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Tuesday, 2 September 2014

Xiaomi Redmi 1S Review: Redefining Value Again


Xiaomi Redmi 1S Review: Redefining Value Againxiaomi_redmi_1s_cover_ndtv.jpg

It's safe to say that Xiaomi is the most talked-about new brand on the Indian tech scene today. The Chinese company has not spent any money on advertising and in fact seems pretty laid back about all the fuss it has caused by selling good phones at shockingly low prices.
Although its unique strategy of using online flash sales has aggravated quite a few customers, we must remember that Xiaomi is still a startup and doesn't have the financial or logistical might of the Samsungs and Apples of the world.
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Now, the company has temporarily put sales of the Mi 3 on hold to concentrate on an even lower priced offering, the Redmi 1S. As with the Mi 3, this phone boasts of specs that are usually found in phones that cost at least twice as much, such as the much-loved Motorola Moto G. We've played with the Redmi 1S extensively to tell you in detail how well it performs. This phone could once again change the dynamics of the smartphone market.
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Look and feel
Unlike in the days of the Nokia 7280, which looked like a lipstick case, phone companies are not experimenting a lot with design. Smartphones today are all pretty much the same predictable candybar shape, and most don't even really think about that.
The Xiaomi Redmi 1S is yet another candybar smartphone with a staid look that does not attract attention. It's unexciting, but may not a bad thing for a lot of people.
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The Redmi 1S measures 137x69x9.9mm and is definitely not slim. Moreover, its 158g weight makes it heavier than a lot of other phones in this price range. The rear cover is removable and Xiaomi is expected to offer colourful replacement panels priced at Rs. 459 each, which will be a good way to give your phone some kind of distinction. The Redmi 1S is sold with a matte grey rear, and gripping it is not an issue. 
The primary camera and flash sit on the upper part of the rear. The loudspeaker is just a small slit in the top right corner. A Mi logo in silver is etched on the lower back. Opening the rear cover is fairly simple, and the battery is removable.
The front is mostly taken up by the 4.7-inch screen, which has thick plastic borders. The three capacitive button labels which sit below the screen are printed in red. Oddly, the LED indicator is below the home button. Above the display are the earpiece and the front-facing camera. On the bottom edge is a microphone and a Micro-USB port for charging/data transfer. A 3.5mm jack sits on the top. The volume rocker and power button are on the right edge of the phone.
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Specifications and software
For a phone priced so low, the Redmi 1S has jaw-dropping specs. Housed inside the body of the Redmi 1S are top-quality hardware components including a Qualcomm Snapdragon 400 processor clocked at 1.6GHz with an integrated Adreno 305 GPU. There is 1GB of RAM for applications and 8GB of internal storage, of which 6.14GB is available to the user. You can increase the storage space by up to 64GB using a microSD card.
The Redmi 1S has an 8-megapixel BSI camera with flash which can record 1080p videos. It also has a 1.6-megapixel front-facing camera. There is a 2,000mAh battery. The phone accepts two Mini-SIM cards, but only one will be usable on 3G networks. Wi-Fi and Bluetooth 4.0 round out the list of connectivity options.
The 4.7-inch LCD has a resolution of 720x1280 pixels, which is phenomenal compared to other phones in this price range. The screen is crisp, and its 312ppi density makes it difficult to discern individual pixels. It is protected by AGC Dragontrail 2 glass. We tried scratching the screen with a coin and a scissor, and neither left any visible scratches. On the flipside, the screen looks washed out when viewed at an angle, and sunlight legibility is bad thanks to the super reflective front panel.
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The Redmi 1S runs Android 4.3 (Jelly Bean) with Xiaomi's MIUI v5 skin on top of it. This is the only drawback considering a lot of phones in this price range come with Android 4.4 (KitKat) pre-installed. Xiaomi has promised a software update before the end of this year that will bring MIUI v6 on top of Android 4.4 KitKat.
MIUI goes farther than most Android skins when it comes to customisation. It offers a lot of depth and a ton of features. It is incredibly responsive to touch and, unlike stock Android, has all the app icons lined up on the homescreen itself. There are also tonnes of useful software tweaks. We noticed that Xiaomi has included a 'Lite Mode' which resembles Windows Phone's UI. The most important and frequently used apps are available in the form of large easy-access tiles.
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Xiaomi's MIUI is a community-driven exercise. In one of our interactions with Xiaomi Vice President Hugo Barra, he outlined one feature that was added after a user's suggestion. Essentially, the phone can vibrate when a call you make is picked up by the party on the other end, which is both convenient and also cuts down on exposure to radiation, which is higher when a call is being established.
You can swipe up or down the Music or Notes icons to make the respective apps launch in a pop-up mode. The Messages app has a "secret messages" area that can be accessed by swiping down from within the app. Even more interestingly, a few app icons work somewhat like Live Tiles (seen on Windows Phones). For example, the Calendar and Weather app icons display relevant information such as the time and temperature.
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The Flipkart app is preloaded on the phone, which is to be expected since the phone is sold exclusively via the e-commerce platform. The default music player is feature-rich and fun to use. There is also a fairly powerful WPS Office app pre-installed for reading and editing documents. Facebook comes preloaded as well.
There are a ton of themes which is great for customisation, but in our opinion they all look really cartoonish. In fact, MIUI itself is very colourful. Ultimately, this boils down to preference.
You can read more of our thoughts on MIUI in the Xiaomi Mi 3 review.
Camera
We want to get one thing out of the way: the primary 8-megapixel camera on the Xiaomi Redmi 1S is the best anyone can find for a phone priced below Rs. 10,000 right now.
In our daylight shots the camera managed to capture some really good images. The only problem we noticed was the software processing worked overtime to reduce noise in the images by smudging details slightly. Otherwise, colours were natural. Even in macro mode, the phone performs really well. We were shocked after the low-light performance test. The camera managed to capture some details which even more expensive smartphones generally fail to do. The quality of the 1080p video is also fairly decent.
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(Click to see full size)

The camera software does a lot of processing after images are captured by the 1.6-megapixel front camera. This smudges details in order to beautify a person's face. These selfies should suffice for sharing on social networks.
The camera app looks like a slightly tweaked version of the default app from Android 2.3 (Gingerbread). However, it is easy to use. By default, it starts up in simple mode which strips away a lot of the feature that the camera offers. We'd suggest that users switch to the advanced mode to exploit the full potential of this camera.
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(click for full size)

Performance
At the risk of sounding repetitive, we start another section by stating there is no other phone in this price range that performs as well as the Xiaomi Redmi 1S. If someone put a gun to our heads and forced us to come up with one problem, it would be that only around 400MB of RAM is available after the OS and services have loaded. As long as you don't open tons of apps together, it shouldn't be too much of a problem.
For the most part, the phone works well and we didn't face any heating issues either. We tried Shadowgun: Deadzone and Dead Trigger 2, both on Ultra High settings, just to push the GPU. The phone lagged only during intensive fight sequences, which we expected from such specifications anyway. We don't think prospective buyers will be disappointed with the gaming performance.
xiaomi_redmi_1s_battery_ndtv.jpg
We also ran a bunch of synthetic benchmarks. The Redmi 1S scored 21,439 in AnTuTu 5 and 10,752 in Quadrant, which are leagues ahead of phones competing in this price range. In our graphics benchmarks 3D Mark Ice Storm and GFXbench, the phone scored 5274 and 10.4fps, which are both comparable to scores of much higher priced phones.
We played a few sample videos to test if the phone could handle them and found that the 1080p sample video encoded at 40mbps didn't run, which was a bit of a letdown - 1080p videos encoded at a lower bit rate ran fine though. The tiny speaker can get really loud but at its highest volume the sound distorts.
Xiaomi doesn't bundle earphones in the box and for testing purposes we used our reference headphones. The sound quality was really good. While testing via the Bluetooth A2DP profile using our Plantronics Backbeat Go 2 earphones, the volume level was really low for some odd reason.
In our rigorous battery test, the Xiaomi Redmi 1S tramples its competition mercilessly. It lasted a good 8 hours and 27 minutes of video playback on a loop. In everyday usage shuffling between 3G and Wi-Fi, it wasn't significantly better than other offerings, but should still last you a day of heavy usage. 
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Verdict
Xiaomi continues the trend of aggressive pricing first set by Motorola earlier this year. Samsung and Micromax, who were comfortably ruling the roost in the under-10k price segment, have had the carpet pulled out from under them. 
Even more expensive phones such as the Moto E (Review | Pictures). The Micromax Unite 2 (Review | Pictures) cannot match the Redmi 1S with its reliable performance, great camera, crisp screen and excellent battery life. The only major drawback we see is the lack of Android 4.4 (KitKat) at the moment. 
Looking at this phone's specs, it is easy to make comparisons to the Moto G but we are consciously avoiding that at the moment since it is very nearly at the end of its life in the market, and will soon be succeeded by the Moto G2 (or whatever the final phone will be called). 
At the moment the Xiaomi Redmi 1S is the best buy under Rs. 8,000. The Chinese startup is expected to sell the phone starting September 2 using the same flash sale format. In the first round, 40,000 units will be put up for sale and we expect them all to be gone in a matter of seconds. We can easily recommend this phone because the price-to-performance ratio is unbelievably good - and thankfully, this isn't a case of 'too good to be true'.

Xiaomi Redmi 1S in pictures
Xiaomi Redmi 1S

Xiaomi Redmi 1S

Rs. 5999
  • Design
  • Display
  • Software
  • Performance
  • Battery life
  • Camera
  • Value for money
  • Good
  • Great battery life
  • Class-leading camera performance
  • Good display
  • Bad
  • Available RAM for apps is low
  • Boring design
Read detailed Xiaomi Redmi 1S review



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Xiaomi Mi 4 India Launch by Year-End; Redmi Note Coming 'Within 4 Weeks'

Xiaomi Mi 4 India Launch by Year-End; Redmi Note Coming 'Within 4 Weeks'xiaomi_phones_on_display_reuters.jpg

Chinese handset manufacturer Xiaomi, often referred as the "Apple of China", plans to launch its flagship Mi 4 phone by the year-end in India and also plans to set up its Mi Home experience zone in Bangalore within four to six months, a top company official said.
"The next few things that we will be launching are Mi 4, our flagship product; Mi pad, which is a tablet and Mi Band, a health band. Xiaomi Mi 4 will come to India towards the end of the year, post-Diwali in all likelihood," Manu Kumar Jain, Xiaomi's India head of operations, told IANS in an interview.
The company's second product, Redmi 1S (Review I Pictures), was launched Tuesday, with registrations continuing till Sep 2. Redmi 1S will retail in India at Rs.5,999. The company has entered into exclusive partnership with e-commerce site Flipkart to sell all its products.
"Redmi Note, which is the elder brother of Redmi 1S, with a 5.5 inch panel, will hit the market around three-four weeks from now," said Jain, the co-founder of e-commerce portal Jabong and who earlier worked with McKinsey & Company.
The company launched its first product, Xiaomi Mi3 (Review I Pictures) on July 22 "and we have sold around 95,000 units till now," Jain said. The company opens flash saleonce a week for the phone, which costs Rs.13,999.
Xiaomi has also set up 35 service centres across India, including two exclusive Mi service centres in Delhi and Bangalore, to ensure after-sale services for its customers. "We want to expand service centres to six. They will be in Mumbai, Hyderabad, Chennai and Gurgaon."
Saying that Xiaomi does not believe in number targets, Jain said the focus was on the right inputs: "The best service centres, the best products and ensuring that products do not have issues. We ensure the software is great and customised for Indian customers and the pricing is right. If the inputs are right, output will follow, which is the number of phones that we are selling."
As for the experience zone in India, Jain said: "We plan to have a Mi Home in Bangalore within four to six months."
"Mi Homes are there in China. The experience zones have a huge area. We convert it into a Mi store. Products are displayed with a huge amount of accessories and this also acts as a service centre. A small lounge or cafeteria is attached where people can enjoy themselves," Jain explained.
Talking about alternative channels of sales, Jain said: "We might start selling through our own website mi.com. We will continue to sell through Flipkart. No timeline has been set so far. Setting up e-commerce operations from scratch takes time in India. In many countries, like in Singapore, we sell through mi.com."
The Indian site is so far used for marketing alone and no purchases can be made from there.
As for target customers, Jain said: "Our target audience is the youth and the tech savvy. We believe that this population will grow, will be the dominant and people will buy online. Our products are comparable to any other Rs. 30,000 - Rs. 40,000 device available in the market."
Xiaomi sold 26.1 million devices in China in the first half of 2014.

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Samsung Galaxy S Duos 3 Now Reportedly Available at Rs. 7,999


Samsung Galaxy S Duos 3 Now Reportedly Available at Rs. 7,999

samsung_galaxy_s_duos_3_leak_maheshtelecom.jpg
Samsung might soon officially be launching the successor to the popular Galaxy S Duos 2 in India, said to be called the Galaxy S Duos 3, if information from an established retailer from Mumbai is to be believed.
Retailer Mahesh Telecom on Monday tweeted that the unannounced Galaxy S Duos 3 (G313HU) is now 'in stock' at a best buy price at Rs. 7,999, and with an MRP of Rs. 8,590. The retailer also posted specifications along with pictures of the box packaging on its Facebook page. So far, no announcement regarding the smartphone has been made by SamsungIndia, though with the credible track record of the retailer - the company is likely to do so soon.
As per the alleged Galaxy S Duos 3 box packaging images posted by the retailer, the Galaxy S Duos 3 will come with a 4-inch WVGA (480x800 pixels) TFT display; a 1GHz dual-core processor; a 5-megapixel rear camera with LED flash; GPS/ Glonass support; GPRS/ EDGE; 3G support, and a 1500mAh battery. The Android version was not listed by the retailer. One of the leaked retail box pictures show that the handset will come with support for 14 Indian languages.
The Mumbai-based retailer in the past has leaked details of Samsung handsets ahead of their official launch and that have been spot-on. The retailer had also revealed the price of the company's flagship smartphone, the Galaxy S5 ahead of its official release. Other Samsung handsets that have been leaked by the retailer include the Samsung Galaxy Grand Neo and the Samsung Galaxy Core 2.
Another budget Samsung handset, the Galaxy Star 2, was officially listed on the company's India e-store last week, priced at Rs. 4,580. Launched alongside the Galaxy Star Advance and Galaxy Ace NXT, the Samsung Galaxy Star 2 was officially announced at Rs. 5,100 without any availability details.

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Motorola 'Shamu' Nexus X Arrives in India; Moto X+1 Gets Pictured: Reports

Motorola 'Shamu' Nexus X Arrives in India; Moto X+1 Gets Pictured: Reportsmotorola_logo_brand_new_reuters.jpg

Motorola's much-leaked 'Shamu' handset that is rumoured to be Google's Nexus X(and not Nexus 6 as previously rumoured) was spotted on an Indian import/ export manifest site. In the meanwhile, the much-anticipated successor the Moto X (Review |Pictures) is also claimed to have leaked in an image.
The Indian import/ export site, Zauba, lists (via PhoneArena) two 'Shamu Phones (Prototype)' as shipped on August 20 with model number Motorola XT1112. The smartphones were shipped from the United States, and had a declared value of Rs. 34,982 each.
To be noted is that import/ export website price listings are only declared values, and usually are not accurate reflections of actual market price.
The much-leaked Motorola 'Shamu' handset, expected to hit the market as the Nexus X, is rumoured to launch on October 31. Notably, recent reports have indicated Googlemight launch two Nexus smartphones instead of one 5.9-inch Nexus X only.
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Meanwhile, the much-awaited successor to the Moto X, thought to be called the Moto X+1, has also been leakedin a live image flaunting a leather back in black colour and a grey Motorola logo, ahead of the expected officiallaunch on September 4. Last week, the device had reportedly passed US FCC certification for AT&T and T-Mobile wireless carriers.
On Monday, TK Tech News posted new purported images of the Moto X+1, this time with a wooden back panel and the display turned on, revealing the icon for the Moto app. The website reported that the smartphone will feature an aluminium frame, and four sensors on the front panel that could either tie-in with the Moto and Moto Aware apps, or deliver a 3D interface.
Notably, the website also notes that the previously leaked Moto logo on the back panel of the smartphone is actually the power button, and also offers some gesture-based shortcuts. Finally, apart from wood, plastic, and leather, the website claims the Moto X+1 will ship with choice of denim as well as carbon fibre pack panels.
In April, @evleaks had tipped the Moto X+1 smartphone to come in 25 colour options in five categories - Cool, Neutral, Warm, Wood and Leather. The added leather finish back option (not available for original Moto X), was tipped to also include Red, Blue, and Grey colours.
So far, the rumoured specifications of the Moto X+1 include Android 4.4.4 KitKat; a 5.2-inch full-HD (1080x1920 pixels) display, a 2.4GHz quad-core Qualcomm Snapdragon 800 processor; an Adreno 330 GPU; 2GB of RAM; 16GB of built-in storage; a 12-megapixel rear camera, and a 2-megapixel front facing camera.


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Xiaomi Redmi 1S Goes on Sale for Flipkart First Subscribers on Monday

Xiaomi Redmi 1S Goes on Sale for Flipkart First Subscribers on Mondayxiaomi_redmi_1s_black.jpg

The Xiaomi Redmi 1Spriced at Rs. 5,999, is all set to go on sale in India starting Monday at 2pm IST exclusively for the first 2,000 Flipkart First subscribers who registered to buy the handset - ahead of the first flash sale for registered users on Tuesday.
The Redmi 1S will be available 1 day prior to its India availability only for select Flipkart First subscribers. However, the handset for general public will go on sale only on September 2 [Tuesday] at 2pm IST. The smartphone will be automatically added to the cart of the first two thousand Flipkart first customers who registered for the handset's flash sale on Tuesday.
Flipkart, the exclusive online retailer of Xiaomi handsets in India, sent an email titled 'Early Access to Redmi 1S' to its Flipkart First subscribers, saying, "The first two thousand Flipkart First subscribers who register to buy, will get the Redmi 1S added to their cart automatically and they can purchase the Redmi 1S on Sep 1 2pm IST, one day prior to its India launch."
Considering the limited stocks of the Redmi 1S will be available in India, the popular e-commerce giant has also announced that it will limit orders to one phone per registered email id. The email said, "Since stocks would be limited, we recommend you to login & buy immediately 2pm onwards. To ensure that all our customers can get their hands on Redmi 1S, we are limiting orders to one phone per registered email id."
Flipkart and Xiaomi, continuing the flash sale trend started with the Mi 3announcedlast week that 40,000 units of the new budget smartphone would be available on Flipkart for the first flash sale on Tuesday. The company, also referred to as 'China's Apple', had also claimed that over 100,000 people already registered for the Redmi 1S's first flash sale.
Xiaomi had faced a lot of criticism from Indian consumers due to the limited number of Mi 3 (Review | Pictures) units in each flash sale, and the speed of the stock being sold. It is yet to be seen how both the companies (Flipkart and Xiaomi) handle the sales of Redmi 1S in India.
Chinese handset maker also confirmed that it discontinued the Mi 3 in India, as Xiaomi's India Head, Manu Jain told NDTV Gadgets that the reports were off the mark.
Xiaomi Redmi 1S

Xiaomi Redmi 1S

Rs. 5999
  • Design
  • Display
  • Software
  • Performance
  • Battery life
  • Camera
  • Value for money
  • Good
  • Great battery life
  • Class-leading camera performance
  • Good display
  • Bad
  • Available RAM for apps is low
  • Boring design
Read detailed Xiaomi Redmi 1S review






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Just out of school teens turn entrepreneurs

Just out of school teens turn entrepreneurs

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Call them India’s Restless Teenage Inc. Some are still in high school, some barely out of it, and they are into fascinating ventures — a transaction platform for bitcoins, applications for Google Glass, and more. They are even mentoring older entrepreneurs on technology and business.
Take Kshitij Kumar, 18, who has just finished class 12 from Khaitan Public School in Delhi, and is heading to the University of Illinois for a degree in business and computer science. He started a magic tricks tutorial portal called Horizonmagic.com when he was 10. Four years ago, he started a software firm called Blix that created products, including Snappy, that allows users to covert pictures into any format, and Mathomatic, a free math problem solving tool.
Now he’s working on developing an app called Getcaption.io for Google Glass. “If you are talking to someone whose language you do not understand, the app will show you, on the glass, the translation of what is being said in a language that you understand – like subtitles in a movie,” Kumar says. It’s still work in progress, and currently offers translated subtitles only in English. The app can also take pictures of, say, each of three people in a conversation, and lay out the entire conversation in a Whatsapp-like format.Barely out of school, teens turn tech entrepreneurs
Joel John, 19, has just joined Symbiosis University in Pune for a Bachelor’s in business administration. People call him a bitcoins guru. “There’s nothing that he does not know about bitcoins,” says Brij Bhasin of GSF, a startup accelerator and investor that has a programme called High School Geeks that not only helps children like John and Kumar to build their businesses, but also uses them to educate their older entrepreneur members.
Barely out of school, teens turn tech entrepreneurs
When John was 15, he started a server rental business for gamers, and then another that allowed people who took surveys to, say, read a book for free online. “In these stints, I developed an interest in payment processing. I began to research the area, and delved into bitcoins. I thought that with bitcoins, one could bring down remittance charges to a fraction of what money transfer companies charge. It would even allow, say a farmer in Mizoram with no registered business and no bank account, to do business with someone in the US,” John says. Alongside his Symbiosis course, John is now busy building a bitcoin transaction platform that he hopes the world will do business on one day.
Even about a decade ago, kids with such accomplishments in business were a rarity. In 2000, Suhas Gopinath, then 16, established a web design company in Bangalore and was celebrated as the world’s youngest CEO. But there was just the one Suhas Gopinath. Today you see them all over, thanks to the encouragement by parents, schools, the bustling startup environment, and technology platforms that allow for easy discoverability of talent.
Sharad Sharma, co-founder of software product association iSpirt, narrates a story about a parent who was worried about his son’s performance at school, and wanted Sharma to guide him. “I reluctantly agreed and then I found that the kid, Raghav Sood, had already developed several Android apps, had written a book on building an augmented reality application that had been published by Springer (an international publisher of tech and science books). And I wondered if the parent was mocking me. Who was I to guide a kid like that!” he says.
Sharma attributes the phenomenon of early-age accomplishments partly to the mobile internet. “It is so enabling. You can do programming from anywhere. Also, these technologies have made discovering a Ramanujan so much easier. Ramanujan (the brilliant mathematician Srinivasa Ramanujan who died in 1920) was recognized only because of a letter he sent to Hardy (English mathematician GH Hardy),” he says.
Organizations like GSF are also beginning to actively engage with this segment. “I got hands-on experience on how to scale a business and got access to GSF’s network of mentors,” says Gurgaon-based Gautam Gupta, who at 13 co-developed a social media sharing plugin called SexyBookmarks that was later acquired by Shareaholic. He has just finished school from Amity International and is heading to the University of Waterloo, Canada, for a course in software engineering.
Another GSF high-school geek is Anmol Maini, who built a robotic arm at school and now is envisioning movable walkways in cities that can obviate the need for cars. Microsoft has a student partner programme in India, and Pratik Mohapatra, 16, an 11th class student of National Public School, Bangalore, is its youngest partner. Mohapatra has developed multiple apps for Microsoft and Google, and has won several competitions, including one of Microsoft’s recently that entitles him to a trip to watch the US Formula 1 Grand Prix.
“These kids have a good sense of apps, technology, about how younger people use them. We learn as much from them as they learn from us,” says GSF’s Bhasin.


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Are you making the most of your EPF

Are you making the most of your EPF

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Though it keeps a low profile, the Employees’ Provident Fund is one of the most effective ways to save for retirement. Find out how you can gain big from it.
A recent survey by global professional services firm Towers Watson says that saving for retirement is a big concern for Indian employees, with 71% of the respondents worried that they are not saving enough.
In another survey conducted by ET Wealth last year, respondents listed volatility of returns (32%), low savings rate (26%) and lack of reliable financial advice (25.4%) as their biggest retirement worry.
That’s surprising, because a majority of the respondents of both surveys were already investing in a product that takes care of all these concerns.
The Employees’ Provident Fund (EPF) managed by the Employees’ Provident Fund Organisation (EPFO) ensures that an individual puts away enough for retirement every month. With 12% of his basic salary and a matching contribution by his employer, a subscriber to the EPF should be able to accumulate a decent amount by the time he retires.
If someone started working at the age of 25 in April 2000 at a basic salary of Rs 20,000 a month and got a raise of 10% every year, he would roughly have accumulated Rs 32 lakh in his PF account by now. If the trend continues, he would have saved about Rs 2.46 crore by the time he is 55 years old (see graphic) and more than Rs 3.5 crore of tax-free money on retirement at 58. Are you making the most of your Employees' Provident Fund?
Are you making the most of your Employees' Provident Fund?
Despite the tremendous opportunity, most contributors to the EPF won’t reach even the Rs 1 crore milestone. More than 13% of the respondents to the ET Wealth survey withdrew their PF balance each time they changed jobs. Withdrawing from the PF can be counter-productive on two counts.
One, the withdrawn amount is usually blown away on discretionary expenses and retirement savings are back to square one.
Two, if the individual withdraws his PF balance before completing five years, the amount becomes taxable.
Another 20% of the respondents to our survey said they dipped into the PF corpus for other needs. The EPFO allows an individual to withdraw from his PF account for specific needs, such as constructing or buying a house, children’s education and marriage or a medical emergency.
Should EPF invest in stocks?
The other concern about volatility of returns is also not an issue with the PF. The EPF invests in safe debt instruments that deliver stable returns. EPFO rules allow the EPF to invest up to 15% of its corpus in stocks but the Central Board of Trustees has steadfastly ignored suggestions to this effect.
Many financial experts, including Finance Ministry officials, have castigated the EPFO for this aversion to stocks. They say the EPF is a low-yield debt-based scheme that can never beat inflation. At a recent meeting of the EPFO, it was pointed out that the returns offered by the EPF since 2005, when adjusted to inflation during the period, were in the negative.
The Rs 100 put into the EPF in 2005, when marked to inflation, were worth only Rs 97 now. Experts argue that the only way the EPF can beat inflation is by investing some portion of its gargantuan corpus in the stock markets.
And gargantuan it is. The EPF corpus was Rs 6,32,129 crore as on 31 March 2013. If you factor in the interest earned by the corpus in 2013-14 and the estimated Rs 80,000 crore incremental contributions during the year, the EPF corpus could be close to Rs 7,65,000 crore. This is almost six times the AUM of the largest mutual fund house (HDFC Mutual Fund with an AUM of Rs 1,30,000 crore). Even if a 1% sliver of this gigantic corpus flows into the equity market, it would mean an inflow of Rs 7,650 crore.
But while the inflow of fresh investments will be good for the equity markets, they may not have the same impact on investor returns.
The New Pension Scheme (NPS) funds for central government workers are allowed to invest up to 15% of their corpus in Niftybased stocks in the same proportion as their weightage in the index. We looked at the SIP returns of these funds in the past 5-6 years and found that they were not significantly higher than what the 100% debt-based EPF has churned out. In fact, two of the funds have actually given lower returns (see graphic).
Are you making the most of your Employees' Provident Fund?
This despite the fact that these funds have invested right through the bear phase of 2008-9 and the markets are at all time high levels right now.
Our calculations are not based on pointto-point returns but on SIP returns. We took into account the NAVs of the first reporting day of each month and then worked out the internal rate of return.
Don’t shun equities altogether
Having said that, we must add that a certain portion of your retirement savings should certainly be allocated to equities. It’s only that this equity exposure need not be through the EPF. Any retirement plan has to be a combination of several investments. Keep the EPF as the debt portion of your retirement plan and invest 5-20% in equities through a diversified fund.
Interestingly, though the pension fund managers of these NPS funds can invest up to 15% of the corpus in equities, they have allocated less than 8% to stocks. “Pension fund managers have been conservative because markets have been volatile. The negative impact of equity is magnified in the short term so they have shied away from maxing the equity exposure to 15%,” says Manoj Nagpal, CEO of Mumbai-based wealth management firm Outlook Asia Capital.
On its part, the EPFO is now using professional fund managers for investing its corpus. “The move towards professional fund management and linking returns only from accrued income and reserves is a big positive,” says Nagpal.
Compulsory and linked
The third concern about the lack of reliable advice is also laid to rest by the EPF. It is compulsory and an individual has no option but to contribute to it. What’s more, it ensures regular savings.
According to estimates by HR firms, the average hike this year was 10.5%. How much was your hike? More importantly, did you increase your SIPs by the same proportion? Not many people care to do that. They spend more, buy more, party more but keep investing the same amount.
The EPF is different. Your contribution is linked to your income, so when you get a pay hike, your EPF contribution will go up in the same proportion. If your basic salary is Rs 30,000 a month, you will be contributing Rs 3,600 plus a matching contribution by your employer. If you get a 20% hike and your basic becomes Rs 36,000, your contribution will automatically increase to Rs 4,320. This is a great way to build a corpus in the long-term.
The icing on the cake is that you can invest more than 12% of your basic salary. Millions of Indians welcomed the move when the budget hiked the annual investment limit in the PPF to Rs 1.5 lakh. But Delhi-based PSU manager Naveen Parashar was not one of them.
“I can’t understand why salaried taxpayers are so excited about this development. They have always had the option to invest in the Voluntary Provident Fund (VPF) and get the same tax benefits offered by the PPF,” he says nonchalantly. Parashar puts an additional Rs 14,700 into the VPF every month, taking his overall contribution to the EPF to Rs 31,700 a month. This forced saving has helped him build a sizeable corpus in the past 15 years.
Central Provident Fund Commissioner K.K. Jalan echoes Parashar’s views. “The VPF is an ideal saving instrument for high-income earners looking to build a tax-free corpus. Unlike the PPF, there is no limit to how much one can invest,” he says (see interview).
EPS: The problem area
While EPF is a great way to save for retirement, it has its share of problems. One big wart is the Employee Pension Scheme (EPS).
Launched in 1995, it is a black hole that gobbles more than it offers. The amount flowing into the EPS every month is very small, so most people don’t even notice the deduction.
It is 8.33% of the employer’s contribu-tion to the EPF on behalf of the employee, with a cap of Rs 6,500 a year. But the monthly contribution of Rs 541 can grow into a huge amount over the long-term. Even at a modest interest rate of 8%, this tiny amount can burgeon into Rs 12.41 lakh in 35 years.
However, this is not what happens to your contribution to the scheme. The amount just flows into a pension pool without earning any interest for you. The pension amount is calculated by taking into account the number of years you had contributed to the scheme and your basic pay at the time of retirement (see graphic).
Are you making the most of your Employees' Provident Fund?
Three years ago, an expert panel had suggested that the EPS be replaced with a provident fund-cum-annuity combo under which contributions would flow into individual accounts. The panel suggested that the balance in the pension account be used to buy an annuity on retirement. However, the CBT rejected the panel’s recommendations.
Mercifully, the EPFO has now raised the eligibility ceiling for EPS to Rs 15,000 a month. New joinees who are earning more than that will not be covered by the rip-off scheme. The entire contribution of their employer will flow into their EPF accounts.
The new look EPFO
The EPFO is fast shedding its dowdy image and using technology to turn into a more professional and nimble organisation. It has made several other investor-friendly changes in the past 12 months. Last year, it introduced the online facility for transferring the balance to a new account. This year, it has made it possible to check the account online. Going forward, all members will have a Universal Account Number which will be portable across employers and cities.
UANs have already been allotted to 4.17 crore active contributors to the EPF. In the first four months of this financial year, the EPFO settled nearly 43 lakh claims. Of these, more than 68% were settled in less than 10 days.


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Analytical skills must-have for LPO job

Analytical skills must-have for LPO job

LPO-612x300The legal outsourcing industry has seen significant changes since 2008, where some companies are prompted by the slow down and others a result of evolution of the legal services market.
Legal Process Outsourcing (LPO) buyers are recognising and treating their LPO providers as partners and the staff as an extension of their enterprise. In an exclusive interaction with TimesJobs, Kunal Purohit, country head -India, Integreon Managed Services shares job outlook of the LPO industry.
What is the current outlook of the LPO industry in India?
The legal outsourcing industry has seen significant changes since 2008, where some companies are prompted the by slow down and others a result of evolution of the legal services market. This growth has led to a change in the hiring needs. Companies are getting more selective about who they hire and are paying greater attention to domain knowledge above everything else.
What is the recruitment trend in this industry?
As the industry moves further up the value chain to incorporate more complex, high-value tasks, skilled labour is no longer an option but a necessity. LPO buyers are recognising and treating their LPO providers as partners and the staff as an extension of their enterprise. With this evolving engagement model, it is imperative that the industry hires, nurtures and retains the best talent to sustain quality client engagement and delivery.
Which are the emerging skill-sets in the LPO industry?
Technology is ceasing to be a sector of its own and has seeped into the LPO industry as an enabler and driver. At Integreon, we use both proprietary software as well as third-party solutions to offer technology enabled services to our clients, particularly for electronic discovery and contract management and review. Being a specialist provider, the complexity of work that we do for our clients is significantly higher than traditional BPO firms. Therefore, when we hire candidates, the pre-requisites are strong domain knowledge and high analytical skills.
What are the compensation trends in the industry?
The average salary in the industry is set to rise given the industry growth and the demand for high skill talent. The compensation that we offer to our employees is comparable to those offered by law firms and corporate legal departments. Acquiring skilled talent is important to us and if a candidate is talented and experienced we are willing to pay an above average salary.
What will be the game changers in recruiting by technology?
When it comes to technology’s involvement in recruiting, I think social integration in recruitment strategy is imperative. Traditional routes of recruiting are still efficient however, they have to be supplemented by social channel. It is cost effective, has one of the biggest reserves of candidates and is an effective channel to spread the word and get a quick response to job postings no matter what level.


You Need any soft-skills Training with placement just contact us Contact number : 8904762432. Website: www.moxiestars.com. Facebook:https://www.facebook.com/moxiestarssolutions. LinkedIn : Moxiestars. Email: info@moxiestrars.com.




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