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Types Of Alternative Investments Everyone Should Know

Investment is a great way to make money without lifting a finger! All you need is your capital and the best investment option. But the question is- What is the best investment medium? Time-tested mediums like fixed deposits, shares, gold, and cash are often the first preference. But you may be missing out on the big profits that the best alternative investment opportunities can offer. So, we have listed the top 8 alternative investment options that can make you a fortune if you act quickly! Sounds interesting? Let’s begin! [B-01] What Are Alternative Investments? An alternative investment is an alternative to investment plans in ‘conventional’ assets. Conventional categories include cash, stocks, and bonds. And alternative investments include all other investment options and types such as: Private equity Venture capital Managed futures Peer-to-peer lending Hedge funds Commodities Collectables Real estate Structured products Derivatives contracts The Top 8 Alternative Investments Let us now explore the pros and cons of the 8 best alternative investment options that will help you gain impressive returns. Here are the most profitable yet relatively safe alternative investment opportunities you should consider: Private Equity Private equity funds invest in companies not listed on public exchanges. These companies cannot raise capital from the public as they are not listed. But you can make private equity investments in them and earn as they grow. Investing in profitable businesses through private equity can bring you very high returns. But the investment period is very long, and the risks are high if you make the wrong choice. Commodities Commodities are tradable assets such as oil, grain, metals, energy, and agricultural produce. They can be bought and sold quickly and protect you against inflation. The downside is that commodities markets are very susceptible to market instability. So, you must make well-informed decisions to lower the risks of loss. Hedge funds Hedge funds collect money from investors and invest it in equity markets or international/domestic debt. They usually offer high returns to investors. However, hedge fund managers charge a high management fee of 2% to 20% of your total annual returns. The risk involved is also significant. Real estate Real estate investments usually need large sums of money. But real estate investment trusts allow you to invest in real estate with as little as Rs. 5000! Using these methods, you can have fractional ownership in grade A properties or buy entire properties if you have the funds. But, real estate is a long-term investment plan with high taxes and maintenance costs. Venture capital Venture capital funds invest in young startups that need capital to develop themselves. You can earn large returns if the fund invests in successful startups. And this is especially true in a large startup ecosystem like India. However, venture capital investments always carry the risk of losses. And this is because even the best ventures can fail in the uncertain business world. Moreover, you won’t have control over business decisions while investing in a company. Collectables Collectables include a wide range of unique physical assets that are likely to appreciate over time. Investing in collectables involves purchasing and maintaining special items until they are sold at a much higher value. These include items such as: Fine art Rare wines Vintage cars Mint-condition toys Stamps Coins Other artworks or antiques Collectables can bring you very high profits. However, there won’t be any regular income from the items and you would have to pay for their maintenance regularly. Peer-to-peer (P2P) lending Modern P2P lending involves direct lending between peers without including banks. And this means lenders and borrowers can earn high interest using authentic P2P lending platforms. Currently, these platforms offer an impressive 18-22% net returns. On the flip side, P2P lending involves the risk of the borrower defaulting. So, you must research and take expert help before going for P2P lending. Angel funds Angel funds are investment funds that collect money from several investors and invest it into new businesses. Investors receive high dividends once the new business grows and becomes profitable. Unlike venture capital, angel funds involve direct individual investments without any intermediary. Hence, they allow better control over the use of your investment. However, angel funds are subject to unpredictable business risks. They also involve higher complexities and higher losses than venture capital. When Should You Prefer Alternative Investments? Alternative investment plans are usually more profitable, stable, and less regulated than traditional mediums. They are a great option to improve returns and diversify your investment portfolio. However, you must have high expertise, large capital, and time to spend. That’s because alternative investments involve higher complexity, higher fees, and lower liquidity. They are also less predictable and less transparent as compared to traditional investments. So, you should go for alternative mediums only if you have the required capital backed by proper expertise or guidance. You may also approach financial consultants to make the best alternative investment options that provide higher returns at minimum risks. Summing up This blog has covered the best alternative investment options that offer good returns without high risks of loss. We saw that the 8 best alternative investment options are- Hedge funds Private equity Commodities Real estate Venture capital P2P lending Angel funds Collectables Each option has its unique pros and cons. And it is up to you to build a portfolio by investing in the correct mediums. But alternative investments can get tricky and hurried decisions can land you in a financial fix! So, you must check the pros and cons and verify the terms before investing in any medium. [B-02] Do you still have doubts or concerns? Solve them by taking expert advice from a trusted financial agency like Piramal Finance! The experts at Piramal will help you make the best alternative investments easily so you can make the most of your savings.
08-11-2023
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Personal Loan

Check Eligibility of Loan for Women & Apply Online

When women start a small business, they often face numerous challenges. Hence, they need special loans tailored to their needs. Here are some factors affecting business loans for women, their eligibility, and how to get special offers for women business owners on loans. [B-01] What Do Business Loans for Women Mean? Today, there are more and more female entrepreneurs. They are taking control of their finances and becoming more stable and educated. It also means that they can help other women because they know what other people might need when it comes to finances or business advice. Here are a few reasons why a loan for women is the way to go: Women in business are on the rise. Women make up 20.37% of India’s MSME (micro, small, and medium enterprises) owners. They account for 23.3% of the labour force and are the economy’s backbone. Women reinvest in their businesses more than men—and for a good reason. To succeed as an entrepreneur, you need to put your money where it counts: into your business and its growth. Women tend to do this better than men because they have more empathy for their community and family needs, which means paying employees better and ensuring workers’ rights are respected. When women receive microloans, it improves their lives and the lives of their families. They can invest in new businesses and create jobs for more people. This creates a ripple effect that impacts their communities and the country’s economy. Why Do Women Need Business Loans More Than Men? Women are considered to be the backbone of every society. However, they lack the opportunities to explore their potential. As a result, many female entrepreneurs and small businesses fail in their endeavors. This can be attributed to a lack of financial support, which is a vital factor in running a successful business. Women need business loans more than men because they have fewer options for borrowing capital from banks or other financial institutions. This is due to various reasons like lower income levels, etc., thus making them ineligible for bank loans. A small Business Loan for Women is perfect if you are starting as an entrepreneur and need capital to get your business going. You might need this loan to open a new location or add a new product line. The best part about this type of loan for women is that it comes in all shapes and sizes, so no matter what kind of business you own, there will be a loan that fits your needs. Many different repayment options are available; choose the one that works best for your budget. Eligibility Criteria for a Business Loan for Women To apply for a business loan for women, you must be: A citizen of India. You should also be residing in India at the time of your loan application. No past loan defaults. A minimum credit score of 650 You should have a business plan in place. This includes outlining what kind of business you wish to start, how much money it will cost, and how much profit you expect to earn. Have an active bank account to deposit the loan repayment amount each month (the lender will use this account to transfer funds). Documents Required to Apply for Business Loans for Women To apply for a business loan for women, you need to submit the following documents: Filled out and signed the application form KYC documents like business incorporation certificates, business entity proof, articles of association, partnership deeds, shop certificates, and establishment certificates. Income proof (last 6 months’ bank statement) Passport-size photograph of applicant and co-applicants Identity proof (PAN card, Aadhaar card) Address proof A detailed business plan How to Apply for Business Loans for Women? You can apply for a small business loan for women by visiting your bank’s website or lender. The bank will review your application and check your credit rating. If approved, it will deposit the money into your account within 3 business days. Factors That Determine Your Business Loan for Women Eligibility Several factors determine your business’s loan eligibility. These include: Your business’s credit history Your business’s profitability, cash flow, and growth potential The industry in which you operate Your personal credit history, income, and assets Your business’s stability and financial strength The size of the loan you need Your business’s financial statements The quality of its management team Your business’s creditworthiness Women Have Access to Special Loans at a Lower Interest Rate Most lending agencies offer special rates and terms on loans for women, so they can take care of themselves, their families, and all the other things that make them happy. You can get a business loan of up to Rs. 1 crore and working capital loans for women entrepreneurs. The interest rate on these loans is lower than on standard loans, making them more accessible to women who want to start their own businesses. Access to special business loans at a lower interest rate makes them more affordable for the female borrower and easier for the lender to service. [B-02] The Bottom Line Women entrepreneurs can get special loans tailored to their needs. With loans for women at lower interest rates and tailored repayment periods, it’s easy for women to get the financing they need to start or grow their businesses. To read more similar blogs and other finance-related articles, head to the Piramal Finance website.
08-11-2023
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Business Loan

What You Need to Know About Entrepreneur Loans

Any expanding business constantly worries about finding new sources of working capital. Getting access to loans may be difficult for a small or medium-sized enterprise. However, banks and NBFCs provide entrepreneur loans to those who need to start or expand their business operations. Entrepreneur loans are calculated based on the borrowed amount, interest and repayment period. It will benefit business owners who need access to funds to finance various aspects of their business. [B-01] What Is An Entrepreneur Loan When you need access to finances for your business, an entrepreneur loan can help. An entrepreneur loan can be used for multiple purposes such as business growth, the acquisition of new machinery, investment in personnel and more. To help business owners, an entrepreneur loan can help to kickstart or grow the businesses of qualified applicants who meet the eligibility requirements. Since an entrepreneur loan is an unsecured loan, you do not need any collateral to be eligible to apply and the interest rate is also reasonable. Ways To Increase Your Chances of Getting An Entrepreneur Loan To qualify for an entrepreneur loan, businesses must meet certain requirements. A loan application can be denied by the bank if the borrower does not meet the bank’s requirements. The following recommendations will help you get your entrepreneur loan application approved: 1. Raise Your Credit worthiness The first thing to do if a company or its owner has a low credit score is to pinpoint the causes. Not paying credit card bills on time or late EMIs payments can negatively impact your credit score. This is why it is crucial to make all repayments on time and ensure that your bank account linked to your EMIs always has sufficient balance. 2. Do Not Apply For Loans Multiple Times Banks reject loan applications because of poor credit reports. Businesses should know that bank loan denials affect their chances for future loan approvals. Banks are more hesitant to lend to those who have been rejected for loans in the past. 3. Find a Reliable Lender It is crucial to research all lenders that provide the best entrepreneur loans. Selecting a bank with low-interest rates and favourable loan terms is important. Applicants are advised to use an eligibility calculator to assess their EMIs and make a better decision on whether they can make their repayments. 4. Business Longevity Banks and lenders grant entrepreneur loans to businesses that have been in operation for at least three years. It may be more difficult to get an unsecured entrepreneur loan for a new or struggling business. As a result, businesses may be forced to search for entrepreneur loans that are secured with collateral. 5. Assess Repayment Capacity A business owner should apply for an entrepreneur loan only after they have determined their ability to repay the loan amount plus the interest. If the entrepreneur loan amount is too high, the lender may turn down the loan application by deeming the amount too much to be repaid. 6. Keep Accurate Documentation Any legitimate business must register for GST and have their audited financial records. Lending institutions and banks consult these documents while determining whether entrepreneur loan applicants qualify for loans. What to Do If Your Loan Application Is Rejected In the event of an entrepreneur loan application rejection, these are the steps to be taken: 1. Find Out The Reasons For Rejection Usually, the reasons include a low credit score and a high debt-to-income ratio. Finding out the reasons will help you in the future if or when you decide to reapply. 2. Verify Your Credit Record Negative credit history can be a major reason behind the rejection of an entrepreneur loan. Before submitting another application, double-check and resolve any inconsistencies you find. 3. Reapply for the Loan Before reapplying, check the reasons behind your loan rejection. Work on your credit score and resolve the issues for your loan rejection. Follow the lender’s further instructions to get your entrepreneur loan approved. Eligibility Requirements These are the eligibility requirements for a business loan for entrepreneurs: Between 21 and 65 years of age The business must be a minimum of 3 years Must be an Indian citizen or resident Must be self-employed under any of the categories: business owner, sole proprietor, partner of a partnership firm, promoter/director, doctor, CA and architect Must have a CIBIL score of 700 or higher In addition, some banks also require a minimum annual revenue or ownership of at least one property. Documents Required These are the documents required for an entrepreneur loan: ID proof documents such as Aadhaar card, voter’s ID and more Address proof documents such as utility bills, voter’s ID, Aadhaar card and more PAN card Proof of business ownership Company’s financial documents for the required period Bank statements and other financial statements for the required period Application Process You can either apply for an entrepreneur loan online or at the nearest branch of the bank or lender. The application process is simple and requires you to: Obtain the application form from the bank branch or website Fill out the form with accurate information that matches your supporting documentation Attach or upload all required documents mentioned above Submit your application plus documents to the bank personnel or online Each lender will have their own approval process which includes the time required to approve the loan and transfer the funds to your bank account. [B-02] Conclusion If you are considering applying for an entrepreneur loan, it is important to go through all the factors mentioned in this article including assessing your eligibility, preparing your documentation and figuring out your ability to repay the loan. Before applying, it is important to determine the exact loan amount that you require and not more or less since the amount will impact your repayments. Once you research the different lenders that offer a business loan for entrepreneurs, check the interest rate and tenure of the loan to determine whether the EMIs are within your repayment ability. For more information and guidance on entrepreneur loans, visit Piramal Finance and read informative articles like this one.
08-11-2023
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Investment

What Is A Financial Investment? – Definition & Types

The question “what is a financial investment” is quite common. Most people understand it as investing in stocks, bonds, and other financial instruments. However, there is more to investing than simply buying shares in a company. In this blog post, we’ll define what a financial investment is. We will also break down the different types of financial investments. By the end, you would have learnt how to optimise your money flow starting today. Let’s dig in! [B-01] What is A Financial Investment? The financial investment can be any type of asset. It must have the potential to generate income or appreciate over time. Common examples of financial investments include real estate, precious metals, and collectables. There is no guarantee that any investment will succeed. However, careful research and diversification can help to minimise risk. It can also help to maximise the returns. For many people, investing is a way to secure their financial future. It is a way to build their wealth over time. With the right approach, it can be a powerful tool for achieving financial security too. The key to successful investing is carefully researching potential investments. It is also important to diversify one’s portfolio across a variety of asset classes. This minimises the risk involved in investments. Over the long term, investments typically outperform other savings vehicles. This includes savings accounts and CDs. As a result, investing is one of the best ways to grow one’s wealth over time. Types of Investments There are numerous financial investments. Here are 6 most popular financial investments in India: Stocks Stocks represent ownership in a company. When you buy stocks, you become a shareholder. It entitles you to a portion of the company’s profits. Stocks are often associated with large corporations. However, smaller companies can also issue stocks. When a company issues stocks, it is selling a piece of itself to investors. The primary benefit of investing in stocks is that you have the potential to earn a high ROI. Unlike bonds, which provide fixed payments, the value of stocks can rise and fall. As such, stocks offer the potential for both growth and income. For this reason, stocks are an important part of many portfolios. However, it’s important to remember that they also come with risks. The value of stocks can decline sharply very quickly. There is no guarantee that you will earn a good ROI. Bonds Bonds are debt securities issued by corporations and governments to raise capital. When you purchase a bond, you are effectively loaning money to the issuer. In return, the issuer agrees to pay you a set rate of interest over the life of the bond. They are required to repay the principal amount when the bond matures. Bonds are an attractive investment option. They are relatively low-risk. They also provide a steady stream of income. However, they also tend to offer lower returns than other investment options. This includes options such as stocks and real estate. As such, bonds may only be suitable for some. Fixed Deposits For those looking for a safe and predictable ROI, fixed deposits (FDs) are often a popular choice. FDs are offered by banks and other financial institutions. They typically involve placing a sum of money into an account for a set period. During this time, it will earn interest at a fixed rate. The main advantages of FDs are their safety and stability. The interest rate is fixed. Hence, the investors know exactly how much they will earn on their investment over the term of the deposit. In addition, FDs are relatively low-risk. They are also easy to understand. All these factors make them an ideal option for new investors. However, FDs tend to offer lower returns than more risky investment options such as stocks and shares. Therefore, it is important to carefully consider your needs and objectives before investing in FDs. It might or might not be the right option for you. Mutual Funds Mutual funds are managed by professional money managers. They typically invest in a diversified mix of stocks, bonds, and other securities. This diversification can help to minimize risk. It can also potentially maximize returns. For investors who are looking for a hands-off approach, mutual funds can be attractive. However, it is important to remember that mutual fund performance can vary. There is also no guarantee of how any particular fund will perform in the future. As with any investment, it is important to do your research before investing in a mutual fund. But for those who are willing to take on some risk, mutual funds can be a smart way to grow your wealth over time. Real Estate When it comes to financial investments, there are a lot of options to choose from. Stocks, bonds, and mutual funds are all popular choices. However, each comes with its own set of risks and rewards. For some people, the stability and potential for growth offered by real estate make it an attractive option. Stocks and bonds can go up or down in value very quickly. But real estate is a slower-moving market. This can make it easier to predict trends. It is also easier to make sound investment decisions. Additionally, real estate can offer several other advantages. This includes the potential for rental income, tax breaks, and many more. Of course, real estate is not without its risks. It is affected by the possibility of market downturns and maintenance costs. However, for some investors, the potential rewards outweigh the risks. Crypto One of the most popular financial investment options today is cryptocurrency. It is also known as a virtual or digital currency. Cryptocurrency uses cryptography for security. It is not controlled by any central authority, making it decentralised. There are several cryptocurrencies present today. Investors can purchase cryptocurrency through a cryptocurrency exchange. They can also mine it. Mining involves verifying transactions and adding them to the public ledger. Cryptocurrency is often praised for its security and anonymity. However, it is also volatile. It has also been known to lose value quickly. [B-02] Conclusion We hope that now you are all clear with what financial investment is and what are its various types. But if you still need investment advice or have concerns regarding your finances, you can contact finance advisors at Piramal Finance!
08-11-2023
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Difference between Cumulative FD versus Non-cumulative FD

Do you want to sign up for a fixed deposit scheme? Learning about the two types of fixed deposits would help. For the uninitiated, there are two types of FDs: cumulative and non-cumulative. A cumulative fixed deposit scheme accrues interest through a process called compounding. It provides better returns than non-cumulative FD which pays interest periodically. So, which one should you invest in? The answer depends on your liquidity needs. This blog highlights various aspects of the two FD types to help you make an informed choice. Before we explore the differences, let’s understand what these FDs mean. [B-01] What is a Cumulative Fixed Deposit? A cumulative FD is a type of fixed deposit where the interest is compounded over time and paid on maturity. The interest earned in a year is reinvested and added to the principal. This pumps up the interest amount. In other words, the interest earns more interest. And when the deposit matures, you receive the principal and the accumulated interest. Cumulative FD works best for those with a long-term investment horizon. Examples include salaried individuals who do not depend on interest income. Hence, invest in this FD to diversify your investment portfolio. What is Non-Cumulative Fixed Deposit? In non-cumulative fixed deposits, the depositor receives the interest amount periodically. The interest is paid annually, biannually, quarterly, or monthly, depending on the depositor’s preference. Since the power of compounding plays no role here, the returns are less than the cumulative FD. Non-cumulative FD works best for retirees, freelancers, or homemakers without a fixed income. Difference Between Cumulative and Non-cumulative Fixed Deposit Now that you understand the meaning of the two FD types, let us understand their differences: Given below are the major differences between cumulative FD and non-cumulative FD: Payout of Interest The payout frequency is one of the major differences between cumulative and non-cumulative FD. In the case of cumulative FD, the interest income remains locked in for the entire tenure. However, for non-cumulative fixed deposits, the interest is paid out periodically depending on the choice/preference of the investor. The interest on the cumulative fixed deposit compounds every three months and is paid at maturity. On the other hand, non-cumulative fixed deposits do not harness the power of compounding. Based on their requirements, the depositor can choose from different interest payout options, from monthly to annually. Income Frequency In cumulative fixed deposits, the depositor does not earn extra income during the investment term. The entire income, with the interest accrued, is paid as a lump sum at the end of the term, on maturity. If you invest in non-cumulative FD, you will receive constant payouts. In other words, the FD will act as an income source. Suitability While you will not receive constant income with cumulative FD, you will get bigger returns as the interest compounds. The maturity period for cumulative fixed deposits lies between six months and ten years. The cumulative FD is therefore a suitable option for individuals who wish to receive a fixed income at the end of their deposit tenure. Often, this type of fixed deposit is also referred to as a money multiplier. If you do not want a monthly income but wish to use the FD simply to build a corpus, go for cumulative FD. It is best suited for people with a stable income. If you have liquidity needs and want to use your savings to generate consistent income, opt for a non-cumulative FD. Therefore, non-cumulative FD is a reliable option for freelancers or retired individuals. In other words, it suits individuals without a fixed income source. Which is Better: Cumulative FD or Non-Cumulative FD? It can take time to decide which account is right for you. As you can see, cumulative FD accounts offer many benefits. However, non-cumulative FD accounts also provide the same benefits. The main difference lies in the interest payouts. Which one to choose out of the two depends on your expenses and how much you wish to save over a specific period. [B-02] Conclusion A fixed deposit is a practical investment option for those looking to save money for the future. A cumulative fixed deposit (FD) offers investors the advantage of cumulative interest over time. Non-cumulative FD provides investors with the same returns without the cumulative interest. However, both FDs offer great returns with minimal risks. If you are not familiar with cumulative and non-cumulative FD, reach out to professionals at Piramal Finance to help you with the entire procedure. Being experts in their field, they will help you make an informed choice.
08-11-2023
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GST

How GST Can Affect Your Festive Season Shopping

Consumers are often spoilt for choice when it comes to festive shopping. Retail brands and stores try their best to boost sales through hefty discounts. But the launch of the new indirect tax regime in India, the goods and services tax (GST), prompted consumer-oriented companies to tweak their discount strategy. Tactics such as gift vouchers, free goods on the purchase of a certain amount, and promotional offers may not directly work to woo consumers. But, it also comes with multiple advantages of GST. According to the new tax regime, freebies or free goods would also attract GST. As a result, most of the shopping done online and otherwise became expensive after the implementation of GST. This article explores how GST affects consumers’ festive season shopping and the benefits of GST registration. [B-01] The Need for New Strategies Post-GST, consumer goods companies need to think of new strategies to attract customers due to the following reasons: Discounts, vouchers, and free goods will also come under the purview of GST. You can avail of the input tax credit only for products with economic value—goods with a price tag. The deduction cannot happen on zero-value products, i.e., free products given to a customer. Consumer-oriented businesses would suffer a double loss because they would be unable to claim deductions and would also have to pay GST. Change in Popular Brands and Their Strategies Post GST Implementation Here’s a gist of how well-known clothing retailers and food product companies plan to function post-GST implementation: Brands like Vero Moda, ONLY, etc., provide straight discounts. Parle products no longer provide the “buy one, get one” offer. Instead, they offer upfront discounts. Brands such as Dabur and Marico have opted for combo packs and price cuts. Popular food chains, such as Domino’s and Pizza Hut, no longer have the “buy one, get one free” offer. The Pizza Hut sales pitch changed to “2 pizzas at 50% off.” Advantages of GST Tax Collected At Source Many retailers and online brands did not collect tax in any form. Under the GST, these brands began collecting tax at a fixed rate. eCommerce websites, for example, collect tax at a fixed rate of 1% and pay the sellers on their websites, allowing consumers to avoid paying taxes on goods. They can pay it upfront to the retailer while they purchase goods. Faster Delivery If consumers buy from an online retailer or an eCommerce site, their goods will reach them faster. This is because, under GST, retailers do not have to file separate paperwork for each state across India. For example, if the seller is in Mumbai and you are based in Bangalore, the current system calls for filing a separate bill for logistics. The bill for state taxes must also be filed separately. Post-GST, this system got simplified. The states no longer impose extra paperwork. Everything will come under the garb of GST, saving everyone the hassle. This eventually results in making the entire delivery process faster. Decrease in the Price Of Goods & Services The central government charges GST at all levels of the supply chain. Therefore, you will find a considerable difference in the product prices post-GST implementation. Customers will hence be able to avail the advantages of GST as it will be lesser than VAT and service taxes. For example, food items like grains, spices, etc. fall under the 0-5% GST range. This is extremely beneficial for the customers, as they would buy it at a cheaper price. Many other daily-use items, such as shampoos, tissue papers, toothpaste, soaps, electronic items, etc., have also become cheaper. Other than that, there are multiple GST slabs applicable to different items. The mass consumption of spices falls under the GST slab of 5%, processed foods come under the GST slab of 12%, whereas luxury goods fall under the GST slab of 28%. Improved Competitiveness GST reduces the transaction costs of doing business considerably. As a result, the competitiveness of trade and industry has improved since the implementation of the GST. This is perhaps the most crucial advantage of the GST for consumers. Dismantling interstate taxes is one of the most crucial reforms long awaited in India’s manufacturing and retail markets. Linear Pricing Across the Country One of the major GST benefits is that it regulates the pricing structure. This is great for consumers, as they will get to pay the same price irrespective of their location or place of purchase. Under the GST, customers will be able to buy the product at the same price across the country. However, the products that fall under the GST tax slab only can avail of these GST benefits. Improved Transparency Another major advantage for traders (importers, eCommerce sellers, retailers, etc.) is the transparency that comes with GST. Under the GST, a majority of businesses have streamlined their operations for traders. This is because they have to pay only one tax — GST—for everything they purchase along the supply chain. Easy Borrowing GST unifies all of your financial transactions into a single system. This makes it easier for small and large businesses to maintain records of their transactions. Since it is easy to maintain these records, it has become much easier for traders to apply for bank loans. The system has all the history of the assets and the financial ability of the trader. [B-02] Final Thoughts The onset of GST redefined shopping behaviour completely, even during the festival seasons. Consumers now expect discounts rather than over-the-top freebies. Be it food, garments, electronics, or any other industry benefiting from festival shopping, the GST had a massive impact on them in terms of profit. If you have any further doubts regarding the advantages of GST or want to learn more about the benefits of GST registration, consider consulting an institution like Piramal Finance. Their experts can help you calculate how much GST you will need to pay as a business owner and how to manage your finances.
08-11-2023
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What are the Market Opportunities to Capture Right Now?

It’s not easy to grow a business. In this chaos, it’s getting harder to do well. The pandemic, inflation at the time, and global chaos cause the problems. Your company’s success depends on how well you can find ways to stay alive. There is a lot of work to do. But we’re here to help you on your way. It would help if you looked closely at your company’s business direction, resources, and other analyzing market opportunities. Intelligent analysis is key to making decisions based on facts. [B-01] Types of Analyzing Market Opportunities Scenario analysis for purchases It’s not easy to make decisions about what to buy. Different things affect what, when, and where people buy. You need to know how your customers buy things so you can change your options and change the way they buy. Here are some things to ask: When do customers purchase our goods or services? When do they buy it? Where do they shop? They pay in what way? Explore your customers’ buying habits by tracking how they pay and get your products. This will let you make your offer fit what they want. Let’s look at the retail business as an example. Customers today want things to be quick and easy to get to. When retailers saw these new options, they changed how they did business to attract more customers. Businesses could offer delivery within minutes and take advantage of consumers’ impulse purchases because of how fast they could do business. The way your customers buy things can tell you a lot about what they need. Consumer segmentation Find out what consumers have in common and put them into groups. This will give you the right amount of reach. Consumers could also be grouped based on age, gender, location, education, job, and income. You can change by looking at your lifestyle, attitude, beliefs, and buying instincts, among other things. Demography is a way to figure out how big your customer base is. For example, the people who make diapers need to know how many children live in a country. People buy because of the price, how easy it is to buy, the quality, the design, and the material. Population groups change over time. Most world’s workers are from Generation X and the Millennial generation. For example, you need to change your marketing opportunities to meet the needs of the different age groups you are trying to reach. Foreign analyzing market opportunities. If you have a business in a mature or crowded field, looking to other countries can help you reach your financial goals. Their economies and cultures differ, so their marketing opportunities grow at different rates. You can figure out how far along a product’s life cycle is by tracking how much a certain item is used per person in each country. Knowing how big the market is and how much competition there is will make it easier to figure out how much money the business could make. How many people use their phones to pay for things they buy? How much of the market do private brands make up in an industry? These questions can help you determine if there is a market for your goods or services in your country. But it could also make you think of new ways to improve your current market opportunities. Complementary product and service analysis Keeping an eye on the growth chart of the goods and services your business needs to succeed would be helpful. For example, there are many kinds of butter and sweet spreads. They should look into what’s happening in the bread and cookie business. And people who make tomato sauce should learn more about the pasta market. By doing the same research, you can find out how your customers use your product in the same situations as other people. Find out about new needs, opportunities, and threats. Make new products or improve the ones you already have. Sell more successfully Think about a company that makes freshly ground coffee and wants to sell it in more places. You should get sales data from companies like Nespresso and Dolce Gusto that make pod coffee makers figure out how big their marketing opportunities could be. When you think about funding, you should also consider other market opportunities. Use different strategies to guide your product innovation and grow your market share. Direct competitor analysis Direct rivals provide similar goods or services. Coca-Cola and Pepsi, as well as Netflix and Hulu, are two examples. Do a thorough analysis of your industry’s competitive landscape and pay attention to what other vital players are doing to get a decisive competitive edge. Then, find out how they stack up against your company. You should ask the following questions: Which businesses are getting bigger, and why? Why are they worth different amounts? How do they get the word out about their goods? What do we have going for us that they don’t? Think about the IKEA store. When they opened their first store in Chile in 2022, they took advantage of new market opportunities. But IKEA did a thorough study before deciding to grow. Most likely by looking at companies like Sodimac, which has 74 locations and is already a competitor. This kind of analysis is vital for success. Environmental analysis Don’t forget to look at things outside of your business that can affect it. This includes money, geopolitical events, changes in the law, scientific and technological progress, and climate change. You can find marketing opportunities and develop winning strategies by paying attention to these things. Think about how amazing science is. The market opportunities are going up and down because of these new products, like robotics. Companies like Google, Microsoft, and Nike were used as business models to invest in these untapped markets. But it’s not just these big companies that are looking into this. [B-02] Conclusion Your company can make long-term decisions using analytical methods. All it has to do is plan and project what will happen next. You can do this by looking at the different ways to get into the market or make room for yourself. As soon as an opportunity is found, make a proposal, plan the process, and figure out how much it will cost and how much it will cost. Not every market opportunity that is found will make money. Because of this, many businesses spend money on research and analysis. Before going into a new market or making changes to a product, this is done. Studying markets can be done differently, such as with Porter’s five forces model, which looks at competitors, suppliers, buyers, subsidiary-producing companies, and environmental forces. Now that you have everything you need about marketing opportunities, you should visit Piramal Finance for more information.
08-11-2023
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Types of Investments Can You Consider For Your Portfolio

As an investor, you always want to ensure that your portfolio is diversified well. This means investing in a variety of asset categories. These assets can include stocks, bonds, and even mutual funds. But what are the different types of investments that you can consider for your portfolio? Wait, first of all, what are the different types of portfolios? Let’s dive deeper. Let’s learn about different types of portfolios. By the end, you would also have learned about various types of investments you can consider. Let’s dig in! [B-01] Types of Portfolio Investing is an art and your portfolios can show if you are good at it or not. A person can have various types of portfolios. In the finance world, there’s a name for each one of these types. Let’s see some of the most popular ones: Aggressive Portfolio This type of portfolio showcases a lot of high-risk investments. These are typically made in the desire for higher returns. These portfolios describe the investor as a risk taker and adventure seeker. Aggressive Portfolios need keen observation and close monitoring at all times. Defensive Portfolio These portfolios do not have any high-risk stocks. These are usually the safest investments. They don’t react much to market movements. Thus, the defensive portfolio is very immune to risky moves in any direction! Income Portfolio Income portfolios are a great way to diversify your investments. They have the potential of creating stability in an unpredictable market. They focus on dividends, interest payments or other forms of revenue. Speculative Portfolio Speculative investments are often compared to gambling. They require such an appetite for taking risks. Most people would consider this type of trading risky. However, it’s important not to get caught up in the essence that comes with such a high degree of risk. Hybrid Portfolio The name says it all — this type of investment portfolio contains a mixture of assets with different types of criteria. You can use it to get both growth and dividends. Well, enough about types of portfolios! Let’s now move forward to the main deal — types of investments for your portfolio. Types of Investments for Portfolio Stocks If one wishes to invest, the options are endless. However, only a few are worth your while. Stocks are a type of investment that represents ownership in a company. There are two main types of stocks: common stock and preferred stock. Common stock allows the shareholder of voting rights and a share of the company’s profits. Preferred stock does not have voting rights. However, it does have a preference over common stockholders for receiving dividends and other distributions from the company. Bonds A bond is a debt investment, where an investor loans money to an entity (usually a government or corporation). In return, receives interest payments over a fixed period. Corporations often use bonds to raise capital for growth or other projects. Mutual Funds A mutual fund is an investment vehicle that takes money from many investors and invests it in a variety of securities, such as stocks, bonds, and short-term debt instruments. Mutual funds are managed by professional money managers and offer investors diversification, which can help mitigate risk. Real Estate Investment Trusts (REITs) A REIT is a type of security that invests in real estate and allows investors to pool their money and receive regular income payments (in the form of dividends). REITs can be publicly traded or privately held. They must meet specific conditions to be eligible for special tax treatment. Exchange Traded Funds (ETFs) An ETF is a type of security that tracks an index, commodity, or basket of assets like an index fund but trades like a stock on an exchange. ETFs offer investors exposure to various asset classes in one investment plan. Commodities A commodity is a physical good that is interchangeable with other goods of the same type. Commodities include metals (such as gold and silver), energy (such as oil), food (such as wheat and corn), and livestock (such as cattle). Cash Equivalents Cash equivalents are short-term investment options that are highly liquid and considered very low risk. Examples of cash equivalents include money market funds, commercial paper, and Treasury bills. Short-term government bonds with maturities of three years or less also come under cash equivalents. Alternative Investments Alternative investments are non-traditional assets that can provide diversification benefits. This is due to their low correlation with other asset classes in your portfolio. Some examples of alternative investment options include: hedge funds, private equity, venture capital, real estate, precious metals, and collectables, such as art or wine. Derivatives A derivative is a financial instrument whose value is derived from the underlying asset on which it is based (hence the name “derivative”). The most common types of derivatives are futures contracts, options contracts, and swaps contracts. Derivatives can be used for hedging purposes or for speculating on the future price movements of the underlying asset. Structured Products A structured product is a financial instrument whose payout depends on the performance of one or more underlying assets, such as stocks, bonds, commodities or currencies. Structured products can be custom tailored to meet the specific needs of investors. For example, a bank might create a structured product that pays out if the S&P 500 Index rises above 3000 points within the next year. If the index does not reach 3000 points, the investor would receive nothing. [B-02] Conclusion As you can see, there are many different types of investments you can consider for your portfolio. It’s important to remember that no single investment plan is right for everyone, so it’s important to do your research before making any decisions. Also, keep in mind that all investing involves risk, so please consult with a financial advisor before making any final decisions. Make your financial decisions risk-proof. Consult with experts from Piramal Finance today.
08-11-2023
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What is a Cancelled Cheque? : Its Meaning, Purpose, and Sample Image

A cheque is a written order from one person to another instructing the bank to pay a specific sum of money from your account to the account of the person in whose name the cheque is drawn. Even though the digital age has made it easy to perform any commercial transaction swiftly, many people still choose to use cheques for payment because they lack confidence in online means. A cancelled cheque may be required in many banking and financial transactions. [B-01] What is Meant By A Cancelled Cheque? A cancelled cheque is one that has the words “cancelled” written across it and has been crossed by drawing two parallel lines. If a mistake was made when writing the cheque, it might be cancelled. However, other than the word “cancelled,” there is nothing more that needs to be written over the cheque, such as the payee’s name or the amount. Cancelling a cheque is important so that it doesn’t fall into someone else’s hands and potentially be used for fraudulent purposes. A cancelled cheque serves as verification that the concerned individual has a bank account. Furthermore, even though a cancelled check can’t be used to draw out funds from the drawer’s account, it contains additional information such as the account number, account holder’s name, expiration date, name and address of the branch in which the individual holds a bank account, MICR code, and IFSC Code. Here is a Sample Cancelled Cheque Image [B-02] How to write a cancelled cheque? A cancelled cheque is simply a cheque with two parallel strike lines which has “cancelled” written in between them. It is important to cancel a cheque or otherwise, it can easily be misused. If you have to provide a cancelled cheque for any purpose, you need to follow some steps as mentioned below: First: Get a fresh cheque from your chequebook that you want to cancel. Second: Make sure to not write anything over the cheque, including the name of the payee, the amount, or your signature. Third: Draw two parallel lines crossing the cheque. Fourth: The word “CANCELLED” needs to be written in capital letters between the two parallel lines. Make sure the cancelled cheque does not contain any significant information such as the name of the account holder and account number, the IFSC code, the MICR code, the name and branch address of the bank, and so on. If you want to cancel a cheque because of an error made on the cheque, you can do so by following the steps outlined above. Although nobody can withdraw from a cancelled cheque, many fraudulent acts may still occur if the cancelled cheque is mishandled. To be on the safer side, when you give a cancelled cheque, make sure you do not sign it and that you hand it over only to the person responsible for collecting it. What is the purpose of a cancelled cheque? A cancelled cheque can be used for many purposes like opening a bank account, investing in mutual funds, KYC purposes, etc. Below listed are the purposes for which you may be required to submit a cancelled cheque: Know Your Customer(KYC): This is one of the most common reasons for which you need a cancelled cheque. Cancelled cheques are used to complete many KYC procedures as they serve as proof that the concerned individual has an account in the bank. It holds details like the name of the account holder and A/C number, name and address of the bank’s branch in which the person has an account. Opening a Bank Account: A cancelled cheque needs to be submitted at the time of opening a bank account as a part of the documentation process. Investing In Mutual Funds: If you are planning to invest in mutual funds or the stock market, you must have a DEMAT account. When opening a DEMAT account, the company would require you to provide a cancelled cheque to confirm that the bank account linked to the investment is owned by you. According to the Know Your Customer (KYC) regulations, a cancelled cheque is required. Equated Monthly Instalments (EMI): EMI is the most preferred method of payment when purchasing a gadget or a high-value item. Individuals make monthly payments on loans such as vehicle loans, housing loans, student loans, and personal loans. To begin the monthly instalment process, you are required to provide a cancelled cheque as proof of having a bank account. Opening a DEMAT Account: You are required to have a DEMAT account for holding shares in electric form by shareholders. If you want to open a DEMAT account, you’re required to provide evidence of your identity and address. In addition, other KYC documents might include proof of your identity, residency, proof of residence and employment status. which need to be submitted to the stock brokerage in order for the account opening process to proceed. Withdrawal of Provident Fund: If you want to take money out of your Employee Provident Fund, you must provide your employer with a cancelled cheque. Electronic Clearance Service (ECS): ECS is an electronic mode of fund transfer that automatically deducts money from your account every month for any transaction you have done. To set up an ECS from your account, you will have to provide a cancelled cheque. Once your ECS account is set up with the bank, there will be a deduction of money from your account every month. Insurance Policy: Some organizations may require you to present a cancelled cheque when you are purchasing an insurance policy. This is done to verify that the bank information provided by you is correct. [B-01] Wrapping Up When a cheque is cancelled, it cannot be used to access your account or withdraw funds. However, a cancelled cheque still contains your financial information including your name, account number, name and address of the bank’s branch, IFSC and MICR code. So to stay safe, make sure you never sign a cheque that you intend to cancel. If you need help managing your finances, Piramal Finance is here to be your financial guide. Contact us today. Note: Plag is above 10 per cent because of the repeated word “cancelled cheque”
08-11-2023
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