Owning a credit card is the norm nowadays. These cards make your life easier while shopping or paying bills. You do not have to carry cash anymore, thereby making these card an undoubtedly safe choice. However, the normal credit cards are becoming outdated. The reward credit cards are the smarter choice now.

 What is a reward credit card?

The reward credit card works just like any regular card but it has the added benefits of reward points and cashbacks. Every time you use your reward card, you will get points for spending money. You can make as much as millions of points every year and then redeem the points for some more shopping. These cards also offer you cashback on specific purchases, which practically works as discounts on what you are buying.

Different kinds of rewards credit cards

The reward credit cards can be divided into three categories. These include the following

• Accelerated rewards

There are reward cards that you can use for specific purposes only and they offer you reward points for every purchase. For example, if you are using a co-branded fuel credit card then you will get the benefit when you buy fuel. You can later use the points for the same purpose.

• Milestone rewards

These credit cards work just like how they sound. You get rewards for reaching certain milestones. The best part of it is not only the fact that you get huge reward points on reaching an expense milestone, but you also get to enjoy the fun of reaching the milestones by being a part of an elite league.

• Everyday rewards

This rewards credit card is perfect for the people who shop on a regular basis. The card offers you reward points every time you swipe the card. This means, whether you are buying groceries or paying for stuff online, you will get points as rewards.

Eligibility

Getting rewards credit cards is easy. You can apply for them online. All you have to do is check if you meet the expected eligibility criteria. They can actually vary from bank to bank. However, every card has some basic conditions.

• You will have to submit your bank statement that contains your credit information. It is to make sure that the bank knows you have a regular source of income.
• You need to be an adult to get a rewards credit card. The minimum age requirement is 18 years.

• A good Credit Score can always be helpful. You can check your current score online and if it is more than 750 then it becomes easier to get a rewards credit card.

Once you have your credit card delivered to you, start using it at the earliest to enjoy all the benefits.

The Indian share market has the great potential to generate handsome returns. Many people park their savings in the stock market with the hope of capital appreciation. With wise decision making, the stock market can make fortunes for you. There is no denying that sometimes the stock market can be risky, but the amount of returns that can be made here is unmatched. And as right said, ‘no risk, no returns’, same is the case with stock market.

In this article, we will list down few of the ways through which you can earn money by trading and investing in the share market.

Capital Appreciation

When you invest in the share market by purchasing stocks, there is a good probability of capital appreciation. Capital appreciation or capital gains means the price of stock purchased going high and above your purchase price. The stocks have the potential to give manifold returns and in many instances, the returns are as high as 100 percent or more. However, there are equal chances of the stock falling down from your purchase price. Therefore, always purchase stocks after doing good research.

Dividends

When the company decides to share its profits with the shareholders it is done in the form of dividends. You can earn good money by investing in profit-making companies and earn dividends out of it. The declaration of divided is done on per share basis. In the long term, dividends act as a consistent source of income from the share market.

Invest in IPO

IPO means Initial Public Offer i.e. a company deciding to list itself on the stock exchange by issuing shares to the public. You can apply for shares in the primary market through IPOs and earn good returns. In the recent years, IPOs have given handsome listing gains and long term profits to the shareholders. However, it is always advisable to study the company profile, prospectus and issue price before investing in the IPO.

Diversified Portfolio

Since stock market is perceived as a risky investment avenue, you can reduce the risk by diversifying your portfolio. A diversified portfolio is one that has stocks belonging to many sectors. By purchasing stocks of various sectors you protect your portfolio from the loss in one sector with profit in another sector. Long term investors can make good money in the stock market by making a well-diversified portfolio.

Intraday Trade

Intraday trading is one of the most popular ways of making money through the stock market. Intraday trading is purchasing and selling the stocks on the same day. The aim of the intraday trading is to earn profits and close the position in the same trading session.

Follow the Market Trend

You can make money in the share market by following the market trend. During the bull phase of the market, you can purchase the stock for the long term and book profits at the right levels. While during the bear phase of the market you can short sell the stocks in the future market and timely book short term gains.

Technical Analysis

Technical analysis involves reading the long term and short term charts of the stocks. For long term investors, technical analysis helps in determining the long term price of the stock. While for the short term investors like intraday traders, technical charts of the stock predict the short term price movement. Therefore, with the help of technical analysis, you can make money in the stock market.

With the help of the above points, you can make handsome profits in the stock market. If you are a beginner in the share market and need assistance with trading, you may open a demat account with Kotak Securities and grow your money.

Being a worthy investment option, Unit Linked Insurance Plan [ULIP] has gained mass popularity after the Long Term Capital Gains [LTCG] tax reforms. Due to LTCG reforms, ULIPs have not only become affordable but also allow tax benefits which, in turn, helps the investors to save more money. Ever since then, a majority of investors are scurrying around to invest in a ULIP Plan.

Whether you’ve already purchased a ULIP or you’re going to purchase one soon, understanding ‘what is ULIP plan?’ and its important facts are equally important. Policies. Take a look at these few things mentioned below before the purchase of a policy:

List of things to keep in mind about ULIP Plans:

Learn the working process

The working of the ULIPs typically depends on the functioning of the premiums. When you initially purchase a ULIP plan, a major chunk of the premium is spent towards the expenses of the policies. Once it is deducted from all the required expenses, the premium is further distributed into the sum assured and the investment. Later, the units are allocated for the invested amount into funds based on your choice.

Consider your risk appetite

Investment in ULIPs means keeping your risk appetite in mind. For instance, if you’re an aggressive investor and can bear high risks, invest in equity funds. While investors above 30 years can invest in balanced funds, those above 50 years can invest in debt funds due to low-risk involvement. Therefore, understand your risk appetite and make an investment in ULIPs accordingly. Besides, an investor can also switch the funds in case you’re not satisfied with the returns received on the investment.

Understand ULIP charges

Investment in ULIPs involves multiple expenses in order to suit the needs of policyholders. Hence, understand the ULIP charges thoroughly before making an investment in a ULIP. Take a look at the charges mentioned below which are applicable on ULIPs

• Fund management charges
• Mortality charges
• Premium allocation charges
• Policy administration charges

Opt for a long term investment

Since the equity markets are volatile in nature, it is important to stay invested for a longer run in order to gain higher returns after the market bounces back. Keeping the volatility of the market in mind, ULIPs are particularly crafted for a longer duration. Therefore, look for a 10 years investment goal and stay invested in the plan until the maturity period. Moreover, you can gain maximum benefits if you stay locked for an extended period.

Choose the right coverage

Since ULIPs offer dual benefits of protection and growth, it is easier to choose an adequate amount of coverage suitable for you and your family. This coverage is, however, decided based on the payments of the premium. The coverage or the sum assured that you decide will be provided to the nominee, at the time of your death. Therefore, it is advisable to wisely select the coverage as it safeguards your family in your absence.

Know the tax benefits

An allowance on tax benefits has attracted a vast number of investors. Under a ULIP plan, the premiums paid towards the policy are eligible for a tax deduction of Rs. 1.5 Lakh on the taxable income according to the Section 80C of Income Tax Act, 1961. Additionally, the maturity amount received by the nominee on the death of the policyholder is absolutely tax-free.

Now that you all the vital information about investment in a ULIP policy, trust us, your investment in a ULIP will be worth all your hard earned money. Since a ULIP is a dual product for investment and insurance, it safeguards the interests of your families as well as your interests in the equity markets. With its higher returns and tax benefits, you can achieve your financial goals with ease.

When choosing mutual funds, you may be faced with a big decision. Among the more baffling choices, you may have to make another miniscule choice. Whether you chose a mutual fund that offers a dividend option or one that provides a growth option. Both types have their set of advantages and disadvantages. Hence depending on your individual needs, your financial objectives and circumstances you can decide either option as the right fit.

If you have a demat account with a brokerage company such as Kotak Securities, you can take help of the research reports and expert guidance to simplify this and other choices as per your investment portfolio.

Dividend option – If you chose a dividend option, the dividends received from the equities by the mutual funds do not get reinvested into the funds. Rather, they are distributed equally among the investors.

Fund managers of a mutual fund scheme declare dividends as and when the scheme gets them. The dividend pay-out affect your NAVs as well. For instance, you invested Rs. 10 in an equity fund and the NAV of the mutual fund rises to Rs. 15 with unpaid the dividend amounts of Rs. 2. Then, after the dividend pay-out of Rs. 2, your NAV could reduce to Rs. 13.

Growth option – The growth option of a mutual fund works like a cumulative option. If the mutual fund scheme earns dividends, it does not pay them to you. Rather, these profits are accumulated and become part of the mutual fund scheme through reinvestment. Hence, when the mutual fund scheme earns dividends, its NAV begins to rise.

To receive any pay-out from the growth option of a mutual fund scheme, you need to sell its units. For instance, you purchased 100 units of an equity fund through the growth option. The NAV of the fund was at Rs. 40 at the time of purchase. Over one year, the scheme’s NAV rose to Rs. 50 of which the dividends amounted for Rs. 3. However, this dividend doesn’t get credited into your account; it rather goes into your mutual funds as reinvestment. If you want to redeem the dividend amount of Rs. 300 (100 units into Rs. 3 dividend), you would have to sell 6 units.

Deciding on a suitable option

You can go for either option depending on your investment needs. Historically, a dividend option is seen to perform best when markets are riding high. With a consistent rise of a mutual fund’s NAV, the prospects of the fund declaring dividends are higher.

However, if you are banking on your investments for a steady income, you may want to opt for the dividend option. It is essential to note here that you could lose out on the power of compounding as dividends are not reinvested back into the funds. Hence, as compared to the growth option of a mutual fund scheme, wealth accumulation could slow down with a dividend pay-out option.

If you have a long-term investment horizon, you can consider the growth option. It is useful in meeting long-term financial goals such as building wealth towards retirement. If you do not need dividends or a steady income, a growth option can be your best choice.

Inflation is on the rise in India and hence our savings are depleting slowly. The need of the hour is an investment instrument that not only survives inflation but also reap impressive returns.  One such investment option is Tax saver Mutual Fund i.e. ELSS, which not only saves your tax but also is a prudent investment option for wealth creation.

Every mutual fund scheme has category and objectives that are pre-defined. Tax saver mutual fund invests in equity markets and has a lock in period of 3 years before which they cannot be redeemed [principal is blocked; dividend payout option available] The term is commonly referred as lock-in period.

Mutual fund returns are dependent on the risk the scheme composition is willing to take. High risk fund offer high returns, medium risk offer medium returns while the low risk fund aims to keep your principal safe.

How tax saver mutual funds help save tax

Tax saver mutual fund offer tax benefits of upto Rs 150,000 under Sec 80C of the Income Tax Act, 1961. This implies that for investors falling under the highest tax bracket can save upto Rs 46,800 in taxes. You can invest more than the prescribed amount, however, the excess amount does not qualify for tax benefits.

As per the latest tax revisions, Capital gains and Dividend payout from ELSS are subject to 10% tax if the gains exceed Rs 1 Lakh. Despite these changes, Tax Saver mutual fund still remains the most popular investment option under Sec 80C.

Choosing tax saving mutual funds to invest in

You can choose a Tax Saver Mutual Fund basis various factors like past fund performance, fund manager managing the fund and most important after consulting your Financial Advisor.

You can invest through Lumpsum or Systematic Investment Plan [SIP] which allows you to invest small amounts every month instead of lump sum payment.