There was a time when the IT and the BPO industry flourished in the city and was an answer to the prayers of hundreds of yuppies who could now buy the latest gadgets, branded clothes, accessories and could hit any upscale restaurant.
They were the grasshoppers who sang all summer but when the recession came, it was time to take stock of the situation to save them for the ominous winter.
The generation of 20-somethings who had been branded as “reckless” and “flashy” with their money, are turning towards various saving schemes to safe guard their hard earned money. Whether in the form of mutual funds or life insurance or fixed or recurring deposits, they are all scrambling to secure their money.
“During the initial days of the recession, many of the employees had taken home loans and car loans. A chunk of their salary went towards payment of the premiums.
Therefore they were concentrating more on retaining their jobs and holding on to the remaining money,” said Shruti Agarwal, HR executive at an MNC. However, she adds that with the slow revival of the economy, MNC executives are scouting for suitable savings schemes available in the market.
These young professionals are investing in the low risk saving methods instead of putting their money on the fluctuating share market. As medical insurance is provided by most of the companies, it is life insurance that has become extremely popular among the working professionals.
“Most of my friends and colleagues have taken life insurance last year. However, after much research I invested in the mutual funds offered by Reliance as the returns were higher,” said Pallavi Nuwal, a 25-yearold software professional.
These adventurous 20-something who tasted the pleasure of money and success at a young age are turning towards their parents for financial help and guidance. “Last year my father forced me to open a recurring deposit account so that I save some money, and informed me that it was the most risk-free plan.
Next I am looking for life insurance or the various retirement plans,” said another professional, Payal Ganguly.
Not just the various savings plans, these professionals are looking at various options to avoid the tax deduction and retain more of their take home salary. “Generally tax deduction can be avoided by medical reimbursement, Leave Travel Allowance (LTA) which is once in two years and house loan premium on the principal amount,” said Shruthi.
Other than these options provided by the company there are people who are opting for national savings certificate (NSC) where the returns are at 8 per cent for duration of six years and monthly income schemes available at the General Post Office. The schemes might be different but this group of working professionals have taken the recession as a warning and are already preparing for the rainy days.
sohini@expressbuzz.com
