When you receive your salary every month, just saving is not enough. That money has to be invested so that it can earn you more money. A Systematic Investment Plan (SIP) also called `the good EMI’ helps you do just that.
SIP is a method of investing a fixed sum, regularly, in a mutual fund scheme. It allows an investor to buy units regularly on a specific date of the month. If you invest through SIP it can work wonders for your financial goals.
The end of the financial year 2018-19 is fast approaching, and with that begins income tax woes 😉.
Most people keep the task of tax planning hanging till the end of the year. While doing so many of them get trapped in last minute investment ideas, which seems attractive, but actual calculation, they are not.
A proper tax planning can help you to minimize your tax liability with the help of productive investments.The income tax framework allows various deductions under different heads, which can be used to save tax, as well as link same to attractive returns. Some of the most popular heads are described below.
Medical expense is one expense,which we hate to spend-on, but it is also an expense which we cannot escape. Medical expenses are rising every year,even the smallest of tests prescribed by doctors, make us cough-up, at least couple of thousand Rupees. The lifestyle which we lead and the environment we are living in is contributing largely to the ever increasing diseases. Yet India’s health insurance market remains highly unpenetrated.
Some of the key terms, which are usually not explained by the seller, or we overlook at the time of signing the policy are explained below. But one should carefully read all the terms, conditions and clauses related to the insurance, before one finalises on the preferred health plan.
The way market is behaving since last six months, most of us with running SIP’s, have this question, what to do next? Continue, Stop, Reduce or Increase SIP?
When we start an equity SIP, our calculation is based on the long term goal allocation & not the short term impact. Logic of SIP is based on two facts:
STP stands for “Systematic Transfer Plan”, which means, one doesn’t want to invest in one GO, but in Parts, over a Period of time. For instance, you have 10 lacs in hand and seeking investment avenues for the entire 10 lacs. Easiest way is to shortlist a fund & invest fully (i.e. entire 10 lacs). But in the current market scenario, where market is swinging every second month (since last one year);is it a wise decision to invest fully?
STP comes as a rescue, where one can make this volatility work for your own benefit. First & foremost, let’s understand, one cannot ever time the market, therefore no point acting like a cowboy, or getting ideas based on celebrity talk-shows/ articles.
If I’ll be you, I’ll not panic… Why?
If you look at the chart below, since June 28th, when SEXSEX was at 35,037 level, it climbed to a peak of 38,896 level by Aug 28th, i.e. in just two months a gain of 3800+ points or 11% UP. Did we question that point of time…why so suddenly the market went UP?
Again, if you look at chart below, from beginning of the year, i.e. 1st Jan, SENSEX was at 33,812 level, and from there it went to a peak of 36,283 level by 29th Jan, a gain of 2400+ points or 7% UP. And a correction or a reaction to the budget (key trigger), for the next 2 months slide.
