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Mutual funds are currently one of the most popular investing solutions. A mutual fund is an investment vehicle formed when an asset management company (AMC) or fund house aggregates money from a number of individual and institutional investors that share similar financial goals. The pooled investment is managed by a fund manager, who is a finance professional. The fund manager invests in securities such as stocks and bonds that are consistent with the investing mandate. Mutual funds are an excellent way for individual investors to gain exposure to a professionally managed portfolio. You can also diversify your portfolio by investing in mutual funds, as the asset allocation will cover a wide range of instruments. Investors would be assigned fund units based on the amount invested. As a result, each investor will experience profits or losses that are directly equal to the amount invested. The fund manager's primary goal is to maximise returns for investors by investing in assets t

Most consumers choose the cheapest motor vehicle insurance only to be disappointed later when their vehicle is stolen, involved in an accident, or when selling the vehicle. When you acquire car insurance online or offline, it protects your interests as the policyholder in a range of situations, just like any other type of insurance. Some of the primary reasons why one should invest in motor insurance online and ensure timely motor insurance renewal are as follows: Liability is reduced. Damages are paid for. It is less expensive to purchase auto insurance online. Hospitalization is covered. In the event of death, the family receives recompense. Pay your premiums and you'll have coverage at all times. Each of these reasons has been discussed in detail in the following sections. Motor Insurance Reduces Liability Because third-party automobile insurance is required in India, it automatically protects vehicle owners from accidents caused by the policyholder. For exampl

Medical emergencies can strike at any time. Given today's rising inflation and escalating medical costs, an unexpected medical procedure might devastate your life savings like a pack of cards. The youth are constantly preoccupied with work and relationship goals; they are unlikely to think about health insurance. Most young individuals believe that health insurance is only for the elderly and married people. Some people may consider health insurance to be an extra expense that will deplete their funds. Few people believe that their job health insurance is adequate. However, it is more prudent to purchase health insurance before the age of 30 rather than after the age of 40. Here are ten reasons to buy health insurance at an early age. WAITING PERIOD: There is a waiting period in health insurance policies during which the insured individual cannot file a claim, even if it is a medical emergency. The majority of health insurance policies have a waiting period of 30 to 90

The first human case of the novel coronavirus disease (COVID-19) was reported in December 2019, and the total number of patients has become 102,034,770 worldwide (according to Worldometer). To date, there have been 10,720,971 confirmed cases in India and, a total of 10,394,352 people have recovered, but for those still suffering from the disease, it is critical to get the best medical care possible. Scientists have succeeded in developing an efficient COVID-19 vaccine. However, until we receive a vaccine shot, we are in a perilous scenario that necessitates the most stringent safety precautions to protect our loved ones. In today's world of uncertainties and potential health dangers, a health insurance plan acts as a financial shield while also protecting your health in the best way possible. Among the several actions and efforts undertaken by the Indian government, the insurance industry has also developed different coronavirus-specific basic and standard policies. What i

How simple is it selecting the best funds from approximately 40 mutual funds and hundreds of schemes? It’s certainly not simple. Suppose we’re choosing a few. Is those funds going to be the best? Not Sure. So how do we select the best funds in this challenging and uncertain task? Therefore, don’t go to the Best. Select the right thing for you. Let’s see an instance for a better understanding of things. Consider that you went for Apparels shopping. You’re not just choosing what looks great. First, you’re looking for what kind of clothes you need. Whether formal or casual. You then choose your size. Then you see the one that looks best. The question then is whether or not the pricing is justified. Finally, you’re going for the one that’s right for you. This is how you’re shopping for the correct thing for you. The choice of the fund should be based on your goals, time horizon, risk appetite that informs you what asset allocation and categories to look for and then selec

*1. BOOK VALUE PER SHARE* The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. The term "book value" is a company's assets minus its liabilities and is sometimes referred to as stockholder's equity, owner's equity, shareholder's equity, or simply equity. Common stockholder's equity, or owner's equity, can be found on the Balance Sheet for the company. In the absence of Preference Shares, the total stockholder's equity is used. *Concept of Book Value per Share* Book value per share is just one of the methods for comparison in evaluating a company. Enterprise value, or firm value, market value, market capitalization, and other methods may be used in different circumstances or compared to one another for contrast, e.g, Enterprise Value would look at the market value of the company's equity plus its debt, whereas Book Value per share only looks at the e

Of late we see that there is a lot of interest in Mutual Fund Dividends and Systematic Withdrawal Plan (SWP) as income solutions for investors. Many investors prefer dividend options for regular income, but there is a growing interest in SWP in the last few years. Let us now compare and contrast the two solutions. Let us also discuss various factors, which can help investors make informed decisions. *What is dividend option?* In Dividend Option the profits made by a scheme are distributed to investors at regular intervals as dividends. SEBI stipulates that dividends can be paid from accumulated profits. Investors should note that, as per SEBI regulations, only realized profits (when portfolio securities are sold at profit) are eligible to be distributed as dividends. Fund Managers may not pay the entire profit realized by the scheme during an particular period as dividends. They may retain certain amount of profits in the accumulated profits reserve, so that they can continue to m

We spend a huge amount of time trying to make smart decisions with our money. It is possible that we could add just as much value—if not more—by avoiding dumb ones. You, as an investor, must get acquainted with Loss Aversion. It holds that all else being equal, losses fundamentally loom larger than gains. People talk about risk aversion. But there is also something call loss aversion. It is not that people don't like taking risks. What people don't like is losing things. We feel losses twice as keenly as we feel gains. So, we hate losing Rs 100 as much as we like making Rs 200. People that go into casinos can validate that when you go in at the start of the night, people tend to spend their chips at the roulette table very carefully, and try and lose money as slowly as possible. But when they get to the end of the night, they just have a few chips left in their pocket, they tend to go for really high risk bets. So, people move from being risk averse at the beginning of the e

If you had a magic lamp with a genie who could grant you 3 wishes, what would you ask for? I am sure one of your wishes will be for more money (probably a lot of money). If so, you are not alone. Almost every one wishes he had more financial freedom in his life. Sadly, most of us try to grow our wealth in the wrong way. It is our belief that it is all about working harder or longer hours. But the secret is not about how hard you work. It's about changing the way you think about money. What is required is how to develop a powerful wealth mindset. It's time to unlock your true money making potential and liberate yourself from financial worries once and for all. Use the law of attraction to overcome your limiting beliefs about money, so that you can generate the wealth in abundance. *Activating the Law of Attraction* Law of Attraction is one of the most powerful forces in the world. It surrounds us, affects us and can be used to positively impact our future. Like gravity, it

The Married Women's Property (MWP) Act was enacted with a view to protect the properties of women against the creditors. Under MWP Act all the properties that belong to the women gets insulated and protected from all the other court attachments or any income tax department attachments that the husband has run up. Let's take an example of a business family; the family could be a trader or a manufacturer or any other business. In due course of business there are some credit limits or there are bank loans, which have been taken by the business. The bank secures these credit limits against the assets of the business and also takes a personal guarantee of the owner of the business which could be the husband or the family. In case of the untimely death of the husband the bank starts recovering their loans and in the process they liquidate the assets of the business and also they attach the properties that belong to the guarantor, which in this case is the husband. In order to p

Speculation can be fun. But investing is not supposed to be fun. Wise investors saw it for what it is: a temporary price adjustment based on nonfundamental factors. Some people like to keep a small portion of their money in cash for exactly this kind of speculative event. Speculation is fun. It's why a lot of people love investing, and if you speculate with only money you can afford to lose, events like these can be exciting and sometimes profitable. If you are new to investing and don't understand the difference between fundamental value and market price, this is not for you. If you are considering putting money on the line that you need for your present or future security: stop, breathe, and walk away. Just like you wouldn't take your rent money to Las Vegas, don't put your life savings on the line trying to guess what the herd will do next. If you can't afford to be wrong, don't make the bet. And certainly not with money you cannot afford to lose. *Bore

The following exercise is designed to help you clarify your vision. Although you could do this as a strictly mental exercise by just thinking about the answers and then writing them down, I want to encourage you to go deeper than that. If you do, you will get deeper answers that serve you better. Start by putting on some relaxing music and sitting quietly in a comfortable environment where you won’t be disturbed. Then, close your eyes and ask your subconscious mind to give you images of what your ideal life would look like if you could have it exactly the way you want it, in each of the following categories. *1. First, focus on the financial area of your life.* (This is most important for Financial Services Intermediaries.) What is your annual income? What does your cash flow look like? How much money do you have in savings and investments? What is your total net worth? Next How would you like your home look like? Where should it be located? Does it have a view? What kin

First of all, why do we even care about sales forecasts? In one word: planning. If you can accurately predict how many sales you can close every month or every quarter, you can plan ahead to make sure you have the budget, the supply, and the wherewithal you need to close and service those new sales. On the flipside it should give you insight into if and when it’s time to investigate new sources of lead generation for your sales efforts. If your forecasts look low, it’s time to make a change. Business decisions are made by looking at previous results and upcoming projections based on that history. If you have wholly inaccurate projections, it will hinder your ability to make good decisions moving forward. Let’s start by taking a look at the simple definition of sales forecasting: *Predicting how future sales activities will result.* A prediction of how many deals will close in a given time period. Makes sense, right? Any marketer or business owner should be able to tell you why

We have discussed a number of times in our blog that Systematic Investment Plans is the ideal way of investing for your long term goals. An important factor in wealth creation is investment tenure due to power of compounding over time. Longer your investment tenure, greater is the effect of compounding. Mutual fund SIPs enable you to start investing small amounts from your regular savings. Over long investment tenures, SIPs can help you accumulate wealth needed for your different life-stage goals. Mutual fund SIPs have become one of the most popular investment vehicles for retail investors. As per AMFI data more than Rs 1 lakh Crores was invested through SIP is FY 2019-20; total SIP investments in the first three quarters of this fiscal year stood Rs 71,349 Crores. Most of the SIPs in India are made in actively managed equity mutual fund schemes. Over the last few years, passive funds like Exchange Traded Funds (ETFs) and Index Funds have been slowly gaining traction in India. The C

ELSS or equity-linked savings schemes are equity funds which are designed to offer tax benefits under section 80C of the Income Tax Act. ELSS provides you with high returns compared to fixed deposits and public provident funds because they primarily invest in equity. They come with a low lock-in period of 3 years compared to other tax-saver investments. The three-year lock-in period qualifies for a tax exemption under section 80C of the Income Tax Act which allows maximum tax exemption of ₹. 1,50,000. ELSS offers returns between 12-18% compared to other tax saver investments, however, the returns are subject to long-term capital gains tax at 10%. When investing in ELSS it is important one begins investing early so that the right investments are picked. If one picks wrong investments he would get stuck to his investments for the next three years. ELSS comes with the lowest-lock in period and you can reduce your taxes by investing in these schemes. If you have a high-risk appetite the

The standard retirement advice is save as much as you can, right from the start. But there is another aspect that you must look into – your lifestyle. Here’s a brief run down on both these aspects. Always look to increase the quantum of your savings. We talk of compounding, but there is an unfortunate reality which is the mathematics of it. If you had a couple of thousand rupees and you earn an extra 1% of returns, it may sound great, but the extra 1% of return on a few thousand rupees won’t get you far. It doesn't have a big impact because the account balance just isn't as big yet. But that extra 1% return on Rs 10 lakh is much more impressive. As you get closer and closer to retirement, that equation starts to flip around. Even a thousand or so every month towards getting a big nest egg doesn't really actually move the needle very much anymore. But if you've got crore in savings already, a 1% change in your returns could be a year or two worth of savings, all at