Investing your hard-earned money is as crucial as earning it. It offers a way to achieve different financial goals, generate passive income, and build a nest egg for a secure future. However, not everyone has the knowledge, time, and resources to invest in individual stocks, bonds, or other investments. Moreover, the market is unpredictable and it can be tough to keep up with market fluctuations and economic trends. That’s where mutual funds help.

Mutual funds offer an easy and accessible way to diversify your portfolio across different sectors and asset classes with professional management, low fees, and high liquidity. They now come with the SIP facility, which allows investors to buy mutual fund schemes periodically, bringing discipline through an automatic and regular investment strategy.

To help you invest wisely, here is a complete guide for investing in mutual funds.

• Understanding how mutual funds work

Mutual funds are investment schemes that collect money from many investors and invest the same in stocks, bonds, or other securities, distributing profits among them. There are different types of mutual funds based on asset class, sector, theme, structure, risk, and benefits. You must understand the type of mutual fund before investing in as it will determine the returns you get.

• Before investing, know your investment objectives

Identify your investment objectives. Do you want to invest for a short term or a long term goal? Are you looking for income or growth? Knowing your objectives will help you select the appropriate mutual funds. For instance, if your objective is long term growth, then a mutual fund with a high percentage of stocks can be suitable.

• Always go through mutual fund offer documents

Mutual fund offer documents provide valuable information about the scheme offered by an asset management company to the public. These include the scheme’s objective, minimum subscription amounts, cost structure (exit and entry loads), SIP details, fund manager’s profile and their experience, AMC details, etc.

By reviewing these details, you can better evaluate the risk return profile of a mutual fund investment plan.

• Importance of fund expenses

Mutual funds incur expenses, which are reflected in the total expense ratio (TER). It includes management fees, administrative costs, and other operating expenses.

As an investor, pay attention to the expense ratio as it significantly impacts your returns over the long term. For example, a lower TER means more money goes towards buying the actual assets in the fund instead of paying for its operational expenses. This helps you maximise both your returns and investment value.

• Ways to invest in mutual funds

You can invest in mutual fund schemes online through a bank’s or AMC’s website and investment apps. The online method allows you to easily buy and sell funds whenever you want. You can invest a lump sum or use a systematic investment plan (SIP) method, which staggers your investments in instalments to reduce risks.

To make things even easier, many fund houses and banks offer a lump sum and SIP calculator on their websites. These calculators help you estimate returns with three basic outputs- investment amount, tenure, and interest rate. Just click on calculate and get an insight into how much you will receive upon maturity. This means that you can create a plan, determine how much to invest, and set a timeframe to achieve your goals.

So, these are some pointers to help you get started with mutual funds and fulfil different goals and aspirations.

A current account is a type of bank account that is primarily used for business purposes. It allows the account holder to carry out transactions such as deposits, withdrawals, and payments on a regular basis. If you are planning to open a current account, there are a few things that you need to keep in mind.

Procedure for opening a current account

The steps for opening a current account are relatively simple. First, you need to identify a bank that offers current accounts. Since most banks offer different types of current accounts, it’s important to compare current accounts and choose one that suits your business needs. Once you have identified a bank, you need to submit the following documents:

Identity proof: You must submit documents such as a PAN card, Aadhaar card, passport, or voter ID card.

Address proof: You also need to provide address proof documents such as a utility bill, rent agreement, or property papers.

Business proof: You need to provide proof of your business, such as a business registration or GST certificate.

Passport size photographs: You must submit passport size photographs of all authorized signatories.

Once you have submitted these documents, the bank will verify them, and if everything is in order, they will open a current account for you. The account will be activated and you will receive a cheque book, debit card, and internet banking details.

Minimum balance requirements

The minimum balance requirement varies from bank to bank and also depends on your current account type. Most banks require a minimum balance to be maintained in the current account. Some banks may require a higher minimum balance if you opt for additional services such as a higher number of free transactions or a higher credit limit.

Overdraft facilities

Overdraft facilities can be a useful feature, especially for businesses that experience occasional cash flow problems. However, overdrafts can also be expensive, so it’s important to compare the overdraft fees and interest rates before choosing an account with this facility.

Fees and charges

Different banks have different fees and charges, so it’s important to compare the costs before opening an account. Look for an account with low monthly fees and transaction charges. Some banks may also require a minimum balance to be maintained in the account to avoid additional charges.

Interest rates

Unlike savings accounts, current accounts usually do not earn any interest.

Services and benefits

Finally, customer service is an important consideration when choosing a bank for your current account. Make sure the bank provides good customer service, with a dedicated customer support team that is available to help you with any queries or issues.

To wrap up

Opening a current account is a relatively simple process, but there are a few things that you need to keep in mind. Choosing a bank that offers the services and benefits relevant to your business needs is essential. Maintaining the minimum balance requirements is crucial to avoid penalty charges.

Retirement is something everyone looks forward to. Most salaried workers and corporate employees have a particular retirement age, but retirement planning can be tricky if you’re a business owner. Firstly, your retirement plan would be intertwined with your business plan. Secondly, as a business owner, you should stay involved for as long as possible.

Your retirement investment plan requires careful consideration and strategic financial planning. Therefore, early retirement planning can help you in the long run to ensure financial stability and security in your golden years.

Best Retirement Plans In India For Early Retirement 

If you want to know what pension or retirement plans will best suit you, try to determine what you want your life to look like during your retirement years. Your retirement planning can include details like where you want to live, how much that could cost you and what other expenses you might have to pay to maintain your lifestyle.

A good retirement plan can ensure all of your needs are met. Investing in an early retirement insurance plan is in your best interest since you get a more extended period to save and invest more money in a disciplined manner.

Retirement Investment Plans For Business Owners

These are some standard retirement plans you should consider when planning for retirement.

• National Pension Scheme (NPS)

The NPS is a government-backed scheme where you can invest in different avenues. It’s a standard retirement scheme used by corporate employees and self-employed individuals. Note that this scheme will mature only after your retirement or at the age of 60 years.

• Public Provident Fund (PPF)

Another government-backed scheme that offers a safe investment is the PPF. This fund allows you to invest a maximum of ₹1.5 lakhs a year and offers an interest rate of 7.1% per annum. The interest rate is, however, subject to change.

• Unit Linked Insurance Plans (ULIPs)

A ULIP combines the benefits of life insurance and market-linked investment under one plan. It also offers the benefit of partial withdrawal of funds after the mandatory 5-year lock-in period for your various financial needs.

• Pension Plans

Pension plans allow you to receive income during your retirement. Generally, you invest in the plan regularly and receive a regular income after retirement. These are some standard pension plans:

• 1. Deferred Annuity Plans
  2. Immediate Annuity Plans
  3. Pension With Life Cover
• Mutual Funds

A mutual fund allows you to invest your money in a fund created by a fund house. Several other investors also invest in the same fund managed by an experienced fund manager. These funds are then invested in marketable securities to earn returns. Here are some types of mutual funds:

1. 1. Equity Mutual Funds
   2. Debt Funds
   3. Liquid Funds
   4. Hybrid Funds

When buying a life insurance retirement plan, note that the life cover of the policy will secure your family in your absence. This makes your insurance provider’s claim settlement ratio an essential factor to consider. For instance, Tata AIA retirement plans offer a high claim settlement ratio of 98.53%.

Which Fund Or Plan Should You Choose?

Instead of choosing one retirement plan, diversify your income streams to build wealth. So investing in multiple assets that align with your financial capabilities is what is best for you.

Opt for retirement plans that offer maximum returns on your investment or allow you to save regularly over a long period while guaranteeing a steady income post-retirement. Also, make sure that you consider the inflation rate so that you can grow your wealth accordingly.

Generally, it would be best if you aimed to invest at least 20% of your income. As a business owner, your financial security is riskier than a regular salaried employee, so it’s best to start planning and investing sooner.

Conclusion

Most business owners don’t want to part with their businesses.  You may still want to be partially involved in your business management or operations. Even then, you should still consider planning for your retirement.

A good retirement plan will offer you a financial safety net regardless of how you spend your golden years. Furthermore, a retirement plan will support you and your family in any significant financial crisis.

Expeditious technological advancement and spread of unknown diseases both contribute towards volatility and ambiguity in a global economy. Development of new technologies blow away the need for manual assistance in organizations, which results in opportunity and income loss while new or deadly diseases may end the sole breadwinner’s life.

One of the prudent ways to provide financial assistance to yourself and your family dependents against such unexpected upheavals is to opt for life insurance. Before we explain in detail parameters to factor in to buy life insurance as per your budget, let us define what is life insurance.

What is life insurance?

Life insurance is a contract signed between the insurance company and the insurance holder wherein the insurer promises to pay a predetermined sum to the insured’s dependents upon his demise or after the completion of a set period. The sum assured is paid by the insurer in exchange for a particular premium amount borne by the insured.

As there are different kinds of life insurance options providing financial aid in the form of term life cover, post retirement cover, wealth creation, long term financial goal attainment etc., it is important for you to assess among all the available insurance options to choose the one as per your financial requirement.

How to purchase an appropriate life insurance policy on budget?

In contrast to the popular belief, when you buy life insurance you do not require investing a huge chunk of money upfront. For instance, ULIPs is an insurance plan that combines both life insurance and market linked investment. A part of your insurance premium goes towards insuring your life while the rest is invested in bonds, stocks, market instruments etc. Investment in such insurance plans can be started with usually as less as Rs 3,000 per month to avail long term benefits of numerous bull-runs in market. ULIPs come with a lock-in period of 5 years and qualify for tax deductions as per Section 80C. In case of term insurance, as its premium is based upon the insurer’s age and medical history, purchasing it early can fetch you the insurance at a low premium.

Your insurance premium cost must be viewed as an investment, which allows you and your family a safety net during uncertain events. Hence, you must research in depth to select the correct insurance, which not just would assist you to save on the premium cost but also cater you with sufficient cover.

Here, we will discuss ways on how you can purchase life insurance as per your planned budget:

Purchase it as early as possible

Your age impacts your insurance premium amount directly, i.e. the younger you are, lower is your insurance premium and vice versa. To put it simply, if you buy your insurance at a young age or as early as possible, you will get the policy at lower premiums as compared to if you procrastinate until you get older as there is reduced risk linked with young policy holders. Thus, it is recommended that you buy insurance in your 20s as it saves money on your premium and helps you to avail it within budget.

Follow a healthy lifestyle

For those maintaining a good lifestyle, their premium amount is lower. Insurance companies pay attention to the policyholder’s medical history. Lifestyle linked maladies like hypertension and blood pressure can enhance the premium amount. Thus, it is crucial to follow a healthy lifestyle.

Irony here is when most require life insurance just after they have had a health issue, they are least likely to avail it or may avail it at an extremely high premium. Before providing you with insurance, insurers conduct medical checkups to collect information regarding your medical history. Based on the checkup, insurers either approve or reject your policy request. Thus, ensure to maintain a healthy lifestyle as it reduces the risk of contracting ailments, which helps avail lower premium on insurance.

Use life insurance premium calculator to compare among multiple insurers

Before approving the insurance cover to the insured, insurers check various factors such as the insurer’s age, health condition and income. As the insurance premium is set as per the individual’s risk profile it can vary by a great margin from one customer to another. By using online life insurance premium calculators, insurance seekers can self-check their policy approval prospects as well as determine the suitable insurer as per their budget.

Choose premium payment mode carefully

When buying a life policy, you get the choice to pay premiums in numerous ways – monthly, half yearly or annually. For those who select the monthly premium option, should be careful to pay their premiums monthly as nonpayment can result in termination of the policy.  Also, many insurance companies permit the insured to pay a lump sum premium amount, which gets the holders a good discount on premium. Thus, ensure to compare all the premium payment modes on the platform i.e. monthly, half yearly or annually to choose the one giving you maximum discount.

One of the most important financial metrics that banks and lending institutions look for in an individual is the credit score. Since the credit score in India is primarily managed by CIBIL, which is a credit information company, it is also referred to as the CIBIL score. To get this score, what CIBIL actually does is analyze your credit history and assigns you a score based on your history.

Now, this credit history check is done by financial institutions to determine the credit worthiness of an individual. Depending on the score of the individual, the institution determines whether or not the said person in question is eligible for a loan or a credit facility. The CIBIL score range starts from 300 and goes all the way up to 900. And as you might have already guessed, the higher the score, the better the chances are for your loan to get approved.

However, the importance of the credit score isn’t limited to just loan approvals. In fact, the CIBIL score range of a person is actually used to determine the rate of interest of a loan or a credit facility. The higher the score, the better your chances are for receiving an attractive rate of interest.

Okay so, now that we’ve established the importance of the CIBIL score, here’s a question that’s probably on your mind now – can you get a home loan without a credit history? Continue reading to find out the answer.

Can you Avail a Home Loan Without a Credit History Check?

The answer to this question is quite simple. Of course you can. While the credit score is a very important metric that’s used by lending institutions to determine your eligibility for a credit facility, it is not the only sole determining factor.

As a matter of fact, other than your CIBIL score range, financial institutions examine a host of other parameters as well. For instance, they take a look at your age, your income levels, your debt-to-income ratio, and your employment status, among others. If you manage to successfully satisfy all of the other criteria, lending institutions may still be willing to offer you a home loan even if you don’t have a credit history or a desirable CIBIL score range.

That said, here’s something that you should know. If your credit history check reveals that you have no history, financial institutions may sometimes ask for additional supporting documents. Alternatively, they may even push for a guarantee from a third party with a good enough credit score. And finally, you may also be asked to furnish an additional collateral to secure your home loan as well.

Also, it is important to keep in mind that the parameters that banks and other financial institutions have for determining the home loan eligibility of a person with no credit history is likely to be different.

Conclusion

Want to get a credit history check to determine your CIBIL score range before applying for a home loan or any other credit facility? Finserv MARKETS is the perfect place for that. It is an online marketplace for all things finance. In addition to getting your credit history checked, you can also apply for a home loan right from the portal itself. So, make a visit to Finserv MARKETS right away.

Anybody who runs a company should know how equipment financing is often as advantageous because it is. Listed here are a couple of items to see when getting equipment financing to operate. These ought to be reviewed simply because they show precisely how effective financing could be for any kind of business that should get its products sooner without getting to cover everything up front.

Part one about equipment financing is it works to make sure that a credit line can be obtained for any business. This is when a company can certainly repay a particular device during a period of time. You can do this as the new devices are accustomed to create more profits for any business to utilize.

Also, the cash which is used is going to be covered entirely inside a plan. Which means that every cost for building and delivering the gear to some place is going to be covered. This could work to really make it so anybody can obtain a good profit from something which it requires because of its operations.

Also, the instalments in equipment financing will stay with time. This enables you to have a business from struggling with the risks of inflation. Inflation could make some equipment products greater with time. Using equipment financing will assist you to safeguard the company from taking a loss as the need for something rises. This really is all because of the way the equipment is going to be of the identical cost.

Also, most of the equipment financing payments that the business makes could be tax deductible. This enables you to be sure that the business can help to save on tax payments. A large reason for this requires how these payments might involve interest in some instances.

Obviously, the very best advantage of this plan of action involves the way it will receive a business to get what it really needs sooner. A company can get something rapidly without getting to hold back too lengthy to have it to operate. It can go to a company as rapidly as you possibly can, thus which makes it simpler for that business to obtain profits from the equipment it needs. This can be advantageous for the conclusion from the business as well as the shoppers who wish to have this from it. This really is all because of equipment financing.

All of these are reasons why equipment financing is really a great factor to get involved with. This kind of financing may be used to have any business to get the cash it needs for different types of products it needs for it to become more lucrative and effective. Make sure to watch out for this when getting any kind of business to get more effective capable to operate correctly.