Latest news with #Sadagopan
The Hindu
02-06-2025
- Business
- The Hindu
Southern Railway to study feasibility of lengthening platforms at MRTS stations to operate 12-car EMUs
The Southern Railway plans to study the feasibility of lengthening platforms at railway stations on the Mass Rapid Transit System (MRTS) section, between Chennai Beach and Velachery, to accommodate 12-car electrical multiple units (EMUs) for future operational consistency. This comes in the wake of Southern Railway's ongoing plan to convert all suburban trains into 12-car EMUs, since some stations on the MRTS section are only able to accommodate nine-car ones. A senior official of the Chennai division of Southern Railway pointed out that of the four sections, 12-car EMUs were only operated on the Beach-Chengalpattu via Tambaram route previously. Platforms were lengthened at all the railway stations on the west and north sections to accommodate these EMUs. At present, nine-car EMUs are only run on the MRTS section. The operation of 12-car EMUs affords Southern Railway the flexibility to operate trains across multiple sections, helping improve efficiency and connectivity. On the MRTS section, eight of the 17 stations — Fort, Park, Chintadripet, Chepauk, Thiruvallikeni, Lighthouse, Mundagakanni Amman Koil, and Thirumayilai — have the platform length to accommodate nine-car EMUs. The official said that since the MRTS section was built as an elevated corridor over the Buckingham Canal, land acquisition would not be necessary to increase platform length, though the State government needed to give the sanction. The MRTS section is being extended to the St. Thomas Mount railway station to cater to commuter needs and for operational uniformity to resume cross-sectoral services (between Arakkonam, Tiruvallur, and Gummidipoondi and Velachery) on the section. Consumer activist T. Sadagopan, a resident of Avadi, said the stoppage of cross-sectoral services from Tiruvallur and Avadi to Velachery had inconvenienced hundreds of people with workplaces in Thiruvanmiyur and Taramani. At present, they have to switch to the MRTS section after getting down at the Moore Market Complex station to reach their destinations. Even as Southern Railway plans to carry out a feasibility study for platform lengthening at MRTS stations, commuters and activists of Madipakkam, Adambakkam, and Nanganallur are irked over the delay in the completion of the MRTS Extension Project. They demanded that train shuttle services be operated till the Adambakkam railway station, which is one of two stations that were built between Velachery and St. Thomas Mount, the other being Ullagaram-Puzhithivakam. Social activist V. Rama Rao said that when the MRTS Project to Velachery was delayed, train services till Thiruvanmiyur were operated on a single track. He demanded that similar train services be operated to the Adambakkam railway station, with commuters changing trains at the Velachery MRTS station. These arrangements could help commuters temporarily, as the extension project was likely to be delayed further due to the Chennai Metro Rail track being built above the MRTS tracks.
Mint
01-05-2025
- Business
- Mint
Got a salary hike? Here's how a step-up SIP mutual fund strategy can help you save smarter
With salary appreciation letters being distributed, mutual fund distributors are suggesting individuals consider using a step-up systematic investment plan (SIP). This advanced SIP automatically enhances the SIP amount by a set percentage or value at every SIP anniversary. After every anniversary, you can save an additional 5-10-15% to ensure your savings increase in line with your income. You can also choose to increase the amount, such as ₹ 500, ₹ 1,000, or more, automatically without having to trigger an enhancement in the SIP amount. 'Step-up SIPs avoid the lethargy involved in converting salary increases lying idle in the bank account to investments. It ensures one saves 5-10% additional without any manual intervention, instead of increasing expenses in tandem with salary raises,' says Suresh Sadagopan, founder of Ladder7 Wealth Planners. The seamless approach of saving more each year helps investors avoid wasting time weighing the pros of increasing lifestyle expenses or managing within the same means. For example, imagine an investor saving ₹ 10,000 each month for 60 months under a normal SIP. She would have accumulated ₹ 6 lakh, which would grow to ₹ 7.74 lakh if one extrapolates using an estimated return of 10%. However, if she uses a 5% step-up every year, the accumulated amount increases to ₹ 6.63 lakh, which grows to ₹ 8.47 lakh in the same 60 months at the same 10% returns. 'We have observed that investors somehow manage the expenses when an elevated amount is automatically invested. Psychological aspect of managing within the means forces even the undisciplined to save for their goals that require a probably 5-7% additional SIP amount every year,' Sadagopan adds. While step-up SIPs offer benefits, some advisors caution about the long-term impact, especially when salary increases do not meet expectations or living expenses rise due to ageing parents and growing children. Healthcare costs are anticipated to rise 13% in 2025, per Aon's Global Medical Trend Rates Report 2025. Also, personal expenses double as a child crosses 5-year buckets, while school fees are rising at the rate of 18-20% annually in metros. Nevertheless, if you find this tool useful to ensure you do not fall out of the habit of saving and wish to use it for enhanced savings, exercise caution with the percentage or amount increase, especially if you approach investing the DIY way– just like 101.1 million SIPs accounts using the direct plan route (non-commission based online or through fintech). Note that once you set a higher SIP limit at each anniversary, you cannot reduce the SIP amount under the step-up SIP. 'Those with a 50,000 step-up SIP might start feeling the pinch in the fourth or fifth enhancement when the SIP amount increases to ₹ 65,000 per month,' says Sadagopan. In the third or fourth year of a step-up SIP, the accelerated SIP amount may be difficult to manage from a cash flow perspective. 'With DIY investors, managing the additional cash flow is a challenge, in case one forgets the SIP anniversary date, when the higher amount kicks in,' says Ajay Sehgal, founder and managing director of Allegiance Financial. If the balance is not maintained in the bank account according to the enhanced amount, SIP bounce charges of ₹ 350- ₹ 700 will be applicable. These charges could reduce mutual fund returns to the extent of penal charges. To avoid this, set reminders for your step-up SIP anniversary or use an app with built-in technology. If funds are scarce, you can pause or stop the SIP. 'To reduce the amount of the step-up SIP, one needs to close the existing SIP mandate and then apply for a fresh SIP mandate with the optimum amount of SIP instalment. However, the cancellation request should be sent seven business days prior to the day of the SIP date,' says Sehgal. Also, while starting a fresh SIP, remember to quote your existing folio number with a fund house to ensure you are able to trace all your units of a particular fund under the same folio, even if the SIP dates are different. Another disadvantage of step-up SIPs is that investors tend to ignore portfolio reviews and alter their investments based on the scheme's performance. While no charges are incurred in cancelling an SIP and restarting a fresh one, there is a way to ensure that you do not face the hassle of maintaining a higher cash flow. Instead of opting for an in-built step-up SIP, one can add an additional SIP based on the actual increase. This ensures you save the higher amount based on the scheme's performance, and you aren't taken by surprise. 'You can align the additional SIP based on the date of appraisals, your cash flow and the date that you would prefer,' says Sehgal. First Published: 1 May 2025, 12:32 PM IST
