Alisha Gupta, Author at Invest Market

ICICI Pru Assured Savings Insurance Plan: Benefits, Features and Details

October 15, 2020 Alisha Gupta No Comments

ICICI Pru Assured Savings Insurance Plan is a traditional non-participating non linked endowment life insurance plan. It helps to secure your dreams of the future by filling up the emergencies and risks of the future. One can save their money and expect for fulfilling long-term goals like education of your children, marriage of your children, comfortable and happy life after retirement, and so on. Under this best savings plan, you get two major benefits i.e. wealth creation plus tax benefits. You can also make premium payments according to your comfort. Also, ICICI Pru Assured Savings Insurance Plan provides your life insurance cover of your family in case of your unfortunate demise. Talking about tax benefits, you can avail various benefits on premium paid and received according to the present tax laws.

ICICI Prudential Assured Savings Insurance Plan Eligibility Criteria

Minimum Entry Age	6-8 Years
Maximum Entry Age	60 Years
Maturity Age Lies Between	18 Years – 72 Years

Policy Terms for the ICICI Prudential Assured Savings Insurance Plan:

Premium Payment Term	Policy Term
7 years	10 years 12 years
10 years	12 years
Premium In Rs	12000-18000

ICICI Pru Assured Savings Insurance Plan Premium Payments:

Minimum Premium

7 year premium payment term: Policy term of 10 years – Rs.18,000 Policy term of 12 years – Rs.18,000 10 year premium payment term: Policy term of 12 years – Rs.18,000

Premium payment

The premiums can be paid for 7 years or 10 years.

The policy lasts for 10 or 12 years ( if 7 pay plan) but 12 years for 10 payment plan.

The minimum premium payable is Rs.18,000 in the of seven payments and Rs. 12,000 for 10 pay option.

ICICI Pru Guaranteed Savings Insurance Plan of 10 years, you can start the plan from the age of 8 but should not exceed 60 years. For the 10 pay option, you can start the plan from the age of 6 but should not exceed 60 years.

For a policy term of 12 years, you can start the plan from the age of 6 but should not exceed 60 years.

The minimum policy maturity age is 18 years and the maximum cannot exceed 72 years in both cases.

ICICI Prudential Assured Savings Insurance Plan Calculator

Features Of ICICI PRU Assured Savings Insurance Plan

Plan Type	Traditional non-participating non-linked endowment life insurance plan.
Premium Payment options	Yearly, Half – Yearly, Quarterly, Monthly
Free look period	Free Look period is 15 days from the date you received the policy. If the policy has been purchased through distance marketing, then the free look period is 30 days.
Loans	Up to 80% of the surrender value can be availed as loan amount.
Revival	A policy that has been discontinued can be revived within 2 years from the due date of the first unpaid premium.
Surrender benefit	If your policy term is 10 years, you will acquire surrender value after 3 full year’s payment. If your premium payment term is 7 years, you will acquire surrender value after 2 full year’s payment. On surrender, you will get Guaranteed Surrender Value plus the value of accrued Guaranteed Additions and Special Surrender Value.
Tax Benefits	As per Section 80C and 10(10D) of the Income Tax Act
Riders	No Riders available under this plan
Guaranteed Additions	9% Or 10% Every Year
Guaranteed Maturity Benefit	The lump-sum amount at end of the policy term

Benefits Of ICICI PRU Assured Savings Insurance Plan

Guaranteed Additions

These are paid on the maturity of the policy. It gets added to your policy at the end of every policy year when all the premiums have been paid. It is also accepted for death benefits as well. The Guaranteed addition rates are:

For 10 years term- 9%
For 12 years term- 10%

Guaranteed Benefits On The Maturity Of The Policy

Guaranteed Maturity benefits depend upon the premium, payment term, policy term, gender and age of the person.

Maturity Benefits

These Maturity benefits are provided to the policyholder at the end of the policy term when all the premiums are paid as well. Maturity Benefit is

Accrued guaranteed additions + Guaranteed maturity benefits

Death Benefits

If the unfortunate demise of the policyholder happens then death benefits are offered to the dependent of the policyholder. The death benefit is either the sum assured plus the accrued guaranteed additions, minimum death benefit, or guaranteed maturity benefits plus accrued guaranteed additions, whichever is higher. Also, note here that all other policy benefits will be ceased on payment of death benefit.

Surrender Benefits

Policy Term 10 Years- Acquire Surrender value after 3-year full payment

Premium Payment Term 7 Years- Acquire Surrender value after 2-year full payment

The surrender value is calculated as-

Guaranteed Surrender Value + Value of Accrued Guaranteed Additions & Special Surrender Value

FAQ’s

What if one stops paying a premium?

If the premium is not paid within 30 days of the due date the policy will lapse. ICICI Pru Guaranteed Savings Insurance Plan can be revived within 2 years of the first unpaid premium. And, if after acquiring surrender value the premium is discontinued then the policy status will be changed to “paid-up”.

How can I surrender the policy?

The surrender value will be acquired after 3 years of the policy. Surrender Value is calculated as-

Guaranteed Surrender Value (GSV) +surrender value of accrued GA’s

Can I get a loan against ICICI PRU Assured Savings Insurance Plan?

Yes, the loan facility is available under this plan.

Investment

How Much To Save For Early Retirement in India: Early Retirement Plan

October 5, 2020 Alisha Gupta No Comments

In India, there are so many workers who want to retire early from their job but they don’t know-how. To help you with this, we have organized an early retirement plan to prepare you for everything before getting retired.

How Early Retirement is Different from Standard Retirement?

Early retirement is not that much different from standard age retirement. As in early retirement, a person retires from work at an early age than the standard retirement age.

But early retirement doesn’t mean that one has to stop working and spend all the savings. This is one of the misconceptions that people have about early retirement.

A planned early retirement is a part of life in which you will retire just from working for money to start a purposeful life.

Retire Early from the Rat Race

Do you know what the best part about early retirement in India is? May be no. Let me tell you what? You will still not get old as you will get retire in middle age. Hence, you can use that time to make a positive change to your personal and social life.

Apart from this, you can learn something you wanted to pursue at a younger age; because you didn’t have the opportunity before.

Your Indian Early Retirement Plan

An early retirement plan is a two-stage process:

Plan Establishment stage
Plan Implementation Stage

1. Plan Establishment Stage of Early Retirement

The plan establishment stage is a basic level for your early retirement in India. It further has four areas to support the next stage of plan implementation. They are,

I) Choosing the Early Retirement Age
ii) Evaluation of Expenses
iii) Retirement Expense Projection
IV) Corpus Calculation

i) Choosing the Early Retirement Age

The early retirement age is one of the simple parts of the early retirement plan process. Before thinking about anything first you must decide your early retirement age. For deciding this, you need to consider some factors that can help in making a customized early retirement financial plan for your entire lifetime.

Here are the factors you need to consider:

A current monthly expense.
Expected monthly expenses after retirement
Annual or one-time expenses like children’s education expenses.
Amount needed for savings
Current monthly income.

These are the five factors that one needs to consider before getting retired in India.

ii) Evaluate Your Expenses

If you are a person who already knows the art of budgeting, that’s great!

You don’t? Don’t fret! I’ll help you do that.

For an exact evaluation of your expenses, you must know the average monthly expenses of the past two years. Let me clear you how you need to evaluate your expenses. Firstly, calculate the average expense incurred per month.

Get your bank account transactions statements including your credit card statements of the past two years
Categorize your expenses based on the nature of the expense.

iii) Calculate Corpus

Corpus is the overall expected amount of early retirement monthly income, the annual recurring expenses, and the onetime expenses as such.

Use the “Expected Post Retirement Expense Calculator” to calculate your post-retirement monthly income and the corpus.

2. Early Retirement Plan Implementation Stage

At the first glance, I am going to clear you one thing that this stage is not an easy task. As we all know implementation of any plan somehow gets hard. But with the following techniques, it is not going to be difficult either.

i) Habit of saving 50% for Early Retirement

No doubt, you have to manage the multifarious expenses of your home but still if you make a habit of saving 50% from your income for your early retirement. Moreover, you must consider this method for your retirement month too.

I have already told you that it can be tough for saving 50% of your income. But take the baby steps today, you can run like an athlete tomorrow.

ii) Increase Your Savings Rate

You can two options to save money from your income; one is by fixing the leakage and the second one is by switching to the second tap.

Cut-Down Expenses

In this method, your only priority should be clearing all your debts including loan repayments as early as possible, if you have any. As we all know, debt traps are literally the dream killers, so kill them before it kills you. By doing this, you can focus on your regular monthly expenses.

Generate A Passive Income

Generating passive income is somehow easy if you have passion in that profession. Let me give you an example, you always wanted to become a blogger or influence the universe when you were young. But you could not, because, at that time, you did not have an opportunity or other reasons like parents did not allow. Hopefully, you have the opportunity now.

So now you have time to pursue your dream so start learning skills that you have an interest when you were young. And then you can monetize your skill to increase your passive income.

Investment Schemes

Best Gold Saving Schemes: How to Invest In Gold In India?

September 26, 2020 Alisha Gupta No Comments

What is Gold Investment?

Gold is one of the most precious metals among all and regarded as the best source of investment. The reasons for invest in gold being the best investment are high liquidity and beating inflation factors. No doubt that gold price also has encountered falls but the comeback is always a great hit. Check out the Gold Rate Today First!!!

While looking at the gold price today, just think of the rates when a year ago, you will observe a huge difference in gold price today and then. Gole rate is hiking up with a high speed. That is one major reason of high investments in gold, and not only gold, silver rate today is also acceralating its speed of raising prices. You will observe the difference in today gold rate in mumbai, gold price today kolkata, today gold rate in hyderabad, gold rate in delhi and many more. The major reason of these differences is the amount of tax in importing and exporting..

There are many forms of Gold Investment like buying gold coins, gold jewelry, gold exchange-traded funds, gold bars, sovereign gold bond schemes, etc.

If you are thinking to invest your money in Gold then you must read this article. We will cover all the important points on How to Invest in Gold India, what are the benefits, the best gold investment schemes offered by jewelers, and why gold investment is preferred so much.

How to Invest In Gold In India?

Now the most important question that arises in the head of a “would be gold investor “is- How to invest in Gold In India?

Traditionally people used to buy jewelry, gold coins, bullions, or artifacts in order to invest their money in Gold. But with time, investing in Gold has modernized a bit with some new Gold investing schemes like Gold Exchange Traded Funds (Gold ETF’s), Sovereign Gold Bonds, Gold Funds, etc.

Gold ETF: In Gold ETF the gold is stored in the form of paperwork. It is similar to buying an equivalent amount of buying gold but in paper form not having it physically in your hands. It protects the stress of storing the gold and safeguards it from theft and burglary.

Gold Funds: It refers to investing your money in a gold mining company.

Documents Required For Investing In Gold

Following is the list of documents required for Gold Investment in India:

PAN Card for more than 2 Lakhs of investment in Physical Gold
Brokerage Account + DEMAT Account in the same firm for Gold ETF ( Exchange Traded Funds)
KYC is required for investing in Sovereign Gold Bonds

Gold	Gold ETFs (Exchanged Traded Funds)	Gold Funds
One Can Invest In Physical Funds	Purchasing a proportionate value of gold but not in physical form.	The investment is made in the form of bullions and the companies involved in gold mining.
No DEMAT account is not required	DEMAT Account is required	No DEMAT Account is required
No additional charges are imposed except the cost of physical gold	Asset management and brokerage fees are included in Gold ETF’s	A minimum charge is applied to manage the funds.
It always has a risk of theft and burglary involved if you are having physical gold with you.	No risks of theft or burglary as you don’t possess it in the physical form.	No risk of theft or burglary involved
Paperwork can be avoided while buying Physical Gold	Paperwork is required for investing in Gold ETFs.	Paperwork is required for Gold funds.
Market fluctuations are proportionate to the prices of gold.	Gold price directly affects that of Gold ETFs.	Gold funds are not affected by changes in the gold price.

Top 5 Best Invest In Gold Saving Schemes in India:

These schemes are offered by top jewelers. Know about their investing working and the amount for starting investment. Based on the current market scenario the best ways to invest in Gold in India are:

1.) GRT Gold Eleven Flexi Plan

Investing in the GRT Gold Eleven Flexi plan is a great opportunity to start from a low amount that is Rs.500 monthly for 11 Months and shop for jewelry in the 12^th month. This scheme is a great opportunity for savings and investment. Also, it also offers refunds in case of non-purchase after completion of tenure.

2.) Tanishq Gold Harvest Scheme

This scheme enables an investor to deposit their money under this scheme for 6-10 months. The money can be used for buying jewelry after the completion of the maturity period of the scheme with a discount of up to 75% on the value of the jewelry.

3.) PNG Jewellers Gold Scheme- Suvarna Poornima Scheme

Investment in PNG Suvarna Poornima Gold Scheme can be started from Rs.3000. The investor can invest the amount as per their wish but after deciding once the amount cannot be changed during the investment period. After maturity, the scheme offers a 10% discount on making charges.

4.) Kalyan Jewelers Gold Scheme

Investment in the Kalyan Jewelers Gold scheme can be started from Rs.500 to Rs.40000 depending upon the jewelry chosen at the start of the scheme. Investment o behalf of minors is permitted but the investor needs to be Indian. The tenure of this scheme is 12 months and will be closed on making a purchase of the gold.

5.) Malabar Gold Scheme

Malabar Gold scheme offers discounts on a wide range of products either they are in-stock products or out-of-stock jewelry items. Customers can also opt 14-day return policy while buying ready to deliver products.

Why Gold Investment Should be Preferred In India?

Due to safety, liquidity, high and profitable returns one invests in Gold. Gold investment is quite safe and far from regular fluctuation in prices, however, some investors consider it as an uncertain way of investing money. But the gold investment is a great way of investment as the return on gold investment is always proved to be in line with inflation. Due to this, it is also considered as an inflation-beating investment. Another major reason is that gold investment provides excellent liquidity to investors.

Final Verdict

Every Gold investment has its own pros and cons. So it’s an individual’s choice whether the investor wants to go for physical fold, Gold ETF’s, or SGB’s. It is quite a safe source of investment that does not assure your regular profit or income but provides excellent liquidity and inflation-beating rate. It is suggested that investors having liquidity as their priority must go for Gold ETF’s and who don’t need short term funds should invest in Sovereign Gold Bond.

Investment

Top 10 Successful Investors In India: Updated 2020

September 7, 2020 Alisha Gupta No Comments

Stock market is the bazaar of dreams for many. Everybody comes with a dream of getting rich after investing in stock market, but some of them are successful in their journey due to their expert knowledge, courageous decisions and right choice. Some of the know names of stock market Warren Buffet, Jeff Bezos, Peter Lynch, Rakesh Jhunjhunwala and so on which inspire us for investment.

Here, I am going to share the list of top 10 successful investors in India, known for their exceptional performance in the field of investing their money in stock market shares. The facts and figures invested and earned by these stars will blow your mind and inspire you to utilize your spare money in the right way. Also know some tips & Tricks and strategies of top investors. You will so many new things by knowing their real experiences and the day is not far when you can call yourself a successful investor.

List Of Top 10 Successful Investors In India

1. Rakesh Jhunjhunwala

Rakesh Jhunjhunwala is a businessman and investor often called as “India’s Warren Buffet”. He started his investment career in the wake of finishing his degree. He initially started with the investment of just Rs.5000 and currently owing total assets around 15,000 crores. The journey was long and fortunate to him. He is currently an executive of Aptech Limite

d company and also works with Hungama Digital Media Entertainment Private Limited. Rakesh Jhunjhunwala works with the resources of Rare Enterprises.

He is the 48th richest person in India, also, one of the successful investors in India.

2. Radhakishan Damani

Radhakishan Damani is the proprietor of D-Mart. He is the single largest shareholder of D-Mart with 53.56% of shareholding. He believes in studying the future prospects of a company before investing into it for long tenure of 5-10 years. All the investments are done from his firm Bright Start Investments Private Limited or his own account. His portfolio includes blue-chip stocks such as VST industries, affiliate of British American Tobacco having 26% stake in his company. Some other blue chip stock in Radhakishan Damani portfolio is Sundaram Finance, India Cements, TV today, 3M India and TV18. Few of us know that is he is mentor of the top investor of India Rakesh Jhunjhunwala.

3. Ramesh Damani

Ramesh Damani has done his 4 year degree from HR College Mumbai and Post-Graduation from California State University in Business Administration. He also standouts amongst the best securities exchange financial specialists in India. Ramesh owns and deals through his company Ramesh Damani Finance Private Ltd. He shines as an individual in 1989 from Bombay Stock exchange with his father’s saying, who is an excellent stock market investor.

4. Raamdeo Agrawal

Raamdeo Agarwal is a co-founder of Motilal Oswal and one of the top stock market investors in India. The biggest successful investment done by jim was in Hero Honda in 1995. He, on that time bought 10 Lakh shares at 30 per share cost and invested for 20 years when the price of share arose to 2600 per share. His proven strategy to become successful investor is quality, tenure ofd investing in shares and identifying the growth of the company.

5. Vijay Kedia

Vijay Kedia was born in stockbroking family and investing in shares is in his blood. Now, he is counted as one of the successful stock marketers in India. He started investing in shares from the age of 19 years. No doubt that lot of hurdles and misfortunes were encountered by the young man but later on he earned great benefits as well. He got success after investing Cera sanitary ware that he bought at very low levels. He believes that one must invest the part of his savings not the part of earnings in stock market. The present stock market investments done by Vijay Kedia are Everest industries, Cheviot company, TCPL packaging, Kokyu Camlin, Panasonic energy, Sudarshan chemicals and so on.

6. Nemish Shah

Nemish Shah is also known as the best retail financial investors in the nation. He is the prime supporter of ENAM. His strategy is putting resources into firm that develop utilization. He is main venture of interest for investing is Asahi India, the car glass provider, have duplicated around 3 or multiple times in 3 years. Nemish Shah’s venture reasoning is like that of Warren Buffet.

7.Porinju Veliyath

Porinju Veliyath shines brighter in the list successful investors in India. He has actually proven the value of investing to youth. Porinju Veliyath is also a patriot and investor. He is running his portfolio through his company in Cochin names as Equity Intelligence.

His successful investment strategy is to look beyond fancied stocks and identifying the positive changes. He primarily invests in small and mid-cap stocks.

His current portfolio consists of BCL industries, Rauneq Epc, ABC India, Emkay global, Parnex lab, Sarda plywood, ITC and so on.

8. Dolly Khanna

Next up in the list of top successful investors in India is Dolly Khanna wife of Rajeev Khanna who buys stock in her wife’s name. Rajeev Khanna has done his medical engineering from IIT Madras. He initially started the business Kwality Milk foods that he sold later. Still he is having his core business in milk business apart from having crores in his portfolio. His best investments in stocks were counted from Hawkins Cookers accumulated 130 levels to 3500 levels recently. Also, he got some huge dividends from the company.

9. Ashish Kacholia

Ashish Kacholia founder of Lucky Securities and one of the most successful investors in India has a lot to get inspired from. He bought technology stocks when there is technology boom and Indian economy was rising. He has good relation with some of the ace investors like Rakesh Jhunjhunwala, Hiren Ved, Lashith Sangavi and so on.

Talking about his investment strategy, a good company should perform quarter-on-quarter basis, at the same time one must have patience to wait for a good business to grow and perform in your welfare.

The current portfolio of Ashish Kacholia consists of Lokesh machines, Pokarna, , Aptech, Vaibhav global, KPIT, Butterfly Gandhimati, Shreyas shipping, Vishnu chemicals, APL Apollo, GTPL hatchway, Vadilal, Ester Industries, Bodal chemicals, SP apparels, GHCL, Nocil, Poly medicure, Vadilal industries, Parag milk, Genus power, and so on.

10. Amitabh Bachchan

All of us are well-known to the name Amitabh Bachchan the biggest star of Bollywood industry but how many of us are aware with the fact that he is also counted in the list top 10 investors in India 2020. Big B has started investment from not so famous stocks like Birla Pacific, Finotex chemicals that unfortunately doesn’t prove beneficial to him.

He, then invested in Neuland labs share that made him earn some good profits of about 800% in just 4 years. He has done his biggest investment in JustDial with the face value of Rs.10 per share. Mr. Bachchan is also the brand ambassador of JustDial. Along with this Stampede Capital and Nitin fire are also included in his portfolio right now. This Bollywood superstar has also aced in investing.

Investment

How To Become Wealthy By Investing Your Money | Benefits of Investing

September 7, 2020 Alisha Gupta No Comments

Nowadays, Investing has become very essential in one’s life and everyone should do it. There are multifarious benefits of investing like it can offer you financial freedom. However, investing your money leads to the highest rate of return and gives you the most in the long run.

If you really want to become a wealthy person then Investing is really the best way to go still not convinced? Here are five benefits of investing.

Stay Ahead of Inflation

As we all know prices of goods and services increase every year. That means the situation of inflation always occurs which creates a difficult situation for people so if you don’t invest and grow your money, eventually you’ll end up losing money over time. Hence, this situation will put you in that worse situation where your purchasing power will decline.

Basically, the rate of inflation varies globally but overall inflation has averaged to around 3%.

Therefore, if you invest your money and earn a rate of return of 7% on average, then you will never face these hard situations of inflation every year. And you will stay ahead of inflation and also it will help to increase the value of your money.

Builds Your Wealth

Money has the potential to earn money. So when you invest money in stocks or shares of a company or mutual funds, then your money will not get any benefit from it. But if the value of that stock, shares, or mutual fund increases, then you can earn money by selling the stock on the higher prices. Apart from this, this kind of great investment like purchasing stocks, shares, or mutual funds pays good dividends each quarter. The dividend is the percentage of the company’s earning which they offer every year to their clients. In addition, the dividends you earn on your investments get re-invested in the company, so the total amount of stock and value you purchased increases.

In other words, investing money leads to a more return than putting your money into a savings account. Because saving money in accounts just gives you a one percent rate of interest. But it’s not enough to overcome the situation of inflation.

Helps To Reduce Taxes

There are a plethora of benefits of investing money but one of the good advantages is that it can decrease the chances of paying high taxes to the government. Like there are certain retirement accounts, like 401k and a traditional IRA allows you to reduce the money you contribute from your income for the year. Moreover, you need to pay taxes on the amount you have during your retirement. However, investing today can bit relief from taxes. The total amount you contribute to other retirement accounts is taxed in the year you make the contribution. But, you don’t need to pay any kind of tax on that funds or earnings when you withdraw it amid your retirement.

You Don’t Need Much to Get Started

You can also think like a typical investor who wears fancy outfits, have a luxurious car, and buys many more expensive things. The reality is that a person who has a keen interest in investing money in stocks or shares, he does not need to invest thousands, and he can also start with less than $100. But all you need to do is buy a single stock or invest in a single mutual fund. As per your financial situation, you can increase or decrease the number of your investments.

No doubt people have many goals behind money saving. For instance, someone’s goal is to save money for their retirement, save money for kid’s education, or save up a down payment for a house, basically invested money can help you get there. You don’t need to worry about that you need to work on it for maintaining investments. The invest market team will help you to understand your financial situation moreover we have made a strategic plan to help you reach your goals. If you want to get started on the path to financial freedom, reach us today.

Handles Long Term Financial Requirements

There are many worst situations in life that people won’t able to handle just because of having less money. To overcome that critical situation, you must invest some of your funds to help grow your money to fulfills long term financial requirements. For instance, investing in your child’s education.

When you have a long term financial goal of ten or more years, it may help you to spend that money to help you reach your goal faster! At that time, you will have financial freedom.

So, if you seriously want financial freedom in your life, just grow your wealth with the best investment plan that suits your needs.

If you don’t have knowledge about where and how to invest, our team will guide you from scratch and offer you the best and suitable investment plans that can help you to achieve your long term financial requirements.

Fulfills your changing needs

In life, our needs change from time to time, so every need has its own priority. invest market professionals are highly skilled as they can make your investment portfolio according to your requirements or priorities of your life. So that you won’t face any financial crises in your life. Moreover, you may prefer less risky options as you get older. Thus, with careful planning, you can tailor your investment portfolio to achieve your changing goals and priorities.

Investment

Sovereign Gold Bond 2020-2021: All You Need To Know

August 17, 2020 Alisha Gupta No Comments

What is Sovereign Gold Bond?

Sovereign gold bonds were introduced by the Indian Government in the year 2015 under the Gold Monetization Scheme. The government of India, by collaborating with Reserve Bank of India, has finally decided to issue Sovereign Gold Bond in six tranches from April 2020 to September 2020. The bonds will be denominated in the multiples of a gram of gold with 1unit of a gram. The interest for the gold bonds will be 2.50% per annum which is payable half-yearly. The tenure of the gold bond will be for 8 years with an exit option available in the 5th year on the dates of interest payment.

Is Sovereign Gold Bond a Good Investment?

Yes, the sovereign gold bond is a very good investment for people who have a keen interest in gold investments. So they can consider their good investment in Sovereign Gold Bonds. If you don’t want to take any risk, it is perfect for investors with low-risk appetite. Moreover, the great thing about the gold bond is it gives you fixed income bi-annually. If we compare physical gold, the cost to purchase or sell the Sovereign gold bond is too low.

Is Sovereign Gold Bond Tax-Free?

You don’t need to pay It’s like the interest on Gold Bonds will be taxable as per the Income Tax Act. The capital gets increased tax on redemption of Sovereign Gold Bold to the investor has been exempted. These benefits of indexation will only be given to long term capital gains to the individual.

Is Gold Bond Beneficial?

For those who have a keen interest in investing in gold or sovereign gold bond, they are thinking about the best options. Investors are not only getting benefits from the prices of the precious metal but also a high-interest rate of 2.5% on the initial investment amount during the tenure.

Last Ten Years Prices of Gold!

Year	Price (24 karats per 10 grams)
2010	18500.00
2011	26400.00
2012	31050.00
2013	29600.00
2014	28006.50
2015	26343.50
2016	28623.50
2017	29667.50
2018	31438.00
2019	35220.00

Features of Sovereign Gold Bond

► Price Updation

The Prices of a sovereign gold bond is calculated on the basis of the average of the closing price of 999 purity gold for the last 3 days set by the Indian Bullion and Jewelers Association Limited (IBJA).

► Interest Pay-Outs

Investors need to pay an interest rate of 2.5% per annum which is disbursed half-yearly to investors.

► Fixed Tenor

Gold bonds are legally issued for 8 years, and investors are allowed to withdraw the premature amounts from the 5th year. The best thing in investing gold bonds, investors can sell their particular gold bonds in the other secondary market at the market current rate of gold.

► Resale

Investors can easily buy or sell Sovereign gold bond in the secondary market exact after 14 days from the subscription date.

► Quantity Of Subscription

In gold bond, Subscriptions are made as grams of gold. The minimum investment is equal to the price of 1 gram of gold and the maximum limit is equal to the value of 4kg of gold for the individual investor. But for the corporations and others, the highest limit is 20kg.

Why Should You Invest in Gold Bonds?

There are multifarious great reasons for investing in gold bonds. But there is a restriction of sale for Indian residents including Hindu Undivided Families, individual investors, universities, and trusts.

Here are some advantages of investing in gold bonds:

Bonds can be used as collateral for any kind of loan.
Payment can be made through cash up to Rs.20, 000, demand draft, or through e-banking.
They are like security as issued in the form of the Indian stock of government.
An investor can convert these bonds into DEMAT form.

Last 10 years Rate of Return of Gold From 2010 to 2019

Years	Return(%)
2010	29.2%
2011	8.9%
2012	8.3%
2013	-27.3%
2014	0.1%
2015	-12.1%
2016	8.1%
2017	12.7%
2018	0.9%
2019	235.75%

Advantages Of Investing in Sovereign Gold Bond

► Great Loan Facility

Sovereign gold bond is the best option if you want to avail of loans. Moreover, investors can avail loans of up to 75% of the market value of bonds from the financial institutions, as per the RBI’s LTV regulations.

► Low Risk

A sovereign gold bond is issued as per the Government Security Act by the Reserve Bank of India. Thus, gold bonds are one of the safest forms of investment plans available in India. If there is any risk that is associated with such investments, will be linked to market fluctuations.

► Convenience

These Sovereign gold bonds were launched by the central government in November 2015. Its primary aim was to eliminate the issues involved with gold investments, as billions and other investments need 100% secured storage.

► Hedge Against Inflation

As we all know rates of growth of gold bonds are higher than the inflation rates. Hence, individual investors can enjoy growth in the real value of their investment portfolio. Moreover, it will allow them to accumulate wealth over time.

► Long Term Investment

Sovereign gold bond comes with a period of 8 years. This long term investment is for individuals who are looking for a long term investment scheme and want to generate huge capital, along with the security of the corpus.

Eligibility For Sovereign Gold Bond Scheme

The individuals who are very keen to invest in the Sovereign Gold Bond Scheme need to satisfy below eligibility criteria.

► Resident of India

It is open only for Indian residents, with the Foreign Exchange Management Act of 1999.

► Either Individuals or Groups

Individuals, trusts, charities, HUFs, many more are eligible to invest in this scheme. Under this scheme, you can also invest jointly in gold bonds with other eligible members.

► Children

Minors can also purchase gold bonds but only through their guardians or parents.

Insurance Policy

Top Life Insurance Companies in India: Updated List 2020

August 5, 2020 Alisha Gupta No Comments

What is a Life Insurance Policy?

A Life Insurance Policy works as a lifeguard that protects your family member in case of unfortunate demises of the insured individual. When you buy a life Insurance policy, you have to pay a premium to the insurance company that guarantees to provide sum insured to the insured person in the event of sudden death. This kind of insurance provides financial assistance to the insured family in the absence of the policyholder. Basically life insurance is a type of long term investment.

Importance of Life Insurance

In this uncertain life, the Insurance policy has become an essential expense to secure the future of our family. Following are some of the reasons:

Provides financial security and safety net
safeguards your family’s goals
Encourages savings
Effective risk management tool
Provides peace of mind

Top 9 Life Insurance Companies in India:

As we all know insurance companies have multifarious options in policies, but make sure to check the details of the policy. Moreover, the policy you buy must fulfill the needs that you want in your policy.

Here is the list of top 9 life insurance policies in India:

9. Life Insurance Corporation of India

Claim Settlement Ratio: 98.04%
Premium (in INR): 17228

Life Insurance Corporation of India popularly known as LIC is one of the top life insurance companies in India. LIC is possessed by the Indian government. Being a governmental insurance company, it is one of the top 10 insurance companies in India. It was established in the year 1956. Life insurance corporation of India is accessible to every Indian in the nation with 2048 branches.

LIC is a trusted insurance company that offers suitable plans to its clients through its excellent customer services through branch offices as well as on the digital platform.

8. SBI Life Insurance Company

Claim Settlement Ratio: 92.13%
Premium (in INR): 15070

State bank of India (SBI) Life Insurance Company is a joint venture between State Bank of India and BNP Paribas Cardiff. BNP Paribas Cardiff is one of the French multinational bank and financial services companies.

SBI Life Insurance Company was started as bancassurance but now it is extended to the multi-distribution channel. Moreover, the company has been growing because of excellent customer service and product innovations.

7. Max Life Insurance Company

Claim Settlement Ratio: 95.26%
Premium (in INR): 10148

Max Life Insurance Company was founded in 200 as it is the oldest and largest insurance company in India. Moreover, it is a non-bank private sector insurance company in India.

It is one of the fastest-growing top life insurance companies in India. Apart from this, the assets of Max Life have touched the mark of Rs.50, 000 Crores.

This Insurance Company is a joint venture between Indian Max India Ltd and Mitsui Sumitomo Insurance Company. Max Life insurance company has around 30 lakhs customers. In this digital world, they have a strong online presence with a wide range of products, multi-distribution channels, etc.

When it comes to customer service, they provide high-quality customer services. For this; Max Life has been getting awards consistently.

6. Bajaj Allianz Life Insurance Company

Claim Settlement Ratio: 83.94%
Premium (in INR): 14067

Bajaj Allianz Life Insurance Company founded in the year 2001. It is also a joint venture between Bajaj Allianz Life and Bajaj Finserv Ltd of Bajaj Group. Bajaj Allianz Life Insurance Company has 759 branches across the nation so that people can access innovative insurance solutions. It is famous for its innovative products and top customer service. Bajaj alliance got numerous awards for its contribution to the insurance industry.

5. PNB MetLife Insurance Company

Claim Settlement Ratio: 82.40%
Premium (in INR): 10146

PNB MetLife Insurance Company founded in the year 2001. It is one of the top life insurance companies in India. This insurance company serves lakhs of customers over 7,000 locations through multi-distribution channels. Moreover, customers are happy and satisfied with their offerings like suitable life insurance policies and savings products.

The great thing about PNB MetLife, they have received a plethora of awards for its excellence in the insurance.

4. HDFC Life Insurance Company

Claim Settlement Ratio: 88.63%
Premium (in INR): 12478

HDFC Life Insurance Company is one of the top life insurance companies in India. It is founded in the year 2000. Also, this company is also a joint venture between HDFC and Standard Life Aberdeen. Standard life Aberdeen is a global investment company. They serve its customers all over the nation via 412 branches, distribution channels, and bancassurance partners.

HDFC Life provides the best insurance and investment solutions to customers. With their strong digital presence, all the services are accessible to the customers easily. HDFC Life has also received many awards for its constant efforts in the Insurance Industry of India.

3. Birla Sun Life Insurance Company

Claim Settlement Ratio: 90.51%
Premium (in INR): 10270

Aditya Birla Sun Life Insurance Company has started in the year 2000. This life insurance company is a subsidiary of Aditya Birla Capital Limited. Moreover, Aditya Birla company was together formed by Aditya Birla Group and Sun Life Financial. Sun life is a Canadian financial services organization.

Birla Sun Life is one of the best life insurance companies in India that offers all insurance solutions. Their insurance solutions include pension plans, savings plans, and many new-age products.

The company has a huge online and offline presence with 425 branches across the nation, 9 bancassurance partners, and a plethora of distribution channels. Moreover, they have 85,000+ direct selling agents who reach customers widely. Birla Sun Life Insurance Company has also got many accolades for its regular contribution to the insurance sector.

2. Kotak Life Insurance Company

Claim Settlement Ratio: 88.88%
Premium (in INR): 9558

Kotak Life Insurance Company is the fastest-growing and top life insurance company in India with more than 20 million policyholders.

The parent company of Kotak Life Insurance Company is Kotak Mahindra Bank who is managing all the things in the insurance industry. Currently, the Kotak Life Insurance company has more than 32 products, 10 Unit Linked Investment Plans, 18 riders, and 9 group products to offer. Basically, Kotak Life has a diverse range of insurance products for all sections of society. Kotak Group has gotten many awards in the industry of financial services. Moreover, they have been recognized consistently for their achievements.

1. ICICI Prudential Life Insurance

Claim Settlement Ratio: 92.03%
Premium (in INR): 12502

ICICI Prudential Life Insurance Company Limited was incorporated in the year 2000. It is the first private life insurance company and one of the best life insurance companies in India. It has its presence all over the country with its bancassurance channel and distribution channels.

ICICI Prudential Life company has various long-term protection plans and savings plans for customers. Most of the people like to buy life insurance policies from this insurance company just because of its excellence in the field of insurance.

ICICI Prudential Life Insurance Company has been getting multifarious awards.

Investment

Best Liquid Funds 2020: Top 10 Liquid Funds In India To Invest

August 4, 2020 Alisha Gupta No Comments

What Are Liquid Funds?

Liquid Funds are kind of mutual funds that invest in fixed income market instruments with a maturity period of up to 91 days. It is very suitable for those who don’t want to block their investment amount in any kind of fund for linger durations and expecting fixed returns for their investments. The investment of liquid funds is done in treasury bills, deposit certificates, commercial papers, and other debt securities.

Liquid funds font come with a lock-in period which means one can withdraw money anytime time on the transaction will be reflected within 24 hours of application. No entry or exit loads are applicable to these funds with the major benefit of investing in these funds.

These are becoming the best funds to invest as some of the best performing liquid funds have the lowest risks, high credit ratings, and fixed returns with minimal lock-in and maturity period.

What Do Liquid Funds Provide In Return?

Liquid Funds have short term maturity periods providing liquidity to the mutual fund. It does not provide that much higher returns. Investors who are looking to invest their spare money are advised to invest in mutual funds but don’t invest the entire money that you have saved for emergency due to its quick withdrawal as it takes 24 hours to make transactions reflected in your account.

Liquid funds generate returns around 8%-10% depending upon the type its more than a normal savings bank account which is around 4%-6%. So preference must be investing in liquid funds. The risk factor of getting lost is quite low in this case.

Are Liquid Funds Safe To Invest?

Yes, investing in liquid funds is quite safe to deal with. It provides fixed interest rates and returns that low down from the risk of encountering loss on your investment. It offers high liquidity to the investors and suitable for those who don’t chase to get high credit risks.

Top 10 Best Liquid Funds

Now let’s talk about choosing the type of Liquid fund in which you need to invest. On the basis of various quantitative and qualitative parameters, it is suggested to choose the liquid funds as per your requirements. Also, keep your financial goals and risk-bearing capacity in mind while making an investment. Following I am going to share Top 10 liquid funds in India to invest along with the returns in the last three years.

▶️ Axis Liquid Funds

1 Year Return- 5.4%
3 Years Return- 6.7%
Category- Debt

Axis Liquid Funds are continually hitting the benchmark of the Debt segment. The fund is providing a good amount of average return which was 5.4% in one year. The investment amount is starting from a very affordable and low amount i.e. 500 INR. A minimum SIP investment amount that is required is 500 INR for this scheme. But the positive thing is that Axis Liquid Funds are one of the remarkable debt mutual funds in India.

▶️ Aditya Birla Sun Life Fund

1-Year Return- 5.5%
3 Year Return- 6.7%
Category- Debt

The fund performance has been remarkable and one of the best liquid funds to invest in India. The Aditya Birla Sun Life Fund has been providing 5.5% returns in one year. The minimum amount to invest in these funds is INR 500 and minimum INR 1000 is required for SIP investment. Investing in these funds is a quite secure deal. These funds let you withdraw money anytime and even allows you to keep zero balance in your account.

▶️ ICICI Prudential Liquid Funds

1 Year Return- 5.4%
3 Year Return- 6.6%
Category- Debt

ICICI Prudential Liquid Funds is a very affordable fund to start with and maturity period of up to 3 months. You can park your spare amount in this kind of investment and can expect better returns. It also allows you to withdraw money whenever wanted. There are very fewer chances of incurring losses in liquid fund investment. A minimum of 99 INR is required to invest in a lump sum or SIP Investment.

▶️ Baroda Pioneer Liquid Fund

1 Year Return- 5.3%
3 Year Return- 6.6%
Category- Debt

The fund performance has been providing a return of 6.6% in three years and 5.3% returns last year. A minimum of 5000 INR is required for lump sum investment and 500 INR for SIP investment. These funds provide a high level of liquidity the investor can invest and withdraw amount anytime. The transaction will take a maximum of 24 hours to reflect in your account.

▶️ HSBC Cash Fund

1 Year Return- 5.2%
3 Year Return- 6.6%
Category- Debt

HSBC Cash funds have a maturity period of up to three months i.e. 91 Days. One can expect higher returns than a savings account in the bank. The risk factor while investing ion the HSBC cash fund is quite low than other investment schemes. The returns provided by these funds in last year are 5.2% and three years 6.6%. The minimum lump sum amount that is required to invest this scheme is 5000 INR and the minimum SIP investment is 500 INR.

▶️IDBI Liquid Funds

1 Year Return- 5.5%
3 Year Return- 6.7%
Category- Debt

IDBI is an investment in debt scheme having a maturity period of 91 days. It is the best investment scheme for those who are willing to invest for a shorter time period. The fund’s performance is going good providing returns of 6.7% annually in the last three years and 5.5% of return in last year. 5000 INR is required to invest a lump sum in IDBI liquid funds and 500 INR is required minimum to invest in the SIP investment plan of IDBI funds.

▶️ Mahindra Liquid Funds

1 Year Return- 5.4%
3 Year Return- 6.7%
Category- Debt

Mahindra Liquid funds are debt segment mutual funds that provided 6.7% of returns annually in the last three years and approximately 5.4% return in last year.

What is the minimum lump sum investment and SIP required investing in Mahindra funds?

Well, Mahindra Liquid Fund’s minimum lump sum investment is 1000, and SIP investment is 500 INR which is very economical for an investor. It provides high liquidity and good returns along with a low amount of risk to its investors.

▶️ Nippon India Liquid Funds

1 Year Return- 5.4%
3 Year Return- 6.7%
Category- Debt

Nippon India Liquid funds have a maturity period of up to three months i.e. 91 Days. One can expect higher returns than a savings account in the bank. The risk factor while investing in Nippon India is quite low than other investment schemes. The returns provided by these funds in last year are 5.4% and three years 6.7%. The minimum lump sum amount that is required to invest this scheme is 100 INR and minimum SIP investment is 100 INR.

▶️ LIC Liquid Funds

1 Year Return- 5.4%
3 Year Return- 6.6%
Category- Debt

LIC funds are open-ended debt mutual funds schemes that provide high liquidity and a low risk to the investor. It is also one of the best funds to invest in as it generated a quite reasonable return on your investment.

These funds have given 6.5% of annual return in the last three years and last year the return was 5.47%. A person can invest in the LIC liquid fund lump sum investment scheme with an amount of just Rs.5000 and for starting investment in SIP investment plan the minimum amount that is required is 1000 INR.

▶️ Tata Liquid Funds

1 Year Return- 5.4%
3 Year Return- 6.6%
Category- Debt

Tata Liquid Fund is a debt fund scheme that is launched by Tata Mutual Fund. This scheme has given an average return of 6.6% in the last three years and 5.4% of returns last year. The minimum amount required to invest in lump sum investment is 5000 INR and 500 INR for investment in the SIP investment plan.

Investing in Tata Liquid funds is the best way to utilize your ideal cash with quite high returns as compared to a savings account in a bank. These funds are best suitable when you want your money back in a very short period of time.

Investment

Top 10 Best ELSS Funds 2020: Save your Tax with ELSS Funds

July 31, 2020 Alisha Gupta No Comments

What is ELSS Funds?

Equity Linked Saving Schemes (ELSS), popularly known as an open-ended mutual fund. ELSS is equity-oriented mutual funds which is one of the top ELSS mutual funds invests in equity and its securities of companies. One who invests in best ELSS mutual funds is eligible for saving tax under section 80C of the Income Tax Act.

Moreover, If you invest in ELSS mutual funds, you can save up to Rs 1.5 lakh per year.

Why Invest in Top ELSS Funds for saving tax?

Top ELSS funds have different schemes that have great product features than any other tax saving investment options like ULIP, NSC, PPF, and FDs.

→ Higher Returns

Equities can be very volatile in the short term as ELSS funds have the potential to generate higher returns.

→ Shortest Lock-in Period

The lock-in period of ELSS funds is just 3 years as it is one of the lowest among all the tax-saving investment options. These investment options are eligible for deduction under Section 80C of Income Tax Act. Hence, the best ELSS funds offer the highest form of liquidity among all tax saving investment options.

These tools are the benefits of achieving future financial goals like funds for children’s education.

Who Should Invest in ELSS Mutual Funds?

Anyone can invest in ELSS mutual funds. But it is only suitable for those people who are knowledgeable and have enough guts to take risks and the ability to pay long term.

In the initial year, young investors can invest with a long-term horizon. So it is the best ELSS funds that are suitable for young investors. Because they have enough time to unleash the power of compounding to the fullest to utilize high returns while saving heavy taxes of up to Rs 46,800 a year.

Advantages of ELSS Mutual Funds

a) One of the shortest lock-in periods of three years

b) Offer much higher returns than other tax saving options like PPF or NPS.

c) Earnings are taxed only at 10% of the gains.

d) No maximum limit to invest.

e) It does not require in-depth knowledge to invest. These investments can be easily managed by professional fund managers and maximize the return on your investment.

How to Evaluate The Best ELSS Mutual Funds?

→ Expense Ratio

The expense ratio shows how much you need to invest in managing the fund. If the expenses are low; it will translate into higher returns. Thus, you need to choose that fund that has a lower expense ratio.

→ History of Funds

To check the accurate performance of funds, you have to determine the quality of stocks and benchmark. If a fund does not perform well or the stocks are of higher performance, then, in that case, fund delivers high returns.

→ Return Benefit on funds

You need to analyze and compare the performance of funds with other competitors and make sure the fund has been consistent over the past years. These are factors that one needs to consider while investing in funds.

Top 10 Best ELSS Mutual Funds

If you are really concerned to invest in the best ELSS mutual funds, then you are in the right place.

To make sure you are on the right path. You need to compare different parameters of different funds before choosing it.

Basically, investing depends upon financial goals, the risk appetite of investors. The following table shows the top 10 ELSS funds based on the past one and three years of returns.

Fund Name	Category	1-Year Return	3-year Return
Invesco India Tax Plan	Equity	5.29	4.56
Axis Long Term Equity	Equity	0.13	4.92
Aditya Birla Sun Life Tax Relief 96	Equity	3.25	2.28
ICICI Prudential Long Term Equity	Equity	-5.48	1.96
Tata India Tax Savings	Equity	-3.22	1.45
Kotak Tax Saver	Equity	-0.70	2.11
BOI AXA Tax Advantage Fund	Equity	15.81%	14.99%
UTI Long Term Equity Fund (Tax Saving)	Equity	4.68%	4.86%
Mirae Asset Tax Saver Fund	Equity	4.36%	16.88%
DSP Tax Saver	Equity	1.09	1.97

Tips for Investing in ELSS Funds

Don’t wait for the previous month’s financial year for investing in ELSS. Instead, you can choose the SIP option to divide your investments across the whole year. Moreover, you can get benefits from cost averaging during a market correction.
If possible, while making fund selection, compare the previous performance of 3-, 5- and 7-year periods. Comparing past returns will help you in knowing how they handle various market conditions.
Select the direct plan for getting the benefit of higher returns. More importantly, it has a lower expense ratio.
Don’t get in the trap of dividend option. Except for this, choose the growth option to get benefits.

Advices Strategy

Important Things To Know Before Investing In Mutual Funds

July 17, 2020 Alisha Gupta No Comments

What Do You Mean By Mutual Funds?

Investing In Mutual Funds is a very popular option these days. Some mutual funds are even capable of doing double your investment if used it well for the long term. In mutual funds, the fund house company collect funds from various investors and invest them in various market securities like stocks, bonds, and other money market instruments. These funds are handled by professional fund managers who have the responsibility for investment in various securities and earn a profit on behalf of investors. The gain or loss was proportionally distributed among all shareholders.

“Mutual Funds Are Subject To Market Risks”- What Does That Mean?

Mutual Fund money is invested in buying stocks and bonds. The value incurred from mutual funds depends upon the performance of the securities. If your buying mutual funds then it’s completely funding manager’s responsibility to invest it with his/her expert opinion. Buying of mutual funds refers to buying a part of the performance of the securities be it profit or loss, all has to be bearded by investors. The fund manager doesn’t invest money in a single share but can divide that money into different portions and can use it to invest in different securities.

Difference Between Investing In Shares And Investing In Mutual Funds

Investing in mutual funds makes you free from various complex investment decisions. In it, an expert on your behalf takes decisions invests your money in various market securities or companies. Unlike shares, a mutual fund does not give voting rights to its investors.

Investing in shares is quite costly to process and demands high expertise. So if you don’t give knowledge of the share market then it is suggested to go for Mutual funds. It offers quite an easy process and investment plants starting from just INR 500.

Types of Mutual Funds

Mutual funds are categorized into multiple types on the basis of securities targeted and types of return. Following are the types of Mutual Funds-

▶️ Equity Funds

The mutual funds that are invested in stock are mutual funds. The investments probably expected to grow faster both in terms of profit and loss as well. These are best suitable for those who want to check for instant results as these opt an aggressive approach for investment. Equity funds are further divided into different categories i.e. on the basis of companies- small-cap, mid-cap, and large-cap on basis of investment approach- aggressive growth, value stocks, income funds

▶️ Fixed Income

Fixed-income mutual funds pay a fixed set of returns. The money is generally invested in government bonds, debt instruments, or corporate bonds. People who want to play safely while Mutual fund investment then this is perfectly suitable for them. These funds have the least risk to invest in as the return is fixed and high.

▶️ Money Market Funds

The money market funds are very safe to invest in. Money is invested in short-term debt instruments that returns a little more amount than from normal savings account return. One needs not to worry about losing the principal amount that you invested, it’s safe.

▶️ Income Funds

Income funds are invested primarily in government, high – quality corporate debt until it gets mature and provides interest. The main motive of these funds is to provide steady cash flow to investors as only conservative investors invest in these kinds of funds.

▶️ Global Funds

Global Funds mutual funds are those in which investment is only done in foreign assets that are outside your home country. These funds are tending to have a unique country’s political and economic risks and gains. It actually increases diversification and reducing risks as return from foreign countries’ assets may be uncorrelated with returns at home.

▶️ Balanced Funds

Balanced funds opt hybrid kind of approach. It splits money among various types of investments and tries to maintain a balance of higher returns by reducing risk to minimal. So the investment is done a mix of equities and income securities.

Things To Know Before Investing In Mutual Fund

1. Choose For A Professional Fund Manager

Fund manager plays an important role in making your investment a pure success. So choosing a professional fund manager is your task. Check for the experience and work progress of the fund manager so that you can ensure that your money is in safe hands.

2. Know About Actual Investment Allocation

Being investor, you have complete right to know that where your money is actually getting invested? Whether it is invested in debt, equity or debt + equity? It is very important.

3. Study About Funds Performance

It’s important to study funds past performance in order to get an idea of fluctuations in the profit rates. But keep in mind that past performance doesn’t guarantee future. So don’t rely on this factor only. Past results are not so reliable so in this case, one can’t rely on star performances of the past year. The balance of all factors is necessary.

Tip: Check for the fund consistency and fund’s performance in different cycles rather than ranking.

4. Entry & Exit Charges

Investors tend to pay multiple types of charges before making an investment in mutual funds from where the mutual fund companies make money. So before investing it is important to know about these fees and loads of mutual funds. Entry load refers to fees that are charged when you join the mutual fund and exit load is charged when selling your mutual fund units within a particular period of time. So choose to invest in funds with low entry & exit loads.

5. Choose For Find Type That Best Suits You

Our ultimate goal is while investing in mutual funds is to get maximum benefits and gains. So for this study for the types of mutual funds, your capacity to invest, and what amount you are willing to invest? From the available types of mutual funds, it’s your call to pick one of multiple after a complete analysis of your requirements. The fund manager can advise you rest depends upon you as an investor.

6. Diversification

There is diversification in mutual funds that means there are fewer chances of instant rise or fall. Due to diversification, if one investment falls one can expect to gain from another investment. As a result, there are lessee’s chances of risk to investors. A mix of securities can be purchased for a balanced portfolio. Try to take the maximum benefit of diversification.

Advantages of Mutual Funds

Mutual Funds are easy to understand. There is no need to have knowledge about stock market, finance and economics, even a common man can take the benefits of Mutual funds.Diversification for investing in securities. If one brings loss to you other can bring profit as well.
It is very easy to buy mutual funds be if from brokerage firms or online.
Multiple types of mutual funds are available in the market so one can opt any type of mutual fund as per their choice to ensure maximum benefit.
One can start investing in Mutual Fund from just 500 INR which is quite affordable, everyone can do it.
Your money is in the hands of professionals so one can get quite relaxed with this aspect. Professionals will use best of their skills to ensure profit to their investor’s amount as they invest hours of research and analysis of the mutual funds before doing any investment.

Disadvantages of Mutual Funds

Our profit also gets diluted with the concept of diversification. If it decreases the risk of loss to the investor on the same hand it also lows down the chances of profit.
Money invested, gets block down for a certain period of time. Exiting from the mutual fund scheme is an expensive deal as that portion doesn’t bring any interest to the investor.
Sometimes costly management fees for mutual fund investment make an expensive affair. So make sure to make all estimates and calculation before investing.

Final Verdict

Mutual Fund is an easy approach for investment. Choosing the Best Mutual Fund to invest in is quite a complex task. With little research and keeping in mind the following factors, one can expect success in his first investment in Mutual Fund.

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