The ABCs of investing in Mutual Fund companies

Everyone has some or the other plan regarding their future. While some people choose to invest their money in a savings account, others do a fixed deposit of the money they’ve. However, you can’t survive on 5-6% interest every year! Even if you leave the money untouched, you’ll barely have sufficient savings after 10-20 years.

If you really want your money to grow, you should try investing in mutual funds. Mutual funds in India are quite popular since it offers significant advantages over other investment options. Mutual funds are managed by a fund manager and consist of a large number of investors whose money is pooled together.

The money of various investors is invested in a variety of places and depending upon each person’s investment share, they receivethe dividends. Since a lot of money is invested, the fund manager can buy stocks and shares for cheaper value and sell them at a higher rate when the prices soar. Due to a large investment, the returns are huge as well.

If you really want to reap benefits out of investments, you should invest in some top performing mutual funds in India. They can get you much higher returns than any other form of investments. The only other investment which can rival them in terms of returns is insurance. Investing in insurance schemes is also a good option since there are lots of opportunities. Be it travel insurance or home insurance, the returns can be really good and satisfying provided you get hold of the right scheme!

Managing finances made easy with financial advisors

At school, most of us as kids dreaded math! It was a little horrifying working with numbers and the phobia that we developed way backs as kids could never really be overcome. Working with numbers requires a lot of logic. Especially in today’s times, it’s important because as we earn, we realize that money is not just numbers, but there’s a meaning behind those numbers. Due to our inability to comprehend the meaning behind those numbers, we hire financial advisors who can carefully assess our income, expenditure and lay our several investments schemes so that we may choose the one that can give us the best return on our investment.

Financial planning in India is really easy with financial consultants. They are well versed with every financial scheme, mutual funds, fixed deposits and various investment policies. Coupled with their experience in the field of financial advising and the educational background they possess, they become an ideal choice for managing our money. Getting a financial consultant to manage your money can be beneficial in many ways:

• It’s convenient: As working individuals, we really don’t have the time to make endless rounds of investment firms to seek out the best possible plan for us. Further, the paperwork and hassles related with the same can give us sleepless nights! Getting a financial advisor on board can help us ease the burden. They complete all the formalities and paperwork on our behalf, at our behest.

• Gives us a level of confidence: When we invest money without any prior background in the field of investment, there’s always a tension at the back of the mind. It’s the tension of risking and/or losing your money. It comes due to lack of experience and study in this particular field. However, under the careful guidance of a financial planner, we can be confident about our investment.

Before going in for a financial advisor, you need to know why you’re hiring him! There are a lot of reasons that make a financial advisor better than the rest.

• Trust: When you hire a financial planner, you’re giving away a lot of details about your personal life such as your income, family status, expenses etc. The person needs to be trustworthy so that your personal details are not compromised with. Make sure you inquire about the reputation of the advisor!

• Compensation: Financial planning india firms usually have two methods for compensation. The first one is commission basis, wherein they charge commission for every work and secondly, a lump sum based deal wherein you pay them a specified amount. A drawback with the commission one is that the advisor might sell you more schemes just to make commission.

Explore the Best Ways to investment in India

When it is about investment plan, most people get confused. Most of the time, people go around looking for ways to invest when they have certain amount of spare money in their hands. Retirement and children’s future are the two main concerns when it comes to long-term investment.

If you are without much financial leverage, you cannot afford to lose money but at the same time you need higher returns. In such a case, the best possible method to make an online investment would be choose a balanced portfolio that has the right mix of equity and debts. Without proper knowledge about the market, it would be best to choose mutual funds as the main base for your investment. Mutual funds can help create the ideal portfolio according to your requirements and also accumulate assets in a knowledgeable way.

One of the best ways to save money would be to invest monthly in mutual funds. For example an investment of just Rs. 5,000 a month for the next 16 years can help you generate a savings of Rs. 2 million with an average rate of 8.5% a year. This would be achieved without any risk or headache of choosing the right portfolio. A Systematic Investment Plan or SIP is the ideal way to start investing in mutual funds.

When you want to invest in equity, it would best to take the help of an investment advice. If you want to choose your portfolio on your own, this would be a job that would consume a lot of time and effort. Therefore, it would be best to get help from a professional. investment in India, online investment, investment advisor

Why is investing in retirement plans beneficial?

After independence, not much consideration has been given to the wealth management India. Not many people initially went for the top mutual funds in India for a secure future and not many retirement plans were even considered as everyone thought that in there old age their children are going to support them.

 But today the times have changed and it is very important to go for the right plans in India because the need of the hour is that it is to be accepted that anything can happen at time of retirement and perhaps your loved can also turn their backs for you when it comes to financial help. So it is important that wealth management should be considered in the early stages of life.

With the vastly growing financial industry it is important to get the knowledge of top mutual funds in India and consider the advice of a financial advisor before you go for some investments in the financial sector. A financial advisor can help you understand the financial sector in a better way and can also give you an unbiased report of the trends that are going on in the financial industry.

 It is important to know about the things that are going on in the financial sector so that you are updated about the current happenings and the better investment policies that are coming up day by day for your betterment and for your better retirement plans. Live ahead towards a great future with the right 

retirement plans for yourself.

 

Benefits of Investing in mutual fund India

There are many benefits of investing in mutual fund India. The main reason for the popularity of mutual funds is that they help in reducing the risk and increasing the chances of getting higher returns. There are many other benefits of investing in mutual funds.

When you invest in a mutual fund, you are getting full time professional investment management services, as they would pool the resources of several investors. This is a vital service from the point of view of the present day volatile and complex markets. The inside fact is that the interests of the fund manager are based upon the success of the investor. As the fund managers have immediate access to latest market information, they can make trades on cost effective, huge securities portfolios.

The next advantage is that mutual fund performance remains more or less stable over the long-term. This is because the investment is done in different options including stocks, securities and bonds. This reduces risk because even if there is any drop in the value of a particular security, it would be stabilized by the increased value of other securities.

Another advantage of mutual fund calculator is that it gives you the chance to invest small but with high quality. This is something that is not possible in the case of the stock market. you can start investing in mutual funds even with Rs. 500 a month without thinking of risking your money. Last but not the least, this investment tool comes with easy liquidity, as they can be withdrawn without any difficulty.

How to save tax in India?

The income tax scene in India is quite dynamic. It changes with every budget and before people can understand the nuances of the current income tax, the next budget comes in which has some revised schemes. We, the normal citizens of India, are usually not well versed with all these things. These things can best be done in consultation with a tax planning expert who is from this background. They can not only help us save tax, but can also let us know in detail regarding how much tax we’ve to pay and how we can file our IT returns so that we can avoid any penalty that might be levied. After all, penalties really pinch hard even if they’re a small amount. It’s like losing a part of our money for nothing at all.

People do a lot of black-marketing and try to save taxes the wrong way. However, such techniques might get people caught in the long run. Even if they don’t, the person doing it lives under constant fear of being arrested. It is better to talk to a tax consultant who can show us some legal and right ways regarding how to save tax. Some of the common methods tax consultants suggest are:

• Investing money in Insurance: Insurance policies have since long been one of the most reliable ways to save money. Insurance comes in a lot of variety such as auto insurance, home insurance, health insurance, fire insurance etc. By investing money in Unit Linked Plans and Endowment policies, you can save a lot of tax. Not only will you save money, but you can do a lot of good to yourself by investing in policies since they give good returns after a point of time.

• Fixed Deposits: You might have heard of the term FD. Everyone talks about putting in money for FD! So what does an FD mean? FD stands for fixed deposit and it can be availed for a fixed duration such as 3 years, 5 years etc. The tenure depends on their scheme provided by banks. The interest rate on the same varies from bank to bank and just for your information, the RBI has made a hike in the interest rates of FDs between the tenure of 3-5 years. However, if you break your fixed deposit before it matures, you cannot avail the benefits of getting higher returns. In fact, you might attract some penalty.

• National Savings Certificate (NSC) – The National Savings Certificate is an attractive scheme by the Government of India to attract investors. Under such a scheme, you can invest money for tenure of 5 years and get an interest rate of 8.6% per annum! It’s a really good interest rate to obtain because even banks don’t offer such attractive rates. There’s a super saver plan as well, which goes on for tenure of 10 years.

These are all investment plans recognized by the income tax in India. They are legal ways and benefit an individual by giving good returns on investment.

Guide on how to save income tax in India

If you are thinking of how to save income tax in India, there are a number of investment options and keys to help you. Section 80C enables you to save up to a total of Rs. 100,000 in tax annually if you invest in a number of instruments. These instruments include life insurance premium, provident fund contribution, home loan principal repayment, Equity Linked Savings Schemes in mutual fund firms, National Savings Certificates, Infrastructure Bonds, children’s tuition fee, fixed deposits in banks and even Public Provident Fund with maximum Rs. 70,000 annually.

Section 80D of Indian income tax enables you to save money on your health insurance premium. It would enable Rs. 15,000 deduction from your taxable income for paying health insurance premium. In the case of senior citizens, it is Rs. 20,000. When considering these options, make sure to get the help of a professional and experienced tax guru.

Next, you can seek the help of Section 80E of Indian income tax that would enable you to get deduction on the interest that you pay on educational loans. The loan may be availed for you own education, your children’s or even your spouse’s education. In this case, there is no limitation to the total deduction amount that you can claim.

When availing deduction under Section 80E, it is important to have proper tax planning. It would enable you to get deduction against a loan that has been taken for higher education, such as a graduation or post-graduation program in medicine, engineering, management, applied sciences or pure sciences.

Why to go for best health insurance?

Securing your future for better health benefits, travel safety and life security is very important in the fast pacing world today. The world is competitive and security is a demand if you want to have a safe future of you and of your family. This is a reason why people go on for travel insurance before they plan a vacation because travel insurance means that you are secure while you are travelling away from your loved ones or with your loved ones.

 In a similar way smart people go for fire insurance as well. Fire insurance is a smart move because whether you insure your house or company or factory the insurance company will pay you back all your losses if a fire happens to destroy your assets. This is a reason why people go for fire insurance because this ensures that they can have a sound sleep.

 Insurance is all about keeping your things secured and the future of your loved ones safe. Insurance helps you and your loved ones in unwanted and never dreamt off adversities when there is no one else to help you. Insurance means a long term future planning and commitment towards a secured future. There are many kinds of insurance that always helps you in going through your life easily without many tensions or hassles.

Motor insurance is another form of insurance which benefits a lot. It ensures that your car or automobile is safe, so if you are handing over your bike to your friend or a car to your sister you don’t have to worry about the dents that she would return back your car with. Make sure that you always go for best health insurance so that you get your returns right on time. Taking the best health insurance will ensure timely returns.

Why go for investment advice before investing in stocks?

Mutual funds mean long term investments. Make sure that that you go for top mutual funds by discussing good amount of investment plans with knowledgeable financial advisor. Investments are all about money and savings for a better and brighter future, which means that you have to go for some good investment advice so that you don’t just go for any plan.

There are many 5 star mutual funds, but this doesn’t mean that it won’t ever face a red cap. Mutual fund companies always believe that you invest for long term because then your funds will be able to give a much better return than anything else. Many mutual fund companies have their own investment plans which their financial advisor will be able to explain to you easily.

2011 was a bad year for equity investors as the two largest caps equity indices – the National Stock Exchange (NSE) or Nifty and the Bombay Stock Exchange (BSE) both fell by 24 per cent. But there is no reason of losing your heart even if your money seems to be in danger, because bog names always make a comeback unless it is not a bankruptcy, which is a rare event. Investment plans should be a well thought off plan because your money is involved, but the plan should be a long term plan because if you plan go for long run then there is more safety.

Always understand that a smart mutual fund investor will always go with the investment advice of a professional financial advisor and will never lose heart if his money seems to be in danger in stocks or bonds or in financial market.

Secure your future with retirement plans

Retirement is one of the toughest decisions to make in life. There’s always some greed of working a couple of months extra in order to accumulate a little more cash and there’s always a fear whether they amount of money you’ve saved after working endlessly for decades will last you your entire retired life! But trust us, with proper planning and a positive attitude, the money you’ve saved after working hard and burning yourself daily for decades will definitely prove its merit and last you your entire life. Here are a few tips that can help you with your retirementplanning .

·         Brush up your basics: You should pick up newspapers daily and read up the financial sections. Papers have a specialized column dedicated to latest developments in the field of investments, mutual funds etc. You need to study them well in order to be abreast with the latest developments. Unless you’re clear with the basics, you cannot go a long way with your retirement planning. Also, keep one thing in mind that your retirement income in usually 65-70% of the money you earn when you’re well settled. After retirement, your life will sober down a bit as compared to your heydays.

·         Keep a track of your present income: Most professionals don’t keep a track of their money. They don’t have an account sheet where they can note down the money they’ve spent the loans you’ve given or have borrowed. This will help you to effectively plan out a data chart showing whether your expenses are going towards needs or wants! This will give you a realistic figure of the amount you can save every month so as to decide the best retirement plan in India for you.

·         Calculate your future position: There are various factors which we are dependent on for our future. It might be our children, our social security benefit and so on. But assess them carefully and evaluate the kind of benefits you stand to receive in your future. We’re not talking about your children here but rather, plans like social security benefits. Aren’t plans like social security dwindling? If not, what’s their scope in near future? Such questions need to be answered for building an effective wealthmanagement plan for future.

·         Forecast future expenses: This is what we are looking at majorly. You need to forecast your future expenses to see how much money you’ll spend each month. To best way to calculate is to keep on noting down your daily expenses that take place right since the time your day starts till the time it ends. You’ll have an amazing idea of how much you spend on auto/taxi, how much on outside food, how much on other wants which are now unavoidable. Even if you go to the best of wealth management companies in India, they’ll suggest you the same.

·         Start investing! : After you’ve carefully evaluated all pros and cons, it is time to start investing! Start investing a portion of your salary for your future.

Plan your retirement yourself!

Retirement is usually a tough decision to make. When my parents chose to retire from work, they had a lot of considerations before them. They had plans of enjoying their post retirement life like they enjoyed their youth, but were worried whether their savings will suffice. It took a couple of weeks for me to convince them that the money they’ve saved after working hard for decades will definitely suffice and in fact, give them a better life than their youth. My parents expressed their apprehensions over unforeseen circumstances and whether they’d have enough money left after such events. Retirement plans usually don’t include unforeseen events but let me assure you, they’re not even important to be included.

A retirement plan can be fruitful for a lot of reasons:

·         Travel is cheaper for senior citizens. Everywhere in the world, senior citizens get first preference and a good amount of discount on train tickets, hotel reservations and flight bookings. This way, people can travel to destinations they’ve harbored since long post retirement without having to worry about the trip being expensive.

·         Governments usually have special medical facilities for senior citizens that cost lesser as compared to those run by private organizations. Further, various charitable institutions treat senior citizens are subsidized costs. Make sure you keep contacts of such places handy before retirement so in case any difficulty arises, you will have some contacts handy.

A retirement should be planned right since the time you start working. Yes, that early! This is because the various policies and funds that you invest in, will take a couple of decades before they start maturing and give you good returns. Right at the start of your career, find out some best mutual funds to invest in. Find out from your seniors about the ones that offer monthly pension on the aforesaid date. It is always good to deal with firms that are true to their words. And when you’re in an old age phase, it would be difficult to make rounds of insurance companies to make your claim. 

Mutual funds form an important part of investing for future, but they are not the only option. There are various saving schemes which you can best know about in detail from wealth management companies in India. Wealth management firms specialize in maximizing your investments for a secure future. In return for a meager commission, they guide you through various interesting plans that can positively impact your savings and offer you the best returns. Consulting such firms can be fruitful and give you a sense of positivity regarding your latter life.

From amount the various plans these companies offer, the best retirement plan in India is that of your own! You should definitely consult wealth management experts but believe me; no one can plan your retirement as good as you can. You will know best about your personal needs, about your income, the kind of expenses you’ve and the kind of savings you can do. It is best to plan your retirement by yourself!

Join your one-stop shop for all your investment plans and insurance coverage

Investments have always been the key to one’s progress, personal or in business. Investment means great returns. Today you would be spoilt for a choice with the types of investment instruments available in the market. It’s quite natural you would want the maximum returns from your investment. Indian mutual funds market is brimming with options these days. Ranging from government launched ones to various financial companies and now the private sector is all full of opportunities catering to your unique need. Studies say people who have invested with the Best mutual fund in India chose mutual fund as they are professionally managed and quite diverse most of the time when compared to other forms of investments.

Consider the following advantages if you are short listing the Best mutual fund in India.

• Diversified mutual funds – Go for the ones that involve variety of investments in a portfolio. Mutual funds are usually spread across industries and assets. You can be benefitted even without investing a huge amount in individual portfolio.
• Professionally managed – Your mutual funds should be take care by skilled professionals. They conduct research, analyze performance, and are always on the lookout for prospects providing you the premium service from expert fund managers.
• Is it liquid enough – Go for the ones where you can redeem your units at anytime of course with a fee for exit load.
• How flexible are they – You would find investment plans that are flexible enough for withdrawal or reinvestment. That provides you ample flexibility.

If you are looking for family health insurance plans find out which insurance provides the maximum benefit. Most of it has coverage for diseases, injuries, surgery or any care needed by the individual or the family. The good ones are packed with features such as cash credited on daily basis, daily cash for accompanying an insured child, maternity expenses, health check-up to name a few. The best in the market

• Provide cover for treatment of illnesses and accidents where the patient is hospitalized.
• Cover critical illness where the illness is pre-defined.
• Cover diagnostic procedures, ICU cost, surgery and prosthetic costs.

Unlike few years ago, people today are fully aware about life insurance and it is one of the most important factors in financial plans of many people like you.  To help you determine what type and how much of coverage is appropriate for you and your family you can refer to the Life insurance calculator. With certain basic information of your family such as resources, debt, expenses, current coverage and so on you could get an estimated amount needed as your life insurance coverage.

These days many people and most importantly youngsters at the beginning of their career have begun to think of pension plan as an important form of investment to secure their future. You could go for retirement plans that are usually tax exempted. Some plans have the employers make contributions toward a pool of funds set aside for the employee's future benefit. There is various type of plan and you could choose from defined contribution plans, defined benefit plans or predefined contributions according to your requirement.

Importance of mutual funds in India

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India has emerged as one of the biggest economic power in the last one decade. The growth rate has witnessed a tremendous increase in terms of percentage and productivity. Apart from this savings and investment has been a constant culture in India which has evolved through all these years taking different forms and manifestations. There is so much f importance laid upon mutual fund India as our elders believe in saving for the future not only for a secured tomorrow but also to ensure the well being of their families. Mutual funds have become the new age mantra for increasing the income apart from the savings bank account, fixed deposit and gold. Earlier mutual fund was meant only for a limited section of industries like banking, jewellery and reality, but looking at the huge potential that the sector offers not only to its customers but also to the investors, the bar has risen to include infrastructure, FMCG and telecom industries.

Mutual funds India are categorized mainly in four categories- money market funds, bond or fixed income funds, stock or equity funds and hybrid funds. There are different rules that guide the investment policy for each of these types of funds but the ground rule that applies to all these funds is that one needs to look at three things at the time of investment. These three things are risk factor- usually it is said that higher the amount invested, higher is the risk and greater are the returns, time duration- total time period for which the money is invested in mutual funds and the portfolio which is investing in many types of funds in order to maximize the returns that come from each funds. Therefore mutual fund investors can invest in a variety of instruments like stocks, bonds, money market securities, gold or a combination of these which provide diversification to the individual who is investing.

Investments are considered to be one of the best tools to maximize the financial goals of an individual. Every investment policy is unique in its own way as it offers over 1000 schemes to boost the financial goals and suits the investment objective of the individual. Another factor that makes mutual funds a lucrative market is the fact that money is managed professionally once invested, it helps in diversifying the portfolio of the investor, low cost of investment due to economies of scale, and the market is well regulated and highly liquid in nature. Apart from this at the time of investment the person should be careful about the nature of the market and the profit margin before making a purchase or sale of funds respectively as the market knowledge factor determines how successful the returns are going to be for the individual.

What is the best way to invest money?

Money is the most important factor that drives your life. If you see a nice pair of jeans, you will ask yourself, ‘Can I spare 1500 bucks for this?’ If you were to watch a movie, you calculate whether a pop-corn would be economical or an entire combo meal with cold drink? We calculate so much because we always want to save and have more money for later. We spend a lot of time everyday just calculating our incoming and outgoing money, just to see whether we’ve enough for that get-together we planned to attend with friends. So much so that daily our mind asks the same question again and again, ‘what is the best way to invest money?’

While there’s no single solution that can adequately satisfy the question ‘what is the best way to invest money?’ there’s definitely one of them which have worked the maximum number of time for people. It is wealth management. Wealth management is about investing money in the best possible financial schemes that can offer you the maximum returns on the most reasonable investment. Wealth management solutions offer complete guidance to an individual regarding where to invest, with regards to his discretionary income. 

Wealth management should be considered a seriously important facet of life because in the future, this is what can make you lead a comfortable life.  People even spend a lot of time worrying about their future and as to how they will lead their life after retirement. This question hits harder to those without kids to support them in their old age. Whatever be the case, wealth management solutions can put a rest to those premature graying hair that happen to due excessive worrying! 

Some important tips regarding wealth management that can ensure a smooth journey of life are:

·         Take control of your life: If you are dependent on someone to take care of your finances, it will be too late before you can start understanding how to invest and where to invest your money? 

·         Get your family together: Getting your family together will catalyze the process of working towards a common goal. The entire family can mutually decide how much they can commit to saving. If everyone’s together, they can plan better and save better for a safe future.

·         Hire a good financial services firm: Firms that provide financial services are experts in the field of wealth management. They are well versed with every type of policy according to all income range. They are definitely a good place to visit and get some initial consultation.

·         Be focused: At times, you might exceed your spending. Don’t let a period of drought dishearten you. The only thing that can get you going is your focus! Always be committed towards your goal so that you can reap what you have started sowing.

Wealth management solutions are gaining importance since people are realizing the importance of investing their money in the right place. Without saving, the future might look a bit dull. And with savings, the future will be full of bright smiles!