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Credit Score

Best Ways to Increase Your CIBIL Score

A good CIBIL score is a significant factor in any loan or credit application process. A lower score may affect your chances of getting a loan approved. Therefore, it’s important to be aware of your options to learn how to improve your CIBIL score. The CIBIL score is generated based on a person’s history of timely credit repayment. When evaluating loan applications, banks and financial institutions take the CIBIL Score into account. You stand a strong chance of having your credit card and loan applications accepted if your score is 700 or above. A good CIBIL score also qualifies you for loans with lower interest rates. [B-01] What is a Good Credit Score? A credit score is a three-digit number ranging between 300 and 900 based on your credit history. TransUnion CIBIL, one of the biggest and most well-known credit bureaus in India, assigns credit ratings to companies and individuals that range from 300 to 900. Your credit score is ideal if it lies between 750-900. A good CIBIL score demonstrates fiscal discipline and practices, increasing the likelihood of getting a loan approved with flexible conditions. Banks and other financial organisations evaluate your creditworthiness and ability to repay the loan on time with the help of your CIBIL score. CIBIL ScoreRating300-500Poor550-650Average650-750Good750-900Excellent Top 10 Tips on How to Improve Your CIBIL Score First, you need to understand the different factors that determine your credit score including repayment history, outstanding balance, age of the credit portfolio and credit inquiry. Here are some of the best ways to improve your CIBIL score. If you follow these instructions, your CIBIL score will eventually improve, giving you a better chance to obtain credit from banks and NBFCs. 1. Timely credit repayments Lenders highly consider how consistently you pay your payments when they analyse your credit report and ask for your CIBIL score. This is because past payment behaviour is often regarded as an accurate indicator of future behaviour. Your CIBIL score can be significantly lowered by even one late or missed payment. Make sure you pay all of your expenses on time, including credit card bills and loan EMIs. Don’t forget any deadlines. 2. Use several credit cards Spending excessively on just one credit card will lower your credit score. It is a good idea to use several credit cards but monitor your spending. You can also establish a variety of credit types, including some long-term secured loans like mortgages or auto loans, some secured credit cards, and some short-term low-interest loans. By doing so, you raise your credit score and demonstrate to lenders that you have good money management skills. 3. Minimum credit utilisation ratio The question “how to increase CIBIL score” has simple answers. Avoid using your credit card limit to the maximum capacity if you want to increase your CIBIL score. Your credit score suffers as a result. Let’s say you use the limit entirely. If so, make sure the payment is made in full or in part to reduce the utilisation to 60–70%. However, keep your credit utilisation ratio at 30% or less of your card’s authorised credit limit. 4. Do not discard old credit cards Some people might believe that since the old credit card isn’t being used, it’s best to close it. However, it can impact your CIBIL scores. Also, lenders view this as evidence that you cannot manage many credit lines. Maintaining older credit cards is crucial, as is paying the bills in full every time. Even if you are not using them anymore, don’t close them. If you must, close the recent ones. Maintaining old credit cards allows you to have a solid credit history, improving your CIBIL score easily. 5. Get a new credit card only if necessary Consider whether you need to open more credit card accounts or not. Having several unused credit accounts will only result in additional charges and won’t help increase your CIBIL score. 6. Do not apply for credit frequently The lender examines your credit report each time you apply for a new credit line. Every draw count as a hard inquiry, which briefly lowers your CIBIL score. Avoid filing several loans or credit card applications frequently. By comparing offers, researching, and choosing the lender offering the best deal, you can minimise the number of hard queries you make. 7. Check your credit report regularly One of the most crucial ways to improve your credit score is to check your credit report. It will help you find any mistakes in your report. You must fix any inaccuracies you find in your credit report. If you find any errors, you can contest them. The authorities will check the information and fix your report as needed. Your CIBIL score is determined based on the data in the credit report. You must ensure that the credit report is free of any errors. 8. Avoid raising credit disputes If you have made late payments and must pay penalty interest, make the required payments as soon as possible. Do not raise issues over your credit disputes. Instead, report any fraudulent transactions or unauthorised charges, as they can affect your CIBIL score. 9. Pay your dues in full Your credit dues should be paid in full or at least more than the minimum amount due. Your chances of increasing the CIBIL score are lowered if you pay only the minimum amount. 10. Monitor your CIBIL Score regularly Sometimes, you may receive an inaccurate CIBIL score. You should calculate the CIBIL score and check it in advance. It is because you won’t be able to change the report at the last minute. It will help you prepare your credit or loan application more correctly. [B-02] Conclusion Keep in mind that improving your CIBIL score is a process that will take time; there is no quick fix. To improve your CIBIL score, you must be disciplined and informed about your options. Be cautious and steady, check your CIBIL scores regularly, and make necessary adjustments. A financial expert like Piramal Finance can help you with applying for a personal loan and managing your credit card scores swiftly. Also, visit our website to learn more about finance and investment opportunities.

08-11-2023

Know More

Best Performing Hybrid Mutual Funds To Invest In 2023

Are you looking for the best performing hybrid mutual funds to invest into in 2023? Then this article is for you! As the name implies, hybrid funds invest in a wide range of assets, most commonly in stocks and debt. Their main goal is to reduce concentration risk through diversification. If equity funds are a worry for you then hybrid funds are your best option. It lessens the risk while still allowing you to pursue the highest possible profits over time. You can put your money in the most satisfactory hybrid mutual funds or best-balanced funds. For your convenience, we have compiled a list of the best performing hybrid funds to put your money into in 2023. [B-01] IClCI Prudential Equity & Debt Fund In the last three years, the ICICI Prudential Equity & Debt Fund has had a CAGR of 29.2%, and CAGR of 14.6% since its inception. The hybrid sub-category of ICICI Prudential Mutual Funds includes the ICICI Prudential Equity & Debt Fund. Rs. 5,000 in a lump-sum or Rs 100 in a SIP is the minimum amount needed to invest in the ICICI Prudential Equity & Debt Fund. For additional investment, the minimum amount is Rs. 1,000. 2. ICICI Prudential Regular Savings Fund This is the second best hybrid mutual fund to invest in 2023. It has maintained a CAGR of 10.2% for the last three years, and has a CAGR of 9.7% till date. This scheme is Suitable for investors aiming to invest a major portion of their investment in debt related instruments and the remaining one in equity. It needs a minimum investment of Rs 5,000 And Rs. 500 for additional investment. Minimum SIP is Rs. 100. 3. HDFC Hybrid Debt Fund For the past three years, HDFC Hybrid Debt Fund has had a CAGR of 13% and a CAGR Of 10.1% since its inception. It has a minimum investment, minimum additional Investment and minimum SIP investment of Rs. 100. Furthermore, this fund is suitable for investors with a primary interest to invest in debt securities and money market instruments, and have moderate exposure to equities. HDFC Hybrid Mutual Funds are also suitable for the people seeking to generate long-term or capital appreciation. 4. UTI Hybrid Equity Fund In the last three years, UTI Hybrid Equity Fund has shown a consistent CAGR of 24.9% and a CAGR of 14.6% since its inception. It has a proven performance track record of over 25 years across the market cycles. Investors looking for long term wealth creation And the ones looking to diversify through portfolio mix of equity (for growth) and debt (for limiting downside), this fund is ideal for you. It has a minimum investment amount and minimum additional investment of Rs. 1000. The minimum SIP amount is Rs. 500. 5. HDFC Hybrid Equity Fund In the past three years, HDFC Hybrid Equity Fund has shown a CAGR of 24.8% and a CAGR of 15.3%. Its objective is to generate capital appreciation or income, predominantly of equity and equity related instruments. This scheme also invests in debt and money market instruments. Like HDFC Hybrid Debt Fund, this fund has a minimum Investment, minimum additional investment, and minimum SIP investment of Rs. 100. 6. Aditya Birla Sun Life Savings Fund The CAGR of Aditya Birla Sun Life Savings Fund is 13.8% over the last three years, and an all time CAGR of 9.3%. It has a minimum investment of Rs. 5,000 and a minimum of Rs. 1,000 for SIP. This fund is ideal for investors looking for reasonable returns with convenience of liquidity over the short term. 7. DSP Saving Fund DSP Saving Fund has had a CAGR of 9.3% for the last three years, and of 8.4% since its inception. It has a track record of over 23 years and invests in high-quality money market securities. It has a minimum lump-sum investment, additional investment, and SIP investment of Rs. 500. Who Should Invest in These Funds? If you are aiming to diversify your portfolio, or if you are a conservative investor, who is unwilling to take higher risk and are seeking to earn a decent return, then this fund is ideal for you. However, hybrid funds with an emphasis on equities can accommodate investors who need their money to grow rapidly. Before investing in hybrid mutual funds, it is vital to think about the following: Investing Aims: Each investor has their unique reasons for investing. You should first determine what you want to achieve financially before settling on a savings vehicle. Risk assessment: Investors’ comfortability with different risk levels varies. You may prefer a high-risk portfolio, while another may prefer a low-risk fund. Before putting money into the stock market, you should know your comfort level with risk. This fund’s historical returns: Always research the fund’s track record of performance and compare it to similar choices, before making a decision. Rate of spending: The term is shorthand for an asset management firm’s upkeep fee (AMC). This cost differs across different plans. Hence, before investing money in a hybrid fund, one must be aware of the fund’s expense ratio. Intentional and consistent strategy: There are no middlemen involved in direct plans, as they are provided directly by the fund firms. However, conventional plans require individuals to invest through intermediaries such as brokers or distributors. When compared to standard mutual fund programmes, the fee ratio is lower in the former. Because of this, their NAV is higher than that of standard plans. [B-02] Conclusion The goal of a hybrid mutual fund is to provide investors with the advantages of both equity and fixed-income markets. The plan’s objective is to provide short-term stability and consistent income via debt while providing long-term capital appreciation through equity. The management of a mutual fund keeps the portfolio properly diversified at all times, taking into account the fund’s stated purpose and the current and future state of the market.If you’re new to both mutual funds and investing, Piramal Finance offers accurate information on banking and financial services and helps you to learn more by explaining the basics of hybrid mutual funds. Make sure your financial knowledge is up to date about essential services and products, such as personal loans an

08-11-2023

Mutual Funds

How can I start my SIP investment with INR 1000 initially?

Mutual funds are one of the most preferred investing instruments. Many people start their investment journey with mutual funds before directly investing in the stock market. It is easy and convenient for people who have little to no knowledge of investing but want to start anyway. You may already know how a mutual fund works — a fund house pools your money and invests it in a selection of stocks. The profit made from the investment is then distributed among all investors. You can invest in a mutual fund through a one-time investment or a SIP investment. However, SIP is a more common and preferred way of investing. [B-01] What is SIP? SIP is a Systematic Investment Plan. It allows you to invest a fixed amount on a fixed date in a mutual fund scheme of your choice. It is fully automated, which means you do not have to manually invest every time. Participating in SIP investment helps you build a habit of saving and investing at the same time. How to start your SIP? Starting a SIP is very simple and there are a few ways of doing it. You can visit the website of any fund house of your choice and register for a SIP online. If online registration is a hassle for you, you can go to the nearest office of the fund house and register offline. You may also go to a Mutual Fund distributor for the same. After choosing a medium, you need to complete your KYC, either online, offline, or via an agency. To complete your KYC, you must have identity proof, address proof, a copy of your passport-size photograph, and a cancelled cheque or bank statement. After completing your KYC details, you can pick any mutual fund scheme from the fund house to invest in. SIP investment is very affordable, flexible, and convenient. You can start your SIP with as low as INR 1000 (some Mutual Fund Schemes also allow you to begin your investment with INR 500). You can fix the date, frequency, and duration of your investment as per your liking. The SIP amount gets deducted directly from your bank account, therefore, freeing you from the burden of investing on time. Eventually, the size of your mutual fund portfolio will increase with this routine investment habit and result in wealth creation. In case you are unable to continue with your investments or you are not happy with your fund, you can cancel or switch to another fund anytime without any extra charges. How to choose the best SIP plans? As a new investor, it is always wise for you to start with a scheme that has a good mix of equity and debt exposure. This type of hybrid fund is great for beginners to understand what to expect in terms of returns and risks. To find the best SIP to invest in, make sure you follow these simple tips: Enquire about the fund house of your choice about their plans and compare their performance with similar funds. You can even enquire at your bank as most banks have their mutual fund schemes. Choose a mutual fund scheme that is at least 5 years old. You can easily track the overall performance through the ups and downs of the share market with that data. Any fund house that has a strong reputable background and is easily recognisable can be trusted with your investments. CRISIL-rated funds that hold a good ranking of 1-3 are the ones you should look out for. Reach out to certified experts in the field for advice and information. Always remember the wise words of Warren Buffet, “Never invest in a business you don’t understand”. So, learn before you invest. An expert can help you find the best SIP to invest in based on the assessment of your needs and risk appetite. These tips may help you find the best SIP plans that will suit your requirements, risk appetite, duration, and investment amount. Things to remember If you are planning to ride the SIP bus, it is always better to have a destination in mind. It means that you must assign a goal to your investments. It can be as short-term as saving for a trip with your friends or as long-term as planning your retirement. Why? Because it will keep you motivated and on track. To get the best out of your SIP investment you should keep these three things in mind— Discipline, Patience, and Time. There is no doubt that a SIP investment makes you a disciplined investor. You shouldn’t stop your SIP until your goal is reached. Along with this, you may want to increase your SIP investment amount by a minimum of 10% to ensure you achieve your goals sooner than you expect. It is all a game of patience. Checking your investment returns too frequently may demotivate you since it all depends on the movement of the share market. As we all know, the share market is unpredictable and volatile. So, you may not see a lot of difference in the short term. When you sow a seed, you nurture it and wait for it to grow into a plant and then into a tree to bear you fruit. It’s the same with your investments. “Good things take time” and it applies well in the context of your investments too. You cannot expect good returns overnight even if you invest in the best SIP plans available. To benefit from compound interest and generate good returns you must stay invested for a minimum of 5-10 years. So, give your investments time to grow and yield good returns in the long run. [B-02] Concluding thoughts SIP is a way to go for anyone who is starting their investment journey. INR 1000 is ideally a good amount to invest, initially. You can increase or decrease the investment amount according to your comfort. Investing is all about looking at the bigger picture; therefore, you must stick to your investment game to reap the rewards later. If there’s anything you need to take away from this article, it’s the 3 magical words— discipline, patience, and time. Consider subscribing to Piramal Finance for more such informative blogs. Looking for more banking information? Visit Piramal Finance for more informational blogs. Check out our website for other financial services like housing or MSME loans, personal loans, and more!

08-11-2023

Mutual Funds

How Do I Start An SIP Investment In A Simple Way?

You must start saving as soon as possible for a secure financial future. However, merely saving is insufficient, as you need to invest your money to create wealth. Mutual funds investment plans have emerged as popular options for many investors looking to grow their money. There are two ways to invest in mutual funds: lumpsum investment or systematic investment plan (SIP). SIP has been a well-known option with many mutual fund investors. Before you start a SIP, it is useful to understand its meaning, importance, benefits, and implications. This will allow you to plan your SIPs in a better way. Read on to learn more about SIP mutual fund investments. [B-01] What is SIP? A systematic investment plan or SIP is an investment plan in which you invest a fixed amount monthly in a mutual fund. Most Mutual funds plans offer this option for investors. This approach helps create discipline in the investors as they must deposit a fixed amount monthly in the fund. You can choose SIP for as many mutual funds in your portfolio as you like. SIP is a safer option than a lump sum investment as there is no need to time the market. As you are investing in mutual funds investment plans every month, the risk in investing is also taken care of. Over some time, you reduce the risk factors and can get stable returns on investments. Benefits of SIP in Mutual Funds Plans SIPs have become a good option for all investors for mutual funds investment plans. It does not matter if you are a new or an old investor; SIP works well for all. Some of the notable benefits of SIP in mutual funds are as follows: – Lower risk: – SIP allows you to reduce the risks in investments. As you invest a fixed sum every month, then over a period, the amount averages out. Hence, you do not need to worry about any ups and downs in the stock market. Life goals: – You can plan your crucial life goals with SIP, such as marriage, house, or car. You can start SIPs for each goal, and then, over time, you will be able to create a corpus to meet that goal. Easy and simple: – With SIPs, you do not need to worry about depositing the amount every month. Set the option in your mutual funds plans, andthe amount will be added monthly. There is no need for you to monitor it every day. Compound income: – In SIP, you invest monthly but do not take out the money. So, the returns you earn on the SIP are re-invested over a period. This helps your returns earn more income leading to the benefits of compounding. Flexible: – If you fall short of money any month, you can skip the SIP for that month. Then from the next month, you can resume the SIP as usual. There will not be any effect on your financial future. Starting SIP in Mutual Funds Investment Plans You can now start your SIP in mutual funds plans using the internet. Yes, there is no need to go to any office. You only need to provide some documents and personal details to start a SIP. Just follow the simple steps mentioned here and start your SIP mutual fund: – Gather all documents: – First, you must collect all the necessary documents. It will be useful if you can scan and save these docs on your computer. Some critical documents are your PAN Card, Aadhar Card, photographs, cancelled cheque or bank statement, etc. If any of these docs are not ready, prepare them as soon as possible. Complete eKYC: – Afterthe docs are ready, you must complete the eKYC process. This can be completed through any AMC website or RTA website. As the KYC is completed online, it is known as eKYC. You will need to attend a video call for in-person verification to confirm the details. You will also need to complete the FATCA form and provide the details as required. The documents you need to provide are PAN, Aadhar, mobile number, name, date of birth, and passport-size photo. Complete Registration: – You must complete the online registration process on the asset management company’s website (AMC). When you click on the ‘Register Now’ option, they will ask for personal and bank details. Afterward, a new user ID and password will be created. Select the mutual fund and investment amount: – Now, you will be asked to select the mutual fund plans from the available list. You will also need to specify the SIP amount you want to invest in. You can use a SIP calculator to help you decide the amount you want to invest. Finalise the payment mode: – You need to select the SIP frequency. Most investors opt for a monthly SIP. You will also need to select the date for the debit from your bank account. You can also make your first SIP at this step. Submit: – Now you need to submit the form. After this, you will receive an email and SMS from AMC. You will receive reminders from the fund house a few days before the SIP is due every month. [B-02] Conclusion SIP is one of the most well-known options used by mutual fund investors. While there is an option to decide the frequency of SIP, most investors prefer monthly SIPs. This allows the investors to create a sizeable corpus for their future needs. Start your SIPs early, as it will give your money enough time to grow. Before selecting mutual funds investment plans, you must take some time and do in-depth research. A financial expert like Piramal Finance offers you accurate and authentic information on mutual fund investment plans and personal loan requirements if any. Visit us now!

08-11-2023

Know More

Top 5 ELSS Funds to Invest in 2023

What are ELSS funds? ELSS funds or Equity Linked Savings Scheme funds, are schemes that invest mainly into equity. They are also considered to be a type of open ended mutual funds. ELSS funds come with the dual benefit of capital appreciation and tax saving. Under Section 80C of Income Tax Act, 1961, you can get a tax exemption of up to Rs. 1,50,000 from the annual taxable income, which is the highest in India. ELSS Funds have a minimum lock-in period of 3 years, the shortest amongst all tax-saving investment options. Through ELSS funds you can invest in a diversified portfolio of equity stocks. ELSS funds also offer the benefit of liquidity as they can be redeemed after the lock-in period. One thing to note, the income you earn under this scheme at the end of the 3-year tenure is considered as LTCG or Long Term Capital Gain, which is taxed at 10% in case the amount is above Rs. 1,00,000. In short, ELSS funds are a wise choice of investment as they are a tax-saving option that can generate high returns. [B-01] Features of ELSS funds ELSS mutual funds come packed with a lot of features. Let’s take a look at them. ELSS funds have the shortest lock-in period of just 3 years. ELSS funds have no maximum investment amount and the minimum amount depends from fund to fund. You can get tax exemption of up to Rs. 1,50,000 under Section 80C of Income Tax Act, 1961. ELSS funds are the only investment scheme that provide tax-savings with a chance to enjoy returns. Though the portfolio of ELSS funds majorly consists of equities, you can also have some exposure to field-income assets. They come with twin benefits, i.e. tax saving and wealth building. How do ELSS mutual funds function? With ELSS funds, you can invest in a predetermined percentage of listed company equities. So, it’s best to keep two things in mind while selecting the companies – market capitalization (Large Caps, Mid-Caps, Small Caps) and industry sectors. With these funds, wealth appreciation can be maximized over a period of time. The fund manager selects equities by researching the market thoroughly to ensure the best risk-adjusted portfolio returns. To save more tax, it is advisable to gain knowledge of tax-saving strategies. Things to Keep in Mind Before Investing in ELSS Investing in an ELSS mutual fund is a profitable investment, but there are certain things to keep in mind: Lock-in Period: ELSS mutual funds have the shortest lock-in period of 3 years, before which, you cannot withdraw the amount. Also, for better returns, invest for 5 or 7 years minimum. Portfolio Composition: Always consider portfolio composition while investing in ELSS funds. For mid-caps, the risk is higher than large-caps. Consistency of Returns: For getting good returns always evaluate its past fund performance against benchmark and competitor metrics. An investment of more than 5 years offers better returns. The Risk Level: ELSS funds involve different risk factors. So a proper research will help in identifying the low risk funds. Pros of ELSS Mutual Funds There are some advantages of ELSS funds. Let’s take a look at them. Tax Savings: First and foremost advantage of this type of fund is that it offers tax savings on your investment. You can get an exemption of up to Rs. 1,50,000 each year under Section 80C of Income Tax Act, 1961. Shortest Lock-in Period: ELSS funds come with the shortest lock-in period of only 3 years. This not only encourages others to start investing at an early age, but it also makes it stand out from other investment schemes. Lower Tax on Gains: In comparison to short-term capital gains which are taxed at 15%, ELSS funds have a lower tax percentage of only 10%, provided the gains are above Rs. 1,00,000. Higher Returns: Since ELSS funds are connected to the equity markets, the returns are higher than any basic savings plan can offer. They also provide better returns than other tax-savings schemes. No Need to Redeem After 3 Years: Another advantage of an ELSS fund is that you don’t have to redeem it after the passing of 3 years. You can continue the investment even after that. Cons of Investing in ELSS Funds ELSS Funds come with many advantages, but there are a couple of cons associated with it too. Let’s take a look at them. A Cap on Tax Exemption: The first disadvantage of an ELSS fund is that the tax exemption is only applicable up to Rs. 1,50,000, irrespective of the amount of the investment you made. For example, if you made an investment of Rs. 10,00,000 over a fiscal year, the exemption will only be worth Rs. 1,50,000. Limited Tax Benefits: As per Section 80C, the tax exemption in ELSS funds include extra items like PPF and life insurance amongst others. That means, if the exemption already amounts to Rs. 1,50,000, you won’t get an exemption on your ELSS funds. Best ELSS Funds of 2023 The best ELSS funds to invest in 2023 are: Quant Tax Plan Fund Parag Parikh Tax Saver Fund Mirae Asset Tax Saver Fund Canara Robeco Equity Tax Saver Fund Bandhan Tax Advantage (ELSS) Fund [B-02] Conclusion ELSS funds offer tax benefits, better returns in comparison to other investment options like Equity, FMP and FDs, making it a preferred investing option for majority of people. They offer profitable options with better returns and trade-offs. It is a wise decision to invest in them, but before you do, make sure you research thoroughly, so that you can pick out the best fund.

08-11-2023

Top 10

Top 10 Stocks to Buy in 2023

The Indian economy is coming up as the fastest growing in the post-COVID era. Experts predict that our GDP will reach $5 trillion by 2026-27. This will make us the world’s third-largest economy. As per those reports, this year will turn out to be great for the Indian stock market. In this article, you will find out the NIFTY 50 Top 10 stocks. But before that, let’s understand a few basics. [B-01] What is a stock exchange? A stock exchange is a stock or equity trading platform. Companies register their stocks on a particular stock exchange. You can then buy or sell stocks on that stock exchange. You can also exchange other financial instruments like derivatives, bonds, etc. In India, there are two major stock exchanges NSE and BSE. These stock markets have separate ‘benchmark’ indexes. A benchmark index is a group of the biggest companies on the exchange. What are the National Stock Exchange (NSE) and NIFTY 50? Located in Mumbai, the NSE is the leading financial market in India. It started in 1992 and is now the 4th biggest exchange in terms of the trading volume. Currently, there are over 1600 stocks listed on NSE. Between 1995-1996, NSE launched its benchmark index known as NIFTY 50. It tracks the performance of the 50 largest companies on the NSE. You can buy and sell as a future and options (F&O) derivative product. What are the Bombay Stock Exchange (BSE) and SENSEX? The BSE is Asia’s oldest stock exchange which was incorporated in 1875. There are about 5749 companies listed on the BSE. SENSEX is the benchmark index of BSE. It includes the 30 top-performing companies on the BSE. Like NIFTY 50, SENSEX is also a free-float F&O product. The BSE incorporated it in 1986. Top Gainers in NSE and BSE The official NSE website shows a list of the Top Gainers in NSE. The Top Gainer Today is a dynamic list that’s updated every day. It shows the stocks which are gaining the most on that day. The BSE official website shows Today’s Top Gainers BSE list. Other Securities and Exchange Board of India (SEBI) certified platforms also show these lists. This list is useful for intraday trading. NIFTY 50 Top 10 stocks in 2023 So far in 2023, it is predicted that the current correction of NIFTY around 10% from its all-time highs. It has created a good opportunity for investors to buy stocks for investors to accumulate stocks for the long-term gains. The NIFTY Midcap 100 advanced 0.66% and NIFTY Smallcap 100 advanced 0.66%. The government is making efforts to increase economic recovery after COVID. This bull run in the market might last a few more years. IT stocks may lead the gain index in 2023. Capital goods, real estate, and the automobile industry will also gain. So now, let us look at the projected NIFTY 50 Top 10 stocks in 2023. Reliance Industries Ltd. (NSE: RELIANCE, BSE: 500325) Reliance Industries Ltd. is a Fortune 500 company and the largest private sector corporation in India. It reported a 19% jump in its march quarter net profit to Rs. 19,299 crore, around Rs. 3,000 more than the previous year. The current price is Rs. 2,496.70 per share. It has the potential to gain up to 20% in 2023. Tata Consultancy Services Ltd. (NSE: TCS, BSE: 532540) Tata Consultancy Services or TCS is one of the leading IT services, consulting and business solutions organisations. It has partnered with many of the world’s largest businesses for over 50 years. The current share price is Rs. 3,283.00 per share. Over the half decade, it is reporting a gain of 19% per year. HDFC Bank Ltd. (NSE: HDFCBANK, BSE: 500180) It is the largest private sector bank in India. It showed a 20% compound annual growth rate (CAGR) in the last 5 years. The current price is Rs. 1,648 per share. Because of the high predicted price, it is a great long-term option. Infosys (NSE: INFY, BSE: 500209) In 2023, Infosys has been recognized as one of the world’s most ethical company for the third consecutive year by Ethispehre. As of 10th May 2023, Infosys’ share market price is Rs. 1,263.25 per share. ICICI Bank (NSE: ICICIBANK, BSE: 532174) ICICI is an India-based international bank. It has a presence in 17 countries. For the quarter of March 2023, its profit ended at 30%. The current stock price is Rs. 933.50 per share, and the quarterly profits are around Rs. 8,900 to Rs. 9,000 crore. Hindustan Unilever Limited (NSE: HINDUNILVR, BSE: 500696) The company has claimed a turnover growth of 11% in the FY2023. Furthermore, its current share price is Rs. 2,530.45 per share. State Bank of India (NSE: SBIN, BSE: 500112) SBI is the biggest centralised bank in India. In the first quarter of FY2023 its year-on-year growth rate was 27.1%, and the net interest income was Rs. 39,657. At the present it’s share price rests at 571.35 per share. Bharti Airtel (NSE: BHARTIARTL, BSE: 532454) Airtel is the first company in India to provide a 5G network. Today, it provides this service across many cities in the country. Its Average Revenue per User (ARPU) and 4G user segment growth are also significant. The current price is around Rs 793.25 per share. It has an estimated growth rate of 11%. Housing Development Finance Corporation Ltd. (NSE: HDFC, BSE: 500010) It is one of the leading housing finance companies in India which offers a wide range of home loans for new and resale properties. So far, it has assisted more than 38 lakh customers in owning a home. Its current price is Rs. 2,748.85 per share and the net profit margin is 17.07%. Adani Enterprises Ltd. (NSE: ADANIENT, BSE: 512599) It is an Indian multinational and publicly listed holding company and is a part of Adani Group. In this year, it has gained a net year-on-year profit of Rs. 2,472.94 crore. It’s revenue surged over 97% to Rs. 1.37 crore. Its current price stands at Rs. 1,895.35 per share. [B-02] Conclusion The stock options included in this article are based on industry research. Before investing in stocks, you must have detailed knowledge about the process. Piramal Finance offers you accurate information on banking and financial services. Make sure your financial knowledge is up to date on essential services and products, such as personal loans and stock trades, by reading the informative blogs on their website.

08-11-2023

Mutual Funds

How to Select the best Large-Cap Mutual Funds?

Large-cap mutual funds buy shares in companies with a lot of money on the market. It’s well known that these mutual funds give stable returns. Large-cap funds put their money into businesses that are the best in their field. [B-01] About large-cap mutual funds: There are many mutual funds to choose from on the market. Large-cap funds put more money into companies with big market values. The rules may be different for companies with a lot of money. Still, the most valuable thing on the market is people. People think large, important funds will give consistent and steady returns over time. Yet, investors may be better off with riskier small- and medium-cap funds. Benefits of Investing in Large-Cap Funds Financial Security: These firms are solid due to robust business strategies. Thus, the growth and sales are steady. As a result, a significant endeavour is unlikely to fail due to market conditions. Furthermore, many corporations provide dividends, contributing to investors’ wealth. Liquidity: Another benefit is that they have enough cash. So, it is easy to sell your investment and not lose money. This is especially important for strains that aren’t stable. Resist the recession: Large-cap mutual funds do well when the market is going up, and they can handle market volatility. It’s a great way to get through a downturn without hurting the future of your business. Dividend Distributions: Investing in large-cap funds makes you more likely to keep getting dividends. Most of the time, you shouldn’t expect the price of large-cap funds to go up. Companies have already made a name for themselves in the market. Because of this, stock prices may stay the same, and investors may not make much or any money. Large-cap firms pay dividends to shareholders whether the stock price goes up or down. The Demerits of Large-Cap Funds Large-cap funds are equities, so they have the same risks as others. Here are some of the risks that come with large-cap mutual funds: Market Danger: Market risk is how likely it is that the markets will fail. Several economic and political events can cause changes in the market. Interest Rate Risk: Interest rates change based on how much credit is available among issuers and how much demand there is in the market. If interest rates go up, the security price may go in the opposite direction. Risk of Liquidity: The liquidity risk is that fund managers won’t be able to sell their holdings for a profit because they won’t be able to find enough buyers. Concentration Risk: When money is invested in only one industry, this is called “concentration risk.” There’s no doubt that when you put all of your money into one area and it does well, you make a lot of money. There are pros and cons to everything. But as we can see, the pros of large-cap mutual funds are more important than the cons. How Do You Select the Best Large-Cap Mutual Funds? When investments produce solid returns, these are enjoyable. This can only be done if you choose the right fund. You can choose the best large-cap mutual funds based on the following factors: Experience of the Fund Manager: Experience doesn’t always lead to good results. Even if a manager has never invested before, they will know how to do it better than someone who has never done it before. So, when choosing a large-cap mutual fund, you should look at the fund manager’s track record. This makes sure that the investment plan has a good chance of working. Exit Load: If you take money out of most large-cap mutual funds in the first year, you must pay an exit cost of 1%. Since large-cap mutual funds are investments for the long term, this wouldn’t change much. But in an emergency, you can leave before the year is up. So, before you invest, you should think about the fund’s exit load. Investment Goal: The first stage in the investing process is to identify and define goals. Goals need to be broken up into periods, and the proper funding needs to be chosen for each goal. Large-cap funds are great for investing over the long term. Because of this, large-cap funds are best for steady returns. Taxation: How large-cap funds are taxed depends on how long the investment is held. Gains are taxed at 15% for less than one year and 10% for more than one year (above INR 1,00,000). Aside from that, investors must pay a stock transaction tax of 0.001% every time they sell units in the fund. Starting on April 1, 2020, there will no longer be a tax on dividend payouts. The investor’s marginal tax rate will now be applied to the dividend. On dividends over INR 5,000, the investment houses would take out a TDS of 10%. The expense-to-income ratio is the fee that the bank charges for keeping the fund running. Consider investing in mutual funds with lower expense ratios, since higher expense ratios reduce returns. Who Should Consider Investing in Large-Cap Funds? As already said, large-cap funds are good for stock investors who want to be careful. People who want to diversify their portfolios should buy large-cap funds. Diversifying a portfolio means having stocks from big companies in many different fields. If the industry doesn’t meet its goals, the other parts may be able to take the hit. Let’s say you don’t want to take a big risk and are fine with getting average returns. Then you should think about putting money into these funds. These funds can help people who have never bought stocks before get started. It will show what large-cap mutual funds can do. [B-02] Conclusion In the end, every portfolio should have large-cap mutual funds. They give a much-needed pick-me-up. Why wait any longer to put money into learning all you can about large-cap funds? But before you start, think about the things we talked about above. Choose a fund that fits your financial goals, how you feel about taking risks, or how long you want to invest. Still, if you want good advice on investing, a financial expert like Piramal Finance offers you accurate and authentic information on mutual funds, personal loans, and banking procedures. Visit us now!

08-11-2023

Bonds

How To Buy Gold Bonds And What Are The Advantages?

Sovereign Gold Bonds have become an investment choice for private investors. Even the Indian government consider Sovereign Gold Bonds or SGB a great investment (since late 2015). Gold Bond’s purpose is to let investors partake in the change of gold prices without worrying about the complexities of purchasing and selling actual gold. Plus, other gold investments do not have similar benefits as sovereign gold bonds. Keeping gold in the form of sovereign gold bonds (SGB) is better than having gold in the form of real gold. When transformed into jewellery, it results in a loss of 15% and 20% because of manufacturing. Storing gold in the form of coins or gold bars is also a smart investment. However, there are costs for storing, insuring, and maintaining actual gold. While you can store SGB in your DEMAT account or even as physical certificates. In SGBs, the problems of gold maintenance and translation loss are substantially eliminated. [B-01] What are Gold Bonds? The value of a sovereign gold bond is in kilograms of gold. Multiples of one gram are available (gm). The minimal investment is thus 1 gram. Four kilograms of gold per investor every fiscal year is the maximum amount of gold you buy with gold bonds. You can select a nominee. However, do not forget to change the nominee information during investing. How to Buy Sovereign Gold Bonds? When the government issues sovereign gold bonds in tranches, they are accessible for purchase. Buy SGBs from nationalised banks, post offices, stock holding corporations of India, scheduled private banks, or licensed stock market traders. The application form is also available on the Reserve Bank of India website. You may submit an online application through the websites of the above-scheduled commercial banks. For investors applying online and paying using a digital method, the issue price of the gold bonds will be INR 4081 per gram, less than the nominal value. For the purchase of SGBs, you need a PAN number. Step-by-Step Guide to Buy Gold Bonds Step 1 – Open your net banking account and sign in Enter the credentials to access the online banking services. If someone doesn’t have a login ID, they must create one. Step 2 – Select “e-Service” from the main menu. Then choose “Sovereign Gold Bond.” Step 3 – New users should select “Register,” and then review the “Terms and Conditions” established by the Reserve Bank of India. Once all terms and conditions are read and understood, select “continue.” Step 4 – Along with the information of the registered user from NSDL or CDSL, which holds the investor’s DEMAT account, add the necessary details for the SGB scheme. Step 5 – Once you have filled out the registration form, click submit. Step 6 – After registration is completed, select the purchase option from the header tab. Those who have already registered can ignore the registration procedure and move directly to the header tab’s “Purchase” option. Step 7 – Add subscription quantity and nominee details. Step 8 – Enter the OTP (sent to your phone) to complete the process. Eligibility Foreign Exchange Management Act of 1999 states to invest in SGB, a person must be an Indian resident. Individuals, HUFs, trusts, colleges, and nonprofit organizations are among the permitted investors. If someone has purchased SGBs as a resident Indian and afterwards changed their status to non-resident India, they can keep the bonds until redemption or maturity. Minors can also apply for SGBs, as long as their guardian makes the application on their behalf. Joint holding of SGB is also permitted. Advantages to Buy Sovereign Gold Bonds Safety If we compare sovereign gold bonds with real gold, then there are no major risks associated with sovereign gold bonds. However, the only thing that one can worry about is market collapse. In SGB, there are no exorbitant design or waste fees. SGBs generate interest, as opposed to real gold, which is a fruitless investment. Tradability Within a certain date, gold sovereign bonds are tradeable on stock markets. You may, for instance, exchange them on the Bombay Stock Exchange or the National Stock Exchange after five years of investing. Tax Benefit The tax advantage of the Sovereign Gold Bond plan is very significant. There is no TDS on the interest you get from your SGB investment. You can also exchange the bond before maturity to obtain the indexation advantage. Also, the capital gains tax will be waived if you redeem the bond after maturity. But, the interest is completely taxed according to your tax bracket. Liquidity Factor Investors are aware that liquidity is essential to the secondary market’s success. The Sovereign Gold Bond series is not available for random purchase. To meet investor demand, the series has to have a high liquidity quotient. Interest Interest is one of the most significant advantages of the Sovereign Gold Bond system. On the SGB investment, the government provides a fixed yearly interest rate. Investors will receive the interest regardless of whether the price of gold grows or lowers. Collateral Some banks may accept SGB as security or collateral for loans that are committed in Demat form. Therefore, after fixing the loan-to-value (LTV) ratio to the value of gold, they will regard it as a gold loan. Who Can Invest In Sovereign Gold Bonds? You can diversify your portfolio by holding 5% to 10% or more gold. It is ideal for those with a low appetite for risk because it is a low-risk investment. SGBs are quite inexpensive to buy or sell compared to actual gold. In comparison to the cost of buying or selling actual gold, the SGB is also inexpensive. SGBs are another option for those who don’t want to deal with the difficulties of keeping actual gold. This is because it is simple to keep this in DEMAT form; since they are in electronic form, no one can take them. [B-02] Conclusion All buyers of gold should purchase gold bonds. This is a fantastic, credit-risk-free investing option. There aren’t any yearly or making costs associated. Additionally, it is taxed like actual gold and has indexation benefits. If you need help with finances, you can always take the help of experts such as Piramal Finance to help you find the best solutions to finance your purchase, such as personal loans or credit cards. Visit our website to know more!

08-11-2023

Bonds

Types Of Bonds In India That Investors Can Invest In

Bonds allow investors to lend money to a company or government for a specific time and get interest payments regularly. The issuer will pay the investor when the bond’s due date comes. Bonds are sometimes called “fixed income” because they give investors regular payments for as long as they keep their money. Businesses sell bonds to raise money for their operations, new ventures, and purchases. Governments often sell bonds to help balance their budgets and make up for lost tax revenue. A person who buys bonds is a debt holder of the company that made the bonds. Bonds are an important part of a well-balanced portfolio because many types of bonds, especially investment-grade bonds, are safer than stocks. Bonds are a great way to keep your money safe for retirement and get a steady income without worrying about the market’s ups and downs. [B-01] What are Bonds? Investors can borrow money by buying bonds that work the same as promissory notes. Bonds are debt security given to investors by people who need short-term loans. You give the issuer money when you buy a bond from a government, city, or company. Before looking at different types of bonds, investors should understand some of the most important things about bonds. Maturity: It is the date by which a bond issuer must pay back the principal and interest to the investors. Bonds can be paid off after a few years, a few decades, or never. Face Value: Face value is the amount of money you will get back when your bond matures. A bond’s face value determines how much interest it will pay. The par value of most bonds is Rs.1,000. Coupon – The fixed amount of interest that the bond issuer pays to those who own bonds. If a Rs.1,000 bond has a 3% payment, the issuer will pay back investors Rs.30 per year until the bond matures (3% of Rs.1,000 par value = Rs.30 per year). Bond Yield: The rate of return on a bond over a year is called its yield. The work of a bond is not the same as its coupon, which is not tied to the bond’s price on the secondary market. Price: Most bonds, if not all, are traded on secondary markets after they are first sold. On the market, there are prices to buy and sell bonds. The asking price is the least amount a seller will take, while the bid price is the most a buyer is willing to pay for a bond. Risk Duration: This is the amount a bond could lose in value if interest rates change. Bonds tend to lose one percentage point of their value when interest rates go up by one percentage point. If a bond has a longer term, its price is more affected by changes in interest rates. Types of Bonds There are many types of Bonds in India: Government Bonds, Sovereign Gold, Corporate, Convertible, RBI, etc. Government Bonds Government securities are bonds issued by the federal or state governments of India. Government securities (G-Sec) or Indian Government bonds have terms ranging from five to forty years. The Government of India has put out these Government bonds so that people in India can save money in the hopes of making money with less risk. Sovereign Gold Bonds If you want to invest in gold but don’t want to hold actual gold, you can buy the Sovereign Gold bond, a gold bond issued by the central government. The interest income from this Sovereign Gold bond is not taxed. It is a very safe bond because the government issued it. Corporate Bonds Bonds are a way for companies to get money from investors for a set amount of time in exchange for a fixed interest rate for the bond’s term. Corporate Bonds are bonds that businesses usually give to investors to get money to start a new business or expand into new markets. Instead of getting a loan from the bank, the company is turning to investors willing to put up their own money in exchange for a fixed return over a set period. At the end of the term, investors will get their money back plus the annual interest rate on corporate bonds. Fixed-rate bonds are a good choice if you want a steady return on your money. Convertible Bonds Convertible Bonds are a type of bond that is like both debt and equity, but they don’t have both of those things at the same time. Bondholders can become shareholders of the company and get all the benefits of owning stock by having their bonds turned into a set number of shares of stock. Convertible bonds give investors access to both the debt and stock markets. RBI Bonds The interest rates on RBI Bonds, also called variable rate saving bonds 2020 (FRSB), change over the seven-year term of the bond. In other words, you won’t get the interest rate at the end of the term. Instead, you’ll get it every six months starting January 1, 2021. Capital Gain Bond Long-term capital gain is the profit you make when you sell something you’ve owned for more than two years (Land or Building). You can get a tax break if you put the money from the sale into certain bonds within six months. 54EC bonds also called “capital gains bonds,” are one of the best ways to save on long-term capital gain tax. [B-02] Conclusion People should invest in becoming self-sufficient and financially stable. Bonds are a great way for investors to put their money to work in India because there are so many various types of Bonds available. Before you buy a Bond, you should do a lot of research. Indian government bonds are the safest way to invest because the Sovereign guarantees them. People who want to keep their risk to a minimum should buy these kinds of securities. Also, it’s a great long-term investment for people who don’t know enough about the stock market or have enough experience to invest in stock market instruments. Looking for more banking information? Visit Piramal Finance. Check out our website for other financial services like housing or MSME loans, personal loans, etc.

08-11-2023