How You Can Reach Your Financial Goals through SIPs

 

A Systematic Investment Plan or a SIP allows investors to invest a fixed amount every month in a mutual fund. This helps average out the purchase price, thus protecting them from investing a large amount at a high point in the market.

It is quite a popular concept among investors who use SIP calculators for ease to calculate how long it would take a SIP of a given amount to reach a specific financial goal. For instance, if your aim is to accumulate Rs 1 crore in 10 years, you need a SIP of ₹45,000 per month at a 12% return.

How Can You Reach Your Financial Goals through SIPs?

Investing in mutual funds SIPs is one of the ideal ways to invest and get decent returns. Using a good goal-based SIP calculator, you can get an approximate estimate of the amount that you would regularly require to invest to meet your financial goals.

Whether you're planning for a child's education, retirement, or purchasing an expensive asset such as a house, you can make use of a sip interest calculator that can help you get a rough estimate of the total amount of money you need to keep aside to achieve your goals within a defined period.

Let's understand this better with an example-

Mr. A is willing to invest around Rs. 50,000 a month in mutual fund SIPs and plans to gradually increase the amount by 5% every year to fulfill his goal of buying a second house by creating a total corpus of Rs 5 crore in the next 15 years.  

So, how can he do this by investing in SIPs?

First, let's understand how much corpus Mr. A can create by investing in a proposed SIP of Rs. 50,000 a month with an increase of 5% every year.

In this case, let's assume an average return of 15%- 16% on his equity mutual fund investments via SIP (based on the past returns from the mutual fund SIPs over the past few years). With this run rate, the amount of corpus Mr. A would create roughly is Rs. 3.50 crores which will not help him achieve his desired target. To be able to achieve his target of Rs. 5 crores, he has two choices-

a. Increase his stipulated amount for SIP to Rs. 60,000/- from Rs. 50,000/-  

b. Increase the annual percentage rise in the SIP figure to 10% from the initially planned 5%. 

The best strategy here would be to invest SIPs in more selected mid-caps funds with a combination of some small and large-cap schemes.

How Does the SIP Calculator Work Here?

The SIP calculator primarily works by using some important data to compute your SIP investment that you would need to make regularly. The most important steps that you need to follow while using the SIP interest calculator include-

• Enter the target amount that you would need to complete your financial goal.
• Enter the total number of years in which you would need to complete your goal setting.
• Enter the return rate expected.

Here is an example to understand the working of a sip calculator mutual fund in more detail-

Mr. X has a target amount of Rs 60 lakhs in the next ten years at an expected return rate of 12%. As soon he enters these details in the sip interest calculator, it will display the SIP amount (and lump sum amount) that Mr. X will have to invest to meet his desired financial goals.

Benefits of Using SIP Calculator

Some of the key benefits of using the goal-based SIP calculator include-

• Helps mutual fund investors strategically and efficiently plan their investments.
• Simple to use where the investor only needs to provide the financial goal details, and the calculator will automatically display the investment tenure and the results.
• The SIP calculator is an excellent tool that simplifies complex mutual fund investment calculations, thus saving a great deal of time.
• Free to use and can be used online anytime, anywhere, thus simplifying the overall investment process for existing and first-time investors.

To Conclude

PGIM India Mutual Fund offers an easy-to-use SIP calculator to help you plan for your life goals with great ease. All you need to do is feed your input in the SIP interest calculator, and based on your inputs, the calculator informs you how much amount you need to invest per month to be able to achieve your financial goals.

What Kind Of Insurance Should I Consider For Retirement?

 

Financial planning for retirement is an important step for your well-being during the sunset years of your life. Old age brings a set of unique problems such as health issues and the inability to work. You need a regular income to support yourself. On top of this, you may have a mortgage to pay off or meet your children's education expenses.

How can you manage so many expenses when you are not able to earn a living? The answer lies in having proper retirement plans. You should work out and follow a retirement plan that foresees all these scenarios.

Plan in Advance

For a financially comfortable retirement, you need to plan for it at least 15 years in advance. It takes many years of small savings to accumulate a reasonable sum of money. Also, you need to pay an insurance premium every month for ten or more years to see it mature. You can receive this money either as a lump sum or as a pension plan.

Assess Your Retirement Needs

Every person has their unique set of retirement requirements. For example, one may have to pay off the mortgage while someone else may have to pay for children’s education or own medical expenses. Having a car can mean many conveniences, but you need to pay for its maintenance and insurance. Given this, you need to evaluate your retirement needs and make appropriate financial plans to address them.

However, everyone needs a set of insurance plans and at least one pension plan for their retirement. Here are common insurance and pension plans that should make your retirement planning comprehensive and effective. 

Insurance Plans:

1. Life insurance

A pure life insurance policy is one of the most basic retirement plans. Under this, you pay a fixed amount every month towards your life insurance. In the event of your death during the policy period, your chosen beneficiaries will receive the assured amount. You don’t get any money at the end of maturity.  

2. Whole life insurance

A whole life insurance plan covers the entire life, and the benefits are paid to the chosen beneficiaries after the death of the insured. However, this plan has a savings component where the funds build up and can be accessed by the policyholder during his lifetime.

3. Health insurance

Hospital and medicine bills can add up to a big sum, particularly in old age when you consistently have one health issue after the other. Health insurance can absorb much of the financial shock you receive on this count. A health insurance policy after the age of 50 can cost a little more than usual. However, having a health insurance plan can give you a lot of financial protection and peace of mind.

4. Disability coverage

Workplace hazards are something most of us don’t take seriously. But they are real and rampant. An injury can often leave you out of work for weeks and months and, in some cases, forever. You should subscribe to a long-term disability insurance cover as part of your retirement plan. It will ensure you receive a regular income during the period you are out of the job due to an injury.

5. Auto insurance

Your car is big support during your old age as it keeps you mobile and lets you finish outside work with convenience. But the car needs a proper insurance cover to meet financial liabilities in the event of an accident or write-off. If you have a car, you should also have auto insurance.

Pension Plans 

Your retirement plans are not complete until you have subscribed to a pension scheme. It will ensure you have a regular income to meet your day-to-day expenses. There are many pension plans, and you can choose one or several of them as per your need and resources. Here are a few of them:

1. Term insurance

You can invest an amount in term insurance and start receiving a regular monthly income. It’s an investment plan that pays like a pension scheme. Under this, you invest a sum of money for a fixed term. Depending on the amount, you receive a monthly, quarterly, or annual payout while the principal amount stays intact and is paid back to you at the end of the term. There can be different types of term insurance plans depending on how the insurance company further invests your money.

2. National Pension Plans

To give every citizen an option to have a regular pension, the Indian government launched the National Pension System (NPS) in 2004. Any Indian between 18 to 65 years can subscribe to a pension fund and make regular contributions to this fund. When leaving the NPS, the subscriber can choose the accumulated fund to be partly paid as a lump sum amount and part of it purchase annuity/pension plan from empanelled life insurance companies. It’s simple, low-cost, flexible, and portable.

3. Endowment plan

One of the most popular retirement schemes, endowment plans, offers life insurance coverage and pays a lump sum at the plan's maturity. Like term insurance, an endowment plan can be of different types depending on where the money is invested.

4.   Money-back plans

In this type of investment, policyholders receive regular payouts while a lump sum amount with applicable bonuses is paid at the maturity of the policy. The investment can be one-time or through monthly premiums.    

Summing Up

A pension scheme should be one of the most important items on the list of your retirement plans. You can choose from a number of term plans for retirement that offer both annuity and lump-sum amounts.

Planning your retirement requirements and buying appropriate investment and pension schemes well in time is crucial for a financially comfortable retirement life. Given the importance of a sound retirement plan, you should not shy away from taking the help of an independent financial advisor to prepare a sound retirement plan for you. You can also visit Edelweiss Tokio to have a look at their retirement plans that will leave you stress-free about the future. 

 

Myths and Facts About Tax Saving Mutual Funds

 

The term tax-saving mutual funds may at first seem like an irony to you. This is because mutual funds typically tend to be investment and growth-focused whereas traditional tax-saving instruments are focused on well, savings.

However, this is no longer true.

Owing to the growing preference among salaried professionals and business persons for mutual funds, as well as tax-saving products that offer better returns and lesser lock-in, tax-saving mutual funds are now a reality. Commonly known as equity-linked saving scheme or ELSS, such tax-saving mutual funds help you deliver on your tax-saving goals without requiring you to make long-term commitments.

However, before you can go ahead and invest in such a tax-saving mutual fund, you need to be clear about the various myths and facts associated with tax-saving mutual funds.

Myths	Facts
Tax-saving mutual funds require you to invest a specific amount	You can start with as little as Rs.500 a month if you wish to invest in any good ELSS or any top tax saving mutual fund
You can save very little tax when you invest in an ELSS	Assuming your income falls under the 30% tax slab, and if opt for the maximum investment allowed under Section 80C, which is Rs.1.5 lakh, you can save as much as Rs.46,800 in just one financial year
It is very complicated to identify a well-performing tax-saving mutual fund	It is fairly easy; there are a host of online resources where you can compare yearly and longer tenure trends

 

Watch: #SavingsKaDoubleRole - Save Tax and Build Wealth with Mutual Funds Tax Saving Schemes

Now that you have a fair understanding of the various facts that make tax-saving mutual funds or ELSS mutual funds a viable instrument, there are some more things you need to keep in mind to get best value for your investment efforts.

Common Mistakes	Expert Approach
Investing all your tax saving amount in a single top tax-saving mutual fund	Diversifying your investment amount into multiple top tax-saving mutual funds
Withdrawing your investment after the mandatory three-year lock-in	Staying invested in the tax-saving mutual fund or ELSS even after the mandatory lock-in is over for continued taxation benefits on returns
Investing a lumpsum amount at the end of the year when tax-related investment becomes crucial	Investing through the year to benefit from the law of averages while gaining tax saving benefits

 

You are almost ready to invest in top performing tax saver mutual funds for tax planning. However, before you can get started, here are some final things to keep in mind.

Frequently overlooked things	Best practices
Having a tax-saving strategy, just as you have an investment strategy	Basis your taxable income or your tax slab, and the various tax benefits available under different sections, consider how much income should you keep aside every month for gaining adequate tax benefits
Considering all tax-saver mutual funds or ELSS funds to deliver similar benefits or returns	Compare top tax saving mutual funds in terms of historic returns and look out for add-on benefits, if any
Assuming all tax-saving mutual funds expose your investments to 100% equity	Understanding that tax-saving mutual funds or ELSS funds vary in their equity exposure, ranging from 80% to 100%

Basis all the above factors, you should invest your hard-earned money to gain tax-benefits not just for the current financial year, but for years to come.

 

Also Read: Tax planning with mutual funds

Expecting a Bonus this March? Invest It with a Guaranteed Returns Plan

 If you are a salaried professional, you might be expecting a bonus check by the end of this March. While a lot of you would have anticipated this cash windfall, some of you are still not clear about how to make the best use of the additional income. If financial security is your concern, then simply stacking your money away doesn’t make sense. For, you need a guaranteed income plan that can offer you a regular income during unprecedented times or a guaranteed returns plan that offers guaranteed returns on investment in India. 

Your bonus is a reward for the hard work that you did throughout the year. So, go ahead, and buy the latest gadget, splurge it on a vacation, or anything that brings you delight. But it’s also imperative to allocate a portion of it to guaranteed return investments in India that can help you achieve your short or long-term goals. Investment in equities and the stock market can offer you great returns, but they come with a risk factor as well. However, a guaranteed return insurance plan comes with an insured income on a quarterly, monthly, or yearly basis. In this case, you receive a certain percentage of the sum assured even if the interest rate fluctuates. Thus, these plans help you hedge against uncertainties while shifting the entire risk to the insurer. 

What are the guaranteed return investment plans?

Following are some of the recommendations that you can consider for investment to receive assured returns.

• Endowment insurance plans: Issued by insurance carriers, endowment plans offer you a blend of life insurance and a modified savings scheme against the premium paid. These plans provide endowment plans guaranteed returns in a lump sum once the policy matures or ensure a death benefit to your loved ones upon your sudden demise. If you cannot afford the risk of losing the sum assured, then you can also opt for a single premium guaranteed return plan. Such plans let you pay the entire premium in a lump sum and secure all the returns and benefits attached to it.
• Money-back savings plans: Money-back savings plans are quite similar to endowment plans. They also provide traditional life insurance coverage with systematic savings. The only difference as compared to endowment plans is in their mode of payout. While endowment plans offer you bonuses and a lump sum amount after the policy matures, money-back savings plans give you payouts every few years at certain specified periods. Therefore, they can be a great option to go with if you want to save up for a few years and, at the same time, want access to the funds whenever required. Both endowment and money-back savings plans are preferred savings policies as they offer a guaranteed rate of return, liquidity, and life cover.
• Annuity plans: Annuity plans are the best financial investment options for people who are about to retire in 8-10 years. They help you meet the long-term needs with a decent investment corpus. So, if you are looking for a guaranteed income plan that can replace your monthly salary after retirement, then choose to invest your bonus in an annuity plan. Under this plan, you pay a lump sum amount in a specified period and then receive regular returns for a fixed duration or as long as you live. Annuity plans allow you to lock-in the existing interest rate for life. Hence, if you invest in an annuity plan with an interest rate of 6 per cent, you will be receiving the payout later at the same rate irrespective of the market fluctuations. Moreover, these plans reduce the longevity risk while guaranteeing a fixed payout until your policy term or till you survive, making them one of the best financial instruments to choose from.

How to invest your bonus with guaranteed return plans?

The best way to invest your bonus with a guaranteed return plan is online.

Here’re a few of the advantages of purchasing a plan online.

• Economical: The most coveted benefit of buying a plan online is that you can avail of a discount on premium as the intermediaries, such as agents and brokers, are eliminated.
• Easy: You can visit the website of the insurance provider of your choice. Input all the necessary information, pay the required premium, and that’s it, you have invested in a guaranteed return plan. You can opt for reliable plans.
• Effortless: It is quite easy and convenient to make an online purchase. With minimal paperwork, the entire purchase process can be completed in a few minutes, and that too at your convenience.

To buy the policy:

• Visit the website of the life insurance provider.
• Navigate to the Guaranteed Plans section.
• Browse through the different plans available and choose one based on the features.
• Use the Guaranteed Returns Calculator to determine the returns you can earn on your investment.
• Click on the Buy Now tab present on the page.
• Provide all the necessary information as prompted by the screen.
• As there is a life cover component attached, you may be required to undergo a medical test.
• Once you provide all the information, proceed to the premium payment.
• After successful receipt of the premium, the insurance company will send you the soft copy of your policy documents.
• Ensure that you go through the policy documents carefully.

Why should you invest your bonus with guaranteed return plans?

Following are amongst the numerous benefits of investing your bonus in plans with a guaranteed rate of return.

• Maturity benefit: With a guaranteed plan, you are ensured to receive a revisionary bonus in addition to a terminal bonus at the time of maturity. And, in case the payout duration is around 15 years, you will receive regular returns at pre-defined rates on the sum assured.
• Death benefit: A financial tool that comes with life insurance ensures that your loved ones receive a death benefit in case of your untimely demise. Therefore, investing your bonus in a guaranteed return insurance plan cannot only provide you with decent returns but secure your family’s future as well.
• Tax benefit: Another advantage of investing your bonus in guaranteed income plans is that you can avail of tax benefit under Section 80C against the premium paid and under Section 10(10D) against the returns received later as the policy matures.

Conclusion

Albeit, every investment scheme comes with its own set of risk factors, some options that promise more stability than others. Investment in the stock market offers high returns at a high rate of risk. So, if you are someone who has a low-risk appetite, it is recommended to invest your bonus in a guaranteed income plan and secure the sum assured.

Flexi cap funds and their objectives

 

What is a flexi cap fund? If you are still wondering about the same, you should know that these are types of mutual funds India which are not limited towards investing only in companies with predetermined market capitalization levels. This fund structure type is clearly shown through the details or prospectus for investors. These flexi cap funds may offer greater choices for investments to managers along with ample scope of diversification alongside. The company size is not a limitation for these funds and they may invest in any entity, irrespective of its overall size and other aspects.

SEBI introduced this new category of mutual funds India, known as flexi cap funds, on the 6^th of November, 2020, while retaining its multicap fund segment as well. The newly created flexi cap fund segment was a lot like the multicap fund category prior to SEBI mandating investment limits, i.e. 65% of capital for equity on the overall basis without segment-wise limitations. The circular from SEBI also enabled mutual fund houses to convert present multicap fund plans to the flexi cap segment. Equity markets have higher levels of volatility and the market will have higher risks and specific capitalization category risks and volatility as well.

In any correction phase of the market, there will be a requirement for investing a minimum capital proportion, thereby opening up an opportunity use a good scheme as a buffer. This will help in lowering overall exposure towards the minimum capital requirement. Segments like large cap schemes are usually required to possess at least 80% of capital in large cap funds all the time. Owing to such rigid factors, these plans cannot lower exposure to equity below the 80% threshold and hence keep themselves safeguarded from any anticipated downturn. The flexi cap segment should invest just 65% of capital in equity markets while being considerably flexible at the same time.

Similarly, when we observe volatility throughout multiple segments or when any particular category is expected to perform better or worse than other categories, flexi cap segment has a blessing in investment freedom throughout many categories as against small and mid cap segments. In the latter, they have to invest at least 65% of capital in companies falling within the purview of the same. When the large cap segment is anticipated to perform better than other categories, small and mid cap schemes cannot relatively perform since they will be bogged down with the requirement to invest at least 65% in the companies within their own segment. Similarly, when the midcap or small cap category is expected to perform better, then large cap schemes cannot get the benefits of this potential. They may invest just 20% in small and midcap entities. Flexi cap schemes always live up to their name. They help you get benefits at all times irrespective of whether the large, small or midcap category does better in the market.

Owing to the lower 65% threshold, the segment comes with ample legroom for foreign market investments and diversification at a global level. Profits from these investments are taxed at 15% irrespective of the slab rate. Retaining the investment for more than 12 months will classify the same as a long-term one and the rate of taxation will be 10% after INR 1 lakh as the initial exemption. Key goals of these funds include mitigating risks, diversifying the portfolio and tackle varying market cycles. 

 

A term insurance plan is easy to begin and convenient to continue due to the benefits inherent in the product itself. Life insurance means security to the nominees in the event of the death of the insured breadwinner. The main motive of this policy is to provide financial security to your family. That’s the reason why you should select the best term insurance plan. You want to give the best to your family, and you won’t settle for anything less than that. Term insurance policy is unique and gives you the option of an online term plan. The online feature entails a world of convenience and speed of processing. So, you should never miss out on your term insurance policy. There is least bother once you settle down and decide on this plan, and you can go for term insurance online that enables you to get yourself covered sitting comfortably at your home. No matter what your objectives are, there are multiple investment options with insurance cover for your family. There are policies to suit every budget.

If you are beginning your journey of insurance, you should set off with a term insurance plan. It is better you began investing today in terms of premium that’s going to give you peace of mind.

• Financial security to your family. You work hard to provide for your family and you want the family should remain protected forever. This policy makes sure that your family remains financially secure even in case you are deceased or defunct. Nobody can say anything about these unfortunate events. No other investment option offers this level of protection.
• It is cheaper than most of the popular investment schemes. Term plans are cheaper than usual life insurance plans. You can start with this plan at the very beginning of your career. The sooner you begin is the better for you in terms of the premium amount that you have to pay.
• Term insurance provides you with tax benefits. The premiums that you pay are deductible under section 80 c of the IT act. It’s a kind of saving for you. An annual premium up to 1.5 lakh is eligible for tax benefits. The death benefit is processed much faster and the nominee gets the payment quicker than any other insurance plan.
• There is no risk if you buy a term life insurance plan. All you have to do is continue paying the premium till the term ends. Your nominee will receive the benefit in case of the demise or you may claim the sum assured at the termination of the plan.

Should you or should you not opt for flexi cap funds?

Should you choose a flexi cap fund or flexi cap mutual fund? This is question that many investors are pondering over, particularly in the present scenario. Flexi cap funds came to India on the 6^th of November, 2020, when SEBI (Securities and Exchange Board of India) released its official circular, introducing this as a wholly new segment positioned under equity plans and schemes. Flexi cap mutual funds have ample scope of deploying investments throughout all the major categories, namely small cap, large cap and mid cap funds without any restrictions so long as a minimum of 65% of the fund comprises of equity and equity linked financial instruments. Investors can also readily diversify throughout companies or entities of diverse market capitalizations while also lowering their overall volatility quotient and curbing risks considerably in turn.

Here are some key advantages of flexi cap funds that may make you choose them over other types of funds in the bargain.

• Flexi cap mutual funds online will offer ample diversification to investors. When you consider investing throughout several market caps, ten diversification will be the key aspects worth considering. When you buy flexi cap fund online, you benefit from the open and flexible approach towards managing and operating this fund. This scales up exposure to numerous styles, themes and sectors in the market.
• Flexi cap mutual funds also help in greatly mitigating risks. Suppose one invests only in small cap funds and the market goes down. In this scenario, the investor will naturally be impacted heavily. Yet, in another scenario, a portfolio that is well diversified throughout market caps will automatically work to cushion investors against any fluctuations in the market. Risk mitigation is thus a vital aspect worth mentioning here.
• Markets have various cycles and ups and downs. Investors should aim at staying secure throughout their investment journey as the primary objective. Flexi cap funds are dynamic and help in steering investors smoothly throughout diverse cycles in the market.
• These funds are also more dynamic while adapting swiftly to continually evolving investment markets and scenarios.

The popularity of these funds is evident with reports from AMFI (Association of Mutual Funds of India) clearly indicating that these funds witnessed overall outflows of Rs. 9,044 crore in January-March, 2021 while inflows went up to Rs. 260 crore in April, 2021 and a whopping Rs. 1,130 crore for May, 2021. These funds have a good track record by way of returns too; Annual returns went up to almost 59.64% and 10-year yields stand at roughly 13%. Monthly returns are hovering around 6.39% for May, 2021 as compared to -1.44% in January, 2021. Returns went up to an all-time peak in the month of February this year, ranging at approximately 8%. Owing to the structure of this fund, investors received double benefits of not just deploying investments in the highest performing stocks but also an option for exiting from the options which were deemed unattractive.

Flexi cap funds offer a more diversified portfolio for investors and due to this factor, the fund will balance returns and risks nicely as per experts. They offer steady returns even during bearish market cycles and this makes them good options for any portfolio. Fund managers may analyze allocation and shift between various sectors and companies, based upon performance and on a periodic basis. It should also be noted that AUM (assets under management) for these funds went up marginally to Rs. 1,59,000 crore for May, 2021 as compared to AUM of Rs. 1,58,700 crore in Q1 2021.

 

 

The coronavirus pandemic has impacted every sector of the economy that can have consequences that are long-term and difficult to get rid of. The after-effects of the pandemic are expected to linger in the future too. In this situation, it is important to see the resilience of our economy and how fast it can recover from the impact of the pandemic across sectors. The growth forecast of the economic sectors has to be relooked because of the advent of the Covid-19 second wave. India’s current financial year’s growth forecast is 9.3% as Covid-19 slowdowns the economic recovery and builds the risk of long-term effects. 

While Ind-Ra revised the GDP growth forecast-FY22 to 10.1% that was 10.4% earlier. The revision was made assuming that the second wave of coronavirus will subside in the mid-May of 2021. As per Ind-Ra, the GDP’s demand-side or expenditure of government final consumption and private final consumption is expected to reach 11.0% and 11.8% respectively in the Financial Year 2022. 

Similarly, the earlier forecast of SBI growth is revised downwards. The revised projection of SBI FY22 stands at 14.3% nominal GDP and 10.4% real GDP. 

It is extremely essential to understand what must be done by the SIP Mutual Funds in the present scenario. The pace of regular investments made by investors in SIP Plans has been greatly affected. People have been holding up their investment in SIP India that has resulted in lower returns for many investors. In general, the economic situation of a country is a cyclical outcome that depends on its resilience to bounce back after every dip. A country’s resilience is expected to be higher if the following tips are taken into consideration:

• Demographic- The risk-taking ability of the younger population of a country is greater as they have lesser responsibilities. Therefore, younger people must start investing in SIP Mutual Fund for higher returns in the long run.
• FDI inflows- the UN report stated that India accounted for the inward FDI inflows of 77% in the year 2019 in South-West and South Asia (51 out of 67 Billion UD). 
• Digitalization- The Information and Communications Technology or ICT receives the majority of FDI inflows. The Jan-Dhan Aadhar Mobile has also increased financial inclusion in the country. 
• Reform Agenda- India can accelerate reforms.

India is considered as the top resilient country in the entire South-West and South Asia as per the UN report. Therefore, a downturn of economic growth must be taken as a chance to invest more as the country has the ability of resilience.  

You can use the following SIP Investment tips or rules to benefit the most:

• You must be careful in making investments in times of economic crisis. The best way to avoid losses is by periodically updating your portfolio. To enjoy higher returns in the Systematic Investment Plan, you must stay disciplined and patient.  
• You must always link a goal to your SIP Investment India policy so that it keeps you going and focused on one goal at a time. You must calculate the amount required to be invested and the time to attain the financial goal with the help of the SIP India calculator. You can calculate the amount of money you need to invest regularly to get higher returns on the SIP Mutual Funds. It is necessary to hold on to your investments and remember that SIP Plans have a longer tenure. Therefore, the economy of the country will balance out in the future. 

When you stay invested in SIP Mutual fund, the market identifies you ensuring continue and sufficient cash flow to its fund manager. It is wise to stay invested when the market is going through correction even if one avoids investing fresh cash. The second wave of the deadly virus has put a lot of pressure on the citizens to have a higher emergency burden for emergency medical needs. The investor interest is low and is expected to recover when the covid-19 cases start to come down. The Large & Mid Cap, Mid Cap and Large Cap witnessed significant flows. Many investors have been holding back their investments anticipating the market correction. The SIP Investment India is considered the most popular investment plan in times of covid-19 crisis because of its ability to give higher returns in the longer term. There are many different types of SIP Plans available offering different set of benefits and risks. Therefore, investors must determine their goals and then choose the correct Systematic Investment Plan as per their requirement. A few mutual fund houses have also begun offering insurance covers or group term insurance with the SIP Plan viewing the current scenario. The beneficiaries of the term insurance are investors aged between 18-51 years. SIP investors can avail these insurance covers without having to undergo any medical examination. 

On Your Terms: How A Term Plan Helps Your Family

 

It is said that you cannot predict the future, but you can do everything in your power to lessen its impact. When the unthinkable happens, your family members can be left scrambling to gather money even for simple expenses. The absence of your income should not become a death knell for your loved ones – prevent this situation by investing in term insurance online.

Let’s list the ways in which a term insurance plan benefits your family in your absence:

• To meet household expenses. The most important expense head every month is household expenditure. It includes paying utility bills, buying groceries, travel, allotting money for incremental expenses, buying medicines and supplies, etc. These are compulsory costs that must be paid every month – and which can cause problems if there is no income to fall back on. But the term insurance policy money can pay these expenses quite comfortably.
• To pay for children’s education. Another big expense head is your children’s education. Your income finances the rising cost of education every year – but what happens when your income stops? Your savings might be able to keep the expenses going for just a few months. In your absence, your spouse may have to take tough decisions about your children’s future expenses, including choosing a different course of study that costs less. This is not necessary if you buy an online term plan to pay for your children’s education.
• To repay loans. At a time when living costs are high and inflation makes everything expensive, it becomes necessary to borrow a series of loans to buy necessary things. These loans might include home loan, personal loan, credit card loan and car loan. Your monthly salary or business income repays the EMIs on these loans, but these same loans can torment your loved ones in your absence. Creditors will come asking for the unpaid loan amount, and your family members may have to make the repayments by selling off certain assets. But if you buy the best term insurance plan and choose a high coverage amount, the policy money can repay these loans in the future.
• To finance your parents’ household. Your parents may retire in a few years, and they may have a savings fund of their own at the moment. They may even have a few investments to their name. However, living costs keep rising all the time, and their savings may not be sufficient to meet their future needs. They might even need an emergency medical procedure in the future. The benefits of your online term plan can extend to your parents as well.
• To offer spousal support. The responsibility of your household and all its members falls squarely on the shoulders of your spouse when you are absent. Your spouse may have an income, but it can become difficult for them to maintain the same lifestyle that the family is accustomed to with a single income. At such a time, the term insurance policy can provide spousal support and let them run the house comfortably.

Ulips And Why They Make The Most Sense In Your Portfolio

As a new investor, you may want to try options that are low on risk but high on returns. The Unit Linked Insurance Plan (ULIP) is one such option, which is recommended for all investors wishing to build a balanced portfolio.

What is a ULIP plan?

A ULIP policy is an insurance product. It divides your payment towards it into two: One part pays the premium towards the policy, and the other is invested in high grade securities. The money keeps growing over a long period of time and creates a big corpus for the future. Since it is a life insurance product, it also helps your loved ones in your absence.

Why should I invest in a ULIP?

There are several reasons why you should invest in the best ULIP plan, such as:

* Suits all kinds of investors: The ULIP is aimed at all investors, whatever their appetite for risk. You can choose the securities you wish to invest in, which gives you flexibility to influence its outcome, and hence the outcome of your portfolio. If you are risk-averse, you can opt for balanced funds that divide your investment between equity and debt funds. If you have a higher risk appetite, you can choose equities which grow faster in a good market and lower risk over a longer time.

* There are no hidden charges: The ULIP policy does not have any hidden charges, as mandated by the IRDAI. As an investor, you are bound to pay processing charges and broker fees, and these are listed every time you make the next premium payment without any omissions. Thus, you know exactly what you are paying vis-à-vis the account performance. Besides, you get tax benefits on the ULIP premiums paid every year under Sec 80C of the Income Tax Act, 1961.

* Allows switching between funds as per market trends: Very few investment options in India offer the flexibility that ULIPs do. ULIP policies have few equals in terms of being able to switch between funds in the middle of the investment. If the market slows down, you can switch from debt to equity funds to minimise risk on the overall investment. Your investment manager can advise you on when to switch by monitoring the market closely. Most fund houses and insurers allow one free switch between funds every year, so you don’t lose any money on processing or switching charges. You get more opportunity to affect these switches on extending the ULIP term over 10 years to increase the corpus size.

* Grows money by compounding: You are free to exit the ULIP after the lock-in period of five years is over. By this time, you will have accumulated more money in the ULIP than you would by saving your money in a bank account or creating an FD. This happens with the power of compounding. However, it is advisable to stay the course and remain invested in the policy till it matures.

 

Managing investments successfully throughout the pandemic- Your guide

 From checking your mutual fund NAV in India to tracking investments made in equity mutual funds or debt funds, there are several aspects towards successfully managing your investments during a nationwide pandemic. The spread of the COVID-19 pandemic has led to a total lockdown throughout the country. All companies excepting entities in essential services have employees majorly working out of home while mutual fund firms are also functioning with minimal manpower at offices. The Association of Mutual Funds has also notified the Securities and Exchange Board of India (SEBI) sometime earlier that daily operations may be impacted at some levels. Yet, mutual fund houses are also striving to ensure seamless facilities for customers amidst these challenging times.

You can consider rebalancing your portfolio. Check out newer fund options including overseas mutual funds or international mutual funds if you wish to hedge against future expenses like global travel or higher education of children. Allocating a smaller portion of the portfolio towards international investments may help you enhance the quality of your portfolio while enabling you to benefit from positive market developments in fast-growing countries which have relatively shaken off the pandemic. However, consult financial advisors before making any such move as per experts. You can also try hybrid funds which may help in optimizing risks greatly. If you are investing in mutual funds via SIPs and do not wish to stretch a lot in the present situation, then you should know that everything will steadily get back on track in the near future.

People desirous of redemptions, new investments, switches or changes related to the account or profile, should keep a tab on the operational component of mutual funds. If digital platforms have been used, a majority of activities may be executed without any hindrances like before. However, people still conducting transactions physically may have to tackle a few temporary issues. Delays may be there in publishing the mutual fund NAV in India. Several fund houses have intimated investors with a view towards emailing transactions to them for processing as well. Many mutual fund houses have come out with mobile apps and internal digital platforms for investments and other online services.

You should look out for all such facilities offered by your mutual fund company. Investors may contact distributors for advice on proper digital platforms for meeting requirements of services and transactions. They may also initiate mutual fund transactions on investors’ behalf post approval of transactions via web-links through e-mails and SMS-es. The markets offer ample scope for investors to deploy funds in a suitably diversified portfolio of highly liquid, fundamentally solid and reputed entities.

Debt redemptions are comparatively more for fixed-income funds as per industry experts and managers. Year-end considerations may be stimulating these developments. You should also highlight liquidity above all else. Investors, if they have lower liquidity in their portfolios, should consider redeeming funds while building the necessary liquidity, irrespective of market circumstances. At the same time, if investors have ample cash in hand, they may consider fresh investment allocations while preparing to tackle some more volatility in the near future. You may consider sticking to your long-term investments unless your require funds urgently as per industry experts.

Emerging trends in Dubai furniture

 Dubai is the apple of the eye for the UAE business and commercial sector and with good reason too! After all, Dubai is one of the biggest and most favored global cities for businesses and leading companies in almost all industries. It has steadily transformed into one of the most evolved and cosmopolitan cities, thanks to its diverse population comprising of locals and expats from all parts of the world. Dubai is also the gateway to not only the Middle East for global entities but also the Asian region. Its strategic proximity to major global markets has made Dubai the preferred destination for top brands and products which are making major splashes worldwide. Furniture is no exception.

Dubai’s homegrown furniture brands have already started transforming themselves while several globally acclaimed products and styles have come to rule the roost as well. This change is quite visible when you visit any furniture store in Dubai and customers now appreciate it when there are diverse choices for every category across furniture shops in Dubai. Also, there has been a major change in the way people are buying furniture these days.

The usual definition of a furniture shop has changed drastically. People are now opting to purchase furniture online from leading platforms. They are citing convenience, greater diversity of choice and easy comparisons and attractive online deals and discounts as major factors. Furniture items are readily delivered to customers’ doorsteps with installation support and easy returns offered as well. On that note, here’s taking a look at some of the biggest emerging trends in the Dubai furniture industry.

1. Wall art- Framed wall art has become a major trend throughout the Dubai home furniture market. More and more buyers are now opting to choose abstract and often solid patterned wall art pieces with painstaking and careful framing. They are going with wall art pieces for various spaces in their home and it need not always be a costly affair as well. Opting for the right wall art is something that will definitely add a special touch to any Dubai home without a shred of doubt.
2. Chandeliers- You can glam up your living room or even your bedroom with a suitably chosen chandelier. Chandeliers are statement pieces without a doubt. These lighting fixtures impart old world glamour into the home while taking care of lighting and functionality requirements at the same time. More people are now opting for chandeliers in Dubai. This has become something of a rapidly emerging trend in today’s times.
3. Classy bed linen- People are also emphasizing upon bed linen and other accessories even while they choose to buy bed online and other bedroom furniture items. Buyers are more open towards experimenting with abstract and elegant hues and patterns for their bed linen. They are realizing the importance of frequently doing up the bedroom with evolving and attractive bed linen. This has become a trend across Dubai in its own right.

These are some of the emerging trends which are clearly dominating Dubai’s home furniture market at present.

Tax saving gets a lot easier with this plan

 

The growing popularity of equity linked saving scheme in India or ELSS, as the acronym goes, indicates its considerable benefits for regular investors. ELSS is a great choice for investments since it gives rather generous tax benefits. ELSS tax saving funds are funds linked to equities in the market which deploy a major portion of the fund corpus towards buying equities or equity-linked instruments. They are known as tax saving ELSS mutual funds since they offer tax exemptions from your annual taxable income based upon deductions under Section 80C of the Income Tax Act.

Keeping ELSS in portfolio will be a wise move since these funds deploy investments throughout multiple geographies and cover several companies varying form small cap entities to mid cap and even large cap entities. This enables diversification of your portfolio over a period of time. The schemes come with a mandatory 3-year lock-in period and you can only redeem your units post the expiration of this duration. The funds have risks since they are exposed towards equity markets and their innate volatilities although they have the possibility of garnering superior returns over the long haul. You can lower risks of volatility in the market by deploying SIPs (systematic investment plans) for investing in ELSS schemes. You can always invest a lump sum amount in ELSS schemes but this will be riskier. Most investors prefer investing smaller amounts every month or periodically by way of SIPs while it gets them good tax benefits in turn.

Ensure that your ELSS plan is diversified throughout various business sectors and market capitalization levels. There are two types of funds, namely Growth Funds where long-term creation of wealth is the objective and investors realize the full value at the time when they redeem their units and there is also the Dividend Payout option where you either get dividends which are tax-free or reinvest dividends wholly as new investments.

An equity linked saving scheme in India is a better option since you get deductions up to Rs. 1.5 lakh upon investments in the same under Section 80C. In spite of the new tax rules, i.e. taxes upon LTCG (long-term capital gains) from ELSS options, the funds are one of the best options for saving on taxes. They have the potential of superior long-term returns while covering your entire spectrum of Section 80C deductions simultaneously. They offer the highest returns after taxes as compared to all other Section 80C choices including ULIPs and PPF (Public Provident Funds). Historically, these plans have ensured close to 12% over the last decade and even higher.

The lock-in period is also low compared to EPF, PPF and NSC which have minimum 5-15 years as their lock-in periods. You can also easily shift to another fund if you are dissatisfied with the performance of your current ELSS fund. Long-term capital gains are also exempted till Rs. 1 lakh and the dividends that you get will be tax-free in your hands. You can keep investing after the expiration of the three-year lock-in period. It is thus important to bust wrongful ELSS myths about saving taxes and start off with a plan that is more suited towards your specific needs and requirements.