Investing in a house is a major decision that involves a lot of factors to take into consideration. You need to first zero down on the locality, the surrounding amenities, apply for a home loan, make the upfront payment and sign the agreement. Then you get possession once the property is ready. However, getting your house physically in your name does not legalise the matter. Your name needs to be registered as the owner of the property in Government records as well. This is where Stamp Duty comes in. [B-01] What is Stamp Duty? Stamp Duty is a tax that is levied by the Government on any asset transaction that takes place, especially that on property. It is a legal document that acts as evidence that a transaction of a property has taken place between two parties. It is a way of boosting government revenues for carrying out government activities. It is payable by either the buyer or the seller under Section 3 of the Indian Stamp Act of 1899. In case you delay in paying the tax, you will have to pay a penalty for the same. When to Pay a Stamp Duty? A Stamp Duty is to be paid before the signing of the legal agreement, on the day or latest by the next day, failing which a penalty is levied. In most cases, it is the buyer who has to pay the stamp duty charges. However, if it is a case of property exchange, both the parties, the buyer and the seller, have to bear the burden. A Stamp Duty is only approved when you sign by cancelling the stamp and writing your name or initials across it. This is to ensure that the stamp is not used for any other instrument or document and the sign is visible on the face of the stamp. Calculating Stamp Duty The rate of stamp duty varies from state to state. When a flat or property is transferred by a nominee to legal heirs, the instrument or document needs to be stamped according to the market value. There are a number of parameters that are taken into consideration while determining Stamp Duty on any property. For example, in some states the stamp duty and registration charges are calculated based on the total area of construction for individual homes and built up area when it comes to flats. The following are certain things to understand in order to calculate Stamp Duty. The ‘Guidance Value’ or the minimum value at which the house, plot or property in question should be registered and which is decided by the government is to taken into consideration. The stamp duty and registration charges are indirectly proportional to the property’s market value. Stamp duty charges are also dependent on the location of the property-urban or rural. Central and state taxes are also levied on stamp duty and registration charges. The Final Word If you are a prospective buyer looking out for a house, the Stamp Duty charge is one of the things you should take into account which makes your budget. So, even before you get ready for taking possession of your property, check the Stamp Duty calculator by authentic online financial institutions like PCHF to have a fair idea about how much you need to keep aside for the same. [B-02] Summary Stamp duty is one of the most important things to keep in mind while having a property transferred in your name. It is a legal document with the government that would have your name registered as the owner of the property. Hence, it is essential to pay Stamp Duty and Registration fees on time, to ensure that you do not end up spending on penalty charges.
Micro, small, and medium enterprise loans are recognized as the best unsecured credit option for start-ups and small businesses. NBFCs and banks grant these loans without any collateral requirements. The tenure of these business loans will be a decision of the respective bank, and the interest rate will depend on the CIBIL (credit score) of the individual applying for the loan. For your small business to endure the tough business conditions and witness adequate growth, capital is required in abundance. MSME business loans have the potential to secure your business from immense losses. The financing will offer your business the right amount of growth it needs to get through and make your cash flows consistent and better with time. [B-01] In this article, we will help you learn comprehensively about MSME loans and why they are the most useful for small business owners. 1. Assorted Utilities All the financial needs can be met through MSME loans. These needs include recruiting efficient and skilled staff, meeting any type of financial crunch, purchasing raw materials, and maintaining the stock. The lenders put no restrictions on utilization purposes. You can use it to meet the daily expenses of your business or to buy a huge plant and machinery, and the decision will be yours. 2. Prominent Accessibility In urgent financial needs, MSME loans come to the rescue with their quick sanction process. The money will show up in your business’s bank account in just a day or two. Sometimes, the banks and other lenders only process the loans within 24 hours. They will also offer online access for you to keep track of your loan statements. Also, they charge low down payments, resulting in more cash in hand. This will aid your business in taking more risks and trying out new ventures to take them to new heights. 3. Retain Control of Your Company When you demand funds from venture capitalists or other large-scale financial institutions, you will have to deliver a portion of your business to them. This indicates shared control of your business by including them in your decisions for growth and expansion. However, in the case of MSME loans, the bank or the NBFCs do not demand any stake in your business. You can use all the funding without worrying about not being able to retain total control of your business. 4. Business Loan Without Collateral Requirements As discussed above, these business loans are unsecured. This means that you do not have to keep any asset as collateral against the loan that you have availed. The lenders always agree to give this concession to small businesses because they are well aware that small businesses have limited assets. Asking for the assets they own as collateral would hamper the productivity that the business currently has. Therefore, you can gain a loan without having to worry about losing an asset that adds value to your small business. 5. Affordable Rate of Interest The lenders prefer to ensure that the cash inflows gained through the loan are not mostly spent on paying loan interest. This is the reason why they sanction these loans at a lower rate of interest. Low rates of interest also facilitate immediate down payments on behalf of small businesses. 6. Short Business Loan Tenures The MSME loans are mostly lent out for a short period of time. This helps the small business owners be free from any long-term commitments and keep a close track of the cash flows incurred in their day-to-day business. This would also motivate them to allocate the funds rationally to facilitate both business functioning and loan repayment. 7. Getting Rid of Cash Flow Struggles The MSME loans work toward helping small businesses to free themselves from the financial crunch they may face in their day-to-day functioning. They help meet the daily requirements that arise due to the shift in demand and supply market forces. Also, with the quick sanction benefit that these loans offer, you can use them to meet any emergency expenses. Eligibility Criteria for MSME Loans ● Your business should have had a turnover of a minimum of Rs 90,000 in the past three months of the loan application. ● Make sure it is a registered business, and you have a proper address proof for it. ● Keep all your Income Tax and GST documents ready for the processing of the loan. [B-02] Apply For Your Business Loan Today! Before you start the application process for your MSME loan, make sure to calculate the down payment amount along with interest. Help your small business become stable and grow to the maximum of its potential with the help of these loans. Also, keep in mind that a good credit score is essential to avail of a loan at a lower interest rate.
What is an IPO? There are thousands of companies that currently trade on the Indian stock market. These companies trade on two stock exchanges – the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). But how do they enter the stock market? Every company starts on the stock exchange as an Initial Public Offering (IPO). Before an IPO is launched, a company only has a small number of private shareholders. This includes the founding members of the company and some angel investors. Retail investors (such as you) cannot buy private company shares. You can purchase shares only when the company goes public. By launching an IPO, companies offer a portion of their shares to the public. These shares can then be traded in the stock market. An IPO plays an essential role in the growth of a company. During an initial public offering, a private company becomes public. This is done to attract investors and help the company raise capital. The money invested by the shareholders helps the company expand its operations and generate profits. IPO listing also helps to create brand awareness among retail investors and the general public. As a result, there are several upcoming IPOs this season. Read on to find out more about IPOs and how you can select the best IPOs to buy. [B-01] Types of IPO A company has two options when launching an IPO for the public. An initial public offering can be launched as a fixed price or book-building issue. In a fixed price issue, the price of shares is fixed. Every financial aspect of the company is evaluated before fixing a particular price. A company’s quantitative and qualitative analysis helps set up a fixed price. This price is usually lower than the market value. So, retail investors are likely to make a profit from the IPO. In a book-building issue, there is no fixed price for the shares. The company decides on a price band or a range for its shares. Then, the retail investors can bid for these shares. You can bid on the desired price that you would like to pay. The company evaluates the bids. Then, they set up a fixed price for the shares. How to Find the Best IPOs to Buy So should you invest your money in every IPO you can find? The answer is no. Not every IPO is going to make money for you. The wrong investment can even make you lose your money. The benefits and risks of investing in a new company go hand in hand. So you need to be an informed investor and learn about finding the best IPOs to buy. Investing in profit-making IPOs is always a good move for retail investors like you. But the tricky part is to find out which companies will make profits in the future. So spend some time researching different IPOs. Make sure that the information you’re getting is from credible sources. Understand the nature of the company’s business. As an investor, you must ensure that their business activities have clarity. Take a look at the promoters and the management of the company. They are the people responsible for taking the company forward. So make sure that your investment is in safe hands. As an investor, figure out the company’s strategies and key strengths. This will give you an idea about the future prospects of the company’s business. As a result, you can make an informed decision about your position in the company. This will help maximize the profits of your investment. Another thing you need to keep in mind is the risk factors for the company. Find out if there are any risks or liabilities associated with the company. Risk factors can pose a threat to the company’s business in the long run. How to Purchase an Upcoming IPO The process of purchasing an available IPO is fairly simple. You can take help from your broker or even do it yourself. The first step you need to follow is to have a trading account. Once the IPO is listed, fill in the required details. Pay for the number of shares that you would like to buy. Your money will be on hold till the allotment date. IPOs are generally oversubscribed. So it is a matter of luck that the shares will be allotted to you if you get the shares! But if the shares are not allotted, you would get the entire amount refunded to your bank account. Find out more about the upcoming IPOs in the last quarter of 2022 and research them. Consider investing in a company as per your risk profile and investment goals. [B-02] A Closing Thought Making suitable investments is an essential part of growing your wealth. For a beginner, all of this can seem tricky. So continue learning about the stock market. There are several free resources available to improve your knowledge. Be persistent. Soon, you’ll start making progress in this money-making field. Do not invest in an IPO just because it’s popular among investors. Many companies are overhyped. So, do your research before investing. Study the fundamentals of that particular business. Take help from established platforms to make financial decisions about upcoming IPOs. You can also consult a financial advisor in the beginning. Professional advice can help sort your finances. They can guide you as you start your investment journey. Then you can continue to upskill yourself and grow your finances. Are you looking for similar finance blogs? Visit the Piramal Finance website and help yourself to the knowledge of wide-ranging financial products and services, especially credit cards, trading stocks and personal loans.
Insurance is a vital tool that helps manage many risks affecting a family or a person. You must pay the yearly premium on time to keep the risk cover active. While you can opt for various types of policies, they are all listed under two broad options, life insurance and general insurance. Before you decide to opt for any policy, you must learn about all the cover options that you can get under life and general insurance. Read on to know more about the benefits of policy options and if they differ. [B-01] What is Life Insurance? Under this plan, the insurer will offer cover for losses related to your death. If you die during the policy period, the insurer will pay the policy amount to the nominee. This nominee must be a family member with the name listed in the policy. The claim amount can vary based on factors listed in the policy papers. The main purpose of this policy is to offer support in the form of money in case of the death of a family member. What is General Insurance? This type of insurance can be taken for any asset you own. Herein, the insurer will offer the cover and give money if the asset suffers any damage or loss. The insurer will pay for the costs for the repair of the damage or to compensate for the loss of the asset. The well-known types of plans under this category are home insurance, health policy, car insurance and many others. Life Insurance vs General Insurance: Comparison Here are some key variances between life insurance and general insurance: – Nature: When you get life insurance, it protects your family from money problems due to your untimely death. You must get a life cover if you are the sole earning member. In contrast, general plans protect you from any loss from various risk events that can affect your assets. Under this policy type, the insurer pays the money in case of any damage to a given asset. Payment: For a life cover, the insurer must pay the amount to the nominee whose name is given in the policy. This payment will be made in case of the death of the person. You can also opt for a life policy that will pay you a given sum after the policy term is over. The plan must be active at the time of the risk event given in the policy. In general insurance, the insurer must pay the money when the asset suffers any damage or loss. The policy terms will define the loss amount. Coverage: Life plan offers cover for risks to a person’s life. The loss here means death due to an illness or an accident. On the other hand, general plans offer cover for events like damage to assets such as cars, houses, and others. Premium: The premium for a life policy is fixed based on the coverage amount. This amount will not change till the policy is active. To continue the cover, the person must pay the premium before the due date. At the same time, the premium for general plans would depend on factors listed by the insurer. Here, the type of asset, its value, and risk factors are also taken into account. In the case of mediclaim, age and lifestyle are also considered. Tenure: The term of a life plan is usually longer. Here the premium is meant for a given period based on the policy term or the person’s age. This tenure can extend for a given period or till the person is of a certain age. In the case of general plans, the premium is meant for one year. It is up to the insured person to continue or stop the policy. If you want to enjoy the cover, it is vital to renew the policy every year. Sum assured vs sum insured: In the case of life insurance, the nominee is paid the sum assured as given in the policy. This is the amount for which the policy was taken and is paid in case of the person’s death. You can also opt for some policy riders when getting a new policy; it will increase the payout to the nominee as per the policy terms. The extent of risk cover for general plans is known as the sum insured. This is the maximum amount an insurer will pay in case of loss or damage. Beneficiary: The benefit of a life plan is for the person’s family or the nominee whose name is given in the policy. If there is a need, the insured can also change the nominee. For general insurance, the claim amount will only be paid to the insured person. Any nominee can get the amount only if the insurer has agreed to this at the time of issue of the policy. [B-02] Conclusion When it comes to opting for life insurance or general insurance, you can, in fact, not compare the two. Life plans offer cover for the risks to your life, and general plans will offer cover for your assets. Having a balance of various policies is vital for a secure future. Your focus should also be on getting high coverage for every policy you want. A higher amount will offer better safety from risks and events that may take place in the future. It is vital to have suitable insurance coverage for your life and assets. You can not guess what events will take place in the future. Though, what you can do is prepare for any serious problems. For a safe future, in terms of money, you must opt for suitable insurance policies. Make sure you conduct in-depth research to know all the available general and life insurance plans to make the best decision. For any help, you can contact experts at Piramal Finance, the leading name in the sector. We can help you with the knowledge and know-how of applying for insurance and all kinds of personal loans to manage your finances swiftly.
When you take out a business loan, you agree to certain terms and conditions. One of those is that you will make regular payments on the loan until it is paid off. If you should ever default on that loan, there are serious consequences. Your credit score will take a hit, and you may have to pay back the entire amount plus interest and penalties. This blog post will discuss the consequences of defaulting on a business loan. Let’s get started. [B-01] What is Loan Default? Loan default occurs when a borrower is unable to make their loan payments on time. This can happen for several reasons, but often it’s due to financial difficulties. If you’re struggling to make your loan payments, you must talk to your lender as soon as possible. They may be able to work with you to find a solution. Defaulting on a loan has serious consequences for both the borrower and the lender. For the borrower, it can damage their credit score and make it difficult to get future loans. Defaulting on a secured loan can also lead to the loss of collateral, like property or equipment. For the lender, default means they are unlikely to get their money back. This can damage relationships with other borrowers and make it difficult to get future loans approved. Consequences Of Defaulting a Business Loan Drop-in CIBIL Score One of the most important consequences of defaulting on your business loan is the drop in your CIBIL score. Your Credit Information Bureau (India) Limited or CIBIL score is a three-digit number that reflects your creditworthiness as a borrower. A high CIBIL score means you’re a low-risk borrower and vice versa. Therefore, if you default on your business loan, it will directly impact your CIBIL score, making it difficult for you to avail of any kind of credit in the future. Moreover, the interest rates on any future loans that you do manage to get will be higher than usual, further compounding your financial woes. Loss of Business Assets Another consequence of defaulting on your business loan is the loss of your business assets. This is because most business loans are secured loans, which means they’re backed by collateral. So if you default on your loan payments, the lender has the legal right to seize your business assets and sell them off to recover the outstanding amount. This can devastate your business, as it not only robs you of important resources but also disrupts your operations, leading to a loss in revenue. In extreme cases, it can even force you to close down your business altogether. So, it’s important to be mindful of the risks involved in securing a business loan and make sure you can afford the repayments. Difficulty in Availing Future Loans One of the most significant consequences of defaulting on a business loan is that it becomes difficult to avail of future loans. Lenders become wary of giving out loans to businesses with a history of defaulting, making it challenging for businesses to get the funding they need. Moreover, businesses that have defaulted on their loans also see a significant drop in their credit score, making it even harder to get approved for future loans. Declaring Bankruptcy Defaulting on a business loan can have some pretty severe consequences, the most drastic of which is declaring bankruptcy. This will ruin your business credit score, making it very difficult to secure future financing. It will also likely result in the loss of any collateral you put up for the loan, such as your home or car. In short, defaulting on a business loan can be a very costly mistake with long-lasting repercussions. If you’re having trouble making payments on your business loan, reach out to your lender as soon as possible to discuss your options. They may be willing to work with you to create a more manageable payment plan. Defaulting should always be seen as a last resort because of the significant damage it can cause to your business. Legal Action or Foreclosure If you default on a secured business loan, the lender may take legal action against your company to recoup the money owed. The lender could also foreclose on your business, which would mean that you would lose ownership of your company. This would be a severe consequence of defaulting on a business loan and should be avoided at all costs. [B-02] The Bottom Line Defaulting on a business loan can have serious consequences for your business. Not only will it damage your credit score and make it difficult to get future financing, but you may also be required to provide collateral if you default on a secured loan. If you’re having trouble making payments on your business loan, talk to your lender about other options before defaulting.
As a business owner, you require funds for various aspects. This can be for covering expenses, expanding your business, covering up for any loss or any future goals. Though you might have the finances required for this, often you might find yourself in need of a business loan. However, many may find getting a business loan easier said than done. Several lenders or banks require a lot of documentation or may assess the loan amount depending on your revenue. What if your business is a start-up? Or a small business that does not have high revenue? Are you not eligible for a small business loan? Well, you need not worry, there are several options where a low revenue-generating business is eligible for a business loan. This is what you can do to get a business loan despite low revenue. [B-01] Prepare a detailed business plan: A well-drafted and comprehensive business plan will make a significant difference in getting a business loan. This business plan should include your strategy for revenue generation, a firm model for business revenue, a proper management chart, a realistic projection of income, and a crystal clear manner of timely repayment of loans. Collectively they should convince your lender to approve your new business loan application. Ensure that you have a healthy credit score: One aspect of loan eligibility is the CIBIL score. This is a standard that several lenders follow. Maintaining a healthy credit score is important as it reflects well on your repayment characteristics and habits. Despite a low revenue, a lender may approve your business loan if you have a good credit score. You should intend to have a score of 750-900 as this is the accepted norm of a good CIBIL score making your case stronger in front of a lender. Prepare the paperwork diligently: Besides a firm business plan and a credit score, another vital aspect of attaining a sme loan is to ensure that you have all the required documents and in order. This will add genuinity to your cause and will give an insight into your company’s profitability and cashflow. If you can prove through your documents that you have regular income, profits, and cash flow, it is highly likely that you will attain your business loan. An easy way to attain a business loan is to get in touch with Piramal Finance. With over 1 million customers and a presence in 300+ locations across India, PCHF is the ideal lender to get a business loan with low revenue. It offers business loans to fund business expansion, machinery installation, inventory stock up, supplier payment or any other business related expense. It has simpler programs designed as compared to other lenders allowing higher eligibility. Their comprehensive assessment facilitates them to give the maximum loan amount to business loan seekers. Here are some key features of their business loan mechanism: Loan to a wide range of customers: Piramal Finance offers business loans to a wide range of customers. It caters to self-employed non-professionals and self-employed professionals. So in case you are a small business owner, PCHF can prove to be the ideal lender Digital driven process: Their digitally driven process offers you an online business loan along with quick sanctions of business loan ensuring that you do not have to worry about the usual hassles of getting a business loan. Maximum loan amount: PCHF’s business loan is programmed and designed much simpler than other banks and financial institutions. This means that you get the maximum loan to meet your financial requirements. Convenient doorstep service: At PCHF, you don’t need to spend hours waiting for your application. Its quick doorstep service allows you to get a loan without you leaving your home or office. [B-02] Conclusion: Though a business loan usually requires you to meet several requirements, it’s not mandatory for him or her to have a large revenue. There are several financial institutions that offer business loans despite the business having low revenue. All it requires is for you to reach out to the right financing company.
Before the onset of the early 2000s, homeownership was viewed more as a necessity rather than an investment one can make. However, as property prices skyrocketed, real estate investing opportunities became crystal clear. With real estate finance companies and private players jumping at the opportunity, so did the potential for real estate scams. Here are six such scams and how to avoid them. 1. Rental scams: Owning a house is still a dream for many, making renting the next best option. With properties being listed online, it has created a feeding ground for scamsters who list properties that don’t exist to extract a security deposit. Alternatively, the bait and switch is also a popular method, wherein you are convinced to pay a premium for a low-quality location. To avoid rental scams, do not make any payments online without further interactions, and it would be best to visit the property before you sign any agreements. 2. Title Scams: Venturing into real estate finance can be tricky, and oftentimes, you might find that someone is selling you a house they don’t even own. Scamsters could sell you a house using false documents and transfer the ownership without the real owner’s permission. It is easy to see why this can cause problems for the owner and buyer. With a push to dematerialize property ownership certificates (like how stocks are stored in Demat accounts), there should be little room for ownership disputes going forward, but always ensure you are on the lookout for this. 3. Broker Side Scams / Wire Fraud: If you are looking to venture into real estate finance or buy a home, you might look for an agent to go through. In the absence of a trusted broker, there are several ways you could be convinced by a fraudulent broker to transfer money. Remember that your broker’s job is not to create a disconnect between buyers and sellers but to facilitate seamless interactions. 4. Faux Foreclosure Relief: Often, homeowners cannot pay their loans and are about to have their homes foreclosed on or seized by the bank. Scammers prey on this fear, offering real estate finance options, such as altering the loan agreement terms or postponing foreclosure in exchange for a fee. Read the terms of your agreement carefully, and do not trust anyone over the phone unless you can verify their identity. You should only interact with your bank through official channels. 5. Commercial Real Estate Fraud: This is especially tricky because institutions like real estate finance companies are involved. If you are venturing into real estate investing, you could come across this scam, where loan amounts are spent towards unapproved objectives. You should get your loans exclusively through trusted vendors such as Piramal Finance. 6. Moving Fraud: From loan flipping to fudging real estate loans, India has seen many homeowners on the receiving end of the devious and deplorable actions of homeowner scamsters, and you must watch out even when you have to move furniture. A moving company might move your furniture based on a quote, only to raise the price after moving all the furniture to corner you into paying extra. Alternatively, an even more disgraceful form of the scam involves moving companies taking a deposit and/or collecting the furniture, only to disappear with a single track. Ensure you get multiple quotes from your movers and packers, try to rely on recommendations from friends and family, and do not pay any additional amounts, no matter how much they insist. Generally, companies that ask for large cash deposits are red flags. [B-02] Conclusion India still finds itself steeped in real estate scams, with many loopholes in the law. However, you can avoid six of these scams with a little due diligence. Ensure you double-check all agreements and quotes (you can use the Piramal Finance EMI calculator to get a rough estimate so you know you are not getting scammed with high EMI rates) and get your loans through reputable vendors only.
As someone who is either wanting to start a business or invest in business, a business loan can be a good option. This can help you with much needed business capital and fulfil your business objectives and goals. However, a business loan requires several necessary documents and conditions. One of them being, your ITR (Income Tax Return) form. We will be understanding the importance of an ITR form to avail a business loan. Before we start, let us know what exactly is an ITR form, an Income Tax Return form is a form that contains information related to a person’s taxes and income to be paid during the year. This is submitted to the Income Tax Department of India. [B-01] So Why do you need an ITR form for a Business Loan? Shows that you are financially responsible: Filing your income tax return within a government set date is a rule prescribed by the government. This is mandatory for people who are earning a particular amount of income. Filing the return reflects on your sense of completing a duty towards your nation and is an example of you being a good citizen. ITR is one of the important documents: A business loan requires several documents such as a balance sheet and profit & loss account. Along with these, it is also required to submit the filled ITR form of the last three years. These are part of the compliance and help in strengthening your loan case even further. Helps the lender understand your business: An ITR form lists your income from your business, interest earned from your savings and fixed deposits or an income from any secondary source. It also includes any interest that you might have paid for a loan. Overall, it gives a glimpse of your financial conditions and insight into your business. This will help your lender understand your financial position and assess your eligibility for an amount for your business financing. To calculate your income: An ITR form helps your lender to calculate your net income. This is done considering all the elements of an ITR form. On the basis of this income, the lender may decide how much loan amount is to be given or whether a loan amount is to be given or not when you apply for a business loan. Though we have listed the significance of the ITR for a business loan, there are many out there who don’t have an ITR form. So does that mean that you cannot get a business loan without an ITR? Fortunately, that is not true. You can get a business loan without an ITR. At Piramal Finance, you can get a business loan without the hassles of an ITR. The relevant documents required for a business loan at Piramal Finance are: Application form with a recent photograph Proof of identity such as passport, driving license, Aadhar Card, or Voter’s identity card. Proof of Income in the form of 6 months primary bank statement Proof of residence like passport, Aadhar card, driving license, Voter’s Identity Card, or utility bills like telephone bill /electricity bill etc. You can opt for online business loans and make the most out of their digitally driven process for quick sanctions and smooth processes. Their comprehensive assessment allows them to give you the maximum possible loan amount. It offers loans up to 10 lakh rupees without any collaterals. [B-02] Conclusion An ITR is an important document when it comes to fulfilling your tax obligations and assessing your financial position. However, it is not mandatory for you to have a filled ITR form to avail a business loan. Piramal Finance offers you hassle-free business loans thanks to their prompt services and simpler programs at your doorstep without requiring an ITR form.
If you’re starting to invest, the whole know-how of the process can be daunting. With multiple options at your disposal, it can get very confusing as to what would suit you and your needs. Of course, you would want to start with something small and, at the same time, something safe, right? And what if we were to tell you that there is an investment option for you that is just that and more, aka Gold Investment? Yes, you heard that right; the opportunity that we are talking about is investing in Gold ETFs. If you want to know more about this very lucrative option, read on and find the best Gold ETFs to buy and invest in. [B-01] What Exactly is a Gold ETF? Gold Exchange Traded Funds are passive investment instruments that can be treated as a stock because of their flexibility and are as simple to invest in as gold. Gold EFTs are better for multiple reasons but primarily because they do not have to be maintained or stored as they are just paper but are represented as physical gold. Gold EFTs are based on gold prices and invested in gold bullion, i.e., in bulk, before being valued by weight. One Gold ETF equals 1 Gram of Gold and is equivalent to the purity of physical gold. As these ETFs follow real-time gold pricing, it is very convenient to keep transparency in check. Now that you know what Gold ETFs are, how about a comprehensive list of the best gold ETFs to buy? Best Gold ETFs to Invest in Right Now! Let’s get to the hero of the story, shall we? Here are the top 8 best-to-buy gold ETFs you should get your hands on IDBI Gold ETF This gold ETF belongs to IDBI Mutual Fund House, and its Return Since Launch has been 4.27% The fund size of IDBI Gold ETF is worth Rs. 88.07 Crore The expense ratio is 0.35% The net asset value of this Gold Exchange Traded Fund is Rs. 4647.81 The minimum investment that is to be made under this ETF is of Rs. 10,000 Invesco India Gold ETF Invesco Mutual Fund House-owned gold ETF’s Return Since Launch has been 8.29% The fund size of this gold ETF is around Rs. 87.06 crore The expense ratio is 0.55% The net Asset Value of this Gold Exchange Traded Fund is Rs. 4,530.53 The minimum Investment to be made under this ETF is Rs. 5,000 Aditya Birla Sun Life Gold ETF Birla Sun Life Mutual Fund House-owned gold ETF’s Return Since Launch has been 6.59% The fund size of this Exchange Traded Fund is worth Rs. 349.84 crore The expense ratio is 0.54% The net Asset Value of this ETF is Rs. 45.91 Rs. 5,000 have to be invested as the minimum value to get started. HDFC Gold ETF Return Since the Launch of this HDFC Mutual Fund House has been 7.81% The fund size of HDFC Gold ETF is worth Rs. 3157.97 crore The expense Ratio is 0.59% The net Asset Value of this ETF is Rs. 44.68 The minimum investment to get started with this ETF is Rs. 5,000 SBI Gold ETF This ETF comes under SBI Mutual Fund House and has made an 8.63% Return Since its Launch. The fund size of the SBI ETF is worth Rs. 2677.85 crore The expense ratio is 0.55% The net Asset Value of this ETF is Rs. 44.76 The minimum investment to be made under this ETF is Rs. 5000 Axis Gold ETF Axis Mutual Fund House-owned Exchange Traded Fund’s Return Since Launch has been 6.76% The fund size of Axis Gold ETF is worth Rs. 702.53 crore The expense ratio is 0.53% The net asset value is Rs. 43.58 The minimum investment to be made to get started with this ETF is Rs. 5,000 Kotak Gold ETF Kotak Mahindra Fund House-owned Gold Exchange Traded Fund’s Return Since Launch has been 11.21% The fund size of Kotak Gold ETF is worth Rs. 2426.43 crore The expense Ratio is 0.55% The net Asset Value of this ETF is Rs. 43.61 The minimum investment value for this ETF is Rs. 5,000 Nippon India Gold ETF This Nippon India Mutual Fund House-owned Gold ETF’s Return Since Launch has been 10.32% The fund size of this Gold Exchange Traded Fund is worth Rs. 6532.62 crore The expense ratio is 0.83% The net value asset of this ETF is Rs. 43.21 The minimum investment value that is to be paid is Rs. 10,000 Things to keep in mind while investing in Gold ETFs Every ETF could be the best ETF to buy if you make sure to research thoroughly and keep these points in mind: Keeping track of the fund’s past performance is vital to know what you’re investing in and ensuring the most negligible risks are involved. To do so, it is advised that you consider at least three years’ worth of data. The market constantly fluctuates, and you must keep asset liquidity in mind to minimize risks. You must always track index funds to check for any inconsistency between the Net Asset Value (NAV) and the actual gold value, which could otherwise lead to an error. [B-02] Final Takeaways If you’re an investor, you know how important it is to diversify your portfolio and what could be better than a less-risk and more-profit option of a Gold Exchange Traded Fund? Gold acts as a shield against never-ending market volatility and inflation. Investing in Gold ETFs is as secure as security can get since there are no theft threats, and on top of that, you wouldn’t even have to incur any making or additional charges. It’s not without any reason that investing in gold ETFs is becoming increasingly popular, so all in all, get investing in the best gold ETFs in India today! Piramal Finance offers you relevant information regarding multiple exchange-traded funds across India. For any banking loan-related query, you can visit the website. The financial experts will help you better understand your finances, from personal loans to mutual funds, better.