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Telegraph
24-07-2025
- Politics
- Telegraph
Why has the Royal Navy taken over a civilian support ship? The answer won't cheer you up
Could the RN take back the amphibious mission and the minehunting motherships, leaving the RFA to run the tankers and support ships? This seems like a natural division of labour but would need firm leadership to force it through and even then the RN is short of people too. At least that problem is not as severe as it is for the RFA. The recent Strategic Defence Review mentions some of this but offers no detail – especially on money. The Investment Plan, due in the Autumn, will have some serious questions to answer here, as with everything all across Defence. The other even broader question is to what level should the Stirling Castle model of simply putting combat equipment on affordable merchant service hulls be used. Here the answer is divided between traditionalists and realists. The traditionalist view is that a warship should be a purpose-built thoroughbred, sleek, as fast as possible, bristling with weapons and sensors and made to exacting standards in order to be survivable in war. There are others of my acquaintance who would suggest that (for example) three Merlin anti-submarine helicopters on an ex-merchant hull would fight submarines at least as well as a single Merlin on a frigate. They'd suggest that radar drones or helicopters would find enemy surface units or aircraft much further away than a destroyer's radar can, being up in the air with hugely greater line of sight. They'd point out that destroyer weapons are already supplied in containerised forms suitable for bolting on to any hull. These people point out that a dedicated warship's high top speed – typically achieved using expensive gas turbines – is usually irrelevant as the thirsty gassers get through fuel very quickly at speed. A warship cannot actually travel over any serious distance any faster than its accompanying auxiliary tanker. When high speed is called for in combat, aircraft or missiles are what count: a frigate's primary means of attacking submarines is, after all, its helicopter. But I'm a former frigate captain and a specialist in the use of destroyers, and I'd rather have frigates and destroyers. There is a reason frigates, destroyers, aircraft carriers, nuclear submarines etc have remained largely unchanged in recent decades – they work. But I would freely admit that an insistence on exquisite, fast, heavily equipped specialist warships has got us to a terrible place in terms of capabilities and numbers. I do wonder how we punch our way out of the navy-wide hole we are currently in when there is no more serious money coming. I do ask how we achieve the mass that is missing and uncrewed advancement that we so obviously need? Before long every platform starts looking like a Stirling Castle -type purchase, or container ships with drones the way the Iranians are doing it, or uncrewed surface weapons and expensive proper warships are consigned to the military history bin. As ever, the answer is probably somewhere in the middle, but this is a balance that is hard to strike when financial conditions constantly force you to make decisions because you have to, not because you should. In the meantime, it's a safe bet that the practice of converting unusual ships for RN use is going to increase. So let's use the transfer of Stirling Castle to the Royal Navy as a test bed to become better at it.
News18
17-07-2025
- Business
- News18
Post Office Recurring Deposit (RD) Scheme: Earn Rs 35 Lakh In Just 5 Years
Do you want to invest your money safely and are looking for a simple, reliable savings plan? Then the Post Office Recurring Deposit (RD) Scheme could be an ideal option for you. Not only is it a secure way to grow your money, but it also encourages the habit of saving regularly. Much like a Systematic Investment Plan (SIP), this scheme allows you to deposit a fixed amount every month. The best part? There's no market risk involved. With a fixed interest rate and a five-year tenure, it provides peace of mind for investors. (News18 Telugu) The Post Office RD is backed by the Government of India, making it one of the most secure small savings options available. You simply need to invest a small fixed amount each month. After five years, you will receive your complete investment along with the accrued interest. Since the scheme is not affected by market fluctuations, it's well-suited for those looking for guaranteed returns. Over time, you can build a substantial corpus without any stress. (News18 Telugu) 3/7 You can start investing with as little as Rs 100 per month, and there's no upper limit, which makes the scheme accessible for all income groups. Even children aged 10 or above can open an RD account, provided their parents or guardians assist them. Once the minor turns 18, their KYC documents must be updated. Managing the account is also hassle-free, it can be done easily through mobile banking or e-banking. (News18 Telugu) Opening a Post Office RD account is a straightforward process, though there are a few guidelines to follow. The first instalment must be deposited at the time of account opening. If the account is opened before the 16th of the month, all future installments must be deposited by the 15th of every month. If opened after the 16th, the due date for future deposits falls between the 16th and the last working day of the month. (News18 Telugu) Let's understand the returns with a simple example. If you invest Rs 50,000 every month for five years, your total investment will amount to Rs 30 lakh. With a fixed annual interest rate of 6.7%, the interest earned over this period would be approximately Rs 5.68 lakh. After deducting TDS, your maturity amount would be around Rs 35.68 lakh. That's a significant gain in just five years, and all without market-related risks. (News18 Telugu) Another advantage of the Post Office RD scheme is the availability of a loan facility. After completing 12 monthly installments, you become eligible to borrow up to 50% of the total amount you've deposited. You can repay the loan either in one lump sum or in monthly installments. If the loan remains unpaid, the outstanding amount will be adjusted against your maturity value when the scheme ends. (News18 Telugu) In summary, the Post Office RD is a great option for anyone looking to grow their savings safely, whether you're new to investing or simply seeking guaranteed returns. With minimal monthly deposits, no market volatility, and government backing, it remains one of the most trusted savings plans in India. (News18 Telugu)
Hans India
17-07-2025
- Business
- Hans India
SIP vs RD: Which is Better for Building Wealth?
When planning to save consistently, two common choices are Systematic Investment Plans (SIPs) in mutual funds and Recurring Deposits (RDs) offered by banks or post offices. While both promote regular savings, they differ in terms of return potential, risk level, and taxation. Knowing how each option works can help you choose the one that best fits your financial goals and risk appetite. Key Takeaways • SIPs invest in mutual fund schemes and are subject to market movements, whereas RDs offer fixed interest returns provided by banks or post offices. • SIPs have the potential for higher long term returns but come with market related risks. • RDs are generally low risk and suitable for short term goals, though the returns may be lower compared to market linked investments. • Returns from SIPs are taxed as capital gains, while RD interest is taxable as income under your applicable tax slab. • Using both SIPs and RDs together can help balance growth potential and capital safety in your overall savings plan. How Do SIPs and RDs Work? Investment Type • SIP (Systematic Investment Plan): Market-linked investment via mutual funds. • RD (Recurring Deposit): Fixed-income product with guaranteed returns. Returns • SIP: Depends on mutual fund performance, potential for higher long-term gains. • RD: Offers fixed interest rate determined by the bank. Compounding • SIP: Linked to fund performance; compounding varies based on market growth. • RD: Compounded quarterly by banks. Taxation • SIP: Capital gains tax applies depending on fund type and holding period. • RD: Interest is added to income and taxed as per the investor's income slab. Suitability • SIP: Ideal for long-term wealth creation and goal-based investing. • RD: Better suited for short-term savings with capital safety. Minimum Investment • SIP: As low as ₹100/month (varies by AMC and fund type). • RD: Usually starts from ₹500/month, depending on the bank. Comparing Long Term Returns: SIP vs RD Systematic Investment Plans ( SIP ), particularly in equity mutual funds, have the potential to generate better returns over longer periods such as 5 to 10 years. This is due to the benefits of compounding and rupee cost averaging. However, since mutual funds are market linked, returns are not guaranteed and may vary. Recurring Deposits (RDs), offered by banks and post offices, provide fixed and assured interest. They are more suitable for short term financial needs, but their returns may not keep pace with inflation over longer durations. SIPs (Mutual Funds): • For equity mutual funds, Long Term Capital Gains (LTCG) tax is applicable at 12.5% (for investments held over 12 months), with an exemption of up to ₹1.25 lakh per year. • Short Term Capital Gains (STCG) on equity funds (if sold within 12 months) are taxed at 20%. • For debt funds, both short and long term capital gains are taxed as per your income tax slab, with no indexation benefits. Recurring Deposits (RDs): • Interest earned on RDs is considered Income from Other Sources and is taxed as per your applicable income tax slab rate. • TDS (Tax Deducted at Source) may also apply if interest exceeds the prescribed limit. How Compounding Works in SIPs vs RDs Recurring Deposits (RDs): Interest in RDs is compounded quarterly, offering steady and predictable growth. You know the maturity amount in advance, which makes RDs suitable for short term or low risk savings goals. Systematic Investment Plans (SIPs): In SIPs, returns (if any) are reinvested automatically. Over the long term, this compounding effect combined with market participation can potentially accelerate wealth creation. However, SIP returns are market linked and not guaranteed, so they may fluctuate based on fund performance. Managing Risk: Capital Safety vs Market Exposure • RDs protect your capital and offer assured returns. • SIPs involve market risk but offer a chance to earn inflation beating returns. If you are risk averse or saving for short term goals, RDs may be better. If you can stay invested for 3+ years, SIPs can work better for wealth creation. Balanced Strategy: Using SIP and RD Together Yes, combining a Systematic Investment Plan (SIP) and a Recurring Deposit (RD) can help you balance safety and long term growth: • Recurring Deposits (RDs) can be used for short term goals or emergency funds, as they offer fixed and predictable returns with low risk. • Systematic Investment Plans (SIPs) in mutual funds are suitable for long term goals like retirement, home purchase, or children's education, as they have the potential to generate higher returns over time, though they are subject to market risks. Conclusion Systematic Investment Plans (SIPs) and Recurring Deposits (RDs) cater to different financial needs. SIPs in mutual funds may help you build long term wealth through market participation, making them suitable for goals like retirement or home purchase though returns are market linked and not guaranteed. RDs, with their fixed and predictable returns, are ideal for short term needs and risk averse investors. You do not have to choose one over the other. A combination of both can create a balanced strategy offering capital safety for near term goals and growth potential for the future. Always align your investment choice with your financial goals, time horizon, and risk appetite. FAQs Q1. Which is better: SIP or RD? SIP is better for long term wealth creation. RD is better for capital safety and short term goals. Q2. Are SIP returns guaranteed? No, SIPs are market linked and returns depend on fund performance. Q3. Do RDs carry any risk? RDs are considered low risk with guaranteed returns. However, the returns may not beat inflation over the long term. Q4. Is SIP safe for beginners? SIPs can be a suitable option for beginners, especially when investing in mutual funds with lower volatility such as large cap or hybrid funds. While mutual fund investments are subject to market risks, starting with a small amount and staying invested for the long term can help manage risk and build investing discipline. Always choose funds that match your risk profile and financial goals. Q5. Can I invest in both SIP and RD at the same time? Yes. Many investors use RDs for short term needs and SIPs for long term wealth creation.
Time of India
14-07-2025
- Business
- Time of India
Nearly 112 lakh SIPs closed in 2025: Should you worry about the negative net SIP trend?
Live Events What is the SIP stoppage ratio? The calendar year 2025 has seen a surprising development in the mutual fund space with around 112 lakh net SIPs (Systematic Investment Plans) closed so far, which raises a question whether the investors should worry about the negative net SIP trend to which a market expert says that the decline in net new SIP registrations this year largely reflects cautious investor sentiment amid global volatility.'The decline in net new SIP registrations this year largely reflects cautious investor sentiment amid global volatility. Events like the tariff changes announced by Trump earlier this year triggered some nervousness, leading to the liquidation of SIPs, particularly around April. However, this should not be a major concern, as we are already seeing signs of retail investors returning with renewed confidence as markets stabilise,' Shruti Jain, Chief Strategy Officer, Arihant Capital Markets shared with the first six months of the current calendar year, only two months have witnessed net new SIPs registered whereas four months saw more of SIP closure . According to a report by Nomura, the net new SIPs registered in January were negative 5 lakh which indicates more of SIPs February, March and April, around 10 lakh, 11 lakh, and nearly 116 lakh SIPs were closed, the report Investment Plan is always considered a disciplined and steady route for building wealth over time. With regular monthly contributions, SIPs help investors navigate market ups and downs through rupee cost averaging. However, the slowdown in SIP additions points to investors reacting to high valuations and bouts of volatility, Jain more SIPs closed in the current calendar year so far, Jain firmly said that some may have exited due to subpar returns over the past year. 'However, for long-term investors, this is precisely why SIPs are recommended—to navigate volatility through disciplined investing. It is advisable not to stop SIPs based on short-term market movements,' she mutual fund SIP stoppage ratio was recorded at 77.77% in June from 72.12% in May and 58.68% in June 2024 indicating that though more mutual fund SIPs were registered but the SIPs either stopped or their existing tenures ended have also increased, according to the data by Association of Mutual Funds in India (AMFI).In April, the stoppage ratio was 297% as the number of SIPs stopped or discontinued were 136.99 lakh whereas the number of new SIPs registered in the same period stood at 46.01 January, February, and March, the SIP stoppage ratio was recorded at 109%, 122%, 128% SIP stoppage ratio is the number of discontinued SIPs compared to the number of new registered SIPs. If this ratio crosses 100% then it indicates that more mutual fund SIPs are being stopped than the ones one must keep in mind that stoppage ratio also includes those SIPs that have expired. Besides, investors may have simply switched from one SIP to another as part of their portfolio the SIP stoppage ratio was over 100% for four consecutive months, is it important for investors to monitor SIP stoppage ratio or registration trend when making long-term investment decisions to which Jain says that while SIP trends provide insight into overall retail participation and sentiment, they shouldn't drive long-term investment phases come and go, but consistent investing through SIPs ensures disciplined wealth creation over time therefore it's best to view such trends as temporary reactions to market events rather than signals to alter a long-term plan, Jain recommends.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Fashion Value Chain
01-07-2025
- Business
- Fashion Value Chain
Avoiding Risk vs Preparing for it: How Bajaj Finserv Small Cap Fund Can Help
When it comes to investing in small cap funds, the fear of risk often dissuades investors. However, it is important to consider that taking a more structured approach to investing can help in mitigating market risks. The Bajaj Finserv Small Cap Fund is designed with this philosophy in mind. It comprises strategic insights and disciplined execution to help investors explore more opportunities in the small cap market. Invest in Bajaj Finserv Small Cap Fund NFO Understanding small caps Small cap funds consist of companies that typically rank 251st and beyond in market capitalization as per SEBI's guidelines. These businesses are often in their novice stages, operating in emerging sectors, this means that they have a potential to scale rapidly. While this can come with a higher volatility, it can also potentially create space for long-term value discovery. What differentiates small caps from others is their potential to bounce back from market fluctuations. Hence, through the suitable selection process, small caps can potentially help grow wealth in the long run, making them a viable part of a broader mutual fund portfolio. Risk isn't the enemy It is essential to understand and manage risk when investing in small cap funds instead of fearing it. Unlike large cap companies that can already be priced efficiently in the market, small caps can be mispriced or overlooked presenting an opportunity for a potential entry point into the market. Instead of trying to avoid risks, you can take a structured approach which can help you mitigate market volatility. This includes diversifying across sectors and tracking company fundamentals while being mindful of governance quality. The Bajaj Finserv Small Cap Fund approach The Bajaj Finserv Small Cap Fund has a 3-in-1 advantage of Growth, Quality and Value. The fund's framework seeks out companies that are scalable, fundamentally strong and trading at prices lower than their intrinsic value. The fund is influenced by Bajaj Finserv AMC's proprietary INQUBE philosophy. It is managed by an experienced team that applies both top-down trends and bottom-up stock analysis. It focuses on five key pillars: Quality : Companies with sound fundamentals and consistent performance Growth : Businesses with long-term scalability potential Undervalued opportunities : Stocks that may be temporarily mispriced Leadership : Dominant players in niche or emerging segments Governance: Transparent, well-managed companies with aligned promoter interests By applying these filters, the Bajaj Finserv Small Cap Fund aims to build a balanced portfolio that can help manage risk while capturing growth potential. Planning matters more than timing While timing the market can be a good way to manage your investment, it can be a challenging task to keep up with. A more practical way to do this is to invest through a Systematic Investment Plan, which allows you to allocate funds regularly. This can help you potentially reduce the impact of market volatility through rupee cost averaging and promote consistency and discipline. You can also use tools like an SWP calculator to plan out your exit strategy. Through a Systematic Withdrawal Plan, you can align your redemptions to your life goals and cash flow needs. Conclusion Investing in the small cap sector requires both preparation and perspective. The Bajaj Finserv Small Cap Fund offers a thoughtfully designed approach that brings together an ambition to grow while mitigating market risks. For investors who wish to build a long-term portfolio, small cap can offer a suitable opportunity to explore investments with the suitable strategy in place. How to invest You can invest in the Bajaj Finserv Small Cap Fund online through the official Bajaj Finserv AMC website or via authorised mutual fund distributors. Investments can be made through director regular plans. To learn more about the investment process, visit Units will be available at a offer price of Rs. 10 per unit during the NFO period (June 27, 2025 – July 11, 2025). Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
