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R P Yadav  | Answer  |Ask -

HR, Workspace Expert - Answered on Feb 20, 2024

R P Yadav is the founder, chairman and managing director of Genius Consultants Limited, a 30-year-old human resources solutions company.
Over the years, he has been the recipient of numerous awards including the Lifetime Achievement Award from World HR Congress and HR Person Of The Year from Public Relations Council of India.
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Ravinder Question by Ravinder on Feb 20, 2024Hindi
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Career

I have an Export Company that employed Two Persons in the office as an accounts executive drawing a salary of Rs 53K and a Merchandiser drawing a salary of 60K p.m They have been in continuous service since 2000. Now because of no orders we wish to pay them off. so my question is do we have to pay them retrenchment compensation apart from gratuity? Thanks Kapoor

Ans: Dear Kapoor,

Thank you for reaching out with your query regarding the termination of employment for your employees. Let’s delve into the specifics of retrenchment compensation and gratuity:

Gratuity:
Gratuity is a statutory benefit provided to employees who have rendered continuous service for not less than five years.
It becomes payable upon:
Superannuation,
Retirement or resignation, or
Death or disablement due to accident or disease.
The calculation for gratuity is based on 15 days’ average pay for every completed year of continuous service1.
Retrenchment Compensation:
Retrenchment compensation is intended to provide relief for the sudden and unexpected termination of employment.
It is governed by the Industrial Disputes Act, 1947.
Conditions precedent to retrenchment include:
Providing one month’s notice (or payment in lieu of notice) to the employee.
Paying compensation equivalent to 15 days’ average pay for every completed year of continuous service (or any part thereof in excess of six months).
Serving notice to the appropriate government authority1.
Eligibility:
Since your employees have been in continuous service since 2000, they meet the criteria for both gratuity and retrenchment compensation.
Therefore, you would need to provide both benefits to them.
Important Note:
The retrenchment compensation paid for the past year cannot be set off against gratuity.
Once an employee is terminated and eligible to receive gratuity, it should be paid separately, without adjusting any prior payments made while the employee was still in service.
In summary, you are required to pay both retrenchment compensation and gratuity to your employees. If you have any further questions or need additional clarification, feel free to ask.
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Hi, I’m a second year undergraduate student, and my friend told me about the CUET PG exam . Honestly, I’m still a bit confused about what exactly this exam is for. Is it just for admissions into central universities, or do private and state universities also accept CUET PG scores? I want to pursue my master’s degree, but I’m not sure if this is the right exam for me or if there are other options I should consider. Could you please explain the purpose of CUET PG and how it works?
Ans: Dear Student,

It's great that you're thinking about your postgraduate options early on in your undergraduate degree. The CUET PG exam is indeed a significant one for students in India, and it's good you're seeking clarity. Let me break it down for you:

What is CUET PG?

CUET PG stands for Common University Entrance Test (Postgraduate). It's a national-level entrance exam conducted by the National Testing Agency (NTA) for admissions into various postgraduate programs. Think of it as a gateway to higher education after your bachelor's degree.

Who Accepts CUET PG Scores?

You're right to ask about the scope of this exam. Primarily, CUET PG scores are used for admission to Central Universities across India. However, its reach is expanding. Many State Universities and even some Private Universities have also started accepting CUET PG scores for their postgraduate programs. This means a wider range of options for you based on your performance in a single exam.

Is CUET PG Right for You?

Whether CUET PG is the "right" exam for you depends on where you want to study and what you want to study.

• If you're aiming for a Central University, CUET PG is essential.
• If you're considering State or Private Universities, check if they accept CUET PG scores. This information is usually available on the university's admission website or the CUET PG information bulletin.

Other Options to Consider:

While CUET PG is a major exam, there are other options depending on your chosen field:

• University-Specific Entrance Tests: Some universities, especially well-established ones, might conduct their own entrance tests in addition to or instead of CUET PG.
• National-Level Exams: For certain fields like management (CAT, XAT), engineering (GATE), or pharmacy (GPAT), there are specific national-level exams.

How CUET PG Works:

• Exam Format: CUET PG is a computer-based test (CBT) with multiple-choice questions (MCQs).
• Syllabus: The syllabus generally covers subjects you've studied in your undergraduate program.
• Scoring: You'll receive a score based on your performance, which you can then use to apply to participating universities.
• Counseling: Each university will have its own counseling process based on CUET PG scores.

My Advice:

1. Explore Your Interests: Decide on the specific master's program you want to pursue. This will help you narrow down your university options.
2. Research Universities: Make a list of universities offering your desired program and check their admission criteria, including whether they accept CUET PG scores.
3. Check CUET PG Eligibility: Ensure you meet the eligibility criteria for CUET PG, which usually involves having a bachelor's degree in a relevant field.
4. Prepare Strategically: If you decide to take CUET PG, start preparing early and focus on the syllabus relevant to your chosen program.

I understand the importance of making informed decisions about your education. I hope this explanation helps you understand CUET PG better.

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Asked by Anonymous - Jan 03, 2025Hindi
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I have invested in ICICI Prudential Nifty 50 index SIP. I have noticed that from past 6 months the fund is not performing. Should I keep this fund or liquidate and invest in in multi asset fund?
Ans: The ICICI Prudential Nifty 50 Index Fund replicates the Nifty 50 index. It is a passive fund that mirrors the index performance. The last six months have been volatile for the stock market, which has affected index funds. This is expected in short-term market conditions and does not reflect the long-term potential of index-based funds.

However, relying on index funds for wealth creation in volatile markets may not always be optimal. Active funds offer the flexibility of stock selection, better risk management, and potential for higher returns.

Why Active Funds May Be a Better Choice
Volatility Management: Active fund managers adjust the portfolio based on market trends. This flexibility helps during volatile times.

Higher Growth Potential: Actively managed funds can outperform index funds by investing in sectors and stocks with higher potential.

Diversification: Multi-asset funds allocate across equity, debt, and other asset classes. This reduces risk and provides stability.

Assessing Your Current Investment
Index Fund Performance: While the last six months may seem disappointing, index funds are designed for long-term investors.

Cost Factor: Index funds have lower expense ratios but lack active management during market fluctuations.

Active vs Passive: Actively managed funds are better during periods of market instability. They offer professional stock selection and sector rotation.

Benefits of Multi-Asset Funds
Balanced Portfolio: Multi-asset funds invest in equities, bonds, and gold, diversifying your investment.

Risk Mitigation: Allocation to multiple asset classes reduces portfolio volatility.

Stable Returns: These funds aim to provide consistent returns, even during volatile markets.

Suggested Action Plan
Reevaluate Goals: Align your investment decisions with your financial goals and risk tolerance.

Shift to Active Funds: Consider shifting from the Nifty 50 index fund to an actively managed multi-cap or multi-asset fund.

Monitor Performance: Choose funds with a strong track record and consistent performance across market cycles.

Consult a Certified Financial Planner: A planner can help you select the right actively managed funds and align your investments with your financial plan.

Final Insights
While index funds like ICICI Prudential Nifty 50 are suitable for passive investors, active funds offer an edge in volatile markets. Shifting to a multi-asset or actively managed fund may help you achieve better returns and stability.

Invest wisely, monitor regularly, and stay disciplined to maximise your wealth creation journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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