top of page

By:

C.S. Krishnamurthy

21 June 2025 at 2:15:51 pm

Save Smarter with Savings+

In many Indian households, money lies idle in savings accounts. It feels safe to see a good balance, but interest rates are low - about 2.5–3% a year. After tax and inflation, the real value of money falls. What seems secure today may not be enough tomorrow. Keeping too much in savings make the future goals harder to achieve. Across scheduled commercial banks, savings balances run into tens of lakh crore rupees, reflecting a deep habit of leaving cash where it works the least. Habit, not...

Save Smarter with Savings+

In many Indian households, money lies idle in savings accounts. It feels safe to see a good balance, but interest rates are low - about 2.5–3% a year. After tax and inflation, the real value of money falls. What seems secure today may not be enough tomorrow. Keeping too much in savings make the future goals harder to achieve. Across scheduled commercial banks, savings balances run into tens of lakh crore rupees, reflecting a deep habit of leaving cash where it works the least. Habit, not strategy, often decides where hard earned money rests. How professionals park money If you are a Chief Finance Officer (CFO), you are unlikely to leave large surpluses idle in a savings or current account. Instead, you use debt mutual fund options such as overnight, liquid and money market funds to keep cash accessible while seeking better risk adjusted returns. The same types of funds are available to individual investors, raising an obvious question: if India’s top CFOs rely on these vehicles, why should retail savers not consider them for at least a part of their own surplus? Savings and investments are often used interchangeably, yet the intent is different. Savings focus on safety and ready access, whereas investments aim to grow wealth; there is no reason why savings cannot be structured to do a bit of both. Bajaj FinServ Savings+ is designed as a bridge between the comfort of a savings account and the efficiency of short term debt funds. Surplus balances above a chosen threshold in a savings account can be channelled into selected debt funds of Bajaj Finserv Mutual Fund, typically a liquid or overnight fund. These funds invest in short-term, high-quality debt instruments and seek to deliver a return profile that may exceed a standard savings rate, though outcomes remain market linked. Experience the daily convenience like a savings account - high liquidity, quick access, and flexible redemption. Up to Rs. 50,000 is processed within minutes, while larger withdrawals follow within two days as per scheme terms. As Ganesh Mohan, Managing Director of Bajaj Finserv Mutual Fund, puts it, the idea is to “teach your money to be on its toes instead of sitting on the sofa,” so that cash is alert and active while risk remains conservative. Inside the Savings+ structure The underlying portfolios of the liquid and overnight schemes used in such a structure typically emphasise short duration and strong credit quality. In many cases, long term ratings are predominantly in the AAA category, with instruments often maturing within 91 days, aligning with the need for stability and rapid access. Investors are advised to stay for at least seven days in a liquid fund to avoid exit load. This combination gives savers the potential to earn more than basic savings rates while continuing to enjoy high liquidity. As Ganesh Mohan notes, thoughtfully designed solutions in this space can change the way retail investors view their debt allocations, opening up a largely untapped category of disciplined, yet accessible, fixed income investing. Who Savings+ may suit A Savings+ type solution can be relevant for conservative savers who want low volatility but seek a modest step up from savings account returns on surplus balances. It may also appeal to new mutual fund investors looking for a straightforward, relatively low risk way to begin, with emphasis on capital preservation and quick access to money. Households that maintain sizeable contingency funds or near-term expense pools in savings accounts, and are comfortable using digital platforms, might also find this structure useful. However, it is not a substitute for long term equity investing, retirement planning or growth-oriented strategies, as there are several schemes to address different goals. In India, more than 50 crore people are estimated to have bank accounts, which almost always imply a savings or current account. In contrast, unique mutual fund investors number only four crore in a population of about 140 crore, indicating that the mutual fund segment is still a fraction of the banking universe. If even a small portion of the balances lying idle in savings accounts were thoughtfully redirected into suitable debt funds, it could significantly expand both investor participation and the effectiveness of household money management. Bajaj Finserv Savings+ is one illustration of this concept; other asset management companies may offer similar structures with differing features, costs and risk profiles. Consulting a qualified financial adviser is advised before taking an investment decision. Disclaimer: Mutual fund investments are subject to market risks, and scheme related documents should be read carefully before investing. (The writer is a retired Bengaluru-based banker. Views personal.)

Bad Roads, Ugly Politics


ree

The pathetic state of roads in Mumbai city as well as its suburbs has made daily commute a dangerous affair. The residents are miffed with the BMC over its lackadaisical attitude. Mumbaikars tweet photos, post videos to grab attention, but everything is in vain. Who cares for the common people. Backbreaking journeys have become part and parcel of life. Political leaders are busy mud-slinging.


This year the monsoon took a break after almost four and half months. During this time some of the roads virtually became non commutable. It may be recalled that the Chief Minister Eknath Shinde first announced to make Mumbai roads pothole free.


Its almost two years now the BMC has concretised only 9 percent of roads it planned to concretise. This decision was taken when it came to light that due to the properties of bitumen in asphalt roads, potholes are a regular occurrence due to contact with water during monsoons.


Hence, to solve the problem of potholes, the corporation has adopted a policy of cement concreting of 6-meter-wide roads in phases. The decision was taken but the dilly-dallying affair made things more difficult.


Mumbai’s traffic does put a lot of strain on roads which is not the case in the other developed countries. Second most important aspect is concretisation of roads is done partly and in phases.


The worst problem which is faced is repeated digging for cables and drainage, which weakens the roads. Above all corruption in BMC makes matters worse as a result everything comes to grinding halt.


According to experts, repairing potholes is a reaction with symptomatic treatment. By and large we are dispensing superficial treatment without addressing the root cause. The long-term solution will be to have roads with no potholes but what we need is the means and technology to achieve this. But for this political will is necessary which we lack on every step.


Mumbaikar’s are convience that corruption in the municipal corporation is the main reason. Contractors have had a monopoly over the last 20 years and this is the reason why reputed companies never come ahead for these projects.


As a result, in the name of attendance and repair, the BMC does shoddy work. Crores are spent but the end result is nothing. The BMC is not paying attention to the crust. If the crust is weak, potholes will see an increase. Without any thought or technical know-how, potholes are filled with cold mix.


This is the reason why the city and suburbs continue to have craters on the roads.


Craters, a serious threat to the safety and security of people. Mumbaikars fade up from their repeated visits to orthopedic surgeons.


They are in a mood to teach a proper lesson to those who were at the helm of the affairs.

Comments

bottom of page