Equity Funds Classification
An equity fund is a mutual fund scheme that invests predominantly in equity stocks. In the Indian context, as per current SEBI Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65% of the scheme’s assets in equities and equity related instruments.Read More
Understanding Debt Funds
Liquid Fund – meant for short term holding, i.e. less than 3 months.
Liquid funds are debt mutual funds, that invest your money in very short-term market instruments such as treasury bills, government securities and call money,that hold least amount of risk. These funds can invest in instruments up to a maturity of 91 days. The maturity is mostly much lower than that.Read More
DEFINITION of ‘Profit Taking’
The act of selling a security in order to lock in gains after it has risen appreciably. Profit taking can affect an individual stock, a specific sector, or the broad market. If there is an unexpected decline in a stock or equity index that has been rising, and no specific reason for the drop can be identified, the decline is frequently attributed to profit taking Read More
Managing risk using mutual funds
Gold, real estate, equity prices constantly move up and down. If you seek little or no risk, returns will be low and if you are ready to take higher risk, returns could be high. However, financial planners believe, managing risk is essential and one of the best products to manage it is mutual funds. Read More
What RERA means?
Under the RERA Act, in order to render their services, all agents have to be registered with the authority and the developer
The deadline for establishing a real estate regulator is almost over. According to the Real Estate (Regulation and Development) Act, 2016, which was enacted on 1 May 2016, a regulator under the Act should come in to existence by 1 May 2017. Read More
How much tax do you pay on your investments?
It is important to consider the taxation rules before investingMost people look only at the returns that an investment vehicle gives. It is, however, important to consider the taxation rules as well since this will reduce the overall returns. Here’s a look at some of these.Read More
Is lifestyle inflation affecting you? Take this quiz and find out
Take this quiz to find out if your lifestyle is healthy enough to keep you on the right path to your life’s goals or is it pushing you towards financial disaster.
Score yourself on the following basis. Then add up the points to know your score.
A 3 points
B 2 points
C 1 point
1. My credit card bills are Read More
NPS – National Pension Scheme
The NPS or the National Pension Scheme is a contribution scheme launched by the Indian government, which offers a large variety of investment options to employees. The scheme helps individuals make decisions with regards to where they should invest their pension wealth. The National Pension Scheme’s main objective is to lower the liabilities of the Government of India with regards to total pension as well as to ensure that the country’s citizens would earn a stable income following their retirement along with helping them earn decent returns on their investment.Read More
Why compile tax-saving investment proofs?
Giving documents to the employer saves you from the burden of paying higher taxes in the remaining months.
During December or January, employers usually start asking employees to submit documentary proofs of investments and expenses that qualify for tax deduction and exemption under various sections of Income Tax Act, 1961. This is in respect of the investment declaration made by the employee at the beginning of the financial year, to the employer. The purpose of asking for proof is to verify whether the investments and expenses have been carried out as was declared or with any changes.Read More
What is UPI (Unified Payments Interface) ?
UPI (Unified Payments Interface) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.Read More
Tax Planning Funds
Definition: Tax-planning funds cater to the investors’ need of minimizing tax burden on the returns from investments. They are also called equity-linked tax saving funds or ELSS. These funds are market capitalization agnostic. These are close ended schemes with a lock-in period of 3 years.Read More
Definition: These are diversified mutual funds which can invest in stocks across market capitalization. In other words, they are market capitalization agnostic. These funds resort to portfolio gyrations commensurate with the market condition.Read More
Definition: The unit capital of closed-ended funds is fixed and they sell a specific number of units. Unlike in open-ended funds, investors cannot buy the units of a closed-ended fund after its NFO period is over.Read More
Systematic Withdrawal Plan
Definition: SWP refers to Systematic Withdrawal Plan which allows an investor to withdraw a fixed or variable amount from his mutual fund scheme on a preset date every month, quarterly, semi annually or annually as per his needs.Read More
Should you invest your money or use it to prepay home loan?
Generally when a person takes home loan, he takes into account his current income and accordingly applies for the loan based on the then eligibility. However with income going up, the borrower generally accumulates some surplus. Such borrowers face the dilemma that what to do with the surplus funds – Should I prepay the home loan or should I invest the money somewhere. The answer to this question will depend on various costs and benefits involved in prepaying your home loan. Let us understand all the factors which affect your decision to prepay your home loan.Read More
Are SIPs better than lump sum investments?
Regular investing on a schedule offers better returns and a number of other advantages.
Systematic Investment Plans (SIPs) are not magic. Their superiority to lump sum investments is not a matter of probability or even psychology but an absolute law. What this means is that, most of the time, under most circumstances, over a sufficiently long period of time, SIPs will do better.Read More
Can’t Get Going on Your Long-Term Money Goals? Match Your Strategy to Your Personality
Whether you want to save for your kids’ college tuition, sock away enough for a down payment on a house or simply be able to retire comfortably, reaching long-term money goals can seem overwhelming.
But there are pain-free ways to stack up your savings and keep the momentum going—if you pick a method that matches who you are.
To set yourself up for success, experts say the key is to be honest about your financial behavior and then adjust your goal-setting approach accordingly. Do you freeze up when plans go astray? Tend to ignore monthly bank statements? There’s still a long-term savings strategy for you.Read More
Will Your Investments Beat Inflation Over Long Term?
Make sure returns on your investments are ahead of inflation; while equity funds are the best option, monthly income plans can be a good alternative
The inflation monster is beginning to stir again. Consumer inflation rose to 6.07% in July due to higher food prices and analysts expect no respite in the coming months.Most readers may not get perturbed if prices rise by around 6% in a year.But this is a misleading figure because it represents the inflation faced by all consumers, including the vast lower middle class. “Middleand upper-middle class consumers experience a significantly higher inflation than what the index indicates,“ says Debopam Chaudhuri, chief economist, ZyFin Research.Read More
Goods and Services Tax (GST) Bill simplified
The Constitution (122nd) Amendment Bill comes up in Rajya Sabha, on the back of a broad political consensus and boosted by the ‘good wishes’ of the Congress, which holds the crucial cards on its passage. Here’s how GST differs from the current regimes, how it will work, and what will happen if Parliament clears the Bill. Read More
What stops women from investing?
Today, women are outpacing men in several areas. Surprisingly, investing is one area which still provides fertile ground for studying gender differences. On the face of it, this field should be gender agnostic as it does not involve physical exertion or spending long hours in office, both considered limitations for women. However, there are some differences in the manner in which the two genders approach investment. Read More
The 50/20/30 Rule for Minimalist Budgeting
Budgets are more than just paying your bills on time—a budget is also about determining how much you should be spending, and on what. The 50/20/30 rule, also called the 50/30/20 budget, is a proportional guideline that can help you keep your spending in alignment with your savings goals.Read More
Does Copycat Investing Really Work?
While some investors are trailblazers and do their own research, many investors attempt to mimic the portfolios of well-known investors, such as Warren Buffett of Berkshire Hathaway, in the hope of being able to cash in on those investors’ world-class returns. But copying another investor’s portfolio, particularly an institutional investor’s portfolio, can actually be quite dangerous.Read More
5 Tips to Avoid Hiring Movers
Let’s face it: moving is expensive. Hiring movers certainly has its benefits, but the costs add up.
If you can’t afford to hire a moving company, here are six tips to get you through your move:
Plan ahead to avoid paying more money to move than you initially thought you would. Make a list of all the potential expenditures you can think of.Read More
Here’s What to Do If You Can’t Pay Your Bills On Time
Not having enough money to pay the bills is an issue we may face from time to time. Life is full of financial ups-and-downs, and after all, we’re all human.
Don’t beat yourself about the situation or get discouraged. Vow to take action. If you don’t make changes, things will stay the same. If you’re in a tough financial spot, here’s what to do when you can’t pay your bills on time, and tips on how to best handle the situation.Read More
How To Prioritize Emergency Funds, Savings and Paying Off Debt
We all want to be more responsible with our money. While that sounds great in theory, it can get confusing once you start to break things down. Emergency funds, savings funds and debt all need to be addressed regularly, but trying to figure out a consistent method leaves some paralyzed with indecision.Read More
Which Debt Repayment Strategy Is Right for You?
Today, we want to discuss how you can choose a debt repayment strategy to make sure you stay on track and reach debt freedom as soon as you can. These methods can help you power through and repay every last balance.Read More
Life Insurance: 8 Terms Everyone Should Know
Shopping for life insurance can feel a bit like learning a foreign language: You hear a lot of unfamiliar terms—and many of them can be confusing. So we’re here to help!
Whether you’re starting your search for a policy or you just got approved for one, here are eight must-know terms to add to your insurance vocabulary.Read More
How direct equity SIPs work?
When you open an online trading account through angel brokers, you have an option of investing systematically in preferred equity shares. This option is known as the systematic investment plan (SIP) or popularly known as goal based investing.Read More
9 Rules While Buying Health Insurance
More than 80 percent of financial crisis originate out of a medical emergency and the same can severely damage one’s finances
You can avoid such situations by keeping in mind these nine rules while buying health Insurance online or through an advisorRead More
Tax & Loan Eligibility benefits from Home loan in Joint Names
One of the most attractive benefits of taking a home loan is that they help you save tax, while you prepare to invest in a fixed asset. Acquiring a home loan makes you eligible for tax rebates under Section 80C and Section 24 of the Income tax regulations.
Tax benefits get divided among co-applicants in case of a joint loanRead More
Things to see before taking possession of your property
Owning a house is the ultimate dream of most people since time immemorial as it gives a secured feeling to an individual. But the satisfaction that the buyer gets while taking possession of his dream home is simply unexplainable. However, it is imperative that the buyer remains cautious while doing so.
At times, the buyer may be duped by the builder / sellerRead More
5 things you should know while donating to save tax
Don’t end up claiming tax by just referring to Section 80G. There are some sub-sections also
True charity is the desire to be useful to others with no thought of any compensation. However, in the world of Karma, what goes around comes around. Therefore, all your acts of kindness in the form of charity and donations come back to you in the form of a tax benefit.
The government on its part allows tax deductions to encourage more and more people to donate to worthy causes. So, all philanthropic donations one makes towards any charitable cause to various trusts and approved charitable institutions are exempt from tax under Section 80G of the Income Tax Act.Read More
For Tax Saving, Consider Only a Few Instruments
In December, employees typically start getting letters from their human resource department to provide documents to support their tax-saving declaration made in March.
With insurers, fund houses and others pushing products during this time, do the numbers first
Step one: Before you start rushing to buy all kinds of products to fill the gap, do some hard numbers. Look at your annual employee provident fund (EPF) contribution. If the amount exceeds Rs 1.5 lakh, then you needn’t worry about tax saving. The problem lies if the amount is lesser.Read More
Five financial tips for newlyweds
Set expectations from the start, make financial plans together, and check in regularly.
When you say, “I do,” it’s for love—and for money matters too. When you get married, you tie a financial knot that you have to keep strong throughout your lives together. It’s a matter of setting money expectations from the start, making careful financial plans together, and checking in with each other regularly to keep your finances on track as things change.Read More
Type of Bonds
In the current gloomy market scene potential investors are shying away from equity and are resorting to fixed income instruments. Among pool of fixed income investments, bonds are considered a good investment product for investors with short-term perspective.Read More
Gold ETFs vs Sovereign Gold Bond
Definition: Gold fund, as the name suggests, invests in various forms of gold. It can be in the form of physical gold or stocks of gold mining companies. Gold funds which invest in physical gold offer investors the convenience of buying pure gold at low cost. There is no possibility of theft and you can sell these units at market linked prices anytime.
Description: There are various types of gold funds across the globe:Read More
10 Tips For the Successful Long-Term Investor
There may be an exception to every rule, but there are several investing principles that are tough to dispute. Here are 10 that should help investors enjoy long-term success.
1. Sell the losers and let the winners ride. Let losers go before their value completely plummets. Of course, it’s tough to know which suffering stocks will turn around and which ones won’t.Read More
6 Tips for Using a Credit Card for Everyday Purchases
When used responsibly, a credit card can be a beneficial financial tool. Making regular credit card payments can help improve your credit rating, and some credit cards even offer airline miles or cash rewards for purchases. But if credit card spending gets out of control, monthly payments and accumulated interest can become a problem. Read More
What is CRR, repo and reverse repo rate?
What is CRR?
Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the available amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system. Read More
Mutual funds companies collect an amount from investors when they join or leave a scheme. This fee charged is generally referred to as a ‘load’. Read More
Equity dilution refers to the cut down in the stock holding of shareholders in relative terms of a particular company, usually a startup, whenever an offering for new shares is made whether through an IPO, FPO or private equity.Read More
Devaluation of Currency
A deliberate downward adjustment to the value of a country’s currency, relative to another currency, group of currencies or standard. Devaluation is a monetary policy tool of countries that have a fixed exchange rate or semi-fixed exchange rate. It is often confused with depreciation, and is in contrast to revaluation.Read More
Agreement Of Sale
An agreement of sale constitutes the terms and conditions of sale of a property by the seller to the buyer. These terms and conditions include the amount at which it is to be sold and the future date of full payment.Read More
Recession is a slowdown or a massive contraction in economic activities. A significant fall in spending generally leads to a recession.
Such a slowdown in economic activities may last for some quarters thereby completely hampering the growth of an economy. In such a situation, economic indicators such as GDP, corporate profits, employments, etc., fall.Read More
What is an Occupation Certificate?
Occupancy Certificate is a very important document. It evidences the completion of the building as per the approved plan and compliance of local laws.Read More
Definition of ‘Systematic Transfer Plan’
STP refers to the Systematic Transfer Plan whereby an investor is able to invest lump sum amount in a scheme and regularly transfer a fixed or variable amount into another scheme.Read More
Freehold property can be defined as any estate which is “free from hold” of any entity besides the owner. Hence, the owner of such an estate enjoys free ownership for perpetuity and can use the land for any purposes howeverRead More
New Fund Offer – NFO
A security offering in which investors may purchase units of a closed-end mutual fund. A new fund offer occurs when a mutual fund is launched, allowing the firm to raise capital for purchasing securities.Read More
Which Mutual Fund Suits You?
As a general rule, small-cap and mid-cap funds have outperformed large-cap funds, and the trend is not likely to change anytime soon. As a result, prospective investors need to have a strong understanding of market capitalization (“market cap”) in order to effectively begin their search for mutual funds. Here we explain the differences between the various types of funds and look at the kinds of returns you can reasonably expect from them based on historical data.Read More
DEFINITION of ‘Gilt Fund’
A mutual fund that invests in several different types of medium and long-term government securities. Gilt funds differ from bond funds because bond funds invest in corporate bonds, government securities, and money market instruments.Read More
Atal Pension Yojana
Atal Pension Yojana or APJ, promoted by Govt. of India recently, is a pension scheme towards retirement benefits, after the age of 60. An individual within the age group of 18 years to 40 years currently can avail this scheme by contributing Rs.42/- to Rs.210/- monthly (18 years age slab), till the age of 60 years. In case one participates before 31st Dec 2015, GOI will contribute 50% of annual contribution orRead More
What is a stock split? Why do stocks split?
What is Stock split?
A corporate action in which a company divides its existing shares into multiple shares. Although the number of shares outstanding increases by a specific multiple, the total rupee value of the shares remains the same compared to Read More
Are you required to file income tax return?
We have bid goodbye to the Financial Year 2013-14 and now the tax filing season will begin for Assessment Year 2014-15. Are you wondering if you are required to file a return in India? Read on to know more.Read More
Endowment or money back policy – Simplified!
An endowment policy is a combination of insurance and investment: The life of the individual taking the policy is insured for a certain amount, which is usually a very small amount compared to actual requirement.Read More
Five real estate terms you should know
Carpet area is the area within the walls of an apartment that is for the exclusive use of the buyer. While computing the carpet area, the terrace and balconies are usually considered as half the actual area.Read More
Income Tax Return Filing – Simplified!!!
Last date for filing returns is 31-July. Here are some tips & important points you should take care while filing your income tax returns.
In case you find below details cumbersome & boring, call or email us (22 67413121 or email@example.com), we will file your income tax returns online at a nominal fee. All you have to do is to forward or upload your Form16 & other IT related documents, which our advisor will guide you. Read More
What is Accidental Insurance Policy?
A term plan can only help in death and a health plan can help in case you are hospitalized, some of these policies also offer accidental riders, but these riders are not as comprehensive as standalone Personal Accident Insurance policies have. Read More
Sukanya Samriddhi Yojana or PPF account?
Comparing Sukanya Samriddhi Yojana (SSY) with investing in the PPF and fixed deposits for your little daughter’s education or marriage?
The SSY is more attractive than the PPF because it offers a higher interest rate. The interest rate of the SSY is also linked to the government bond yield. While the PPF offers 25 basis points higher than the yield of 10-year government bonds, the SSY will offer 75 basis points higher than the 10-year government bond yield. For 2014-15, the interest for PPF is 8.7% while the SSY offers 9.1%. Read More
NEFT v/s RTGS v/s IMPS: simplified
If you have tried transferring money electronically to an individual or an account, you would’ve come across the terms NEFT,RTGS and IMPS. Most of us are not really aware of the difference between the various models and on what occasions they have to be used.Read More
Compound Interest – “the eighth wonder of the world”
Definition: Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Compound interest can be thought of as “interest on interest,” and will make a deposit or loan grow at a faster rate than simple interest, which is interest calculated only on the principal amount. Read More
What are Closed-ended & Open-ended Mutual funds?
Many investment products are not one single product, but are instead a collection of individual products. Just as you wear a collection of clothing products to make up your whole wardrobe, products like mutual funds and ETFs do the same thing by investing in a collection of stocks and bonds to comprise the entire look. There are two types of these products on the market. Read More
Amortization is, “the systematic repayment of a debt”. The emphasis is on the word “systematic”. Amortizing a loan means paying it down, bit by bit. Usually this means making regular monthly payments, and this is what is done for home or car loan.
The great advantage of amortization is that you know how much you have to pay each month, under a fixed interest rate, to finish paying off the loan at a specific time. You can work out an amortization table to show each payment. Read More
Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every Rupee you own buys a smaller percentage of a good or service.
The value of a Rupee does not stay constant when there is inflation. The value of a Rupee is observed in terms of purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money. For example, if the inflation rate is 5% annually, then theoretically Rs.20 loaf of bread will cost Rs.21/- in a year. After inflation, your Rupee can’t buy the same goods it could beforehand.Read More
What is a Systematic Investment Plan?
A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.). A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future. Read More
Tax Benefit on Home Loan: Section 24, 80EE & 80C
A very important criterion to be kept in mind while taking a Home Loan is the Tax Benefit on Home Loan. To explain the Tax Benefit on Home Loan, we would be dividing the Repayment of Home Loan into 2 components:-
- Repayment of the Principal Amount
- Repayment of the Interest on Home Loan
As the repayment comprises of 2 different components, the tax benefit on home loan is governed by different sections of the Income Tax Act and these are claimed as tax deductions under different sections while filing the Income Tax Return. Read More
NCD (Non-Convertible Debentures)
An NCD is a fixed-income debt paper issued by a company. In other words, the issuer agrees to pay a fixed interest on your investment. As the name suggests, these debentures cannot be converted into shares of the issuing company like convertible debentures where investors have the option of getting shares in the issuing company on conversion. Read More
House Rent Allowance (HRA)
House Rent Allowance or HRA as it is popularly known by any salaried individual has generally been a source of big tax saving tool. However, this allowance also becomes a cause of concern for lot of individuals, who face the heat from the tax authorities in proving that the claim of deduction to be genuine. Read More
Definition: According to Article 112 of the Indian Constitution, the Union Budget of a year, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for that particular year, presented each year on the last working day of February by the Finance Minister of India in Parliament.
Description: Union Budget keeps the account of the government’s finances for the fiscal year that runs from 1st
April to 31st March. Union Budget is classified into Revenue Budget and Capital Budget. Read More
What is OFS or Offer for Sale?
Recent example: Coal India offer on 30th Jan 2015
Offer for Sale (OFS) is another form of share sale, very much similar to Follow-On Public Offer (FPO). OFS mechanism facilitates the promoters of an already listed company to sell or dilute their existing shareholdings through an exchange based bidding platform. Read More
Equity Linked Savings Schemes (ELSS)
As the name suggests, an ELSS is a Mutual Fund scheme which invests at least 65% of its corpus in equity and equitylinked products to avail of tax benefits for investors. The minimum 65% investment is mandatory for the fund to avail of exemptions under the long-term capital gains tax rules of the Income Tax Act.Read More
Credit Score (Applying for a Loan or Credit Card)
The Credit Score is derived from your credit history as detailed in the Credit Information Report [CIR] and ranges from 300 to 900 points. Your credit score tells the lender how likely you are to pay back loan or credit card dues based on your past repayment behavior. The higher your score, the more the chance of your loan application getting approved!
In India, there are currently four credit information companies licensed by RBI. The Credit Information Bureau (India) Limited (CIBIL) is one of the key players. Read More
Definition: Net worth is the difference between the asset (market value of home, car, jewellery, fixed deposits, shares, mutual funds, insurance investments, other savings, etc.) and the liability (home loan, car loan, mortgage loan, credit card outstanding, etc.) of an individual or a company. Read More