The government has banned Rs 500 and Rs 1000 notes, which constitutes 86% of the total currency of our country. The move is aimed to curb black money and wipe out corruption. This bold step has left us perplexed as 14% of the currency alone cannot provide for the earlier 100%. We have been spending in cash, not only for our daily petty expenses but also for bigger expenditure like electronics, vehicles, or even buying a home. Now, we are left with no other option, but accepting the digital platform. We all are hesitant, we feel insecure without cash. We get cold feet when we go to a general store or a salon with nothing but a Debit or a Credit card. It feels like we have to cover a generation gap overnight.

But once you are over the fear, you would realize it is so convenient and easy, and you would wonder why at all, were you ferrying cash from your home to the market, or a city to another, or a country to another, since so many years. Digital Payments are so quick and hassle free. Yes, going Digital is the need of the hour, but like every other coin, it has a flip side too.

Our online accounts are protected, there is strong cyber security, but inspite of the vigorous cyber protection, there have been cases of cyber attacks too. Recently, the Twitter account of Rahul Gandhi was hacked, and inappropriate comments were posted from his account, it took some time before the account could be restored. Considering Gandhi's prominent position, if it can happen to him, it can happen to you and me as well. So, we have to be vigilant while we dwell in the digital space.

Following are some tips which can help you navigate smartly between the hubbub:

Passwords: The most crucial thing that you have be attentive to is your passwords. Your password should be strong, it shouldn't be "12345678". If it is your ATM pin, it shouldn't be your date of birth. Ideally you should have a combination of letters, numbers and symbols as your password. Having a strong password will make it difficult for the hacker to guess it.

You should change your passwords periodically. And the changed password should not be same as an earlier password.

Never share your passwords with anyone. Even if it is your closest friend, do not give away your password.

Don't write down your password on a piece of paper and hide it somewhere or in message drafts, because there is always a change of it being leaked. You must always memorize your password.

Credit/Debit Card Swipe Transactions: Whenever you are making a card payment at a store, do not tell your pin to the cashier, because he might not misuse it but the person standing behind you in the queue might.

Digital Wallets: Paying through Digital Wallets like Paytm, Freecharge, etc., are gaining popularity because of the alluring discounts and cashbacks plus they are very easy to operate, you just have to authorize the transaction and you are done. You don't need to enter any pin or OTP or account details, etc. The number of wallets and cash handling through them is on the increase, standards of security are not as high as banking transactions, therefore they are vulnerable to fraud. Fake accounts can be created, and people's people can be stolen. Therefore it is advisable to keep limited money in your Digital Wallets.

Online Payments: Be careful while making online payments. Check for the 's' in 'https', as that "s" stands for secured, check the URL of the website make sure it is not icicii instead of icici. Be careful while downloading Apps, there can be apps which can skim your personal data, or your passwords from digital payment gateways. Download authorized Apps only from official App Stores.

Terms & Conditions: Whenever you download an App, even Apps like Paytm, they would seek certain permissions, make sure you read and then give the permission, do not go with the flow, because the App may be seeking permission to access your browsing history or your contacts and sms'. Even while you make online payments, some websites may ask you to agree to terms and conditions, or ask for saving your passwords. Make sure you read the T&C's and take informed decisions, and make sure you do not save your internet banking password on someone else's computer.

Demonetization's coolest byproduct is making India go cashless. It is indeed a blessing, you just have to be a little cautious to savor the advantages of thriving in the online era.

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It almost pulled the rug from under the feet of many Indians on the evening on 8th November 2016, when PM Modi announced the demonetisation of Rs 500 & Rs 1,000 notes. All the cash that was stashed in our homes, our wallets would be worthless within the next 4 hours. Then a ray of hope shined through the dark clouds when the government announced that people don't have to worry and they could withdraw new currency or exchange and deposit their old notes, but with limits on withdrawals. Since then, there are long queues outside the banks and ATMs, people start waiting hours before the banks open, people are collapsing in the queues, some are making friends for life in the queues, some are gratifying their philanthropic spirit by serving tea or water to the subjects of misery standing in the queues, etc. And at the end, they receive a skimpy amount which might not even provide for essentials that can last for a week.

In such a situation what do we do?? Queue up with others Or Play Smart?? Do we really need cash to survive?? The answer is No. Technology will help us survive without cash. The Demonetization move is aimed to eradicate black money and corruption from our country, by transforming us into a cashless economy, and technology is the only means through which this move can be implemented.

In the present day scenario, we are not left with a choice, but to adopt technology. There are various digital tools at your disposal which will effectively handle your cash requirements. Following are a few popular techniques which will help you 'Go Cashless':

• Electronic Wallets: You don't have to go to a mobile shop to get your phone recharged, you don't have to stand in long queues to pay your electricity bill, water bill, mobile bill, etc. Thanks to the digital wallets. You just have to transfer money from your bank account to your wallet and you are good to go. Book movies, flights, hotels; pay bills; purchase groceries, clothes, medicines, toys; pay to the autowalas, retail stores, coffee shops, etc., with your digital wallets. You get the convenience of doing everyday transactions through these wallets, plus you get discounts, plus you get a Cashback on your purchase, which is a cherry on the cake. Paytm, Mobikwik, Freecharge are the popular Digital Wallets.
• Unified Payments Interface (UPI): UPI App is a GOI initiative, through which you can pay or receive money from and to any bank account through a mobile App. You can transact anytime and from anywhere, simple and quick. You don't have to enter ifsc code, transaction passwords and wait for the payment to complete. You just need to enter a PIN to execute the transaction.
• RTGS, NEFT: In UPI, there is a transaction limit of Rs 1 Lakh. In case, the transaction is of a higher amount, then you have the option of RTGS or NEFT.
• Bank Apps: Many banks have their apps to enable their customers go cashless. Like Digital Wallets, you can add money from your bank account and start paying your bills, movie tickets, buy investments, etc. through your mobile.
• *99#: You just have to dial *99# from your mobile phone, and you can transfer funds, check account balance, etc. without internet connectivity. This facility is available in 11 regional languages. This is called USSD based mobile banking and you can transfer an amount as low as Rs 1 to the max Rs 5,000 in a single transaction. The service is available 365*24*7.
• Plastic Money: You can always use your debit and credit cards for payments, be it online payments or through a swipe machine. Most departmental stores and even small retailers have a card machine. You don't have to carry heaps of cash with you, your wallet becomes lighter, and the risk of theft is also minimised.

Though Demonetization has caused a short term turmoil, but you can escape the clutter through the above tools. In the long term, it is for the benefit of all. Using Digital methods will not only help us in battling against the cash crunch but will also help in boosting economic growth. When we start paying electronically, it will help in avoiding tax evasion as the sellers have to pay tax on all online transactions. This will result in more tax to the government and more development. Less Paper also means more trees, and a healthy environment.

Go Digital, Go Cashless!

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Compared to equity market, bond market is considered to be stable and less volatile. But events such as falling currency makes the market volatile, depreciation and appreciation of currency against dollar is the most happening event and most of the time regulator RBI take measure to balance it time to time. And such measures often affects the bond price movement adversely.

Certainly the volatility in debt market creates doubts in minds of investors about debt market and its functionality. The base of debt market is interest rate movement. Interest rate scenario affects bond prices and so debt funds return. There is an inverse relationship between interest rate and bond prices. As interest rate moves up, bond prices come down and vice versa. This is one of the reasons why bond funds delivered negative return recently with unexpected spike in short term rates due to RBI action. So investment in long duration bond funds is recommended when interest rates are likely to fall.

There are few important things to consider before investing in debt funds :

• Investment duration of investors
• Average maturity period of bond/debt fund
• Interest rate scenario
• Understanding of the product

If you want to invest for one year, you will go to bank and invest in 1 year bank F.D. In the same way if your investment horizon is 1 year, you should opt for debt fund suitable for 1 year investment horizon. Investing in long duration bond/gilt fund for 1 year can prove risky for retail investors. So matching investment horizon with category of bond fund is very essential for bond fund investor.

Short Term Money Market Funds:
These types of funds invest in very short maturity bond papers, typically less than 91 days maturity. So interest rate risk practically does not exist for this category of funds. These are ideally suited for investors who are looking for investment of less than 1 year with low level of volatility.

Long Term Bond Funds:

Duration Funds:
Duration based funds are the ones, which take long term call on interest rate movement. Fund manager of duration fund is active in bond trading and he/she takes call on bond portfolio based on interest rate movement. i.e. if interest rate scenario looks falling, fund manager increases the duration of the portfolio by buying long maturity bond paper and vice versa. Normally they hold long duration papers of above 5 year maturity.

Accrual Based Funds:
In Accrual based funds, fund manager does not play or rely on interest rate movement. Here they try to identify high yielding/high interest paying and high credit quality bond paper, and hold them till maturity. They play on accrual and not on interest rate movement. High yields earned on portfolio get reflected in fund performance. Normally the tenure of the bond paper remains on the shorter side, less than 3 years. So this category of bond fund is less vulnerable to interest rate risk.

Both duration funds and accrual funds are for little longer horizon of above 2 years and volatility remains on a little higher side in duration funds compared to accrual based funds.

As explained in the above matrix, as an investor one needs to match his/her investment horizon with a suitable product within debt fund category.

Conclusion:
As discussed, mutual funds have different products within debt fund category catering to investor requirements across time frame. Ranging from one day to 2 years, investors can look at debt funds, which suit their investment requirements to generate tax efficient return compared to other fixed income products.

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