Showing posts with label Bank Services. Show all posts
Showing posts with label Bank Services. Show all posts

June 11, 2018

How to go for making more money

Everyone want to make money and live independently. So what should one do; choose to make more money or spend less. Does spending less results in more savings and more savings means more investment leading to more money. This assumption can be presumed as common sense and everyone knows it. There is no need of someone to come and tell the same thing. Question is how to do it and analyse whether less spending actually results in more money.

I was reading this article on on Should I Make More Money or Spend Less?. The article started of with giving thumb rule "invest for retirement as much as you spend for essentials". The author came up with this fantastic idea from out of the blue.

Choose to make more money or spend less

The article follows with a case study of Anita and assume that she saves 40% each month for her retirement. If she invest in stocks for 26 years, she will have 13 crores in her portfolio and she can live well?? [she will be 55 years old] from that point of time. If she decide to buy a house, she will not have enough savings, so she cannot live well. So the author suggest an ideal way "use the retirement template, generate a figure and start saving for it".

The author do point out that "As regards earning more, the standard ways are getting a better paying job perhaps with higher qualifications." Investing does not mean saving the money and putting in mutual funds. There are other ways of investment or doing business or higher qualifications or migrating to other countries and earning more salary.

The money in stock market is gaining some interest of 12-15% every year. A successful business can generate ten time volume than that. You can take a loan from bank or friends and start a business. If you follow the thumb rule shared by the author, you will end up wasting your life with some crores in your account [if you do not have any unexpected expenditure in all these years] [What if she saved all this money and stock market collapsed when she retires]. The thumb rule shared by the author is mathematically right but not practical in life.

What should I choose? To make more money or spend less?

Making more money is obvious choice. You can start a profitable business from money from real estate, partnerships, loans and other means. For a middle class person, it is almost impossible to start  a business due to lack of capital investment.

The saving money and spending less path will lead you to a 9-5 job for years without any enjoyment in life. Your life is not a tool to be used to become financially independent. Use it create more source of income instead of saving it or merely investing in mutual funds. Saving money will take you a lifetime to get financially independent but not rich. Now if you follow the path of investment in mutual fund and became financially independent, you can only live barely with the inflation adjusted monthly money. So you saved for 26 years by living with minimal money to live more years with minimal amount. How bad that would be.

Always think about making more money and do things that you are passionate. No need to follow the savings path. When you have enough money, start a business and do not keep investing in mutual funds.

April 22, 2018

4 Common Financial Mistakes Single Parents Must Avoid

Being a single parent is tough when it comes to managing finance and bills barely making from one paycheck to another paycheck. The debts from mortgages and loans will keep on building up until you decide to avoid common financial mistakes that single parents make. This post will help single mom, single dad, single parent to look at debt, mortgages, loans at more practical and refreshing ways. There are many financial mistakes people make without thinking twice and that will lead to gross debt.

I have written a post on 7 Effective Steps to Get Out of Mortgages and Loans for Job seekers who are unemployed. That would be a good read to start with to identify ways to get out of mortgages and loans. We need to identify the mistakes first, correct them, take new initiatives and learn financial discipline to get out mortgages and loans as a single parent.

Who is a Single Parent?

As per Wikipedia, A single parent is a parent that parents alone without the other parent's support, meaning this particular parent is the only parent to the child, responsible for all financial, material, and emotional needs.

Who is a Single Mom?

A mother who has a dependent child or dependent children and who is widowed, divorced, or unmarried. Source: Collins


There are approximately 13-17 million single parents in the United States and they are responsible for raising around 18.1 million children which represents 26 of all children in the United States under the age of 21 years old. Source: Magazine

Common Financial Mistakes Single Parents Must Avoid

Common Financial Mistakes that Single Parents Make

There are many common financial mistakes committed by single parents or their ex- spouses. It is time to identify them and see how one can correct them in future course to get out of debt from mortgages and loans.

1. Searching for Full Time Job Only

Is it necessary to always search for full time jobs. Many single parents commit the mistake of searching for full time job when then can earn from part time or online jobs. I know many single parents who make double money doing part time work than their previous full time job. There are many websites and online magazines that will help you to work from home including

Have you ever considered to go for part time work or earning from online works. Learn how you can use your skills to earn money.  You can approach local employment center or even your friends if they are looking for a person. Read more on Passive Income Ideas for Making Money While Sleeping.

Financial Mistakes Single Parents

2. Earning Slow, Spending Fast

Many single parents complain that the bills get accumulated every month, personal expenditure gong high, business is failing, took poor decisions of buying car, taking a home loan, children's tution was not paid and lot more. This basically involves Financial Discipline

You may need to sit one day, take out a notebook and pen, write down all your expenses, investments, earnings and find out the gaps. I would also suggest to talk to credit counselors who offer financial advice for free online. You can also talk to financially savvy friends to get some understanding of financial course.

3. No idea of Rates of Mortgages and Loans

Many single parents have never thought about understanding how mortgages and loans work and how interest rates are calculated. They just keep on paying bills and fixed EMIs and at the end of 3-5 years, understand that they capital has not even gone down a single bit. Only when you put effort to understand the financial system, then you can manage EMIs and see how debts are dwindling down.

Find out which debt from mortgage and loan has higher interest rate and pay off that first. Talk to a fee only financial planner to create a road map for future financial course and how to effectively manage economical decisions.

4. Small Financial Actions are better than Large Financial Decisions

I have seen single parents taking large decisions like I am going to pay off the entire debts from mortgages and loans in 6 months, or I am going to save this much money fro my children. This does not work usually. Why? The financial stress from mortgages and loans are comparatively high and person tend to forget or repress these decisions.

Common Financial Mistake

Let us look at small financial actions to get more money in hand. 
  • Do you have a line of credit @5.25%, why don't you search for a Homeline credit line @ 3.5%. 
  • Paid subscription to bunch of magazines and newspapers, Unsubscribe and get free copies from friends or online forums. 
  • Pack a lunch and save instant money.
  • Join local buyers club and save on groceries.
  • Take a list of items that buy at home in a month, categorize them as per cost and avoid high cost items and replace them with low cost item.
  • Start Tracking expenditure with free mobile apps, take a print out every month and check ways how to reduce spending next month.
  • Sell out old stuff and save space in your home. 
  • Look for cheaper deals using apps, newspapers and compare at least 3 places.
  • Buy items and resell them in ebay, amazon, other sell-buy apps. Read more on Top 36 Android Apps For Buying and Selling Used Items.
Have self determination and disciple and you can pay off the debt. Learn from the mistakes and try to do recourse. Many around us are also having debts and trying their level best to pay off them. It need courage and the right path. You must avoid common financial mistakes and do what is best even if you do not like it. Share for other single parents, friends in your circle and have a discussion with them on this.

April 20, 2018

7 Effective Steps to Get Out of Mortgages and Loans for Job Seekers

Our system has one outstanding way of holding men in place - it's called a mortgage," says Australian author and psychologist, Steve Biddulph. Young generation of today is grappled with the system of mortgages and loans. Mortgages and loans engulfs the entire life of young generation especially job seekers. These mortgages and loans come in packages such as Educational and Student loans, Car loans, Appliance loans, Payday loans, Auto Loans, Personal Loans and Home loans. This post tell you 7 effective steps to get out of mortgages and loans for job seekers.

Generation Information

What is a Loan?

A loan is a debt provided by an organization or individual to another entity at an interest rate, and evidenced by a promissory note which specifies, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment. Source: Wikipedia

Types of Loans: Conventional Loans, Conforming Loans, Non-Conforming Loans, Secured Loans, Unsecured Loans, Open-ended Loans, Close-ended Loans. Source: Debt

What is a Mortgage?

A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Source: Investopedia.

Young Generation Can Get Out of Mortgages and Loans

Who is a job seeker?

A person who is searching for job and currently unemployed. I have written a post on Miracle mantra for job seekers to get desired job immediately that describes there is no miracle mantra to get a job but hard work and experience.

How Job Seekers is Trapped in Mortgages and Loans?

"When you go for that vital interview at the bank you walk out with a a hundred thousand dollars*. It's a miracle, but something else happens, something they don't tell you about. You leave a testicle behind!

"The bank manager keeps it in a jar in his safe, along with all the others! If ever in your life you get the urge to do something risky, exciting, different or adventurous, chances are you will not because you don't have the balls to do it!"

The system of mortgages and loans are systematically planned to trap the lower income class and middle income class individuals and young people till the end of their lives. I guess everyone remember about the bankruptcy lead to global depression. Bank systems and private parties squeeze the good part of lives of youngsters and keep sending them reminders of loan and mortgage payments.

I know a friend whose father took a home loan in 2003 from a bank for $100000. They have paid EMI 15 yrs and paid a total of $200000 which is twice the initial amount. The left over amount was $75000 They were totally shocked. This was basically because of floating interest rate which they did not knew. The rate of interest was 7% when they took the loan and after 15 years it became 14%.

7 Effective Steps to Get Out of Mortgages and Loans for Job Seekers

There are couple of methods that everyone should follow to get out of mortgages and loans. I will share a couple of them here. 

1. Knowledge of Loans and Mortgages that you have taken

Learn as much as about loan rates: Prime lending rate, effective interest rate, types of rates: Floating or fixed, take full account statement often, understand if there are penalties or extra charges levied by the bank, check amortization schedule, learn about converting the loan to base rate or mclr rate conversion. 

Lack of knowledge about your loans and mortgages will blind you from effectively reducing risk and banks may cheat you systematically. Previous case study will show you how exactly bank cheated them with floating rate interest. A retirement calculator will give you approximately how much money you should invest every month to save for retirement life. An EMI calculator will help you to adjust your EMI accordingly to reduce duration.

2. Get Unemployment benefits

Try to get unemployment benefits from Government. This will help you to manage current situation and get tax benefits.

3. Talk to a Debt Counselling or Debt management firm

Debt management team can help you figure out how to plan your EMIs and how to get out loans and mortgages fast. 

4. Increase EMI amount and Pay the Loan or Mortgage Fast

Debt is debt however you call it. Bank will get more money from you if you keep on paying a small amount of EMI. At the end of the closing period, I can assure you that you will be at lose and Bank will gain. The entire loan and mortgages system is planned in such a way that you have no other option than losing hard earned money. 

People may tell you about tax benefits for loans that you have. I would say do not go for it. You can get tax benefits by purchasing a health care policy, or insurance. There are many more ways to gain tax exemption other than loans and mortgages.

5. Ask Bank to Reduce Interest Rate

You can talk to the bank manager, explain your financial situation and ask for a reduction in interest rate. This is a possible method which you can try. Never go for extending the duration of loan.

6. Talk to Fee Only Financial Planners or Financially Savvy Friends and Relatives

It may be little hard for you to share your financial situation to others. But it will help for sure. You can hire a fee only financial planner to plan your debts management, investment and retirement. If your friends are financially savvy, they help you to plan and finish of debt.

7. Join FB Groups and Online Forums that Talk about Debt management

Many active forums and groups are out there in online space where you can ask questions and clarify your doubts about loans and mortgages. Join them and be an active member. This will help you in figuring out what exactly you should do to get out of loans and mortgages.

April 8, 2018

Why You Should Not Invest in Only One Mutual Fund AMC

We often struggle to find good mutual funds to invest. Some then decide to invest all the funds in one AMC or mutual fund house. There may be thousands of reasons for that for selecting a single AMC to invest with including investment strategy of the fund house, smaller product list, good track record and more. I am going to tell you why you should not invest in only one mutual fund amc.

Strategies Defer with AMCs

Some strategies work and some do not. Our focus is to understand the strategies used by different mutual fund houses and invest in winning strategies that provide higher returns. Investment strategies changes with time and market. If you are investing in only one AMC and time and market is against it, then your returns will be lower than expected. It is better to understand our own cognitive biases and try to take proper decisions.

cognitive biases Why You Should Not Invest in Only One Mutual Fund AMC

Quantum Mutual Fund AMC has Clear Investment Strategy, Small Fund list and the customer care is better. They are the first direct fund, low cost, conservative with good downside protection.  It invests in BSE 200 but conveniently uses Sensex TRIas benchmark. It has a complex exit load structure.

Franklin Templeton has good track record and they have the buying power for all the junk funds too.
UTI disclose scheme expense ratio.

Why Diversification is Important

Why You Should Not Invest in Only One Mutual Fund AMC? 
You are here to make money and not to get married!

Diversification of mutual fund AMCs is as important as diversification of portfolio. Choose funds first and then invest in them and then check the investment strategies of the respective AMCs. Diversifying the AMC also help in reducing risk when market crashes, fund managers resigns, new owners take in charge or even the fund house just close down. It is better to take these into consideration and not investing in only one mutual fund amc.

April 2, 2018

Why Dividend Paying Stocks are Best for Long Term

Dividend paying stocks are stocks that pay monthly dividends to shareholders.  It is the percentage of the earning the company is sharing with the investor. Want to know the best dividend paying stocks for the long term to invest. There are many highest dividend paying stocks that provides high dividend yield in the next 5 years and for long term. We have scouted through some quarterly dividend paying stocks, annually dividend paying stocks, best yield dividend stocks stocks last 5 years and dividend paying penny stocks. Here is the result of our search. The goal is to search and identify the best dividend stock to invest for long term.

Why dividend paying stocks

Dividend paying stocks means that the company will give dividends to the shareholders every year. These dividends are not taxed up to 10 lakhs per year and Government will charge 10% on the excess amount exceeding 10 lakhs.

Dividend yield = annual dividends / current market price. It is a way to measure how much cash flow you are getting for each rupee invested in an equity position.

Why dividend paying stocks are good

Dividends means money. Money is always good right. Dividend paying stocks fetch good serious money while your stocks increase in the company and the if there is a good share growth. Let us compare the 30 companies that paid dividends to shareholders. The image provides average dividend per share for the last 5 years and average dividend yield.

dividend paying stocks coal india

Eg: Coal india dividend yield 7.85 means for each 100 inr worth of coal India, you will be getting 7.85 inr dividend each year.

Not just that on the course of the time, share price will grow, thereby increasing your dividends. Now you know why dividend paying stocks are best for long term.

Why buy dividend paying stocks

Investors prefer dividend paying stocks because it can provide you a good regular income and that income will increase if there is a good share growth.

companies provided handsome dividends to shareholders

why invest in dividend paying stocks

I told you all the reasons why you should invest in high yield dividend stocks. These stocks provides you assured passive income. I can share more details of dividend paying stocks and why you should pick the right stock.

Companies with net profit and highest dividend yield for the last 5 years

Source: getmoneyrich

When to buy dividend paying stocks

You should buy dividend paying stocks that will grow in in long term. We have used the screener tool to screen such stocks and we come up with a formula.

Dividend yield > 2 AND
Average 5years dividend > 0 AND 
Average return on capital employed 10Years  > 15 AND
Sales growth 5Years > 10 AND 
Average return on capital employed 5Years  > 15 AND
Average return on equity 10Years  > 15 AND
Price to Earning < 20  AND
Price to Earning > 1 AND
Debt to equity < 1

Here are the results.

Why Dividend Paying Stocks for Long Term

Read more: 78 Best Stocks to Buy for Investing in Stock Market

March 30, 2018

Best Stocks to Buy for Investing in Stock Market

Are you looking for the best stocks to buy in india for long term, best stocks to buy for investing in stock market for beginners, best stocks to buy in india 2017 and 2018, best stocks to buy in india for short term and best stocks to buy today. You have to look for the top 10 shares to buy tomorrow and get the list of best stocks to buy in india for short term 2017. I will explain the basics on how to do investing in stock market, best shares to buy for beginners and stocks to buy tomorrow for greater returns.

A Beginner Look for Names of Stocks to Buy

Everyone wants to make money by investing in stock market, buying and selling stocks without any effort. A beginner want the name of the stock, when to buy and when to sell. A beginner want to get something for nothing. He/she is ready to invest his hard earned money, ready to trust you with the money but he/she is not willing to learn the basics of investing in stock market.

A Beginner Investor has three basic questions.
  1. How does the stock look in near term?
  2. How does the Stock look in long term? and,
  3. Are there better/other stocks that I can consider?
Best Stocks to Buy for Investing in Stock Market for Beginners

Let me share some stock stories for you.

Go to Google and search for "graphite share price". The stock price of Graphite was 78.55 in January 2017. Just one year back right?. Now stock price of Graphite rose to a amazing figure of 852.10 in January 2018. Imagine you have bought 1000 stocks of graphite in 2017 for 78550 INR and you could have sold all of them in January 2018 for 852100 INR. That is a profit of 773550 INR in one year.

Go to Google and search for "maruti share price" 1243.55 in August 2013 and the price of the stock surged to 9729.55 in December, 2017.

There are many other stocks that have so much potential to earn. It is just that you need to spend time and effort to do real research and invest and exit in the right stock at the right time.

Basics of Stock Market for Beginners

Stock Market is where you buy and sell shares. It exist in electronic form and you do all kinds of transaction using internet. Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) make up all the stocks. You can access the stock market via a registered intermediary called the Stock Broker.

Those who participate - I mean do transactions in the stock market is called Market Participant. You may be knowing about so many scams such as Harshid Mehta, Satyam Computers related to stock market in last few years. The Securities and Exchange board of India - SEBI - The Regulator - was established to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected there with or incidental there to. SEBI ensures a level playing field for all the market participants. In order to regulate the market, SEBI has set specific rules and regulations for the entities those participate heavily in the stock market.

Best Stocks to Buy for Investing in Stock Market for Beginners

  1. *Plastiblends India* - India's largest manufacturer and exporter of color & additives master batches and thermoplastic companies for the plastic processing industry.
  2. *Indoaolar* - India's largest PV solar cell manufacturer producing high efficiency premium solar cell and modules.
  3. *Sampre nutrition* - Biggest candy supplier to patanjali.
  4. *BDL* - Monopoly in mfg missile
  5. *Tilaknagar Ind* -Producer of mention house (largest selling brandy in India)
  6. *GOCL CORP* - one of the largest dentonator manufacturer in world
  7. *Bharat wire roaps*- One of the largest manufacturer of steel wire roaps in India and globally
  8. *Diamonds and chemicals* - The only manufacturer of etylenediamine in india
  9. *Gravita India*- India's largest lead manufacturing company
  10. GAIL- 68% share in lng market
  11. SUNILHITEC - Sunil Hitech Engineers Limited (LTP - 8.30)
  12. GVKPIL - GVK Power and Infrastructure Ltd (LTP - 14.15)
  13. ZEEMEDIA - Zee Media Corporation Ltd (LTP - 38.2)
  14. OMMETALS - Om Metals Infraprojects Ltd (LTP - 48.85)
  15. BOM: 522134 - Artson Engineering Ltd (LTP - 71.65)
  16. RCF - Rashtriya Chemicals & Fertilizers Ltd (LTP - 73.1)
  17. MEGH - Meghmani Organics Ltd. (LTP - 84.30)
  18. SONASTEER - Sona Koyo Steering Systems Limited (LTP - 98.45)
  19. PURVA - Puravankara Ltd (LTP - 138.55)
  20. PRABHAT - Prabhat Dairy Ltd (LTP -150.70)
  21. Accelya Kale Solutions Ltd
  22. Ajanta Pharma Ltd
  23. Asian Paints Ltd
  24. Atul Ltd
  25. Aurobindo Pharma Ltd
  26. Avanti Feeds Ltd
  27. Bajaj Auto Ltd
  28. Bajaj Corp Ltd
  29. Bodal Chemicals Ltd
  30. Britannia Industries Ltd
  31. Byke Hospitality Ltd
  32. Caplin Point Laboratories Ltd
  33. CCL Products India Ltd
  34. Colgate-Palmolive (India) Ltd
  35. Credit Analysis And Research Ltd
  36. Cummins India Ltd
  37. Cupid Ltd
  38. D B Corp Ltd
  39. Dabur India Ltd
  40. Dhanuka Agritech Ltd
  41. Dharamsi Morarji Chemical Co Ltd
  42. Divi’s Laboratories Ltd
  43. Dynavision Ltd
  44. eClerx Services Ltd
  45. Elantas Beck India Ltd
  46. Gabriel India Ltd
  47. Hawkins Cookers Ltd
  48. HCL Technologies Ltd
  49. Hero MotoCorp Ltd
  50. Hindustan Unilever Ltd
  51. Indo Count Industries Ltd
  52. Indraprastha Gas Ltd
  53. IST Ltd
  54. ITC Ltd
  55. National Fittings Ltd
  56. Orient Refractories Ltd
  57. PI Industries Ltd
  58. Pidilite Industries Ltd
  59. Ultramarine & Pigments Ltd
  60. V-Guard Industries Ltd
  61. Vinati Organics Ltd
  62. VST Industries Ltd
  63. Ybrant Digital Ltd
  64. Page Industries Ltd
  65. Procter & Gamble Hygiene and Health Care Ltd
  66. SNL Bearings Ltd
  67. Sonata Software Ltd
  68. Southern Magnesium & Chemicals Ltd
  69. Star Paper Mills Ltd
  70. Sun TV Network Ltd
  71. Symphony Ltd
  72. Tata Consultancy Services Ltd
  73. Tata Elxsi Ltd
  74. Kewal Kiran Clothing Ltd
  75. Marico Ltd
  76. Mayur Uniquoters Ltd
  77. Menon Bearings Ltd

small Stocks to buy for sure

stocks under hundred rupees

stocks under hundred rupees 2

Source: UnofficedQuora and Freefincal

stock to buy long term

Check Marketsmojo before investing.

Share the page for helping other beginners.

March 29, 2018

Ultimate 9 Steps of Investing For Dummies Cheat Sheet

This post explain the ultimate 9 steps of investing for dummies cheat sheet. You can call it it as investing for dummies cheat sheet or a step by step tutorial. We will talk about why should one invest with comparing lives of Joe, Jones and Andrew and how these three drove their life and what happens to their investments, savings and returns. Hope this investing for dummies cheat sheet will help you to stay invested in life and enjoy your life.

Why Should one Invest?

Let us discuss an example of a person named "Joe". Joe earns $600 or approximately 40,000 INR and spend $400 towards cost of living including rent, food, mobile and internet recharges, medical bills, shopping, transport etc. The balance is $200. Joe decided to spend that too in taking membership in dating sites and clubs. At the end of month Joe wait for the next month salary. At the end of 20th year, Joe realized, he has no money as savings.

investing for dummies story of joe

Jones is another fellow who worked with Joe. Jones decided to save some bit of money and not spend the whole amount. At the end of the 20th year, Jones has retained a significant chunk of money.
YearsYearly IncomeYearly ExpenseCash Retained
Total Income17,890,693
Jones have 17,890,693 to support him for his retirement life with increased inflation rate and higher expenditure,

Andrew, a friend of Joe and Jones decided to invest the money where he get an approximate 12% returns.
YearsYearly IncomeYearly ExpenseCash RetainedRetained Cash Invested @12%
1600,000360,000240,000 20,67,063
26,60,0003,88,8002,71,200 20,85,519
37,26,0004,19,9043,06,096 21,01,668
47,98,6004,53,4963,45,104 21,15,621
58,78,4604,89,7763,88,684 21,27,487
69,66,3065,28,9584,37,348 21,37,368
710,62,9375,71,2754,91,662 21,45,363
811,69,2306,16,9775,52,254 21,51,566
912,86,1536,66,3356,19,818 21,56,069
1014,14,7697,19,6426,95,127 21,58,959
1115,56,2457,77,2137,79,032 21,60,318
1217,11,8708,39,3908,72,480 21,60,228
1318,83,0579,06,5419,76,516 21,58,765
1420,71,3639,79,06510,92,298 21,56,003
1522,78,49910,57,39012,21,109 21,52,012
1625,06,34911,41,98113,64,368 21,46,859
1727,56,98412,33,33915,23,644 21,40,611
1830,32,68213,32,00617,00,676 21,33,328
1933,35,95014,38,56718,97,383 21,25,069
2036,69,54515,53,65221,15,893 21,15,893
Total cash after 20 years 4,26,95,771
Andrew made a whooping 4,26,95,771, staggering 2.4x times the regular amount. 

Now you know why we need to invest. Investments creates wealth, help you to fight inflation and support you in retirement life.

9 Steps of investing for dummies cheat sheet

1. Make a list of all your investment and assets and liabilities. Are you having a positive net worth or a negative net worth. If you are having negative net worth, try to think of ways to generate more income from other resources.

2. List down all your bank accounts and decide to cut down your total no. of Bank accounts. With the number of increased bank accounts and credit cards, you are losing a chunk of money as commissions, bank charges etc.

3. Identify your emergency corpus is in place or you are working on it with a plan. Having 6-9-12 months' expenses equal money to be kept as Emergency corpus.

4. Write down all your future goals. Put them in different time frames say, 0-2Y, 3-5Y, 5-10Y, 10Y and beyond. Put value for each goal, assuming if this goal is to be achieved in 2018. Compare the combined number of all goals with your net worth. Inflate your numbers for actual consumption years like 2020, 22, 25, 30 & so on.

5. Identify your term plan need and purchase adequate term plan. Term plan is only one claim during the term of policy or no claim at all. Term Plan must be at least 15-17 times of your yearly income or 500 times of your monthly expense. Review the cover amount at own marriage, and at every child's birth, as well as for home loan.

6. Identify your health insurance need and make sure your personal policy(ies) covering you, your family and parents is(are) in place. Best Family Health Insurance Plans in 2018

7. Identify how much do you need to invest on monthly basis for each individual goal, at different rates. Say 4% rate for a 0-2Y goal. 5-6% rate for 3-5Y goal. 6-8% rate for 5-10Y goals and 8-10% rate for 10+Y goals.

8. Based upon your goals, decide your asset allocation between Debt, Equity, Stocks and cash. Select investment instruments accordingly. 

Asset allocation = Equity : Debt ratio

1. Cash - Hard cash in your purse and amount in your SB/Current account
3. Equity - Direct and through MFs
4. Real Estate - Direct and through REITs and Investment trusts, Land, House, Domestic, Commerical
5. Precious metals and Gems and stones - Gold, Silver, diamonds
6. Art work
7. Any other thing can't categorized above.

If you have not started any MF investments, you can read A Beginners Guide On How To Invest In Mutual Funds Online to get more info on it.

9. Write down your Will.

Share this post and Do these 9 steps.

How to Switch MF investments from Regular Plan to Direct Plan Online

Are you looking for mutual fund switching from regular to direct, mutual fund switch rules, switching mutual funds capital gains, how to switch to direct online and mutual fund switch time frame. Check this step by step guide process on how to switch between mutual funds, how to convert regular mutual fund to direct plan, how to switch MF investments from regular plan to direct plan online and offline and how to use Kuvera smart switch to switch mutual funds to direct plan without any charges.

When Direct Plans are Announced

In 2013, SEBI - Securities and Exchange Board of India asked all mutual fund houses to offer direct mutual funds. This means that there 2 types of mutual funds are there- regular plan and direct plan. Regular plan means the investor like me and you has to pay commission charges to brockers of AMCs. In Direct plan, this commission costs are null. Anupama Telang in Money Control have explained how to switch MF investments from regular plan to direct plan and it is a good read.

Why to Switch from Regular Plan to Direct Plan

When you swtich from regular to direct plan, your returns will be marginally high and in course of time it will become significantly high. Mutual Funds from Direct plans are bought directly from mutual fund houses and not from the ditributor. The commission usually goes to the distributor from investor is returned to the investor in the form of lower expense ratio. The returns in direct plans is maximum 2 percent higher than regular plan.

How to Switch MF investments from Regular to Direct Online

Method 1: You must have done KYC and updated AADHAR to do this. Go to individual AMCs, login to your account, go to transaction page where you can see purchase/switch/redeem fund options. 

Choose Switch option and select fund name from the drop down list.

The fund should have a DIRECT written in it. eg: Aditya Birla Sun Life Tax Plan (G) Direct.

Method 2: Go to any direct online mutual fund platforms provided by MyCAMSOnline, KARVY, MF Utility and select switch option.

Method 3: I use Kuvera for investments and it is completely free of cost. It is first free Direct Mutual Fund portal at where you get free fund recommendation, goal planning, automated rebalancing. You can join using my invite code UZ2Q9.

Step 1: Importing Portfolio

Login to Kuvera and select import portfolio.
Go to Karvy and request a CAS - Consolidated Account Statement.
You can provide any password for opening CAS.
Wait for 1 hour and you will get CAS document in email.
Download CAS, upload in Kuvera and enter password.

import portfolio in kuvera

All your mutual funds linked to the email id will be shown in Kuvera now.

Step 2:  Getting 500 coins by adding random goals

Select Set a Goal.
Add random numbers in goals and keep on adding them until you have 500 coins.
You need 500 coins to enable smart switch.

Step 3: Go to Smart Switch

Go to Smart switch and enable smart switch.

kuvera smart switch to switch from regular to direct plans

Smart switch will show you all the fund units that can be switched without incurring exit load or short term capital gains taxes.

Switch MF investments from Regular Plan to Direct Plan Offline

You will not able to switch to direct plans if you have chosen ICICI Direct, Funds India, Birla – Myuniverse etc. or held mutual fund in demat form. You can have to contact respective individual mutual fund houses for changing.

Visit the mutual fund house, ask for common trascation - Switch form, add details and the name of the Direct fund, submit the form and wait till it get updated and you get an updated AS.

Check out A Beginners Guide On How To Invest In Mutual Funds Online.

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