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5 Reasons to Invest in Property This Diwali

It’s the perfect occasion and a time for new beginnings! All over India, Diwali is celebrated as a happy time when good wins over evil. The ritual of buying gold, electronics, and real estate investment during this time of year and making other new purchases is said to bring luck. At this time, home buyers and real estate investors invest in properties. Even though these traditions are a big part of everyday life in India, buying or investing in properties during festivals has more to do with the industry and what it offers. During the festive season, everyone from small shops to large real estate companies has special deals that are hard to beat. They make the market more competitive and save money for people who want to buy a home. [B-01] Let’s look at the top five reasons to invest in a property this Diwali. Top 5 Reasons to Invest in Real Estate Deals and Discounts During Diwali, there are many deals and offers. Also, people believe Diwali will bring them luck, and real estate is a safe investment that pays off well because a lot of money comes in around Diwali. Almost all developers and real estate companies offer big discounts to get people to invest in their properties. During the holidays, there are a lot of sales to attract customers. This makes it easier for people to invest in property they can afford. Real estate developers try to attract customers by offering no or low-interest rates, free domestic appliances, cash back, and no EMIs. Diwali is considered a lucky day You know that Diwali is a festival of good luck, prosperity, and hope that is celebrated all over India. It’s also a great time to make an important decision about investing in a property. Diwali is like a happy fresh start. Most of the time, people plan on making big investments to make their lives more interesting. Investing in a property is a big, profitable, and costly choice. Plus, how could you forget about holiday sales and discounts that could help you do both amazing and cheap things? Yes! Choose the developers with the best deals, but don’t forget to check how reliable they have been in the past. There are many discounts that can also help you save money. It’s common to start new business projects on Diwali Many new businesses see Diwali as the perfect time to start up. It gives buyers a lot of benefits. There are many deals to choose from. When investing in new businesses, it’s also important to find cheap real estate. So, putting money into new projects is like buying a great product for a small amount. During the holidays, a lot of new and interesting projects are started. When the economy is slow, real estate developers try to make more money by selling homes to middle-class people. Since this is the case, now is the best time to look into the wide range of property options at very low prices. Banks lower their interest rates during Diwali Why should banks get behind during Diwali? Banks and developers start many low-interest loan programmes for homes or properties. Banks also offer attractive EMI plans and flexible payment methods with no processing fees. So, Diwali is the perfect time to invest in a property because you can easily get loans with low interest rates. Bonuses and incentives during Diwali Diwali is a time for blessings. Professionals get praise and money for their work. This gives them more money to invest in a property. And this benefit is often what makes people put a lot of money into real estate with various offers and strategies that can be changed. There are many good things about buying real estate. Developers and builders help buyers choose the best property during the festive season. So, make good choices. Which is better, buying or renovating a property? It is always preferable to buy a house rather than renovate one. Renovating a house entails giving your property a new look by refurbishing, redecorating, or repainting it, but why spend so much money on the same estate when you can buy a new one? This is a factor when purchasing a home that is preferable to renovating one. When you buy a house, you can do more with the money than just fix it up and invest it in the same property. When you buy a new property, you know you’ll get a good return on your money because its value will keep going up in the real estate market. Every year, your properties’ prices will go up by 8–12% if you invest in real estate. On the other hand, fixing up your property might make it better, but it won’t make you any money. Should You Buy or Rent a House? It is always preferable to buy a home rather than rent one because: Investing in a property has more financial advantages than renting one. For starters, if you want to relocate, you can always sell it for a profit or rent it out to generate positive cash flow. With your own home, you didn’t have to worry about rising rents or abruptly leaving. Buying a home gives you a sense of security while renting eats up your money over time. Section 24 of the tax code provides a tax break of up to Rs. 2 lakhs if you buy a home and pay off a loan. If you’re a first-time purchaser, you can take advantage of the “Pradhan Mantri Awas Yojana,” which gives you discounts of about Rs 1 lakh to Rs 3 lakh, depending on how much your property is worth and how much you’ve borrowed. [B-02] Conclusion Given how well the Indian real estate market has been doing lately, investing in a property could be one of the best choices you ever make. Real estate investments are also the best way to protect against inflation. The investment allows you to live a luxurious life, plan for your future, and leave something for the next generation. But you should be careful when you buy a house. Don’t just chase after what’s being offered. Use your mind and intelligence. Look at the price and the condition of the property as well. Whether the asset’s value is real or only on paper, buying a house takes your whole life’s savings. You should also look at the developer’s past work when making your choice. For more information, visit the Piramal Finance website and explore their products and services.

08-11-2023

Other

The Best 5 Commodities to Trade in India in 2022

Commodities include various metals, food, and other forms of energy. Commodity trading includes minerals, metals, agricultural goods, and energy. Some examples of commodities are these. The classification of commodities is now done using these four basic categories. Agriculture includes edible oils, oilseeds, grains, pulses, and spices. Platinum, gold, and silver are the three most valuable metals. Thermal coal, natural gas, Brent crude, and crude oil may all be converted into usable forms of energy. Chickens and other domesticated animals serve as meat sources and livestock. Metals and energy are actively traded in the commodities market, which shows market activity. Because of the following criteria, the five commodities above represent the most active trading in the market. The commodity market price will change in response to shifts in both supply and demand. [B-01] Cotton An outstanding commodity trading example is cotton. It may be obtained from the wild, and although being in its natural condition, it can be used for a variety of purposes. Cotton is most generally known for its application in the textile industry; however, it also has a wide variety of other applications, including that of animal feed and a source of oil that may be used in the production of goods such as soap, rubber, margarine, and plastics. Paper money and bandages are both made from the fibres extracted from cotton linters, a byproduct of the cotton processing industry. India, China, and the United States are three of the most important cotton-producing countries in the world. The value of a single cotton contract is equivalent to fifty thousand pounds of delicate fabric made of cotton. In 17 days, the cotton futures market is anticipated to open for trade. Cocoa Cocoa may be best known for its role in the production of chocolate, but the butter extracted from cocoa beans also has several applications in the cosmetics industry. The warm and humid atmosphere of the tropics is ideal for the growth of cocoa trees. Beans are grown in West African nations, Latin America, and Indonesia. West African countries are responsible for the bulk trading of bean harvests. It takes a lot of hard work to grow cocoa beans and then process them. Thus most farms that do this are small family operations. There is a possibility that climate change and political instability in cocoa-producing nations will have a bigger influence on the supply than they otherwise would. Silver Silver has a stronger heat conductivity than copper and is a superior conductor of electricity. On the other hand, its use is not nearly as widespread because it is not as abundant as copper. The vast majority of silver is obtained as a byproduct of the mining of other metals, most often zinc, lead, copper, and gold. Peru, Mexico, and China are the top three countries in silver commodity trading production. Silver has a long history of being used to create silverware and jewellery. Still, in modern times, the production of batteries and photography equipment is where silver is most generally linked. The value of silver is established by the numerous applications of silver in the commodity trading industrial sector as well as silver’s status as a precious metal. The amount of silver that constitutes one silver contract equals 5,000 troy ounces. Gold Gold is both a means of trade and a store of value that is utilised extensively. It has been used as currency for a very long time, and the fact that it is relatively rare compared to other metals makes it an attractive alternative to more volatile paper currencies. In high-end electronic components, gold is employed because of its conductivity and corrosion resistance. The value of gold is more consistent than the value of other commodities, and the fact that its price is on the rise is evidence of a healthy economy on a global scale. When the most important commodity trading economies in the world are struggling, investors seek refuge in gold as a hedge against economic uncertainty, which drives up the price of gold. Gold reserves held by central banks provide a foundation for the value of paper currencies. The cost is shown in a single ounce of gold troy weight. Natural Gas Natural gas in its gaseous state is burned as a fuel in every region of the world. Gasoline may be found in oil deposits, and its most common use include heating, cooking, and electrical power generation. The price of natural gas is highly responsive to unexpected shifts in the supply and demand of the market. Even though suppliers frequently boost output in response to rises in price, the situation is reversed when prices decrease. Brent Crude Oil WTI Crude Oil, one of two standards for crude oil, has developed into a worldwide commodity. West Texas Intermediate (WTI) is a kind of crude oil produced in the United States and gets most of its supplies from the state of Texas. Brent Crude, the world’s second-most-used oil standard, is less heavy, sweeter, and more refined than WTI. The refining process is easier and costs less when crude oil contains less sulphur. The extraction process known as fracking has lately expanded the WTI oil supply in the United States. Locationally closer to main markets in Europe, Africa, and Asia, Brent Crude has the edge over WTI. [B-02] Exactly which commodity has the biggest amount of trade? Brent Crude Oil, similarly to the other benchmark crude oil, WTI, is largely processed into transportation fuels like diesel and gasoline. Because of their usefulness in building a diversified portfolio, commodities have recently gained in popularity as an investment vehicle. Commodity trading futures contracts are the most popular form of commodity trading, however other techniques are used by certain dealers. Start trading with loans from Piramal Housing Finance in 2022 and have access to the greatest commodities to trade in India.

08-11-2023

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Key Differences Between Atal Pension Yojana (APY) and National Pension System (NPS)

During retirement, one typically stops working and therefore does not have a steady stream of income. The government provides two pension programmes to encourage saving and investing for retirement: National Pension System and Atal Pension Yojana. One must choose a scheme depending on personal preference, as they are distinct from one another. While it’s true that both plans can help ensure you have enough money in retirement, they do it in different ways. [B-01] What is the NPS scheme? Initiated by the government, the National Pension System (NPS) scheme is a retirement savings programme with a long-term focus. Employees in the public, private, and unorganised sectors are eligible to participate. It is managed by the Pension Fund Regulatory and Development Authority. You will have to make payments into a pension account throughout your work life as part of the programme. You can contribute till 60 years of age. After retiring, you will be eligible to withdraw a portion of the fund. The remainder will be distributed to you in the form of monthly pensions. If you have a low-risk tolerance, you can take advantage of this opportunity to put your money somewhere secure. The NPS scheme provides its participants with access to four distinct investment funds and two distinct investing strategies. You can select the Auto pick strategy and risk profile to have your money invested across all four funds offered. The scheme’s return is market-dependent. At the end of the term, you can take a lump payment of up to 60% of the collected corpus. The remaining 40% will be distributed to you as an annuity for the rest of your life. What is the Atal Pension Yojana? The unorganised sector now has access to a pension programme because of the Atal Pension Yojana. The major objective of the system is to safeguard Indian citizens against disease, accidents, and other disasters. It is the responsibility of the Pension Fund Regulatory Authority of India to oversee the funds contributed to the pension plan in India. You have until you turn 40 to invest, and then when you turn 60, you will get the money from the scheme. You can choose from five different pension amounts ranging from Rs. 1000 to Rs 5000. You decide how much of a pension you’ll need when you retire. The amount you need to pay to the system is determined by your age, the pension amount you select, and the contribution frequency you select. The assured pension amount will be paid out throughout your and your spouse’s lifetimes once the plan matures. Similarities and differences between the NPS scheme and APY scheme There are a lot of similarities between the Atal Pension Yojana as well as the NPS scheme. To name a few: Each plan is designed to help you save for your golden years in retirement. The Pension Fund Regulatory and Development Authority oversees both programmes (PFRDA). Both the NPS and the APY provide a guaranteed lifetime income stream for retirees once the schemes reach maturity. You can deduct up to INR 1.5 million from your taxable income if you contribute to both programmes per Section 80 CCD (1). Contributions to any programme up to INR 50,000 are eligible for a tax break per Section 80 CCD (1B). Any money you take out of either plan as a pension will be subject to income tax at your rate. The differences are laid out in the following table, which should help you better understand them: FeaturesNPSAtal Pension YojanaMembership Eligibility AgeThe lowest age to join the NPS scheme is 18 and the maximum is 60.The minimum age to join Atal Pension Yojana is 18 and the upper age limit to participate is 40.The plan’s takersInvestment in the NPS scheme is open to both Indian nationals and non-resident Indians.Investment in the Atal Pension Yojana is restricted to Indian citizens and permanent residents.Retirement IncomeNPS cannot ensure a retirement income.A secure retirement income is yours to count on thanks to the Atal Pension Yojana.Tax BenefitWhen contributing to an NPS account, investors can receive a tax credit of up to Rs. 2 lakhs.There are no tax advantages for participating in the Atal Pension Yojana.WithdrawalsWithdrawals before their due date are only permitted from Tier 2 accounts.You cannot access your funds before the conclusion of the term under the Atal Pension Yojana. Withdrawals may be considered in the event of the investor’s untimely death or serious health problems.Account TypeTiers 1 and 2 accounts are available to NPS participants.To participate in the Atal Pension Yojana, a single account is required.InvestmentsInvestors in the NPS have access to a variety of investment vehicles.No freedom of investment choice is provided by Atal Pension Yojana.Fiscal Support From the GovernmentUnlike traditional pension plans, NPS requires all contributions to come solely from the investor.As an investor in the Atal Pension Yojana, you will receive financial backing from the government. [B-02] Same but different: Choose your retirement investment wisely Atal Pension Yojana, like the NPS scheme, is an investment scheme that will help you financially in retirement. One may be forgiven for thinking there is no distinction between the two retirement plans, given that both were created by the Government of India and thus are available to the public. However, this is not true. There are essential distinctions between the two systems. We hope this blog has been helpful for your clarity and eases your decision-making process. For more information or to know how to apply online to the Atal Pension Yojana or the NPS scheme, be sure to explore the Piramal Finance website and explore their products and services for the same.

08-11-2023

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What is Delivery Margin- All You Need to Know

Delivery margin is the margin that you need to pay if you want to buy shares on the stock exchange (BSE or NSE) and hold them in your Demat account. The delivery margin is the only amount that you need to pay at the time of buying stocks from your broker. SEBI has made it mandatory for brokers to collect a 20% delivery margin on every share transaction. This rule is also applicable to intra-day trading and futures trading. If a broker violates this rule, he may face penalties from SEBI or even jail time. You can find out the delivery margin component applicable to every stock by going through the contract note provided by your broker. [B-01] Understanding margin for delivery trading can save one from running into a lot of trouble during their investing journey. Meaning of Delivery Margin Delivery margin is the margin that you need to pay if you want to buy shares on the stock exchange (BSE or NSE) and hold them in your Demat account. The concept of margin works like this: You are borrowing money from your broker to buy a stock. Your loan amount will be used as collateral, while still allowing yourself some room for profit or loss during trading activity. The difference between the price at which you sell and what it costs to purchase an instrument will be called the “delivery margin.” The margin is the only amount that you need to pay at the time of buying stocks from your broker. The delivery margin is the only amount that you need to pay at the time of buying stocks from your broker. The delivery margin is calculated daily, and it’s always higher than the prevailing market price. The concept of delivery margin was introduced in the 1970s when exchange-traded funds (ETFs) came into being. When an investor purchases an ETF through a broker or directly from an index provider, they can choose between two options: buy-and-hold or day-trading (or ‘margin’). The latter involves borrowing money against their assets in order to profit while holding them for longer periods of time without selling them immediately because doing so would result in capital losses due to price fluctuations over time. SEBI has made it mandatory for brokers to collect a 20% delivery margin on every share transaction. This rule is also applicable to intra-day trading and futures trading. The delivery margin is a fixed amount that you need to pay at the time of buying shares from your broker. In other words, it does not apply to stocks that you hold in your Demat account (such as mutual funds). It is only applicable to stocks that want to be sold and delivered by their respective brokers. To understand how delivery margin works, let us look at an example: ● Before peak margin, you received a 100% sale benefit the same day you sold any shares that anyone could use to buy more stocks using the sales credit. ● Explanation: On Day 1, you traded shares of ABC Ltd. valued at Rs. 1,000,000. As a result, you received Rs 1,000,000 in Sale Benefit, which you can use to purchase additional stock. ● When you trade any shares today, after the peak margin, you get an 80% sale incentive the same day. After deducting all due amounts, the remaining 20% will be blocked as a delivery margin and credited to your Demat account on the subsequent trading day. This difference in the amount is called the delivery margin, which happens before and after the peak margin. In case a broker does not follow this rule, he can be penalised by SEBI. If a broker does not follow this rule, he may face a fine of up to Rs 10 lakh or more from SEBI. There are several things that you need to know about delivery margin and how it works. Here’s an overview: ● Delivery Margin means the difference between what you pay for buying shares and what you get them sold for (needless to say, this amount is also known as “commission”). It represents your profit/loss on each trade made by your brokerage company. ● It is a safeguard so that you don’t run into any financial fiasco while trading and have no money left over to pay for the traded stocks or the loss. Important points about delivery and trading These are some summarised points from the above discussion about the delivery margin: ● You can find out the delivery margin component applicable to every stock by going through the contract note provided by your broker. ● The delivery margin is the only amount that you have to pay at the time of buying stocks from your broker. It is also called a brokerage charge, deposit or commission. ● Delivery margin is calculated based on how much money you want to invest in your portfolio and how much profit/loss you would like to earn on that particular stock. So, if someone wants to invest Rs. 10 lakhs, he will be charged around 20% of his investment amount as delivery margin (Rs. 2 lakhs). ● Delivery margin is only applicable on stocks that you hold in your Demat account. This means that it will not apply to shares that you have sold to the broker or any other person. [B-02] Conclusion This comprehensive guide on delivery trading was meant to clear any doubts that one may have about margins for delivery trading in the simplest language using the appropriate examples and definitions. You must be clear about the delivery margin after reading this piece, and if you want to read more articles on finance, you should read more finance-related articles on Piramal Finance for any type of information related to loans or investments.

08-11-2023

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Things To Know About The Payment of Gratuity Act 1972

The Payment of Gratuity Act 1972 is a law that entitles employees to be paid gratuity after working for 5 years or for any period of more than 5 years. The maximum amount payable as gratuity is now Rs. 20 lakh after the recent change under Section 10(10). However, an employee is eligible for gratuity after resigning with a notice period of at least one month and leaving the company before their last day of work. If they have resigned due to some reason, such as illness, accident, or death in the line of duty, they can be deprived of benefits that come under the payment of gratuity act 1972. [B-01] To get a gratuity, an employee must have worked for 5 years. If you are an employee, and you want to get a gratuity from your employer for 5 years, you must know about the following about the Payment of Gratuity Act of 1972: ● There must be a minimum of 5 years of service. ● You cannot get gratuity as an employee if you have been disabled during this period. ● The period can be less than 5 years if there are specific circumstances under which you need to work for less time than what would normally be considered as required by law (e.g., in the case of a long illness). An employee with disabled children can get a gratuity even if they have worked for less than 5 years. If you are an employee with disabled children, then it is mandatory to give them the benefit of the payment of gratuity act 1972. In such a situation, your employer cannot refuse to pay gratuity, even if you have worked for less than 5 years. This is an offence if they elope from here. However, there are certain conditions attached to this benefit, and these include: ● The employee must have worked for at least three continuous months during his or her months of service. ● The deceased employee must have died within one year from the date of retirement from service or from any other cause other than illness or injury arising out of or in connection with their employment (including any period before retirement). In case of death, gratuity is paid to the nominee or the legal heir of the employee. In the event of death, the gratuity is paid to the employee’s nominee or legal heir. The nominee is defined as a person who has been nominated by an employee and has been accepted by him/her. The legal heir is defined as either: ● A family member of such an employee who has been nominated by them, or ● An individual having some other relationship with such an employee whom they were not able to nominate due to physical or mental incapacity. The payment of gratuity act 1972 has allowed employees to avail themselves of many different benefits that were not available to them before. It allowed them to express their labour rights in the country and gave them the recognition they deserved. An employee is eligible for gratuity if he has resigned with a notice period of at least one month. An employee is eligible for gratuity if they have resigned with a notice period of at least one month. This is a vital rule that you must know. ● The employee must be eligible for gratuity, which means that they must have worked for five years continuously for any one company. ● The minimum notice period should be at least 30 days, but it can be extended to 60 days by mutual consent of both parties concerned. The payment of gratuity act 1972 also recognizes the rights of the employees as well as the employer in a way that no employee can take ungranted benefits of the act to exploit the terms in their favor. This shows the thorough consideration of making details right that has been shown while implementing the act. The maximum amount payable as gratuity is Rs 10 lakh. The maximum amount payable as gratuity is Rs. 10 lakh, which has recently been increased to Rs. 20 lakh under Section 10(10). This is good for the public. People are happy with this. The general public wants this to stay. Gratuity is paid to the employee or their nominee in case of death, making sure that even if the gratuity benefits are not availed of by the employee, their family can enjoy the benefits under the Gratuity Act of 1972 and live a good life. Employees are eligible for gratuity after working for 5 years or, in specific cases, less than 5 years. ● Employees are eligible for gratuity after working for 5 years or, in specific cases, less than 5 years. ● Gratuity is paid to an employee after 5 years of continuous service and on his death or retirement. ● If an employee has been employed for less than five years, they shall be entitled to receive a lump sum equal to 50% of the final wages earned during that period. These specific cases are very rare and shouldn’t be taken advantage of, as you can land in serious trouble if you try to infringe on the data to avail yourself of some illegal benefits. [B-02] Conclusion The Payment of Gratuity Act 1972 is meant to protect employees from exploitation by employers. After the implementation of this act, many employees that were previously laid off without any prior reasoning or benefits will be able to take some benefits out of the job they spent so much time on. The law provides that an employee who has worked for 5 years can claim gratuity, and if they have retired due to disability, then the amount of gratuity will be paid even after retirement. If you are one of the people who want to understand the gratuity benefits further, you must check out the other blogs that will help you invest the money in the right way. All the blogs and even the gratuity calculator are available on Piramal Finance. They have the largest collection of finance-related blogs that can help you in your financial journey ahead. This will enhance your knowledge.

08-11-2023

Schemes

Know All The Benefits Of National Pension Scheme (NPS)

Investing your money is the best way to enhance your financial security and increase your worth. If you invest your money in the right scheme, it gets multiplied over time and ends up being a big corpus. With so many investment schemes on the market, it can be difficult to select the best one. However, with the correct know-how and the right strategy, you can find the best investment scheme that suits your needs. The National Pension System is one of many lucrative investment options that offer reasonable returns with lower risks. The Government of India came up with this initiative to provide social and financial security for the retired working class. Well, today’s article is all about the National Pension System, its benefits, the kind of returns it provides, and the reasons why it is or isn’t a good option for you to invest in it. [B-01] NPS: meaning and significance PFRDA, or the Public Fund Regulatory and Development Authority, came up with the National Pension System to increase the social security of the retired class of the country. This pension programme enables you to invest your money in it at regular intervals, which builds up into a corpus after your retirement. This scheme not only addresses the employees of the government sector but also addresses the workers in the unorganised and private sectors. After your retirement, this scheme will provide you with a salary in the form of a pension throughout your life. Besides this, the government of India introduced different tax-saving protocols under the National Pension System to encourage more and more people to invest in it. The NPS returns are quite satisfactory as well, which is why you should give it a try. What are some of the striking benefits of investing in the National Pension System? There are several benefits to investing in the National Pension System, and some of the most significant are: Decent rate of interest: The rate of interest obtained by investing in the National Pension System is around 9% per year to 12% per annum. In comparison to other investment schemes like the Public Provident Fund (PPF) and Employee Provident Fund (EPF), which provide 7.1% and 8.1% per annum, respectively. Low-risk factors: Investing under the National Pension System is considered a low-risk investment option, as the percentage of cap equity is about 50%. This, therefore, balances out the risk-to-return equation. In the coming future, PFRDA claims to reconsider the cap on equity percentage and increase it to 75%. Tax Benefits: Under Section 80(c) of the Income Tax Act of 1961, the contribution you make through your salary and Dearness Allowance is subject to a 10% deduction. In addition to that, the National Pension System provides dual tax benefits as well: Investments up to an amount of 1.5 lakh rupees can be used to avail of tax benefits under Section 80(c) of the Income Tax Act, 1961. An additional exemption of 50 thousand rupees is also applicable to voluntary contributions under the same provision. Flexibility: If you are uncomfortable or dissatisfied with the current scheme, you can apply for another scheme that meets your needs. Also, you have the option to change your fund manager if your current one doesn’t cooperate. Economical: Even if you do not save much money after your monthly expenses, you still have the freedom to invest in an NPS account. The National Pension System encourages all types of investments and allows a minimum contribution of Rs. 500. For a whole financial year, the minimum contribution under the NPS scheme has to be at least 1000 rupees. What are the downsides of investing your money in the National Pensions System? Unfortunately, there are some downsides to investing in the National Pension System: Low equity exposure: The equity exposure of the National Pension Scheme is low, which happens to be a big disadvantage. If you have reached the age of 50, you will now be able to reduce your equity exposure by 2.5% per year. By the time you reach the age of 60, your equity exposure will have fallen to 50%. Limited Withdrawals: You can only withdraw 25% of the corpus you have built under the National Pension System, provided that you have covered 3 years of investment. Also, you are only allowed up to three withdrawals throughout the investment period, which is generally within a time gap of 5 years. Account opening restrictions: There are account opening restrictions that restrict you to opening only one NPS account throughout your lifetime. This is also a big disadvantage for investors who prefer multiple-account investment schemes. [B-02] Summing it up: Investing in NPS is a good idea for you if you are a salaried individual who is planning for early retirement and a long-term investment scheme. But, if you are someone who prefers a short-term investment option and higher returns, then investing in the National Pension System might not be a good option for you. So, whether or not to invest in NPS boils down to an individual’s level and personal requirements. In case you like reading articles and write-ups related to different investment schemes like NPS, PPF, mutual funds, stock market investment, etc., you should visit Piramal Finance.

08-11-2023

Stocks Markets

Know all about Online Share Market Trading

What is Share primary-share trading? Why is the world crazy about it? Is that profitable? “Share trading” refers to the act of purchasing and selling stock market shares of firms. A digital trading platform is used when you purchase or sell stock online. You may buy and sell stocks, bonds, mutual funds, and other assets without going via an agent or broker by opening an online share trading account. [B-01] Stock Purchase: What Happens Next? When someone does primary-share trading, they have a claim to a portion of the company’s future earnings. If a corporation issues 1,000 shares and the investor holds 100, the investor owns 10% of the corporation. Thus, shareholders can participate in the organization’s management and vote on crucial issues. Even if this benefits employees, the typical retail investor will gain more from the potential that the share price will rise on the stock market. Hence, dealers attempt to profit by trading shares for more than they paid. But this begs the question: What causes stock values to fluctuate? What Happens in the Stock Market? The market’s reaction to how many shares are for sale and how many individuals desire to acquire them determines share prices. People will want to acquire additional shares of a firm if they believe it will perform well financially. This will raise the price. When many individuals dislike a corporation, more shareholders will sell their shares, pushing the stock price down. Investors who want to maximize their profits will either buy and sell on the same day (intraday trading) or establish a position and hold it for an extended period before selling. Following that, we’ll discuss whether it’s preferable to trade or invest in the stock market. The Significant Distinction Between Speculative Trading and Long-Term Investing When people speak about trading, they mean buying and selling stocks quickly. For example, you square your position after the trading day. On the other hand, investing is the purchase of a company’s stock with the goal of holding it for a longer period of time (weeks, months, or even years) before selling it. Day traders, also known as intraday traders, must sell whatever they hold before the market closes for the day. If open positions are not closed, the market closing price is used to settle them. If you wish to trade or invest in primary-share trading, you must understand when shares may be purchased and sold. When Does the Indian Stock Exchange Open and Close? India’s two major stock exchanges are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Monday through Friday, the stock markets of both exchanges are open for trade at 9:15 a.m. and 3:30 p.m. local time. How Can You Get Started in the World of Trading? The first step to entering the trading market is to create a trading and demat account. It is only feasible to enter the stock market with prior knowledge. Your stockbroker will assist you in opening a trading and demat account if they are authorized by the Securities and Exchange Board of India (SEBI) and the stock exchange. The trading account connects with the stock market, whereas the demat account is used to keep digital copies of shares. In share market trading and online share trading, both are required to make money on the stock market. To create a bank account, you will need a Permanent Account Number (PAN) card and verification of who you are and where you reside. You may begin trading when you create a trading and demat account with primary-share trading Financial Securities offers a paperless trading and demat account opening procedure that takes a few minutes. Remember the following steps: Get the registration form for a new account here. Fill in your name, phone number, email address, and Permanent Account Number in the appropriate boxes (PAN). Please provide me with your full address as well as the location of your bank. You may choose to pay once a year. A picture ID, a cancelled check, a bank statement, a utility bill, and a tax return should be included in your KYC paperwork. More evidence of income is required for futures and options trading. Record yourself on video to prove you are who you claim to be. Complete the online form, and the Aadhar database will email you an OTP to your phone. Please submit your application. Increase the amount of money in your trading account: You’ll instantly get your username and password after creating an account. Log in and go to your account’s money area to transfer money. The bank account you pick will be connected to the trading account when you sign up. Transfer some funds from that account into the trading account. (You may also be able to get the money back into your bank account.) Open a Trading and Demat Account Estimator of Commission Discover how the market works. Learn all there is to know about an IPO: You may “watch” your favorite firm, keep an eye on its pricing, and then purchase shares anytime you like. Stock Trading Investment Brokerage Fees: Your stockbroker will charge you commissions or fees when you purchase or sell shares on the stock market. As a brokerage fee, full-service stockbrokers charge a percentage of the trade’s value. The prices are higher since they provide additional services, such as stock recommendations, guidance, and customized reports. Conversely, discount brokers offer their clients trading accounts, demat accounts, and the necessary tools to make their own trading decisions. As a result, fees are often low and are charged as a flat rate for each transaction rather than as a percentage of the total. Traders that utilize our primary-share trading benefit from a flat charge per transaction, which saves them a significant amount of money compared to typical brokerage costs. You might gain money to help you attain your objectives by trading stocks. When trading stocks, the more you know, the more money you can earn. [B-02] Summing-up: The purpose of this article is to give a comprehensive examination of primary share trading. The price of a company’s stock is determined by the number of individuals who desire to purchase and sell it. As a result, unfavorable news regarding a firm might cause its stock price to plummet extremely fast. Traders may close their positions or remain in the market indefinitely. Market changes may be beneficial if they are regularly monitored. Investment Reliable does not offer financial advice, but we do provide unbiased information and evaluations on trading, investing, and finance. Users ought to always carry out their own research. Also visit, Piramal Finance for more in-depth, educational articles.

08-11-2023

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Difference Between FD And PPF

It’s tough to plan ahead when you’re young and saddled with a lot of debt. But if you don’t start saving now, you’ll have to work longer and harder as you get older in order to afford to retire when you want to. Fortunately, savers of varying ages can choose from several viable solutions. Most people who are interested in investing want to put their money somewhere secure. Investors in India can choose between two relatively risk-free options: the Public Provident Fund and Fixed Deposits, both of which offer a variety of perks and advantages to entice new customers. Low-risk investors can benefit from either financial product. [B-01] What Sets FD Apart From PPF People seeking low-risk investment alternatives can consider opening an FD or a PPF. An advantage of opening a Fixed Deposit (FD) account is the certainty of the returns you may expect to get. The interest rate earned on the deposit amount is unaffected by changes in the market. With a fixed deposit, you may pick a term that works best for you and your needs. An FD can be opened at any financial institution, including banks, non-banks, and money markets. Since the Government of India backs the Public Provident Fund (PPF) system, there is no risk involved in investing in it. The lock-in periods for PPFs are longer than those for FDs. You can take advantage of a PPF and open it at any financial institution to reduce your taxable income. Learning the distinctions between the two will aid in making a wise choice. What is a PPF, and Who is it Intended For? The government backs long-term investment schemes called Public Provident Funds (PPFs). Accounts have to be renewed annually at a predetermined rate to keep them operational. This PPF account can be used to save for retirement or other long-term goals, such as purchasing a home or funding a child’s education. Investments in the PPF are ideal for those who want stable returns over the long term. The initial PPF commitment duration is 15 years, with a further 5 years available for extension. You can also deduct your PPF contributions from your taxable income under Section 80C. PPF Advantages and Features Having a PPF account allows you to deduct contributions from your taxable income, which is one of the major advantages of the scheme. Any bank, non-banking financial institution, or post office can open a PPF account. Consider these advantages as you weigh the pros and cons of a PPF investment: Because the government of India backs the PPF, investors face less of a threat when putting their money in it. Allotment of nominees is permitted. Demand drafts, wire transfers, checks, and cash are all acceptable deposit options. The plan has a 15-year time frame. Deposits can be made for as little as Rs. 500. One of the perks of this plan is that it’s tax deductible. What is an FD, and Who Does it Serve? Financial institutions like banks and non-banking financial corporations (NBFCs) typically provide fixed deposits as a means of saving and investing. An FD calculator can help you determine the exact amount you will receive at maturity and the interest you will earn on your investment. An FD’s interest rate is typically between 8% and 9%, which is greater than the rate offered by most banks and NBFCs for standard savings accounts. So, if you’re looking for a safe way to put money down, a fixed deposit is a good alternative. Investing in such a way ensures a steady income stream, regardless of how the stock market performs. FD Advantages and Features Because market changes do not affect FD interest rates, they are a reliable investment option. Section 80C of the Income Tax Act of 1961 allows for tax savings through the use of tax-saving FDs. The following are some advantages to putting money into a fixed deposit: Some types of fixed deposits qualify for tax exemptions. Senior citizens get a higher rate of interest than other people. A fixed deposit (FD) can be reinvested for a steady stream of interest payments over time. Benefits include assured returns. Flexible term choices are available to meet your needs. How are FD and PPF Interest Rates Calculated? For PPF: Interest rates are set by the Finance Ministry. This interest rate is disclosed every three months. Interest accrues on the PPF balance and is distributed annually on March 31st. It would be helpful if you put money into your PPF account on or before the 5th of every month. This is because the interest accrued each month is determined by how much money was in the account between the 5th and the last day of that month. For a FD: A fixed deposit has a rate of interest that is established at the time the account is opened. The interest rate on the deposit will not change at any time. You can use tools like an online FD calculator to determine the FD interest rate. PPF versus FD: Which is Better for Investing? There is no risk involved with either a Fixed Deposit or a Public Provident Fund, and both can provide respectable returns once they reach maturity. Fixed Deposits are preferable to Public Provident Funds due to greater term flexibility and somewhat higher interest rates, but the decision ultimately comes down to personal preference. [B-02] Fixed Deposits are a superior short-term investment alternative to PPFs since individuals can access lending facilities against them immediately rather than after a three-year waiting period. Those with the luxury of time on their side might diversify their investment portfolios by putting money into both Fixed Deposits and PPFs. To read more such articles, visit the Piramal Finance website.

08-11-2023

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Know More About How Cryptocurrency Prices Fluctuate In Market

Cryptocurrency is a word we frequently hear today. It is often the case that you must have come across terms like “cryptocurrency,” “Bitcoin,” “Ethereum,” and many others like this. There are innumerable posts about cryptocurrency on social media. Also, news outlets are filled with reports about the cryptocurrency market. Everybody is talking about it. But what is it? In this article, we will try to understand cryptocurrency. We will also talk about how and why the prices of cryptocurrencies fluctuate. [B-01] What is cryptocurrency? Cryptocurrency, as the name suggests, is a currency that is encrypted. In simple terms, it is a currency that exists virtually or digitally. And it uses cryptography for highly secured transactions. Unlike regular currencies like dollars and rupees, which are regulated by the Federal Reserve of the USA and the Reserve Bank of India, respectively, cryptocurrency is decentralised. Cryptocurrency doesn’t require a bank to issue and verify transactions. Instead, it can be done between two parties from anywhere in the world with the help of blockchain and the internet. One difference between fiat (traditional) currency and cryptocurrency is that the latter’s value fluctuates a lot more than traditional currency. Why does the cryptocurrency price fluctuate? There is no regulatory authority to stop prices from fluctuating in the cryptocurrency markets. Hence, they are highly speculative. Cryptocurrencies, therefore, trade at a more uncertain rate than stocks. This fluctuation, however, could be a good thing for many. You could make a decent amount of money if you buy and sell them at the correct time. For example, if you had bought $20 worth of bitcoin in 2011 and held them until 2021, you would have made $60,000. The inverse of this, however, is also true, and you must be very vigilant when trading in cryptocurrencies. The following factors are the primary causes of cryptocurrency price fluctuations in the market. Hype and speculation The biggest factor that contributes to the fluctuation of cryptocurrency is hype and speculation. When a new cryptocurrency is launched, it experiences a lot of interest as people hear about it for the first time. This drives up the price of the cryptocurrency. As more and more people buy the new cryptocurrency, it shoots up the price of that cryptocurrency to an unsustainable level. Once people realise that the price of the cryptocurrency has been overvalued, they start selling it. And that results in a steep drop in its price. Seeing this, others also start selling it too. And this causes that particular currency to crash. This is all quite common for a cryptocurrency. Bitcoin, for example, was free at the beginning and has gone to a high of $65,000 in November 2021. Celebrity influence Celebrity endorsements are another major driver of cryptocurrency prices.It is often the case that a new cryptocurrency hires a celebrity or influencer to promote its coin. Backed by these celebrities, the new cryptocurrency imparts a sense of security to its investors. That results in the price of the coin going up. However, soon people will realise that the celebrity endorsing the cryptocurrency was paid for the endorsement. They get to know that the celebrity doesn’t believe in the credibility of the coin. It is then that the currency crashes. The biggest example was Elon Musk’s endorsement of Dogecoin. In March 2021, the Tesla and SpaceX-owning billionaires started endorsing Dogecoin. That resulted in its price going from 0.055 to 0.64. It was an increase of more than 100 times. Dogecoin, however, took a nosedive after Musk and his mother Maye appeared on the US comedy show Saturday Night Live and joked about Dogecoin. The unconventional businessmen’s mother, doing a segment on the show, said, “I’m excited about my Mother’s Day gift. “I just hope it’s not dogecoin!” As soon as people heard the joke, the price of Dogecoin fell from 0.64 to 0.20 in a month. Supply and demand The price of a cryptocurrency also depends on the supply and demand of that currency. For example, when more people want to buy a specific cryptocurrency, the value of that coin increases. Since more people want to buy that coin than there are people available to sell it, the value of that coin shoots up. After a significant price rise, many holders see it as an incentive to sell and gain a massive profit. This is when many start selling their share of the cryptocurrency, and soon the number of sellers outnumbers the number of people willing to buy. Naturally, the price of the coin drops massively. Crypto Whales Crypto Whales is a term used for large holders of a specific cryptocurrency. These “whales” hold a large number of coins. As a result of the huge quantity, they have significant power to move the market in their favour. For example, if a person holds 25% of the entire cryptocurrency, he could make the prices drop massively by selling all of his stock at once. This huge price drop will further encourage others to sell cryptocurrency. This chain of events will further crash it. Similarly, a whale buying a large quantity of cryptocurrency will make the price of that specific currency go up significantly. And that will make other individual buyers start buying. This, in turn, will raise the price. [B-02] Conclusion It is evident from the past decade that cryptocurrency is very volatile. One moment it’s going down, and the next it could start rising based on the above-mentioned factors. This is why you should do proper research before investing in a cryptocurrency. You must also keep an eye on the developments around that specific cryptocurrency, which could make its price go up or down. Not just that, but you must also diversify your investments in cryptocurrency so that you are safe when a specific cryptocurrency crashes. Other than that, you must also be prepared for cryptocurrency volatility and expect the market to go up or down. You should only invest the money that you can afford to lose, never the entirety of your savings. You can get more ideas about cryptocurrency on the website of Piramal Finance.

08-11-2023