Tag Archives: Personal finance

Investment lessons one can learn from choosing players of an IPL team

The Indian Premier League (IPL) is a two-month long entertainment bonanza for cricket lovers across the world. However, this entertainment does not come cheap, at least for the team owners. They pay crores of rupees in order to bag the best players for their respective teams. Continue reading Investment lessons one can learn from choosing players of an IPL team

A run a ball to reach your target – much like an SIP

In a One Day International (ODI) cricket match, if you post a score of 300, it is generally considered a good score. The opposition has to work hard to reach this target. Batsmen are expected to consistently hit fours and sixes in order to chase the score. But if you break it down, there are exactly 300 balls delivered in a 50 over match. This means the batsmen have to hit just one run per ball to achieve victory. Sure, the match may become a bit boring but you reach your target in the end. Investing in a Systematic Investment Plan (SIP) is quite similar. Let’s find out how. Continue reading A run a ball to reach your target – much like an SIP

Know more on Fixed Deposits – The Simplest of all Investments in a Bank

Financial planning is of utmost importance today and all individuals need to invest their savings to address emergencies and also ensure comfortable future living. To support the same, banking sectors were introduced in the Indian scenario in early 1800s which were targeted towards the welfare of commoners.

Continue reading Know more on Fixed Deposits – The Simplest of all Investments in a Bank

Here Is What You Need To Know About Dividend Stocks

It does not matter much whether you a neophyte or knows little about dividend stocks; you would probably have few questions in mind about it.Is not it! So, if you want to get ultimate guide to dividend stocks then look no further. Here in the post is what you need to know about dividend stocks. Continue reading Here Is What You Need To Know About Dividend Stocks

Intraday Trading made simpler – Use FIT from Kotak Securities

Simplifying the art of generating returns from investments in equity market interests a significant section of our society. These investors try to protect their money from erosion resulting through high inflation and low returns and try to get higher RoI from investments in equity. Apart from a full-time job, thus investments in stock markets mark a major source of additional income for many.

Continue reading Intraday Trading made simpler – Use FIT from Kotak Securities

7 Reasons Why Your Personal Loan Application May Get Rejected in India

If you are facing a cash crunch or need money urgently, personal loans can help. However, this can be a long and tedious process and there is a risk that your application gets rejected if you’re not on you’re A-game when applying. Continue reading 7 Reasons Why Your Personal Loan Application May Get Rejected in India

How Useful Are Add-On Car Insurance Covers?

Add-on car insurance covers are designed to strengthen your Comprehensive Car Insurance policy. These covers originate from the exceptions of the comprehensive policy. If you want a slightly personalised and wide insurance coverage, then going for Add-on covers in motor insurance can be extremely beneficial for you. Continue reading How Useful Are Add-On Car Insurance Covers?

Invest in Term Insurance – A Saviour for Tomorrow

Financial stability is the most desirable of all needs for individuals. All individuals are in need of financial stability irrespective of their age and stages in career. During school days, children receive pocket money which they spend to satisfy their little wishes. With growing age, monetary requirements are sorted out by our parents.

Continue reading Invest in Term Insurance – A Saviour for Tomorrow

A Nest Made Affordable – Home Loans for One and All

Since time immemorial, the fundamental requirements of humankind are determined; food, shelter and clothing. Over the years, these necessities have evolved, progressed and witnessed path-breaking changes. Considering ‘shelter’ for the time being, beginning from stony caves (for primitive man) to thatched hut to mud houses and finally to the age of bricks and concrete, the journey has been immensely progressive.

Continue reading A Nest Made Affordable – Home Loans for One and All

What makes liquid funds better than savings account?

Every parent teaches their child the importance of saving money. The moment you get a job, everyone from your aunts and uncles to your neighbour advises you to spend less and save more. And it is true. Saving is important. There is a sense of satisfaction when you see your savings account grow month after month. Continue reading What makes liquid funds better than savings account?

How to ensure your next tax season is relaxed

It is said that history repeats itself. And it actually does. Every year the seasons change and by the time March rolls by, everyone is busy with their last minute tax planning. They promise that they will start tax planning well ahead next year but the seasons change and everything goes on as usual until March comes knocking again. Continue reading How to ensure your next tax season is relaxed

NEED TO SAVE TAX? HERE ARE X QUICK TAX SAVING OPTIONS FOR A.Y. 2018-19

I’m sure you must have tried to meet your tax saving targets throughout the F.Y. But in the end, it is likely that you still need to push a little to compensate for that windfall bonus and the increment this year. Even if no bonus or increment happened don’t worry, just see if you have utilised your tax saving limits completely. If not, use the following tax saving options to save additional tax within few minutes. Continue reading NEED TO SAVE TAX? HERE ARE X QUICK TAX SAVING OPTIONS FOR A.Y. 2018-19

Essential Advice For Anyone Starting Out In Investment

The good news is that investing does not have to be complicated; in fact, it can be fairly simple if you know how to go about it, that is. While a lot of people make the mistake of thinking that investment is only for the wealthy, that’s far from true. What is true, however, is that when it comes to being wealthy, for the most part, the wealthy have made an investment at one point or another, which has got them to where they are now. Wealth doesn’t just magically happen, to have a large sum of money, you have to take certain steps, such as being braving and making an investment.

Continue reading Essential Advice For Anyone Starting Out In Investment

HDFC Life Pension Guaranteed Plan – A Tale of Two Investors

Ashish and Bala are both 50 year old Vice Presidents in a renowned IT firm. Both are looking to retire in about 10 years’ time and want guaranteed income for their lifetime once they retire. Incidentally, both have received handsome bonuses recently, which they want to invest in an instrument that will help to ensure a guaranteed income post their retirement (at age 60). Continue reading HDFC Life Pension Guaranteed Plan – A Tale of Two Investors

How Does Switching Mutual Funds Affect Your Returns?

Not many investors are aware of the different types of mutual funds in the market. Due to the lack of knowledge and guidance, they end up investing in regular funds, which carry an average return. When they review the portfolio, they notice that they are not moving closer to their financial goals. Continue reading How Does Switching Mutual Funds Affect Your Returns?

Should Deduction on Term Insurance Be Separated From 80C

Life is uncertain, and a term insurance plan is the best way to deal with that uncertainty. By buying the right term insurance plan, you can secure the future of your loved ones in your absence. In case of the unfortunate event during the policy tenure, the insurer will pay the sum assured to your nominee.

Continue reading Should Deduction on Term Insurance Be Separated From 80C

Cheer from the Stands and Not from Your Home During the 2019 ICC World Cup

The most popular game in India is cricket and if you are a lover of this game, you may want to cheer from the stands during the ICC World Cup in 2019. England and Wales are jointly going to host the World Cup in 2019.

Although the official venues have still not been decided, it is anticipated that the final may be played at Lords while the opening game may be hosted at the Oval. Do you want to cheer from the stands in the upcoming ICC World Cup? Continue reading Cheer from the Stands and Not from Your Home During the 2019 ICC World Cup

How to Compensate for Missed Out Tax Deductions by Investing

To be a smart tax saver, you need to know your income and tax liability. The Indian government provides several options you may use to make better investment decisions while reducing your tax liability.

Are you stuck on Section 80C of the Income Tax Act, 1961 as is the case with most people? There is no doubt that this section offers some excellent tax-saving options, but there are several other avenues you may consider to save taxes, which are discussed below:

  1. National Pension System (NPS)

This pension scheme was launched in May 2009. To contribute to NPS, you need to open an account with the Central Recordkeeping Agency (CRA). You will receive a unique Permanent Retirement Account Number (PRAN). In addition to the Section 80C deduction, contributions up to INR 50,000 per year are eligible for exemption under section 80CCD (1B). Your money is invested in different asset classes, which includes equity, debt, and government securities. The returns on your investments will depend on the performance of these assets.

  1. Rajiv Gandhi Equity Savings Scheme (RGESS)

Under the RGESS, you may invest up to INR 50,000 in certain approved stocks to claim benefits under section 80CG. However, this benefit is available only when you invest for the first time. One reason this investment option is not popular is because of the high risk associated with stock investing.

  1. Education loan interest

If you have availed of an education loan, the interest paid for the year is tax-exempt under section 80E. However, unlike the principal repayment on a home loan, no tax benefit is available for the repayment of an education loan’s principal amount. This is one of the best tax-saving investments, but unfortunately, not many people are aware of this benefit.

  1. House rent allowance (HRA)

If you live in a rented home, you may claim tax benefits under section 80GG of the Income Tax Act. The deduction depends on your location. It is recommended you speak with your company’s human resource department to know the exact HRA benefit that is available.

  1. Home loans

In the last year’s Union Budget, Finance Minister Mr. ArunJaitley enhanced the interest benefit on a home loan. The deduction amount was increased from INR 1.5 lakh to INR 2 lakh per annum. In addition, INR 50,000 paid as home loan interest may be claimed under section 80EE starting from the financial year 2016-17. However, there are certain conditions that you must fulfill to be eligible for this deduction. These include:

  • The loan must be availed of between April 1, 2016, and March 31, 2017.
  • You must own the said property in your name.
  • The borrowed amount must not exceed INR 35 lakh.
  • The value of the home must not be more than INR 50 lakh.

 

  1. Health insurance

Medical costs are constantly rising. Therefore, safeguarding yourself against any health issue is important. A premium of up to INR 25,000 (INR 30000 for senior citizens) is eligible for tax deduction under section 80D. The benefits under this section also include preventive health checkup expenses.

  1. Charitable donations

If you donate some amount to certain non-government organizations (NGOs) in check, the same is eligible for tax benefits under section 80G. However, the deduction may either be 50% or 100% of the total amount based on certain criteria. This benefit must be claimed when you file your income tax returns (ITR).

If you have missed any of the aforementioned benefits, you may still opt for tax-saving options like the ones discussed below:

  • Public provident fund (PPF)

PPF is a popular option because it provides a fixed rate of return based on the interest determined by the government authorities. The lock-in period for such accounts is 15 years. The principal, interest, and maturity benefits are all tax-free, which makes it one of the best tax-saving investments.

  • Bank FDs

You may also invest in bank FDs, which have a lock-in period of five years. The interest rate is similar to regular deposits. However, the interest income is taxable, which reduces your actual return on investments.

  • Equity-linked savings schemes(ELSS)

An ELSS comes with a three-year lock-in period. These funds invest in equities, which have the potential to deliver high returns. Additionally, the dividend and maturity proceeds on equity-linked savings schemes are tax-exempt, thereby making these a popular tax-saving mutual fund product.

Investment decisions are not random and require research and analysis. ARQ, the investment engine from Angel Wealth, does exactly this. It uses scientific methods to analyze and evaluate funds based on a billion data points. The best tax-saving mutual funds are customized depending on your risk appetite, lifestyle, and financial goals.

The entire procedure is automated, ensuring there is no human bias. Download the mobile app today and invest to reduce your tax liability.

 

EMI Schemes: No Friend to Small Business

EMI schemes were brought into being as a ways of encouraging people to stay with small businesses and work with them. The benefits of such work included shares in the company, benefits for them the longer they stay as employees, and an overall boost in morale which comes with feeling more involved in the direction that the company is taking.EMI schemes allow people to become more important to the business than they otherwise would – the EMI scheme works both ways – it keeps people loyal to the business, and helps them see that working for it wouldn’t be the knock to their career they feared, and means that the business will have experienced workers. Continue reading EMI Schemes: No Friend to Small Business