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SIP - Systematic Investment Plan

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Systematic Investment Plan - SIP It is one of the best and very simple method of investing in Mutual Funds. This is the method in which a common man who does not know much about Equity market and mutual fund can invest and earn smart profits.   If a person wants to invest in mutual funds without much efforts, can opt for SIP method of investing. What Is SIP? SIP is a method of investing a fixed sum of money, regularly (On fixed dates of months), in a mutual fund scheme. SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves. The biggest advantage of SIP is that one need not time the market. Let us understand SIP with an example Client : Hi Mr. Advisor, I want to know the difference between stock SIP vs Mutual fund SIP.  Which one is better & why ? Can u explain both the concepts ? Advisor : Yes sir surely. Why not. Well, stock SIP is averaging and Mutual fund SIP is rupee cost averaging. Albert Einstein quote... Compound inte

Which Bank is Providing High Interest rate on Fixed Deposits in India?

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Fixed Deposit It is One of the famous investing instrument among the Indian people to generate revenue out of their savings. Due to COVID-19 pandemic almost all banks have reduced their interest rates on the FD's. Which affected the revenue of many people like Senior Citizens, Widow and many other people. So, Let us see which bank is offering high return on FD In below table let us know how much interest rate the top Indian banks providing on FD Presently PNB is providing better interest rate than all other top banks of India. So one can invest in these banks to get better and safe interest rates. 

Are You Insured?

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Insurance Definition of Insurance Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Insurance is a protection against any loss or damage for which the insurance is purchased, the purpose of Insurance is to protect and fulfill  your family's financial needs in your absence. Getting insured is the one of the major step towards the Financial Planning Types of Insurance Health Insurance Life Insurance Term Insurance Apart from above mentioned insurances there are many other types but for a middle class individual these 3 types serve the purpose Why one should buy Insurance? 1. Health Insurance Now a days medical expenses are very high and to get treated in well established hospitals with all the facilities will cost you hefty. And this may drain out all your life savings to treat some illness, hence to get rid of any such situation one

SBI We Care Fixed Deposit - For Senior Citizens

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State Bank of India (SBI) has launched a special fixed deposit (FD) scheme for senior citizens in India.  Under this scheme, senior citizens will get an additional 30 basis points interest on their fixed deposits. Due to COVID-19 Pandemic all banks in India have reduced their interest rates on fixed deposits to below 5.5%. Because of this the income of senior citizens who were depending on the earnings coming out of FD's have severely Impacted. To compensate this the State bank of India launched SBI We Care Scheme  for senior citizens. Here's all you need to know about SBI special FD scheme SBI Wecare Deposit for senior citizens: In SBI Senior citizens special FD scheme, residents of 60 years or more are eligible to invest. SBI Wecare Deposit special FD scheme for senior citizens is applicable for tenure of 5 years or more. The new interest rates will be applicable on fresh term deposits as well as existing deposits. SBI special FD scheme for senior citizens is applicable till

Inflation

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Inflation  is an economic term that indicates rising prices of goods and services within a particular economic environment.  As Prices rise, the purchasing power of consumers going to decrease. It is the rise in the general level of prices where a unit/part of currency effectively buys less than it did in prior periods. Often inflation is expressed as a percentage, inflation indicates a decrease in the purchasing power of a nation’s currency. Features Inflation indicates the rate at which the general level of prices of goods and services is rising. Intern the purchasing power of currency/money is falling. Inflation is of three types: Demand-Pull inflation, Cost-Push inflation, and Built-In inflation . Most commonly used inflation indexes are the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). Inflation can be viewed positively or negatively depending on the individual viewpoint and rate of change. Those with tangible assets, like property or stocked commodities, may lik

What Is Mutual Fund?

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A mutual fund is a type of financial tool made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional managers appointed by Asset Management Company (AMC), who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. What Does Mutual Fund means Mutual funds pool money from the investing public and use that money to buy other securities, usually stocks and bonds. The value of the mutual fund company depends on the performance of the securities it decides to buy. So, when you buy a unit or share of a mutual fund, you are buying a part of the portfolio's value. Investing in a share of a mutual fund is different from investing in shares of stock. Unlike stock, mutual fund shares do not give its holders any voting rights. A share of a mutual fund represents investments in many different stocks (or other securi

What is Emergency Fund and How to Build It?

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What is an Emergency fund? Emergency fund is a corpus of money which is been kept aside to face any unexpected event in the future. The events could be sudden decrease in income, sudden financial liability, temporary income stop due to temporary disability or job loss. Emergency fund is one of the Must Do Activity for all individuals Before starting investing prepair Emergency fund. But most of the time we forget to plan and as well as to implement it. One should give importance to the Emergency Fund as it is a first step of Financial Planning. This Emergency fund should be in very liquid form so that it is instantly accessible with in no time. What should be the size of Emergency fund? Thumb rule is that one should have at least 12 months of his monthly expenses plus going on EMIs as his/her Emergency Fund. But if the investor has a stable job, good savings and controlled expenses he can set aside 6 months of his monthly expenses plus going on EMIs . If your spouse is working and yo