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Tax

What Is The Tax Rate On Gold Investments In 2022

Gold investment has sentimental value for all of us. You always bought gold jewellery and coins on festival occasions. Your wife also received some gold as Stree dhan at the time of your wedding. Traditionally, you invest in gold in the form of jewellery or gold coins. Nowadays, you can invest in gold in different forms. Apart from physical gold, digital gold, sovereign gold bonds and gold mutual funds, gold ETFs etc., are also available. Youngsters today prefer to invest in these other forms of gold rather than physical gold. For most people, gold investment is a safe option with stable returns. Returns of other assets like equity and bonds may fluctuate a lot. Gold investments are subject to a gold tax rate. [B-01] What Are the Types of Gold Investments? You may invest in different kinds of gold investments. These include:- 1. Physical Gold like Jewellery and Gold Coins You gain returns on this type of investment through capital appreciation in the market price of gold. 2. Digital Gold You may invest in this type of gold through online e-wallets like Paytm, Google Pay, etc. You invest in 24-karat pure gold online. The gold is held in secure bank-grade vaults. You buy pure gold at market rates. You can make investments as low as Re 1. You can redeem at maturity either in cash or in pure gold. You pay a one-time levy of 3% GST. You can sell at any time after 72 hours. You earn returns through capital appreciation. 3. Sovereign Gold Bonds (SGBs) These are gold bonds issued by the government. These bonds pay an interest of 2.5% p.a. Your investment in sovereign gold bonds matures after 8 years. You may redeem these bonds at maturity. You will realise the market value of gold. You do not have to pay making charges for this type of investment. 4. Gold Mutual Funds These are mutual funds investing purely in gold. You invest and redeem at the Net Asset Value (NAV). The NAV is calculated based on the market price of gold. You need to open a Demat account to trade in gold mutual funds. 5. Gold Exchange Traded Funds (ETFs) You can trade in Gold ETFs through a Demat account that you open, online or offline. The NAVs of the ETFs depend on the market value of the underlying gold investments. You can trade these investments like equity shares. What Are the Different Gold Tax Rates? The tax on gold that you pay depends on the nature of your investment. The taxation method differs depending on the underlying gold investment. The different gold tax rates are as follows:- 1. Tax on physical gold When you sell physical gold, you pay short-term capital gains or long-term capital gains tax. If you hold physical gold for less than 36 months, you pay short-term capital gains tax. This gold tax rate is calculated according to your income tax slabs. In case you hold physical gold for more than 3 years you pay long-term capital gains tax. The long-term tax rate on gold is 20% tax of your return + surcharge at the rate which applies to you + cess at 4%. Before this gold tax rate is calculated, indexation of the gold price from your purchase date is done. Indexation calculates the effect of changes in the Consumer Price Index between your sale date and purchase date. The appreciation/depreciation in the CPI Index is used to adjust your purchase cost. This becomes your effective cost of the purchase to calculate the net return percentage after tax on gold. At the time of your purchase of physical gold, GST is added to the purchase price. 2. Digital Gold In the case of your investment in digital gold, the gold tax rate applied to your return depends on your holding period. Suppose you held the investment for less than 36 months. In this case, your returns will be taxed at your applicable slab rate. If you held the investment for longer than 36 months, your tax on the gold rate is 20.8% (tax rate of 20% + cess at 4%). Indexation will be applied to your cost of investment. Your return will be calculated after adjusting the effect of any changes in the CPI Index. The tax on gold investments rate is 20.8%. 3. Tax on gold held in mutual funds and Gold ETFs The taxation policy on both these investments is similar to the taxes you pay on your physical gold holdings. When you hold for less than 3 years, you will be taxed at your applicable slab rate. When you hold for a longer period beyond 36 months, you pay taxes on your gold investments at 20% + surcharge + 4% cess on your returns. You pay fund management charges which vary between 0.5% to 1% p.a. of your gold investments at 20% 4. Tax on Gold held in the form of SGBs If you redeem your investment in SGBs before 8 years but after 5 years of holding them, you pay long-term capital gains tax according to the following formula: 20% +4 % Cess. You also get an indexation benefit. There is no tax on gold investments in SGBs after 8 years. The interest you earn on SGBs is taxable under the head ‘income from other sources’. You are taxed on the interest income at your applicable income-tax slab rate. Return Calculation With Indexation Example Let us say that you purchased gold in 2013. The CPI Index level was 104.6. You sold your gold investment in 2019. The CPI Index in 2019 was 141.1. The purchase value of your gold investment in 2013 was Rs 50,000. The growth in the CPI Index is 34.89% during this period. Your adjusted cost after indexation is calculated a: 50000X (1.3498) = Rs 67447.42. You sold your gold investment in 2019 at Rs 75,000. The tax calculation will be as follows:- ParticularsAmountCost of gold purchase in 2013 (1)Rs 50,000Sale value of the gold investment in 2019 (2)Rs 75,000The effective cost of gold after indexation (3)Rs 67,447.42Net return applicable to tax after indexation 4 (2-3)Rs 7,552.58Long-term capital gains tax payable (4)X 20.8%Rs 1,570.94 [B-02] In conclusion Gold is a precious metal and highly valuable. Gold prices appreciate over time. You gain considerable benefits by investing in gold. You should understand all the tax implications on different forms of gold investment. If you liked this blog, visit Piramal Finance to learn more about different forms of investment.
08-11-2023
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Other

The complete process to generate a new ATM PIN

Most people use an automated teller machine (ATM) to get cash from their bank account or to deposit cash or checks. A few people use an ATM to get information about their accounts, such as their balance, or to transfer money between accounts. But whether you use an ATM for cash or information, you must use a personal identification number (PIN). This number is secret, like a password, and should be known only to you. In this article, we will guide you through the complete process of how an ATM pin is generated. [B-01] Why do we need an ATM PIN? An ATM PIN is a four-digit code that is used to access your bank account at an ATM. The PIN is unique to you and is used as a security measure to ensure that only you have access to your account. You may be wondering why you need an ATM PIN. There are several reasons why you need an ATM PIN. Firstly, it ensures that only you can access your account and withdraw money from it. Secondly, the PIN is a security measure. that protects your account from being accessed by anyone else. If you do not have an ATM PIN, then you will not be able to access your account at an ATM. Therefore, it is important to ensure that you have a PIN before you try to use an ATM. Most people use an automated teller machine (ATM) to get cash when they need it. You need a personal identification number (PIN) to use an ATM. Your PIN is your electronic key to your bank account. It lets you get cash, check your balance, and make other transactions at ATMs. You should never give your PIN to anyone else, not even bank employees. If someone else knows your PIN, they could use your card to get cash from your account without your permission. What are the benefits of having an ATM PIN? Having an ATM PIN is a great way to protect your personal information. It’s important to keep your card and PIN safe, as they’re the only things that can be used for a transaction. So, if you lose your card or it gets stolen, all you need is the number on the back of your card to get money from an ATM. But if someone steals your PIN, they’ll be able to access all your financial accounts without any additional information. That can put you at risk for identity theft. With an ATM PIN, you’ll be able to make transactions without worrying about who has your card or what they may do with it. How does a new PIN generation take place? The PIN Generation should be done by card owners only. A new ATM PIN must be generated in a secure place. Here are a few steps on how a new ATM PIN generates: Put the ATM card in, then sign in with the temporary PIN the bank offers. You can choose “Change PIN” or “Generate New ATM PIN.” Banks will issue an OTP (one-time password) to the registered mobile number to verify. You may need to submit information from time to time. Such as a bank account number or a registered cell phone number. You can create the 4-digit PIN once the request has been verified. And you might be required to confirm it by entering the new ATM card PIN a second time. And now, your ATM PIN generates, and you can use it to conduct transactions starting now. FAQs How frequently should my PIN be changed? At least once a year, or every three to six months, you should change your ATM PIN. You might receive an OTP on your registered cell phone number each time. You change your PIN as confirmation. For security purposes, it shouldn’t be changed regularly, only occasionally. Can I use the same ATM PIN that the bank has provided? Yes, you can use the same ATM PIN that the bank has issued for ATM transactions. However, a new ATM PIN is recommended that is unique to you. Nobody knows the PIN code, not even the bank. Even if banks’ PINs are secure and private, you still need to create a new PIN. They suggest that PIN generation should be done by cardholders only. Is it possible to use my ATM card without entering a PIN? Without entering the PIN, you cannot use the ATM card. Is it possible to generate or update my ATM card PIN without going to the bank? You don’t need to go to the bank branch to generate an ATM PIN because you can do it by SMS, net banking, calling customer service, or physically visiting an ATM. What happens if I don’t get the OTP? Due to a poor network, you might not receive the OTP; in such cases, you can try again later. Ensure that incoming messages are permitted on your mobile. [B-02] Conclusion An ATM PIN is a four-digit code that is used to access your bank account at an ATM. The PIN is a security measure that ensures only you can access your account. It lets you get cash, check your balance, and make other transactions at ATMs. It’s important to keep your ATM card and PIN safe. If someone steals your PIN, they’ll be able to access all of your financial accounts without any additional information. At least once a year, or every three to six months, you should change your ATM PIN to increase security. It shouldn’t be changed regularly, only occasionally. The PIN generation should be done by cardholders only. Read more related blogs on the Piramal Finance website to explore our financial products and services. If you need to know more about personal loans, credit cards, and financial calculators, visit us now!
08-11-2023
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Top 5 Best Tax Saving Options in 2023

One way to achieve financial security is to look for extraordinary gains. But not everyone can endure the risk factors that it poses. That’s why a simple and effective plan is needed for personal financial stability. Once you have ensured financial stability, you should take risks, but only according to your appetite and wallet. However, as you retire, you want to build more and more on your financial security if you have enough saved up already. Relevant tax savings are a helpful way to manage your finances. For example, income tax rules tell you when and how much tax to pay. In addition, income tax provisions help reduce your tax burden using tax deductions. [B-01] Hygiene factors that affect tax savings Before investing in the tax savings scheme of your choice, there are some hygiene factors that you must consider. First, evaluate the tax regime best suited to your needs. For example, some tax regimes are lower on taxes but don’t allow you to apply for benefits or exemptions. Others are higher on taxes but will allow you the flexibility to take advantage of the benefits of tax deductions and provisions. Another hygiene factor to consider is filing your taxes on time, or else you become liable for penalties and fines. Top Five Tax Saving Schemes The top 5 tax saving investment options given here not only reduce your tax burden. They also help manage your finances by ensuring you don’t bleed your tax earnings. Tax-saving benefits of health insurance Health insurance comes with three-pronged health insurance benefits for you or the insured. First, it covers not only hospitalisation costs but also pre-and post-hospitalisation charges. Second, it features a no-claim bonus, i.e., if you do not avail of the benefits or do not make a claim in the policy period, your insurance cover sum insured will increase without paying extra. In addition, the (health insurance) investment has a tax-saving aspect. As per Section 80D of the Income Tax Act, when you buy health insurance for yourself, your child or your spouse, you can claim a deduction on premium payments of up to Rs. 25,000. This can also be extended up to Rs. 50,000 for senior citizens, meaning the policyholder can get a deduction of up to Rs. 75,000 from the taxable income. If the age of the proposer and his parents is more than 60 years, the amount can increase up to Rs. 1,00,000 (Rs. 50,000+Rs. 50,000). Tax savings on home loan You can claim tax benefits from home loans from banks, financial institutions, and housing finance institutions. Under section 24(b), if you pay interest on home loans, you can claim a deduction to a limit of Rs. 2 lakhs on the interest paid. However, there is no upper limit if the property is let out. For the principal part of the loan you can claim Section 80C deductions of up to Rs. 1.5 lakhs. This includes stamp duty and registration charges. In case of a jointly borrowed home loan, each joint holder can avail of a deduction of maximum Rs. 2 lakhs on the interest paid. Under 80EEA, you can claim a deduction only if it is Rs. 45 lakhs or below. Also, the loan should have been sanctioned between 1st April 2019 and 31st March 2022. Unit Linked Insurance Plans (ULIP) For individuals who prefer long-time financial planning, this is the ideal choice. It provides tax-deduction benefits of maximum Rs. 1.5 lakh per year under Section 80C of the Income Tax Act. It comes with a lock-in period of five years, and the risk is moderate to very high. Senior Citizen Savings Scheme (SCSS) Launched in 2004, this government-sponsored savings plan is made for people over 60 years of age. Under Section 80C of the Income Tax Act, one can get a tax deduction of up to Rs. 1.5 lakhs. This extremely low-risk scheme comes with a lock-in period of 5 years. Other tax-saving instruments Did you know a tax-saving investment can also help you generate wealth? The government offers deductions up to Rs 1 lakh 50 thousand under Section 80C of the Income Tax Act for investment in specific schemes. The following are some instruments eligible for this tax exemption: National Pension Scheme: As a subscriber or investor in the NPS, you can avail of benefits on a limit of Rs. 150,000 according to Section 80C of the Income Tax Act. An NPS subscriber can claim an additional deduction of up to Rs. 50,0000 in a financial year under Section 80CCD(1B) of the Income Tax Act. Fixed deposits with a tenure of 5 years or more: An individual can get a tax deduction of up to Rs. 10,000 on the interest rate, whereas for senior citizens and HUFs, the deduction is up to Rs. 50,000. Employee’s Provident Fund (EPF) or Public Provident Fund (PPF): Under Section 80C, both EPF and PPF qualify for tax deduction of maximum Rs. 1.5 lakhs per annum. Sukanya Samriddhi Yojana: Investments in Sukanya Samriddhi Yojana or SSY are tax deductible up to Rs. 1.5 lakhs under Section 80C. The annual interest rate is also exempted from the tax under Section 10 of the Income Tax ACT, as are the proceeds received on maturity or withdrawal. Equity Linked Savings Scheme (ELSS): Under Section 80C of the Income Tax ACT, it is possible to claim a deduction of maximum Rs. 1.5 lakhs per annum, saving up to Rs. 46,800 in taxes. [B-02] Wrapping Up Start your tax planning activities at the start of a new financial year. Those lucky to start initially can select suitable tax-saving instruments that fit their personal finance goals. Also, the PPF and ELSS schemes are set up to earn you more interest if you start at the beginning of a year. In case of doubts, consult a financial expert like Piramal Finance for customised loan solutions for business owners and professionals.
08-11-2023
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Mutual Funds

Understanding SIPs and using a SIP calculator

You can understand all about SIPs, the different types and the advantages of SIP, using SIP calculators, etc. [B-01] Steps to Calculate Your SIP Returns With Calculator Systematic Investment Plans, or SIPs, are a way to invest in mutual funds or stock shares. You make regular payments for this type of investment. Over time, your overall investment grows. Depending on your financial savings, SIPs can be made weekly, monthly, or quarterly. The benefit of SIP is that it promotes long-term wealth growth. If you have a sizable amount of funds, you can also invest in lump sums. SIPs have many advantages compared to lump-sum investing. This is explained in the following sections: Types of SIPs Equity SIPs or mutual fund SIPs can be of two types: 1) Regular SIPs: You invest a constant amount periodically over a long period. 2) Step-up SIP: Let’s say you were just promoted to your current position. This may come with a pay raise. You might wish to increase the size of your SIP. You can raise the SIP amount by carrying out a step-up SIP. Using a SIP Calculator You will find many SIP calculators online on different broker sites. A mutual fund SIP calculator can be used in the following ways: Step 1: First, enter the SIP amount that you invest Step 2: Enter the period you want to invest in the SIP. This period is the investment tenor. Note that this has to be a correct figure. This period is the period up to the maturity date. Step 3: Enter the expected return rate on the mutual fund. It is the interest rate if it is a debt mutual fund SIP. For an equity mutual fund SIP, use the 5-year historical rate of return for the return percentage. Step 4: Click Calculate now The total cumulative amount from your SIP will be calculated using the SIP calculator. This includes the accumulated principal plus interest or returns thereon. Advantages of using a SIP calculator: 1) A SIP calculator is a reliable tool to estimate the total value of your investment. 2) A SIP calculator is a commonly available online tool. You can easily access a SIP calculator on any broker’s site or online site selling mutual funds. 3) A SIP calculator accurately estimates the accumulated investment from your SIPs over long periods. 4) You don’t need any assistance. The data inputs that a SIP calculator needs are available to you. There are no complicated steps. Step-up SIP calculator There are other online step-up SIP calculators available to calculate your total investment. The same fields are present in a step-up SIP calculator as in a SIP calculator. In the output cell, a step-up SIP calculator also shows the following data: the total accumulated amount, an estimated return, a growth table of how your SIP contributions are growing, a growth chart for your reference, the step-up SIP shows you a pre-estimate of your step-up SIP amount. The formula applied for calculating SIP returns FV= P X (1+i)^(n-1)X 1/(1+i)^I where FV= Future accumulated value of your SIP investments P = SIP instalment being invested by you i/r = compounded rate of return n= investment tenor r= expected rate of return “i” converts “r”, the expected rate of return, into a compounded rate of return. This SIP return is known as the compound annual growth rate of returns. The formula does not need to be manually calculated. This challenging calculation is made using the SIP calculator. Why should you start a SIP in equities or mutual funds? 1) A SIP does not call for large savings. You can start a SIP with amounts as small as Rs. 500 a month. 2) A SIP helps you meet multiple financial goals. You can start separate SIPs one after the other. 3) It is the first step in achieving your goal of maximising your money. Everyone is familiar with the story of the crow holding a tall jar filled with water at the bottom. To ultimately get to the water and drink it, the crow drops several stones, one by one. This is how starting a SIP works. You make tiny investments initially to gain a huge investment over time. Benefits of a SIP Doing a SIP has multiple benefits: It teaches financial discipline. You can do a SIP regularly over a long period of time. SIP reduces the average cost of your investment. Doing a regular SIP over a long period reduces the weighted average cost of your investment. This technique is called rupee cost averaging. When you make a lump-sum investment, you invest at the market NAV. With every SIP you do, you buy mutual fund units at lower and higher NAVs. This method brings the average cost down. SIP returns make you understand investments better. Suppose your fund is not performing well. You can always switch investments to another fund that performs better. By doing SIPs, you can choose the best investment options. Your risk-return profile defines these options. SIP returns use the principle of compounding returns. It helps your investments grow at a faster pace than inflation. [B-02] Most of us have a habit of investing in mutual funds or the stock market. The best way to increase your long-term wealth is to develop a SIP habit. It is better to begin a SIP when you are younger. SIP investments are intended to be made over a longer period of time. Your wealth increases as a result of compounding. Before picking your investment, please visit a financial advisor. Use a SIP calculator on any broker’s website before performing a SIP. It is basic, straightforward, and simple to use, as was already noted. *Please note that the formula for calculating a SIP may show as plagiarism as it is a generic formula present on many websites.
08-11-2023
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Learn About Tax Exemption On Insurance: 2023 Edition

What is Tax Exemption? Tax exemption is a legal right to eliminate some or all of your income from taxation set by the government. Majority of taxpayers can reduce their taxable income, provided they know the correct ways. Be careful, these are not to be confused with tax deductions. There are many types of tax exemptions in India. Let’s learn about tax exemption on insurance. [B-01] Term Insurance Tax Benefit: Explained Term insurance is a safe protection plan that provides coverage for the term that you are insured. In case of an unfortunate incident such as death, your nominee will receive the sum assured. There are many tax benefits of term insurance plans. Let us have a look at some of them. Deductions under Section 80C: The money you invest in term insurance plans allows you to save money as tax benefits. With this, you can get deductions of up to Rs. 1,50,000. Benefit under Section 10D: As per the updated Section 10D, if the premium of ULIP (collective or singular) exceeds Rs. 2,50,000 per year, tax exemption will not be applicable on the sum received. However, the exception is the death of the policy holder, in which case the sum assured on death will be exempted from the tax. For all other term insurance plans, the maximum premium amount should not exceed Rs. 5,00,000 per year in order to enjoy tax exemption. Health Insurance Tax Benefits: Explained Medical coverage is one of the best financial choices you can make. It covers unexpected medical expenses. Medical charges are very high in case of hospitalization. So, if paying the minute cost worries you, think about the huge bills. This is why the government provides tax benefits on medical insurance. This encourages more people to add medical insurance to their portfolio. Mediclaim Deduction: Section 80D Section 80D offers money deductions on health insurance. It is a great investment for tax planning. The types of mediclaim deductions in Section 80D include: Money spent on maintaining health Money spent as a premium for the policy Let us have a look at the various deductions. Preventive healthcare Below 60 years- Rs. 5000 Above 60 years- Rs. 5000 Self, spouse, and children Below 60 years- Rs. 25,000 Above 60 years- Rs. 50,000 Maximum deduction Below 60 years- Rs. 50,000 Above 60 years- Rs. 1,00,000 Parents Below 60 years- Rs. 25,000 Above 60 years- Rs. 50,000 Exclusions under Section 80D Certain deductions cannot be claimed under Section 80D: If you choose to make the premium amount in cash. If the premium paid is by the third party, other than you, such as your uncle or aunt. Group health insurance, unless the taxpayer chooses to make extra payments as add-on to avail of tax deduction. Siblings or relatives who are not financially dependent on the taxpayer. What To Know Before Buying Medical Insurance For Claiming 80D Deduction Sister, brother, or relative of the taxpayer cannot claim a deduction for tax benefits. If the payment is done by you and your parents, you both can claim the deduction. If the premium is paid for working children, this cannot be claimed. The deduction excludes the cess portion and service tax from the premium amount. Premiums made on behalf of the company cannot be claimed for deduction. If the premium is paid in cash, they are not allowed for deduction. But, by any other mode of payment, deduction can be claimed. Attractive Tax Planning Benefits Let us have a look at the long-term benefits of tax planning: Tax planning helps minimize tax liability There are many tax planning investment programs today. With the help of these plans and programs, you can reduce your tax burden to a great extent. Tax planning reduces tax disputes Proper tax planning at the beginning allows you to stay stress-free. You won’t have to worry about it in the future. It helps protect you from legal liabilities. Tax planning helps secure future The best benefit of tax planning is that it helps you secure your future. It allows you to redirect money to income-generating tools. Tax planning ensures economic stability Planning tax allows you to contribute to the country’s development. You can manage finances well and avoid worrying at the last moment. [B-02] Tax planning and exemptions Disabled individuals can claim deductions on medical expenses or health insurance premiums as per the Income Tax Act. The amount of deduction is Rs. 75,000 per year. People with severe disabilities can claim a deduction of Rs. 1,25,000. For more information, visit the official Piramal Finance website.
08-11-2023
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Banking

What is net banking, and how does it work?

Net banking encompasses the area of digital commerce, or e-commerce. The rise in internet use has provided many ways to transact money in recent years. Everything is possible if you do your bank login right from booking flight tickets to shopping online. Net banking is a very helpful process that makes your life easier. In basic terms, net banking is a digital method where a transaction or transfer of money is done using the internet. A big advantage of net banking is that you don’t have to go to the bank physically for transactions. You can use the internet to transfer funds, money, and payments. You only need a functional computer (laptop or desktop) or a smartphone with a good internet connection. [B-01] Certain unique features of net banking include: Tracking, managing, and monitoring bank balances and statements are easier. NEFT, RTGS, and IMPS methods can be used to transfer funds online. It is a secure method of banking. It allows password-protected banking. A bill payment system that is quick and easy. To channel or cancel automatic payments. Easily accessible banking services, which can be financial or non-financial. The accessibility of your bank account increases as it becomes more convenient to access it anytime, anywhere. Why choose internet banking? Technology has changed our way of living in many ways. We are now in a busy world where we have no time to spend in banks waiting in a queue. Technology makes your life easier by allowing you to pay the money within seconds. Maybe in the future, we will just use online transactions and not use notes and coins made of paper and metal. So that brings us to the question: how does net banking work? The bank will send you a user ID and password when a bank account is opened. Note the password and the user ID correctly because you will need them from time to time; after that, visit the bank’s website on your computer or smartphone. The net banking login asks for the necessary information that you need to fill up on the website. After the bank login is activated, an option appears where you can change the password. Finally, you can easily access the financial services that your bank has to offer. Remember that bank login should be done carefully online. Make sure to check the website properly to avoid any kind of fraud. You need to know all about bank logins if you plan to do online banking because it’s the first step. For opening a net banking account, there are a few steps which are as follows: Step 1: The first step is applying for a net banking account. You need to reach the bank to activate your online banking. If you have an existing account, you can talk to the bank administration about it. Approval from the bank is necessary for starting online services. You cannot use the services because high security is necessary for digital transactions. Once your bank has accepted your request for online banking, it sends you two key codes that allow you to continue with your net banking login. Step 2: Collect the User ID & Password for your net banking to work; have the User ID and password for bank login. You must request the bank for a User ID for you and a password. For new account applications, the user ID and password are given when opening the account. Step 3: Generating a new user ID requires a bank to provide you with a set of numbers. The bank will send the concealed document via electronic communication. The given password is used for bank login. After the first net banking login is done, the bank then requests that the users change their previous password. This is done to maintain the high security of the account. Changing the user ID after authenticating the first log-in is also advisable to ensure that you have a new set of user IDs and passwords. You can change the user ID and password with the following steps: Firstly, you need to log in with your bank’s online website. Then enter your respective User ID as well as password. They will be provided beforehand by your bank. Then you can choose to log out. When logging out, you will see one tab on the bank’s website for the new user ID. This will help you create a new or “fresh” user ID. Once you choose a new User ID option, the website will ask for details from your side, like preliminary information like your date of birth (DOB), profession, mobile number, email ID, address, and other relevant information. The bank will already have this database secured with your KYC. After entering vital information, you will be sent a one-time password to your registered phone number. The second stage of security assurance strengthens the security system to avoid unethical hacking. You need to enter this password to create your desired user ID. Similarly, follow all the same steps to create a new password for your account. [B-02] Conclusion Overall, we can see the rising importance of Net banking in today’s time. It is very important that you first do the Net banking login properly before getting into any transaction. You can start your bank login in any previous account or start afresh. Be careful before putting in the details on the website to avoid unethical hacking of personal details. Are you looking for similar finance blogs? Visit the Piramal Finance website and help yourself to the knowledge of wide-ranging financial products and services, especially credit cards and personal loans.
08-11-2023
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Other

7 Things To Know About Nifty Futures

The Nifty Fifty is an index of fifty companies listed on the National Stock Exchange (NSE) of India. Trading in Nifty futures is quite risky but beneficial at the same time. Are you planning to invest in the Nifty Fifty? Before doing so, it is important to know a few things. But first, let’s take an overview of the Nifty Fifty index and Nifty futures. [B-01] A Quick Overview of the Nifty Fifty Index and Nifty Futures The Nifty Futures is a financial instrument that gets its value from a related asset, i.e., the Nifty fifty index. So, the Nifty Fifty index is proportional to the Nifty Futures contract. If the value of the index rises, so will the value of the futures contract; if the Nifty falls, so do the Nifty futures. A buyer or seller has the right to trade the Nifty Fifty index at a predetermined price at a future date. But before you invest, there are a few things you should know. 7 Things to Know Before Investing in Nifty Futures Don’t make excessive investments. You never pay the entire amount when buying or selling a nifty future. Instead, you have to pay a margin of only 10% in normal trade and 5% in intraday trade. As you only pay a part of your investment, you may end up investing in many contracts. If the market goes as per your expectations, you will gain. But if the market’s decisions go against you, you will face losses. So, prevent yourself from investing. Look into open interest data before taking a position. Before investing in Nifty Futures, one must look into the open interest data, because the data provides a clearer picture of the trend accumulation. It tells you whether the investment is heading toward the longer side or the shorter side. For example, if the number of contracts sold is higher than the number of purchases, the market will be bearish soon. But if the contracts purchased are higher than those sold, the market will be bullish soon. Taking both situations into account will help you with decision-making. Know the counterparty’s perspective. There are two parties involved in Nifty futures contracts. One is the buyer of the contract, and the other is the seller (counterparty). It is crucial to understand the intention or perspective of the counterparty to know the reason for the price levels. For this purpose, open interest data will provide you with the necessary information. In short, understanding the counterparty perspective clarifies the Nifty Futures investment. Be watchful of overnight risks. Profits and losses are an integral part of investing in Nifty futures. Whether you are buying Nifty futures or selling them, there is a risk involved on both sides. Many buyers and sellers think closing stop-loss deals during the day is the only side of Nifty Futures contracts. But there is another side to the coin: an overnight risk that occurs in the after-hours of the market. And these overnight risks are way riskier than those of stocks. For instance, if you invest during the day, there may be a downward slope at night due to changes in market factors. Thus, be watchful of overnight risks. Make sure the future spreads are marginal. The “spot” refers to the current security price at which you buy or sell at a particular time and place. The difference between the spot price of Nifty fifty and the future contracts of Nifty is called the “future spread.” It is necessary to be cautious of this spread while trading Nifty futures. For instance, the market may behave positively or negatively. When this happens, you shouldn’t trade because it means that future contracts are either too expensive or too cheap. Keep an eye on extra costs and related tax implications. Investing in Nifty Futures comes with some extra costs, such as statutory and brokerage fees. These costs have a strong impact on your breakeven point (the point where the total cost of operations is equal to total sales or revenue). The tax applies to Nifty futures as well. Any profit or loss in Nifty futures is a capital profit or loss. These carry tax implications with them. Keep an eye on these extra costs to save your money for future investments. Try to understand the different margins. While buying or selling nifty futures contracts, there’s always the possibility of profits or losses. Yet, while stop-losses are essential in trading, you should also understand the margins before investing. The initial margin for the contract includes two margins: the VAR (value at risk) and the ELM (extreme loss margin). As the ELM is no longer optional, the broker should collect both of these margins. Besides, you have to pay MTM (mark-to-market) margins daily to ease your capital allocation. [B-02] Conclusion Investing in Nifty Futures is quite a challenge for newbies. Moreover, experienced investors are familiar with the ups and downs of the market. For both newbies and veterans, keeping these seven things in mind will make the journey easy and profitable. Read more related blogs on the Piramal Finance website to explore our financial products and services, especially those on personal loans, credit cards, and financial calculators.
08-11-2023
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Mutual Funds

Why You Don’t Need A Demat Account To Invest In Mutual Funds

Funds are an essential part of everyone’s investment portfolios. Mutual funds are an excellent way to diversify risk across multiple investments and asset classes such as stocks, bonds, and commodities. However, you don’t need a Demat account to invest in mutual funds investment plans. This makes it easier to start investing in them if you haven’t already started. In this article, we’ll explore the various ways you can invest in mutual funds without getting your Demat account. [B-01] What is a Demat account? It’s an account that you can open to buy and sell stocks, shares, and securities. It’s an electronic platform where investors store their bought securities, such as equities in a virtual wallet. This type of account is available to individual investors as well as institutions. Getting a Demat account makes it easier for you to trade online and invest your money in various investment instruments because you don’t have to go through the process of opening an entirely new brokerage account. However, you don’t need a Demat account to invest in mutual funds. Mutual funds investment plans are offered by mutual funds companies that employ experienced portfolio managers to manage the investment. All you need to do is contact the company with which you want to open an account and request a mutual funds investment plan. Advantages of having a Demat account to invest in mutual funds Finding mutual funds investment plans that suit your risk profile may be challenging without a Demat account. If you invest directly in mutual funds investment plans, you may incur higher brokerage costs and taxes. The market value of the securities in your account may fall below the cost of buying them, or you may need to sell the shares for other reasons. Unless you want to hold all your mutual funds investment plans in physical form, a Demat account can provide benefits like lower transaction charges and more convenient stock transfers. However, many investors don’t want their money stuck inside trading accounts, so they look for the best mutual funds to invest in. Investors with large portfolios can benefit from having their investments placed in mutual funds with no lock-in period or minimum contribution amounts because the best mutual funds to invest in do not require opening a Demat account. Other benefits of holding mutual funds investment plans in a Demat account include increased liquidity, ease of transferability, and less time-consuming paperwork. However, there are certain disadvantages associated with these funds. For instance, transferring holdings from your name into someone else’s name might be necessary. A lot relies on how much flexibility you desire in your trading frequency and the type of mutual funds investment plans you are interested in. What are the alternatives to having a Demat account for mutual funds? Investing in mutual funds can be a great way to start saving for retirement or just saving up some money for a rainy day. However, you don’t always need a Demat account to invest in mutual funds. Mutual fund investment plans offer investors a simple way to invest while keeping assets safe. It might seem like a Demat account is an important part of mutual funds, but it is one of several ways to invest in mutual funds. Many companies offering the best mutual funds to invest in have a wide variety of options available to investors which don’t require them to open a special type of account. Of course, if you’re looking for a more hands-on approach to investing in mutual funds, it’s still possible to do so without opening a Demat account. Investing in mutual funds investment plans is a great way to diversify your portfolio and access investment opportunities that you may not have otherwise. Unfortunately, it can be difficult without a Demat account because these types of accounts are typically needed for purchasing the best mutual funds to invest in. Fortunately, alternative methods exist for investing in mutual funds investment plans without a Demat account. Many companies allow you to purchase shares of their mutual funds using a bank transfer from your current account. As long as the transaction is funded by cash or a loan from your current bank, it will count as investing in mutual funds without needing a Demat account. Online brokers often allow you to invest in mutual funds without opening a separate account. They do so by accepting orders for the best mutual funds to invest in. Buying shares of mutual funds through these transactions does not cost anything because they are carried out electronically rather than on paper. You can purchase units of the best mutual funds to invest in by opting for systematic investments annually. These plans allow you to buy one or more plans simultaneously. Alternatively, if you want more flexibility than periodic investments, SIPs might be a good option. With SIPs, your money goes directly into the mutual fund’s investment plans of your choice every month or quarterly, depending on which option best suits your needs. Another benefit of this method is that you do not require brokerage services like those offered through a Demat account. Finally, another way to invest in mutual funds without a Demat account is by purchasing units of cooperative banks’ shares. So, while having a Demat account helps while investing in mutual funds, there are plenty of other ways to go about it! [B-02] Conclusion Mutual funds are a great way to diversify your portfolio and find investments for the long term. If you are looking for a low-cost, low-risk way to start investing, mutual funds investment plans are the way to go. And if you already have a Demat account you never use, don’t worry: having the best mutual funds to invest in is not necessary. Just open up an account with any mutual funds company of your choice, fund it with some money, and then purchase some units or shares of the best mutual funds to invest in. If you need help with finances, you can always contact experts such as Piramal Finance to guide you through your financial worries. They will suggest which mutual funds are best for you to invest in and help take care of your personal finance requirements if any.
08-11-2023
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Stocks Markets

Simple Share Trading Apps To Start Online Trading

With the rising popularity of online trading, there has been a growing demand for different trading applications. The app is becoming an essential tool for traders to keep track of all their trades and analyze performance in real-time. Today, more than half of retail investors use apps to get better market access, run analyses on companies, and manage their portfolios. These apps have made trading accessible to everyone, not just the tech-savvy or rich. To help you start your trading journey as smoothly as possible, we’ve gathered 5 of the best free online trading apps to get you started! But first, let us understand: what is mobile trading? [B-01] What is mobile trading? Mobile trading is using a mobile device, such as a smartphone or tablet, to trade on the market. Traders can keep an eye on the price of a stock or commodity and other data from wherever they are. Mobile trading is the buying and selling of stocks, bonds, cryptocurrencies, and other investments. The Securities and Exchange Board of India (SEBI) approved mobile phone trading in 2010. The advantages of mobile trading are that it is easy and doesn’t need much setup. It’s easier to carry around than a desktop computer or laptop. And because most smartphones have internet access built into them, you don’t need an extra wireless connection to get online. This makes it very accessible for anyone interested in trading. Mobile traders also have access to real-time data. They can see how the price is moving and acting. Top 5 Share Trading Apps for Beginners Here are the top Share Trading Apps in India to start online trading with: Zerodha Kite Zerodha Kite is one of the most popular mobile share trading apps by Zerodha. It is on iOS and Android and is one of the country’s finest trading apps for the volume of trade activity. It’s simple to use and straightforward. There are no cluttered components to navigate or comprehend. Users may search for and investigate simple or complicated stocks using this tool. They may also use real-time charts to apply over 100 technical indicators. Users can also create a personal watchlist consisting of all-time data. Trade Price: ₹20/trade. 5 Paisa Five paisa discount brokers own the app. 5 paisa is a smart, functional share. The trading app is popular with investors and traders. It provides a variety of items, including stocks, mutual funds, commodities, and currency. The app includes all the features an investor or trader desires. Also providing research and advisory, 5 paisa also offers it. It has a guest login function and an easy Demat opening function for beginners. It provides real-time updates and quotes from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), and it has an auto-investing feature. You can invest for free through the app in the top mutual funds. Trade Price: ₹20/trade. Upstox Pro Trading App Upstox is one of India’s finest stockbrokers and a popular mobile share trading app. Upstox Securities was once called RKSV Securities and was headquartered in Mumbai, India’s economic capital. It has a web version as well. Upstox has a complicated share market app occupied by unique features to attract more people. The Upstox Pro Trading share market app has brokers charged with all trading activities and delivery trades. Users can find simple and complex stocks via a universal search tool. There are over 100 technical indicators that may apply to real-time charts. TFC enables users to trade from charts. It provides historical data for the last 10 years. One cannot verify the links between bank account details. Trade Price: ₹20/trade. Groww There are no hidden charges or complicated menus when you use the Groww app. It is a great choice for beginners because of its simple interface. The app-based platform allows investors to make free direct investments in mutual funds. Since it began as the most basic of apps, it is a time and location-independent stock market app. It is, without a doubt, the finest trading app in India. This app lets you invest in stocks and other financial tools like digital gold assets, fixed deposits, and mutual funds. You can also track your portfolio’s performance, analyze company news, and make investment decisions. The best part is that you can invest in UPI with a single click. Trade Price: ₹20/trade or 0.05% (whichever is lower). Angel Broking Online Angel Broking’s Angel Speed Pro, a share market app by Angel Broking, provides an easy trading experience with a one-window trading space. Angel Broking is a veteran campaigner with over 30 years of presence, one of the first to enter India. It offers investors insurance, mutual funds, brokerage, and other financial products & services. It also gives stock prices in a snap and provides instant market information. It provides real-time index information and lets you view several indices. You can get intraday chart news. Trade Charges: ₹20/trade [B-02] Conclusion You never know what you’ll find lurking inside an app when you install it. This article highlights the five best trading apps in India. While there are many more out there, these are our picks for the best available. These apps are perfect for beginners starting to dip their toes into investing. Their features are straightforward, and the charges are also explained in the article. So you can make a choice. If you need help with finances, you can always take the help of a financial expert like Piramal Finance. They will suggest what’s best for you and help take care of your loan requirements, if any.
08-11-2023
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