NOVEMBER 2022 | VOL. 18
THE
ORANGE
BOOK
Leverage your FINANCIAL QUOTIENT
Starting Small for their Big Future
Teaching kids the ABC of Money
The earlier we teach kids good money habits, the better they understand the value of money.
Below are a few ideas on how to instill good money habits in kids.
Kids aged 5 – 8 years
Identifying and counting money
Introduce them to different
currencies and help them
identify, sort and count money.
Earning money
Reward work with money
like getting good grades,
doing chores etc.
Saving money
Get them a clear jar instead of a piggy
bank to keep their money. This way
they can see their money grow which
helps reinforce the benefit of saving.
Buying experience
Help them take money to the
store, and hand over the
money and buy something.
Opportunity cost
Teach them to choose. E.g.: If they
buy these shoes, they won’t be able
to buy those skates. This helps
restrict impulse buying.
NOVEMBER 2022 | VOL.18
Kids aged 9 – 12 years
Take them to a bank
Show them what a Bank is
and how it works. Open
an account for them.
Goal based savings
Help them set different goals
for which they would need
money and teach them to save
accordingly.
OPEN A YOUNG STAR ACCOUNT
Importance of giving
This is the right time to
teach kids to help those who
are less privileged than we
are. Let them choose the
cause they want to support
and make them contribute in
their own way.
NOVEMBER 2022 | VOL.18
Teenagers (13-18 years)
Make them manage their Bank Account:
Get them to manage their own Bank
account through Mobile Banking or even
visiting the Branch.
DOWNLOAD IMOBILE PAY
Introduce them to investing: Introduce
them to the basics of investing when they
turn 18. Open a demat account for them
and help them get started.
OPEN A DEMAT ACCOUNT
START A SIP*
Get them to contribute towards their
higher education by looking for
scholarships.
Help them figure out how to make money:
Instill an entrepreneurial spirit in your kids
by teaching them how to make money. For
example: Starting a side hustle esp. if they
are skilled at something, this will help them
learn important financial skills.
*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject
to market risk. Read all scheme related documents carefully. T&C Apply.
NOVEMBER 2022 | VOL.18
Financial Planning for your child
Meet Veer’s Parents
They live in Mumbai
& want to plan their finances for 2 year old Veer.
Their priorities:
`
A Contingency fund and
emergency guide
Education planning
NOVEMBER 2022 | VOL.18
Let us help them out!
Below is a rough estimate of the cumulative expenses for Veer at every age.
0-2 years
`8 - 10 lakh
`3.5 - 4.5 lakh
3-5 years
Major expense areas
Major expense areas
Healthcare
Toys
Pre-school
Healthcare
Food
Day care
Food
Day care
Child functions/
parties
Clothes
Toys
Clothes and Diapers
6-12 years
`30 - 40 lakh
Major expense areas
Food
Clothes
Education
Tuition
Toys
Nanny
Birthday
parties
18-24 years
`20 - 25 lakh
13-17 years
(domestic higher education)
Major expense areas
education)
Major expense areas
Education
Gadgets
Food
Transport
Clothes
Extracurricular
activities
Coaching
classes
– 3 crore
`45 - 60 lakh `1.5
(international higher
Grad and Post
Grad Education
Gadgets
Travel
Hostel
and other
expenses
Coaching Classes
2
College Applications
The expenses mentioned above are indicative for an affluent double income family living in a metro
NOVEMBER 2022 | VOL.18
So, now that they know the approximate expense at each stage for Veer, here are some tips
that will help them plan their finances better!
Tips for planning finances for your child
Lay down your goals, both short term and long term
Account for inflation
Start investing early to benefit from the power of compounding
START SIP*
Get insurance for you and your family
GET HEALTH INSURANCE
ADV no: ADV/15972 T&C apply.
Build a contingency fund of 6-12 months
OPEN A FD
Consolidate all your financial information in one place
UPDATE ILOCKER
Appoint a nominee
UPDATE NOMINEE
Review your investment plan periodically
Inculcate good money habits in your child
*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject
to market risk. Read all scheme related documents carefully. T&C Apply.
NOVEMBER 2022 | VOL.18
7 things to do when your
child turns 18
1
Apply for IDs like Passport, Aadhaar and
a Driving licence. If documents are already
available as a minor, update them with
latest photograph and signatures
2
Apply for a PAN and get
it updated in bank records
3
Convert the minor savings
account to a regular
Savings Account by
submitting a signed request,
latest photo of your child
and KYC documents
5
Update the PAN
details for your child’s
PPF Account
7
Activate Net Banking,
e-wallet and Mobile
Banking
4
Update your bank
records with revised
signatures so that
your child can
independently sign and
operate the account
6
Apply for a personalized
Debit Card for carrying
out ATM and digital
transactions. Additionally,
you can also get an add-on
Credit Card for your child
and a Demat Account if
you want them to start
investing
NOVEMBER 2022 | VOL.18
Demystifying Mutual Funds –
Investment Strategies
How does an Equity Mutual Fund* work?
Investment Strategy: Most fund houses follow a specific investment strategy while
selecting stocks for Equity Mutual Funds. Some of the key strategies include the below:
Top-down Strategy
Top-Down Approach
Based on macroeconomic factors, a sector is
chosen and the best stocks from that sector
are selected.
For example, if fund managers anticipate that
the economy will grow sharply, they might
purchase stocks in particular economic
sectors they believe will do well.
If the managers expect the economy to slump,
it may spur them to sell stocks or purchase
shares in defensive industries such as health
care and consumer staples.
Economy
Sectors
Company
Bottom-up Strategy
Company
Sectors
Economy
Bottom-Up Approach
A stock is selected post thorough research, and
irrespective of the sector.
In the Bottom-up approach, fund managers
choose stocks based on the strength of an
individual company, regardless of what is
happening in the economy as a whole or the
sector in which that company lies.
A Bottom-up Fund manager can benefit from
an individual company and sometimes find
attractive investments, even in out-of-favor
industries. It may carry more risk than
top-down investing.
*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject
to market risk. Read all scheme related documents carefully. T&C Apply.
NOVEMBER 2022 | VOL.18
Growth Strategy
Investment Style
Growth
Blend
Value
Large
Medium
Capitalization
The fund invests in companies, which have a good track
record of profitability with growth and are likely to
grow in the future.
Growth investing is a style of investment strategy
Small
focused on capital appreciation.
Fund managers invest in companies that exhibit signs of above-average growth, even if
the share price appears expensive in terms of metrics such as price-to-earnings or
price-to-book ratios.
Value Strategy
Investment Style
Growth
Blend
Value
Large
Medium
They invest in stocks with high intrinsic value
and a relatively lower market price, thereby
maintaining higher margin of safety.
Small
Capitalization
Fund managers invest in companies that have the
potential to grow exponentially in the future but are
presently available at discounted prices.
Many Fund Managers follow blend of both Value and Growth strategy.
Value investing is often contrasted with Growth Investing, which focuses on emerging
companies with high growth prospects.
The below chart shows the growth and value phases for the stock of a large consumer company.
PE
36
PE
31
26
Growth
21
16
Value
Jan-22
Jan-21
Jan-20
Jan-19
Jan-18
Jan-17
Jan-16
Jan-15
Jan-14
Jan-13
Jan-12
Jan-11
11
Time
Source: “This data has been derived and compiled from Morningstar, Value Research, Bloomberg, ET Money,
ICICI AMC, L&T MF, Nippon MF”
The material in this document is derived from sources ICICI Bank believes to be reliable but which have not been
independently verified. In preparing this document, ICICI Bank has relied upon the information available from
public sources and claims no ownership of the same. ICICI Bank makes no guarantee of the accuracy and
completeness of factual or analytical data and is not responsible for errors of transmission or reception and
hereby disclaim any liability with regard to the same.
NOVEMBER 2022 | VOL.18
Know your rights as a Bank customer!
As per the RBI, below are the five basic rights that you are entitled to, as Bank customers:
Right to Transparency,
Fair and Honest Dealing
Right to Fair Treatment
Right to be treated with
courtesy.
No discrimination against
and/or on grounds such
as gender, age, religion,
caste and physical ability.
Right to Privacy
Right to protection from all
kinds of communications,
electronic or otherwise,
which infringe upon privacy.
Right to the maintenance of
confidentiality of customers’
personal information (unless
specific consents granted to the financial
services provider or such information is
required to be provided under the law or
it is provided for a mandated business
purpose).
Right to be informed upfront
about likely mandated
business purposes.
Transparency (w.r.t. product’s price,
the associated risks, the T&Cs and the
responsibilities of the customer and
financial service provider) and ease of
understanding for contracts or
agreements.
Right to Suitability
Right to be offered
products that are
appropriate to the
needs of the customer
and based on an
assessment of the
customer’s financial
circumstances and
understanding
Right to Grievance
Redress & Compensation
Right to hold the financial
services provider accountable
for the products offered
(including third party products).
Right to access to a clear
and easy grievances
redressal process and policy
for compensating mistakes,
lapses in conduct, as well as
non-performance or delays
in performance. The policy
must lay out the rights and
duties of the customer when
such events occur.
NOVEMBER 2022 | VOL.18
Have a banking
complaint?
Here is what to do!
1. Lodge a complaint with the Bank
Phone
1800 1080
www
Mail
Online
www.icicibank.com
Level 1 : Customer Care
Level 2 : Head – Phone Banking
Level 3 : Principal Nodal Officer
iMobile Pay / InstaBIZ App
ICICI Phone Banking Center,
ICICI Bank Tower, 7th floor,
Survey no: 115/27, Plot no. 12,
Nanakramguda, Serilingampally,
Hyderabad – 500032
No satisfactory
resolution
in 30 days
2. Write to RBI Ombudsman
Mail
Centralised Receipt and
Processing Centre (CRPC),
Reserve Bank of India,
Central Vista, Sector 17,
Chandigarh – 160017
www
Website
https://cms.rbi.org.in
Phone
14448
NOVEMBER 2022 | VOL.18
No child’s play - Tips on
preventing banking frauds
Never disclose your personal details like
Credit Card number or UPI PIN to anyone.
Banks or other financial companies will
never ask for your username, password or
other bank details
Avoid using public Wi-Fi networks
for any kind of transactions
Do not trust an e-mail that asks
for your personal information
Do not open e-mails that
look suspicious
Always have strong and
unique passwords. Include a
combination of upper and
lower characters along with
numbers
Avoid downloading or
opening attachments
from unknown sources
Do not download apps
which are not used or
required
Always read communication
sent by banks or financial
institutions related to fraud
awareness
Restrict permission for
downloading any apps on
your mobile
If you receive a call or e-mail asking for your banking
details for KYC/Re-KYC or any other purpose, then
immediately visit the nearest branch or call your
Relationship Manager for assistance
KNOW MORE ABOUT SAFE BANKING
Bank : 1800 1080
National Cyber Crime Reporting Portal : 1930
NOVEMBER 2022 | VOL.18
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NOVEMBER 2022 | VOL.18