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Mutual Funds

How to Use Mutual Fund Investment for Financial Planning

Many people find finance fascinating, particularly those working in other unrelated fields. People get fascinated by the simple idea that their money can work for them. However, it’s more challenging than it seems. To get better outcomes, you have to plan finance and then make investments. The first requirement is that there must be enough funds and other resources to enter the markets. It would be best if you could find some specific investment opportunities. Making profits from those opportunities requires complete research, analysis, and discipline. According to Economic Times reports, mutual fund investors earn 6.5% annually. It may vary based on the period of the investment they made. Mutual Funds are expected to hit $100 trillion by 2028. Many people today might have the money, time, and other resources to get ahead in such activities. It’s better that you do proper research to plan your financial strategy and invest in mutual funds for better returns. Let us briefly learn about mutual funds to boost personal financial planning. [B-01] What are Mutual Funds? A mutual fund is people pooling money together for a specific period and investing in various securities. You can buy mutual fund ‘Units’. Units of a mutual fund scheme represent investors’ share of holding in the scheme. The stakes are selected based on personal financial planning and the scheme’s investment goal in mind. It is something you buy with money gathered from other investors. A fund manager manages and invests the gathered money in financial assets like stocks, bonds, etc. A team of experts monitors the mutual fund and gives financial advice to the investors. The Securities and Exchange Board of India (SEBI) is the administrative body over Mutual Funds in India. It has appointed the Association of Mutual Funds in India (AMFI) as a primary regulator of mutual funds. AMFI is a non-profit organization that monitors mutual fund operations in India. Types of Mutual Funds There are several types of Mutual Funds that attract investors. Mutual Funds are classified based on asset class, speciality, structure, and returns. The types of Mutual Funds in India are listed below- Growth Funds These schemes primarily invest money in equity stocks to provide profitable returns. They are considered ideal for investors with long-term investments. Investors usually need a 5 to 10-year investment period and risk-bearing in growth funds. Equity Funds These funds make investments in equity stocks and company shares. Equity funds are considered to be having a high risk-to-reward ratio. The size of the equity fund is predicted based on Market Capitalization. Equity Mutual Funds are classified by Investment Strategies. The results of those techniques are reflected in the equities they own. Index Funds These are funds that invest in securities. They usually represent a specific index to predict the movement and returns of the index. The market will exceed any individual investment over the long term. Index funds aim to match the risk and return of the stock market. Money Market Funds These funds invest in ready-to-trade securities, such as Treasury bills and commercial papers. Money market funds are also known as secure investments. They are ideal for those searching for immediate but reasonable returns. The terms “money markets” and “cash markets” refer to financial markets. A high level of risk often characterizes these types of funds. Real Estate Funds These are the investment funds that finance businesses in the real estate industry. These funds can be used to purchase real estate, build homes, plan finance, or hire property managers. However, real estate funds give a more relaxed return on investments. Debt Funds These investing firms invest in debt-related securities. For instance, fixed-income assets, government bonds, and corporate debentures. In Debt Funds, however, no tax is subtracted from the source. Therefore, debt funds are low-risk investment options in personal financial planning. Benefits of Mutual Funds Risk diversification to several investment classes Professional Management of securities Monitoring by experts Higher Liquidity Multiple modes of investment Encouragement for future investments Tax Benefits Operational Transparency Systematic Investments. Mutual Funds as an Investment Tool An asset management company (AMC) creates a mutual fund by combining investments from multiple sources. These can be different individuals and business investors with similar goals. A fund manager professionally manages the pooled investment by purchasing shares in the stock market. It helps maximize returns for the investors while following the fund’s investment goals. Fund Professionals with a proven track record of managing assets and complete market knowledge are fund managers. Investors make a profit from regular dividends, interest, and capital growth. They reinvest their profits by growing asset values or by financial advice from experts. Moreover, investors receive a consistent income through a dividend option. Factors You Should Consider Before Investing Investment Goal – Observe and define your financial goals and objectives. Making a Choice – Choose a low-risk type of fund from the various types of Mutual Funds if you are a beginner. Expand Portfolio – Invest in more than just a single mutual fund. Expand your portfolio and improve returns in case one of the funds underperforms. Updated Documents – Keep your KYC and mandatory documents updated timely. It will eliminate the chances of money laundering and fraud. Financial Advice – Always seek financial advice from professionals if your confidence and investment knowledge seem insufficient. [B-02] Conclusion Mutual funds come in a wide variety. An investor can systematically purchase them after doing proper research. It helps the investors to get benefits in the long term. Recently, many new mutual funds have been developed, offering profitable options for all kinds of traders. However, it is important to know that mutual funds are subject to market risks. Understanding the market risks associated with mutual funds is essential to avoid following the crowd. You should plan finance and make an investment strategy. It will help you choose the right fund to invest your money in. Piramal Finance gives you efficient and the best financial advice at your request. Contact Piramal Finance to seek assistance from experts regarding stocks, mutual funds, and personal loans.
08-11-2023
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Home Loan

Should you opt for a fixed-rate or a floating-rate home loan?

Buying a house is like a dream come true for many people and with it comes a lot of responsibility. One of the important responsibilities could be repaying your house loan at regular intervals. But what’s more important is what kind of interest rate you prefer so that the repayment doesn’t bother you at all. Whether it is a fixed rate of interest or a floating rate of interest, you have to decide which one to pick. In this article, we will assess both sides, see their pros and cons, balance it out, and let you decide which one is better between the two. [B-01] What is a fixed rate of interest when it comes to a home loan? A fixed rate of interest means that the interest rate the lender charges you remains constant throughout the repayment tenure. This means if the bank charges you a 10% interest rate on your home loan for 20 years, the interest rate remains 10% throughout 20 years. There is always an option for you to set a fixed rate of interest for 3, 5 or 10 years but that cannot be frequently done. This is one of your rights that you can exercise if you find the interest rate not so compelling. There are both advantages and disadvantages of a fixed rate of interest and boils down to an individual level. What are some of the advantages of a fixed rate of interest? There are numerous benefits of having a fixed rate of interest for a home loan. Sense of certainty: A fixed rate of interest for a home loan gives you a sense of certainty. You are well aware of how much you are going to repay for the rest of your tenure. This gives you a lot of confidence as you know how much to save for the next instalment. Better planning: Since you know that the interest rate is fixed and you have to pay a certain amount, you will easily be able to make smart financial choices. You can plan your budget accordingly, and save your money efficiently. Resistant to a sudden increase in market rate: This is another advantage of preferring a fixed rate of interest for a home loan. You are completely immune to a sudden upsurge in the market rate. In the case of tomorrow, the market rate suddenly goes up, your interest rate remains constant. So, you now don’t have to pay any extra amount in the form of EMI. When should you prefer a fixed rate of interest for a home loan? Here are some of the instances to consider fixed-rate loans: If you are comfortable with the EMI: If you are comfortable with the current instalment you are paying, then you should stick to a fixed rate of interest. If this amount doesn’t bother you and you feel satisfied with how much you are paying, then there is no reason to choose anything over a fixed rate. If the unpredictability of the market bothers you: In case you feel that the market rate is not constant and might increase shortly, then to prevent this you should stick to a fixed rate. Suppose, you are paying 15% interest which is fixed throughout the tenure and suddenly you sense that the market rate is going to be 20%, then it is worth staying where you are right now. If you see that the interest rate has been constant all the time: If you see that the interest rate is not changing much and has been constant for a long time, then you should consider a fixed rate of interest for a home loan. Now that you have read about the fixed rate of interest, let’s see the other side of the story. What is a floating rate of interest when it comes to a home loan? Unlike a fixed rate of interest, the floating rate of interest is variable and changes according to the market rate. It is therefore also called the “variable rate” of interest or “adjustable rate” of interest. So, if the market rate increases in the future, then the interest rate is also going to increase and vice versa. The reset period for the floating interest rate depends on the option that the bank provides you and the date you apply for it. It could be quarterly, half-yearly or even yearly, depending on what date you apply for. Suppose, the interest rate changes every quarter, then if you apply in January, the interest rate changes in May. What are some of the benefits of applying for a floating interest rate? Unexpected gains: You can have unexpected gains because of market fluctuations and this will be profitable for you. You have a better scope of gaining if the market rate constantly goes down and decreases than the base rate. Lower rate of interest: If you ask from the point of observation, floating rates are lower than fixed rates in most cases. The difference is about 1% to 2.5% approximately. This isn’t always a sure thing, but most of the time, the floating interest rate is slightly lower than the fixed interest rate. If the market rate is constantly decreasing: You might see a trend in the decrease of the market rate which is why you might prefer considering a fixed interest rate. When should you consider taking a floating interest rate? If you predict the market rate to be decreasing: If you predict that the market rate is going to decrease in the future, you should go for a floating interest rate. If your fixed rate is on the higher side: If your fixed interest rate is high, you should consider changing to a floating rate. [B-02] Summing it up Whether you should go for a fixed rate or a floating rate, depends on the market rate. If you predict the market rate to decrease in the future, you should go for a floating rate. If you are comfortable paying at the present interest rate, then stick to a fixed rate. Do you like reading articles and blogs on topics like loans, SIPs, mutual funds, MSMEs, financing, etc.? Well, then you should look for Piramal Finance where you find ample information regarding these topics.
08-11-2023
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Guide

An NRI’s Guide To Investing In Gold

For many centuries, the yellow metal has been a crucial component of any investing portfolio. Institutions, as well as individuals, make gold investments. The world’s central banks and reserve banks make significant gold investments. They preserve it as a part of their stockpile. They purchase gold when the price is low and sell it when they realize it has increased in price too much. Individual investors have different factors to take into account. While gold has historically been used in India for jewellery for both men and women and for usage at social occasions and weddings, this is only a minor portion of the use of gold. However, gold has moved past this point and is now valued for various reasons in addition to its social and aesthetic worth. [B-01] Experts have traditionally recommended that one put 5–15% of their overall assets into gold. There is a strong possibility for gold investment outside India due to the gold price growth. Due to its phenomenal pace of growth, gold is a very advantageous investment for NRIs. Gold investments made by NRIs may be a wise choice. How can NRIs make a gold investment? NRIs, or non-resident Indians, can invest in physical gold items like jewellery, bars, or coins. The preferable choice is to invest in paper gold through gold funds, gold bonds, or exchange-traded funds (ETFs), which do away with purity concerns, cost concerns, and storage headaches. Let’s have a closer look at the NRI’s gold investment options in paper gold: Gold ETF Mutual funds that invest and extract value from assets include Gold ETFs. NRIs require a PINS account to invest in Gold ETFs in India through the Stock Exchange. However, they must essentially acquire or sell in multiples of 1000 units. They can purchase it via fund houses. E-gold This is a fantastic option for NRIs wishing to make a small gold investment. This is possible in lesser denominations in the Demat account, starting with just 1 gram of gold and its multiples. This gold investment plan functions similarly to an equity share plan, has great liquidity, and doesn’t require storage. Sovereign Gold bonds Sovereign Gold Bonds are a practical choice for those who want to purchase gold digitally. With a good interest rate annually, the Indian government has launched this program; however, NRIs are not permitted to invest in Sovereign gold bonds. They may, however, hold the bonds until early redemption or maturity if they purchased them before obtaining NRI status. Gold Funds Gold funds are Investments in gold bars available through numerous gold mining and production companies. Mutual fund investing and gold fund investing are very similar. Tax Levied on NRI Gold Investment. Here are the taxes applicable on physical gold, paper gold, and wealth. Income Tax on Physical Gold. Short-term capital gains tax is due when selling gold in its physical forms, such as jewellery, coins, and bars, within three years after purchase. Long-term capital gains tax is due when selling gold after that time. Income tax on Paper Gold. No TDS is due when NRI purchases and sells Gold ETF units through an exchange. An NRI investor can therefore self-assess while filing returns. However, TDS will be taken out if direct redemption occurs with the fund house. Wealth Tax. Gold ownership is subject to wealth tax. An NRI must pay taxes if his wealth from assets exceeds Rs. 30 lakh in a given fiscal year. Jewellery, bullion, and items made of gold or other precious metal are all considered assets. How can NRI save Gold Tax? While there are no export taxes on gold leaving India, there can be import taxes in the nation of the resident. NRIs must determine whether local regulations in their home countries allow gold sales and what tax consequences may result. They must be informed that NRI gold investments are subject to income tax laws. Tax losses against gains from the sale of gold may be used to balance any capital gains taxes from the sale of other asset categories in India (such as shares, mutual funds, etc.). Tax laws provide that tax obligations from long-term capital gains can only be offset by capital gains, but tax obligations from the sale of short-term capital gains can be offset by long-term or short-term capital gains. If NRIs purchase Capital Gains Tax Savings Bonds, they may be eligible for exemptions under Section 54EC. During tax planning, NRIs must review local tax rules that apply in their place of residency. [B-02] Finishing Up. In India, gold has been a valued commodity from ancient times to the current generation; this is why Indians strongly prefer gold as an asset class. It is the safest and most lucrative investment available, aside from real estate, even for NRIs. Opportunities for NRI gold investment in India are created by the rising gold price in India. After examining the rise and fall in rates, it was found that investing in gold in any form, including NRI gold bonds, produces profitable results. Visit our website to find more useful and informative blogs.
08-11-2023
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Top 10

Top 10 Best Mutual Funds For SIP To Invest In 2022 In India

Mutual funds are ways to invest that pool the money of many people so that they can invest in a wide range of assets more cheaply and effectively. Mutual funds often have the best SIP to invest option for people who are investing for the first time. A SIP, or systematic investment plan, lets people make regular investments in a mutual fund (every week, month, or quarter). Those who invest in mutual funds for the long term may make more money with the best sip to invest. [B-01] Why You Should Find the Best Stock to Invest SIPs might be good for people who have never invested in a mutual fund. The best SIPs give their participants a lot of money. How SIP Investments Help People The number of people who invest their own money will go up greatly in 2023. Most people who invest for the first time have little extra money and know how important it is to save and invest for the long term. In 2022, the best SIP to invest in will help low-income people make the most of their small monthly payments and earn better long-term returns. You can begin investing systematically with as little as Rs 100. SIP Investment Helps Compared To Dollar Dollar-cost averaging in India’s currency could help you if you invest in the best SIP mutual funds. You can put more money into your SIP investment when the market is going down, but you can put less money into it when the market is going up. This means the cost of buying fund units can be spread over a longer period. The choice to branch out You can start a systematic investing plan with most mutual fund plans. Depending on your goals, you might choose a few of the best SIP plans and invest different amounts in each. Using this method, you may make steady profits even when the market is going down or is very volatile. You can diversify your SIP investment portfolio by putting money into equity, debt, and hybrid funds. Flexibility You should be able to make all of your own investment decisions with the best SIP plan. You can join a SIP at any time or quit at any time. A SIP can be put on hold and then picked up again later. There is no other type of investment that gives you this much freedom. Compounding A SIP investment is a plan for the long term. The amount invested is less important than how long it lasts. Your SIP investments grow much bigger over time as they add to each other. Even if you don’t have much money, you should start investing in mutual funds through a SIP as soon as possible. Instils financial discipline. Self-discipline is the most important skill to learn when investing in risky assets. You might be able to use the self-discipline you learn by finding the best SIP to invest in other parts of your life. The Best SIP to Invest for Everyone Advice for Investors Who Don’t Want to Take Risks Expanding Direct Investment Plan (Large-cap Equity) for Axis Bluechip Fund (Large-cap Equity) Direct Plan Growth from ICICI Prudential is a way to save money automatically every month (Hybrid) Fund for Investing in Quantitative Infrastructure (Equity) Debt risk fund for HDFC Credit Lending Direct Development Investment For those who are willing to take a chance Mirae Asset runs a large-capitalisation stock investment fund. A look at the direct growth strategy of the Robeco Bluechip Equity Fund Physiologically Sound Method for Rapid Growth of an Absolute Quantitative Fund Baroda-BNP-Paribas Hybrid Fund Other SIP investments Blue-chip stock investors in the Kotak Bluechip Fund Blue-chip stock investors in Axis AXA BOI are a fund that focuses on smaller companies. It has a strategy for directly estimating future tax increases. It also has a reserve for delaying taxes on Mirae assets. How SIP Investment Works SIP investment lets investors put money into a mutual fund regularly. It is made for first-time investors or investors with small amounts of money who don’t want to put up a lot of money at once. The best SIP to invest in lets the investor put in a set amount regularly, like once a month, three times a year, or once a week. There are many ways to invest, such as in large-cap, mid-cap, small-cap, multi-cap, and equity-linked schemes. The one you choose will depend on your financial goals. You can choose the best SIP investment for each class depending on your preferences. Large-cap SIP investment The mutual fund invests in companies with a market capitalisation of more than $250 billion in these plans. If you want to reduce your risk on the stock market but still get a good return, you might want to think about one of these programs. Small-cap SIP investment Small-cap mutual funds are a great option for investors who want their money to grow in value but are willing to take on more risk. People who want to put money into small businesses (those with a market cap of Rs 5,000 million or less) can use these programmes. Equity-linked SIP plans With equity-linked savings plans, investors can save on taxes and build wealth for the future at the same time. Investors can save tax under Section 80c of the Income Tax Act. Some Benefits of SIP Investments One of the many benefits of a SIP is that its effects grow over time. When you put your profits back into your business, “compounding” happens. Over time, the effect grows, increasing the return on investment. In addition, SIP has the following benefits: Convenience. At first, little money is needed. Using standard instructions, it is easy to automate SIP deduction. It makes it easier to save money and invest. [B-02] Conclusion Historically, the best returns on investments have come from buying stocks. But not all investors will benefit from this plan. The best SIP to invest plans let people invest in stocks even if they only have a small amount to invest and don’t want to be affected by market volatility. Get the best SIP to invest plans with Piramal Finance.
08-11-2023
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Home Loan

Should You Apply for Home Loan Online Or Offline?

Have you been considering a new home for a while? Need help with how to apply? You have two options. You can apply for a housing loan online from the comfort of your home, or you can do it the old-fashioned way, offline, by visiting the store or branch. Both of these options are available to you. In this article, we’ll compare and contrast these two strategies for acquiring home loans, based on the factors outlined in the following paragraphs. [B-01] Offline Home Loan The standard method of requesting housing loans works this way. To apply for a loan at a branch, you’ll need to fill out an application form and bring in the appropriate Know Your Customer (KYC) documentation. Those who choose not to use the internet or who value more one-on-one service from their bank can benefit from this option. The main reason it takes so much longer than applying for a loan online is that all of your paperwork has to be physically verified and examined at different processing desks. Credit history (CIBIL), RCU (document scrutiny), the application form, home loan eligibility, and conversations between the credit manager and the borrower all contribute to establishing the borrower’s credibility. It’s not uncommon for important loan application documents to get misplaced or lost in the shuffle amidst the mountain of paperwork you’ll have to submit. Online Home Loan It’s a web-based method of paperless processing of a house loan application through the online portals of housing loan lenders. There is no requirement for the borrower to physically go into the branch to sign the agreement or to make any copies of the necessary paperwork. Borrowers can apply for a house loan in a matter of minutes from the comfort of their own couches by visiting a lender’s secure online site and providing the necessary paperwork in a digital format. When compared to traditional house loan procedures, this one is far quicker and less time-intensive. The only prerequisites are a computer or smartphone. Borrowers who aren’t comfortable with the internet shouldn’t expect this fast method to work for them. But if you are, Loan Fasttrack is still here to help you out, so don’t hesitate to contact us whenever you need us. The borrower only needs to create an account on the lender’s portal or website, fill out the application form with the necessary requisites, upload the documents, and submit the application online. Comparison Between Offline or Online Home Loan Only through the home loan sanctioning procedure do the offline and online home loan experiences differ. The sole criterion by which digital and physical house loans can be differentiated is the method of application. As of yet, no financial institution has fully digitised the home loan application procedure from start to finish. Traditional banks, which have not yet migrated to digital platforms, restrict the processing of house loan applications to loan sanctions alone. However, the offline procedure still holds sway when it comes to cash disbursement. So, let’s break it down to the individual level. Eligibility Online home loan – A home loan eligibility calculator or a similar tool may be found on the website of a home loan provider, allowing you to easily determine how much of a loan you might be approved for. Offline home loan – Home mortgages that are processed offline need you to physically go to a bank and speak with a loan officer in order to determine if you qualify for a mortgage. Time is being wasted here. Convenience Online home loan – The convenience of an online application for a home loan means you may submit your paperwork whenever and wherever you like. Any gadget with an Internet connection will do. Offline home loan – To apply for a house loan offline, you will need to schedule a time to meet with the bank officials and then physically go there. Documentation Online home loan – When applying for a house loan online, all you need to do is scan and upload a few documents to the bank’s online application page. Offline home loan – In order to apply for an offline home loan, you will need to visit a branch office and present hard copies of your KYC documentation. Charges Online home loan – All fees associated with the bank’s online home loan option are laid out in detail on the site, and no hidden fees are included in the final total. Offline home loan – Additional fees may be associated with an offline home loan because of the need to pay agent commissions. Processing time Online home loan – Only a few hours of processing your uploaded papers are required to quickly determine if you qualify for a home loan with an online application. Offline home loan – When applying for a housing loan offline, the procedure can take a lot longer because the lender needs to check the borrower’s paperwork in person before they can trust them. Comparison of products Online home loan – Obtaining a house loan online allows you to easily compare various home loan options without having to visit several banks. This will provide you with more options from which to select the housing loans that best meet your requirements. Offline house loans – If you want to compare offline loan options, you’ll have to go to the lender’s physical locations and ask for the details you need. Security Online home loan – When applying for a home loan online, rest assured that your information will be secure because most institutions adhere to industry standards. Offline home loan – The risk of losing important paperwork is greater with an offline housing loan application. [B-02] Summing up The article comprehensively examines which home loan is better for you, online or offline. You should choose wisely which mode of housing loan is the right choice for you. Home loans are not standardised. Despite internet home loans rising in popularity, many people still need offline loans. Online house loans outperform traditional ones in convenience. It’s extremely widespread among city workers. Most Indian banks are expanding into new territories. Online loans may become more prevalent as Internet business increases nationwide. Visit Piramal Finance to read similar in-depth articles.
08-11-2023
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Education

Calculators For Converting Area Between Metric And Imperial Units

Whether you’re an expert in one unit or need assistance with the other, this guide has everything you need. Everyone approaches measurements in a slightly different way. Whether you work in the building business or are just attempting to determine the dimensions of your new sofa, a method to convert metric and imperial units is always needed. It’s important to have the correct land area calculators and area converters available, whether you’re a professional engineer or need to perform fast mental calculations. The good news is that many area converters and calculators exist to assist with this very task. This article will discuss the top tools for converting area between metric and imperial units. [B-01] What is a Metric-to-Imperial Land Area Calculator? A metric-to-imperial area calculator is a handy tool for converting metric and imperial units. This online calculator can calculate areas in square metres, square kilometres, or square miles. A land area calculator can be very helpful in converting between metric and imperial units. When calculating area, it is important to know the conversion factors to use. The most common metric unit of area is the square metre, while the most common imperial unit is the acre. To convert between these two units, use the following conversion factors: 1 square metre = 100 metres 1 acre = 4,000 square metres To convert from metric to imperial: Multiply by 100 (for metric) or by 400 (for imperial) Add the result to 1 (metric) or 4 (imperial) Divide by 1000 (if using metric), or by 4000 (if using imperial) Types of Metric-to-Imperial Converters Depending on your needs, there are a few different metric-to-imperial area converters to choose from. Here are three:1. Convertor Cylinder: This cylinder has metric and imperial unit markings. Place the object you want to convert inside the cylinder, turn it so that the markings on the outside correspond with those on the inside, and presto! The conversion is complete.2. Scale: A scale can be used to measure objects in both metric and imperial units. Place the object you want to convert on the scale and read off its corresponding metric or imperial value.3. Conversion Table: This table lists values for common conversions between metric and imperial units. Find the conversion you need and look it up in the table. How to Convert Metric-to-Imperial Area Using a Calculator? Calculators can be selected based on the type of conversion needed: area, volume, or weight. There are a few ways to use a calculator to convert the area between metric and imperial units. One way is to divide the total area by the width of the unit you want to convert, then multiply that by the height of the unit you want to convert. To convert metric and imperial units with a calculator: Select the desired unit of measure. If converting from metres to inches, select metres as the unit of measure and enter inches into the corresponding field. Next, select the operation that needs to be performed: area or volume. Input the necessary values and calculate. If you wanted to convert an area in meters squared to acres, you would divide the total area by 0.39 meters (the width of a meter), then multiply that by 1.22 hectares (the height of an acre). Five Metric-to-Imperial Area Conversion Methods There are a few different methods one can use to convert between metric and imperial units. Using a land area calculator, there are five methods to convert the metric area to the imperial area. Method 1: Enter the metric value into the calculator and press the “convert” key. The result will be in square metres. Method 2: Use the “metres per square metre” conversion factor. This is 1/1000 of a metre per square metre. Method 3: To convert kilometres to miles, divide by 1000. Method 4: To convert miles to kilometres, multiply by 1000. Method 5: Use the “square metres per acre” conversion factor. This is 1/10 of a square metre per acre. Common Applications for a Calculator to Convert Metric to Imperial Area There are a few common uses for a calculator when converting between metric and imperial units. One common use is to convert square metres to square feet or vice versa. Other common conversions include converting kilogrammes to pounds or vice versa or converting litres to gallons. There are many different applications for a calculator to convert metric to the imperial area. Some of these include: You may use a calculator to convert metric and imperial units. Numerous calculators can convert between these two units, so find the one that works best for you. Use a calculator with an area conversion function to convert metric and imperial areas. This will allow you to convert between metric and imperial areas quickly and easily. To convert metric and imperial volumes, you can use a calculator with a volume conversion feature. This will allow you to quickly and easily convert metric and imperial volumes. Use a calculator with a weight conversion function to convert metric and imperial weights. This will enable you to convert between metric and imperial weights quickly and effortlessly. Make use of a calculator to convert any time measurements you find into the appropriate units of hours, minutes, seconds, and milliseconds. What is the Purpose of Metric-to-Imperial Converters? There are many reasons someone might need to convert between metric and imperial units. Some common purposes include engineering calculations, scientific measurements, and everyday use. When working with measurements in a foreign country, converting between metric and imperial units is often helpful. This can be done with a calculator such as the one shown above. Metric-to-imperial converters are also useful when comparing two or more measurements. For example, if you have two pieces of text in metres and ounces, you can use a metric-to-imperial converter to change the units so that they are both readable in yards and inches. Metric-to-imperial converters can also measure distances between objects. For example, if you want to measure the distance from your chair to the refrigerator, you can use a metric-to-imperial converter to measure in metres instead of feet. Finally, metric-to-imperial converters can convert weights and measures when working with recipes or other measurements. For example, if you want to know how much sugar is in a cup, you could use a metric weight conversion table to find out how many grammes are in the cup. [B-02] Conclusion Now that you understand how to use land area calculators and area converters to convert between metric and imperial values, you can begin incorporating them into your daily life. Consult Piramal Finance if you are uncertain about the conversion calculations between metric and imperial units for area. They can help you understand the rules and advise you on the best course of action given your circumstances.
08-11-2023
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Guide

A Beginners Guide To Monetary Policy Tools

Needless to say, the RBI holds the power to create and control the monetary policy tools of our Nation. So, instruments like monetary policy are vital. It deals with the central bank’s matters relating to the interest rate, money supply, and credit availability. The RBI formulate these monetary policies to control inflation in our country. They use financial instruments like Reverse REPO Rate, REPO Rate, SLR, and CRR. We will discuss them further in the later part of this piece. [B-01] But first, you must know that monetary policies are of two types – expansionary and contractionary. An expansionary monetary policy is implemented by reducing interest rates. It results in increasing market liquidity. Its primary aim is to boost the money supply in an economy. On the other hand, a contractionary monetary policy is executed by increasing interest rates. As a result, it reduces market liquidity. This contractionary monetary policy comes into play when we need to decrease the money supply in an economy. For an economy to grow sustainably, you need to consider price stability. For this, the Indian Government sets an inflation goal for five years in consultation with the RBI. Furthermore, the RBI regulates the policies to control inflation and induce price stability. This is why India’s current inflation framework is flexible. It is also known as the Flexible Inflation Targeting Framework (FITF). The Central Government has also introduced the Monetary Policy Framework (MPF), Monetary Policy Committee (MPC), and Monetary Policy Process (MPP). These are the topics for another day. Today, let’s focus on the monetary policy tools that exist. So, let’s dive in. Instruments of Monetary Policy 101 Simply put, the RBI regulates the money supply of our country’s economy. They use a specific set of instruments to do so. You should also know that it also aids in inflation control. Also, these qualitative tools of monetary policy are responsible for India’s economic growth and development. Let’s have a look! Repo Rate: Repo rate is the fixed interest rate at which the RBI supplies money to commercial banks. It helps banks to meet short-term fund requirements. As a result, this helps the RBI to maintain market liquidity and control inflation. Reverse Repo Rate: It is the interest rate at which the Reserve Bank of India borrows money from commercial banks to meet short-term fund needs. Reverse Repo is crucial for the RBI to maintain steady liquidity during times of need. Liquidity Adjustment Facility (LAF): It is an instrument that controls money indirectly. LAF assists the RBI in managing liquidity. In turn, this provides economic stability to banks. RBI does this by offering the opportunity to borrow money through repurchase agreements or Repos. Also, it helps make loan agreements with the RBI via reverse repo rates. Furthermore, this aid banks in overcoming any short-term cash shortage during economic instability or stressful situations. In a nutshell, LAF helps regulate inflation by increasing or reducing the money supply. Marginal Standing Facility (MSF): It is a unique facility available for scheduled commercial banks. MSF helps them to borrow an additional amount from the Reserve Bank when the inter-bank liquidity dries completely. Do note that the Marginal Standing facility only offers a borrowing facility at an interest rate higher than the repo rate. Bank Rate: It is by far the most effective tool among all monetary policies. The bank rate is the determined interest rate at which the RBI provides loans to private banks. Also, RBI provides these loans without any collateral. Lower bank rates aid in expanding the economy. However, a higher bank rate will help control inflation. Let’s understand this better with an example. Say the RBI needs to increase the bank rate for some reason. Then, commercial banks are bound to hike their lending rates. As a result, the supply of money is under control. For just the reverse situation, the money supply is in abundance. But, this will spike inflation. So, RBI has to increase the bank rate to control inflation when needed. Cash Reserve Ratio (CRR): The CRR is the minimum public deposit mandatory for any commercial bank to maintain at all times. In return, Cash reserve Ratio helps to regulate the money supply of our country’s economy. Statutory Liquidity Ratio (SLR): The RBI has mandated that commercial banks maintain a certain percentage of gold, cash, or other security deposits before offering any credit to their customers. It is known as the Statutory Liquidity Ratio, aka SLR. Banks need to make sure that they follow the SLR reserve criteria strictly. Open Market Operations (OMOs): This is a situation where RBI gets involved directly or indirectly. It is the open market operation when RBI sells or buys short-term securities in the open market. When OMOs happen, the money supply boosts or decreases in the market. Moreover, the constant interest rate is directly affected. Let us help you understand this with an example. Say the RBI decides to buy a few short-term securities from the market. Due to this, the money supply in the market will increase. Consequently, the credit facility demands would reduce. As a result, the rate of interest will also decrease. On the other hand, the interest rate would spike if the RBI were to sell short-term securities in the market. Also, the demand for credit will rise. So, this is how the monetary policy tool OMO affects our economy in both ways. Market Stabilisation Scheme (MSS): The scheme aims to absorb surplus liquidity. In this, a stock of securities is handed over to the RBI. The securities mainly include bonds or treasury bills. RBI uses those securities to dive into the market. This keeps a check on the market’s liquidity. [B-02] Final Words Now you know why the Central Bank handles the instruments of Monetary Policy with the utmost attention. This is the only way to keep a check on our country’s economic development.
08-11-2023
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Calculator

Calculate Your Systematic Withdrawal Plan in Mutual Funds Online

An SWP, or systematic withdrawal plan, is a method for withdrawing money from a mutual fund on a predetermined schedule. Mutual fund investors can tell the fund house to distribute a predetermined amount of money to them regularly, such as monthly, quarterly, or annually, in exchange for their mutual fund units. If you work out a specific cash flow plan with the fund house, you can take out a certain sum or the realized gains for the month. When it comes to SWP, doing the arithmetic to determine interest and the balance of the principal may be tedious, time-consuming, and error-prone if done manually. It is advised that you use an SWP calculator, even though there is a formula for doing so. Monthly withdrawals from a mutual fund investment and the investment’s final value can be determined using an SWP calculator. [B-01] SWP Mutual Fund Calculator—Explained An SWP calculator, or systematic withdrawal plan calculator, calculates the periodic withdrawals and the amount of principal that will be left in the account after withdrawals have been made. The calculator only needs a few pieces of information from you before displaying the sum invested, the sum withdrawn, and the overall worth of both. The simplified withdrawal plan (SWP) calculator is a simple tool that, after entering only four pieces of information, returns the total investment and withdrawal amount as well as the final value of the investment after all withdrawals have been made. These are the parameters that must be entered into an SWP calculator: Total Investment: It represents the sum of money contributed to the mutual fund. Monthly Withdrawal Amount: Your desired withdrawal amount each month (or quarter, year) Return Expected (annualized): Average yearly return on investment for the mutual fund. Period: Duration of the Systematic Withdrawal Plan, or the expected number of years of regular withdrawals from an account. The SWP calculator will determine and display the following data in response to your inputs: Total Investment: The total amount put into the mutual fund (same as above) Total Withdrawal: The total amount you could have withdrawn during the SWP period Final Value: The amount left in your investment after deducting all withdrawals. SWP Highlights Bonuses from tax indexation: Because of the long-term nature of an SWP, investors who withdraw after the first year are not subject to taxes. Gains that are consistent and substantial: When you make a fixed deposit, you put down cash for a certain period in exchange for a certain rate of return. In SWP, however, your returns will steadily increase over time. There is a possibility that you will receive a higher return than fixed deposits from your mutual fund investment. SIP Investments: If you are currently receiving a regular income, you may reinvest the profits from your SWP mutual fund units. Funds received from SWP can be re-invested in a separate SIP on a monthly or quarterly basis. To put it another way, if you invest a lump sum in an SWP scheme, you can immediately begin investing in a second scheme without making any more contributions out of your regular income. Gains from inflation: Your bank’s fixed deposit will pay out the same amount each year, regardless of the rate of inflation. In contrast, an SWP will produce returns that are consistent with inflation. Investing in a fund that prioritizes equity and related assets increases your potential for outperformance despite inflation. To reduce exposure to market fluctuations, SWPs allow for regular withdrawals of a set amount. There is less of a chance of losing your entire investment in SWPs because you can withdraw money at set periods. Minimum balance: With only Rs. 25,000 (about $3,500) in your mutual fund, you can open an SWP account. This is a one-time payment required before beginning the plan, but it is not locked in and can be withdrawn in increments at any time. SWP Calculator: How Does It Function? Using an SWP calculator eliminates the need to manually compute withdrawal amounts, account balances, and more. The formula used is as follows: A = PMT ((1+r/n)^nt – 1) / (r/n)) Wherein, A is the final value of an investment PMT is the Periodic Withdrawal Amount n is the number of compounds in a period r is the expected annual rate of return t is the sum that represents the number of years that the money has been invested. Advantages of Using an SWP Calculator By modifying the withdrawal amount and the capital gains incurred, the SWP calculator may provide an estimate of the amount of investment that will be left after each withdrawal. In SWP, you may easily alter the initial investment, withdrawal, return, and time duration to obtain a wide range of outputs. This allows you to evaluate various SWP strategies and select the one that meets your needs with the most precision. When the SWP is over, the calculator reveals the ultimate worth of the investment. This will help you to prepare for your financial and investing goals of the future. One of the safest ways to draw money out of mutual fund investments is through an SWP, or systematic withdrawal plan. Using the SWP calculator, picking the optimal SWP for a mutual fund is simple. [B-02] Conclusion An SWP calculator is intended to avoid any calculation errors. It is useful because it will save time and the effort needed to calculate things manually. The user of an SWP calculator will know instantly how much the principal balance, investment value adjustment, total withdrawals, total interest, and number of months for retirement are. SWP calculators are likewise equipped with settings that allow users to change the type of units and the present price of units depending on market fluctuations.
08-11-2023
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Personal Loan

Should I Take a Loan Against A Fixed Deposit To Buy a Flat?

Do you have any thoughts about purchasing a new flat? Do you think loans against fixed deposits (FDs) are sufficient investment tools that would enable you to buy a flat? Is a loan against FD better when you need money to match the price of a new flat? Financial institutions often lend you up to 75% of your cumulative FD’s value and 60% of your non-cumulative FD’s worth. Let’s read about how getting a loan against a fixed deposit may be a better choice for you in more detail. [B-01] What Is A Loan Against Fixed Deposit Borrowers can rest easy, knowing that the principal amount of their fixed deposit will serve as collateral for their loan. The sum depends on the primary deposit amount consumers have made with the bank. In some cases, consumers can withdraw up to 95% of their deposits from their bank, while in others, they may withdraw as little as 85%. Pros Of Loans Against A Fixed Deposit The benefits of borrowing money against a fixed deposit have been outlined here. Low-interest rates A reduced interest rate is offered on the loan secured by a fixed deposit. No extra fee There are a few banks that do not impose any sort of processing fee. In addition, there are financial institutions whose fees are significantly lower than the average of other loans against FD options. Hassle-free process Applying for a loan secured by a fixed deposit is a simple process as there is a minimum amount of paperwork required. Having most or all of your documentation on file at the bank reduces the amount of paperwork you’ll need to complete. No need to withdraw from the FD There is no reason to withdraw from your FD when you can easily borrow money against it. No maximum credit score is required The major benefit of applying for a loan against a fixed deposit is that there is no credit score verification. The loan against the fixed deposit account is available regardless of your credit score. Cons Of Loans Against A Fixed Deposit The drawbacks of borrowing money against a fixed deposit have been outlined here. The bank has the right to take whatever amount is in the fixed deposit account to reimburse any loan against FD that was taken out against it and that was not repaid by the borrower. The time period for paying the loan against a fixed deposit cannot exceed the time allowed for the fixed deposit to mature. Main Aspects Of Loan Against Fixed Deposit The idea of taking out a loan against a fixed deposit is brilliant, as it includes several crucial aspects that are especially useful for long-term savings. Low-interest rates The interest rate on a loan secured by a fixed deposit is typically 25 percentage points lower than the rate offered by banks for unsecured personal loans. Therefore, the equated monthly instalments (EMIs) on loans secured by deposits are likewise modest. Loan amount as per the FD fund Your eligibility for a personal loan and the amount you are ultimately approved for depends on a variety of variables, including but not limited to your credit history, income level, income tax return, and other documentation. However, the principal amount placed in the fixed deposit will determine the maximum loan amount you can apply for if you choose to borrow against the fixed deposit. If you have put a significant amount of money into an FD, you should be able to take out a sizeable loan against it. No penalty for prepayment Banks typically charge prepayment penalties because they stand to lose money on the interest you’re supposed to pay them. Prepayment of a loan secured by a fixed deposit does not result in any loss of interest to the lending institution. Documents Required For Fixed Deposit Your application form, filled out in its entirety and including your signature. A legal contract with all necessary signatures. Receipts for fixed and term deposits that have been lawfully executed and are accepted by the bank. Eligibility Criteria For Loan Against Fixed Deposit One needs to be a legal resident of India. The account might be set up in the name of a family trust. The Hindu nuclear family can use it. It can be used by any group or organisation. It can be used by various businesses (sole proprietorships, corporations, partnerships, etc.). Loans against fixed deposits are made available to everyone who has an individual or joint fixed deposit account. Those who have money in a 5-year tax-deferred fixed deposit account will not qualify for this loan. It is likewise inappropriate to have a fixed deposit account in the name of a child. [B-02] Summing Up The purpose of this article is to comprehensively examine the question, should I take a loan against a fixed deposit to buy a flat? You should choose wisely whether a loan against FD is the right choice for you. A loan against a fixed deposit is an excellent option for borrowing money. Consider your fixed deposit if you can repay it within the loan agreement period. When you require less than your FD’s worth, this loan is good. If so, get a small unsecured loan. If your FD is for a long-term goal you cannot compromise on and you doubt your repayment capabilities, don’t risk it. Visit Piramal Finance for more in-depth, finance-related articles.
08-11-2023
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