When you are young, the need to invest in a home may not appear to be too serious because it is then that the mind swings towards other priorities and spends. For many individuals, buying a home may not be an immediate need and the wise among them will take it as an investment to meet tomorrow’s need.
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Our society is evolving from the ‘joint family’ framework to the ‘nuclear family’ concept and this is augmenting the demand for more homes. Further, the common conviction that owning a home is a matter of self-esteem, dignity and pride from the general perspective of any individual cannot be underplayed. Thus you need to keep pace with your need and invest in a home for reasons mentioned below
Today there are a plethora of Banks and NBFCs offering housing loans at affordable interest rates based on your home loan eligibility.. When you start early, the more are the number of months you get for EMI repayment. Scout the home loan and real estate markets. There is every likelihood of a good deal coming your way.
There is the Government sponsored Pradhan Mantri Awas Yojana [PMAY] which provides interest rate subsidy on housing loans leading to lower EMIs. You will be guided on its procedures once you approach a builder or a home loan lender or when you just type – ‘PMAY’ on an Internet search engine. Act now and capitalize on this scheme.
A home, by and large is an investment that beholds a history of value appreciation. Value, not only in terms of personal & family recognition within the society but also from the financial angle, at a rate which is perceived to surpass the inflation rate as compared to other forms of investment.
When you buy a home with the help of a home loan, you can enjoy tax benefits by showing the interest amounts in your tax returns.
Once you purchase a house at an early age especially by virtue of a home loan, you naturally tend to start controlling certain unwanted expenditures, learn to be more disciplined and inculcate a broader sense of responsibility within yourself.
Certain needs, when let to surface themselves may do so at a time when you are unprepared. Do not be caught unawares. In today’s fast moving world, the trend is to create a need and keep pace to fulfill it. Investing in a home is no exception.
A growth in income is accompanied by growth in savings but also the dread of taxes. As we approach the end of a financial year, our research on tax-saving schemes increases. While we are all aware of numerous insurance policies and mutual funds that are beneficial, a majority of us might be ignorant about how to use a demat account for tax saving.
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A demat account, or dematerialised account, is basically an electronic safe for storing your securities or tradable financial assets. Stock trading, mutual funds and other securities can be stored in these online accounts. Demat accounts provide paper-free security transactions at the investor’s convenience. Individuals can choose to open demat accounts from the comfort of their home as banks and broking agencies offer online account opening facilities.
Usually, a layman may have inhibitions in trading due to the fear of probable losses. But a smart trader reaps the benefits of demat account by investing carefully and managing losses efficiently. Of course, profits earned through securities held in a demat account will have to bear tax. But there are certain schemes that allow you to allow tax saving through demat accounts.
To get a better understanding of the kind of taxes attached with these accounts, let’s look at a few common terms that are associated with dematerialised accounts.
Dividends
There are certain companies that distribute a percentage of their earned profits to their shareholders. Investors can enjoy this dividend that will be credited into their demat accounts on a regular basis. When the investors sell off these shares, tax will be levied on the profits earned through this trading. However, the dividend is tax free and thus investors can enjoy it as an additional saving.
Capital Gains
These are the profits earned from selling shares to another investor at a profitable price. These are both short term and long term.
Short-Term Capital Gain
If an investor sells shares at a higher price within a year of purchase, the profit earned is known as short-term capital gain. But, it’s important to remember that investors will have to pay 15% tax on this profit.
Short-Term Capital Loss
Shares sold at a loss within a year define short-term capital loss. But these losses can be balanced with the taxes levied on short-term capital gains. Investors have the freedom to compensate this loss with short-term capital gains under any asset class.
Long-Term Capital Gain
If an investor holds on to shares for more than a year, they are eligible to earn long-term capital gain. Initially, no tax was levied on long-term capital gains. This allowed investors to save on taxes by retaining shares for longer periods in their accounts. However, the 2018 budget amended this rule and today 10% tax is charged on long-term capital gains.
Long-Term Capital Loss
Sometimes, shares stocked for a longer period of time in the hope of earning profit, end up in losses. These are termed as long-term capital losses, which can also be balanced against the taxes levied on long-term capital gains. This way, an investor can save on taxes incurred on short- and long-term capital gains.
Carry Forward Loss
For investors who have faced many short-term losses, the ideal option is to carry forward the loss up to 8 years. But the only condition here is that the loss is balanced in the same asset class. This is beneficial in the long run as the investor can reduce his profits and the subsequent taxes on these profits.
Possibly one of the most favorable ways to invest and save on tax is an Equity-Linked Saving Scheme [ELSS]. This allows individuals to invest in securities and enjoy quick growth and dividends while simultaneously saving on taxes. It’s a one-time investment opportunity, with a lock-in period of 3 years.
To sum up, using a demat account for tax saving encourages shareholders to invest well. And with a fair understanding of market trends, investors can manage gains and losses to earn more income while saving big on tax.
Understanding only the technicalities of a ULIP Plan isn’t enough. This is because it is always important to know your ULIP premium amount and returns along with your ULIP Plan. And this is only possible with the help of a ULIP Calculator which eventually makes things simpler for you.
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As the name suggests, a ULIP Calculator is a tool used to calculate the maturity amount based on the investment values and returns expected by the investors in the future. Depending upon the premium amount and tenure of your plan, this calculator can calculate the returns offered by that ULIP plan. So if you wish to ease out your comparison and buying ULIP process, check out how to use a ULIP Calculator:
Why should I use a ULIP Calculator?
The best way to find out all your ULIP related calculations is by using an online ULIP Calculator. This is because it provides multiple benefits to its investors. Take a look at a few benefits of the same:
Ensures uncomplicated and hassle-free process.
Provides accurate calculations and delivers the expected results.
Helps the investors to take calculated decisions regarding the funds.
Ensures the investment is safe.
Compares multiple returns in order to make a logical choice.
Steps to follow for the right use of a ULIP Calculator
Before using the calculator, keep all the mandatory details like the investment amount, the type of fund, and premium payment ready. Once you enter these details, calculate the accurate amount of the rate of return on the investment.
Step 1 – First things first. Log in to the free online ULIP Calculator.
Step 2 – Enter the amount you want to invest in the ULIP Plan.
[Note – See to it that you at least invest a minimum amount of Rs. 1500 per month.]
Step 3 – Choose the frequency of your premium payment.
[Note – This premium payment can either be paid as a lump-sum amount or in installments i.e. quarterly, monthly or annually.]
Step 4 – Select the policy tenure.
Step 5 – Enter the amount of the premium payment which you want to allocate for the investment.
Step 6 – Select the lock-in period of your investment.
[Note – Ideally, ULIP Plans have a lock-in period of minimum of 5 years. However, it is advisable to invest in the longer lock-in period in order to get optimum results.]
Step 7 – Finalize the type of funds you wish to opt for.
[Note – You have different options of choosing from instruments, debt fund or you can select a combination of the two. Before you decide on it, check the past performance of the fund you wish to invest in. For maximum benefits, invest in the funds that have performed well in the past 3 years.]
Now that you know how to use a ULIP Calculator, don’t think twice about why I should invest in ULIP. Rather, think about how much easier your life would be with the help of a simple tool that can easily fulfill your dreams tomorrow.
With the right use of a ULIP calculator, you can not only ensure accuracy but also make effective investment decisions. In addition to this, ULIP calculators may still remain the best instrument for a longer run in order to invest safely and enjoy life cover and tax benefits completely.
Imagine cracking the CAT exam and getting through one of the Indian Institute of Management [IIM] campuses? Sounds amazing, doesn’t it. Most students, career-aspirants, have a dream of getting into an IIM. A degree from such a prestigious institute will guarantee you a good job and pave a career path to the top.
However, when you do crack the CAT exam, you will still be in two minds. Why? Mainly it is because of the funds. The minimum fee for an IIM is Rs. 13 Lakh, and that’s no easy feat. Feeling guilty to break your dad’s fixed deposit? Well, you don’t have to.
Simply apply for a personal loanin form of an education loan, and all your worries will be sorted.
Don’t dread the loan
Oh, so you dread by the name of personal loan thinking that lenders are going to chase you from day one to repay the personal loan? Not at all.
In case of an education loanfrom reputed financial institutions such as Tata Capital, you need to start repaying the education loan only after you finish your course and get a job. And if you study in an IIM, you don’t really have to worry much about getting a job because there will be a whole lot of companies wanting to hire you right away.
Personal loan interest rates for an education loan may range from 11% to 15% at most banks, depending on the evaluation of the student loan application. If lenders see bigger risks involved in the proposal they may charge a higher interest rate.
Paperwork
The documentation for education loan is also pretty simple. All you need is the admission letter or invitation for admission from the IIM you applied for, proofs of academic accomplishments such as mark sheets starting from 10th standard, Income proofs [six month’s bank statement and three month’s salary slip] of the co-applicant or parent or guarantor, along with the record of existing loans, and property documents if immovable property is offered as security [education loan is not a collateral-free personal loan].
If you are already employed, then you’d need to produce the resignation letter, acceptance of resignation letter or sanction letter for study leave. Keep all these documents handy, and your education loan will be disbursed in the least possible time.
Now, let’s look at a few reasons why it is a wise idea to take an education loan and study at an IIM for further education:
IIMs have a track record of 100% placement statistics. The top six IIMs – Ahmedabad, Bengaluru, Calcutta, Lucknow, Indore and Kozhikode have been consistently recording 100% placement over the years. In fact, more often than not, they get more placement offers than the number of students. So, your biggest worry – how do I pay off my education loan? – is laid to rest. Post an MBA at IIM you will not only get a well-placed job but you will also draw a fat pay cheque, so paying off your education loan won’t even pinch your pocket.
IIMs are one of the most prestigious tags that you can attach to yourself. It’s no less than an IIT or a Dr or an IAS. Taking an education loan is like that little investment, which you have to make to achieve that prestigious tag. On a lighter note, if you are planning to have an arranged marriage, then your value as an IIM MBA holder will multiply many folds in the marriage market. And if you are just a playboy, even then the IIM tag is a great weapon to impress girls and guys.
If you couldn’t manage to study in a reputed school or college, your only saving grace is to add a jewel to your crown by studying in an IIM. And this time around you won’t even have to worry about funds because if you can show your IIM admission letter, you will easily get an education loan. Studying in an IIM, even if it means by taking an education loan, is a great way to enhance one’s career. And once you emerge out of an IIM, nobody will dare question your schooling or graduation.
Last but not least, if you are planning to get an MBA degree, why even settle for the second best, and why not aim straight for the best that is an IIM? Whether you are an arts graduate, a science graduate or an engineer, your level will elevate once you do an MBA, and if you can do it from an IIM then there’s nothing like it. Do not stop aspiring or dreaming big for the lack of funds. There are several financial institutes such as Tata Capital, which are offering education loans at very competitive personal loan interest rates. So, just grab the offer, and aim for the best. Make the most of your career by opting for an education loan.
Uncertainty is the only certain thing in today’s world! With an increase in the rate of critical- diseases like cancer and sky-touching cost of healthcare services, having a mediclaim insurance has become a need. The mediclaim policy protects the insured person from sudden financial loss due to hospitalization.
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Just like health insurance plans, selection of the health insurance company is crucial in order to avoid any future complication. Selections of an insurance company can be tricky as well as very uninteresting task. Certain factors related to the insurance companies that highly influence the overall experience of policyholders. Here are tips to choose the right health provider:
History of the Company
Start researching the history of medical insurance companies before deciding the right health insurance provider. Consider their active years in the insurance market along with their mission, vision and values.
Legal Recognition
Choosing an insurance company that is accredited by the government is always good because such recognized companies do ethical business by following the rules and regulation made by the government.
The Financial State
Most of the insurance companies work with independent rating and analysis agencies. These agencies review the financial strength of the insurance companies by reviewing their assets and market research. According to their analysis, rating agencies score to the insurance companies and their products. A higher score indicates that the particular insurer is doing financially able to settle the claims.
Speciality
There are many insurance companies providing most types of insurances like a vehicle, health and so on. However, insurance companies are specialists of individual insurances. Check whether a particular company is a specialist in providing health insurances.
Coverage
Select the health insurance or mediclaim policy that provides coverage for all needs.
Premium
The premium for health insurances helps a lot in selecting the insurer. Premium is the amount paid by the purchaser to buy a mediclaim policy. Lower premiums do look attractive, but their coverage can be lower than need. The premium should be cost-effective in comparison with similar insurance companies.
Deductible
The amount policy-holder pays after filing a claim is deductible. Companies offering health insurance policies with low deductible generally ask for a higher premium and vice versa.
Facilities provided by insurance provider
Check whether the health insurance company provides facilities like cashless payment, online claim reporting, etc. These facilities are extremely helpful at the time of hospitalization as the entire intention behind buying health insurance is to reduce the burden of cash management at the time of hospitalization.
Claim Settlement Ratio
Every insurance company has its own rules and regulation to settle claims, which are described in the policy document. As per those, they settle every claim filed which eventually determines the claim settlement ratio. In simple words, claim settlement ratio is the total number of claims made divided by the total number of claims settled. Higher claim settlement percentage are good, as they mean that the company settles maximum claims made.
Discounts
Some insurance companies give special discounts on the premium of health insurances to the people living healthy lifestyles like non-smokers and non-alcohol consumers.
The health insurance or mediclaim policy is like a shield that guards the buyer and his family against financial losses. Nobody wants to feel alone at the time of a medical emergency. The health insurance provider is the one that helps to deal with the difficult times of medical emergencies. But choosing the insurer that does not provide sufficient coverage could be problematic. Thus, considering the above factors while choosing health insurance provider is a wise choice.
Intraday trading charts are popular among day traders because they help them track the movement of asset prices, and make trades accordingly. There are multiple types of day trading charts investors use, the most common being bar charts, candlestick charts, and line charts. However, the information they indicate is essentially the same and only changes in the way it is displayed. Every chart consists of certain indicators that allow traders to assess this information and make better decisions. Some of the most useful data structures provided by intraday trading indicators include:
Past and present up-to-the-minute price action
Momentum [or the lack thereof] in the market
Profit potential due to stock market volatility
Stock popularity through trading volume
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Now that you know what trading indicators do and why they are important, let’s take a look at some technical indicators that will assist you in reading the charts and trading with confidence.
Relative Strength Index [RSI]
Considered one of the best indicators for intraday trading, RSI denotes momentum by comparing the share price’s recent gains and losses. It follows the most famous investment concept of all time: buy low, sell high. By looking at the index, you can tell when a security is overbought or oversold. Typically, the 0 line indicates oversold, while the 100 line indicates overbought. Traditional interpretation dictates that when the RSI value is 70 or above, the security is becoming overvalued and is likely to go down.
Conversely, an RSI indication of 30 or below means the stock is undervalued and expected to rise. Most traders are recommended by analysts to sell when RSI touches 70 and buy when it falls to 30. However, make sure to analyze the RSI history and market volatility before making any trade.
Moving Averages
Moving Averages, or Daily Moving Averages [DMA], is a line on the chart that connects the average closing price of a security over a specific amount of time. It is advisable to look out for longer duration because the moving average becomes more accurate and reliable over time.
This indicator is the most-widely used because it provides a clearer view of the volatile stock market and helps traders determine the underlying trend of the price movement. Moving averages also maps out trend reversals and stop loss points. The rule most traders follow is to buy when the moving average is below the candlestick chart and sell when it is above.
Bollinger Bands
This indicator works on the same principle as Moving Averages, except with three lines instead of one. While the middle line is the 20-day Simple Moving Average [SMA], the upper is +2 standard deviation and the lower is -2 standard deviation. The general strategy is that when the price is hovering close to the upper limit, the security is expensive and will come down to the average. This is when it should be sold. And when it is near the lower band, it is cheap and will potentially move up. This is when it should be bought.
Using these indicators can make it easier for traders to maximize their returns and minimize risks. Interestingly, different traders interpret intraday trading charts in different ways, often using a combination of two to make a more precise judgement. So, while they are excellent methods of evaluating market trends and sentiments, you should use them in a way you deem fit.
Add-on covers, or riders as they are also known, are extremely beneficial car insurance products. You need to buy them at an added cost when you buy car insurance online. However, they offer so many added benefits that the extra cost hardly makes a difference. There are some excellent riders like the Zero Depreciation Car Insurance rider, the Engine Protection rider, etc. Take a look at this article to understand how you should select your riders to get the best value out of your overall car insurance coverage.
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Tips to select the best car insurance riders
Here are some tips for you to select the ideal riders when buying or renewing car insurance online
Assess your needs – First and foremost, you must remember that insurance requirements are individualistic. This means that a cover that suits your neighbor won’t automatically be suitable for you as well. You need to therefore assess your requirements first and see which Add-on covers would be of use to you. Go through the inclusions and exclusions of the available riders and understand what they cover and not cover. If you feel a particular rider would be of use to you, only then go ahead and make a purchase.
Keep the age of the car in mind – A brand new car would need a higher degree of protection as compared to an older car that you may consider to sell. So, keep the age of the vehicle in mind when you look for the Add-on covers. For example, a new car would benefit from the Zero Depreciation Car Insurance cover. An older car may need a Roadside Assistance rider. So, the age of the car would definitely come into play when the riders are being selected.
Compare – Next, you need to compare car insurance to not just find the best plan but also to see what riders are available. At times, insurance providers offer built-in riders with certain policies. If you find such a plan, do consider going for it as you would get a higher cover at a lower cost.
Keep an eye on your budget – Everyone wants the highest degree of cover and protection for their beloved cars. However, you need to be practical when choosing the riders. Don’t go overboard and buy every available rider. Doing this would push up the premium considerably as every single rider comes at an added cost. Keep an eye on your budget and only get the riders that you think are necessary. Compare car insurance online to get the best prices and save money when you get the covers.
Keep the geographic location in mind – If you live in a place that is prone to flooding, you may need an Engine Protection rider. If you live in a remote area, you may need the Roadside Assistance rider. So, choose your riders in such a way that they deliver to the highest degree when you need them to do so.
Check different deals and offers – Many a times, online insurance providers offer deals and discounts when you are about to buy or renew car insurance online. Check out these deals to make some great Add-on purchases and a wide-ranging policy.
Drop and buy riders as needed – Car insurance needs change over time. So, every time you renew your plan, re-evaluate the riders and see which ones you need to carry on with and which ones have become redundant.
The bottom line
Keep these practical tips in mind and you will never be confused about choosing the correct set of Add-on covers. Also, drop the ones you do not need and get new ones if there is a requirement during policy renewal.
A two-wheeler insurance policy is the policy to cover any damages that can occur to the vehicle or the rider due to the occurrence of any incidents like accidents or other natural calamities. 2 wheeler insurance is needed to overcome the extra expenses that can arise due to happening of any unprecedented event leading to injuries, repair of the vehicle etc.
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The period of insurance begins once when the premium is paid by the owner. I suppose any incident occurs then there is third party liability associated with it. Third party liabilities are the damage, injury or harm caused to a third party or third party vehicle.
Types of Two-wheeler Insurance
Comprehensive Insurance Policy
In Comprehensive Insurance policy, the vehicle and its riders are insured against any damage or injury being caused during an incident.
It has some add-ons which can be added up like Personal Accident Cover, NCB Cover, Roadside assistance cover etc.
Third Party Insurance Policy
Third Party Insurance policy covers the vehicle and rider against any damage or injury caused by a third party.
It is a mandatory 2 Wheeler Insurance policy for the Indian roads.
Benefits of Two-wheeler Insurance
The expenses which can arise due to certain incidents are taken care of by the insurance policy. These incidents can be natural or man-made or both.
When you choose the insurance company and your policy wisely, premiums can be affordable as well.
Third party two wheeler insurance is, however, mandatory as per Indian law. So, buying two-wheeler insurance is law-abiding.
With Comprehensive insurance policy, you can get roadside assistance coverage and other add-ons.
Bike Insurance Renewal
The two wheeler insurance policy expires every year and you should renew it so as to enjoy the benefits of the policy.
Two-wheeler insurance renewal can be done by two methods
By visiting the Insurance Company and paying the premium.
Online insurance renewal method is easy and convenient as well.
Two-wheeler Insurance Renewal Policy
Annual Insurance renewal policy: In the Annual Insurance renewal policy, the vehicle owner needs to pay the premium and renew the policy every year.
Multi-year insurance renewal policy: As the name suggests, the insurance premium is paid together for 3 or more years altogether so as to keep the insurance active for 3 years.
Features of Multi-year insurance policy
Personal Accident Cover for owner/driver
If in case of an accident, there is death or disability caused by one’s own vehicle then the owner/driver can claim up to a certain amount.
Personal Accident Cover for pillion
If you are using Multi-year renewal policy, then you can also cover your pillion by payment of extra premium.
Third party liability cover
During the incident, if damages and injuries have been caused by the third party then you are covered.
Cashless claims can be availed
There are some multi-year insurance policies which allow cashless claims at their network garages as waiting for receiving the claim amount is inconvenient.
Own–damage cover – Own-damage cover refers to the damages caused by vandalism, natural and man-made incidents. Multi-year insurance renewal policy helps out in providing own-damage cover.
Easy porting to another insurer – You can choose another insurance company and port after completion of 3 years with one company.
Benefits of Multi-Year Insurance Renewal policy
Hassle free renewal
There is no headache of renewing the policy every year, remembering and taking risk of missing the renewal date. By Multi-year renewal policy, the vehicle is insured for 3 years once.
Long term security – By paying the premium together for 3 years, you protect your vehicle for a longer period and you get to have a secured feeling for 3 years.
Easy cancellation of the policy – The policy is planned such that cancellation is easier. In an annual plan, if there are any claims made, then a premium refund is not possible but in multi-year policy, a refund of about some percentage of premiums is obtained.
Discounts to be offered– Usually, the Insurance companies offer great discounts and offer along with the Multi-year renewal policy.
More savings on premium
IRDAI increases the portion of third-party premium by 20% every year. So, if you are opting for Multi-year insurance renewal policy you avoid this increase which is unavoidable in case of an annual policy.
NCB Bonus is safe – In Annual policy, if one single claim is made in a year you lose your NCB but your NCB is safe in Multi-year policy.
Hence, you can compare the two bike insurance renewal policies and then according to your needs, requirements you can opt for the renewal policy.
