Top 10 personal finance blogs globally and why I love them

So happy to say 3 top personal finance blogs are from India.  Indian blogs Bemoneyaware, Jago Investors and Basu Nivesh in the top the list! not being partial at all!

There are several blogs I follow globally, many of them I like just because they maintain a consistency on the subject they cover. Mostly very niche, within the personal Finance, they chose a topic – example – budgeting, loans, spending, investments or insurance. Based on their content, alexa and Moz ranking I have curated  a list of 10 personal finance blog you must have a look. The blogger in the personal finance list belongs to Asia, Europe, Canada, US even India.

1.       The Penny Hoarder - In 2017, Inc. 5000 ranked The Penny Hoarder as the No. 1 fastest-growing private media company in the U.S. for the second consecutive year, and #25 on the overall list of the fastest-growing private companies in America. With over 12-17 million reader per month and 1.2 million subscriber, they are in top of their game. The Founder and CEO of the blog, Kyle Taylor is an entrepreneur, philanthropist, and the founder & CEO of The Penny Hoarder. The blog cover huge array of topics from freebies, discount deals. The blog makes money interesting, catchy and funny.

     This blog enjoys an amazing ranking of 3,686 in the United States and global ranking of         14,637

2.       Bemoneyaware Being an Indian, its giving me great pleasure to list this blog on the top. The author, Kirti is a mother of 2 kids and a software professional. Having faced difficulty in the financial processes, in field of investing and other mundane transactions, she decided to start this blog, and this is one of the highest  ranking blog in India as well as globally.

     #The top Indian personal finance blog currently enjoys a Indian Rank of 5275 and a                  global rank of 68,800

3.       Jago Investor – An Indian finance blog, founded by Manish Chauhan and Nandish Desai in 2008) with the aim to educate more and more investors and improve their financial life by imparting financial education among them. They have been writing about personal finance and have been conducting various workshops in different indian cities. They have also authored various personal finance books. They work with clients across India from various cities and have a 10 member team across Pune and Ahmedabad.

The team has written 1000+ articles, 7 books amongst many other achievements.  

      Did you choose your car insurance or just bought it? 

    #The top personal finance blog enjoy an Indian ranking of 12750 and global ranking of             163,000 in Alexa

4.  Get Rich Slowly - J.D. Roth. I founded Get Rich Slowly in 2006, published Your Money: The Missing Manual in 2010, created the year-long “Get Rich Slowly” course in 2014, and for four years contributed the monthly “Your Money” column to Entrepreneur magazine. In 2009, for reasons both personal and financial, I sold Get Rich Slowly — but stuck around as manager, editor, and primary writer until 2012. Then I “retired”. (Sort of.) In October 2017, he bought Get Rich Slowly back. The Canby, Oregon born founder has been featured On Forbes.

       #Listed on the top 10 #personal finance #blog, currently enjoys US Ranking – 21,200               and global ranking of 80,000.

5.  Basu Nivesh – This is Indian Finance blog is authored by Basavaraj Tonagatti. In his blog, he mentioned that the blog originated from the idea of educating people on personal finance. Apart from being a successful blogger with a big follower list, he is one of the few celebrated Fee Only advisers. (SEBI registered advisor). The blog is 8 year old and doing a great job on creating financial awareness amongst Indians. 

Did you choose your car insurance or just bought it? 

     This Indian personal Finance blog enjoys Indian ranking of 5,942 and a global ranking          of 78,500

6.       FrugalWoods - Liz, better known as Mrs. Frugalwoods, writes about a wide range of topics, including her experiences as a young  parent, her adventures as a novice homesteader, and the financial decisions that made our life possible. Her philosophy is that managing money wisely enables one to pursue unusual aspirations and opens up a world of options for how to live one’s life. She covers a wide range of category including biking, home improvement, health and beauty, holiday and special. Her blogs are engaging and makes me click every hyperlink.

      The blog has a US ranking of 44,000 and Global ranking of 1,96,000

7.       Oblivious Investor  - This one essentially is an investment blog. The author Mike Piper is a CPA and the author of several personal finance books. The point of this blog is to show that investing doesn't have to be complicated. He dedicates this blog to spreading the idea that investment success is based upon following a few principles: Diversifying portfolio, minimizing cost and avoiding media noise.

      The blog enjoys a US ranking of 50,833 and Global ranking of 2,38,800

8.       Afford Anything – The beauty of the blog lies in its name- Afford anything. Accrding to the blogger -  Afford Anything is a movement rooted in one idea: You can afford anything, but not everything — and that’s true not only for your money, but also your time, focus, energy and attention.

The author Paula Pant has an elaborate CV to flaunt. Besides being the founder of  the award winning  website AffordAnything.com and a writer she is a speaker specializing in money, business and real estate investing.She has been featured more than four dozen major publications, including Forbes, Fortune, Money.com, AOL DailyFinance, Marketplace Money and many more.

She’s contributed to dozens of major websites, including U.S. News, AARP Bulletin, MSN Money, Bankrate, Hotpads, Trulia, Huffington Post etc.  She is the Budgeting and Personal Finance Expert for About.com.

     The blog enjoys US ranking (on Alexa) 42,725 and global ranking of 1,61, 600

9.     My Money Blog – The blog is run by Jonathan, based in United State and I've been sharing about money since 2004. He is a self-directed investor, financial freedom enthusiast, and calls himself a perpetual learner.  He is running the blog for 13 years.

      Enjoys a US ranking of 30,674 and a global ranking of 131,485

10.   Budgets Are Sexy – It is a 10 year old blog. Blogger blogs with the name J. Money. The blog covers savings, money management and tips. Budgeting is an important part in the blog.

      The #Top personal finance blog enjoys a US ranking of  27,895 and global alexa ranking        at 129,700

   As you are a special reader who have read the whole blog post, you deserve more. Here you go with one more blogpost which I really like for the money management lessons. 

    
       Squawkfox  - The Author Kerry is a  Financial Journalist and author of of 397 Ways to Save Money. She is a world renouned blogger, and known for her fun approach to personal finance writing reaches an audience of millions around the globe each year and inspires readers to become financially independent. Based out of Torronto, she is a personal finance columnist, TEDx speaker, a money expert on CBC’s On The Money, and a contributor to the Globe and Mail. She has appeared on lifestyle shows The Marilyn Denis Show, Canada AM, and CTV’s Your Morning.

      US Ranking of 89,000 and global ranking of 316,500

Hope you make use of the information from the blogs listed here. I also read many more interesting international blogs which are very interesting, may not have as many followers and views as above blogs. Those personal finance blogs There are many more useful personal finance blogs, let me know if you want to know more about them.

Do you have the Moolah to buy your desires? Budgeting will help

This article is written by Guest Author Ms. Nayan Thapar, a personal finance enthusiast and pursuing post graduation in communications. Views are welcome at mymoneystreets@gmail.com

You wish to buy a house? A car? Or let’s say you are this “I love to travel so let’s pack our bags and go on an adventure trip” kind of a person. But, the fact that there isn’t enough money in your bank account to fulfil your whims and fancies, you cease to live life the way you want to live. You somehow always end up restricting yourself and ultimately, just get used to the life that lacks impulse.

From the blog - Create wealth with conviction and planning

In order to provide a cushion to your dreams, here are some tips that could ease your financial pain in no time. So to be precise, let’s talk about the ‘B’ word: Budget

·         The little things; #thatmatters

We joke about these little things but at the end of the day, these Lilliputian efforts that you put in, really matter. Giving an example would make a difference. As a student, you are always late to catch the college bus that you get as a service and instead you end up taking an Uber or an Ola because you want to be in class before 10 am. Now, that costs you around 30 bucks which is insignificant but when we calculate it in our monthly expenses, it sums up to about 900 which “could” have been used as your bus ticket to the next destination on your travel bucket list. Does it make sense? I think, it does.

From the blog - Top reasons for claim rejections

·        Confessions of a shopaholic

Everybody understands when we talk about impulse buying because everybody has gone through that phase at some point in their life and everybody has gone on a major guilt trip now and then. The question is how do we curb this feeling? Well, now that we are staying in a world full of digital heads, there are so many apps which can help us keep a check on the kind of purchases that we make and in which areas we end up splurging on. Apps like Walnut, MoneyManager and Monefy can actually curb your urge to splurge!

·        Get set Goal

Set a monthly as well as an annual aim or a short term and a long term goal, according to your suitability. It just makes things a lot simpler. You already have a pathway on how you have to go about throughout the month and it won’t come out as a shocker unlike the times when you suddenly realize that you are underpaid or you fall under the ‘urban poor’ bracket.

·        Strike a happy medium

Balancing your way through is essential. Every month, when you plan your checklist, categorize on where you want to extravagantly indulge and where you can cut down on your expenses to balance out your expenditure.

If you make these miniscule changes to your financial calendar, then there is a definite chance that you might bag some bonus trips and getaways or might end up purchasing more than what your pocket allows (but that is helpful sometimes and not all the time).

Loans are not bad, we need to be responsible with it

#Loan and the peril of the compounding

The topics on savings and investing through various means and modes have become quite popular, thanks to the conscience of regulatory bodies and growing numbers of personal finance experts. Before we go into any other diacussion, we need to appreciate that Indians are known for their savings habbit with more than 30% of their income goes into savings. In Investing, wide range of financial products have been introduced through last three decades. Mutual fund industry alone trebled their assets under management with Indian retail investors in last decade. Concept of SIP and power of compounding is already doing the magic. However, the overall financial behavior is yet to mature. 

The term "risk" doesnt go well with our especially middle class elders. The younger generation however are more experimental given their high disposable income and less family responsibility and small family structure. In last 100 years Indian economy  has gone through massive change, so is the socio-economic behavior. But due to lack of adequates and inherent orientation, the new earning fraternity is often found clueless and spoilt for choice on the financial front. 

Loan is one of those frowned terms in Indian households as the equity investing has been. Thanks to evergrowing mutual funds industry, it has turned around the conservative indian investors by beating market returns and with superior offering. But, loan is still a forbidden word owing to our paternalistic regulators and still conservative experts. Its high time, that we look at Loan more rationally. This is not neccesarily an evil. The evil is caused because of irresponsibility, which is result of low or no understanding of the product. Loan as a financial instrument is one of the oldest financial products in the world. If we have to define loan in simple terms, when we are depositing money in the bank, we are lending our money to bank and bank in returns is giving us predecided interest depending on the tenure. Same way bank lends out with a predecided term and interest rate. The difference is bank being a large institution with huge establishment and loan repayment capacity, it offers us lower interest when we lend to the bank and it charges a higher interest rate from the customers, as it runs higher risk on its capital by lending to individuals. 

Decade ago things were little different. Especially India had a practice of "sahukar", the informal lending channel, which ruined many households with malpractice for centuries. The trauma and fear has been carried as burden by generations. Even post independence, untill 1990s, the interest rates were very high in the banks and with the compounding effect, cost of loan was very high. But, with lowering the interest rates and competitive environment, loans are available at much lower cost. 

However, no way I mean that one should take a loan without any rhyme or reason. The way investment has a purpose, loan should be taken 1. If it is absolutely neccesary 2. You have enough money to pay and just want to ease the cash crunch. Lending beyond repayment capacity will create huge trouble.

The way investing early is applauded because of power of compounding, for loans it is exactly opposite, we may call ot as "peril of compounding". If one misses out loan repayment instalments, the interest would be added to the outstanding amount and the interest will be calculated on the whole outstanding ruther than the principal in the next instalment onwards.

Given all the facts, India is waking upto the reality of modern financial system of the world, and doors have opened for new age loan products especially in the personal loan space like peer to peer lending, short term small loans lending, credit line addition to our ever evil Credit Cards. Thanks to prudent approach of RBI and CIBIL history, loan industry is well regulated. In all likelyhood, loans will be mire accepted product and will be used very responsibly by us

Financial Inclusion - A Mission and A Revolution!

The term ‘financial inclusion' reminds me of the first ethos of democracy that is ‘equality', equal treatment, equal opportunity and equal availability of resources. It simply means providing financial services at a minimum cost to sections of underprivileged and low-income segments of society, making all individual contributing to the economic growth.

If we go by research reports, India stood in the bottom few countries in financial inclusion until 2011, which caused financial disparity and uneven growth, a major setback for the developing nation. However, the recent multi-layered approach towards financial inclusion indicates a strong step towards eliminating this socio-economic hindrance. According to World Bank data, around 2 billion people in the world don't use or have access to formal financial service and about 50% of the poorest households are unbanked. The experts believe, the inclusion of these unbanked population would reduce the economic inequality, World Bank aims to complete Universal Financial Access (UFA) by 2020.

The India Scene: Though the term was coined in the year 1994, the history of financial inclusion goes back to the pre-independence era of the first foundation of the modern banks. As time rolled, India, a new democracy did its own bit to include the poor and deprived population to include in the financial system. However, the history of banking in India had its image deep-rooted in Indians as ‘for rich and wealthy', which restrained the poverty-stricken less privileged to knock the door of banks. They kept relying on unorganised money-lenders who preyed on the poor. Few major steps in this era included nationalising the banks between 1969-1980. It was only the first step towards a long marathon. This era also built the foundation of RRBs (Regional Rural Banks), formed to serve the large unbanked population of rural areas and promoting financial inclusion. 

The year 1991 marked the new wave of liberalisation reforms in trade and economic policies in India, which also brought the private banks into existence. The process of opening branches in rural India, however, remained slow. 

Real Growth: For long, banks ignored the remote and rural areas of India to focus on their profit and keeping their costs in check. RBI played a catalyst in the modern reform by permitting banks to engage business facilitators (BFs) and BCs as intermediaries for providing financial and banking services, also known as Bank Mitra. To further penetrate rural India, RBI simplified branch authorisation in December 2009, allowing domestic scheduled commercial banks to freely open branches in tier III to tier VI towns and villages with a population of less than 50,000 under general permission.

In the last decade, India has witnessed a paradigm shift in the approach of financial inclusion, from a social responsibility it has turned into a full-fledged ‘mission'. The true essence of financial inclusion is reflected in the series of initiatives under the leadership of PM Narendra Modi. Keeping up with the demand of millennial generation and new economic environment, financial inclusion is now not limited to opening bank branches in rural areas and frill-free bank accounts. There have been multiple action parallely undertaken like a revolution to reach the goal. Besides direct approach, the government also facilitating other institutions in their efforts and keeping up with the need of modern financial reforms. 

Year 2011 onwards

The series of new initiatives are compelling the unbanked population to open a bank account and link it to Aadhaar and PAN to receive government subsidies and other assistance. It is not a one-time approach, but the persistent effort can be seen through action at multiple levels attacking the root cause.

During the period 2011 – 2015, the unbanked population of India halved from 57.7 crores to 23.3 crores, as reported in a PwC research. PradhanMantri Jan DhanYojna (PMJDY) and demonisation drive together mobilised about 26 crores of unbanked population to the formal financial ambit further lowering the number.

With PMGDY, the government also introduced term insurance policy for all, Pradhan MantriJeevan Jyoti Yojana (Rs. Two lakh sum assured for An annual premium of Rs. 330) and health insurance scheme Pradhan Mantri Suraksha Bima Yojana (Rs. Two lakh sum insured for a premium of Rs. 12). The Adhaar linked accounts now can also be used for UPI with a smart phone or even feature phones (mobile wallet). To encourage the unbanked population, the consistent efforts are made through the demonetisation drive, direct subsidies and now monetary assistance for pregnant women in the underserved population amongst other. The regulations in microfinance business over last decade have made financial services affordable for the poor. The introduction of payment banks and small banks only ensures a better reach to the rural and remote areas without proper infrastructure facility.

A recent research report by BCG mentioned India to be making the fastest progress in the financial inclusion drive. Including digital mode of banking in the base level is expected to further strengthen the movement as the number of mobile users exceeds the bank account holders with a high margin. Given the infrastructure and resource constraints, digitisation drive will make rural banking viable and efficient.

Communication: The recent moves of PMJDY account and demonetisation was well covered by all media outlets and PM intelligently used media for the benefit of the nation especially with his ‘Mann ki Baat' on radio and announcements on national TV Doordarshan. Going further, communication will play an important role. Experts will agree, India, the country with the world’s second largest population is known for its diverse culture and socio-economic system. As the focus is to reach the rural and remote areas and include them in the financial system, the communication tool and strategy need to merge with the local flavour while keeping the key message intact. The localisation of communication strategy efforts will further improve the trust of the rural to only open but transact and maintain their bank accounts for their own benefits.

If we think logically, the common mass media used for the tier-I cities would be quite irrelevant for the tier-II and below, however widely it can report the issue. For an effective communication programme, three major aspects would be: 1. Targeting right Influencer group 2.Choosing the right platform/ tool and 3. Designing the key message.

Choosing the right Influencer group will be as important as the messaging. The village communities are largely influenced by their Panchayat, school going or educated children, teachers, doctors, postmen and local heroes. The benefits of bank account and choosing formal financial products can be promoted in platforms like local events through plays, sponsorship programs of self-help groups, training children in the government schools, training volunteers to spread the message in the community etc. Sharing a digital demo should be an important element of the campaign. The content of the messaging should be touching the right cords of the rural population.

An informed society makes a better decision. So, educating them in the right direction is also a core responsibility of powers that be, apart from providing mere services. 

Create wealth with conviction and planning, guess work only lead to fear and greed

It is a general and well accepted belief that now(early) is the best time to invest, equity is the best investment vehicle and S-I-P in #Mutual Fund is the best discipline for  the investors. But, there is more to it. Factor which is important element of investment  or financial planning for that matter is the mindset of the investor. Fear factor and lack of planning can lead to massive mismanagement and wealth erosion. The factors including emotion and goal setting are important to make a risk proof investment portfolio. In the next two paragraph I intend to elaborate on the same.  

Detach yourself from emotions like ‘Fear’ and ‘Greed’

RISK remains a common constant factor in every sphere of our lives, so is investments. We do not stop boarding flights after hearing many hijacks, neither we stop traveling by train when we hear about train accidents, nor even we stop praying to rain god despite suffering floods year after year in various part of the country.

Life gives us choices, and we hope for everything to be in a particular fashion to enjoy life to the fullest,  so does investments, with which we create our estate, wealth pool, our pride. Often we talk about risk profile of investor and planning investment accordingly. So, what defines the risk profile of an investor? – It is his age, health, responsibilities and timelines. Similarly investments too come with various risk factors. And, NO investment is risk free, not fixed deposits, gold, land, equity, commodity, dollar or anything. 

Every investment has its own share of risks and rewards associated with it. For example, we can have a fixed and assured appreciation on our wealth in a short span of time through fixed deposits, company deposits, for long term it may not be able to give inflation adjusted returns and the sum my look tiny compared to the needs of future. In similar fashion, it is not mindful to invest in equity/ related instrument for an year if you already have a set deadline and amount requirement, market may just crash and your investment may show an enormous negative return. So, choosing an instrument should depend on the requirement and timeline. FEAR is only when the expectations areunrealistic. 

But still, we invest and grow. And we like to grow despite all risk factors. Rather than focussing on the risks, a smart investor looks at the possible risk mitigation tool, a plan which helps distribution in asset classes, setting measurable goals and simple execution.  

Why do we create Wealth – Set measurable Goals

Wealth creation is a function of setting goals and plan a disciplined action. We need wealth, but without a purpose wealth cannot be enjoyed. We need wealth for certain purposes, namely post retirement life, vacations, medical emergencies, child education, buying Home etc. There are numerous dreams human have, for a few, we can plan our investments. Planning can include simple S.M.A.R.T formula.

S  - SPECIFIC- To attain something we need to have a specific desire, namely buying  car/ Europe vacation/ education/sabbatical

M – MEASURABLE – Clarity on the expectation and exact outcome. If we know the price of the car is 4 times our monthly salary, we need to know in how many months you will be able to save the amount, or if you will take it on loan, how many EMIs you can finish your loan comfortably without stretching limits.

A-ATTAINABLE –  We can dream of moon, but we need a NASA rocket for that. We need to be able pool in the investment within the current inflow

R- REALISTIC – Expectation of returns should be realistic. If you are investing in fixed income product, you need to know, that the income will be on single digit percentage point and equity will be volatile.

T- TIMELY – Goal need to have a timeline. If your child is 5 year old, it is likely he will go for higher studies in 15 years time, so the investment plan need to pan out in a manner that you have your kitty ready to go within that time period.    

Happy Investing!

SREI Infra NCD issue - Good buy for investors with moderate risk and lower tax bracket

#SREI Infra Finance issue of secured NCD of Rs. 250 Crore with an option of retaining upto Rs. 1000 Cr.  to be launched on Sep 7, closing on sep 29, 2016.  

About the company - #SREI Infrastructure Finance Ltd, is a RBI registered non-deposit taking NBFC. Classified as an “Infrastructure Finance Company” in the year 2011 by RBI. The company was originally incorporated in New Delhi on March 29, 1985 by the name Shri Radha Krishna Export Industries Limited with the Registrar of Companies, Delhi & Haryana, in accordance with the Companies Act 1956 as a Public Limited Company, to undertake lease and hire purchase financing, bill discounting and manufacture and export of certain goods. Company’s name was changed to Srei International Limited on May 29, 1992 and further changed to Srei International Finance Limited with effect from April 12, 1994. The name of the Company was further changed from Srei International Finance Limited to its existing name Srei Infrastructure Finance Limited on August 31, 2004. Company is registered as a Non-Banking Financial Company within the meaning of the Reserve Bank of India Act, 1934.

About the issue

From liquidity crunch to overflow, the market has seen a major shift of sentiment in past 6 months. The equity IPOs to Bond issues investors are lapping it up all.

After an overwhelming response of two tranches of DHFL Secured NCD issues, SREI is next on the block. SREI’s base issue at Rs. 250 crore, may retain up to 1000 crore with green-shoe option

Features in details –

Issue open and close - Opens on 7th September 2016, closes on 28th September 2016, however, the allotment is on first cum first served basis and the company may close issue on oversubscription within a day or two as well.

The NCD Bond – SREI is offering NCDs which are backed by security/assets. Hencce, the capital investment is secured by SREI, incase of non-payment/ non-liquidity invesors has the right on liquidating the secured asset to recover the cost.

Tenor – 400 days, 3 years and 5 years

Annual yield – Upto 10%, depending on tenor and interest payout option

Face value – Rs. 1000/ unit

Minimum and maximum investment -  The minimum application amount is Rs. 10,000 collectively across all options on NCDs and in multiples of One (1) NCD after the minimum application.

Categories of Invstors and allotment ratio - 

Category I – Rs. 200 crore

Category II – Rs. 200 crore

Category III – Individual & HUF Investors – Rs. 600 crore

NRIs, QFIs and foreign nationals cannot invest in this issue.

                                               

Credit Rating - SREI has received an AA+ from BWR, which s second highest rating after AAA, making it a safe investment option. This issue has received one notch better than last Secured NCD issue of last year which was at  AA.

Format  – Investors can hold both in physical or demat format, demat is not mandatory.

Listing – will be listed on both exchanges - BSE and NSE

Trading – Allowed from the first day, no lock-in period

Taxation – Though the dematerialised NCDs don’t attract TDS, the investment will taxed at short term (less than a year) and long term (debt investment more than a year are taxed at 10%) depending on the holding period. The interest will be taxed as per the tax bracket of the investor.

Also Read - What is NCD and what makes it so attractive

Series	I**	II#	III***	IV**	V#	VI	VII**
Frequency of Interest Payment	Cumulative	Monthly	Annual	Cumulative	Monthly	Annual	Cumulative
Minimum Application	Rs. 10000 (10 NCDs)
Face Value/ issue price	Rs. 1000/-
In multiples of	1000 (1NCD)	1000 (1NCD)	1000 (1NCD)	1000 (1NCD)	1000 (1NCD)	1000 (1NCD)	1000 (1NCD)
Tenor	400 days	3years			5 years
Coupon per annum	NA	9.35%	9.75%	NA	9.6%	10%	NA
Effective Yield (per annum) for Category I, Category II & Category III Investor(s)	9.08%	9.76%	9.82%	9.75%	10.02%	10.04	10.00%
Mode of Interest Payment	Multiple mode
Amount (` / NCD) on Maturity for Category I, Category II & Category III Investor(s) **	Rs. 1100	Rs. 1000	Rs. 1000	Rs. 1322	Rs. 1000	Rs. 1000	Rs. 1611

                                                             

Application Form for SREI Infra NCDs – Click here

Financial Health of the company - Annual Results Consolidated Figures in Rs. Crores / View Standalone

	Mar-13	Mar-14	Mar-15	Mar-16	TTM
Sales	3,188.74	3,235.17	3,339.32	3,234.14	3543.88
Expenses	518.89	521.11	696.54	629.96	945.64
Operating Profit	2,669.85	2,714.06	2,642.78	2,604.18	2598.24
OPM	83.73	83.89	79.14	80.52	74.7
Other Income	25.8	25.19	21.24	27.8	49.29
Interest	2,139.25	2,350.28	2,274.15	2,310.75	2278.94
Depreciation	193.62	163.35	201.43	215.29	225.66
Profit before tax	362.78	225.62	188.44	105.94	142.93
Tax	102.71	88.11	67.04	44.41	51.31
Net Profit	263.18	138.51	129.11	72.52	100.77
EPS (unadj)	5.14	2.67	2.46	1.34
Dividend Payout	15.88	18.18	19.49	34.69

Compounded Sales Growth:			Compounded Profit Growth:
10 Years:	25.49%		10 Years:	-2.15%
5 Years:	14.66%		5 Years:	-17.86%
3 Years:	0.47%		3 Years:	-36.30%
TTM:	10.78%		TTM:	13.93%

*data – www.screener.in

After a difficult period of three years, company has seen a upward trend in last one year. The balance sheet and P&L sheet reflects the same.

Should you invest in #SREI secured Non-Convertible Bonds? 

It is a good debt investment  option with high yield and attractive tenor spread of 400 days, 3 years and 5 years. #NCDs are being offered by reputed infra-finance company, having a minimum investment requirement of Rs. 10, 000. The NCDs are secured, backed by assets, which means incase of default/ non-payment, assets can be liquidated to repay the debts.

The #coupon rate across segment is expected to be just above 1.5- 2 % from any bank FDs at this point of time. While a bank FD is offering 7.5% interest on yearly deposit, 400 days option is giving a good 1.5% extra return. Also, after a rough patch, the financial health of the company has improved thus interest payment ability. Brickworks has given it a thumbs up by giving it notch higher Rating of AA+ in the latest issue.

A person with moderate risk profile can invest a part of fixed income portfolio in this issue. Person in lower tax bracket will get to see higher return.

Risks in this issue – 

·         NBFC Business is particularly vulnerable to volatility in interest rates

·         SREI is in infrastructure sector, which has seen lull for over five years

·         Any increase in the levels of non-performing assets in loan portfolio, for any reason whatsoever, would adversely affect the business, results of operations and financial condition   

·         SREI derive majority/substantial of our revenues from our top 20 borrowers. Inability to maintain relationship with such borrower or any default and non-payment in future or credit losses of our single borrower or group exposure where they have a substantial exposure could materially and adversely affect business, future financial performance and results of operations