Investment plans combine life cover with investments. A certain portion of the premium paid is used towards insurance coverage. The balance is invested in different investment products. These include debt and equity and you may choose as per your risk profile.

These types of plans are an excellent option to meet your short-term and long-term financial objectives. Investment plans are also a good way to reduce your tax liability and build wealth over a longer period.

Life insurance is important to offer financial protection to your loved ones in case of an unfortunate incident. When you combine such life cover with investment, you are able to not only avail of protection but also are able to create wealth to meet your financial objectives.

Investment plans are classified as traditional endowment policies and Unit-Linked Insurance Plans [ULIPs]. A regular endowment plan pays a lump sum or annuity at the end of the policy term. On the other hand, ULIPs provide market-related returns on your investment.

Are you confused about the different types of investment plans? You may come across several different plans with multiple options. Making the right decision amongst such clutter may be confusing and difficult. Here are three factors that may help you make the right choice.

1. Risk appetite

ULIPs invest in market instruments like cash, debt, and equity. If you are willing to assume higher risk to earn greater returns, equities may be a good choice. However, if you are ok to earn lower but guaranteed returns, debt is a better option. Therefore, you must evaluate and analyze your risk appetite before investing in an investment plan.

2. Financial situation

It is not prudent to invest money if you are going to face financial difficulties. You must analyze your financial situation and consider all your expenses and obligations to determine the amount you may invest in any plan. It is recommended that you start investing with smaller amounts as per your financial situation and gradually increase the amount as your income increases.

3. Investment objectives

Different kinds of plans are suitable for various objectives. It is important you clearly know your financial goals before making an investment decision. You must consider whether your goals are short-term or long-term to make an appropriate decision. Moreover, it must suit your requirements and risk appetite.

Importance of comparing different plans

You must compare all the different options that are available to choose the best investment plan in India. The primary objective of investing is to earn returns and an incorrect decision may result in severe outcomes. Therefore, taking the time to compare and understand the different plans is crucial.

An easy and quick way to compare different plans is to check online. This method allows you to compare several plans in a single page making it convenient. You may easily compare the features, pros and cons, and fees and prices to make an informed decision. Additionally, you may gain beneficial information through customer reviews, feedback, and comments.

The significance of investment policies

1. Financial security

When you invest through a Systematic Investment Plan [SIP], you are able to accumulate wealth over a period without facing financial difficulties. An SIP investment plan allows you to invest a fixed amount at pre-determined durations. This allows you to procure financial security thereby enabling you to meet your various life goals such as marriage, children’s education, and retirement.

2. Return on investments

Compared to fixed-income instruments, such as fixed deposits, investment plans like ULIPs deliver higher returns. The post-tax returns on ULIP plans are often higher because the funds are invested in market-related instruments.

3. Taxation benefits

The premium paid on your investment policy is eligible for tax deductions under section 80C of the Income Tax Act, 1961. Additionally, the maturity benefits are also tax-free under section 10(10) D of the Income Tax Act.

Before you invest in any plans, here are five things to bear in mind

1. Objective

If you are like most people and invest only to earn returns, take a step back and reconsider your objective. Investment plans are beneficial in meeting short-term and long-term financial goals. You must consider all different objectives over a period before making an investment decision.

2. The reputation of the fund house

When you invest your money with a fund house, you provide it with the permission to invest on your behalf. It is important you check the reputation of the fund house to ensure your money is well invested.

3. Past performance

An important investment objective is to earn good returns. Therefore, it is crucial that you check the past performance of the different plans to make an appropriate decision. You must compare the performance with a benchmark like an index to understand the fund house.

4. Fees and charges

Small fees and charges may not be noticeable. However, these may accumulate to a significant amount in the long-term. It is recommended you check these before making your decision.

5. Fund manager

A fund manager manages your money. You must check his past performance and reputation to gain an understanding. Evaluating the fund manager’s performance during tough markets is very important.

Selecting the right investment plan is a critical choice. You assume a certain risk when you invest your money. Therefore, understanding the features of the different plans and assessing your risk appetite is recommended before making an investment decision.

Who isn’t into riding bikes these days? Riding a motorcycle is the new cool. It’s not only the millennial that are attracted towards bike rides but even the people who have crossed their 30’s love to hit the road in style. Choosing the right bike for you is a tough affair. No doubt, there are so many of them available in the market, but picking the ideal one for you needs some research. Also, keep in mind to buy a good two wheeler insurance policy for your new bike.

Here’s a list of different types of two wheelers you can choose from

Standard

Also known as ‘naked motorcycles’, standard bikes boasts an upright riding position with low to mid-range bars and mid foot controls. These bikes are usually equipped with a longer, flatter two-up seat and feature a single headlight with no fairing. The upright position helps the riders to maintain a comfortable position while riding.

Also, they have moderate-size engines and user-friendly design, which make them an ideal option for new riders. You can ride them to work, load them up with gear for a long trip, and even take them to a track for quick high-speed fun.

Cruiser

If cruising city streets on a sturdy, low-slung machine is your dream, then cruiser is the perfect pick for you. Taking inspiration from the design of Harley-Davidsons, these bikes flaunt a low seat height, torque-rich, V-twin engine, fat rear tire, high handlebars, and forward foot pegs. Cruisers are incredibly comfortable to ride but are not ideal for beginners who are going to ride at higher speeds for an extended period of time.

Dual-sport

Dual-sport bikes are available in a wide range of size, style, and colour. They are referred to as dual-purpose bikes as they can be used as both on- and off-road motorcycles. These bikes combine long-travel suspension with a powerful motor, which makes them suitable for both off-road and long distance riding.

Also, they feature high seats and a high centre of gravity that contributes to better handling on rough ground. Dual-sport bikes are similar to dirt bikes with mirrors and lights. Thanks to their small engines and lightweight frames, they make an excellent choice for a new rider. Just make sure you can straddle the bike with both feet planted on the ground.

Touring

Scratch away your travel itch with none other than touring bikes. They are also known as dressers and are specifically designed for long-distance riding. With bigger engines, large fuel tanks, and lots of carrying capacity, these bikes will take care of all your travelling needs while on the go.

These bikes offer riders with a comfortable, upright seating position, which makes them perfect for globe-trotters. Equipped with high-end technologies, touring bikes are expensive and require a lot of maintenance.

Sports bike

Packed with the latest and greatest technology, sports bikes are optimized for high speeds and acceleration. These bikes are equipped with sophisticated suspension systems and high-performance brakes.

Featuring high foot pegs and long reach to the handlebars, these bikes are perfect when riding into the wind at higher speeds. However, at lower speeds, these bikes can be tiring because they put more weight on a rider’s hands and wrists.

Sport touring

What do you get when you mix the comfort and carrying capacity of a touring bike with the handling and looks of a sports bike- a sport touring bike. These bikes have aerodynamic fairings, detachable hard luggage, and a lot of horsepower.

Sport touring bikes are bulkier than sports bikes and lighter than touring bikes. They offer a more relaxed seating position and are often big, heavy and sturdy.

Now that you have learned about different types of bikes, it’s the time to purchase one for yourself. But, don’t forget to insure it with comprehensive two wheeler insurance as it is mandatory to protect your bike before hitting the streets. Also, to avoid unforeseen circumstances, buy two wheeler insurance now.

An HSBC study shows that 51% of parents in India yearn for their child to build a successful career after they graduate. But socio-economic mobility being comparatively restricted here, education takes on a greater significance. And if the education given to your child is of the best quality, their chance of having a better future is likelier.

Parents have the same aspiration when it comes to their child’s wedding. They want the wedding to be held with much pomp and fanfare. But all this requires money – in fact, a pot of money.

Both your child’s education and wedding are expensive affairs. If you look at the inflationary trends of the last two decades, you should expect the costs to spiral further. However, this is not to dither you or make you jumpy about the future. There is still ample time for you to rack up an enviable kitty to ensure good things happen to your child. One of the ways in which you can fortify your child’s future is by investing in a Systematic Investment Plan [SIP].

In this article, let’s see how you can make your child’s [and your] dreams come true through the process of investing.

Sky-rocketing prices

Did you know that the cost of nursery education can range anywhere between Rs. 60,000 to Rs. 3 Lakh? And the price escalation does not stop here. Parents in India spend an average of Rs. 12.25 Lakh on their child’s education. But if your child wants to go abroad for a higher degree, this could cost you around Rs. 1 crore.

As for weddings, here is a statistic that will paint the entire picture. The Indian wedding industry accounts for more than Rs. 1 Lakh crore, according to a report by Reliance Money. And this number is fast increasing at the rate of 25~30% per year.

Invest and relax

There is no point looking at these numbers and working up a brainstorm. If you have time on your side, all you need to do is to set yourself a long-term financial plan. Once you do that, you decide to invest. That’s because keeping your money in a bank account does very little for you or your children. The money just sits there all day long, earning very little interest. In fact, the 3.5~4% interest you earn is lesser than the rate of inflation. That means you would actually lose money in the long run if it remains idle in your bank account.

Instead, it is better to invest in mutual funds. Equity funds offer returns anywhere between 10~15% per annum. In fact, the returns on some funds can be even higher. By investing for the long term through Systematic Investment Plans [SIP], you can amass a substantial corpus of money. You can use any online SIP calculator to identify how much you need to invest each month in order to reach your specific financial goals.

Child funds

Many mutual fund houses offer special child plans that are designed to help parents meet the various requirements at different stages of their child’s life. Once you identify a particular plan, you should invest regularly without fail. Over time, the small investments you make turn into a big corpus. That’s why experts suggest that parents should start investing for their child’s future from a very early age. This allows you to create a large corpus without putting a strain on your monthly budget.

Consider the following example- By investing just Rs. 10,000 per month in a mutual fund, you can create a sum of Rs. 1 crore in 20 years, assuming the rate of return is 12% per annum.

However, if you have just 10 years time to create the same amount, you would have to invest more than Rs. 40,000 per month! This can put a tremendous pressure on your finances.

Conclusion

A common tip for road trips is – start early, drive slowly and reach safely. The same can be said for investments. Think of it this way – the moment your child is born, you have exactly 18 years to come up with a graduation gift for your child. So, start investing today!

The stock market news confirms that the Bank of Baroda, a state-run bank, has declared a rise of 5 basis points in its MCLR or marginal cost of funds-based lending rates in different tenors. The bank also announced when will be the new rate effective from. The date they have declared to make the same effective from is 7th June. The one-year MCLR rate or minimum lending rate which was previously 8.40 percent has been increased to 8.45 percent, which is a clear 5 basis point increase.

As per the note shared in the press, the statement reads, The increase is attributed to higher cost of funds and rising interest rate scenario.

It is also important to understand that the one-year marginal cost of funds-based lending rate at 8.45 percent will hold true in all cases. It will not depend on the total home loan amount and another thing to note is that it will be available for a term of up to 30 years. This news is confirmed by the press release.

For the overnight tenor, the revised rate is 7.95 percent. For the one month tenor, the rate has been revised to 8 percent. Also, for the three months tenor the given revised rate will be 8.10 percent. And lastly, the for a six month tenor, the rate has been revised to 8.30 percent. Also, if we drill down and watch the lender’s base rate, it is at 9.15 percent. As on June 15th, the Bank of Baroda share price stands at 131.35 INR. Previous close price was 135.15 INR.

Bank of Baroda is an Indian state-owned International banking and financial services company which is headquartered in Vadodara, Gujarat with its corporate office in Mumbai. The bank is ranked 1145 on Forbes Global 2000 list as per the data of year 2017. The Bank of Baroda has a total asset of more than INR 3.58 trillion which makes it country’s 2nd biggest bank in the assets category. It has a network of 5538 branches in the nation and abroad, and it also has around 10441 ATMs, again as per the data of 2017.

The Government of India nationalized the bank along with as many as 13 other major commercial banks of the country in the year 1969. The Government of India also designated Bank of Baroda as a profit-making public sector undertaking or PSU. The financial services portfolio of the bank includes initial public offerings, private placement of debts, corporate restructuring, business valuation, mergers and acquisition, project appraisal, loan syndication, institutional equity research, and brokerage.

As per another latest news on BOB, Bank of Baroda has put 30 impaired loans of worth more than INR 7,400 crore which includes the loans to Binani Cement, Essar Steel, and Bhushan Power. These are undergoing bankruptcy hearings. It may take some more time get the resolutions because they are stalled in litigations.

The news for the State-run banks is not good. They are hugely into the losses, which is happening due to the bad loans in the financial year 2018. It is believed that they are experiencing the highest ever losses this year. Talking about only the fourth quarter, the total losses in the state-run banks is believed to be somewhere about Rs. 62,681 crores in spite of some of the profits at Indian Bank and Vijaya Bank. Indian bank share price stands at Rs. 352.70 and the Vijaya bank share price stands at Rs. 56.25 as on 15th June’18.

If we combine all the state-run banks, as per the data shared by Reuters, we will be shocked to know that there is a loss of around Rs. 85,370 crore which means $12.65 billion in the fiscal year ended this March. The reason cited is the provisions for bad loans that flowed after the central bank came up with some stringent norms. Many banks in which the nation holds the majority, has gone into huge losses in the March quarter. This has happened after the Reserve Bank of India pulled out many loan restructuring schemes and also came up with other curbs.

This is though not happening for the first time, because if we combine all the state banks, they were into losses in the prior two years also. That time also they were into that situation due to the bad loans. But the loss this year is the biggest and the first ever worse hit in the history of banks.

If we look at the Gross non-performing loans of the 21 banks, it increased by 15 per cent to Rs. 8.96 Lakh crore or $133 billion at the end of March, in three months. The percentage of the Bad loans as a percentage of the total loans also increased at most of the banks. IDBI Bank has reported the highest bad-loan ratio which is 27.95 per cent. Next in line is the Indian Overseas Bank’s which also has a saddening bad-loan ratio of 25.28 per cent.

This bad-loan flow and the huge losses have arrived when the city of Delhi has taken a two-year plan to recapitalize the state lenders of Rs. 2.11 Lakh crore. It accounts for 66% of the nation’s banking assets making an effort towards getting a lending growth.

It is believed that most of the banks will now have nil funds for growth as they respond to the provision requirements and higher capital ratios as made compulsory by the global Basel III banking rules which is going to be effective by March 2019. The Indian government is also looking for the privatization of IDBI, which has been a country’s public-sector bank, to help the banking sector clean is debt. IDBI has suffered losses of more than 80 billion rupees in the last financial year, to the end of March. And also, the bad loan of the bank has doubled to more than 555 billion rupees.

Most people think of stock trading as gambling your money away, but nothing could be further from the truth. Trading in stocks is actually a skill set that can be learned by anyone with a fair amount of discipline, dedication, and appetite for risk. It is not an easy practice, but if you play your cards right, it is entirely possible to turn a neat profit on your investment.

Choose a Comfortable Trading Style

Trading means buying and selling stocks by holding them for a fixed duration that could range from a few seconds to a few years. The first and most important rule of trading in share market live is to invest in what you understand. Doing so will help you recognize how you can grow your earnings and enable you to pick a trading style you are comfortable with. The different styles of trading include:

• Scalp Trading, in which shares are held only for a few seconds or minutes.
• Day Trading, in which shares are traded within a day and not held overnight.
• Swing trading, in which shares are held for anywhere between a day to two weeks.
• Position Trading, in which shares are traded across a span of months to years.

Be Aware of Good Stocks

To invest in good stocks, you first have to know what makes a stock good. Factors such as the revenue growth, profit margin, and dividends of a company play crucial roles in determining its overall financial health.

Another important consideration when buying stocks is its share price. When stock is available at a low price, it means the business is running and potentially growing slowly, whereas expensive stock signifies that business is expected to grow at a rapid rate in the near future. However, bear in mind that you should not buy a stock based on price alone. Make sure you understand the psychology behind each value.

Additionally, pay attention to the liquidity of the stock. You don’t want to invest in shares that cannot be bought or sold easily and quickly.

Know When to Sell

As beneficial as it is to know when to buy, you won’t actually start generating profits unless you sell on time. There are several indicators that will tell you when it’s time to sell, most of them depending on your own criteria. If the stock hits your price target, the company’s financial health deteriorates, or if it decides to cut dividends, the wise move would be to sell. Designing a selling plan will help you minimize losses and maximize gains.

Hire a Stockbroker

If you want to earn profits through stock trading but don’t have the time or knowledge it requires, you may want to think about hiring a stockbroker. They are professionals who will supply you with effective suggestions on where, when, and how to invest based on your capital and the type of investor you are. Not only that, stockbrokers can also manage your trades and maintain important documents. They will provide you with a better understanding of the market and apply their skills to improve your finances. It is a big investment decision, one that must not be made without considerable thought. Don’t forget to weigh the pros and cons before you sign up for any services.

The share market live is a great place to explore the market and enhance your financial portfolio. Of course, you first need to develop key skills and get accustomed to its volatile environment before you can become a pro. But if making profits is your aim, then start by following these tips and you will find success.

Intraday trading or day trading, as the name suggests, refers to the buying and selling of stocks on the same day. Many beginners in the stock market find this style of trading to be an attractive proposition to jump in and make a few extra bucks. However, they lack the expertise and knowledge required to earn good returns on their investments.

This is when brokerage comes into the picture. Intraday trading brokerage is the commission charged by the broker who aids in trading. All trading platforms charge brokerage to provide a portal to the investors. Thereafter, a certain percentage is charged on every transaction facilitated through this platform. For instance, if the volume and value of your trade is huge, your brokerage fee will also be heavy and vice-versa.

Brokerage charges may vary from one broker to another. Some brokers may charge you 0.10 % while others may levy a hefty amount of 0.55% per transaction.

This ultimately impacts the intraday trader’s overall profits to a large extent. So if need be, the cost of brokerage can be reduced to increase the trader’s profits. For this, you can enable a simple solution called free intraday trading.

Unlike the brokerage fee that is charged as a percentage on the value and volume of the transactions made, free intraday trading is charged at a flat fee. A very affordable amount of Rs. 999 is applied for a year, which is less than Rs. 4 per day. This not only gives traders the chance to keep a maximum percentage of their profits, but also gives them the freedom to take buy-sell decisions for themselves.

Other benefits of free intraday trading are as follows:

• Unlimited access to equity and other important reports by a team of experts.
• Up-to-date account information.
• Live-streaming stock market data and information on top gainers and losers.
• Availability to make your personal watch list and keep a track of certain stocks of your choice.
• Options to create graphs and charts tracking your past and future performance.
• Receive stock recommendations that assist in making informed decisions.

One must remember that free intraday trading is only for self-traders who would like to trade from the platform directly. If a trader would like to trade with the help of a dealer or broker, charges may vary.

A flat brokerage amount encourages huge savings for intraday traders. It also helps maximize their return. Moreover, this freedom allows intraday traders to make better decisions and earn more profits.

Intraday trading acquired a bad reputation in the early 1990s. This was primarily because many traders jumped onto the new online trading platform without applying any tested strategies. This unplanned move obviously resulted in adverse results, and traders’ typically incurred huge losses.

So, before you invest your time and money into this trading program, ensure you have the right knowledge and assistance that is required. Once you learn the rules and get a hang of the strategies needed for anticipating market moves, you will be able to make good profits in the future. However, remember, patience and discipline is the key to success in intraday trading.

This year, Father’s Day falls on June 17. So be prepared to be pleasantly surprised when your little kid hands you a cute little gift and wishes you a Happy Father’s Day. Being a dad is one of the greatest joys in life. But this love and happiness come with a great deal of responsibility. Right from the moment of your child’s birth, there are a lot of expenses. Toys, clothes and visits to the hospital are some of them. But as your child grows, the list of bills only gets longer. In this article, let’s discuss how you can be a responsible father and secure your child’s future.

Huge costs in the future

Did you know that an engineering degree from a top-tier government-aided college costs around Rs. 5-6 Lakh. The same degree costs Rs. 8-10 Lakh in a private college and in case of a college abroad, it would cost more than Rs 1 crore! The cost of education has risen exponentially in recent years. And if you include the cost of a wedding [the other major expense], it becomes pretty evident that you need to save a huge sum of money before your child grows up. In other words, you have roughly 18-20 years time to create a substantial fund to meet these huge expenses in your child’s life.

Financial planning to meet these expenses

Rs 1 crore! In 18 years!! How will I ever create such a large sum of money on my regular salary?

Well, don’t go into panic mode, yet. The amount might seem extraordinarily large. But guess what, it is possible. But for that, you need a proper financial plan. The first step is to list down all the expenses you may encounter in the future. You need to account for schooling, healthcare, clothing and those intermittent hobbies your child may get interested in all of a sudden.

Yep, between the 8th and 9th grade, your son’s only goal in life might be to become a drummer in a rock band. You relent and buy him a drum kit [that costs thousands of rupees]. But by the time school starts again, he has lost all interest in drumming. Now, he wants to become a cricketer. Sigh!

The point here is not to quash your child’s dreams and goals. Rather, it means that you need to be prepared financially to meet any of these unexpected costs.

Where can you invest?

Putting money in your bank account might sound like a good idea. However, at 3.5-5%, the returns are not very high. There are different investment avenues that can help you reach your financial goals at a much faster rate.

Consider mutual funds through a Systematic Investment Plan [SIP], it is possible to meet your financial goals at a smooth and steady rate. For example, by investing Rs 10,000 per month in a Mutual fund [at an interest rate of 13% per annum], you can create a corpus of Rs 1.14 crore in 20 years!

Similarly, you can invest in stocks for long-term financial goals provided you are comfortable with the associated risk. For short-term goals, you can consider debt funds or liquid funds to meet your goals.

To sum up, in the eyes of a child, a dad is a superhero. He can do anything. The good news is, you can keep up this image by providing for your child in the right way. So, get out the cape and mask, invest money and become a super-dad!