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General Insurance

Know How Term Insurance Works in India

Financial planning is essential in today’s world. It keeps you ready for any financial emergencies. For instance, death is out of anyone’s control. But it’s one’s responsibility to keep finances properly. Such future decisions help your loved ones to live a stress-free life. One of them is term insurance! How does it work? In this article, we will discuss term insurance policies and benefits. [B-01] What is term insurance? Term Insurance is a type of life insurance or an agreement between two parties. These parties are the insurance company and the insured person. It states that in case of the sudden demise of the insured person, the insurance company must pay the policyholder’s family a specific decided-upon sum. It secures the family’s financial situation in their absence. The policy is for a short period or term. If the insured survives the period, the insured will not receive any benefits. However, you can always renew the Term Life Insurance plan to increase the tenancy of the policy. What are the eligibility criteria for term insurance? Most Term Life Insurance policies have minimum eligibility requirements. People between the ages of 18 and 65 can avail of the plans. However, some plans accommodate people reaching age 85 too. The term of the policy can vary from 5 years to 50 years. The sum assured can range from INR 20 lakhs to INR 1 crore. It can also go higher depending on financial requirements. Different types of Term Insurance Plans There are various Term Insurance Plans. It helps a lot when you know about them to choose a plan according to your needs. Level term plans These are the most basic term plans. The insurance sum is pre-determined, and the insured person’s nominee will only receive the benefits in the event of the insured person’s demise. TROP (Return of Premium) plansThese are plans with a maturity benefit. If the policyholder survives the term or the insurance plan period, they will receive the total paid premium back. Decreasing term plans In this plan, the sum assured will decrease each year with the decreasing needs of the insured person. It is most suitable for people who already have the responsibility of repaying large loans. Increasing term plansThe insured person can increase the sum assured annually while the premium remains at the same value. It is for people whose financial needs are slightly higher than average, and the premiums are also relatively higher than level-term plans. Convertible term plans If you are unsure about your financial targets, this plan is for you. With a convertible term plan, you can convert one type of term insurance into another in the future. How to choose the best suitable Term Insurance Plan? It is important to differentiate Term Insurance Plans before deciding on a policy. Here are some things to consider: Your insurer should have a solvency ratio of 1.5. A solvency ratio is the insurance settlement ratio of the insurer and indicates the success rate of the insurance company in settling insurance plans. IRDAI has also made it mandatory for insurance companies to maintain 1.5 as their solvency ratio. Why should you consider buying a term insurance policy? Low-Term Insurance Premium A term plan has lower premiums than other insurance plans. You will get the highest death benefit or life cover at the lowest prices. Cover for critical illnesses When we are young, we might not realise the problems and responsibilities our future may hold. We believe that we might never suffer from critical illnesses such as cancer or kidney failure. One reason why we do not give importance to being prepared is. Although a Term Insurance Plan includes only a death benefit, you can always add a rider to increase coverage. With a rider, the insured will receive a lump sum if diagnosed with a critical illness. This secures them from any financial setback while gathering funds for the treatment. Cover for disability and death Accidents are sudden and do not come with a warning. Depending on how serious the accident is, you might need a significant amount of money saved to cover the medical expenses and compensate for the loss of income. Investing in term insurance will help you deal with such situations. Tax benefits Under section 80C of the income tax act, 1961, you can avail of tax benefits up to Rs 1.5lakh on your Term Insurance Premiums. Moreover, under section 80D of the income tax act 1961, you can claim additional tax benefits for critical illness coverage. Who should purchase term insurance? People in their 20s When you are young, you are also carefree about the problems your future may hold. However, it is suggested to start early for a stress-free future. Moreover, Term Insurance Premiums are cheaper for people in their 20s since they are less likely to expire. Newly married people If you are newly married, you might want to secure the financial future for your spouse or the children you may decide to have. A Term Insurance Plan will protect your family’s financial future against unforeseen events. People approaching retirement A Term Insurance Plan should be a part of your retirement plan. When you are approaching retirement, you will likely have everything else taken care of. Debts paid, children, settled, although to enjoy the fruits of your lifelong labour. You need to prepare your family against any untoward incident. Avail of a term plan and top it up with additional riders to fortify your retirement plan. [B-02] Final thoughts After reading this article, you might have gained more insights into how term insurance policy works in India and why it is important to get your future insured now. It is best to start planning your policy to have a stress-free future and provide financial security to your family. For more inquiries, you can consult a financial expert like Piramal Finance. We will suggest what’s financially best for you and help take care of your personal loan and insurance policy requirements if any.

08-11-2023

Cards

Signs of wrong Credit card usage

Have you ever received calls about credit card needs? The representatives even offer attractive discounts. The whole cashless concept sounds easy and convenient. You don’t need to carry multiple bundles of cash. Yet, you have access to funds all the time. There is no stress of thefts or robberies also. A credit card indeed has many benefits. So much so that credit card usage jumped 48% in March 2022; however, you must also understand a credit card's disadvantages. Missing the bill payment date will result in a penalty. It will also lower your credit score. Hence, you need to be careful while using it. Sometimes, you may not even realize you are using it wrong. However, it may land you in trouble. This article will help you to avoid these situations. Incorrect Credit Card Usage Credit cards have many uses. But if you are not careful, these pros may turn into cons. Here are some examples of credit card usage that are not good for you. You only pay the minimum due amount. Your credit card statement shows your credit card usage, total bill, and minimum due amount. You must pay the minimum due amount to avoid late charges. The minimum amount is usually 5% of your total amount. You can pay this amount rather than the total bill. But, the problem occurs when you only pay for that amount every month. This way, your debt will never end. You will keep paying it off for years. Also, the non-repayment balance will attract interest. You have a high credit utilization ratio. When you apply for a credit card, you get a credit limit on the card. It depends on your income and repayment capacity. A credit limit determines how much total credit you have and can use. The credit utilization ratio shows how much credit you’ve utilized. It reflects your credit card usage. A low credit use ratio shows lenders you are not hungry for credit. Usually, lenders prefer the credit use limit to be less than 30%. A low percentage also reflects better on your credit score. A credit score represents a borrower’s worthiness. It is a primary factor lenders check before approving a loan. You don’t check your billing statements. You may not be using a credit card regularly. Hence, you may neglect to check your credit bill statements. It is a warning sign. Offline and online credit card errors and frauds are common. But, if you never check the bills, you will never know. Your actual credit card usage may be much lower than it shows. It may also hamper your credit score. A monthly review can help you take timely action for such errors. You withdraw cash with a credit card. As per credit card terms and conditions, there is a cash withdrawal limit. In some cards, you can’t withdraw cash for a minimum of 180 days. Failing to do so attracts a cash advance fee and finance charges. The finance charges can go as high as 50%. Withdrawal fees can be as high as 3.5%. Hence, it is not a good option for your financial health. It is a sign to keep your expenses in check. You may be spending more than you should. You forgot to check the expiration date of reward points. When you opt for a credit card, the banks offer attractive offers like discounts, reward points and cashback. You may also get some free miles or access to airport lounges. All this helps the banks to secure their customer’s loyalty. It is a common habit to accumulate points. What you forget is that these reward points come with an expiry date. Usually, it is two years. If you don’t redeem it within that time, they are lost. The reward points don’t carry forward. You can always contact the card issuer if you have doubts about the expiry date. You are using one credit card to pay off another card A credit card helps us to pay off our bills and expenses. But, it is a debt that you need to pay. Taking on another card to pay off first card bills is a big no-no. You are only collecting debts and hampering your financial health. Even maxing out your current card is not good. Also, too many debts negatively affect your credit score. Even enquiring about cards can lower the score. Your credit card purchase is not approved Sometimes, we may enter the wrong PIN or have bad connectivity, which may lead to a decline in transactions. These situations are normal. But if the transaction is rejected due to lack of funds or bill non-payment, then it is a warning sign. You must then cut back on your spending. Also, analyse your monthly budget. You are unaware of credit card charges When companies issue you credit cards, they only focus on the good points. Not the fees they charge. Also, most of us forget to read the terms and conditions. Here is where you can land in trouble. Companies charge you annual fees for owning a credit card. You also must know the interest charges, foreign transaction fees, cash advance fees, and over-the-limit charges. A small fee will not hurt. But, if these accumulate, it will be a problem. Some Suggestions to Avoid Incorrect Credit Card Usage Now, you are aware of examples of incorrect card usage. Let us give you some tips on how to avoid these situations. Plan your monthly finances Read the credit card terms and conditions Don’t apply for multiple cards Know your credit card limits. Avoid cash advances on your credit cards Check your card statements periodically Try to pay off the whole credit card amount Practice saving and be disciplined in your finances [B-02] In a Nutshell After reading the above points, you understand how to use your credit cards properly. Credit card usage can increase or lower your credit score. Even if you may not need a loan, a low score will hamper your borrower chances in the future. Hence, you need to maintain a minimum CIBIL score. Experts at Piramal Finance can help you know your CIBIL score. They can also suggest tips and tricks on improving your CIBIL score if you score low.

08-11-2023

Dream Mobile

Get Ready for the Latest Xiaomi Mobile Phones In India

Xiaomi is at the forefront of the latest mobile technology, and its popularity in India shows no signs of waning anytime soon. If you’re looking to buy your next smartphone from a reputable brand that offers affordable technology, then Xiaomi Mobile might be the perfect fit for you! Read on to learn more about how Xiaomi mobile phones compare to the competition, the cost of a Redmi mobile phone, and which models are coming up next. [B-01] Xiaomi 12S Ultra Xiaomi’s latest mobile phone, the 12S Ultra, is a great entry-level phone with some high-end features. The 12S Ultra offers a 6.73-inch HD+ display and a 3.2 GHz Qualcomm Snapdragon 8 Plus Gen 1 Octa-core processor, which makes it good for playing games or using different apps. It has 8 GB of RAM and 256 GB of internal storage. It has one of the best batteries on the market at 4860 mAh and can last up to 3 days without charging. You can find Xiaomi mobile phones in many different colors, including navy blue and rose gold. The expected Redmi mobile price would be around INR 70,000. Xiaomi 12T Pro 5G Xiaomi has been quite busy lately, releasing two new phones a day apart from each other. The first one to be released was the Xiaomi 12T Pro 5G, which is currently available in China. This phone has a huge 6.67-inch AMOLED display with a resolution of Full HD+ 1080p and a 20:9 aspect ratio. It also features a Qualcomm Snapdragon 730 octa-core processor, 8GB of RAM, and 128GB of internal storage that can be expanded up to 256GB via SD card. The rear-facing camera module includes a 108 MP main camera with an f/1.75 aperture, an 8 MP ultra-wide camera, and a 5 MP telephoto sensor. The selfie camera on the Redmi new mobile is 16 MP with an aperture of f/2.45. It packs a 4500 mAh battery that supports fast charging as well as wireless charging, it also includes an FM radio receiver and stereo speakers. The Redmi mobile price is INR 60, 490. Xiaomi 12 Lite 5G The Xiaomi 12 Lite 5G is a budget-friendly, affordable Redmi new mobile that has all the features you need. Its sleek design and dual cameras make it feel like an expensive device without costing too much. With specs that are comparable to some of the most popular phones on the market right now, this Xiaomi mobile will have you covered. The 6.55-inch OLED display on the Xiaomi 12 Lite 5G has a Full HD+ resolution. The screen has a 402 PPI pixel density and a 20:9 aspect ratio. The power and volume controls are on the handset’s right side. For added security, the Redmi new mobile has included an in-display fingerprint sensor and face unlock support. This new Xiaomi mobile phone is powered by a Qualcomm Snapdragon 778G processor. The chipset is complemented by 8GB of RAM and 128 GB of storage. Because the device does not support microSD cards, internal storage is limited to 128 GB. The Redmi mobile price is INR 31,690. Xiaomi Redmi K50 Ultra The Xiaomi Redmi K50 Ultra will have a 6.67-inch display with an aspect ratio of 20:9 and a resolution of 1080×2400 pixels. The Redmi new mobile will be powered by an octa-core Qualcomm Snapdragon 660 SoC, coupled with 8GB of RAM. Other specifications revealed by the listing include 128 GB of onboard storage and a 50MP+8MP+20MP triple-camera setup on the rear. It is also confirmed that this phone will run Android 12 out of the box. The Xiaomi Redmi K50 Ultra will have a Redmi mobile price of INR 35,390. Xiaomi Redmi Note 11 SE 5G The Xiaomi Redmi Note 11 SE 5G is a two-SIM Redmi new mobile with a 6.5-inch display, 4GB of RAM, and 128GB of storage. It is powered by a Snapdragon 660 processor and has a 13 MP front camera and a 12 MP rear camera. The Redmi new mobile also features dual SIM card slots, Bluetooth 5.0, Wi-Fi ac, GPS, and more. It comes with a 5000 mAh battery that delivers up to 17 hours of video playback mode on its full HD screen, which offers 10 points of touch sensitivity. The Redmi new mobile is running MIUI 13 on the Android 12 operating system out-of-the-box, and the Redmi mobile price is INR 11,690. Xiaomi Redmi Note 11T Pro Plus The latest Xiaomi mobile phone is going to be released in December. The Redmi Note 11T Pro Plus will have a powerful processor and a design that is slim, light, and attractive. It will come with 8 GB and 128 GB of RAM, so you can store plenty of apps, games, videos, and photos on your device. The Redmi new mobile also has a large screen, making it easy to view everything on your screen or read text messages or emails on-screen. Another great thing about this smartphone is its triple-camera setup, which lets you take clear and high-quality pictures day or night with its AI scene detection mode and EIS video stabilization. With its impressive battery life, this Redmi new mobile is sure to keep you entertained for hours! Its Redmi mobile price is INR 23,290. Xiaomi Mix Fold 2 5G This phone is equipped with an 8.01-inch OLED display and is powered by Qualcomm’s octa-core Snapdragon 888 processor, coupled with 12GB of RAM and 128GB of internal storage. The device packs three rear cameras with phase detection autofocus, a dual-LED (dual tone) flash, and HDR. Its Redmi mobile price is INR 106,290. Why a Xiaomi mobile is the best option for you Xiaomi is one of the most popular smartphone brands in China and other parts of Asia. You’ll get a lot of bang for your buck with a Xiaomi mobile, as many come at an affordable Redmi mobile price. They’re also innovative, so you won’t be bored with your purchase. The company offers smartphones that have all the features you need, but they keep things relatively simple. If you’re looking for something basic but reliable, this brand is perfect for you. [B-02] You don’t get a lot of extra features on these devices, but they make up for that by providing you with all of your basic needs at a great Redmi mobile price. The Redmi new mobile is one example, as it can do everything you need without costing a lot. It’s also durable and has an impressive battery life that lasts through more than 12 hours of talk time. Piramal Finance is one of the best financing options when buying a Xiaomi phone. The company offers a wide range of financial products and schemes to suit customers’ needs. Piramal Finance is a name you can rely on to provide comprehensive, customised financial solutions according to customer needs. Their diverse offerings include home loans, personal loans, car loans, and much more.

08-11-2023

Other

Calculate gratuity online using our gratuity calculator

There is always a difference between the CTC offered and the salary you get in hand. There could be various reasons for this, such as tax deductions in the form of TDS, provident fund, and pension contributions, which are reduced from your salary. One such deduction is gratuity. Well, what is gratuity, and how can we calculate the gratuity portion of our salary? Let’s find out! [B-01] What is Gratuity? The Payment of Gratuity Act of 1972 defines gratuity. Employees are paid gratuity by organizations. This is for the services provided by them to the organization. Gratuity is one of the several parts of an employee’s salary. An employee is entitled to gratuity after providing service for 5 years. How to Calculate Gratuity? There are two categories of employees. This depends on their coverage under the Gratuity Act. The following is the Gratuity Calculator Formula 2021: Category 1: Covered under the Payment of Gratuity Act, 1972 Gratuity = (15/26) * Last drawn salary * Number of service years with the organization Here, 26 stands for the number of working days in each month. Gratuity is calculated for 15 days’ wages. The last drawn salary covers basic, dearness allowance, and commission on sales. For example, Mr A served for eight years. His last drawn salary and dearness allowance are ₹ 50,000. Gratuity calculator India will work as the following: (15/26) 50000 * 8 = ₹4,00,000 Category 2: Not Covered under Payment of Gratuity Act, 1972 Gratuity = (15/30) * Last drawn salary * Number of service years with the organization Here, 30 indicates the number of working days in each month. Gratuity calculation is done for 15 days’ wages. The last drawn salary covers basic, dearness allowance, and commission on sales. For example, Mr B served for ten years. His last drawn salary and dearness allowances are ₹ 50,000. Gratuity calculator India will work as the following: (15/30) 50000 * 10 = 250000 Online Gratuity Calculator As you can see, gratuity is not that easy to calculate. So, how can you easily calculate gratuity in your salary? Just use an online gratuity calculator! Several online gratuity calculators are available to calculate. You only need to enter the relevant details. The calculator will calculate the amount you must receive. It will be based on the inputs you provide. You must provide the following details to calculate the gratuity: Monthly Salary (Basic + DA): Last salary that you received from your company. It includes the Basic Salary and Dearness Allowance. Years of Employment: Number of years you have been employed at the company The gratuity calculator online will calculate your gratuity amount based on these inputs. It will then display the final gratuity amount you are eligible to receive. Benefits of Gratuity Calculator Online The following are the benefits of the gratuity calculator online: It makes the calculation of gratuity simple and easy. It eliminates errors in calculating gratuity. It allows employees to decide whether to opt for gratuity or not. It allows quick and fast calculation of gratuity. It is a web-based calculator. So anyone can access a gratuity calculator anytime, anywhere. Eligibility Criteria for Gratuity To receive a gratuity, you need to fulfil the following eligibility criteria: You must have provided 5 years of service to your employer. The employee should either retire from the company or leave the services to receive a gratuity. In case of the death of the employee, his legal heirs can receive the gratuity amount. Employees can receive gratuity if they become disabled due to a disease or accident. Organizations Required to Pay Gratuity Is every company or organization liable to pay gratuity? No. Organizations that meet the eligibility criteria must pay gratuity to their employees. An organization must pay gratuity to its employees if it employs 10 or more employees. How is Gratuity Taxed? Gratuity is treated as income under the Income Tax Act 1961. It goes under the head “Income From Salaries”. The income tax law has provided an exemption for the gratuity received by the employees. So, is gratuity fully exempt from tax? The answer is yes, but it is exempt only for government employees. Non-government employees are partially exempted from gratuity. They can claim exemption from gratuity subject to the following conditions: If the employee is covered under the gratuity, the least of the following amount shall be exempt: Gratuity up to Rs. 20 lakh Last drawn basic salary x Number of years of service x 15/26 The actual gratuity amount received The method to calculate exemption varies. It changes if the employee is not covered under the gratuity act. In such cases, the least of the following amount shall be exempt: Gratuity up to Rs. 20 lakh 15/30 x average salary x number of completed years of service The actual gratuity amount received [B-02] In a nutshell Although paying gratuity is a beneficial practice for employees, its calculation is a bit tricky. While you can manually calculate gratuity, you will likely make mistakes. So, it is better to use a gratuity calculator online. It ensures that you know the correct amount of gratuity you are entitled to. It reduces the burden of calculating gratuity manually. It also provides you with a quick calculation. Further, you must keep a check on your taxes. This ensures you do not pay high taxes on your gratuity income. You can visit the Piramal Finance website to learn more about gratuity.

08-11-2023

Home

What you need to know about center tables

What is a center Table? As the name suggests, a center table is a piece of furniture placed in the center of the room. The table can stand alone or be surrounded by a sofa and other seating furniture. An elegant table amplifies the aesthetic of your drawing room. It is a key element in making your living space picture-perfect. Your central table becomes a focal point of attention for the viewer. As a result, a beautiful table can express your unique style and preferences in front of your guests. A table can have both decorative and practical uses. Use it as you like. Decorate your table with your favourite flower arrangements and works of art. Or use it to place your beverage and the book you are currently reading. There are many different types of tables available on the market today. So, which one should you choose? Read on to find out what things you should keep in mind before purchasing the center table for the living room. [B-01] How to choose a center table? Purchasing a center table can feel like a daunting task. With so many tables to choose from, it is easy to get lost in the sea of available options. As a result, it is crucial to do your homework beforehand. It is important to choose a center table that complements your living space. It should be appropriately sized and blend seamlessly with your other furniture. Remember the following things the next time you’re purchasing a table: Shape and size of the table Your center table should have the correct dimensions as per your room. The size of your room and your existing furniture will dictate the size of your table. So the first step is to measure your room. This will give you an idea of how much space there is in your house. Then, determine the exact dimensions of the table that will be appropriate for the room. The height of your table should be approximately the same as your sofa and chairs. These steps will prevent you from purchasing one that is too small or too big for your room. Always make sure that there is enough open space to walk around between your furniture. Choose the shape that you like. You can either coordinate it with the other furniture or pick a contrasting shape, such as an oval or circular table. If you have kids at home, their safety comes first. Choose a table that is sturdy and has no sharp edges. The table’s material From wood to glass or even marble and leather, a table can be made from various materials. Look around the house and figure out your decor theme. The material of your tabletop should be in sync with your other furniture. A glass tabletop can give your home a light and spacious feel. A wooden table will make your decor look contemporary. A granite or marble table top can make your home feel luxurious. You can also get a table that is custom-made with the material of your choice. Whatever material you choose, learn about its pros and cons. Some materials are more delicate than others. If you need a table for daily use, choose a material that is easy to clean. Wood and marble are easier to clean than a leather table top. Take care of your table regularly. Avoid getting any stains or scratches on it. This will ensure that your center table shines for years to come. Functionality What do you want to use your center table for? Maybe you just want a table for decorative purposes. Something to hold your flowers and artwork Or maybe you want a table for everyday use. Determine the use of the table before you purchase one. If storage is your purpose, you may prefer a table with built-in drawers. This will give you more space to store your magazines and other everyday items. If your table is purely for decorative purposes, choose the one that takes your fancy. Your budget Whatever your budget, there is a center table for you. You can find several budget-friendly, casual coffee tables. If you have no budget restrictions, you can opt for luxurious, custom-made tables. Determine your price point. This will help you narrow down the material of your table. Materials like wood and glass are generally cheaper than marble. So, have a clear budget in your head before you go shopping. This will make it easier for you to select your table. Compare the prices of your table on different online platforms and stores. You can find the most cost-effective option once you compare all the available prices. [B-02] A Concluding Note Your center table is one of the most important pieces of furniture in your home. This is where you can keep your cherished artwork. This is where you can serve coffee and warm cookies to your friends. So make sure that you spend some time searching for the right table. You can also get a customised table that fits your needs perfectly. Browse the furniture websites to get an idea of what you might like. You can also visit the furniture stores in person. The store professionals can suggest good options as per your requirements. Perhaps you need some help financing your new furniture this festive season. If this is the case, Piramal Finance is here for you. Visit the website to find personal loans and financing options best suited for you. Happy shopping!

08-11-2023

Mutual Funds

How to Calculate Returns on Mutual Funds with a Mutual Fund Calculator

Investing in mutual funds comes with lots of rewards. But a mutual fund calculator helps you calculate overall returns. It helps you decide on investments. You know the types of mutual funds to look for. This MF return calculator also tells you the capital gains tax you must pay. This lets you check your total investment return. It takes into account many unique factors. Now, start using a mutual fund return calculator. First, enter previous purchase prices. You even need to mention the purchase dates for each asset. [B-01] What are mutual funds? These are pools of money invested in stocks and other assets. It helps with portfolio diversification. It helps investors worry less. Mutual fund investors buy units of funds called shares. The units (shares) represent partial ownership. This is for all investments held by that fund. Use a mutual fund calculator to calculate the total ROI. Using a mutual fund calculator is important. It examines the costs related to an investment before deciding on it. This cost directly affects performance. Your mutual fund might have an expense ratio of 0.5% or more of the total value of the asset per year. The MF return calculator helps you decide that. It also generates capital gains and interest income. But, you need to reinvest those earnings into the fund for distribution. So, it lowers long-term growth potential. How to calculate mutual fund returns? These are low-risk investments. It contains several stocks, bonds, and other securities. Mutual fund return calculators help you know the total earnings and gains from your investments. First, find a good mutual fund calculator. There are many online mutual fund SIP calculators. Ensure they are credible and accurate. You don’t want the wrong information while investing. Second, put all relevant information into the MF calculator. This includes the initial deposit, the annual return rate, etc. Third, enter any changes to these variables that occur over time. Click calculate. You can view the total mutual fund return instantly. This gives you the correct information. Now, make sound decisions about mutual funds. Calculate mutual fund returns using a mathematical equation. Mutual fund SIP calculators use an equation to calculate your overall return. These are often advertised as having high returns and low volatility. This appeals to many. But you need to study other investment options. Check for offers with similar benefits but lower risk. Do this on your own without a calculator. The point-to-point return is calculated by dividing the ending value of an asset by its beginning value. Then, multiply this number by 100%. For example: if someone invested $1,000 in an MF with a 5% annual return over 2 years, they would have $1,500 after 2 years (1,000 x 150%). If they sold their shares back at the end of year 2, their total profit would be $500 (($1,500 – $1,000) x 100%), or 50%. Online MF Calculator: Calculate mutual fund returns A mutual fund SIP calculator calculates total mutual fund returns. It helps you determine if you want to keep investing in that fund. You can use an MF calculator or investment calculator to understand your finance timeline better. Enter your initial amount, rate of return, and years invested into the four fields of the MF calculator. Plug in numbers for two different rates of return into the MF calculator. It helps you see what would happen if your rates of return change over time. These are always just estimations. A mutual fund return calculator cannot guarantee future performance. Benefits of using a mutual fund calculator for calculating returns Mutual fund calculators can be used by investors who want to determine how much they have earned or lost over time. Mutual fund SIP calculators are typically free and can be found online or at your favourite brokerage firm. A MF calculator provides an easy way for investors to track their performance, compare funds, and figure out how much money they need for retirement. The most important thing to remember when using these mutual fund return calculators is that they are based on past performance, which doesn’t guarantee future results. Investors should only use a MF calculator as one factor in making investment decisions. Once you enter your data into a MF calculator, it will show you the annualised percentage return (APR), total return (TR), and net return (NR). Your APR tells you what percentage of your invested money was paid back each year in interest, dividends, or capital gains. Your TR shows you how much of your original investment has been returned. Your NR reveals how close you are to breaking even if you sold all your investments today. Thus, you can use a mutual fund return calculator to make wise investing decisions. [B-02] Mutual Fund Calculators: A Helping Hand in Investment Mutual fund SIP calculators are a quick and easy way to estimate your return if you invest in a mutual fund. A MF calculator considers the amount being invested and then determines how much money will be accumulated at the end of time. We encourage readers to use a mutual fund return calculator to make informed investment decisions. You may want to look for a particular goal when investing or just see how different strategies might affect the potential outcomes of your investment. The MF calculator should help you find a good place for your money!

08-11-2023

Other

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

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

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