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Top 10 Initial Public Offerings (IPO) Investing Strategy For 2022

An initial public offering (IPO) is the process of selling shares of a private firm to the public for the first time in a new stock issuance. It allows a corporation to raise equity money from the general public. An IPO’s primary goal is to raise capital. Companies offer investors a percentage of their stock shares. It helps to raise money to support business expansion, debt repayment, and general corporate purposes. [B-01] IPO has been in the news for ages, and people have been making fortune with IPO investments. But it is not the same for everyone. Moreover, it is essential to understand that IPO investment has several challenges. Even the latest IPO news shows several instances where different firms performed well on the first day of their IPO, but were a massive fiasco later on. And many suffered from major losses that were hard to recover from. Thus, when it comes to investing in IPOs, you need to have the right strategy that will reduce your chances of making bad decisions and bearing losses. Based on this thought, we have created this article that will help you to formulate the right investment strategy for IPOs in 2022. So, without any further ado, let’s get started! Top IPO Investment Strategies for 2022 Conduct Thorough Research It is difficult to obtain information about firms that are about to go public. Look online for information about the firm and its competitors, finance, previous press releases, and the overall health of the industry. Even if reliable information is limited, understanding everything you can about the firm is a critical step in making a prudent purchase. Conduct a thorough web search for information about the firm and its competitors, including historical press releases and finance, as well as the overall health of the sector. Understand How You Spend Money Law requires every firm considering an IPO to outline its plans for using the funds raised. Their progress is also seen in how they spend their money. When it comes to investment, it is important for individuals to have a clear understanding of how the companies are using their funds. If they are only using it to waive off loans, then it is certainly a bad investment. However, if the investment is going for a good cause, and helping the company to grow then it is a good investment. Find Where Your Funds Are Invested You may find in-depth details about how your money is used in a draft red herring prospectus that the firm submitted with SEBI. This will help you decide whether or not you should invest in the initial public offerings. For example, if a firm only raises money to pay off loans or has other obligations, then it is not a safe investment. Though if a firm raises money to support research, then it accounts for a promising IPO investment. Check Out For Valuation Because technical analysis is required, this is one of the most essential and time-consuming aspects of picking an IPO. Before deciding on the ultimate offer price, the company’s investment banker and underwriters evaluate the management quality and profitability. Thus, compare the IPO’s valuation to that of a publicly traded competitor. Make an Investment in Cut-off Prices To enhance your chances of getting an IPO granted to you, you should apply at the cut-off price as opposed to a bid price. For instance, if a firm declares that the price range for their initial public offering is between Rs. 10 and Rs. 20, you might decide to bid at the ‘cut-off’ price rather than selecting a number within the range. Know the Lock-in Period The lock-up term is a legally enforceable contract between the underwriters and business insiders. It prevents investors from selling any IPO shares for a defined period (three to 24 months). Traders follow this practice to wait until insiders are free to sell their shares. So, if you are planning to invest in IPO let the market run its course before making a move. Plan Exit Strategy Traders have followed this method for many years. This is especially true for IPOs that occur at the end of a bull market. This may lead you to feel that the ideal option is to sell all of your IPO shares on the day it is listed. This method is especially appealing to traders who wish to earn quickly on the first day of trading. Shares of good firms often list at high values and subsequently fall over a few months. So, if you are a short-term investor looking to exit in a matter of days (also known as flipping), you should pre-determine your exit levels. Understand The Risk-Taking Factors Any strategy is incomplete without considering the risk factors. Renowned investors and traders swear by risk analysing factors before making sound investments. The same risks apply to IPO investments as to any other market-linked transaction. While developing your IPO trading strategy, you should research to identify the risk involved as a retail investor. Don’t Fall for Brand or Hype A well-known brand does not ensure a successful IPO. Don’t invest in an IPO simply because you believe the brand’s prospects are excellent. Analyze the history of the specific firm providing shares. The brand may be strong, but the firm providing shares may be struggling. Also, don’t buy anything simply because others say it will perform well or because it is trendy. According to the Latest IPO news, the upcoming IPOs in 2022 are: Instacart Stripe LIC Adani Delhivery SnapDeal Mobikwik NSE [B-02] Conclusion These are some of the strategies you can use to evaluate a public offering before investing in it. However, evaluating a corporation is a difficult task. So, this is where an IPO adviser comes to the rescue. Reach out to Piramal Finance to keep up with all kinds of global financial trends and guide you to make the best financial decisions. We help you learn everything about relevant developments in the world of finance and avail of personal loan or business loan if any.
08-11-2023
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Best 5 Commodities to Trade in India in 2023

2023 has offered the market plenty of opportunities in commodity trading. The previous three years shook the markets and affected every sector. Though commodities were one of them, they could keep up the growth. But, continuous observations and analysis of the local and global markets are inevitable. Events happening in different parts of the world can impact commodity market prices. And the government’s response also has a role to play. For example, the Ukraine-Russia war caused a price increase in petroleum and food. Such situations affect your trading decisions and results. Hence we have come up with the best five commodities to trade in India in 2023. Read on [B-01] Top 5 Items to Consider for Commodity Trading in India in 2023 Gold As rare as it is, the popularity of gold is soaring day by day. We, humans love to own and wear, but it is also used in industries like jewellery, dentistry, and medicine. Since time immemorial, gold has been a high-value commodity. The governments around the world also consider it a financial asset. India is the second largest consumer of gold jewellery in the world after China. The consumption is on a steep rise since 2021. In 2022, it was 774.1 tonnes, and it has been predicted that the consumption of gold will be somewhat in between 750 to 800 tonnes. There is a reason for the gold to be in such huge demand in India. People consider it a protective commodity against economic downtrends and inflexion, as its price goes up when the value of the Indian rupee goes down against the dollar. Gold is available in different sizes, i.e., Gold Mini, Gold Guinea, and Gold Petal. Thus it becomes easy to buy and sell. Hence it is one of the best options for online commodity trading in India in 2023. Silver: Silver is another commodity that is very popular in India. It is helpful in many industries, like jewellery, electronics, dentistry, and medicine. Silver, given its diverse applications, has always been in demand globally. The global supply of this metal was 26,000 metric tonnes in 2022, and it is expected to rise to 29,908 metric tonnes in 2023. The price of silver in India in 2023 is around Rs. 78,100 per kg. These numbers suggest the importance of silver as a commodity in the market. They also put this metal on the commodity trading list in 2022 in the Indian market. Crude Oil: The third sought after commodity in India is crude oil. It’s not only used as a source of energy, but also in petrochemicals, production of textiles, production of fertilizers, production of steel, lubricants, and plastics. The beginning of the pandemic in 2020 caused a steep decrease in the use of petroleum. But then vaccinations came, and their distribution turned the tables. The restart of world trade and cargo movements added fuel to the fire. Since 2021 its demand has only gone up. India consumed 222.30 million tonnes of petroleum products, and it is estimated to rise to 233.81 million tonnes in 2023-2024. Its commodity market prices price is 73.87 USD per barrel or about Rs. 6000. The demand for crude oil is high and will increase in the future in India. And the market will see ups and downs within the price range mentioned above. That means online commodity trading in crude oil in India can render good returns in 2023. Natural Gas: Natural gas is a form of gas made from fossils found deep under the earth. CNG, a compressed natural gas, is a cheaper, safer, greener energy source. Many industries use CNG for various purposes and are in high demand. This demand will further increase as the Indian government recommends it to the power sector. CNG produces 80% lower carbon monoxide and costs less when compared to petrol and diesel. Hence it is not only affordable for the consumers but also good for the environment. There are 4500 CNG filling stations in the country as of 2022. Further, the petroleum and gas ministry has announced the setting up of 3500 stations by 2024. It will lead to more consumption and demand. And natural gas will become a more profitable commodity.Natural gas is a form of gas made from fossils found deep under the earth. CNG, a compressed natural gas, is a cheaper, safer, greener energy source. Many industries use CNG for various purposes and are in high demand. This demand will further increase as the Indian government recommends it to the power sector. CNG produces 80% lower carbon monoxide and costs less when compared to petrol and diesel. Hence it is not only affordable for the consumers but also good for the environment. There are around 5000 CNG filling stations in India in 2023, and it is expected to rise to 8000 by 2024. It will lead to more consumption and demand. And natural gas will become a more profitable commodity. Copper: Copper is an optimal conductor of heat and electricity. Also it is resistant to corrosion and the effects of the weather. That is why it is used in numerous industrial and manufacturing applications such as; electrical wires, piping, roof tiles, industrial machinery, and also in making alloys. Globally, it is one of the most used metals. Due to its high demand in the industry, its price is affected by the health of the local and global economy. [B-02] Conclusion 2023 has experienced a jump in business and trade activities from the beginning. And some commodities have caught the eyes of traders globally. The top five are gold, silver, crude oil, natural gas and copper. We hope you will find this article helpful for online commodity trading in India. Visit the Piramal Finance website for more about trading, investment, and finance. We take care to suggest what’s financially best for you and help take care of your loan requirements if any.
08-11-2023
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Things To Consider Before Buying Dressing Table With Storage

One frequently overlooks the need for a dressing table while identifying the fundamental pieces of furniture that every home must have. A dressing table is a necessary addition to every bedroom. It is more than just a piece of furniture. A dressing table is just as important as a clean bed in the room where you sleep. [B-01] What is a dressing table? Dressing tables are an important fixture in any room because they offer several benefits, including allowing you and your partner to arrange your accessories and cosmetics. It is typically situated in the main bedroom or in each room with a bed if the room’s size permits, where it is known as a dresser. It is similar to a dining table because it brings the family together. Because it is here that everyone spends time getting ready for social events. A dressing table with storage is essential because a dresser helps to keep your grooming supplies organized. There are a variety of options on the market; however, if you’re unsure which style of dressing table to choose, here are some suggestions: Planning is essential in advance. Considering the colour combinations in a well-lit space might help you make purchasing decisions for a dressing table. Always check out samples before purchasing. Imagine the table in your room and create a visual image of it. Customize it to suit your needs. You may choose dressing tables in different styles based on factors like the size of your room, the atmosphere, the amount of storage you need, and your personality. When picking a cabinet, you need to consider these points because they improve the appearance of your room. Considerations before purchasing a dressing table with storage Choosing a dressing table will be easier if you keep your storage needs in mind. You should choose a cabinet that will make maximum use of your available space. Select storage over aesthetics. It is important to have a dressing table with more storage than just an eye-catching style. In an overloaded bedroom, it is the storage that will finally matter. If you have a lot of jewellery, skin care products, makeup, or any other valuable items like watches or perfumes, you need a dressing table with a designated space for everything. Opt for a dressing table with lots of spacious drawers. But if you only need one or two small drawers, a simpler design with one or two larger drawers may be enough. You need a dressing table with ample storage so you can fit all your things into one single space. A dressing table with storage is essential if you prefer to keep things simple by keeping only the mirror on top and storing everything else in the drawers. A dressing table with storage is also a good idea because it keeps your valuables safe. You can put your valuables in different places and even choose drawers with locks to keep them as safe as possible. If you are a minimalist, choose a dressing table with a counter that is large and can accommodate all your daily-use items. The price of a dresser will be determined by its storage capability. So keep this in mind while buying a dressing table. Additional factors to be considered before purchasing a dressing table Size: Take appropriate measurements for the table and mirror. Before investing in a dressing table, take careful measurements so that the furniture fits into the space properly. Avoid choosing something too big or too small. You should consider the size of the room, its shape, and the space available before making your decision. Fittings and locks: Having a lock that isn’t functioning properly is the last thing you’ll ever want. If you are buying a lock system, you need to be extra attentive while purchasing it, especially if you want to keep your priceless possessions safe. Be sure that you know how to operate it. Material: You should never compromise on quality while looking for a dressing table. The wooden style with a mirror is the most popular since it can easily blend in with any bedroom decor. There are also a lot of different styles of dressing tables made out of metal on the market. Layout: This is a crucial consideration because you need to make sure that the dressing table’s design complements the mood of your room. Compare many dressing table styles to decide which one would look best gracing the wall of your bedroom. Many styles are available on the market that cater to varied interests and preferences. Price: No matter what you are buying, the price is a crucial consideration. The dressing table designs will depend on how much you are willing to spend. One important component that impacts the price is material. Always choose a material based on your price range, whether it is made of wood, metal, or anything else. [B-02] Final Thoughts Understandably, everyone wants a lovely dressing table in their bedroom. Nevertheless, you must look for all the elements listed above if you want a dressing table that will accommodate all your needs and preferences. Make sure you compare prices and styles on both the offline and online markets to get the best deal. Purchase a dressing table to help you dress up for any occasion and to show the world your best version. Use a dressing table to add elegance and practicality to your room. In case you have questions regarding your finances for such a purchase, consult a financial expert like Piramal Finance and get easy and customised credit card and personal loan solutions.
08-11-2023
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10 Best Tax-Saving ELSS Mutual Fund In 2023

Are you interested in multiplying your income while saving tax? If yes, the Equity Linked Savings Scheme, ELSS, is your perfect plan. Of course, one can opt for various mutual funds savings plans to get a good return. But, the ELSS program is your best bet. So why invest in ELSS? Simple answer? Tax saving. Before investing, let us look into the top ELSS funds you must know about. [B-01] Why invest in ELSS funds? Like any other mutual fund plan, the ELSS funds are also subject to market risk. Thus, it is also possible to incur losses while investing. So then, why go for investing in ELSS funds? Compared to other schemes, the ELSS can offer you higher returns on your investment. This is because these schemes invest in stocks, which yield a higher output in the long term. Also, unlike most investment plans, the ELSS has the least period for locking in. For example, the lock-in period for a public provident fund is fifteen years. The minimum lock-in period of ELSS is three years. Returns are much better in the longer run. When it comes to investors, most generally add a principal amount for three years. Then, after five or seven years, they add more money when they start seeing returns. This can also be a good option for you. 10 Best Tax-Saving ELSS Mutual Funds Here are the top ELSS funds that you must know about. Mirae asset tax saver fund direct growth: The Mirae asset tax saver fund direct growth is excellent. The main motto of this scheme is to generate long-term revenue for its investors. It operates with the help of a diversified portfolio of equity and related plans. It has a much lower expense ratio of 0.58% in 2023. DSP Tax Saver Fund: The DSP tax-saving ELSS funds will help you save money on taxes. The fund manager is free to invest in any possibility the market may present. This is because the fund does not need any particular investing strategy. As a result, the fund has a better churn ratio than most of its competitors. You must invest in these ELSS mutual funds. Union Tax Saver ELSS Fund: This fund is ideal for investors who are investing for at least three years and are seeking additional income tax benefits apart from higher returns. It has 95.77% investment in Indian equities, out of which 52.85% is in large-cap stocks, 11.65% is mid-cap companies, and 10.3% in small-cap stocks. Furthermore, it has 0.08% investment in debt, of which 0.08% is in government securities. Bank of India Tax Advantage Direct Growth: The Bank of India launched this ELSS mutual funds scheme. This scheme creates a diversified portfolio. It consists of various company shares with well-functioning business models. In domestic equities, the fund has an investment of 97.07%, out of which 48.85% is in large-cap companies, 21.15% is in mid-cap stocks, and 14.05% in small-cap stocks. Additionally, it has 0.07% investment in debt, of which 0.07% is in government securities. Canara Robeco equity tax saver direct growth plan: This plan wishes to achieve success through long-term valuation. It invests in equities. It sponsors primary, secondary, and overseas markets. This fund has 94.86% investment in domestic equities of which 60.95% is in large-cap stocks, 12.19% in mid cap stocks, and 6.15% in small-cap stocks. Kotak Tax Saver Fund: The fund invests according to the growth at a fair price philosophy. It has 96.58% investment in domestic equities. A major chunk of this investment is in large-cap stocks, which is about 60.94%. In mid-cap, the investment is 19.01%, and 11.07% in small-cap stocks. However, be ready to incur mild losses while investing in the funds. Bandhan Tax Advantage ELSS Fund: This fund is ideal for people who want to create wealth over long term. It invests predominantly in equity and equity related securities with a three year lock-in period and income tax benefit under Section 80C. The fund has 93.42% investment in domestic equities of which 55.06% is in large-cap stocks, 10.43% is in mid-cap companies, and 20.74% is in small-cap stocks. PGIM India ELSS Tax Saver Fund: The fund’s main objective is to generate long-term capital appreciation by predominantly investing in equity and equity related instruments. It actively manages a diversified portfolio of strong growth companies with sustainable business models. It has 93.18% investment in domestic equities. Out of this investment, 65.15% is in large-cap stocks, 11.38% is in mid-cap stocks, and 4.58% is in small-cap companies. Furthermore, it has 0.21% investment in debt and 0.21% is in government securities. Quant Tax Plan: This is the first recommendation if you want to invest in a top ELSS fund. The scheme helps to gain funds by investing in equity shares. Not only this, but the quant tax plan’s direct growth also gives out dividends to its investors. It has 97.43% investment in domestic equities. 57.61% of the investment is in large-cap stocks, 10.07% is in mid-cap stocks, and 8.8% in small-cap stocks. Nippon India Tax Saver ELSS Fund: This scheme uses an internal quant-based structure. It aims to support its growth at a fair price strategy. The portfolio seeks to exhibit a large cap bias. This happens while maintaining quality. Along with tactical exposures to mid-caps depend on a more significant price-value differential. As a result, it has a long-term tendency. The fund has 99.39% investment in domestic equities. Of this, 59.83% is in large-cap stocks, 10.84% is in mid-cap stocks, and 10.88% in small-cap stocks. [B-02] Conclusion An equity-linked savings scheme helps you multiply your hard-earned money. At the same time, it allows you to pocket a more significant amount by allowing you to save money on taxes. These schemes have an outstanding possibility to provide you with greater returns. So why are you still waiting? If you need help with finances, you can always reach out to experts such as Piramal Finance to help you find the best solutions to understand savings schemes, personal loans, or tax saving schemes better. Get expert help to save more money today!
08-11-2023
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Health Insurance

Health Insurance Plans Available to Senior Citizens in India

Senior citizens became more susceptible to illness during the pandemic due to their lower immunity and strength. Health insurance for older folks is always there to help them when nothing else can. Medical insurance for the elderly is a vital duty. Everyone must take care of their ageing parents or other older adults at home. You must help your aged parents live out their glory days tastefully. A health insurance plan for parents might be the best gift one could give their parents as they age. Anyone over the age of 60 can choose medical coverage for parents. [B-01] What Exactly Is a Senior Health Insurance Policy? Health insurance for senior citizens is a health insurance plan that protects those over 60. The plan helps relieve older adults’ physical and monetary hardships in the case of illness or confinement. This sort of senior citizen health insurance policy provides monetary help for medical services for the elderly. It can also be purchased as a single or family floating basis. Why Should Senior Citizens Get Health Insurance Online? Convenience As the digital surge hits India, many new options have come up. One of them is getting health insurance. You don’t need a lengthy introduction; all you have to do is tap the mouse! Buying health insurance for senior citizens digitally provides unparalleled ease. Payment Methods that are Safe Why rely on cash or checks in an age when the world is going contactless? As new systems arise, internet payments are now the safest way to convert. Pay safely using a debit/credit card/ net banking. Obtain a Quick Policy Paper You do not have to rely on the insurance paperwork to come via the mail network with online payments. Also, there is no need to worry about the paper’s security. When you make the first payment, you will receive the policy paperwork via mail. Everything is at Fingertips Grab all of the policy data, as well as much more, in one spot. Bajaj Health Insurance provides all the papers related to your policy. You can also use healthcare phone applications to reduce the need to hunt for them in multiple files and emails. The app allows you to track your calorie usage and BMI. Policy Issue and Quick Rates Would users want to modify the design or add or delete a member? Instead of relying on someone to provide long lessons, choose the online option, which is easily accessible. Best Plans for Health Insurance for Senior Citizens in India 2022 There are many health insurances for senior citizens available in the market. Bajaj Health Insurance has compiled a list of five senior-person medical care plans to aid buyers. Health Insurance FirmPlans for Health InsurancePlan ProsCare Health InsuranceCare SeniorCosts for in-patient care.Costs for both pre- & post-care.Costs for ambulances.Costs for residing.Costs for organ donors.Future General Health InsuranceVarishta BimaCosts for in-patient care.Costs for pre- & post care.Costs for a road ambulance.Day-care services.Ergo, HDFC General InsuranceSuraksha: My HealthCosts for in-patient care.Costs for pre-care & post-care.Costs for organ donors.Access to the insured sum.Ergo, HDFC General InsuranceOptima RestorativeCosts for in-patient care.Costs for pre- & post care.Day-care costs.Costs for a road ambulance.Costs for in-home care.Star Health and Allied Insurance CompanyThe Red CarpetCosts for in-patient care.Costs for pre- & post care.Day-care costs.Costs for ambulances.Examine health. Senior Citizen Bajaj Health Insurance When it refers to old age, one major issue that comes to mind is wellness. In old age, people are more likely to be harmed by various ailments, which raises their costs. To avoid such problems, pick a health insurance policy that covers older folks. The Bajaj Family Floater Health Guard coverage will hardly allow the elderly to save money on healthcare. It will allow them to receive the best possible care. Vital Factors The sum insured is between Rs. 1.5 and 50 Lakh. There is a lifelong lift-back choice offered. Post-care coverage is available for 90 days. Pre-care coverage is available for 60 days. Every 3 years, the insurance provides free preventive care check-ups. The recovery of the covered amount is usable. A copayment reduction of up to 20 percent is given. Clients will receive a 4% discount for the first two years when getting long-term insurance. And an 8% discount for the third year. Extent of Coverage Daycare services and methods are discussed. Due to the tidy offer form, no medical checks are required for the first 45 years. Ayurvedic and homoeopathic cures are covered. 10% annual bonus gain for each year without a claim, up to 100%. The plan covers costs paid during the recovery period. Ambulance expenses are covered up to a policy year maximum of Rs. 20,000. This policy also covers gastric surgery. Why Do Senior Citizens Need Health Insurance Plans? Health insurance for senior citizens may help bring peace of mind to a senior citizen. In such a case, a health insurance policy covers the costs paid by a person—aged 60 or over—for medical care. A critical illness might be any phase of a tumour, heart disease, stroke, etc. The risk of being afflicted with a critical illness rises with age. An old health insurance firm can provide coverage for a declared severe disease. The senior citizen’s medical insurance coverage provides a free medical check on an annual basis. Yearly preventive care check-ups are part of health insurance for senior citizens’ plans. [B-02] Conclusion Due to their old age, the elderly require greater medical care. A senior adult can gain from an old age health insurance policy. The retiree insurance policy pays for medical outlays made by someone at least 60 years old. Someone’s parent’s unexpected stays for surgery can be financially and mentally stressful. A retiree’s health insurance coverage might assist anyone in preparing for medical bills. Users can learn more about health insurance policies and many other topics on the Piramal Finance website. Find authentic and personalised information on financial products and services, including personal loans and financial calculators.
08-11-2023
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How To?

SIP Investing Guide For 2023 – How To Plan Your Systematic Investment Plan

In SIP, you periodically invest a small sum of money into the chosen mutual fund of your choice. However, before you start investing into one, you have to deeply understand it, so that you can make the best judgement. At the end of this article, you will be able to figure out the best SIP plans to meet your needs. Suppose you already have financial weaknesses like private loans, business loans, home loans, etc., to repay. In that case, a high inflation period may hinder your financial position. You can, however, prevent such crises with a Systematic Investment Plan (SIP). SIP permits you to scan your fund’s performance from time to time. SIP Plans are advantageous as they allow you to invest in a fund in periodic instalments. After understanding them, you can decide how to fund the best SIP plans. However, you must be cautious with fund allowance as it is a vital step in SIP investment. Rather than investing in too many funds, invest only in three to four funds that have consistently served well over the past years. In the start, it is vital to build a well-diversified as well as a balanced portfolio. [B-01] How much should you invest in a Systematic Investment Plan / SIP plan? SIP plans in India are a big question for everyone. Yet, it is also vital to know how much you should invest in a SIP. You should invest at least 50% of your capital into equities in the abovementioned investments. It will guarantee you a total return over some time. But, for that, you have to be patient. It would help you to remember that capital market assets are always associated with some share of risk or volatility. And this may impact your returns. If you keep rolling out the reserves, you enter into new investments whenever the market sees a downfall, which will only raise your expenses.SIP plans benefit both market cycles- during gains and losses. Are you wondering how this happens? A balanced portfolio guarantees your return to be more than the money you invested at the end of your funding period. Therefore, it is vital to stay put and never shift from your goal of long-term savings for the future. Finding the best SIP for investment will help you row through the challenging course. How to set your SIP goals? The goal of a SIP plan is to guarantee that your portfolio gets the vital risk profile, along with a good diversification across asset classes. You can easily check out all mutual funds in India and their recorded returns through a simple Google search. Make sure that the mutual funds you choose meet the following criteria: The total corpus, or the investment size, of the mutual fund, is immense. INR 500 Crore is a good consideration point. Of course, significant mutual funds do not have INR 500 Crore investments. Still, this is an excellent general thumb rule if you’re a newbie. The lock-in period for a mutual fund should be for at least five years (the longer, the better). Always select a reputed and trustable fund house. Several fund houses in our country, such as Reliance, HDFC, SBI, Birla Sun Life, etc., offer the best SIP for investment. So, choosing any one of them will be a sound judgement. Steps for how to invest in SIP Now let’s know in detail the steps to invest in an SIP plan. Step 1- Understand your risk need and the goal of the investment You will have to raise your risk hunger if you want higher returns. After setting your risk tolerance, it is vital to understand why you want to invest. But before that, you must check the best SIP for investment. Step 2- Pick a mutual fund for your asset You can pick from varied mutual fund plans present in the market. However, the choice of funds should be based on your risk profile and the individual financial goals you want to gain through SIP investments. The fund’s rendition in the past few years should also be considered when picking the funds. Step 3- Pick a date for SIP Under a SIP, your cash gets auto-debited from your bank account. It is vital to pick a particular date when it is suitable for you to pay. Most mutual fund firms propose the following dates for the investors to choose from- 1, 5, 10, 15, 20, and 28. Step 4- Select the duration of your SIP plan Investment in a mutual fund through a systematic investment plan (SIP) is the best and most suitable way to fulfill your financial goals. You can opt for a short-term investment, but it is advisable to invest for at least five years, if not more, to reap the better returns from your investment. Step 5- Decide the best way to invest in SIP You can invest in Systematic Investment Plan (SIP) either online or offline. The best part of this is that it permits auto-debit of the sum of money into your funds. So, there is no requirement to transfer your funds manually to your SIP account. [B-02] Conclusion Never leave your investment midway. You must check for the best SIP plans before investing your money and go all the way. And don’t worry about the future, we have already mentioned how no investment is better than a Systematic Investment Plan. A financial expert like Piramal Finance can help you with applying for a personal loan and managing your finances swiftly. The team of experts will help you make the best decisions for your investment plan to have a burden-free life. Unleash a financially secure future with us now!
08-11-2023
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Top Equity Mutual Funds In India 2023

Have you ever thought of early retirement? Or are you planning to buy a car or go on an international trip soon? Then why not make your money work for you by investing it and fulfilling your goals sooner? Now, you must think investing in shares can be risky because you don’t know much about shares. Don’t worry. Start by mutual fund investment with your hard-earned money. You’ll be making a smart decision if you invest in top equity mutual funds in the country. These investments will help you build wealth by beating the inflation rate in the long run. But, first ensure that they’re profitable and working well in the market. Before we reveal the best mutual funds to invest in India, let’s explain how they work. You’ll be able to make a better decision this way. [B-01] How do Mutual Funds Work? A mutual fund is an investment in which plenty of investors pool their money. It is a collective fund of several investors. They buy financial instruments like stocks and bonds. The pooled money is further invested in many companies. As one of the investors, you’re entitled to all the profits and losses made with the help of that mutual fund. The money will go into stocks when investing in top equity mutual funds. But consider giving your investment at least 5-7 years for capital appreciation. Factors to Consider for Mutual Fund Investment While choosing the best mutual funds, there are some factors that you need to consider. These are: Performance of the Fund: Check how well the particular mutual fund has performed in the last 3-5 years. It should be consistent and meet its objectives. Net Asset Value: Consider a scheme that has a reasonable market value per unit. Expensive funds can also give lower returns. Funds having a lower cost might have more growth opportunities. Expense Ratio: Check that a professional mutual fund manager charges a 1%-2.25% margin only. According to SEBI guidelines, 2.25% is the largest percentage that can be charged. Exit Fee: Some funds may charge you if you withdraw your investment at a premature stage. Do check that before confirming your investment withdrawal. Investments Under Management: Check if a mutual fund scheme already has too many internal investors. Investing in mutual funds of such companies could become hard. Professional Experience: The fund manager must be experienced enough in the industry to guide you in the right direction. Top Equity Mutual Funds of 2023 Now that you have a basic idea of what to investigate, let’s take a look at some of the best mutual funds to invest in: Canara Robeco Bluechip Equity Fund: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: Rs. 42.29 Return in the Last 10 Years: 14.65% Expense Ratio: 0.42% Exit Fee: 1% if redeemed within a year SBI Bluechip Fund: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 65.1677 Return in the Last 10 Years: 14.54% Expense Ratio: 1.59% Exit Fee: 1% if redeemed within a year UTI Nifty 50 Index Fund: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 121.4488 Return in the Last 10 Years: 12.63% Expense Ratio: 0.3% Exit Fee: 0% HDFC Index Nifty 50 fund: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 167.847 Return in the Last 10 Years: 12.60% Expense Ratio: 0.4% Exit Fee: 0.25% UTI Mastershare Unit: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 191.8109 Return in the Last 10 Years: 12.74% Expense Ratio: 1.71% Exit Fee: 1% if redeemed within a year DSP Nifty 50 Equal Weight Index Fund: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 16.5755 Return in the Last 10 Years: 8.46% Expense Ratio: 0.88% Exit Fee: 0% ICICI Prudential Bluechip Fund: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 69.85 Return in the Last 10 Years: 14:30% Expense Ratio: 1.63% Exit Fee: 1% if redeemed within a year Kotak Bluechip fund: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 384.84 Return in the Last 10 Years: 13.14% Expense Ratio: 1.8% Exit Fee: 1% if redeemed within a year Nippon India Large Cap Fund: Minimum Investment: ₹ 100 NAV as on 5th May 2023: ₹ 56.8551 Return in the Last 10 Years: 14.96% Expense Ratio: 1.78% Exit Fee: 1% if redeemed within a year ICICI Prudential Nifty 50 Index Plan: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 178.0889 Return in the Last 10 Years: 12.58% Expense Ratio: 0.34% Exit Fee: 0% IDBI India Top 100 Equity Fund (Growth): Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 40.49 Return in the Last 10 Years: 13.6 Expense Ratio: 2.42% Exit Fee: 1% if redeemed within a year Aditya Birla Sun Life Frontline Equity Fund: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 350.63 Return in the Last 10 Years: 13:38 Expense Ratio: 1.57% Exit Fee: 1% if redeemed within a year Nippon India Index S&P BSE Fund Sensex Plan: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 30.47 Return in the Last 10 Years: 12.44% Expense Ratio: 0.75% Exit Fee: 0.25% Tata Nifty 50 Index Fund: Minimum Investment: ₹ 5,000 NAV as on 5th May 2023: ₹ 110.6274 Return in the Last 10 Years: 12.32% Expense Ratio: 0.52% Exit Fee: 0.25% [B-02] Which One Will You Go For? We’ve listed some of the best mutual funds to invest in. But, before you go for your mutual fund investment, you must go through its performance in detail. Also, do keep in mind your budget and long-term goals. Don’t choose something for being on the list of top equity mutual funds. Piramal Finance is an online platform allowing you to learn everything you need to know about mutual funds investments. For informative blogs about personal loans, credit cards and financial management, visit our website!
08-11-2023
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Tax

Section 80c: Income Tax Deduction Rules You Must Know

Section 80c of the Income Tax Act has a significant advantage. It allows you to claim tax rebates on investments. You can claim a tax deduction of up to ₹150,000 especially applicable to individuals. Companies, LLPs, or partnership firms are not eligible for this. It is sometimes not easy to calculate individual tax. This guide will help you do that. Let us check the sub-sections of 80c. [B-01] Tax Deductions You Can Avail Under 80c Sub-Sections Subsection Tax Deductions Things to Know Section 80CCC It is use for annuity pension plans. Tax deductions are possible in this section. It includes the purchase, renewal, or continuation of policy. The section is applicable for pension or periodical annuity. Individual taxpayers are eligible for this section. Section 80CCD It is use for central government pension schemes. The Atal Pension Yojana is one of the schemes in this section. The monthly amount is receive from the National Pension System. Accounts surrendered are taxable in this scheme. The deduction amount should be lower than 10% of the Salary for individual taxpayers. Section 80CCF Individuals & HUFs can claim deductions in this section. Deductions are applicable in a few aspects. Tax savings and infrastructure bond investments are some of them. The maximum Deduction is ₹20,000. The investments have a pretty decent interest rate. The tax benefits are good, too. Section 80CCG This is an excellent choice for people interested in the market. It is for individual investors in the equity market. It applies to first-time buyers only. The gross total income must not exceed ₹12,000,00 per year. The maximum Deduction is ₹25,000. There is a limit on investments, which is ₹50,000. There is a 50% deduction available in this section. The lock-in period is 3 years. Investments & Expenses Eligible for Under 80c Deduction Unit Linked Insurance Plans (ULIP) ULIPs combine life insurance coverage and investments. A part of the premium goes towards life insurance and rest invested in equities or debt instruments. The lock-in period is 5 years. Tax-free options include investment payments up to ₹150,000 per annum. You can also get withdrawals and maturity amounts tax-free. Proceeds are taxable if the annual premium exceeds ₹250,000. ULIP allows you to switch among different investment portfolios. These include equity, debt, and balanced portfolios. These insurance plans are useful for many things. You can save for retirement. You can plan your children’s education. ULIPs are also useful for creating wealth. Life Insurance Premiums The minimum holding period for these premiums is 2 years. Premiums of self, spouse, or dependent children for tax deductions. Policies for parents or parents-in-law are not eligible for deductions. The maximum investment in a financial year is ₹150,000. Public Provident Fund (PPF) Contributions made towards PPF are tax deductible under 80c this is one of the most popular options. Resident Indian nationals are eligible for this fund. There is a more extended lock-in period for PPF, which is 15 years. Investment payments, maturity amounts, and interest are tax-free. The funds can be use for long-term savings. You may plan for a child’s wedding. You can secure your retirement with this scheme. PPF is also helpful in wealth generation. Tax Savings Fixed Deposit Banks and Indian post offices allow you to open Tax Saving Fixed Deposits. They have higher interest rates than regular deposits. The deposits are tax deductible. The lock-in period is 5 years. The interest earned in this deposit is taxable. You can invest a maximum of ₹150,000 in a financial year for tax-free plans. Employees Provident Fund (EPF) EPF is a vital scheme. The retirement scheme is available for all salaried employees. You are eligible after five years of service. The employer or the individual opens the account. The employer and employee must contribute 12% of the basic Salary + D.A. if the Salary is above ₹15,000. Employer’s contribution is not suitable for tax deduction under 80c. It is tax-free. EPF allows you to save a portion of your wages. Employee’s contribution for up to ₹150,000 in a financial year is eligible for deductions. Equity Linked Savings Scheme (ELSS) You can invest in ELSS Mutual Funds this will help you claim the section 80c Deduction. The lock-in period is 3 years. A maximum investment of ₹150,000 in a financial year is tax-free. National Savings Certificate (NSC) NSC is one of the most popular tax-saving schemes. The central government offers it to Indians. The tax is deductible under Sub-Section 80CCD. You can choose the lock-in period. It is 5 years or 10 years. A maximum deposit of ₹150,000 in a financial year is tax-free. An additional contribution of ₹50,000 is deductible under Section 80CCD (1B). Senior Citizens Savings Scheme An individual above 60 can opt for SCSS. If you choose the Voluntarily Retirement Scheme (VRS), you can invest in SCSS after age 55. The lock-in period is 5 years. You can extend the lock-in period by another three years. A maximum deposit of ₹150,000 in a financial year is tax-free. Sukanya Samriddhi Yojana Significant savings scheme. It is mean for girls’ education and wedding needs. The parents of the girl child can open this account before the girl child turns ten. You can open accounts for two girls. If twin girls are in the second birth, you can claim an 80c deduction for all three girls. There are tax exemptions in this scheme. Interest earned and proceeds received upon maturity/withdrawal are some of them. Good scheme for parents as it offers peace of mind. It helps plan for the child’s future. It is a great gift idea, too. Infrastructure Bonds These are government bonds. They offer by companies that develop infrastructure. You can help in the country’s growth with these bonds. These bonds are tax-exempt. ₹150,000 is the maximum tax-free investment in a financial year. Home Loan Principal Repayment The Indian government wants everyone to have homes. You may build your home with a home loan. These loan payments are eligible for tax deduction under section 80c. You must construct a house within five years from the time of the loan. You can claim a deduction for the year when construction ends. The principal repayment amount paid towards the home loan is deductible under 80c. You cannot claim tax deductions for the interest. A maximum investment of ₹150,000 in a financial year is tax-free. Getting the Maximum Benefits via Income Tax Section 80c Deduction You can claim a total deduction of ₹150,000 as an individual, HUF, or NRI because of section 80c of the Income Tax Act. You can do this on a single transaction. You can also diversify investments. [B-02] Final Thoughts on 80c Deduction You don’t need all these exemptions to file taxes. The maximum benefit stays the same. It is ₹150,000 for a financial year. You can decide what is best for you. Think about risk-taking ability. Plan your financial goals. Then, choose which scheme works. Explore more about tax-saving schemes on Piramal Finance. This online platform is what you need to learn everything about relevant developments in the world of finance. Check out the website for informational blogs on financial matters and learn more about personal loans, credit cards, and financial management.
08-11-2023
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Other

IPO Buying Strategy for 2022

Initial Public Offers (IPO) are like cash cows for investors. While they pose a certain risk, the listing gains present an attractive opportunity to book quick short-term gains. 2022 is also about some major BSE and NSE IPOs. If you plan strategically, there are good chances of getting booking listing gains and making quick profits. So, what should be your IPO buying strategy for the remainder of 2022? Let’s find out! [B-01] IPO investment strategy for 2022 Time for IPO watch! If you are planning to invest in an IPO, then you should keep in mind the following points before investing: Research properly: Before investing in any company, it is essential to research properly about the company, its industry and the founders of the company. Further, whether the company is currently profitable or not also plays an important role. This is especially important in the case of startups that are into losses and going for IPOs. Check the valuation: Valuation of the shares of the company is essential. If you feel that the price is overly valued, then the IPO might debut at a discount. Thus, it will lead to listing losses rather than listing gains. Listen to what the experts say about valuation and do your research to determine the company’s true valuation. If the shares are being issued at an undervalued price, then it’s a green signal as the share price will increase in the future. Therefore, valuation plays a significant role when investing in an IPO. Check the over-subscription or under-subscription rate: IPOs are usually open for investment for 3 working days. Therefore, if you are unsure whether to invest, you can wait for a day or two to check the IPO subscription status of different categories of investors. This will allow you to know how much the IPO is subscribed to and whether there is an oversubscription or under subscription.Investments in IPO are usually made by retail investors, non-institutional investors, qualified institutional buyers, employees etc. You can get to know the subscription rate for each of the categories from the stock broking platform or other news mediums. This will give you an idea of whether the IPO is worth investing in. Know the objectives of raising an IPO: What is the purpose for which the company is issuing an IPO? This is important because you need to know where the company will use your funds. If you find that the funds raised through IPO will be utilized for purposes that won’t bring much growth to the company, you can avoid investing. Go through the red herring prospectus: Companies going for IPOs are mandated by the SEBI to issue the draft red herring prospectus. It contains detailed information about the company, including its financial data, the sectors in which it operates, its management, and its plans. Invest at the cut-off price: You can bid for an IPO at any price within the price band. However, bidding at the cut-off price increases the chances of getting an allotment. For instance, if the price band for a BSE or NSE IPO is Rs. 100-120, you can bid for the IPO at any price between Rs. 100 and Rs. 120. However, it is always better to go for the cut-off price. Plan your exit: While you have invested in the IPO, it is also essential to plan your exit strategy. While trading in shares, it is crucial to time the market, i.e., when to enter and exit. Ask yourself, what if the IPO debuts at a premium? What if it opens at a discount? Whether I have invested for the long term or just for listing gains? Should I hold the shares if the IPO opens at a premium or discount? These questions will help you plan an exit strategy. Know the lock-in period: Existing company investors (before IPO) agree to a certain lock-in period during which they cannot sell their shares. You need to research the company’s key investors and if any lock-in period applies to them. When will this lock-in period expire? These investors invest a huge amount in the company; therefore, once they go on a selling spree, it will lead to a price drop. Therefore, it is essential to determine the lock-in period of these investors and, if possible, when they are planning to exit the company. Understand the risk factors: Understand the risks of investing in the IPO and the company you are investing in. The primary risk of investing in the IPO is that it may open at a discount, lowering your investment value. The second risk is if you do not exit at the right time, then your gains may diminish, or your losses may increase. As discussed earlier, you must plan your holding period and exit strategy. [B-02] Conclusion Each IPO presents a new opportunity to book quick profits. However, IPO investments do involve a certain amount of homework on your part. You must do your research thoroughly before investing in IPOs because while you can book gains, there are probabilities of losses as well. However, if you keep the above points in mind and act smartly, the chances of booking profits increase. 2022 is set to bring more IPOs for you. Doing a little research can give you a rough idea of when these BSE or NSE IPOs will be open for investments. Instead of waiting for the IPO to open, adopt a proactive approach by planning your investments and doing your research now. When the IPO opens, all you have to do is apply, keep IPO watch and check your IPO subscription status. Close the year 2022 with some good gains from your investments! Get the best advice regarding all kinds of financial products and banking strategies from your well-wisher and financial expert, Piramal Finance. Visit our website!
08-11-2023
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