segment, Royal Enfield remains one of the most admired motorcycle brands in India.
Royal Enfield is one of the flagship companies of the US 1.1 Billion Eicher Motors. It is an Indian motorcycle company with factories in Chennai, India. The company makes the Royal Enfield Bullet and other single-cylinder motorcycles. The company was established in 1955 and is one of the oldest motorcycles companies.
It first started out as a brand of the Enfield Cycle Company, a British manufacturing firm, then went out to produce the 500 cc bullets. It is a leading manufacturing company that manufactures bullets across the globe, was looking to upgrade its IT infrastructure using industry-leading solutions.
It has manufacturing plants in Thiruvottiyur, Chennai, Oragadam Chennai, Sipcot Industrial plant, Chennai and Campana, Argentina. The tagline of Royal Enfield is “Jab Bullet Chale Toh Duniya Raasta De” which sums it all quite beautiful as it is definitely a motorcycle that enjoys an overpowering presence as people have had to make way for it.
History of Royal Enfield
The Enfield Manufacturing Company Ltd was set up in England to manufacture bicycles. The company manufactured its products under the Royal Enfield Brand.
Not being satisfied with a limited product line of just bicycles, Enfield Manufacturing soon decided to focus on building other types of vehicles. In the year 1899, it started manufacturing a quadricycle called the Royal Enfield Quadricycle which was powered by a rear-mounted engine.
Royal Enfield Quadricycle
In 1901 Enfield manufacturing launched its first motorcycle fitted with a 239 cc engine. As a part of the global expansion strategy, Enfield started selling motorcycles in the Indian market in the year 1949.
In 1955, the Indian government placed an order for eight hundred 350cc Royal Enfield motorcycles for use by its police and armed forces. The Royal Enfield motorcycles were considered an ideal choice for the Indian army for patrolling the country border.
In 1990 Royal Enfield collaborated with the Eicher group an automotive company in India and merged with it in 1994.
In 2000 the company’s sales hit a low of 2000 units per month because it was suffering from problems like poor quality of its products, outdated design, change in taste and preference of customers and the entry of Japanese two-wheeler manufacturers in the Indian market.
Despite having a cult following among its fans many prospective customers saw Royal Enfield Brand as a relic from the past.
The man who is responsible for the tables to turn for Royal Enfield is none other than Siddhartha Lal is the man who is singularly responsible for Royal Enfield. Mr Lal has been credited with being able to make Royal Enfield a bike that is sold worldwide because of his dedication to the company. It was 2004 when Lal had taken over as COO of the Eicher group.
Siddhartha Lal – Former CEO of Royal Enfield
The group had a diverse spread of about 15 businesses including tractors, trucks, motorcycles, components, footwear and garments but none among them were a market leader. Lal decided to divest 13 businesses and put all money and focus behind Royal Enfield and trucks, two businesses where he believed the group had a genuine shot at leadership.
Lal decided to put his full force behind Royal Enfield and the trucks business. Immediately after taking over as CEO, Siddhartha analyzed the strengths and weaknesses of Royal Enfield and started to come up with a strategy to put the brand on its path to revival.
Buying Out Royal Enfield
The brand was surviving well in India until Japanese motorcycles began to enter the Indian market. This is when Mr Lal’s father who owned a tractor manufacturing company and was familiar with the way parts from Royal Enfield worked, swooped in to save the brand. Enfield was one of the biggest companies in South India, especially in the 60s and 70s.
Mr. Lal describes that “It was a bit of a tricky moment, and the firm was going bankrupt that’s when we bought it. My father got to know the people who were running the business because he was buying auto parts from Enfield for his tractor company. But we kept only one tiny portion which was the bullet factory and did not change the design because we liked the shape and the classic looks. We kept the character of the motorcycle, we kept the looks of the motorcycle, but we upgraded it to be relevant to people today.”
In order to pull the brand back from the edge of bankruptcy, the team decided to return to the brand’s roots to look for solutions that could help it soar once again. It is the only automobile Indian company that dint have a Japanese collaboration.
Speaking about this time, Mr Lal said, “They consulted many countries like US, Germany, Italy Austria and the UK to develop an engine or motorcycle, and felt that the UK understood us better.”
We found that engineering support that we could get in the Midlands was second to nowhere else in the world. In the Midlands, the team created the signature Royal Enfield Twin inceptor, which is what gave the bikes an additional boost of power that made them ideal for riding on the highway. This was a huge deal for the brand.
They had tapped into a huge consumer need that was not very vocalized. This allowed the brand to reinvent itself and become a lifestyle product that completely fit into the vibe of travelling and getting out in the world. This has made Royal Enfield quite popular with bike enthusiasts, making it the go-to bike for people who love to travel.
Increase in Sales
In 2005, the company was selling only about 25,000 bikes every year and needed a manufacturing scale and a fixed cost had to be spread around 100,000 bikes. Siddhartha Lal engineered and improved Enfield bikes by riding hundreds of kilometres himself and also initiated a motorcycling culture in the team. Under Lal, as quality improved, sales grew too.
By 2010, the company was selling 50,000 bikes, but on three platforms. That was when Lal decided to build all Enfield bikes on a single platform to maximize economies of scale. The Enfield Classic, launched from this single platform, caught the fancy of customers. Sales shot up six times in half a decade from 50,000 units in CY10 to 589,293 in CY14.
At this point, the sales were just enough to help the company break even. But soon, the tech economy in India began to boom in 2010, which brought about a turning point for the brand. Now, Eicher Motors earns over Rs 8,738 crore in revenues and makes a net profit of Rs 702 crore (FY14). Royal Enfield brings in about 80% of these profits.
Royal Enfield Bikes Sales Volume
Future of Royal Enfield
The prices of Royal Enfield were higher than that of the low powered Japanese motorcycle brands sold in India, but they were cheaper than the major global brands. And in order to keep the motorcycles affordable in the price-conscious Indian market, the company did not revise its prices even after the prospects of the brand started to improve in terms of sales.
Royal Enfield Model
Ex-Showroom Price
Royal Enfield Classic 350
₹1.52 lakhs – ₹2.18 lakhs
Royal Enfield Bullet 350
₹1.24 lakhs – ₹1.6 lakhs
Royal Enfield Thunderbird 350X
₹1.55 lakhs – ₹1.58 lakhs
Royal Enfield Himalayan
₹1.66 lakhs – ₹2.23 lakhs
Royal Enfield Interceptor 650
₹2.77 lakhs – ₹3.1 lakhs
The strong pricing power of the Royal Enfield brand and the improved operating margins rapidly increased the valuation of the company. In 2014, Royal Enfield recorded sales of 302,592 units.
The sales for the year were higher than even the worldwide sales of Harley Davidson for the first time in the brand history. By the year 2015, Eicher Motors had become one of the most expensive automobile stocks in India.
Eicher Motors Stock Price
As of Feb 2022, the stock price of Eicher Motors is ₹2,615.10.
Royal Enfield is an Indian motorcycle manufacturing company headquartered in Chennai, Tamil Nadu, India.
Who is the founder of Royal Enfield?
Robert Walker Smith and Albert Eadie founded Royal Enfield in 1955.
Who makes Royal Enfield motorcycles?
Eicher Motors Limited is the parent company of Royal Enfield that makes Royal Enfield motorcycles.
What is so special about Royal Enfield?
It provides a sense of strength and also a rustic charm. The brand has built itself from being an army bike to a cult classic. These bikes have a huge fan following and also there are several biking clubs exclusive to Royal Enfield motorcycles.
Shark Tank is a business reality show owned by ABC and is the no. 1 business reality show in the world. The concept of the game show involves ambitious entrepreneurs presenting their breakthrough business concepts to ruthless investors or “Sharks” to convince them to invest in the concept.
The most important part of Shark Tank is the panel, aka the ‘sharks’ who decide whether or not to invest in the ideas of the entrepreneurs. In the Indian version, Shark Tank India, we have the following sharks (Judges) in the panel:
Vineeta Singh – CEO & Co-founder of SUGAR Cosmetics
Ashneer Grover, Founder and MD of BharatPe
Peeyush Bansal – Founder & CEO of Lenskart.com
Namita Thapar – ED of Emcure Pharmaceuticals
Anupam Mittal – Founder and CEO of Shaadi.com
Ghazal Alagh – Co-founder and Cheif Mama of Mamaearth
Aman Gupta – Co-founder and CMO of BoAt
Some aspects that come to mind when someone says Shark Tank: grilling someone on the industry size, the market opportunity, the size of the niche market they want to target (if they are targeting a niche market), competitors, financial data on their competitors, how they got that data / how they arrive at the assumptions about their competitors etc.
On top of this, Sharks also want to get to know the entrepreneurs. There are a few episodes in the original Shark tank where the Sharks have walked away from a pitch not because the product was bad, but because they didn’t want to work with the investor.
On the flip side, there were also times when Sharks made offers not because they loved the product but because they believed in the entrepreneurs. We get a glimpse into some of the characteristics of these entrepreneurs but I’m sure they go more in-depth.
The first episode of Shark Tank India was aired on 20th Dec 2021 on Sony Liv. The panel for the first episode included Vineeta Singh, Ashneer Grover, Namita Thapar, Anupam Mittal, and Aman Gupta.
BharatPe MD and Co-founder Ashneer Grover, who is still one of the judges of the Indian version of Shark Tank, has been recently engaged in a financial fraud of BharatPe and is asked to be on a mandatory leave of absence. He and his wife Madhuri Jain Grover, who is also associated with this financial misconduct, has been on a leave of absence along with five others. BharatPe Co-founder and MD can also be fired from the company by the Board, as far as the reports dated January 29, 2022.
Products Featured in the First Episode of Shark Tank India
First Product: Blue Pine Foods Pvt. Ltd.
Blue Pine Foods
The Entrepreneurs:
Aditi Madan aka Momo Mami and the Co-Founders- Rohan Singh and Naveen Pawar.
The Ask:
₹50L for 5% equity
The Pitch:
Blue Pine Foods is a frozen momo company that makes 100% natural, preservative-free handcrafted momos using traditional Himalayan ingredients. The shelf life of the momos is over 4 months.
The Profits:
Made and sold over 80 Lakh momos through both B2B and QSR. Sales of ₹3.6 cr over the period of 5 years.
The Negotiation:
Ashneer did not wait too long before making the first offer of ₹50L for 7% equity with a warning that it was an exploding offer. Anupam pulled out saying he cannot make an offer that’s lower than Ashneer’s. Namita Thapar was the next one to pull out as she “cannot relate with the industry”. Vineeta offered ₹50L for 20%.
Together, Aman and Ashneer offered ₹50L for 12%, to which Aditi gave two counteroffers of ₹50L for 10% and ₹75L for 12%. Ashneer, Aman and Vineeta came together and made a tempting offer of ₹75L for 16% equity, which was happily accepted by Aditi.
The Deal:
₹75L for 16% Equity
Second Product: Booz Scooters
Booz Scooters
The Entrepreneur:
Rutvij Dasadia
The Ask:
₹40L for 15% equity
The Pitch:
Booz is South Asia’s first App-based electric scooter operator that serves at business parks, Commercial parks, residential areas, industrial areas, educational campuses, tourist spots, clubs, resorts and other such confined premises by offering electric kick scooters on rental.
Charging stations, installations, daily maintenance, charging plugins and plug outs are offered at monthly subscription. The vision of Booz is to eliminate fuel vehicles at these places and make premises more pollution-free and add leisure experience to recreational spots.
The Profits:
Last Year the business got revenue of 4 Lakhs.
The Negotiation:
Anupam pulled out immediately after giving a brutal statement that he doesn’t see any value in it. Namita, once again, pulled out as she doesn’t “relate to the product” and because the product did not excite her on a personal level. Vineetha and Ashneer came together and made an aggressive offer of ₹40L for 50% Equity. Rutvij countered the offer with an offer of 40L for 33% Equity but Ashneer stood his ground till the founder finally caved.
The Deal:
₹40L for 50% Equity
Third Product: Heart up my sleeves
Heart up my Sleeves
The Entrepreneur:
Riya Khatter
The Ask:
₹25L for 10% equity
The Pitch:
It’s a unique brand that makes detachable statement sleeves. The sleeves are reusable, sustainable and you can style them in different ways.
The Profits:
Sales of ₹11.6L in 9 months. Last month’s sales were ₹1.96l.
The Negotiation:
Aman and Namita did not think twice before pulling out as they did not see potential in the product. Anupam and Vineeta swooped in to grab the opportunity, and an offer of ₹25L for 40% equity was placed on the table. The 23-year-old entrepreneur countered it with an offer of ₹25L for 30% equity which the sharks couldn’t say no to because of her beautiful pitch.
The Deal:
₹25L for 30%
Review of the First Episode of Shark Tank India
The investors faced a lot of backlashes after the show was aired. But there were a lot of people that found nothing wrong with the actions of the investors. The controversy can be summed up with the help of the post and the comment below:
Shashikant Chaudhary, an angel investor posted the following on LinkedIn:
“I was really very excited to watch the first season of Shark Tank India – both as a viewer and as an angel investor. This show promises a platform for entrepreneurs from tier 2 and tier 3 cities to take their business to the next level. Crucially, this show is also going to double as educational for millions of people as it reveals things about business and funding.
It is in this context that I found the way sharks were making an offer to entrepreneurs by asking for a 40-50% stake in the company for 25-50 lacs uncomfortable to watch.
As an angel investor myself and instructor of an entrepreneurship course, I feel, If an entrepreneur is giving up 30-50% of the company in a single round, by the end of the third or fourth round of investment, the founding team will be at less than 15-20% stake. There would be very little incentive for founders to work for such a low equity stake. In the end, he/she would leave the company.
I know it can be argued that the sharks are doing their best by getting the best deal for them personally but I also feel that this is a tricky message for the startup community (especially those not well-versed with technicalities of the impact of giving away too much stake in a single round). I wish people watching the show somehow also know that this is the kind of offer that is detrimental to the founder in the long run.”
And the top comment by Paresh Masade, Founder of Vaave (Coherendz India Private Limited) read:
“Isn’t the very notion of “Shark” in a tank wrong, they are supposed to be “Angel” investors. You have been a mentor, guide, advisor and well-wisher, not even close to being a shark.
My views on the shark tank differ a bit, it is designed to be a TV show and to entertain the audience. They resemble more of the WWF matches, very glamourous and sexy, nothing real. I may be wrong here, but many of the seasoned angel investors I have seen, understand very well that it’s the entrepreneur who is in the driver’s seat!”
The original shark tank created a huge fan base for itself across the globe over the past 13 years. The Indian show definitely shows a lot of potential for creating a massive loyal fanbase as well. It is amazing to see the spirit of the young entrepreneurs and supportive seniors on Indian television. Hopefully, the show will bring a new wave of ideas and entrepreneurs to the country.
You can watch the episodes of Shark Tank India live on SonyLIV or Sony TV. With new episodes coming out from Monday to Friday at 9 PM on the designated platform.
FAQ
Who are the judges in Shark Tank India?
Vineeta Singh, Ashneer Grover, Namita Thapar, Anupam Mittal and Aman Gupta, Ghazal Alagh, and Peeyush Bansal are the judges in Shark Tank India.
The new technologies today have made the idea of startups more popular than ever before. Gone are the days when people were afraid to try out new ideas. Nowadays the young passionate minds are more driven towards the ideas of a startup.
With startups progressing well, the idea of startup investing has become lucrative. More investors are now interested in startup funding. Funding an innovative startup in the initial stage can be profitable in the future.
Yuvraj Singh, former Indian team cricketer has now become a venture capitalist. Yuvraj launched his investment company, YouWeCan Ventures in 2015. With this venture, he planned to encourage entrepreneurship and online startups. He has invested in various startups like Healthians, EazyDiner, Wellversed, etc.
Funding is the capital needed to start and run a business. Startup funding, in simple words, is a financial investment. This funding made by an investor helps the startup ideas come to life.
Startup funding involves equity financing or debt financing. In both cases investment proves to be lucrative, except if the startup fails.
Many entrepreneurs, cricketers, actors are entering the ecosystem of startup funding. They do funding as venture capitalists, angel investors, and private equity.
YouWeCan’ An Initiative by Yuvraj Singh
YouWeCan Logo
Yuvraj Singh, a former Indian Cricketer was diagnosed with cancer in 2012. He fought cancer and came out as a survivor. This journey inspired him to start an organization for cancer patients, YouWeCan.
It aims to support cancer patients in various ways. These are raising awareness among patients, helping in their treatment processes and, equipping the survivors with opportunities.
Yuvraj Singh as a Venture Capitalist
Yuvraj Singh turned into a venture capitalist. He expanded YouWeCan by starting YouWeCan Ventures. He announced to invest 40-50 crores (Indian rupees) in technology-based startups.
Since it was introduced, YouWeCan Ventures has invested in several startups. Yuvraj has thus, made a great contribution to the Indian startup movement.
The fundings came to a halt during the time of covid-19. But soon in October 2020, Yuvraj Singh invested in Wellversed.
Startups Funded by Yuvraj Singh
Yuvraj Singh has invested in various startups. These are as follows:
Healthians
Healthians Logo
Healthians is a tech-based startup that provides lab test services at home. It provides convenient, faster, affordable, and dependable healthcare services. Deepak Sahni founded it and is also its CEO.
Healthians uses various technologies like HTML, jQuery, Google analytics, etc. This tech-based health startup has proved to be profitable and useful in the field of healthcare.
Healthians started from Delhi NCR. Now, it has its presence in more than 30 Indian cities. YWC Ventures-backed Healthians also acquired Mumbai-based Healthy Labs in 2019.
Yuvraj’s association with the brand proved to be a great marketing measure for the startup.
EazyDiner
Eazydiner Logo
EazyDiner is an online restaurant reservation platform. It provides recommendations and reviews by top critics for a great dining experience. It also provides great deals on every reservation.
The company entered the market in 2015, backed by six investors and Yuvi was one of them.
Its headquarters are in Gurugram. It is active in 150 Indian cities and Dubai. It has partnerships across the restaurant industry. Some of the key partners are Leela Hotels, Taj Hotels, Marriott Group, Burger King, etc.
It was founded in 2011 and Ishan Gupta is the founder. Five investors are backing up this startup. YouWeCan Ventures and United Finsec are the most recent. Later in 2016, Paytm acquired it.
EduKart has made a great remark following the need for online learning in recent times.
Chqbook
Chqbook Logo
Chqbook is a fintech startup. It helps the customers compare, book, and get personalized finance products. It offers services like banking, lending, insurance, and rewards.
Vipul Sharma is the CEO of Chqbook. Founded in 2016, it has 14 investors. Yuvraj Singh is one of the lead investors in Chqbook.
Wellversed
Wellversed Logo
It is a technology-based startup. It deals in nutritional products. This healthcare startup’s products span many nutrition regimes.
It aims to help people with healthy transformations in their diets. The products of Wellversed are available on many online sites. These include Amazon, Snapdeal, etc.
The CEO of the company Aanan Khurma. Wellversed is funded by eleven investors. Yuvraj Singh made an angel investment in the company. Along with being an investor, he is also the face of the brand.
It is the latest investment made by Yuvraj through YWC Ventures in October 2020.
Naturals@Home
Naturals@Home Logo
Naturals (before Vyomo) is a mobile application for beauty and wellness. It allows women to book their beauty appointments and enjoy the services at home. The services are rendered by trained and verified professionals.
Abhinav Khare is the founder and also CEO of the company. It has three investors. These are Naturals, Rocket Internet, and YouWeCan Ventures.
Yuvraj Singh was an early investor in Vyomo, now Naturals.
Black White Orange Brands
Black White Orange Logo
This is a new-age startup that provides merchandising solutions. It offers services of brand consulting, creative solutions, retail distribution. It provides services in India as well as overseas.
Bhavik Vora is the founder and CEO of Black White Orange Brand. It has two investors- Collaborative Ventures and Yuvraj Singh’s YWC Ventures.
SportyBeans
SportyBeans Logo
SportyBeans is one of India’s reputed sports programs for children. It aims to promote fitness and a passion for sports among pre-schoolers.
YouWeCan Venture is the lead investor in SportyBeans.
Yuvraj Singh has also funded JetSetGo and Moovo. JetSetGo helps with private aviation services. Moovo is a tech-based booking platform for mini-trucks.
Yuvraj Singh has made great contributions to society. He started YouWeCan to support cancer patients and help with their treatments. Then started YouWeCan Ventures to support young entrepreneurs with their innovative startup ideas.
Yuvraj calls startup funding a risk one takes. Sometimes it pays off and sometimes it doesn’t. He feels happy to see any startup funded by him turning into a big company. Here, Healthians is a great example. Since covid did not hit the health sector, Healthians has seen great growth during the pandemic.
FAQs
Who is Yuvraj Singh?
Yuvraj Singh is a former Indian international cricketer.
How many Startups has Yuvraj Singh Funded?
Yuvraj Singh is Invested in various Startups like eazyDiner, WellVersed, Healthians, EduKart, etc.
What is YouWeCan?
YouWeCan is a non-profit organization established by Yuvraj Singh that aims to support cancer patients in various ways. These are raising awareness among patients, helping in their treatment processes, and equipping the survivors with opportunities.
The moment we hear the word Royal, the first thing that comes to our minds is huge Fortune. Our minds automatically create a picture of palaces, King and Queen in precious jewellery, and tons of money.
When we hear the term ‘Royal Family’, the first one to come to our mind is the Royal family of the UK. They are no doubt the most popular royalties in the world.
The British Royals are wealthy. Looking at the family’s palace, properties, staff members, and lifestyle, we cannot help but wonder what is the source of their money?
At present, Queen Elizabeth II is the head of the state of the United Kingdom. The queen’s father King George VI died in 1952 and she has been a monarch since then.
The family consists of the Queen, her 4 children, grandchildren, and great-grandchildren. Queen’s late husband Prince Philip, Duke of Edinburgh was also a member of the Royal family.
The other important family members include:
Prince Charles, Queen Elizabeth’s eldest son. After the Queen, he will get the throne as the King.
Prince William, the firstborn of Prince Charles. He will be the next successor in line after Prince Charles.
Prince Harry, the second son of Diana and Charles. Last year, however, Harry and his wife Meghan Markle, stepped down as the Senior Royals. Even though they live independently, Harry being born in royalty is still a Prince.
The Monarch’s Relationship with the Parliament
In the United Kingdom’s Parliament, there is the House of Commons, House of Lords, and the Monarch (the Queen, at present).
The Queen enjoys the power of Royal Assent in the Parliament. To pass a bill in the parliament, it is approved by both the House of Commons and the House of Lords. After that, the bill goes to the Queen for final approval.
This approval is the Royal Assent which converts a bill into Parliament’s Act. She invites the leader of the winning party to form a government and become the Prime Minister. She also plays an important role in the case of the dissolution of the Parliament.
Today, but the constitutional role of the monarchy in the parliament has been reduced to a certain extent. It is now more of a ceremonial role.
What are the Sources of Income for the Royal Family?
The following are the sources of how the British Royal Family makes money:
The Sovereign Grant:
The first and the most significant source of income for the Crown in the UK is the Sovereign Grant. The monarch has official duties and for that, the government pays this grant.
The Crown Estate in the United Kingdom belongs to the throne. It means it belongs to the monarch during their time on the throne. A monarch has no power to sell the estate. It is not their private property. It is neither owned by the monarch nor the government.
The Crown Estate is super valuable that helps to generate revenue. A percentage of profits of this revenue makes for the Sovereign Grant. It is like an annual income for the monarchy.
This grant covers the expenses of the monarch’s official duties. This includes security expenditure, press meetings, basic maintenance, and travel.
The Treasure of the Royal Collection
Queen’s Crown
It is one of the most significant and enormous art collections in the whole world. It consists of more than a million objects. Various vintage objects are ranging from fine to decorative art. This collection is living proof of the personal taste of various kings and queens over the years.
Buckingham Palace Exhibition
The Royal Collection gets maintained under the queen as a Sovereign. This collection helps in the generation of a lot of money. The items under the collection are given on loan to various museums. For this, there are annual visitors. All this makes a source of money for the monarch.
However, this trust income is not profitable for the royals. A major amount of this income goes into the maintenance of the queen’s public residences. Also, the artwork and jewels of the crown require maintenance expenses.
The Duchies
The Duchies are the properties and financial investments of the royals. It refers to their private estate. There are two royal duchies in England.
The Duchy of Lancaster, owned by Queen Elizabeth II. The second, the Duchy of Cornwall functions under the Duke of Cornwall. Prince Charles heads and enjoys the privilege of this private estate.
Duchy of Cornwall
These private estates are separate from the crown properties. The revenue generated by these is for the royals and their family’s private and public activities.
Inheritance
Inheritance and blood are what makes for a royal family. The members of the royal family also generate income from their inherited properties.
For example- The queen has her income sources under the Duchy of Lancaster. It was inherited by the queen from her father King George VI.
In the same way, Prince Charles gets his income from the Duchy of Cornwall. Prince William and Harry are also entitled to the revenue of this Duchy.
Prince Harry and William have also inherited money from their late mother, Princess Diana.
Princess Diana
Apart from the crown properties, the royal family has their investments. Even the queen has her investments which are not revealed in public.
Prince Harry and Meghan- No Longer Entitled to Royal Wealth
Harry and Meghan Markle in America
In January 2020, Harry and Meghan decided to step down as the Senior Royals. They decided to shift to North America and be financially independent.
In an interview with Oprah Winfrey, Harry revealed when he left, he got cut off from any financial help from the royals. He shared that he was grateful for the money inherited from his mother, Diana. This money proved to be helpful in his journey to new life.
Harry and Meghan are using their wealth to work further. Thus, maintaining their decision of being independent.
Conclusion
The royal family holds great importance among the people of the UK. The power is shared between the government and the crown. The queen has official duties and ceremonial powers that make her role important.
The royals of the UK get money from both public as well private sources. Thus, the royal family has various sources of money to enjoy their status as royalty.
FAQs
How much do British taxpayers pay to the Royal Family?
As per the latest Sovereign Grant the taxpayers are paying nearly $96.28 million.
How much is Buckingham Palace worth?
Buckingham Palace is worth an estimated $4.9 billion.
How many properties do the royal family own?
The British Royal Family owns 20 properties in the UK.
With the growing and evolving economy, stock picking becomes an essential step to achieve a positive return. In stock picking, certain criteria are fixed and determined to select the capitals for an affirmative response. It’s very important to gather the knowledge that is required in order to make the right investment decisions. That’s why analysing a huge fraction of information is absolutely necessary.
However, it often confuses us that how should we choose the right stock among the bundle of thousands of stocks? Going through every balance sheet and further details could be hectic and time taking.
Therefore, before you move further with your investment, you need to make sure of a checklist for the stock-picking that would make your choice precise. In this article, we present you with the points on the checklist for stock-picking. Stay tuned!
Make Your Choice Clear On Which Company’s Product You Want
Your investment needs precise information and proficiency. You need to make your choice clear on which company’s products you like the most and would prefer. As a consumer for this section, you will know which company’s products you prefer before any other. For better understanding, you can talk to a professional or your friends. List out the advantages that come with the company’s products.
Keep Up Your Strengths
In the market, it’s very essential to keep up your strength and build a strong leader. Marketers often prefer and support people with strong upholding and leadership. This is important because when you choose a corporation for investing, it needs to have a strong upholding in the market otherwise, it becomes very difficult to sustain it over time.
Gather Your Knowledge On How Does The Company Make Money
Many companies (mostly on the Internet) make their shares accessible for consumers by a wide public investment methodology. And when you move forward with it, they make their money in hand.
When a company has a broad range of visitors, it becomes convenient for them to monetize their business strategies and make money through those visitors. But, you need to gather accurate knowledge before going public, this could be a big win for you or a major loss. That’s why it’s very essential to know how the company you choose makes the money and how it monetizes its strategy together with time.
Focus On The Increase In Sales And Revenues
For the investors, profit comes from the increased stock price and high sales and interest. Therefore, the key to increasing the profits is increasing the sales. This makes sure that the consumers are preferring this company’s products and like them as well.
Also, the company needs to have the proper track record for increasing sales and profits. It becomes convenient to go through the sales and profits by hitting the Financial tab on an improved investment webpage.
Avoid Companies With Heavy Indebt
Sometimes when a company is defining its way to success, they often search for the best equipment and assets for the growth of their company. But, instead of purchasing them with the money that came from the stock-picking by the investors, they borrow money for this purpose as in debt.
And later when they get to pay back, a huge interest is added to the debt. Then the amount of profit that comes each year goes for the payment of interest. This led to the company at its initial position and no development occurred.
Therefore, it’s better to choose a company that does not have any in debt interests pending.
Many corporations with time develop the strategic advantage for sustaining by proceeding to operate. This happens when a company has established its name and trust in the market and among the consumers; then even with a slight shortcoming in the product does not take away the trust of people. And they continue with the company’s product lines.
Sustainable advantage can also be obtained within a form of a patent on its various new products that carry the concept of previous products, like complex software. This often happens when a company offers good consumer benefits.
Prefer Companies With An Elevated Barrier To Entry
Certain industries in the market require a huge amount of resources and establishment to make their place in the market. These companies are like those who do not have any such competition among the industries and have a smooth run. There is very little competition for these industries.
This is because the product and services such companies provide needs a long time of dedication and billions of research and resources. Therefore, this becomes a barrier of entry for others. And it is always good to invest in such companies to gain profitable revenue and accomplishment.
Before you get into stock picking, you need to make sure certain criteria that the company passes through to have a great revenue return. You need to determine what achievements and goals you’d want and stick to them. Make sure you choose an industry that carries your interest and brings out great news and trends to let you explore regularly.
Observe and identify the company that holds a strong position in the market and has a great range of consumers.
Talk to the experts and professionals in the investing field and get the knowledge and information to choose the right company for stock-picking. This would help you in better understanding and analysis for the company.
FAQ
What is a stock pick?
A stock pick is when an analyst or investor uses a systematic form of analysis to conclude whether a particular stock will make a good investment or not.
What is the best stock alert app?
Yahoo Finance, StockTwits, and Bloomberg are top apps for stock alerts.
How do I begin investing in stocks?
Decide how you want to invest in the stock market, Learn the difference between investing in stocks and funds, Set a budget for your stock investment, Focus on the long-term, and Manage your stock portfolio.
A business is not just about buying and selling a product or service. It is much more than that. For a business to run properly, everything needs to be on point, for that management is necessary.
In fact, it wouldn’t be wrong to say that management is necessary for every step of a business. The most important factor in this is to manage the financial assets, risk, and other investments of the business.
From financial planning to look after bonds and equity of investors, it includes everything. Now, we all know business and risk go hand in hand. Therefore, in a business apart from investment management, risk management is also required.
Risk management is all about recognizing and controlling those venturing threats that can affect the organization’s financial assets. It is mostly done to protect the company from harm and its future. Risk management makes the work environment safe.
Now, thanks to technological advances, this also can be done by software. This article talks about the biggest investment and risk management software, BlackRock Aladdin.
“Wealth is only a benefit of the game of money. If you win, the money will be there.”
No, as the name suggests, it is not related to Aladdin and the magic lamp from the Arabian Nights. Although the work it does is not less than that of a genie fulfilling wishes. Aladdin (Asset, Liability, Debt, and Derivative Investment Network) is a system whose work is to keep an eye on the markets and stop anything going wrong.
It connects people and technology together to manage funds. It is part of BlackRock, Inc an American global, Investment Management Company. This system was found after BlackRock’s was founded in the year 1988. In the year 2000, Aladdin was introduced as a system for investment management user
This software works with thousands of computers for 34 hours and is continuously striving to manage the financial ecosystem of the world.
Interestingly, Aladdin was first created to handle BlackRock’s business. Now, apart from BlackRock, it is used by different clients of BlackRock’s to manage their investments.
Since the financial crisis in 2008, the demand for Aladdin has surged all over the world and it has now become one of the most important parts of the investment management industry in the world.
How does Blackrock Aladdin Work?
The system is involved in portfolio management to risk management; it’s all about providing a smooth investment process to the client with the help of a number of computers and people. With the tools required for portfolio management like trading, operation, and accounting, it gives out proper risk analytics.
Aladdin gives out powers through its tools to the user so that they can communicate efficiently and if any problem arises, they can solve it quickly during the investment process.
Aladdin contains a climate risk reporting app, that notifies if there is any risk that can be caused by climate change to their portfolio.
Top Companies that use Aladdin
Genworth Financial
This is an insurance company founded in the year, 2004 by Dave Reedy. Aladdin manages Genworth Financial, along with eFront, another software that manages the alternative investment, it keeps an eye on risk management and asset allocation of the company.
Fannie Mae
Fannie Mae is an enterprise that deals with mortgage financing. It was founded by Franklin D. Roosevelt in 1938; its main motive is to create a sustainable housing finance system. In 2015, Fannie Mae associated itself with Aladdin.
Macquarie
The global financial service deals with asset management, wealth management; principal investment were founded in 1969 by Stan Owens. Macquarie has taken up Aladdin in the team for their asset management.
The capability of the software Aladdin by BlackRock can be seen since the 2008 financial crisis. It has become the world’s most powerful risk management system and some of the largest enterprises are dependent on it. Needless to say by managing $21 trillion and counting, it is ruling the investment management industry of the world.
FAQ
Is Aladdin a Part of BlackRock?
Yes, Aladdin is an electronic system for investment management by BlackRock.
Who is the CEO of BlackRock?
Laurence Douglas Fink is the CEO of BlackRock.
Which companies use BlackRock Aladdin?
Genworth Financial, Fannie Mae, and Macquarie are some of the top companies that use BlackRock Aladdin.
To build a startup, one needs more than talent, perseverance, and desire. On that list of necessities, funds take the number one spot. For any kind of startup, getting funds is definitely not a piece of cake.
Trifecta Capital with its existence makes acquiring funds a little bit easier for startups. The traditional way of getting a loan from a bank is not that easy, not every new company gets that help.
Thankfully, venture debt like thing exists in reality. Trifecta Capital here plays a significant role. It is one of the companies that put its trust in the startups that have the potential to reach the peak of success. At this age, having someone, who puts their trust in you, is something, that is truly rare. Trifecta Capital lends its hands to new businesses and takes a pledge to rise with them together.
We rise by lending a hand to others.
-Svetlana Fernandes
About Trifecta Capital
Trifecta Capital is the first company in India, that provides venture debt to startups. It first steps its foot in the business world in the year 2014, as a venture debt firm. It was founded by Nilesh Kothari and Rahul Khanna. The firm mostly focuses on, early growth stage companies and had invested almost ₹1800 Crores from 2015 to 2020.
At first, it launched with a ₹500 Crore fund. Trifecta with its ways gets to be a part of the growth of different companies. It has invested in over 70 companies and counting. Their aim is “Financial offering designed to help you at every step of your journey to success.”
Trifecta definitely has one of the strongest portfolios. It has funded some big names in the business and has been a part of their growth process. Some of those companies are: Lets look at Business Funded By Trifecta Capital
The largest online grocery store in India, Bigbasket delivers grocery and household items to the customers. Founded in 2011 by Hari Menon, Vipul Parekh, VS Ramesh, VS Sudhakar, and Abhinay Choudhari. BigBasket has taken an initiative to deliver fresh grocery items to the doorsteps of every household that demands them.
BigBasket secured a new deal with Trifecta in July 2019 and fixed a venture debt of ₹100 Crores. Before that, in 2017, Trifecta lend its hand to BigBasket by providing a fund of ₹45 Crore. This time, BigBasket stated that the ₹100 Crores fund will mostly use in supply chains and warehouses. The Covid-19 pandemic led to a sharp 84% rise in the number of its consumers. As per the Financial year 2021, this e-commerce revenue is INR 3818.2 Crores.
Infra.Market
InfraMarket Logo
The construction solution company uses technology to organize the construction industry and make the price of materials more transparent. It was founded in the year 2016 by Aaditya Sharda and Souvik Sengupta. It deals with the real estate and construction industry and is a platform that connects clients to those who provide materials at an affordable cost.
In the year 2020, Infra.Market raised ₹40 Crore as venture debt from Trifecta. It fund was reportedly used for geographical expansion. As per the year 2021, Infra.Market’s revenue is $700 million.
PharmEasy
PharmEasy Logo
Another online business, this time it deals with the purchase and delivery of medicine and other medical supplies. It is India’s finest pharmacy app. The best thing is, the customers receive the medicine within 48 hours of their order placement.
It came into existence in 2014 and is founded by Dharmil Sheth, Dhaval Shah, and Mikhil Innani. It connects the consumers with pharmacy stores that are situated nearby and helps in getting medical supplies in just a click.
Trifecta invested ₹15 Crore in PharmEasy in the December of 2017 as the venture debt. Later in 2018 E-pharmacy startup PharmEasy raised Rs 40 crore of debt from Trifecta. India’s top Pharmacy app decided to use the fund provided by Trifecta to develop their technology to establish more smooth performance. As per the financial year 2020, the revenue of PharmEasy is ₹637 Crore.
This mobile application software has taken it upon itself to provide news on all trending topics. Founded in the year 2007 by Umang Bedi, Umesh Kulkarni, and Virendra Gupta, it is serving Indian customers every day since then. It is based in Bangalore, India.
Trifecta has invested a confidential amount of money in Dailyhunt. As per the financial year of 2020, the revenue of Daily Hunt is ₹310 Crore
ShareChat
ShareChat Logo
It is a social media and social networking service (SNS) founded in the year 2015 by Ankush Sachdeva, Bhanu Pratap Singh, and Farid Ahsan. The best part is, it is available in 15 regional languages of India. As its name suggests one can share content and it has the feature of the direct message as well.
In the year 2020, ShareChat secured a deal with Trifecta and got a venture debt of $8.86 million. The revenue of ShareChat is ₹38.12 Crore as per the financial year of 2020.
Cars24
Cars24 Logo
Cars24 is an online marketplace to buy and sell previously owned cars and bikes. It was founded by Gajendra Jangid, Mehul Agrawal, Ruchit Agarwal, and Vikram Chopra in 2015. It is now quite easy to sell a car, which was quite a hassle before, thanks to Cars24. It is considered one of India’s fastest-growing marketplaces for selling used cars.
In 2017, the then two-year-old company was able to strike a deal with Trifecta. At that time, Trifecta invested a non-disclosed amount in the company. This time, Cars24 seal a deal of ₹100 Crore from the venture debt firm Trifecta in June 2021.
With the demand spurring for used cars in the country, Cars24 will use this fund to make its business more strong in the industry. In return, this will help it become a strong competitor for its rival businesses. The revenue of Cars24 is ₹1688 Crore.
CarDekho
CarDekho Logo
This is an online platform where one can sell and buy cars. It provides every bit of information about the automobile industry. It is based in Gurgaon, India, and was founded in the year 2007 by Amit Jain and Anurag Jian.
In the year 2018 CarDekho raises a fund of $3.6 million from Trifecta and in 2021 they again got venture debt of ₹100 Crore. As per the financial year 2020, the revenue of CarDekho is ₹240 Crore.
It is considered India’s largest platform of the fresh produce supply chain. It was founded by Ashutosh Vikram, Sharath Babu Loganathan, Thirukumaran Nagarajan, Vasu Devan in the year 2015. It helps in distributing fruits and vegetables directly from farmers to buyers.
In the year 2018, Ninjacart raised ₹7 Crore venture debt from Trifecta Capital, and again in 2019, it secured a deal venture debt of almost ₹20 Crore. As per the report, the funding is being used for the growth of infrastructure and the technology Ninjacart uses. The revenue of this company in the 2020 financial year is ₹469 Crore.
Vedantu
Vedantu Logo
Founded in the year 2011, Vedantu is an online tutoring platform for students. Here, one can find any subject tutor according to their choice and indulge with them in studies. The platform provides ‘LIVE’ one on one session between the teachers and the students. It is created by Vamsi Krishna, Pulkit Jain, Saurabh Saxena, and Anand Prakash.
The app is extremely popular among students as it provides online tutoring. With superior technology, they are trying to engage in building up the biggest learning platform for students. It focuses on providing quality education and good teachers to the users of the app.
The venture debt firm Trifecta invests ₹9.42 Crore in Vedantu in the year 2019. This made the online platform’s value $100 million. Vedantu caters to the needs of over 40,000 students from all over the country.
BharatPe
BharatPe Logo
Founded in the year 2018 by Ashneer Grover, Bhavik Koladiya, and Shashvat Nakrani, this financial service provider company mostly deal with payments via UPI. Based in New Delhi, India this company provides loans to its traders as well.
Trifecta funded ₹50 Crore to this Fintech company in 2021, the fund will be used for the growth of the lending business. The revenue as per the financial year of 2021 is ₹700 Crore.
Future Plans of Trifecta Capital
Trifecta is trying to help the startups that have high growth potential by providing them with funds and have a mission to make India one of the main hubs of Startups.
Conclusion
We live in a time where getting funds to begin with a startup is quite difficult. Trifecta started their journey to be the hope for those budding startups that showcase high growth and has a possibility of becoming a big brand in the near future. It is working and lending a helping hand to the dreamers to make their dream a reality, thus, their motive is to rise by lifting others.
Some of these companies are breaking the business world every day and proving their mettle by keeping the trust of Trifecta. Let’s learn about those companies a little bit.
FAQ
Where is Trifecta Capital Located?
Trifecta Capital is based and operates from Mumbai.
How much Trifecta Capital has invested?
Trifecta Capital has invested over ₹2200 Crore since 2015.
Who is the founder of Trifecta Capital?
Nilesh Kothari and Rahul Khanna are the founders of Trifecta Capital.
Tyro professionals are incipient every year, so the tax is levied as much a burden or responsibility to them. However, those fledgling employees/professionals become seasoned ones, someday and may see an uplift or augment in their income in the coming years, thus this will increase the burden as well as responsibility to pay high on income tax.
As is the case, high incomes represent high tax levied on individual incomes and vice-versa. This will reflect a slow-down in the development of future plans of a person, when he/she is paying a high share of tax in the present. And, in such cases, when the taxpayer has paid a superfluous share or underpaying on the prescribed tax, is solicited to make sure to file a return.
That’s where the Government of India introduced various Tax-saving investments to progress financial stable career paths in the future.
Here are Top 7 Tax-saving investments you can invest in 2021:
As said, the future is uncertain, we don’t know what will happen the very next moment? In some cases, only the invested or saved amount of an investment lends as a helping hand in the forlorn situations in the future, despite getting a low rate of return on such investment. Similarly, business is uncertain in various factors such as market price, trends, capital value or profit etc.
Bajaj Life Insurance Capital Guarantee Solution
Bajaj Allianz has come up with its new scheme on tax-saving in 2021- the Bajaj Life insurance Capital Guarantee solution that aids individuals to earn a 100% high rate of return on the investment amount which is piqued to 16.3% in the market as of now. Besides, the schemes provide zero risks and no commission is charged on the invested amount.
Eligibility: This policy/scheme is applicable to 18-65 years.
Policy term: 20 years
Benefits: Bajaj Life insurance Capital Guarantee solution bestows zero risk as well as commissions on the invested amount. The policyholder gets the benefit of partial withdrawals.
This tax-saving plan allows the policyholder for multiple withdrawals and no tax levied under section 10 (10D). Therefore, inbuilt life covers a maximum of 12 lakhs throughout the policy term.
Bajaj Allianz Life Goal Assures
Health is wealth, as we see the reality of the ongoing pandemic really made many individuals enroll on the tax-saving scheme- Bajaj Allianz Life Goal assures. Moreover, we have loads of obligations to fulfil, from education to living under a safe roof and for all that we need a sturdy amount of money to acquire. Because of this, Bajaj Allianz Life Goal Assures provides financial support to individuals as well as his/her family throughout their lives in accomplishing their needs.
Eligibility: This policy/scheme is applicable to 18-60 years.
Policy term: 10-30 years
Benefits: Bajaj Allianz Life Goal Assures offers special loyalty additions on augmenting maturity value at the time of every 5 years of the policy term and mortality charges which have been deducted in the policy term, will be added to the return fund at the time of maturity.
The tax-saving scheme comes with zero commission as well as tolerating partial withdrawals. Apart from that, this scheme permits the policyholder for flexible transfer of different funds in order to maximise the return in various markets.
This tax-saving scheme covers the demise of the policyholder or their beloved one in the family by supporting them financially. The sum assured is expected to be 105% of total premiums which will be received either at the time of maturity/death of the holder or take the fund amount in periodic instalments under the Settlement Options(SO).
Eligibility: This policy/scheme is applicable to 18-65 years.
Policy term: 10 – 30 Years
Benefits: Canara HSBC OBC Life Insurance investment 4G benefits in providing loyalty additions and wealth booster during the policy term. Besides, this scheme offers flexible transfer of invested funds, partial withdrawals, tax exemption, Settlement Options are available to the holders in case to receive benefits on the maturity and Premium redirection is available if the policyholder wants to modify the allocation of future premium into one ULIP fund or more.
Edelweiss Tokio life Wealth secure plus
This tax scheme comes with a combo of insurance plan and investment plan, which is built to protect the wealth of an individual in the present as well as for future generations. The scheme gives 15 lakhs in 30 years if a premium of 8% per annum is paid.
Eligibility: This policy/scheme is applicable to 1-55 years.
Policy term: 10-20 years
Benefits: the fund value will be received either at the time of maturity or death of the insured, not taxable, offers three additions- Loyalty addition at the 6th year of the policy term, Wealth booster addition and Maturity addition.
Max life Online Saving plan
Every individual chooses to join a savings insurance plan so that they and their family can get financial support in times of need. If you want to protect your dear ones the Max life online saving plan is what you are looking for.
Eligibility: This policy/scheme is applicable to 18-60 years.
Policy term: 5 years to the selected policy term for maturity.
Benefits: In Max life, an online saving plan, the total premium paid till the date of death is 105%. The insured can also renounce during the policy term, the person will be funded the sum minus the charge from when they discontinued. Till the last days, the insured will receive the fund value.
HDFC Life Click2Wealth is the same as other insurance that not only supports you but also your family. They give us many alternatives in which we can choose the best that suits us. No policy loans are available. The insured person’s family has benefited accordingly if the person dies. Grace periods are also available as per the plan.
Eligibility: This policy/scheme is applicable to 18-75 years.
Policy term: 10 to 40 years
Benefits: The policy has maturity and death benefits. The fund will be growing even after the policyholder dies as per the premium waiver option. The Premium modes contain many options from which you can choose the best instalments. 1% of the annual premium is added to the fund value. They have 10 fund options. After 5 years, the policyholder can withdraw the money.
ICICI Prudential life signature
A unit-linked insurance plan that supports you to achieve your goals and protects your family. In a systematic plan, Withdrawals in Regular intervals are allowed to support your dreams. Monthly, half-yearly and annual are the three premium paying modes.
Eligibility: This policy/scheme is applicable to 18-75 years.
Policy term: 10 to 30 years
Benefits: After the mature period, the policyholder can choose to withdraw the whole amount or choose a structured payout. The insured will receive the top fund value even if the policyholder dies with a minimum death benefit. The insured is exempt from tax for the premium amount as per section 80c and section 10D.
Conclusion:
Everyone wants to see their loved ones lead a happy and wealthy life, even if they are not present to witness or share the moments with them. Life is precarious, no one can guess what tomorrow will hold for us, so start planning, it’s never too late to start. If you are in search of a path that can help you to lead a financially secure life, then we suggest you seek assistance from any of the above-mentioned insurance companies.
FAQ
How to save tax in 2021?
Life Insurance, ULIP’s, Mutual Funds, Tax Saving Fixed Deposit, SCSS or Senior Citizens Savings Scheme and Provident Fund are some of the ways you can save tax.
What is Section 80c?
Section 80C is one of the most popular section that allows taxpayers to reduce their taxable income by investing in various schemes.
Is your savings account taxed?
Yes, any interest on your savings account is taxable income.
Inaugurating a business by capitalizing a hefty amount in it, is a tantamount predicament task to auctioning it off to someone you either know or not. Selling a business is not an easy decision made by an entrepreneur, because that business conserved as revenue in his life.
On the other hand, retailing any ilk of businesses depends on the nature and size of the business, whether it is a small or large corporation. Moreover, people won’t acquire any business without seeing a benefit in it. Everything comes at a price.
For instance, in a small business, buyers won’t see many benefactors in it as it is small-scale production and won’t exist for long-term growth. Meanwhile, if you peddle a large business, the very first thing a buyer looks for is- Long-term revenue and growth. So, ascertain the value of your business with the help of nature & size.
You can’t give away your business to someone’s hands without analyzing what comes next, like quotes ‘Think before you Act’; Sketch your future plan with the money you’re gonna get from selling your business.
Here are the things an entrepreneur or a businessman should definitely know before selling the business.
Selling off your business without any second thoughts will drive you to someplace either in a propitious or unpropitious future. Because you have done the diligence in growing your business which made your life better as well as contributed profuse services to people by gaining goodwill from it. But what if you have sold it to any wrong hands, this will bring a bad repute to you shortly.
So, Think twice before auctioning your business. If you are vacillating about selling your business, then don’t do it. Only if you are uncertain in monetary terms or challenging to manage your business, then you can look to market your business to someone who could do it efficaciously.
Self-evaluation is the first step that must be done when you think about selling your Business. What is the reason behind such a big step? There must be a clear-cut answer, which is acceptable by the buyers. Without a valid and clear reason, nobody is going to buy a business.
So before selling a business, you must have a well-structured strategy with the help of specialized personnel to avoid any mistakes you may make.
Why Self Evaluation?
Self Evaluation must give you the answer for the following:
Why am I selling my business?
You must have a point-by-point reason for this big decision at the starting stage itself, which makes it easy for you to stick to a particular area without getting confused at the later stages while communicating with the buyer. This may create a bad impact on the business. The reason also influences the buyers and their decision on the price.
Your decision for selling is solely based on profit value?
If you are in need of money and that is the reason behind the idea of selling, never make a hurry. That will only cause loss for your business sale. Just look for the perfect time and buyer with whom you feel comfortable selling your business.
What is your future plan?
Are you selling the business completely or do you want to remain as a partner or investor in your business? Think and make a clear decision about your association with the business in the future. Buyers must also be given the perfect answer about your vision on this.
Business is free of liabilities?
Business must be free of any liabilities, having which it will be a black mark, which will make an impact on the sales and price for sure. All existing liabilities, including personal, materialistic, money should be cleared even before making your decision to sell the business to the public.
Are all the papers clear?
Make sure that you have clear, complete, and well-structured documentation about the business. All vital records, including financial, marketing, business, and professional, must be included here. These documents make an impact on the buyer, let it be professional and profit documents.
What’s your next act?
It is cited that preparation is the sole key to success, so start prepping in advance in case you don’t want to lose a great opportunity in the near future. Always, compute your next step, because that is gonna manifest your position in the future.
These questions may pop up in your mind while selling your business: ‘What am gonna do after the business is bought? Will it be good for me and profitable in the future? Get ready to answer all these questions before giving away your only source of revenue. Therefore, plan subsequently to your list and set an alternative solution like- finance in some property and get revenue from it or become a partner in a company.
Well, the ending is the new beginning, you have to make up your mind in selling your business after analyzing what’s your next step.
Step 2. Know your Value
Selling your business is the decision you took that may have a numerous reason behind. But before getting into the sales, after evaluating your business, you have to know your value and you have to be clear about what you are looking into. This includes the following criteria:
It is best to evaluate your business first before going to a broker and discussing it because nobody knows your business as you do.
Estimate your business, including the incomes, taxes, earnings, profits, etc.
Know the market and market price.
Your assets and your earnings are more known to you. Try to get the best out of it when you decide to sell it.
Know your Stable status before Selling off
Check out whether you have sufficient money to pay off the expense or meet any other requirement for the future. Selling off your business may credit a large amount of money in your account, but will it be enough? Will it be adequate to survive till my last days? To sell your business in case you want to earn any profit out of it, start a new business or sell it if you are financially unstable to satisfy obligations.
Estimate the Value of your Business
Goodwill is the brand name, which you have earned in the locality of your business. Buyers will definitely pay a tremendous price when your business has a good reputation in the market and automatically accelerates demand. So, fix the purchase price according to the value of your business.
Step 3. Know the Opportunity Cost
Before selling your business, estimate the approx opportunity cost you will get in that. Generally, opportunity cost is the best alternative when a thing is foregone. You have to estimate the value you’re gonna get when you market off the business, ask yourself whether the opportunity cost of your business will be profitable or not? If not, what is the intention of selling it? And if yes, then how much are you gonna be helpful and what are you gonna do with it?
You don’t know the other side excepted acquiring price of your business. If you fix a higher price than the expected one, then the buyer won’t be amenable to acquire the business. So, determine the expected price of your buyer, then bargain for the price you want to sell your business.
Step 5. Know your Buyers
Being a business person, you may already know the trend and the top people in the industry. Professional reasons may be there behind the acquisition of your business. Always try to get the best buyer who believes in investing the worth you put for your company.
Instead of offering negotiable amounts to the buyers, wait for the right one when you get an intuition that the person is perfect to run your business after you.
Step 6. Target Multiple Buyers bidding
Don’t propose for one particular buyer, target various buyers and see how many of them (potential buyers) are inclined to invest money in the range that you have set for your business. Besides, this will augment your company outlook in terms of profitability as well as increase demand for your business in the market.
The business, which you have strengthened for years in good terms should be given to the right hands. If you have ceded your business in good hands, then the long-term growth of reputation is guaranteed for you in the near future.
Unlike, in case the business is rendered to wicked hands, then such a reputation which you have amassed for years before selling it would go trivial. So before trading your business, determine the potential of the buyers in sustaining the business credible.
While drafting a sale agreement, make sure the presence of a lawyer or someone who has pretty much knowledge about the agreement and drafting. Don’t miss out on anything because you could end up paying later. The agreement must be acceptable to both parties and any disputes must be settled before signing the agreement to avoid further confusion in the future. Some of the must-have agreements are:
Asset listings
Bill of Sale
Security agreement
Purchase agreement
The agreements must have the following details, which must be verified at the earliest.
Buyer and Seller Details
The detailed specification of the property
Terms of Payment
Terms and conditions
So are you ready to sell your business? Just take it as simple as it is. You know your business and its internal and external happenings. Make everything clear to the lawyer and the broker or any mediator if there is any. They will help you in drafting the perfect agreement.
Finding the potential buyer is the main aim and may take time. Be patient and wait for the one whom you think is eligible to take over your business. Time and price may not be in your hand. You will have to wait until you get satisfied.
If you find growth in your company after the decision of selling, let it be. Your profit will only increase with a company with great profit. More buyers will get attracted to your business and you will notice a hike in the estimated purchase value.
When a buyer gets interested in your business, they first send an IOI i.e. Indication of Interest. This is a document with their proposed terms and conditions and other details. This document is the primary thing based on which the owner decides whether to move forward with that particular buyer or not. After the IOI, the LOI or Letter of Intent is given to the buyer which includes the terms and data about the company, to give the buyer a complete picture of the business, which helps them to make a decision i.e. whether to move forward with the purchase of a business or not. The next document is the purchase agreement that contains detailed data about financial and legal terms and conditions. This is the final document to be presented during the sale.
Conclusion
Well, like said above, starting and selling a business requires a lot of time and effort. The thought of selling a business befalls when you face a financial crisis to meet business requirements and when you want to sell the business in order to start something new in the future.
The amount you receive in selling your business highly depends on the value of your business – Goodwill. On the other hand, finding a potential buyer who is promised to maintain your business on good terms after surrendering it to the buyer. Therefore; Keep in mind, work in progress to result well in a long-term process, if you are planning to sell off your business in the future at a higher price.
FAQ
What is the rule of thumb for valuing a business?
The common rule of thumb for valuing a business is to calculate your percentage of the annual sales, or the last 12 months of sales/revenues.
Do I have to pay tax if I sell my business?
Yes, you may have to pay tax if you sell your business.
What to do before you sell your business?
Few things you should know before selling your business is to estimate the value of your business, target multiple buyers bidding and Don’t fix the purchase price too high.
Harshit Verma
