Search Results

What comes to mind when you earn your yearly pay raise? The first thinking is generally about the extra costs you can afford after the raise. Worst case scenario: Do you consider about raising your investment allocation, such as mutual funds, to meet your increased income? If not, keep reading to see why it is. Money in your hands increases your capacity to spend. It also means saving and investing more. When you invest in mutual funds via SIPs, you immediately enroll in a number of perks. For example, your investment is automated, there is no financial strain on you, your investment is protected from market volatility, your costs are averaged out, and so on. Increase or supplement your SIPs. Year after year, you should ideally increase or top-up your SIPs by 10% or more. Consider genuine inflationary trends, your lifestyle, and the future worth of your financial objectives. Step raise your SIP installments when you get yearly increments. You may increase your SIPs in two ways: If you have a monthly SIP of Rs 10,000, you may raise it every year by Rs 1,000 or Rs 2,000, depending on your needs; alternatively, if you have a monthly SIP of Rs 20,000, you can increase it every year by Rs 1,000 or Rs 2,000, depending on your needs. Year after year, by a defined proportion, such as adding 10% -20% to your existing monthly SIP. Some mutual fund companies enable investors to automate the top-up process, while others need a personal request by mandate. So, before you invest, verify with your fund company or bank. The following are the two main advantages of increasing your SIP installment: Improves inflation resistance – Inflation, or increasing prices, erodes our hard-earned money's buying power. Amounts that seem large now to meet a financial objective may not be so in a few years. A step-up SIP may help you beat inflation while also generating inflation-adjusted profits. Aids in the development of a larger corpus – Increasing the number of SIPs increases the power compounded. Because you are investing a larger sum each year, your annual returns will be bigger as well. Because you will be able to save a larger amount, you may be able to achieve your goal sooner than the initial target date. Even if you choose a step-up SIP, you should evaluate your portfolio on a regular basis and rebalance it if necessary. Consult your financial adviser to determine the best asset allocation for your requirements.

The increased volatility of equities markets in India (and throughout the world) has perplexed investors in recent months, particularly after the advent of Coronavirus or COVID-19. The market has had a more than 25% drop in just a few months, with future corrections not ruled out and the bottom still unknown. In such circumstances, you, as an investor, must assess the level of risk you are ready to accept and take the required steps to safeguard or maintain your cash. What is capital protection and how does it work? Negative returns aren't the only thing to worry about when it comes to capital preservation. When the stock market experiences turmoil and falls, losses are unavoidable. As a result, 'capital protection' essentially entails reducing a disproportionate loss, with the damage being quantified and restricted. What you should do is as follows. Examine and adjust your investment portfolio The investment outlets you hold determine the success of your total investment portfolio. Carry out a full portfolio assessment and rebalance the portfolio when equities returns have decreased and interest rates on numerous fixed-income instruments have fallen. This will allow you to determine if your investments and the time frame in which they are made are appropriate for your risk profile, investing aim, and financial goals. This will also aid in the filtering out  underperforming and inappropriate investment avenues and the replacement of them with more appropriate ones. While all equities funds will be under pressure, search for funds that have lower losses than others and switch your investment to that fund. However, costs such as exit load, etc. should be considered.  It's also critical to assess if the fundamentals of your investments have changed, to allow enough time for your investments to develop, and to avoid fanning out every investment you've made. As a result, you can verify that you are on course to meet your financial objectives. SIPs should be continued Stopping or suspending Systematic Investment Plans in worthwhile mutual fund schemes is a mistake that will only slow down your progress toward your financial goals. Continue to invest in worthwhile mutual funds through SIPs. You will automatically receive additional MF units for the same SIP during turbulent times and downturns. When the fund's NAV rises as the market improves, this will lower costs in the long run. In fact, if your fund is performing well, you might want to consider increasing your SIP amount to reap greater benefits. As a safety net, invest in fixed-income securities Consider storing some money in fixed income instruments such as a bank Fixed Deposit and some minor saving plans for solid and predictable yields to protect your portfolio, meet short-term goals, and establish an emergency fund (during the COVID-19 epidemic). Debt mutual funds are another smart choice to consider, since they may function as a buffer for your portfolio during periods of high volatility in the stock market. Add gold to your investment portfolio Consider devoting 10-15% of your portfolio to gold, which has demonstrated its ability to serve as a portfolio diversifier, a hedge, and a store of wealth in these unpredictable times. Gold has gained +5.0 percent year to date, compared to +30.0 percent in the previous year. Your asset allocation should be reviewed and rebalanced Asset allocation is the process of investing surplus funds in a variety of asset types, such as stock, debt, and gold. Every asset class has a risk-return profile that is appropriate for a certain amount of personal risk appetite, investing objectives, financial goals, and time horizon. An intelligently designed asset allocation can help you manage risk and return by modifying the ratio of each asset in your investment portfolio based on your age, risk appetite, general investing aim, financial goals, and time left before achieving your objectives. If done correctly, asset allocation can eliminate the need to time the market and meet your liquidity requirements. Diversify within asset classes, but not too much. You must also verify that the portfolio is appropriately diversified within each asset class after the asset allocation is correct. In the event of a market downturn, optimal diversification among asset classes might help mitigate losses. Have a proportionate share of large-cap, mid-cap, and small-cap stocks among equity funds, for example. You might also consider investing in overseas funds for geographical diversity. To achieve the tax benefit, have a mix of debt mutual funds and bank FDs in your fixed-income portfolio. However, in an attempt to limit risk, do not over-diversify the investment portfolio, as this frequently proves counterproductive, causing the portfolio to become overcrowded and adding to the management load. For example, if you have too many large-cap mutual funds in your portfolio, they may all invest in the same firms and provide little actual value. Don't go along with the crowd Do not try to emulate or duplicate what your friends, relatives, coworkers, or next-door neighbours do when it comes to investing and portfolio management. There is no such thing as a one-size-fits-all solution. Keep your eye on your financial goals while keeping in mind your risk profile, investing purpose, and the amount of time you have to attain them. Take your time and don't invest on the heat of the moment.

What is the minimal academic requirement for obtaining such a loan? To be eligible for a loan, you must be a graduate. Are there any special professional standards that must be met in order to qualify for this type of loan? To be eligible for an online course loan, the candidate must be at least a graduate and have worked for their present job for at least one year. It makes no difference what industry they work in. What kind of paperwork doyou need to apply for these loans? Documentation for KYC (Know Your Customer) is necessary. A college offer letter and income documents will also be required of the candidate (bank statements for the last six months, IT returns). What is the scope of the loan? The loan pays for the whole cost of education, including tuition, library/laboratory fees, and living expenses (if any). What is the loan's duration? This loan has a maximum term of 10 years. Is there a moratorium on this loan, as there is for conventional college loans? A moratorium period applies to regular education loans. The applicant is not required to return the loan for the duration of the course plus one year or six months after obtaining employment, whichever comes first. There is no such moratorium on an education debt for online schooling. What is the interest rate on these loans? It begins at a rate of 9.0 percent per year. Is the loan exclusively available to accredited universities/institutions or even private edutech firms? Recognized colleges are preferred, however courses offered by commercial edutech firms may be evaluated on a case-by-case basis. What is the procedure for disbursing these loans? The disbursement method is comparable to that of traditional student loans. Following receipt of a request from the institution, the loan is released immediately to the university.

Money is frequently transferred from one bank account to another, or from one bank account to another in a wrong manner. However, UPI, net banking, and mobile wallet have greatly decreased the obstacles associated with banking transactions. You won't have to go to the bank to transfer money to someone's account because you can do it in a matter of seconds using your smartphone or laptop. If you sent money to the wrong bank account, here's how to get started: Step 1) Immediately notify your bank and local bank manager, providing them with all transaction details, including the time, the wrong account, and the intended beneficiary's account. Step 2) The bank can act as a facilitator, directing you to the bank and/or branch where the money was transferred, and you can ask that bank to reverse the transaction. If the beneficiary is a customer of the same bank, the bank may approach them and ask for their permission to reverse the transaction. Step 3) It's critical to keep track of all your communications with the bank and other banks (if relevant), as well as all transaction-related activity. If the recipient refuses to return the funds, you may have to take legal action, which may cost time and effort. Getting a case registered ? Going to court is another way to get your money back. A court case might be initiated against the individual whose account the money was unintentionally sent to if he refuses to repay it. This privilege emerges as a result of a violation of Reserve Bank statutes if money is not repaid. The linker is accountable for supplying accurate information about the beneficiary's account, according to Reserve Bank of India guidelines. The bank will not be held accountable if the linker makes a mistake for whatever reason. How to avoid losing money in a faulty transaction 1) A customer's responsibility as the remitter is to submit the correct information on the bank's website, including the accurate IFSC code and bank account number. It is preferable to double-check or triple-check before proceeding with a transaction. 2) Before conducting a larger transaction, consider transferring a little amount of money to check that the recipient has received the money (this can be done with a phone call). It's a lot easier to go after the bank for Rs.100 than it is to go after the bank for a few lakhs. 3) Keep the contact information for your local bank's branch ready and keep it for easy access in case there is a mistake and the recipient needs to be alerted as soon as possible, which may aid in the return of cash to the remitter's account.

If you die intestate (without a Will), your property will be dispersed according to the laws of succession, not your wishes. The law is completely unaware that you planned to leave your painting collection to your youngest son or that you wanted to gift all of your valuables to your daughter. Your assets are divided according to the general legislation. Most people feel that only those with a lot of money need to prepare a Will, however estate planning is necessary to ensure that your property is passed according to your preferences. You get to select what happens to your possessions after you die- When you prepare a Will, you get to choose who gets your assets. Whether it's a family mining firm, a historic collection of antiques, or just your savings, you should select who will inherit your possessions after your death, not the country's general regulations. People who are not connected to you, such as close friends or mentors, are not covered by these regulations. You can leave a legacy for your loved ones by writing a Will. A lawyer can assist you in drafting a Will. Why should someone else decide how your assets are dispersed when you are away? Here are a few reasons why having a Will is extremely important: 1. To avoid family feuds - If you die intestate, your estate can be a source of contention among your relatives. These quarrels have the potential to split your family apart. A categorical distribution of assets will ensure that the family's powerful members do not gain an advantage over the family's weak and vulnerable members. 2. To ensure guardianship of minor children - If you die before your children reach adulthood, their future may be jeopardized if they do not have a proper guardian. Only a Will can designate a testamentary guardian; otherwise, the court will choose guardians who will follow the law. You can also prevent natural guardians from taking charge of your children by appointing a guardian through a Will. 3. Having a Will Shortens the Probate Process - Probate is a legal process in which the validity of a Will is established before a judge. Regardless of whether or not you have made a Will, your estate will go through the probate process. Having a Will ensures that the procedure goes more quickly. 4. Appoint an executor - You might name an executor in your Will to help with the administration of your estate. If you do not appoint an executor, the court will take care of it. You have the option of naming a competent executor as part of your Will, which will protect your interests.

Will writing services are an important part of ensuring that your loved ones' rights are protected and that any conflicts between them are avoided. Many people, however, find the process of writing a will scary due to the legal jargon they may hear while speaking with a lawyer about their will. You don't need to engage an attorney to create an online will. The introduction of specialist websites that allow you to prepare your will online has recently made this procedure easier. While some people choose to use a lawyer, there are several benefits to making a will online that you may not be aware of. The following are some of the reasons why you should draught your will online: Convenience : It is more convenient to write your will online from the comfort of your own home. You are not bound by a lawyer's schedule, so you can plan an appointment whenever it is most convenient for you. If you leave a document at your lawyer's office and forget it, you'll have to return, which will cost you more money and time. Creating your will online offers you the flexibility to fill in any blanks as you remember them, as well as the time to acquire all of the essential paperwork. It's the same with changing your will; you'll have to see your lawyer again when you could do it online in a matter of minutes. When you use your device to view website pages from the comfort of your own home, you may easily change the executor of your will, update your financial information, add additional heirs, and make other changes. People dread going to a lawyer because it is difficult and time-consuming, but if you have a little estate, you may complete your will online in 30 minutes. It will assist you in receiving services at any time and from any location. Professional online websites usually use plain language in their forms and, if necessary, provide legal advice through their customer care. However, those with more complicated estates, whether they have several children from various partners, estates that exceed the estate tax minimum, or any other complicated situation, may find it more appealing to hire an attorney to draught their will. Value for money : Depending on the value of your possessions, a lawyer can charge you a lot of money to write your will. Keep in mind that the quality of craftsmanship and attention to detail is always reflected in the price. The cost of writing a will may deter some people, especially if they do not have a big estate. The cost of creating a will online, on the other hand, will be 1/10th of the expense of drafting a will offline, saving you a large amount of money. You will also save money on any acts linked to your will, such as printing papers, transportation, and further legal visits. Safeguard Your Family and Friends: Protect Your Family and Friends: One of the advantages of using an online will to form a will is that it protects your children's or loved ones' rights. Writing your online will on a trustworthy website ensures that your will meets legal standards and is kept up to date with any changes in the law, avoiding any claims that your will is invalid. It will aid in the better protection of the document. Make sure your will is safe and hasn't been tampered with so that there are no doubts. Finally, rather than relying on the law to divide your assets, an online will simplifies the process of acquiring assets for your heirs more faster and less expensive.

Have you been turned down for a loan, and not just once, but multiple times? The majority of the time, the cause is your bad credit score. Your credit score indicates how you use credit and how creditworthy you are. Your capacity and desire to repay the loan is determined by your creditworthiness. Credit bureaus like CIBIL, Experian, Equifax, HighMark, and others examine your credit behaviour and creditworthiness to provide a credit score ranging from 300 to 900. This is based on repayment information provided to credit bureaus by lenders. Credit scores are used by lending organisations such as banks, non-banking financial companies (NBFCs), and housing finance companies to obtain insights into their customers, assess risks, and make successful credit choices A credit score of 750 or above is generally considered acceptable. As a borrower or loan application, the higher the score, the better it shows your creditworthiness. Let's look at some of the things that might affect your credit score: 1. Failure to pay outstanding debts on schedule - Missing payments or failing to pay your bills on time reflects poorly on your creditworthiness. If this is a regular occurrence, it will have a negative impact on your credit score (as it is reported as delinquency). This factor is given a particular weight by each rating agency, and repaying debts should not be treated lightly. Not only should you pay your loans on time, but you should also pay your credit card bills, energy bills, and any other outstanding debts. Paying past due bills on schedule is always in your best financial interests in the long run. 2. Multiple loan and credit card applications - When you apply for a loan from one or more lenders, it is recorded as a hard inquiry for a new line of credit, which might lower your credit score depending on how much additional credit you apply for and the type of the loan (secured or unsecured loan). Similarly, if you have been applying for several credit cards and have a spotty repayment history for the ones you already have, your credit score will suffer. Furthermore, you run the danger of falling into a credit card debt trap. Keep in mind that asking for loans and credit cards at irregular intervals implies that you are frequently in need of money, which is a negative. Maintain an ideal amount of debt (about 25-30% credit utilisation) and a fair balance of secured and unsecured loans (the credit mix). 3. Using credit cards or consumer loans to make large expenditures – Making large purchases on credit cards and using the full credit limit is OK as long as you have the financial capacity to pay off all of your debts on time. However, failing to pay your bills or paying only a portion of them adds to your debt load. The credit score is negatively impacted by revolving credit (high credit use). As a result, make a conscious effort to maintain your credit utilisation below 30%. Similarly, using consumer loans to buy high-value things on a regular basis should be avoided because it might hurt your credit score. 4. Reducing credit card limits and/or cancelling a card – The credit utilisation ratio (measured as the entire outstanding debt on the credit card divided by the total credit limit on the card) rises when you try to decrease your credit card limit. As a result, the credit score drops since more credit usage is not seen favourably by credit information businesses for rating purposes. If your credit card limit was Rs 1 lakh and your outstanding dues were Rs 25,000, but you decided to reduce the credit card limit to Rs 60,000 (for whatever reason), your credit utilisation ratio will increase from 25% to 42% (beyond the ideal credit utilisation ratio of 30%) ––regardless of whether your credit is increasing in absolute terms. Also, keep in mind that cancelling your credit card will have no beneficial impact on your credit score or improve your credit utilisation ratio. It simply truncates the credit utilisation and history, which is then used to calculate the credit score. Your credit score is frequently influenced by your credit age to the tune of 15%. To prevent the negative consequences, rather than decreasing (or increasing) your credit card limit, use your credit card responsibly and pay your credit card bills on time. And, as much as feasible, resist cancelling the credit card if it does not charge outrageous annual fees and you receive a slew of incentives for using it. 5. Foreclosure of loans — While foreclosure of a loan might help you get out of debt, it can have a negative influence on your credit score, especially if it is a secured loan (home loan, car loan, etc.). This is due to the fact that it shortens your credit history and your credit account does not benefit the lender (in terms of interest). As a result, depending on the type of loan you have foreclosed and the source of funds for repayment, a lender may charge you a foreclosure fee. As a result, weigh the benefits and drawbacks before foreclosing on the loan. 6. Bankruptcy – God forbid, but if, due to your incapacity to repay loans, you have filed for bankruptcy—-a legal process—-and want to seek relief from your lender, your credit score will suffer as a result. Furthermore, you may be barred from future loan applications and compared to other bankrupt debtors. 7. Credit report error - Errors made by credit information firms while assigning credit scores might have a negative impact on your credit score. If you have a 'default' mark on a loan (secured or unsecured), but you are paying on time or have already paid it off, bring it to the attention of the credit bureau and/or the lender and address it. If you've paid off a loan in full, don't forget to request a closure letter or No Due Certificate (NDC) from your lender, as well as a statement of account(s), any original papers you may have sent to the lender, and a lien release from your assets. All of this would serve as proof for you and assist you in improving your credit score in the future. If your lender has not notified the credit bureau that your loan account has been closed, you must do it yourself (by writing to them and submitting the requisite documents as proof). As a result, review your credit report once a month to ensure it is clear of errors and has no negative influence on your credit score.

What factors go into determining credit scores? Payment history, amount due, duration of credit history, credit mix, and new credit are all factors considered by credit agencies like CIBIL. Payment history carries the most weight - around 35% of the time. As a result, someone with a perfect track record of on-time payments will naturally score well on this criterion. Amount owed: This criteria is often given a 30% weighting. This is the amount of debt a person has accumulated in relation to her entire annual income. This ratio should be as low as possible. Credit history length: This factor has a 15 percent weighting and is based on how long a person has been borrowing and repaying money. A longer history is seen to be preferable. Credit mix: This factor, which is usually given a 10% weighting, looks at the different types of debt a person has, such as credit cards, personal loans, and vehicle loans. New credit: This statistic, which has a 10% weighting, examines how many new loans a person has applied for. For Example: Sakshi Singh intends to purchase a new vehicle. She is concerned, however, that doing so would have a negative impact on her credit score. She doesn't want that to happen since she wants to purchase a house in five years and will need a large-ticket home loan to do so. Is her worry, however, justified? Let us assist Sakshi in understanding how a vehicle loan may affect her credit score When Sakshi filed for a vehicle loan, she was aware that her credit score might suffer a brief knock on a few metrics. She shouldn't let that worry her too much, though. In the long run, if she is a good borrower and pays her vehicle loan EMI (Equated Monthly Instalment) on time, her credit score will improve. She will score better on the 'Payment History' criteria if she has a clean payback record throughout time. Similarly, she will score higher on the 'Length of Credit History' criteria with such a payback history and if she is taking out a car loan for a 3-5 year term. While she may owe a bigger amount at the start of the loan when she buys her new automobile, if she pays the debt off on time, the amount owed will decrease, allowing her to improve her 'Total Amount Owed' score. Taking out a new auto loan and repaying it on time will benefit Sakshi's credit score if she keeps her other credit, such as credit card expenditures and personal loans, within reasonable bounds.

What is an overdraft line of credit? An overdraft is a type of short-term loan. It's most commonly utilised by firms to bridge the gap between short-term cash flow problems and long-term cash flow problems. Salaried people can use it instead of splitting up their FDs if they just require money for a short period of time. What is the process like, and how does it vary from a personal loan? The Overdraft Against FD facility is available 24 hours a day, 7 days a week and covers up to 85 percent of the value of the FDs stored with Bank. The interest rate is two percent more than the bank's FD interest rate. The interest rate on a personal loan, on the other hand, would be greater than the rate on an overdraft facility. And, because there is no opportunity to withdraw or redeem the FD partially, One would miss out on the total interest he/she could have received if he/she broke her FD. Other significant variations exist between a personal loan and an OD facility. For persons who don't have a credit history, OD against Fixed Deposit is an excellent option to acquire money. Borrowers without a credit history or credit score may find it difficult to obtain a personal loan. Compared to a personal loan, the application and paperwork process is substantially easier. ODs do not have an EMI system. Borrowers can repay whenever they choose as long as the FD is active. As previously stated, interest is only levied on the quantity of OD used and the length of time it was used. OD facilities, unlike personal loans, do not have prepayment penalties .

Fixed deposit are considered a safe investment option that guarantees consistent interest rates, special interest rates for senior citizens and no market-related risks, with income tax deductions. If you want to invest in a low-risk environment and earn attractive interest income, a fixed deposit is the ideal investment option for you. FD KYC Documents To comply with "Know your customer" guidelines for Banks and NBFCs prescribed by the Reserve Bank Of India, applicant should provide a certified copy of ID proof and Address proof. Eligibility Criteria to Open a Fixed Deposit You must be: an Indian citizen living in India Hindu Undivided Family (HUF) Sole Proprietorships Partnership Firms Companies Clubs Associations Family Trusts Societies Documents Required to Open a Fixed Deposit Account 1. For Resident Individuals Any one of the documents to be submited for ID & Address Proof Id Proofs Passport PAN Card Driving License Voter Id Job Card by NREGA Aadhar Card Address Proofs Passport Driving License Voter Id Job Card by NREGA Aadhar Card Pension Payment order Property/Municipal Tax Receipt Savings Bank Account statement/Post Office Saving Account pass book Accommodation Letter from Employer Documents by Foreign Authorities Latest Utility Bill of any service provider (electricity, telephone, postpaid mobile phone, piped gas, water bill) 2. For Company Certificate of incorporation. Memorandum and Articles of Association. A resolution from the Board of Directors and power of attorney granted to its Managers, Officers or employees to transact on its behalf. PAN copy of the company Proof of identity and address (as per KYC documents mentioned for individuals) of the authorised signatory of the company signing the application 3. For Partnership Firm Registration certificate Partnership deed Authorised signatory List Proof of identity and address(as per KYC documents mentioned for individuals) of the authorised signatories. 4. For HUF HUF PAN card HUF Declaration Proof of Identity and Address ( As per KYC documents mentioned for Individual) of the Karta. 5. For Trust & Foundations Registration certificate Trust deed Authorised signatory List Proof of identity and address (as per KYC mentioned for individuals) of the authorised signatory of the trust / institution signing the application. 6. For Unincorporated Association or Body of Individuals Resolution of the managing Body of such Association or Body of Individuals. Power of attorney granted to him to transact on its behalf. Proof of identity and address (as per KYC documents mentioned for individuals) of the person who is holding the power of attorney to transact the business on behalf of the Unincorporated association or Body of Individual. Such information as may be required to collectively establish the legal existence of such an association or body of individuals.

The IMPS (Immediate Payment Service) from helps you access your bank account and transfer funds instantly and securely. IMPS facilitates instant Inter Bank fund transfer on 24X7 basis. Funds can be transferred using MMID & Mobile Number or Account Number & IFSC. To enable an IMPS transaction, the involvement of the following participants is required: Remitter (Sender) Beneficiary (Receiver) Banks National Financial Switch - NPCI What are the benefits of IMPS? 1.Instant 2.Available 24 x7 (functional even on holidays) 3.Safe and secure, easily accessible and cost effective 4.Channel Independent can be initiated from Mobile/ Internet / ATM channels 5.Debit & Credit Confirmation by SMS Features of IMPS To enable bank customers to use mobile instruments as a channel for accessing their banks accounts and remit funds. This facility is easily accessible on any smart device or phone with an internet connection. Considered one of the fastest ways to transfer money between bank accounts. The service is available throughout the year and 24 by 7. Making payment simpler just with the mobile number of the beneficiary The per transaction limit on IMPS is Rs. 5 lakh (for all channels except SMS and IVR). Banks and non-bank entities (RBI authorized PPI’s) are offering IMPS to the customers across India. How to Transfer Funds Through IMPS ? Login to your mobile/internet banking account Select Payments and Transfer Select ‘IMPS’ as your method of fund transfer Enter MMID & Mobile no. or Account number & IFS Code or Aadhaar number Mention the amount that needs to be transferred Once the MMID is generated, the user can start using IMPS for fund transfer. Both sender & receiver get SMS confirmation. For using IMPS on mobile phones, a customer will have to register for mobile banking with his/her individual bank. However, for initiating IMPS using Bank branch, Internet banking and ATM channels, no prior Mobile banking registration is required.