The benefits of having a demat account are plenty. No wonder why an increasing number of people are opting to open a demat account. By having one, investors don’t have to worry about maintaining physical copies of their trading documents. For those who are unfamiliar with this concept, a demat account is used to hold stocks and securities electronically.It’s a convenient alternative with enhanced security features. So, customers don’t have to worry about obtaining counterfeit certificates. One of the main objectives of a demat account is to facilitate online trading and make all documents easily accessible.

You would be pleasantly surprised to know that your demat account is quite similar to your bank account. The only major difference is that a bank account contains money while a demat account holds securities like shares of a company, mutual funds, bonds or exchange-trades funds. It allows users to hold them in a dematerialised form instead of physical certificates.

Investors wishing to invest in stocks are mandatorily required to have a demat account. To open such an account, you need to pick a Depository Participant (DP). DPs are those institutions that facilitate contact between depositories and investors. There are a couple of depositories registered with SEBI – CDSL (Central Depository Services Limited) and NSDL (National Securities Depository Limited). An account that you maintain with a DP is called demat.

The terms and conditions, fees and other important criteria of your account will be determined by the DP who acts as a broker.

Now, let’s discuss some of the benefits associated with a demat account.

Lower risks

Physical securities are vulnerable to losses, thefts or damages. Additionally, investors need to be wary of fake securities or bad deliveries. All these risks can be completely eliminated by opting for a demat account.

Easy holding

Storing and maintaining physical certificates is certainly not an easy job. Monitoring their performance is an added responsibility. A demat account is a platform that allows users to conveniently hold and track all their investments in one place.

Odd lots

Buying and selling physical certificates is inconvenient and can only be done in specific quantities. The option of dealing with single security or odd lots was not available previously until the advent of demat accounts.

Reduced costs

There are several additional costs associated with physical certificates like handling charges, stamp duty and many other expenses. Thanks to demat accounts, investors don’t have to shell out extra money from their pockets.

Less time

The time required for executing a transaction has been significantly reduced due to elimination of paperwork. So, customers can make more purchases and sales of securities within a shorter time frame.

It’s safe to assume that majority of Indians in 2019 have a bank account. Thanks to technology, essential financial services are being made available even in the remotest parts of the country. This has made it possible for people to open demat account online as well. All you have to do is visit the Axis Direct website and follow the instructions to open demat account online and start trading today.

With the compulsion of third-party insurance for your two-wheeler, we are sure you are probably scurrying around last minute to do so. Covering your bike with two-wheeler insurance not only keeps you on the right track but also financially provides for you in times of mishaps. However, failure to comply with the rules of the Motor Vehicles Act, 1988, leads to hefty penalties.

So take a look at these procedures of a two-wheeler insurance third party procedures in order to fasten your purchase:

Why should you invest in a Third-party two wheeler insurance?

Typically, third-party insurance safeguards the riders from any kind of physical damage caused to the third party. However, it does not cover any damages either caused to you or your vehicle. Depending upon the insurance company, third party insurance is based on a majority of aspects that a customer should be aware of. Therefore, go through these factors for a better understanding of the insurance policy

1. Coverage
2. Premium
3. Vehicle
4. Engine capacity
5. City of registration

Apart from the only advantages of the liability, third-party two wheeler insurance provides its customers with multiple other benefits. These benefits allowed by third-party insurance ensure the right protection during the times of calamities. Go through these few of the most common benefits given by a majority of insurance companies

1. Offers coverage for the third party damages or injuries as well as for long term coverage for a period of 5 years.
2. If a personal accident cover is obtained, only then does it cover the disability or the death of a rider.
3. Includes low rate of premiums as compared to other insurance policies.
4. It is not only easy to buy but also requires a very little hassle of paperwork.

What is the process of renewal of Third-party insurance?

The best time for third party two wheeler insurance renewal is a day prior to the expiry date. It is your responsibility to keep a constant check on the expiry date. Keeping a tab on the actual date of expiry of your policy will eventually help you to prevent inspection charges. Additionally, it is also essential to run a check on rebates before renewing your policy. Hence, opt for two wheeler insurance online while renewing. Consider the following things before you opt for the renewal procedure:

1. Keep your ongoing policy handy for reference.
2. Use your debit card or net banking details for the renewal.
3. Make use of your certificate of registration of the insured vehicle.

What is the difference between Third-party insurance and comprehensive insurance?

When it comes to two-wheeler insurance, it comprises of two types of policies. While the first type is third-party insurance, the second type is comprehensive insurance. Both these policies are absolutely different in not only their approaches but also their meaning. Therefore, go through the differences between both of these policies in order to avoid confusion at the time of purchase

Now that you know everything before purchasing third-party insurance, when are you planning to invest? If you are skeptical about its process and the policies, then the best way is to compare multiple policies on the websites of the general insurance companies. It will provide you with a certain clarification about the availability of different policies or you can easily contact any expert for professional help.

Mutual funds are one of the most popular investments in India. They are considered as a less risky and highly flexible mode of investment as compared to equity shares. Mutual funds can help you to achieve long-term goals and save tax. Here is all you need to know about mutual funds.

What is a mutual fund?

A mutual fund is a financial instrument that collects funds from the investors and invests money on their behalf. This amount is invested in bonds, money market instruments, stocks, and other assets. A mutual fund is managed by an asset management company and your investment is managed by a fund manager.

Types of mutual fund

You have the option to choose from the various types of mutual funds. Every fund will have a fund manager who will make investment decisions. The fund manager will make allocations in different securities in the market. You can choose from debt, growth, hybrid, and balanced funds keeping your long-term goals in mind. The risk and return criteria of all the funds vary. It is advisable that you identify your long-term goals and investment purpose when you choose a fund. Compare the returns and then make a wise decision.

How to invest in mutual funds

Investing in mutual funds is a very simple process. Once you have set your long term and short-term investment goals, you need to consider your risk appetite and then choose the fund you want to invest in. You can use the mutual fund calculator to determine the amount of money you will be able to generate if you remain invested for a particular tenure. The minimum amount of investment you can make is INR 500 and there is no limit to the maximum amount. You will now have to decide if you want to make a lump sum investment or set up a Systematic Investment Plan. In an SIP, you will have to make a regular amount of investment over the tenure of the plan. It is easier than making a lump sum investment and it brings financial discipline in your life.

The next step is to buy mutual funds independently or you could seek the assistance of a professional for the same. The professionals will be able to explain the terms and conditions of the fund and will process the transaction on your behalf. You will be required to complete the Know Your Customer [KYC] verification for a transaction to be carried out successfully. Remain invested until the end of the tenure in order to generate higher returns.

The trick is to diversify your portfolio with different types of funds so that there is a low risk along with the possibility of earning high returns. When you choose a fund, you need to consider the risk and return associated with the same. You also need to review the portfolio from time to time in order to ensure that your fund is performing well.

Everyone loves travelling in order to explore new places, new things, new culture, new people, and so forth. However, when you’re in an unknown destination, the probability of something going wrong might be high. In order to cover you in times of exigencies, the insurance companies have introduced travel insurance for the betterment of all the travelers. So if you’re someone who is soon going to be off for a new adventure, then you surely require travel insurance in order to gain clarity.

Go through this guide on domestic travel insurance given below that will help you to figure out everything about it:

What is travel insurance?

Whether you’re travelling for business or leisure, travel insurance is a must for every kind of traveler. But can you guarantee your 100% safety when you’re on board? As uncertain as it may sound, risks involved while travelling are higher. While certain risks are inevitable, a majority of risks are covered by the insurance companies. Therefore, purchase a travel insurance plan since it not only offers financial assistance but also protects your loved ones when they are on their journey.

In order to safeguard the needs of every individual, travel insurance is divided into different categories. Under travel insurance, these categories are available for everyone right from an individual to the entire family. It is advisable to understand all the types of these categories accurately and then select the plan based on your requirement. Take a look at the types of travel insurance coverage mentioned below:

1. Single trip travel insurance plan
2. Multi-trip travel insurance plan
3. Asia travel insurance plan
4. Family floater travel insurance plan
5. Student travel insurance plan

What is the significance of travel insurance?

If you’re travelling either for a year or less than a year, the travel insurance policy is important for you. Since a majority of health insurance plans don’t cover the policyholder when he is travelling, it is advisable to invest in travel insurance. Travel insurance policy not only covers you in the case of physical injuries or damages but also provides coverage in times of unforeseen events like accidents, cancellation of trips, and so forth. Apart from that, it permits for other things as well. Take a look:

1. It provides coverage in times of medical emergencies
2. It provides coverage for the times when you desperately want to return home and leave your trip midway
3. It provides coverage in the case of theft of your luggage

What are the inclusions in the travel insurance plan?

In order to utilize the benefits of travel insurance to the fullest, it is important to understand what does your policy cover. For that, read the terms and conditions of the policy carefully in order to find the inclusions of the plan. While the inclusions typically depend upon the insurance companies, there are the most common ones used by every company. Therefore, keep these commonly used inclusions in mind before purchasing a travel insurance policy

1. Trip cancellation, curtailment, and interruption
2. Stolen or misplaced baggage
3. Accidents or death
4. Medical emergency
5. Loss or theft of any personal belongings
6. Travel delays due to weather conditions
7. Hijack

Now that you know everything about travel insurance plans, when are you purchasing one? Before selecting travel insurance either for your or your family, compare multiple policies as every insurance company provides different features and benefits in a policy. The further decision of selection, however, lies on you. Therefore, see to it that you invest in a travel insurance plan wisely in order to make the best use of it.

Mutual fund managers believe that debt funds are set to excel in 2019. According to data from the Association of Mutual Funds in India, more than 50% of debt fund assets that come from retail investors is increasing steadily.

Debt funds are types of mutual funds that invest in fixed-interest securities — for example – treasury bills, corporate bonds, government securities and other money-market instruments. Typically, the portfolio manager or asset management company charges a total expense ratio to manage your investment portfolio.

Now that you know what are debt funds, let us understand what makes them a good investment option in 2019.

Why invest in debt funds in 2019?

In 2018, the debt market faced tremendous volatility, just like the equity market. The primary factors responsible for this fluctuation were a rise in crude oil prices, yields going up, rising interest rates, tightening liquidity and currency depreciation among other macroeconomic factors. However, despite the volatility, debt mutual fund categories outperformed many equity mutual fund categories in the last one year and even topped the charts.

Among debt fund categories, the liquid fund category performed the best with a return of 6.89% in one year. Long-duration funds held the second spot with a yield of 6.84%. This was followed by gilt funds and short-duration funds in the third and fourth spot with returns of 6.56% and 6.00% respectively.

Last year’s uncertainties are now reversing. Oil prices have come down by almost 30-35%, and the currency has stabilized. Open Market Operations [OMOs] have reinforced liquidity back into the market, and more such continuous OMOs from the Reserve Bank of India will ensure that government securities remain stable and robust.

Benefits of investing in debt mutual funds in 2019

Following are the top advantages of investing in debt mutual funds

High liquidity

Debt funds are often compared to other traditional forms of investment, such as fixed deposits [FDs] because of similar investment terms and earning income over time. However, FDs have a mandatory lock-in period. If you wish to withdraw your money, they take a long time to process the withdrawal request. On the other hand, debt funds offer better liquidity, especially liquid funds, and can be cashed out more quickly.

Tax efficiency

The benefit of indexation keeps increasing with every passing year after you have held your debt funds for three years. This ultimately results in the investor paying less tax. Also, debt mutual fund schemes do not attract TDS. Whereas, alternative investment options such as FD attract 10.3% TDS if the interest income exceeds Rs. 10,000 in a single year.

Flexibility

Debt fund schemes provide great flexibility and can be easily transferred to equity schemes or any other scheme of your choice.

Higher returns

When compared to other investment options, debt funds are less exposed to market volatility and thus, less risky. They fare better in terms of returns when compared to a savings bank accounts or FDs. For example, the average rate of return on FDs is between 6% and 8%, whereas debt funds can fetch as high as 9.38% over a 3-year horizon.

Ways to invest in debt funds

There are two ways you can invest in debt funds – lump sum or Systematic Investment Planning [SIP]. While lumpsum investing is when you have a large corpus fund ready to invest, SIPs can be used when you wish to invest regularly in small amounts. Both these options have their own merits.

Conclusion

If you wish to invest in mutual funds, remember that debt mutual funds are integral for your overall portfolio returns in the long run. Based on your investment horizon and risk appetite, you will be able to strike the ideal mix of assets to reap maximum returns on your investment.

Monsoon is a time to cheer, plan long drives with your partner/friends and enjoy the pleasant, earthy smell of soil. But is it the same with your car? No.

With water logging issues, no proper drainage system and massive traffic chaos on road, your car certainly doesn’t enjoy a good time hitting the roads in the monsoon season. So, before the rainy season arrives, and gives your car major driving challenges, you must know how to take care of your car in the monsoon. Obviously, the most important thing is to have a car insurance, as you cannot predict what the rains might bring for your car.

But, apart from this, there are other essentials that you need to know –

1. An Umbrella Is a Must

Whether it is raining or not, you must carry an umbrella in your car, so that whenever it rains, and you need to get out of your car, you can just open the umbrella and avoid getting soaked in rain. Apart from just protecting you, the umbrella protects the car seat too. When you are completely soaked up in rain and you sit on your car seat, you actually leave moisture, which gets absorbed by the seat. Eventually, it begins to smell bad.

2. Pay Clear Attention To Tyres

Before the rainy season comes in its full swing, you must check the condition of the car tyres. Experts say that the tread depth should be good enough to avoid them from skidding in the rainy season. In addition to this, keep an eye of the tyre inflation as this will make sure that you enjoy a comfortable drive.

3. Ensure Optimum Brake Operation

Whenever necessary, you must clean and replace the brake pads, especially in the rainy season. Check the brake fluid levels and brake lines. Checking the brake lines will ensure that there is no water or air ingress and that the brake operation is optimum.

4. Keep Your Windshield Clean

Windshield gets very dirty in the rainy season, but thankfully there are wipers that clean windscreen very easily. But, before you do that, you need to be very careful. A wiper with dirt on it should not be used to clean the windscreen, as this might leave scratches on the windscreen. Therefore, you must use a cloth to wipe out the dirt, later you can use the wipers to clean the glass.

5. Keep a Medical Kit

Last but certainly not the least, you must not forget to keep a medical kit in your car. As already stated above, you cannot predict what’s there in store for you in the rainy season, so equip yourself with a medical kit for help in an emergency.

With these basic tips in mind, you can protect your car from any unforeseen damage in the rainy season. In case, you do not have a car insurance policy, do get it right away, as this is the major part of protection for your beloved car. Have a happy and safe monsoon!!