Every one want to own a house ,especially indian's are so much emotional about their own house rather living in rent as compared to developed countries . Today most preferred way to buy a house is taking an home loan from any financial loans at 80--85% of overall project cost ,which is today available at attractive rates with longer payment duration. But taking commitment for longer duration like 15,20 years we are getting into a longer liability cycle and many of us are scared due to today's disruptive business environment.
Is there an another way to achieve this ? Yes . Home buying is not an instant decision in most cases, it is a firm thought we have from the day one when we start earning. So we can start planning and investing from the day one we start earning with systematic investment plan (SIP). The good news is that small amounts can really add up significantly with power of compounding magic if you invest regularly.
A contribution of Rs.20,000 a month at an annualized return of 12 % for 7 years could give you nearly Rs.25,00,000 and peace of mind without worrying long term commitment by the way of EMIs. This can be customized according to your needs to fulfill your dream home buying.
Today any of the parents biggest worry is how to plan for their children's higher education & marriage expenses considering higher inflation, education cost and cost of living. The good news is that small amounts can really add up if you invest regularly from the child's birth.
A contribution of as little as Rs.4000 a month at an annualized return of 12 % could give a child nearly Rs.25,00,000 by the time he or she reaches 18. Grant parents can also contribute to their grand children's education either by lump sum or systematic investment plan(SIP).
Our specially designed children plans are here to help you to meet your children's/grand children's higher education, marriage expenses by taking small steps at a time.
"A penny saved is a penny earned". We feel tax planning is not a separate activity, it should be looked as part of one's investment plan. By investing Rs 1.5 Lakhs in a financial year through monthly SIPs, an individual in highest tax bracket can save Rs 45,000 per year.
When compared to traditional tax savings instruments Equity Linked Savings Scheme (ELSS) mutual funds are excellent choice for individuals, as it provides shorter lock-in period of three years and high returns potential to beat inflation along with tax exemption on long term capital gains .
Hardly anyone is covered by guaranteed pension today. So, plan for it. Surveys by financial firms show that Indians don’t give retirement savings priority, busy as they are saving up for their children’s higher education or wedding expenses. To start with, an overwhelming proportion of employees (even in the organized sector) today are not covered by any guaranteed pension scheme.Now one can't earn adequate income by just investing gratuity or provident fund benefits.The other factor that most of us don’t budget for is longevity. With better nutrition and medical care, today’s generation has to plan for a retired life that may be almost as long as their working life.
While estimating our pension needs, all of us also need to factor in higher inflation than our parents did too. This has significant implications for the amount of pension you will need and the savings you need to make today. For one, for a comfortable retirement corpus, start as early as possible.
A person who starts a systematic investment of Rs. 10,000 a month in an equity mutual funds (earning 12%) when he/she is 25, can accumulate Rs.6.5 crore by age of 60 and withdraw monthly by systematic withdrawal plan (STP) after retirement . In addition,they can avail income tax deductions under 80C during investment period.
Relying entirely on Debt products such as the Public Provident Fund,EPF,Suganya Smriti, ULIPs, Insurance plans , Fixed deposit etc for your retirement kitty is sure to leave you very much short of cash when you are ready to hang up your boots. Finally, the surefire way to be comfortably off by the time you retire is to ensure that you invest only in avenues that beat inflation by a good margin and tax efficient too.
Do we really love our kids ? If yes, please complete your retirement planning today and avoid being huge financial liability (living & medical expenses) for your children during your retirement age. Let us plan and invest for our retirement today and help our children to live their dreams without worrying our retired life .
These days everyone want to know how to beat recession, salary cut & job Loss which are daily newspaper headlines these days. The only solution to beat recession is to create second Income. We agree that only thing constant in life is change. Good times never lasts forever so as bad times. The biggest mistake is to think otherwise i.e. Good time will last forever & Bad time will never come.
Best financial planning is when we prepare for bad times during good times. Sounds quite philosophical but unfortunately it is harsh reality of today. Second Income is a back up during bad times or we can say its a blessing in disguise. Second Income should be planned during good times. Though it is not easy to generate second income source but it is not impossible also. Let’s find out a simple way to create second income source.
One can start investing in equity mutual funds during their good times called as accumulation phase with a vision of creating a huge corpus with possible timelines based on one's individual scenario .Once the corpus is achieved ,we can with draw the money monthly through STPs automatic credit to your bank account . Simple isn't it ?
Even though it is more than three years since the Reserve Bank of India deregulated interest rates on savings deposits, most banks still offer around 3.5-4 % for savings account. Current account holders don’t get any interest in their account.Some banks offer higher interest rates on savings accounts but ask for a higher minimum deposit.Still, we park a significant proportion of our spare cash in these low-yielding savings accounts, earning much lower rates than the inflation rate.
Liquid mutual funds can help us earn much higher rates than what the savings deposits offer without compromising too much on how quickly we can get our hands on the cash.So, the idea of keeping the emergency fund or surplus money into liquid funds is worth exploring as it offers safety, liquidity and better returns.
Liquid fund is a debt mutual fund which invests primarily in money market instruments like certificate of deposits, treasury bills, commercial papers and term deposits that hold least amount of risk with no stocks investments.