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Enjoy tax benefits and experience the advantage of assured returns over the long-term with the Public Provident Fund (PPF) scheme Do you know which is the safest tax-free savings scheme in India? The answer is not tough. It's the Public Provident Fund (PPF). Introduced in 1968, the sole aim of this scheme was to offer investors a way to save money and grow their wealth in time with high returns. Another benefit of the PPF is related to income tax returns. Any balance in PPF is not subjected to wealth and income tax! Why is PPF Considered To Be The Safest Saving Option? Investment in the 21st century always carries market risks. No matter how good the company/mutual fund performs, any factor can have a massive impact on its returns. Let's take COVID-19 as the latest example. The stock market and mutual funds have taken a hard toll. In such turbulent times, people can get confused about where to park their funds and grow wealth. This is where the Public Provident Fund (PPF) enters. Since this is a government-backed scheme, you can be rest assured that all your money invested (principal) along with interest earned (returns) will be guaranteed and safe. Moreover, it has provided higher returns than most investment options. Hence the common man in India invests in a PPF. Want to open PPF account for minors ? Read more here How Much Can I Invest In A PPF? PPF is offered by the public sector (nationalized) banks. If you have a bank account in a nationalised bank, you can opt for the PPF service. If you don't have such an account, you will have to open one to apply for the PPF. Here are the necessary details for a new PPF account holder: Minimum contribution - You can invest up to 500 rupees per year (annual) Maximum contribution - You can invest up to 1.5 lakh rupees per year (annual) This contribution limit applies to both minors and adults. You can make a maximum of 12 contributions annually. Also, you would be happy to know that investment in PPF up to Rs 1.5 lakh per year and interest earned on it are both tax-free. This means you won't have to pay a single penny as a tax on the investment. What Is The Interest Rate Offered by PPF? The Government of India declares the PPF interest rate for every quarter (3 months). This means every three months; you can keep a tab on the rate of returns. Let us also inform you that PPF returns are way higher than Fixed Deposit rates of major Banks in India. As for the first quarter of the financial year 2020-2021, i.e. from April to June, the Government has fixed the PPF interest rate at 7.10%. This had dropped from the previous January to March quarter when the rate was set at 7.90%. Even with the drop, the amount being offered is better than most other tax saving schemes. What is the Total Tenure of a PPF? PPF is not just a regular tax saving investment. It's also a long term investment that grows with time. Many investors use this as a retirement fund. Some use it for their child's education fees. The total tenure for a PPF account is 15 years. You can invest for 15 long years. After the PPF expires, you can extend it for five years at a time. But please note that after the lock-in period of 15 years is completed, you cannot invest more money. You can only extend it and earn interest on your existing PPF balance. Public Provident Fund (PPF) vs Voluntary Provident Fund (VPF) - Key points to know before investing Can I Withdraw From My PPF During The Lock-in Period? Yes. You can make partial withdrawals from the 7th year of your PPF account. But this depends from bank to bank. You must check if they allow withdrawals and from which year onwards. Do note that you can withdraw money once per year. Can I Get A Loan Against My PPF? Yes. There is a facility for investors to apply for a loan against their PPF account. But this facility is only for investors whose PPF account has completed a minimum of 2 years and a maximum of 6 years. You can get up to 25% of your PPF account balance at the end of the 2nd year as the loan amount. For example: If your PPF account balance at the end of 2nd year is 80,000 rupees then you can get up to 20,000 rupees as the loan amount. The interest rate for loans taken against the PPF account is 1% per annum more than the PPF interest rate. Yes, if the PPF interest rate is 7% and you have taken a loan against your PPF, then the interest rate applied will be 7+1 = 8%. The loan tenure stands at 36 months, i.e. three years only. Tax Exemption Explained One of the most popular long-term investments for those saving for retirement is the Public Provident Fund. It has high interest rates and a slew of tax perks, tax exemptions, and capital security. The interest and returns earned are not taxable under the Income Tax Act. In recent years, it has become one of the most tax-saving strategies. PPFs pay a high interest rate and come with a slew of tax advantages. PPF offers a greater interest rate than most other fixed investment programmes of similar nature. PPF investments can be made in a flat payment or over a period of up to 12 instalments. For each financial year, the lowest investment is Rs 500 and the highest is Rs 1.5 lakh. The present interest rate is 7.1 percent per year, and the PPF account has a 15-year term. Interest income is tax-free , which implies that interest generated on the fund is tax-free. When it comes to bank deposits, the interest generated is taxed. As a result, if you are in the highest tax rate, you are likely to pay a significant amount of tax. In reality, other instruments' post-tax returns will decline considerably, making the PPF a smart investment decision when compared to other choices in the same category. Know everything about FORM H for the PPF Account - Read here

Decoding how to open an NPS account The National Pension Scheme (NPS) is aimed at providing financial security to people after retirement. It was launched in 2004 primarily for Government employees, but in 2009 it was revised to allow all citizens of India to be a part of the scheme. Am I eligible to be part of the NPS? If you are an Indian citizen (either resident or non-resident), between 18 – 65 years of age when you submit the NPS application, you are eligible to be a part oḤf the scheme. For NRIs, NPS contribution is subject to regulations prescribed by the Reserve Bank of India and Foreign Exchange Management Act. People in low-income strata aged between 18 -60 years can be a part of NPS-Lite through an aggregator and contribute till age 60. However, Overseas Citizens of India, Person of Indian Origin cardholders and Hindu Undivided Family are not eligible to open an NPS account. Before you consider opening an NPS account, it is important to know what are the different types of NPS accounts available for investment. The government provides two account options – Tier 1 and Tier 2. Which account should I opt for? 1. Tier 1 account: Tier 1 is the mandatory base retirement or annuity account. The amount collected in this account will be used to provide your monthly income when you retire. The money you invest in this account will be locked in for three years. You will only be able to withdraw money after the lock-in period, and it will be limited to 25% of all the contributions made. 2. Tier 2 account: After you register for a Tier 1 account, you will be given a unique PRAN (Permanent Retirement Account Number). Your Tier 2 account is a voluntary saving account linked to your PRAN. This account offers more flexibility on investments and withdrawals you can make. You can also transfer the amount from this account to your Tier 1 retirement account. All eligible people can open a Tier 2 account, except NRIs. What returns can I expect? Returns on the NPS are subject to market volatility, and they provide wide coverage for your retirement. You can find the returns of each scheme here. For instance, if you are 30 years old and you open an NPS account. You start with Rs. 1000 monthly contribution, and invest for 30 years, till you are 60. Over 30 years you will invest Rs. 3,60,000 and you will build a corpus of Rs. 22,79,326. If you purchase an annuity for the minimum allocation of 40%, you will get a monthly pension of Rs. 4,559. You can withdraw the remaining 60% of the amount – Rs. 13,67,596, as a lump sum withdrawal. How can I open an NPS account? There are two ways you can join the NPS. The first is by visiting Point of Presence – Service Providers (POP-SP). You need to fill out a PRAN application form by filling out your details, signature, scheme preference, photograph, and submit your KYC details that establish your identity and proof of address. After submitting the form, you need to track your application and make your first contribution. The second way to register is by online application. For this, you must have the following documents with you: Scanned copy of Permanent Account Number (PAN) and cancelled cheque in file size between 4KB – 2MB Scanned copy of your photograph and your signature in file size between 4KB – 5MB Netbanking details You need to login to eNPS and click on National Pension Scheme for registration. You’ll then add your details and the phone number linked to your PAN for verification. In the next step, you’ll choose your account type, pension fund manager, and investment mode. There are two mode options – Auto mode, that rebalances the portfolio based on your age, and Active mode, that provides you with the flexibility to make the allocations yourself. You then need to choose your nominees, upload documents, and make an initial contribution to get registered and generate your PRAN. Finally, you need to e-sign or courier the completed form to keep your NPS account functional. What’s the minimum amount to contribute? You need to make an initial contribution of Rs. 500 for a Tier 1 account, and Rs. 1000 for a Tier 2 account. Contributions to the Tier 1 account have specific requirements. You need to make at least one contribution a year, and the minimum amount per contribution is Rs. 500. Overall, you need to contribute at least Rs. 1000 a year. For Tier 2, there’s just one rule that the minimum contribution is Rs. 250. Do I get tax benefits? Yes, you can avail tax benefits under the Tier 1 account and claim under Sec 80 CCD (1) within the overall cap of Rs. 1.5 lakhs exemption under Sec 80 CCE. You can also avail additional tax deduction of up to Rs. 50,000 under subsection 80 CCD (1B). You will also get tax benefits on 25% of the partial withdrawal you make before 60 years. Also, up to 40% of the lump sum withdrawal after age 60 will be exempted for tax. Can I withdraw from NPS for a COVID-19 emergency? Yes, the Pension Fund Regulatory Development Authority of India has allowed for partial withdrawal from NPS for the treatment expenses in case you, your spouse or children are COVID-19 positive. You need to submit a medical certificate and a formal request for withdrawal. You need to be part of NPS for at least three years, and you can withdraw not more than 25% of your total contribution.

Union Budget 2020 introduced a new, unexpected, and yet not much change in the tax rate regime. It empowers you with options. You can choose whether to continue with the old 2019 tax regime or follow the new 2020 tax structure. Let’s explore! Choose your Tax regime and Plan your taxes for the Financial Year 2020-21 Union Budget 2020 introduced an optional New personal Tax Regime (NPTR), with lower tax rates and minimal deductions. However, every taxpayer needs to compare and understand the 2019 and 2020 tax structures to calculate their profit. Our Honourable Finance Minister Nirmala Sitharaman introduced the Finance Bill 2020 in Parliament on 1st Feb’20. This budget proposes various changes in personal income taxes and came under effect from 1st April 2020, i.e., FY 2020-21. Budget 2020 inclusions: The Government of India announced Union Budget 2020 with new tax slabs and low tax rates. And, lower tax rates are the brightest stars of this budget. It reduced the tax rates for different taxable income slabs in the new regime. The income tax rate, for example, the individuals from 5-7.5 Lakhs taxable income slab have to pay, has almost halved as compared to the old regime. How it has passed on to the people belonging to different income groups can be easily understood from the table below. It shows the comparison of tax rates between the last and current financial years. But, does this mean that you have to pay less tax. No, the government gave lower tax rates but deducted few perks from the previous tax regime. Budget 2020 exclusions: The rebates came at a price. One can think just by looking at the above table that he or she has received tax benefits. But, before reaching this conclusion, one must understand that with reduced tax rates across slabs, the government has also removed the deductions and exemptions that an individual used to enjoy with the old regime. So, if you want to enjoy lower tax rates for your taxable income, you have to give up your exemptions and deductions. Taxable income is your total income minus the exemptions allowed by the government and availed by you. What are these exemptions and deductions? The government allows taxpayers to avail reduction or exemption in the income tax under section 80C, HRA, Standard Deduction, etc. In the older tax regimes, the Government offered deductions to taxpayers, if they invested in schemes like LICs, Equity Linked Savings Scheme (ELSS), Postal Saving Schemes, Medical insurances, mutual funds, etc. If an investor, for example, invests around Rs. 40,000 in an ELSS, then the same amount is deducted from the total taxable income of the investor. Less taxable income will attract lower tax rates. The Government excluded almost 70 deductions from the new tax regime. It will result in higher taxable income, which might attract different tax rates. Yet, approximately 50 exemptions are still there in the new budget. These include standard deduction on rent, agricultural income, income from life insurance, etc. Which regime is better for you? Well, before concluding which regime is better, you have to consider your income and preferences. The best part about the union budget of 2020 has made the tax regime optional. Depending on your preferences and profit, you can either continue with the old tax regime or choose the new one. According to Finance minister Nirmala Sitharaman herself, as stated during her budget 2020 speech, a taxpayer with an earning of Rs. 15 Lakhs per annum will have to pay a tax of Rs. 1.95 Lakh approximately following the new tax regime, as compared to Rs. 2.73 Lakh he/she has to pay following the old regime. An individual may choose a new personal tax regime (NPTR) for deduction of tax from salary income. But, once selected and intimated to the employer, you cannot change it during the year. You can modify it only at the time of filing the income tax return. So, one should take the decision only after considering all the points. The best way to choose is by looking in detail over the different aspects of his/her income. What are the sources of income, how much one wants to have as savings, etc., are the points to consider. There are many websites, including the Income Tax Department Government of India, that provide free tax calculators. You can use it to compare and understand what best suits you. People with taxable income up to INR 5 Lakhs or new joiners can reap benefits from the new regime. Now, you need not hire professionals to do your taxes and get better returns. Also, the new regime will help to control the advertisement of insurances and policies for tax savings. But people who have already invested much in tax saving options, or people with higher taxable income will have to think twice before choosing the tax regime. The general trend seems to suggest that an individual with lower income will opt for the new option, and the people falling into high-income slabs may continue with the old. The sentence formation could be revised

Prudent investment into various asset classes is a time tested way of increasing your wealth. Based on your age and risk appetite, you can choose your investment goal and chart your roadmap. The other side of the coin is tax planning. As wealth grows, so will be the necessity to have a good tax plan that will help you save a substantial part of your wealth. One such investment tool is ELSS (Equity Linked Saving Scheme), that not only offers higher returns on your investments but also qualifies for tax benefit under Section 80C (Income Tax Act 1961). What is ELSS? It is a category of diversified equity mutual fund that has a majority of its corpus invested in equities; therefore, its returns reflect returns from equity markets. Being a diversified equity fund, investors will enjoy both capital appreciation and tax benefits. It comes with a three-year lock-in period and without any age limit to investment. Though, it is recommended that one should start it early. As a practice, it is always advisable to be aware of the benefits, eligibility and the nature of the fund you invest in. As for ELSS, let us navigate and see each of the factors in detail below. Why Should One Invest in ELSS and What Is The Benefit Under Section 80C? The Association of Mutual Funds in India (AMFI) and the Securities and Exchange Board of India (SEBI) have clearly spelt the investment guidelines on their portals. Simply put, any investor, willing to lock in funds for three years(minimum), should look at ELSS as a great option. According to the Income Tax Act, taxpayers are eligible for benefit under Section 80C and can gain a maximum advantage of up to Rs 46,800/. Besides this, long term capital gains would be taxed at 10% on investments exceeding Rs 1,00,000. Investors can use the SIP (Systematic Investment Plan) option to put their money starting with Rs 500 as a minimum or opt for a lump sum option. SIP gives you the benefit of rupee-cost averaging and compounding that will help you tide market volatility smoothly. By adopting the SIP route, you are staggering your investments, which brings down the risk considerably. As an investor, you can also opt for a dividend option to have some cash flow during the lock-in period. Being a diversified fund in nature, ELSS, therefore, gives you a great option of growth as well as dividend. These are the reasons why ELSS has emerged as an excellent prospect for long term fund creation. For anybody novice to the equity markets, ELSS is a great way to begin and gain knowledge and exposure to equities. Risk Assessment and Mitigation As an asset class, equity is high risk but equally has the potential to give phenomenally high returns, and this is the underscoring challenge that an investor needs to be prepared for. Owing to constant fluctuation in Net Asset Value (NAV), equity funds tend to carry high risks. Because ELSS funds give the option to remain invested for a more extended period, these risks can be mitigated, and you can reap its benefits in the long run. Top ELSS Funds Current Market Volatility due to the Pandemic As the Coronavirus pandemic has brought the entire world to its knees, Global markets are equally affected and have taken a lot of damage. While the carnage seems never-ending, we humans need to stay hopeful and look for the light at the end of the tunnel. Human history has witnessed many such epidemics, and we have overcome all of them sooner or later. In the same vein, stock markets will re-emerge sooner or later. Most experts would opine to buy stock in these times when the prices are down and wait patiently for markets to improve and regain in the long term. Keeping a horizon of 5 years, investors should hold a long view and not focus on short term losses, as this Pandemic is a once in a century occurrence and not a typical business cycle syndrome. Linking it to the ELSS, as explained earlier, the rupee cost averaging methodology in SIP ELSS buys more units when the markets are low or down (as now) and buys fewer units when the market normalizes, therefore benefitting from both scenarios. Conclusion Therefore, ELSS( Equity Linked Saving Scheme) is a great way to safeguard yourself during this Pandemic by staying invested and reaping long term benefits of wealth creation.

Reliance Digital And Its Hybrid Online/Offline Strategy When Reliance Digital launched in 2007, most people saw it as a generic electronics offering from one of India’s largest conglomerates, Reliance Industries. Cutting to 2020, Reliance Digital is India’s biggest electronics goods retailer. It has leveraged the techno-retail innovations to develop a hybrid online/offline strategy that covers all categories of consumers and maximizes sales and reach. In the early days of the entry of e-commerce giants, the electronics goods segment was thought to be impossible for online shopping. Most people preferred visiting an offline store, checking the product’s features, working condition, touch and feel, bargaining discounts and getting the purchase in their hands straight away. Therefore, Reliance Digital initially focused on offline service delivery, quickly establishing itself in important locations countrywide- presently, it has 8000+ stores. It has made good progress in expanding the range of electronics items, thus overtaking rivals like Croma in the offline arm of the business strategy. Reliance Digital sells everything from home appliances to smartphones with over 200 top national and international brands available, including the in-house brand called LYF. Just as with Jio (the game-changing data service from Reliance), Reliance facilitates all customers to buy consumer durables regardless of their economic status. Jio stores are now associated with Reliance Digital, making a strong brand connect in people’s minds. Different Strategy The two modes of Online-to-offline commerce offered by Reliance Digital that are complementary and not competitive in terms of channelizing sales through multiple funnels. A. People can browse products online, compare specs in one go, use exclusive discounts and even pay online or at the store. They can pick up the item from an offline store without waiting. B. People who prefer to shop offline, touching, feeling and getting a trial can then get online payment with discounts or EMIs while picking up the product straight away. These options target consumers who may live far away from service coverage locations. It also captures customers who distrust placing orders online. Customers can quickly buy products online and pick up from a nearby store, eliminating any waiting time as they can control when they receive their purchase. 10% of Jio Store’s revenues have come from catalogue sales in 2019-20. There is the third mode of pure online shopping, using the EMI plans or offers and home delivery from a nearby Reliance Digital Store. If a particular model or color is out-of-stock, this offline/online business model allows super-fast delivery with the minimum waiting time. Another game-changing advantage is the potential of having service centers attached to the Reliance Digital offline stores (ResQ). People can drop off items needing servicing or even return items easily while being able to track the status online.

Digitalized Health EMI Network Card introduced by Bajaj Finance Ltd. - the investing and lending arm of Bajaj Finserv is a gamechanger in the affordable healthcare domain. As the cost related to healthcare services continues to rise in India, there has always been a dire need to make healthcare finance hassle-free and feasible. Now that Bajaj Finance Limited has launched digital health card, it will not take much time for middle class individuals to extract the best out of it. A multitude of benefits is imparted by this dynamic card, emphasizing the uncomplicated conversion of medical expenses into no-cost EMIs. Paperwork has always been a tedious experience for most people aiming to avail any service. A prominent benefit of this card is Zero documentation. Moreover, within a single click, it gets activated and provides up to Rs. 4 Lakhs as financing. From surgery to diagnosis, from specialized treatments to pandemic treatments, efforts have been made to make this card utmost functional. This card is made accessible over the dynamic Bajaj Finserv Wallet app, and therefore, users can access it with the help of their mobile itself. To unlock the utility offered by the card, a cardholder simply requires integrating a mobile number, verifying the OTP and paying the one-time registration fees of INR 707. ● Only 1 player in the market: Bajaj (part of the Bajaj Group) As of date Bajaj Finance Limited is the only player in the finance market offer a digital healthcare card. Bajaj Finance Limited is a leading corporation of the Bajaj Finserv group, it is a diversified NBFCs operating in the Indian market. It cater to approximately over 36 million customers across the nation. ● Who can avail this card? The criteria related to the eligibility that need to be fulfilled by an individual who wish to avail the services offered by this card. This card is only available to those users who have a 750 and above CIBIL score, are salaried or self-employed, and fulfilling the minimum age criteria. As far as the New Bajaj Finserv users are concerned, they are required to upload the NACH mandate and KYC documents at any of the enlisted clinics and hospitals to avail the benefits offered by this card. ● Benefits of the Card 1. Easy Activation To instantly activate this digital health card, a user simply requires an online application and requires entering the registered mobile number. After the OTP verification, pre-approved offers can be viewed, and the moment, a one-time fee is paid, the card gets activated instantly. 2. Hassle-free EMI payment plans If there are multiple medical bills, this card does a brilliant job to split them into No Cost EMIs, aiming for the gradual repayment as per the convenience of the cardholder over the tenure of up to 24 months. 3. Addresses the medical need of the entire family What makes this card, more appealing, is that one single card can be used for multiple members of the family across cities. That is how it becomes a valuable instrument meant to address the medical needs related to the entire family, embracing the needs of a spouse, parents, siblings, and of course, children. 4. Versatility In addition to any general surgery, a few specialized treatments that are offered by these medical brands include diagnostic care, stem-cell treatments, orthopedics treatments, bariatric surgery, cardiac surgery, homeopathy treatments, opthalmology treatments, urology treatments, maternity care, ENT treatments, oncology treatment, hair transplantation, slimming services, cosmetic treatments, and many more. Even urgent medical needs, too, are catered to by this exclusive Digital Health EMI Network Card. 5. Resourcefulness As far as the resourcefulness of this card is concerned, there are approximately 5,500 listed lifecare partners spanned across 1,000 Indian cities. More than 800 treatments have been covered under this card, and that indeed, makes medical services more accessible than ever. A few prominent names involved are Apollo Hospitals, Dr Batra's, VLCC centres, Manipal Hospitals, Columbia Asia Hospitals, Sahyadri Hospitals, and Ruby Hall Clinic. 6. Complimentary offerings and discounts Customers also become eligible for complimentary insurance of Rs. 1 lakh, related to personal accident, with a validity of 1 year on purchasing this card. It is also possible for the users of this card to avail discounts offered by varied medical brands on their products and services. ● Why should one avail it during the current pandemic? The current pandemic is crisis of unimaginable scale. This healthcare card offering by Bajaj Finance Limited will be a blessing for millions of Indian, the card is competent in addressing any urgent medical emergency. This resourceful card can be swiped at any state or city in India, no matter from which city or state you have got this card. Be it multispecialty hospitals, hair restoration clinics, dental care clinics, pharmacies, slimming and wellness centres, diagnostic care centres, stem cell institutes, a user can easily access this card through using the Bajaj Finserv Wallet app, thereby, making it a must-have.

UPI - Virtual Payment Address In the year 2016, The National Payments Corporation of India launched UPI or Unified Payments Interface. This is a payment system that allows users to transfer funds between bank accounts using their smartphones through a UPI mobile application. It is one of the most common payment methods used today, making it easier and faster to make transactions. The VPA or a Virtual Payment Address is a unique financial ID that is provided to each user. You can send and receive funds into your bank account directly using just the VPA. There is no need to remember bank account details or IFSC codes like you need to with traditional funds transfer methods such as NEFT or RTGS. How to Create VPA To make use of any UPI app, you need to create a VPA. You can get your VPA through your bank directly if the bank is UPI enabled. For UPI apps of banks, you need to download the app on the smartphone, which uses your phone number registered with the bank. There are also independent UPI applications such as PayTM and Google Pay that can be used to create a VPA. Download the UPI application that you wish to use and follow these steps to create your VPA: Provide the details of the bank account that you want to link to your VPA. Choose the option “Create VPA.” Users can provide their name, phone number or any other option that is easy to remember as their VPA. Most apps let you set your preferred VPA while others will give you a few options to choose from. The VPA looks similar to an email ID. For instance, if you create a VPA address for Canara Bank, your VPA will be @canarabank. Once the availability of the VPA is confirmed, you can use it for your financial transactions. The next step is to create a UPI PIN which is a unique 4-6 digit number. This is used to authorize your transactions through the UPI app. Now, you are ready to use the VPA to send or receive money. How to Use the VPA You can have a single VPA linked to multiple bank accounts or an individual VPA for each bank account. Sending money using VPA To send funds using a UPI app, you can choose the “Pay with VPA” option. Then, enter the VPA of the third party that you wish to send money to. Select the bank account you would like to use for the transaction. Enter the UPI PIN and authenticate the transaction to complete the transfer. Benefits of UPI UPI apps have become the most common mode of payment. There are several advantages of using these apps: ● Zero transaction fees: The costs involved with UPI transfers are so low that banks and apps are offering them for free to customers. ● Easy transactions with merchants: UPI transactions are feasible even for small businesses. Therefore, these apps can be used for small transactions as well. This avoids dealing with cash and reduces trips to the ATM. ● Hassle-free: With UPI transactions, you do not have to remember bank account details, IFSC codes or any other details. All you need is the VPA or the QR code to make transfers instantly. ● Security: Using UPI apps does not require you to provide your bank details or card details when you are making a transaction. Thus, your details remain secure. In addition to this, all the applications are regulated by the Reserve Bank of India. ● You can make transactions anytime: You can make use of a single device to access all your accounts. This allows transactions on the go. UPI transactions take place even on public holidays. The app can be used 24 x7, and the funds are transferred instantly. ● You can receive funds: It is also possible to get payments from customers and clients or form any third party account. You can request payment and have the funds transferred to your bank account directly. ● Rewards and cashbacks: UPI apps provide cashbacks for making utility bill payments and bank transfers. These reward points and cashbacks can be redeemed against future transactions. This helps you save money. ● Easy E-commerce transactions- Most e-commerce portals allow you to make payments using UPI apps. This means that you do not have to enter your credit or debit card details or bank details. This is the safest and most hassle-free option to make transactions online. Limitations on UPI Transfer There are some limitations that you need to take into consideration when using UPI apps: ● You can only make transfers to accounts that are linked to a VPA. ● UPI apps do not function optimally if there are any issues with your smartphone. ● There are limitations on the maximum amount that you can transfer each day. UPI is an IMPS linked application which allows you to transfer up to only Rs.1 Lakh per day. ● The transaction limit per transaction varies from one bank to another. This ranges between Rs.10000 and Rs.1 Lakh. ● In most UPI apps, the maximum number of transactions per day is limited to 20.

ULIPs ULIPs A popular option for investors is through mutual funds. They are investment vehicles that pool the money of many investors and invest it in a way to optimize returns. They are market-linked products, and their function depends greatly on the ups and downs of the market. The rise of mutual funds has led to the growing popularity of a similar market-linked product (not entirely though) and has captured the minds of early investors. These are the Unit-Linked Insurance Plans or (ULIPs). What Are ULIPs? Arey They The Same As Mutual Funds? ULIPs have a mix of insurance products coupled with investment products. ULIPs are considered as one of the best financial products for long term wealth creation along with life cover. It’s quite simple — when you invest in a ULIP plan, you have to pay a premium. The asset management company (manager) then takes a part of that premium and invests it in company bonds, government bonds, shares, etc. The other part is used for a life cover that is part of your plan. This takes places in two parts — 1) The fund manager invests one portion of the invested amount towards equity, debt funds. 2) He invests the other portion of your money towards a life insurance product which ensures that your family/nominees get a hefty sum in case of your untimely death. The fund managers save you from the hassle of tracking your investments and adjusting as the market changes. Furthermore, insurance companies approach investors to gather money for investment. Seems a lot like mutual funds, isn't it? The Dual Dividend of ULIPs ULIPs offer a dual benefit that attracts a lot of investors. They are well-designed financial products and offer a range of services. As one part of the premium goes towards life cover, it provides security to your family/nominees in case of policy holder’s untimely death. The other part, which is invested in the share market and fixed-income securities are a great medium to allow investment growth over a long period of time. Insurance is a long term product, and with recent changes brought by IRDAI, it is mandatory for ULIPs to be part of lock-in periods. This period is anywhere from 3 years to 5 years. As an investor, the fruits of your investment always depend on — TIME. The longer you hold on to it, the better, bigger, and smarter your returns. Furthermore, ULIPs allows great flexibility in terms of allowing investors to choose — What plan to invest in and for how long? To switch from one type of fund/plan to another without much hassle. Advantages and Disadvantages of ULIPs Finance Long Term Financial Goals As iterated earlier, ULIP plans are best for long-term wealth creation. This wealth creation goal can be linked to any of the following — For your joyous retirement years. For supporting your child's elite college education. For celebrating your child’s marriage. As time plays a huge role in getting the best returns out of ULIPs, they reap the largest benefits when invested early and regularly. Flexibility ULIPs are smarty customized financial products and offer the ease of choice with the ability to switch portfolio plans between debt and equity-based financial products. These depend on the investors’ risk appetite as well as market performance. Great returns and tax benefits One of the lesser-known features of ULIP plans is that it is eligible for a tax deduction under Section 80C. Keeping in mind the returns of the policy, investors can avail tax benefits under Section 10(10D) of the Income-tax Act. The Disadvantages — High charges ULIPs, although being financially sustainable products, bring with them a host of charges, particularly in the first five years of premium payment. These are charges under a wide range of names such as — Premium Allocation Charge: Deducted as a fixed percentage from the premium paid in the initial years, and includes services like renewal expenses and intermediary commission expenses. Fund Management Charge: This fee is imposed on fund management by the insurance company. It is deducted before arriving at the NAV figure, and the max charge cannot exceed 1.35 per cent per annum of the fund value and is charged daily. Fund Switching Charge: While ULIPs offer great flexibility with fund switching, there are charges involved for the same. It can range from anything between Rs. 100 to Rs.250, depending on the company, policy, fund manager, etc. though the charges are levied only after a certain number of free switches per year. Conclusion If you are looking for a financial instrument that covers both insurance and investment, then look no further than ULIPs — They are best suited for individuals with a long term financial plan of wealth creation and insurance. Whereas mutual fund investors need a lot of risk appetite as the money can grow or shrink depending on market movements.