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Complete Guide On How To Write Cancelled Cheque

Most banks issue their customers chequebooks to make it easy for the account holder to draw money or make payments easily. You might also be using cheques from your chequebook for the same purpose. Sometimes you must submit a cancelled cheque for some vital tasks. In such a situation, you must know how to make cancelled cheque without errors. A cancelled cheque is not a valid instrument as per the rules of the banks. So, the cancelled cheque cannot be used to draw money from your bank account. Various entities can use this cancelled cheque to verify your account details with the bank. Hence, you need to learn how to write cancelled cheque for such important needs. Read on to learn more about writing a cancelled cheque. [B-01] What is a cancelled cheque? A cancelled cheque is simply a new leaf of a cheque that has been cancelled as per the guidelines. Every cheque includes crucial details like your name, account number, bank and branch details, cheque number, IFSC, and MICR code. As a cheque includes all these details, it is used by many entities to verify your account details. As a signed cheque can be used to draw money from your account or make payments, you must never issue a blank, signed cheque to anyone. It is hence vital to cancel the cheque and ensure that it will be used only to verify the bank details and that there will be no misuse. A cancelled cheque is not valid for bank-related tasks and is only helpful for tasks like creating an ECS mandate, availing loans, or buying an insurance policy. It will be useful if you maintain a record of all the cancelled cheques you have issued for future reference. It is essential to note that another reason to cancel a cheque is if you made some mistakes while writing it. To prevent its misuse, you must cancel any such cheques as soon as possible. The process for how to make cancelled cheque will be the same for all purposes. Need for a Cancelled Cheque It is important to note that when you cancel a cheque due to a mistake, it cannot be precisely termed as issuing a cancelled cheque. It is mainly you ensuring that no one misuses the cheque. Here are some reasons to know before you learn how to write a cancelled cheque. For EMIs: When you obtain a loan, the bank or the financial institution will ask you to submit a cancelled cheque. This cheque will only be used to set up the EMIs that will be debited from your bank account. So, ensure the account is active and has enough balance to honour the EMIs. Receiving payments: If you have registered as a vendor or freelancer with a company, then your bank details are required for the payment. Most companies will ask for a cancelled cheque to process the payment to your account. For KYC: If you are looking to open a Demat account or wish to avail of other financial facilities, you will be asked to submit a cancelled cheque by that particular entity along with other documents like a PAN card and an Aadhar card. Receiving Salary: Most employers now transfer the employee’s salaries through direct bank transfers. You will be asked to submit a cancelled cheque to register your account details with your employer. Activating ECS: If you are looking forward to starting the ECS facility on your bank account, you must submit a cancelled cheque to the bank. Otherwise, this service cannot be started. Starting a bank account: Many banks require their new customers to submit a cancelled cheque as part of the process. If you wish to open a new account, the bank may ask for a cancelled cheque. Buying Insurance: If you want health or life insurance, the insurance company will ask for a cancelled cheque. Registering your bank details and transferring claim payments to your account is necessary. How to Write Cancelled Cheque? Before noting the steps for how to make cancelled cheque, it will be useful for you to ensure that you do not assign this task to anyone else. You must complete it yourself to avoid any errors. Here are the steps you need to know on how to write cancelled cheque: Take out your chequebook for an active account. If you have multiple bank accounts, select a chequebook with the maximum number of check leaves available. This will ensure that your normal banking tasks are not affected by the lack of blank cheque leaves available. Draw two parallel lines across the middle of the cheque. In between these lines, write the word “Cancelled.” While you can use any type of pen, a blue-coloured ballpoint pen is ideal. While drawing the lines, ensure they do not cover any crucial details like account numbers or IFSC. You may also cancel out the words “or bearer” and put a line in the amount box. This is not necessary, though. Make sure you do not write any other details on the cheque. Do not sign or enter the date in the cheque. You must make a record of the cancelled cheque. So, in the counterfoil, enter the details like the cheque number, the date on which it was issued, and why it was issued. This will help you manage the cheques in a better way. You can also click a picture of the cancelled cheque and email it to yourself for personal reference. [B-02] Conclusion You must know how to make cancelled cheque to avoid any issues later on. The steps in the process of how to write cancelled cheque are very simple and easy to complete. But it is vital to ensure that you issue cancelled cheques carefully and only when necessary. 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 and personal loans.
08-11-2023
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Mutual Funds

Top Mutual Fund Investment Plans With High Returns

A mutual fund is an arrangement where several shareholders collectively purchase securities. Age, risk tolerance, time window, and asset allocation also play a significant role in selecting the right plan. Investing in top mutual funds is an effective way to grow your wealth. However, choosing the perfect investment plan can be scary for first-time investors. This article will help you examine the kinds of mutual fund investment schemes that may be right for you. Additionally, we will provide a list of some of the top-performing mutual funds in India. Select the mutual fund investment plan that suits you best. Types of Mutual Fund Schemes As per SEBI guidelines, there are three types of mutual fund schemes. Each scheme serves a different customer objective, as listed below- Equity Schemes are excellent for long-term investment goals but highly volatile in the short term. Since equity involves dealing in stocks, it is a high-risk investment. Hence, if you have a longer investment horizon, i.e., are willing to invest for a minimum of five years, equity schemes may be the right choice. Debt Schemes: These are also called income funds or bond funds. It deals with investments in fixed-income securities and is generally a better choice than equity schemes. It is ideal for investors with a maximum time horizon of one day to three years. Hybrid Schemes: The time window for this particular scheme is three to five years. A hybrid scheme diversifies your portfolio by investing in different assets, which reduces risk exposure. It is a mix of equity, debt, and other asset types. Perfect for medium to long-term investments. What are the top mutual fund investment plans with high returns? We have prepared a list of some of the top-performing mutual funds in India, divided into equity, debt, and hybrid categories. *return rates were last updated on 22 September 2022. Equity Mutual Fund Equity mutual funds invest mainly in company stocks. They can be Active funds, where a fund manager actively manages the portfolio and aims to beat the benchmark index, or Passive funds, where the fund manager only prepares a portfolio that matches the market index. These funds allow a shareholder to have a more diverse portfolio by investing in different stocks/sectors in the market, decreasing the risk rate in the long run. Two options you can consider if you are thinking of investing in Equity funds- ICICI Prudential Technology Direct Plan-Growth Ideal for long-term investments, ICICI Prudential is one of the top-performing mutual funds in India. It has an expense ratio of 0.78%, a minimum investment of SIP hundred rupees, and a lump sum of five thousand rupees. The fund is nine years and six months old. It provides a five-year return rate of 26.82%. Tata Digital India Fund It is another top mutual fund investment plan that has consistently maintained good market records. This plan has an expense ratio of 0.34%. The minimum investment required is an SIP of 150 rupees and a lump sum of 5,000. The fund age of this particular plan is six years and nine months. It has a five-year return rate of 27.84%. Debt Mutual Funds Debt mutual fund schemes include investments in corporate bonds, gilt funds, government securities, and other fixed-income resources. Shareholders wishing to garner stable returns and invest in a low-risk environment opt for Debit mutual fund schemes. The two best options you can choose from if you want to invest in Debit mutual funds are – IDFC Government Securities Fund Constant Maturity Direct- Growth This mutual fund scheme, by IDFC mutual fund, is a Gilt with a 10-year Constant Duration. It has been around for nine years and eight months and is consistently one of the top-performing mutual funds. The value of assets under management (AUM) two hundred and nineteen crores. The expense ratio is 0.49%, slightly higher than other mid-sized mutual funds. A minimum investment amount for this fund is one thousand rupees (SIP) and a lump sum of five thousand rupees. This scheme is ideal for long-term investment as well. The five-year return percentage is 8.27%. SBI Magnum Constant Maturity Fund This medium-sized fund is a Gilt with a 10-year Constant Duration from SBI Mutual Fund. It is one of India’s top-performing mutual funds with a good track record. The net worth of its assets under management (AUM) is eight hundred and fifteen crores. This fund maintains an excellent credit profile and has been around for nine years and eight months. It has an expense ratio of 0.33%, at par with most mid-sized mutual funds in India. The SIP starts at five hundred rupees. This mutual fund scheme has a five-year return percentage of 7.58%. Hybrid Mutual Funds Hybrid mutual funds offer choices for shareholders with high-risk tolerance to those with moderate choices. It guarantees a diverse portfolio concerning assets (equity, debt), and an investor will have multiple options within each asset category. For instance, you can choose between large-cap and small-cap stocks in Equity. If you enter the mutual funds market, hybrid funds can be a perfect choice. Two options you can choose from – Quaint Multi Asset Fund Direct-Growth This mutual fund scheme from Quantum Mutual Fund was launched in 2013 and has a fund age of nine years. It falls under the Multi-Asset Allocation category. It is a small mutual fund with an asset value of three hundred sixty-two crores. For a fund of this size, the expense ratio of 0.56% is higher than that of other mutual funds in this category. The five-year return percentage is 20.61%. Axis Triple Advantage Fund Axis Triple Advantage Direct Plan-Growth has a net worth of 1,817 crore assets under management (AUM). In contrast to regular market trends, it is a mid-sized mutual fund scheme. It has a fund age of nine years and eight months. The expense ratio for this scheme is 0.64%. It has a five-year return percentage of 12.1%. How to start investing in top mutual funds in India? Before dealing with mutual fund schemes, you must have certain documents. The list is as follows – PAN Card Address proof ( Aadhar Card, Voter Registration Card, Electricity Bill, etc.) Your photograph A cancelled cheque or a bank statement According to government guidelines, every investor must complete the KYC (Know Your Customer) formalities before investing in mutual funds. You can do this in person by approaching a registrar or a mutual funds office. Fill up the required form, and submit a copy of the necessary documents directly at the office. Along with your documents, you can also fill up the form for your first investment. Some mutual fund offices allow e-registration, i.e., you can complete the KYC formalities online. Once you complete these formalities, you can start investing directly. [B-02] Conclusion Finally, before you formally invest, there are two other things to remember. One, check how well the scheme is performing in the market. And two, make sure to check the performance record of your fund manager. If you need help with finances, you can always take the help of experts such as Piramal Finance to guide you through your financial doubts. If you need advice regarding managing your mutual fund investment plans, visit our website now!
08-11-2023
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Cards

How to maximise the advantages of credit cards?

Today, more economies are going digital and cashless. Credit cards offer many benefits, including instant cash access, no stress of theft and attractive reward points. Further, there has been a rise in online credit card spending. With online shopping, you don’t even have to step out of your home. A survey shows that online spending outweighs in-store shopping by 76%. A credit card may have made spending easy and simple, but you must be careful when using it. This article will share some tips related to maximising the advantages of credit cards in the best way possible. [B-01] Why do you need to use your online credit cards wisely? To avoid late feesYou have instant access to funds with credit cards. With online shopping, people are using it more. But, what you forget is that it is a debt. You need to pay the amount on the due date. Hence spend what you can pay later. Otherwise, you will face late fees. To redeem reward points With credit cards come the reward points. People keep on buying stuff and adding them up. But they forget one thing. Reward points have an expiry date. Usually, it is two years. Hence, you must redeem them within that time. If not, they will expire. Avoiding unnecessary debtA credit card has simplified our lives. But it does not mean we take on multiple cards. Some people also take one credit card to pay other card bills. That is a big red flag. You are just piling on debts. Maintain credit score Credit card bills are also a debt. Paying them on time improves our credit score. Too many cards or enquiring about them reduces the score. The credit score represents the borrower worth to the lender. Lenders approve the loan based on the credit score. Hence, make sure you pay bills on time. Avoids fraud and errorsYou may have an unauthorised transaction in your statement. It may be due to errors or online fraud. You may lose funds. It will also reduce the credit score. Hence, to avoid that, it is essential to use them wisely. How to manage and use online Credit cards wisely? Read the credit card agreements Before you buy a card, make sure you read the fine print carefully. It contains all the details. Be it due date, minimum due amount, late fees, cash advance charge and annual fees. It will help avoid any defaults. Don’t default on paymentsto three percent. Check your statements You can ask for physical statements from your bank. But, a quick way is to check them online. You can check them anytime and any day. It will help you keep a check on all expenses. If there are any questionable items, you can report them quickly. Hence, it is better to check them regularly. Avoid owning multiple cards , cashback and offers Try to pay more than the minimum due The minimum due is the least amount you must pay on your credit card bill. It is less than the entire amount. Also, it avoids late charges. But, if you only pay these, the balance amount will attract interest. Later, you will need to pay finance charges. Hence, try to pay the full bill amount. Maintain a low credit utilisation ratio A credit utilisation ratio reflects your credit usage. It shows how much credit you use out of the total credit available. A low credit usage shows you take on debts carefully. It reflects well on your credit score too. Lenders prefer a credit use limit of less than 30%. Be careful To avoid fraud, you must be cautious when using your credit cards. When using online credit cards, use sites with proper security encryption. Don’t click on random links and enter your credit card information. If you see any suspicious transactions, report them immediately. Also, never share your card OTP (one-time password) with another person. Be disciplined With cards, it may be easy to forget how much we have spent already. The cashback offers can further hamper it. An important tip is to control your purchases. List your monthly expenses and other debt bills. Make a monthly budget and spend accordingly. Try to spend on what you need. Research Every bank has its credit card now. Also, all of them come with great offers. Hence, do proper research. Low-interest rates and annual fees are the best offers. Even in special rewards, choose the ones which you will use. Also, you can negotiate the rates further. Avoid cash advancesIf you need to withdraw cash with your credit card, try to do it only for emergencies. A cash advance is borrowing against your credit card. Credit cards come with a cash advance fee, which is high. [B-02] Final thoughts These tips and suggestions will help you properly use the advantages of credit cards. Your children can also learn financial discipline with a credit card. You can add them to your card as an add-on. It will help you keep track of your finances. If you aren’t sure where to start, consult an expert like Piramal Housing Finance. Their experts can help you improve your CIBIL score. They can also assist you in choosing between personal loans and business loans.
08-11-2023
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Tax Savings

Top Tax Resolutions For 2022 Which You Should Consider

Are you worried about taxes? Then this article is for you! There are a few common tax-saving ways known to everyone. But there are a few non-popular ones too. In this article, those points are discussed in detail. The conventional methods are: Tax-saving Fixed Deposit. HRA. Provident funds. PPF. Deduction against home loan interest. In this article, we’ll discuss both the common and the less popular ways. Use them while ITR Filing and save taxes. [B-01] What are the ways of Saving Tax? Re-route your investments through parents (Senior Citizens) Senior citizens have several tax benefits. These benefits are mentioned in the income tax rules. Anyone can gift money to their parents tax-free. The parents have the privilege of re-investing that money. They can invest the funds in schemes for senior citizens. Someone can use this option to re-route their earnings for investment. However, they need to ensure that their parents have low incomes. Otherwise, they will have to pay taxes for this. Increase Contribution to National Pension System: If someone is an NPS subscriber, then they get a few benefits. Then they can do the Income Tax Planning accordingly. Under Section 80CCD(1B), they can get an extra INR 50,000 deduction in one financial year. This deduction is in addition to the INR 1.5 lakh deduction. According to Section 80C, the INR 1.5 lakh deduction is allowed. For expenses against internet and telephone, one can save tax: Under Income Tax Rule 3(7) (ix), employee telephone reimbursement is tax-free. If someone’s work requires using such facilities, they can save tax on it. However, the original bill needs to be submitted to the employer. Only then can they enjoy this benefit. Save tax on parents’ health and insurance payments: For paying health insurance for family and self, anyone can get an INR 25,000 deduction on tax. This is mentioned under Section 80D. Hence one must do Tax Planning accordingly. Anyone can also be titled to the extra tax deduction. They get an additional removal if they pay for their parent’s insurance. This, too, is mentioned in Section 80D. You can claim INR 25,000 if your parents are below 60. And claim a deduction of INR 50,000 if the parents are 60 or above. If someone’s health insurance does not cover their parents, they get an extra deduction. They can claim up to INR 50,000 in a year for medical expenses. Save Tax on donations and charity: You can claim a deduction during ITR Filing if you donate to charities. On specific contributions, you can claim a 100% deduction. And on others, you can claim a 50% deduction. It is eligible for deduction if the donation is made in cheque or cash for up to INR 2000. It is mentioned in tax2win. Fixed Deposit for Saving Tax: While in Tax Planning, one can invest in fixed deposits since they are tax savers. Like this, they can have a tax deduction. It is mentioned under Section 80D. Up to INR 1.5 lakh can be claimed to be invested on tax-saving fixed deposits. There is a tax on the earnings due to the interest. And one gets a lock-in period of 5 years. The interest usually is between 5.5%-7.7%. PPF (Public Provident Scheme): One can consider PPF for tax savings. It is a long-term savings option and is also an investment option. One needs to open a PPF account for this. They can do so in a post office. One can do this in their respective branch of private or public banks. One can claim a deduction of INR 1.5 lakh in a financial year. Section 80C mentions this explicitly. Life Insurance: It is the primary job of the bread earner to get life insurance. It plays an important role in their financial portfolio. On the premiums paid, it offers tax benefits to the policyholder. Insurance can be both traditional and market-linked. Keep this in mind during ITR Filing. It is covered under Section 80C. There are several plans, like: 1. Money Back Plans. 2. Term plan. 3. ULIPs. 4. Endowment plan. Regardless of the nature of the plan, policyholders can have tax benefits. Mutual Fund for Tax savings:It is also known as ELSS (Equity Linked Savings Scheme). This is suitable for investors ready to take a medium to high risk. The money is invested in the stock market or among other such assets. The period for which the investment is locked is three years. Section 80C covers this plan, and up to INR 1.5 lakh is eligible for deduction. How can you plan for tax savings for the year? 1st April marks the beginning of the financial year. It is also the beginning of the tax-saving season. It is the same for both self-employed and salaried persons. One should start tax planning right from the start. Other than deductions, tax-saving investments also help to earn tax-free income. It is wise to invest in the early quarters. It is so that one gets time for Income Tax Planning. Section 80C mentions most of these investment plans. According to it, the taxpayers are eligible for a deduction of up to INR 1.5 lakh. [B-02] Conclusion Here in the article, we discussed various ways to save tax. These measures can help one during ITR filing. This article also talks about the process of having a tax-free income. The different ways of investing to save taxes provide different options. One can choose any one or multiple options based on their needs. If you need help with finances, you can always reach out to a financial expert like Piramal Finance. We will suggest what’s best for you and help take care of your personal loan requirements if any.
08-11-2023
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Other

What is Meant by Account Balance, and How to Check it?

Are you going to the bank to check your account balance? Is it not tiring? With advanced technology, banking is possible at your fingertips! What is this all about? Let’s know in detail. Your account balance is the amount of money in your bank account. The total amount of money deposited in the account minus the total amount of money withdrawn from the bank account will give the balance in the account. But how do you check the balance? Let’s dive into the article to learn how to check the balance. [B-01] Different Ways to Check the Account Balance The Traditional Way of Banking People have visited the banks in person since the banks became functional. You can approach the bank and update your passbooks to check all the account transactions and balances. The banks also provide a detailed account statement upon your request, which contains a detailed list of every transaction in your account. You can request your account statement for a month, a quarter, a year, or a custom range of dates. You can track all your transactions and know the balance after every transaction. So, this option is challenging and takes a lot of time to see the balance amount. Just a Call for Balance Check The banks moved a step closer to helping people without internet connectivity. Phone banking is the new, more innovative way to bank. If your mobile number is linked to your bank account, it is easy to get the balance. As a part of the Know-Your-Customer campaign and making it mandatory, the RBI has issued guidelines to have customers’ mobile numbers, ID proofs, and address proofs linked to their bank accounts. This move made banking a step closer for people living in areas without internet connectivity. With just a missed call, you can check your bank balance. Based on the bank, the number used is different. If you have a State Bank of India account. Make sure the mobile number you are using is linked to your bank account. Give a missed call to 919223766666 from your registered mobile number. Wait for the message from SBI that displays your account balance. This also shows the last five transactions in your account. For customers having an account in Punjab National Bank. Primarily, register your mobile number with the bank account. 1800-180-2223 is the number you have to call to report a missed call from your registered mobile number. If the number provided above does not work, you may try giving a missed call to 0120-230-3090. The message received from PNB displays the account balance. For Indian Bank customers. After registering your mobile number with your concerned bank, leave a missed call on 8108781085 to perform the balance check. This drops a message with the bank balance on your phone. Customers who have Union Bank accounts. Union Bank also offers missed call services for customers who register mobile numbers. A single missed call to 09223008586 will provide you with your bank account balance. Similarly, every bank provides you with a specific number to find your balance in your bank account. SMS (Simple Way) Same as the above, you can also send a single SMS to the specific numbers mentioned on the bank’s official website. For exact keywords to perform the balance check, see the details below. In the State Bank of India account. Register for SMS banking by visiting the nearest branch of the state bank. Send SMS “BAL” to the same number used for the missed call, as mentioned earlier. Alternatively, send ‘MSTMT’ to the same number to obtain a list of your five most recent transactions. It also shows the balance in the account. If your account is at Punjab National Bank. Send an SMS with the message BAL<space>Your Account number or send MINSTMT<space>Your account number. This delivers the message containing the balance in your bank account to your phone. For customers with Indian Bank accounts. Indian Bank has a unique system in place that makes it stand out. The customer needs to register for mobile banking and generate an MPIN. Anywhere 94443-94443 offers a lot of services. Before that, reach out to the bank nearby to learn more about MPIN and mobile banking. Internet banking: Everything in one place The easiest method to check your account balance is by accessing internet banking. After visiting the nearest branch of your bank, register for the internet banking facility. Once registered for internet banking, all you have to do is activate and log in to your account. With the internet banking facility, you can check your account balance and statement, perform fund transfers, do a balance check after the fund is transferred, and many more things. The only disadvantage is the lack of high-speed internet in most locations. Therefore, find which is more suitable for you from the above ways. Internet banking will suit you if you live in an area with good internet connectivity and the internet is reasonably priced. Mobile banking is far more convenient if you live in a location with poor internet facilities. Hence, finding the bank balance also depends on your accessibility. [B-02] Becoming smart: knowing the account balance Knowing the above information makes it very clear that understanding the balance in your bank account is not difficult. The information above lets one quickly find the total money in their account. Contact Piramal Finance for more information on all banking services. We offer complete banking information, including personal loans and customised financial guidance, with all the leading banks in the country.
08-11-2023
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Stocks Markets

Things to know about the International Stock Market

Making investments in the Global Share Market does not have to be scary. Here is a guide to help you understand the stock market and things to remember while investing your money. Putting money in stocks, properties, and financial schemes to yield a profit on the principal amount is known as investing. Another popular term that has become synonymous with investing is ‘stocks.’ A stock, in simple terms, is your share or ownership in a company. Thus a stock market is where people buy and sell stocks and other financial instruments. In today’s world, investing is one of the fastest and most sought-after ways of generating passive income. It is always a viable way to build one’s passive income. While it is profitable, it is also risky. Although everyone wants a piece, most people do not know what to expect. This article will help you understand the International stock market. [B-01] What is a Stock Exchange, and what makes up the stock market? A Stock Exchange is where investors and companies meet to trade their stocks. When many such exchanges happen, it makes up a stock market. Things to Know It is diverse. There are many stocks from around the world. It offers a variety of options that otherwise would be unavailable in your country. Almost anyone can invest in the stock market. All you need is some money and a stockbroker. It is prone to risks. The performance of stocks is affected by politics, natural calamities, and economic disturbance. It is adaptable. Over the years, the S&P 500 has shown resilience in times of despair. It has managed to bounce back quickly from any slight disruption in the market. This is due to the diverse set of investors participating in these exchanges. It is one of the best ways to diversify your portfolio. The stock market is not just a place for buying or selling stocks. You can even buy equities and bonds. Besides, diversifying your portfolio also helps you cut down on many risks. How can you invest in the Global Share Market? First, a share represents a portion of ownership of the company. How’s it different from stock? Companies can sell shares directly, but this is not possible with stocks. A share market is where the trade of these shares takes place. The Global Share market is gigantic and promising. But despite the opportunities it might present, you will need someone to help you find the way. Open a trading account with the help of a broker. After this, the broker will help you open a Demat account. Here, you will be able to hold your securities and stocks. Once these two accounts have been set up, they will be linked to your bank account. Congratulations, you are now ready to invest in the global share market. What to invest/ buy in the Stock Market? You can buy and invest in equity shares, bonds, mutual funds, derivatives, and exchange-traded funds. How to become a good investor? Analyze your current situation and decide your risk appetite. The bigger the risk, the bigger the return. But this is not always the case. Look at your current situation and assess the liabilities in your head. Do not take risks if you do not have surplus money to spare. Test the waters before diving into the deep end. Become a regular investor. It is like planning a budget and setting aside sums of money. Keep some funds for your investments. You could buy stocks or set up a SIP to grow your money. Work on your portfolio. It is ideal to not invest in one stock but buy shares of different companies. This is a smart move as it would help you lower risks. Should you buy International Stocks or participate in the Global Share Markets? Stocks and bonds of different countries have different levels of risk. Although it’s a bit of a gamble, it’s worth it. When you buy international stocks, you also get a few tax incentives. When you buy International stocks with domestic shares, you diversify your portfolio and gain exposure to new patterns and competition. Risk Factors to keep in mind while investing in the International Stock Market: Always keep the currency risk in mind. There is a high possibility of the currency weakening. In times of crisis, foreign investors run to pull their money from the market. This has a detrimental impact on the market. Finally, you might face some complications when it comes to paying taxes. Thus before investing in the International stock market, research well and seek advice from stockbrokers. [B-02] Conclusion Investing is a skill these days. Knowing where to put your money and multiplying it is commendable. And the best part is that with some help, anyone can do it. Despite its significant risks, trading in the Global Share Market increases your knowledge, risk appetite, and experience. Keep in mind that diversification is essential. Investment is an asset for wealth creation. You can easily navigate the market with the help of a stockbroker. Understand all your risks and invest accordingly; you will be rewarded. To learn more about investments, markets, and finance, visit the Piramal Finance website. Help yourself to the knowledge of wide-ranging financial products and services, especially all things stocks and personal loans and business loans.
08-11-2023
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Mutual Funds

A Complete Guide To Investing In Mutual Funds

Mutual funds are one of the easiest ways to enter the financial markets. They help you build wealth. They are a great option for wide-scale investment. Skilled mutual fund managers manage them. Hence, you can invest without examining the depths of the financial markets before investing your money. You can easily pick the best mutual funds to invest in with little effort! What comes next is taking the benefits of investing in these funds. Do you want to invest in the best mutual funds in India? Here is everything you need to know about starting your investment journey in this domain. [B-01] Types Of Mutual Funds Broadly speaking, there are three types of mutual funds. It is done based on investment in major instruments. Let us explore the difference between them. Equity Mutual funds in this category majorly invest in equity stocks. Based on market capitalization, these funds are further subdivided. The best-performing equity mutual funds can help you build wealth if you invest for the long term. While they offer higher returns, they also carry a risk of fluctuation in the short term. Debt You can find some of the best mutual funds in India in this category. These mutual funds mostly invest in corporate bonds, government securities, and other similar investments. They are similar to fixed-income returns. And they carry a low-risk profile. They are a clear choice when you must meet your short-term goals while preserving capital. Hybrid As the name suggests, these schemes combine the elements of both equity and debt mutual funds. A good fund manager designs a likeable ratio between the two. It helps achieve the benefits of both types of mutual funds. At the same time, it offsets their downsides. Accordingly, you will find hundreds of the best mutual funds in India. They are regulated by the Securities and Exchange Board of India (SEBI). How Do Mutual Funds Work? An Asset Management Company manages and operates a mutual fund scheme. Every scheme has a different objective and investment needs. So, every mutual fund works by pooling funds from like-minded investors. The funds are divided between different financial instruments. It is based on the fund’s objective. This includes bonds, securities, stocks, gold, etc. The goal is to earn the best returns on the fund investments. At the same time, they divide the income among the investors. This happens on a proportionate basis. But what merits the search for the best performing mutual funds? Let us find out their benefits. What Are The Benefits Of Mutual Fund Investments? Mutual funds offer several benefits, which make them a handsome investment option. Let us take a look at some of the best benefits of mutual funds: Investing in mutual funds brings the benefit of professional collaboration. Your money is managed and invested by qualified mutual fund managers. They hold extensive knowledge of the markets and strive to earn maximum returns on the fund portfolio. Seeking the best mutual funds is the best way to benefit from their expertise. It is beneficial when you do not have the time or skills to rage the move of the market yourself. It can be very convenient to invest in mutual funds. The process of purchasing mutual funds is seamless and paperless. You can complete the formalities of investing in the best-performing mutual funds from the comfort of your home. Investing in mutual funds paves the way for you to enter the financial markets. This is beneficial when you do not have much money to commit. You can even start investing with as little as INR 500 a month. Moreover, you can choose the frequency of investment in a year. And you can tune it according to your income. Another reason to find the best mutual funds to invest in is diversification. Mutual funds help to minimize risk and losses to the investor. And they do so cost-effectively. You can obtain tax deductions by investing in mutual funds. According to Section 80C of the Income Tax Act, you can claim a deduction on investments made up to INR 1.5 Lakh. Things To Consider As A First-Time Investor In The Best Mutual Funds Before starting your journey as a mutual fund investor, it might be worthy of considering the following: Always have a goal in mind before parking any funds in mutual funds. Lay down your goals, time horizon, budget, and risk capacity. Accordingly, you can set aside a fixed sum of money each month for investment in the best mutual funds. Market capitalization is another way to categorize mutual funds. To make the right pick, it is necessary to examine the fund and your position as an investor in mutual funds. A good way to assess the performance of a mutual fund is to check how it has performed in the last five years. You can check factors such as expense ratio, track record of the AMC, and exit load. They play a vital role in deciding whether a mutual fund is ideal for investment. Do not look at mutual funds solely as a tax-saving device. Mutual funds help to learn about investment discipline and build wealth over time. The ideal time frame for mutual fund investments should be long-term, not short-term. You can invest in mutual funds through a lump-sum investment or Systematic Investment Plan (SIP). As a new investor, SIP may be the best route to enter the world of mutual funds. [B-02] Conclusion The world of mutual funds holds many benefits for investors. Returns in mutual funds are not always assured. Yet, investing your money in the best mutual funds will bring many benefits to you. So, there is no point in remaining a mere spectator in the face of trending mutual funds. It is an attractive option to begin your investment journey with mutual funds. You can begin by finding the best mutual funds to invest in. Get the best advice regarding all financial products, mutual funds, and personal loans from your well-wisher and financial expert, Piramal Finance. Visit us now!
08-11-2023
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Schemes

Which is Better: Difference between PPF &amp; NPS Calculator

People use PPFs and NPSs to invest in the long term. PPF is only a way to borrow money. On the other hand, NPS is a way to invest linked to the market. The centre tells you the PPF rate of interest every three months. But when a person has an NPS portfolio, their money is exposed to stocks and bonds. The interest rate on the PPF is 7.1% right now. Let’s say a person chooses a 60:40 risk split between debt and equity in an NPS account. On their investment, they should expect a 10% NPS interest rate. [B-01] What is A PPF Calculator? The PPF calculator is a website-based application. It lets you figure out how much your PPF contribution will be worth as an investment over time. PPF is an investment plan backed by the government that has many benefits. It is a way to put money away for a long time. It has been locked in for 15 years. Because of this, higher returns are given. PPF also lowers the taxes you have to pay while you work. You can use a PPF calculator online. The calculator will use the PPF method to figure out what to do. The method will figure out how much your whole investment is worth. This is done when a certain amount of time and the rate of interest on the PPF account are given. You could also make plans for your retirement with the help of a PPF portfolio calculator. With the PPF’s features, you can save for retirement in a structured way. Let’s say you already have a retirement fund. You can figure out how much you need to spend over a certain amount of time to reach your retirement goal. But you can only put Rs. 1.5 lakh into a PPF portfolio every year. What is the National Pension System (NPS) Calculator? The National Pension System is a retirement plan set up by the government. It’s a system based on contributions. This system’s number of pensions is based on the corpus size. The NPS calculator can tell you how much money you will have saved when the plan ends. And the amount you expect to get each month from your pension. The amount invested and the profits made will determine how much money is in the corpus by the time the person retires. The NPS calculator can be used by people who can join the plan. According to the rules of the NPS, any Indian citizen between 18 and 60 can join. You must follow KYC rules before you can start investing in the plan. Difference Between PPF and NPS Calculator The PPF rate calculator lets you figure out how the interest rate changes every month. The NPS calculator makes the tricky task of figuring out the retirement corpus easier. It also makes other facts about NPS retirement funds easier to understand. The PPF calculator lets users figure out how much interest they will earn. They might get back a certain amount of the money they put in. The NPS calculator is a tool that is run by a computer. It helps investors figure out what their NPS returns will be. Depending on different scenarios and estimates of how much the NPS contributions will add to the fund, The tax savings are shown on the NPS Calculator. NPS participants would get under Section 80C. The PPF calculator will save money on your taxes. The PPF calculator determines how much will be invested over a fiscal year. The NPS calculator helps with overall financial management by estimating your retirement income. After that, investors can focus on their other financial goals. Is NPS A Better Investment Than PPF? From what’s been said, it’s clear that both of these ways to invest have their pros and cons. PPF gives a fixed income a fixed return. But equity pension plans under NPS might give better long-term returns. So, investments in the PPF are less risky than investments in the NPS, which depend on the market. Also, if you have a high tax rate, joining NPS will help you build a retirement fund that will save you money on taxes. Let’s say you have less than fifteen years until you can retire. You might not want to use your PPF. But NPS could help you set up a retirement fund that keeps your money safe. Because of this, there is no clear answer to the first question. You can choose any of the above products, depending on the type of investment and what you want to do with it. Rate Of Interest & Returns on NPS & PPF Here is a table that summarizes what was said about NPS vs. PPF. The table below shows many other factors affecting the NPS and PPF interest rates. FeaturesPPFNPSRates of interest7.1% in Q2 Financial years 2020-2112% to 14%ReturnsDecided by the governmentMarket-linked interest ratesWithdrawal in partFrom the seventh year forward, it is permitted. After creating an account, you can also obtain a loan during the third and sixth fiscal yearsAfter 10 years, people can choose to get all or part of their money early. If a member wants to quit before they retire. He must use 80% of his money to buy insurancesInvestment strategyFixed under government requirementsWhen engaging in NPS, one can pick between equities funds or govt. securities funds, & fixed-income instrumentsAnnuityThere is no compulsion to purchase annuitiesIf the NPS balance exceeds 2 lakhs, an annuity must be purchased with a 40% of the NPS amount after retirement. [B-02] Conclusion If you want to put more money into your retirement fund, you can do so through PPF and NPS. Contributions to the PPF can be used as a portfolio’s fixed income source. NPS investments, on the other hand, can lead to market-linked profits. Anyone with a smartphone or desktop computer that can connect to the internet can use the online NPS calculator. Suppose you put in the right amount for the deposit and the type of investment. The PPF calculator returns accurate results. So, now that you know everything there is to know about NPS and PPF calculators, you can start using them. You can now apply for either or both of these financial tools. In that case, check out the services and products on the website of a financial expert like Piramal Finance. Learn about easy business and personal loan solutions with them.
08-11-2023
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Bonds

How safe is investment in gold bond?

The current economic situation is precarious. Thus, for wealth creation, an asset with minimal risks and the greatest benefits is ideal. Gold is a tangible, inflation-resistant, flexible asset with excellent liquidity. Thus, it is an ideal investment option for almost everyone, especially ‘newbies.’ But gold is also volatile. It is a physical asset that you must store in a locker. Also, do you know that investing in gold coins might not fetch you favourable returns like the SGB? How? Let us find out! It’s a good thought if you want to invest in gold. But concerns about the storage of physical gold are genuine. Hence, in today’s hustle culture, Sovereign Gold Bonds (SGB) are your best friend. Sovereign Gold Bonds are Government Securities bonds that the RBI can issue in India. These gold bonds help you capture changes in an asset’s price (here, gold). Likewise, you also get a fixed interest income like what you get from your fixed deposits in a bank. Do you want to know the possibilities a gold bond holds for you? If yes, then read ahead! [B-01] What is a Sovereign Gold Bond? Simply put, a Sovereign Gold Bond is a government security (G-Sec) issued by the Reserve Bank of India. You get a fixed income due to the gold interest. It’s generated twice a year. In addition, you also receive the redemption of cash units on the maturity of the gold bond. A Sovereign Gold Bond has gold as its denominator. So, you can invest in multiples of 1 gram of gold. Thus, the smallest investment in a gold bond is 1 gram. According to RBI, each investor can only buy SGbs of 4kgs per Financial Year. In other words, the premise of a gold bond is that the RBI issues you units of gold in grams. You then receive an assured return for the units of gold you paid for. SGBs are allocated via banks, brokers, post offices, and online platforms. Yet, they are available for buy only at specific times of the year, usually from October to March. The interest for gold bonds is around 2.50% per annum. You can pay. Furthermore, the tenure of an SGB is eight years. You can also exit from the interest payment dates in the fifth, 6th, and 7th years. The Indian government launched the Sovereign Gold Bond Scheme under the Gold Monetization Scheme. The scheme is an alternative to purchasing physical gold. The SGB scheme is less risky, convenient, and held in a Demat format. Sovereign Gold Bonds provide more benefits vis-à-vis physical gold or Gold ETFs, such as – A semi-annual extra interest rate of 2.5% No making charges when compared to gold coins and jewellery Less or zero maintenance cost Great safety It’s perfect for people wanting minimal risks and maximum returns. Now that we know the basics of the SGB let us see if it is the proper investment bond for you. Is a Sovereign Gold Bond the right investment option for you? Many market expert believes that in today’s Indian Market scenario, investing in Sovereign Gold Bonds is optimal. SGBs are a pretty profitable investment scheme. They are perfect for many people as they have many advantages and fewer restrictions. If you have a low-risk appetite and want to focus on the safety of your investment, but are looking for a large return, then an SGB might be your best bet. Investors looking to diversify their investment portfolio can opt for gold bonds. Individuals who want to buy gold for investment purposes, not preservation value, should consider Sovereign Gold Bonds instead of physical gold. People looking to earn a regular passive income from their investment should purchase gold bonds. After discussing the many aspects of an SGB, let us answer the looming question about the safety of gold bonds. How safe is it to invest in a Gold Bond? Gold investment bonds are one of the safest investment options in the current market. Priced at INR 5198/gm at the time of writing, gold bonds have increased in value by 99%. Moreover, as the government issues a gold bond, its credit risk is zero. However, there is an inherent risk of loss if the market price of gold falls below its cost price. But, it is not an SGB-specific risk. It is a risk applicable to any form of investment. The best part is that the Reserve Bank of India assures that you will never lose the quantity of gold that was allotted to you as an investor. You can get returns from gold bonds in two ways – 1. Capital appreciation, as the bond price and gold price are linked 2. As regular interest income Furthermore, gold bonds have a ready market. You can trade them at the prevailing prices without any hassle. There is no transaction cost to exit from the scheme. Moreover, you receive cost savings in other ways, such as the absence of storage expenditure, insurance for loss or theft, etc. Additionally, the Sovereign Gold Scheme offers an exemption from capital gains tax during maturity. So, it becomes way more profitable to investors. Lastly, you can use Sovereign Gold Bonds as collateral for loans from banks, financial institutions, and more. [B-02] Wrapping It Up! In a nutshell, the risks associated with Sovereign Gold Bonds are minimal. But, like any other asset in the market, no investment promises a risk-free return. Hence, you should check your investment preferences and the scheme details before opting for a gold investment bond. Lastly, if you want to know more about SGBs and other investment instruments, visit the Piramal Finance website. It will help you know their products and services, especially credit cards and personal loans.
08-11-2023
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