Stay safe at home. We have strengthened our online platforms with an aim to serve your needs uniterruptedly. Access our websites: www.nipponindiamf.com www.nipponindiapms.com (Chat feature available) www.nipponindiaetf.com www.nipponindiaaif.com Click to download our mobile apps: Nippon India Mutual Fund | Simply Save App For any further queries, contact us at [email protected] Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Risks In Debt MFs pg 38 Diabetes Insurance Plan pg 58 JUNE 2020, ` 50 OUTLOOKMONEY.COM THE NEW NORMAL POST COVID-19 Everything, from the way we eat, earn, save and spend, is going for a complete overhaul, something we have never imagined before Term Insurance Personal Finance in Volatility Surviving A Salary Cut Or Job Loss 8 904150 800027 0 6 Contents JUNE 2020 VOLUME 19 ISSUE 6 Invest Smartly Keeping A Long Term View It is important to diversify the portfolios across asset classes, as it will assist in hedging the portfolio during a market downturn pg 14 Regulars 8 Talk Back 11 Queries 13 News Roll 74 Dear Editor Cover Design: VINAY DOMINIC HEAD OFFICE AB-10, S.J. Enclave, New Delhi 110 029; Tel: (011) 71280400, Fax: (011) 26191420 OTHER OFFICES Bangalore: (080) 43715021 Kolkata: (033) 46004506, Fax: (033) 46004506; Chennai: (044) 42615225, 42615224; Fax: (044) 42615095; Mumbai: (022) 50990990, Printed and published by Vinayak Aggarwal on behalf of Outlook Publishing (India) Pvt. Ltd. Editor: Arindam Mukherjee. Printed at Kalajyothi Process Pvt. Ltd. Sy.No.185, Sai Pruthvi Enclave, Kondapur – 500 084, R.R.Dist. Telangana and published from AB-10 Safdarjung Enclave, New Delhi 110029 For Subscription queries, please call: 011-71280462, 71280400 or email: [email protected] Published for the month of June 2020; Release on 1 June 2020. Total no. of pages 76 Outlook Money does not accept responsibility for any investment decision taken by readers on the basis of information provided herein. The objective is to keep readers better informed and help them decide for themselves. www.outlookmoney.com June 2020 Outlook Money 3 Contents pg 68 Emergence Of Transformation Insurance sector is switching to the digital platform for a fast and cost-efficient result 38 Identify The Turmoil 54 Surviving The Storm It is important to acknowledge For a proper investment re-align the risk factor associated with amid the crisis, re-check your debt mutual funds, and act financial goals, and re-prioritise accordingly your needs 44 The Golden Glitter 58 A Lifestyle Disease Gold to play a critical role in the Analyse the diabetes-specific health pandemic as it is likely to surpass insurance policy, before a diabetic `50,000 mark in next 12 months pandemic sets in pg 74 48 Stockpick 62 Role Of Term Insurance Dear Editor A steady performance of NTPC Explore the pros and cons of term and Britannia Industries insurance before investing Gurpreet Sidana, Chief Operating Officer, Religare Broking shares his 50 Morning Star 72 My Plan investment journey in In focus: HDFC Gift Fund, ICICI Amidst all negativity, it is advisable equity trading Prudential Bluechip Fund, to invest in equity, to experience a Nippon India Large Cap Fund comfortable financial status Columns Ajay Bagga, Raamdeo Agrawal 4 Outlook Money June 2020 www.outlookmoney.com Focused on the right selection. ICICI Prudential FocusedFocused EquityEquity FundFund To invest, consult your Financial Advisor Download Visit IPRUTOUCH App www.iciciprumf.com ICICI Prudential Focused Equity Fund (An open ended equity scheme investing in maximum 30 stocks across market capitalisation i.e. focus on multicap) is suitable for investor who are seeking*: • Long term wealth creation • An open ended equity scheme investing in maximum 30 stocks across market-capitalisation *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. Investors understand that their principal will be at moderately high risk Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Chapter One Economy In Labour Crisis ver the last weekend, I spoke some time before normalcy returns to the to some companies in the civil Indian markets. construction sector. They said However, the big question now is Othat although the government has allowed whether the Rs.20 lakh crore economic them to start industrial activities, they package announced by the Prime Minister were facing a unique problem: labour. With will bear fruit. There is a general feeling that migrant labor returning to their home many of the policy measures announced states due to the COVID-19 pandemic, are long term and may not have a direct there were not enough people to man connect with the COVID-19 crisis. operations on the ground. Efforts by these For example why amend the Essential companies to get people from Bihar, Bengal, Commodities Act now or open up New investment rules, UP and Odhisa did not bear fruit and they disinvestment at this point when the private portfolio diversification feel labour may not return before July- sector is pulling back on all investments. and asset allocations August severely impairing their ability to Of course it will help the MSME sector, are the new norms post kick start economic activity. which will boost economic activity on the pandemic The situation in many other sectors ground. The MSMEs have been repeatedly is pretty much the same. Take the worst hit, first during demonetization and aviation sector for example. Although the now the pandemic. A large number of government opened up domestic air travel units have shut down. This package could on March 25, the first day was marked come as a welcome help. The `3 lakh crore by over 100 cancelled flights from Delhi worth of collateral free loans, `20,000 crore and Mumbai alone. This sector which has of subordinate debt and `50,000 crore of been on a complete standstill since the equity infusion, change in MSME definition nationwide lockdown was announced on and e-linkages to the markets would greatly March 25, will take some more time to help the sector. return to normalcy. The reduction in repo rate announced With international air travel slated to by the RBI is getting mixed signals. While begin in the next two months, economic it may be good for net borrowers, it may activity is expected to resume. But a lot turn out to be counter-productive for the of damage would have already been done. common man as his deposits will earn Globally, airlines are estimating that their less and will hit senior citizens who live on losses could be to the tune of $113 billion interest from savings and fixed deposits. It in the current year and that could be a will also not be very good for investors as conservative estimate. debt funds may not see higher returns. The good thing is that the stock On the other hand, it is not very clear markets are showing some resilience and who the extension in moratorium on EMIs there are signs of recovery. The Sensex has by another three months will help. The mostly stayed over the 30,000 level which first three-month moratorium had mixed is a good sign. reactions as most people were looking at But the worrying factor is that foreign the increased interest burden and many investors have pulled out about $ 26 opted out of it. This second round may see billion from developing economies in similar results. Asia. The figure for India is about $16 There is large scale expectation that there billion, according to a latest report by the would be more economic packages from Congressional Research Center. the government as we move ahead and start Though foreign portfolio investors learning to co-exist with the coronavirus. have started making their way back to The next few weeks would be important ARINDAM MUKHERJEE the Indian markets turning net buyers and will clear the air on how the economy [email protected] after selling heavily in March, it will take performs amid these difficult times. 6 Outlook Money June 2020 www.outlookmoney.com Talk Back Time To Upgrade Risk Appetite The article on EDITOR disciplined asset Arindam Mukherjee allocation and long term EQUITIES AND MARKETS EDITOR investment is absolutely Yagnesh Kansara SENIOR ASSISTANT EDITORS a must read according Aparajita Gupta, to me. Amid the crisis, Anagh Pal people are befuddled SPECIAL CORRESPONDENTS regarding finance, and Himali Patel, Vishav such guidance in the PRINCIPAL CORRESPONDENT financial world is highly Nirmala Konjengbam appreciated. SENIOR CORRESPONDENT Soumyabrata Banerjee, Kolkata Dipen Pradhan NEWS DESK COPY EDITOR Jobs Are At Risk But All Is Not Lost Sudeshna Banerjee SENIOR SUB EDITOR The COVID-19 outbreak Sampurna Majumder is giving sleepless nights TRAINEE SUB EDITOR to all the employees. As Indrishka Bose we all know, the experts WEB CORRESPONDENT are predicting a huge Rajat Mishra percentage of job loss and DIGITAL TEAM Amit Mishra, Sneha Santra salary cuts worldwide. I ART found this article highly Praveen Kumar. G, Vinay Dominic (Senior Designers) important as it is giving us Girish Chand (DTP Operator) a wider picture of its impact PHOTO EDITOR Bhupinder Singh on every sector. It also TECH TEAM guides the freshers and mid level employees separately on how they Raman Awasthi, Suraj Wadhwa can polish their skill set to survive the battle. Susheel Malhotra, Mumbai Business Office CHIEF EXECUTIVE OFFICER Indranil Roy PUBLISHER Tomorrow Is Going To Be Yet Another Day Sanchita Tyagi Rawat ASSISTANT VICE PRESIDENT This story has been Tushar Kanti Ghosh brilliantly woven, talking about the base Circulation & Subscriptions Anindya Banerjee, of startups in our Gagan Kohli, Vinod Kumar (North) country that has been G Ramesh (South), Arun Kumar Jha (East) Shekhar Suvarna jolted because of the sudden wave.