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Wealth Management

Wealth Management is the art of allocating various assets of an investor into a judicious mix to suit his current and future requirements considering various, personal, micro and macroeconomics factors. 

In the personal finance book Rich Dad, Poor Dad, Robert Kiyosaki writes “Its not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.

This line articulates perfectly the essence of Wealth Management. It identifies three facets to Wealth Management:

  • Saving
  • Investing
  • Inter-Generational Transfer

It’s not enough to just create wealth. The more important part is keeping it, saving it and letting your wealth grow by investing it. However, that just covers the first two points i.e. Saving and Investing. The third thing that Kiyosaki mentions is how many generations you keep it for. A study in Italy found that the richest families in the 21st Century are primarily the same as the richest families in the 16th Century. Five Hundred years, 30 Generations of people inheriting wealth, maintaining it and adding to it. The main reason for this is education. Hence, wealth management doesn’t end at investing. There is another step to it, educating and guiding the next generation.

Financial Planning

Benjamin Franklin once wrote that “By failing to prepare, we are preparing to fail”.

The importance of planning for the future cannot be understated. However, making plans first requires identification of goals. Financial Planning is not effective without first identifying objectives, whether short or long term.

At Pramada we assist you in identifying your objectives and plan your finances accordingly. Diverse people have different objectives, and different objectives require varied approaches. We customize your portfolio to suit your needs and make a realistic plan for you to achieve your objectives. 

National Pension System (NPS)

What is NPS?
National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life 

Under the NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated professional fund managers in to the diversified portfolios comprising of government bonds, bills, corporate debentures and shares. These contributions grow and accumulate over the years, depending on the returns earned on the investment made.

What are the advantages in joining NPS?

A safe retirement fund
Introduced by the Government of India and regulated by the Pension Fund Regulatory & Development Authority (PFRDA).

NPS offers a range of investment options and choice of Pension Fund Manager (PFMs) for planning the growth of your investments in a reasonable manner and see your money grow. Individuals can switch over from one investment option to another or from one fund manager to another subject to conditions.

Opening an account with NPS provides a Permanent Retirement Account Number (PRAN), which is a unique number and it remains with the subscriber throughout his lifetime.

NPS provides seamless portability across jobs and across locations, unlike all current pension plans, including that of the EPFO. It would provide hassle-free arrangement for the individual subscribers.

Who can Join NPS?

  • Citizen of India; Resident or Non-Resident
  • Salaried or Self Employed
  • Age between 18-60 years, as on date of joining

Tax benefits of NPS

Tax benefits for Individuals (All Citizen Model)

Self employed individual is eligible for tax deduction of up to 10% of Gross Income under section 80CCD (1) of Income Tax Act, 1961 within Rs.1.5 Lacs limit under section 80CCE

Additional investment of Rs.50,000 will be eligible for tax deduction under section 80CCD (1B) of Income Tax Act, 1961. This is over and above of Rs. 1.5 lacs limit under section 80CCE

Tax benefits for Salaried Individuals (Corporate Model)

Contribution made by Employee
Salaried individual is eligible for tax deduction of up to 10% of Salary (Basic + Dearness Allowance) under section 80CCD (1) of Income Tax Act, 1961 within Rs.1.5 Lacs limit under section 80CCE

Additional investment of Rs.50,000 will be eligible for tax deduction under section 80CCD (1B) of Income Tax Act, 1961. This is over and above of Rs. 1.5 lacs limit under section 80CCE

Contribution made by Employer
Employer contribution to the NPS scheme on behalf of employee, the employee would also be allowed deduction u/s 80CCD (2) to the extent of 10% of Salary (Basic + Dearness Allowance).

There is no upper cap in terms of absolute value in case of section 80CCD (2)

Tax benefits for Corporate
Contribution made by the Corporate towards NPS account of Employee is eligible for tax deductions under section 36 (iv) of Income Tax Act, 1961


  • What is Digital Signature?
    A digital signature is an electronic form of a signature that can be used to authenticate the identity of the sender of a message. It ensures that the original content is unchanged while in transit. Digital signatures cannot be copied by someone else. It ensures that the original signed message arrived means that the sender cannot disclaim it later. 
  • What is a Digital Signature Certificate (DSC)?
    Digital Signature Certificates (DSC) is the electronic format of physical certificate like a driving License, passport etc. All Certificates serve a certain purpose; for example, a Passport identifies someone as a citizen of that country in same manner a Digital Signature Certificate can be presented electronically to prove your identity, to sign certain documents digitally.
  • Why do I need a Digital Signature Certificate (DSC)?
    A Digital Signature Certificate (DSC) validates your identity electronically. DSC provides you with a high level of security for your online transactions. You can use certificates to sign / encrypt information such that only the intended recipient can read it. You can digitally sign information to assure the recipient that it has not been changed in transit, and also verify your identity as the sender of the message. You can use Digital Signatures for the following:
    1. For sending and receiving digitally signed and encrypted emails.
    2. For carrying out secure web-based transactions or to identify other participants of web-based transactions.
    3. In e-Tendering, e-Procurement, MCA, Income Tax and also in many other applications.
  • How many types of Signature are there?
    There are 3 types of Digital Signature Certificates
    Class-1, Class-2,Class-3. Each has its own level of security and is meant for a particular category of professional and or sector of industry.


Class I

Class II

Class III

Secure email

Secure email, eFiling ROC & IT,
Specified eTenders, Document Signing

Secure email, eTenders, Secure
Authentication, Documents Signing

*  What is a difference between Digital Signature and Digital Signature certificate?
A digital signature is a tool to sign an electronic document whereas a Digital Certificate is a computer based record which

• Identifies the Certifying Authority issuing it.
• Has the name or I the identity of its subscriber.
• Contains the subscribers public key.
• Is digitally signed by the Certifying Authority issuing it.
• Is valid for either one year or two years.