Best ways to invest your money(Part 3)

Description :

Published on Feb 28, 2019

In Part 1 & Part 2 of the best ways to invest your money, we spoke about following a 4 step investment procedure/process, let us conclude the topic by giving you what exactly are the best options on your platter, you can decide which one to choose based on your preference:-

Mutual Funds- Best way in India because it helps to gain returns over time.

i) Equity Funds(High risk-High returns)

ii) Debt funds ( Steady income with low risks)

iii) ELSS(Equity Linked Saving Scheme which is tax saving funds)

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To know which one to pick, know your own goals and risk profile.

We here at Finity are happy to guide you every step of the way on the easiest direct mutual fund platform in India.

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Speaker Info:- Dipika is the Vice President along side head of business development at Finity. She has 11+ years of experience and 1000+ conversations in investments, personal wealth management, advising clients, communication & relationship management. She is creative, witty and quick to grasp new concepts. A powerhouse in her own right.

You can reach out to her on :

Whatsapp number: 7975755821

Email ID: dipika@finity.in.

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Download links: Download android app: https://bit.ly/2OMEWvn

Download ios app: https://apple.co/2PVqN2C

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Check out our: Website: https://finity.in/

Facebook Page: https://www.facebook.com/Finityw/

Twitter: https://twitter.com/Finitywealth

Instagram handle: https://www.instagram.com/Finity_wealth/

 

 

 

TRANSCRIPT:

Talking about the best investment options let’s talk about mutual funds.

Mutual funds are considered to be one of the best ways to invest your money especially in India they offer you a route to save your money as well as growth over a period of time, there are various types of mutual funds that you could consider while planning to invest your money.

  • I’m going to start with talking about Equity Funds– equity funds are funds with high-risk and high-returns, you get to choose from a host of options such as large cap funds, mid cap funds, multi cap funds, balanced funds or thematic funds that suite your risk profile and your requirement, if I talk about thematic or sectoral funds these are typically the funds which have the highest risk amongst all equity funds along with small cap and mid-cap funds.
  • Debt Mutual funds– debt funds are preferred by investors who are looking for a steady income with relatively a low risk and typically they fall in line with your bank-related investments and you could compare it apple to apple to those particular investment options, these funds invest their money in government securities, corporate bonds, money market instruments etc, and are considered to be a relatively a safer investment avenue as compared to equities or equity funds.
  • Equity linked saving schemes otherwise commonly known as ELSS are a category of mutual funds which have a lock-in period of 3 years, where you could invest upto Rs.150000 where you get a tax benefit U/S 80C.

Thank You!

NPS Taxation - Nirav Karkera

Decoding Taxation on NPS

Here are the Key points of what’s in this video:·

  •  An investor can withdraw 60% of the total corpus but up to 40% of Corpus withdrawn in a lump sum is exempt from tax.
  • Balance amount invested in Annuity is also fully exempt from tax.
  • Pension received out of investment in Annuity is treated as income and will be taxed appropriately.
Invest in Mutual funds online - Dipika Jaikishan

How to invest in a Mutual fund online?

As the newer generation is moving from manual transaction to online transaction, this video talks about the various advantages of investing online. It also helps in simplifying the process of investment in a fast, effective and efficient way. Mobile apps like Finity can be installed and steps are as easy as:

  • Register one time.
  • Complete your KYC(Know Your Customer).
  • Sync your bank account.
  • Select your mutual funds for investment.

Best ways to invest your money(Part 2)

Description :

Published on Feb 27, 2019

n Part 1 of the best ways to invest your money (https://youtu.be/IYe3981qrdo) we spoke about 4 primary steps, now let’s discuss those steps in detail-

1) Determining your risk tolerance (Note:- Vehicles come with low/high risks)

2) Set Financial goals(short/mid/long-term)

3) Decide Investment surplus(earnings & expenses)

4) Plan Asset Allocation(deciding the mix of assets in a portfolio)

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To know which one to pick, know your own goals and risk profile.

We here at Finity are happy to guide you every step of the way on the easiest direct mutual fund platform in India.

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Speaker Info:- Dipika is the Vice President along side head of business development at Finity. She has 11+ years of experience and 1000+ conversations in investments, personal wealth management, advising clients, communication & relationship management. She is creative, witty and quick to grasp new concepts. A powerhouse in her own right.

You can reach out to her on :

Whatsapp number: 7975755821

Email ID: dipika@finity.in.

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Download links: Download android app: https://bit.ly/2OMEWvn

Download ios app: https://apple.co/2PVqN2C

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Check out our: Website: https://finity.in/

Facebook Page: https://www.facebook.com/Finityw/

Twitter: https://twitter.com/Finitywealth

Instagram handle: https://www.instagram.com/Finity_wealth/

TRANSCRIPT:

Let’s discuss the 4 steps a little in detail talking about determining your risk tolerance once you determine your own risk profile and risk tolerance, you also need to understand that each investment vehicle has its own pros and cons and its own risk attached to it, so some investment options such as debt options come with a low risk and equity options come with a high risk.

  1. Determine your risk profile– You need to decide your own risk profile in line with investment options whether you are a low-risk taker or a high-risk taker or moderate-risk taker and choose the investment vehicle accordingly.
  2. Offsetting financial goals- It is a very often used term encouraged by every financial advisor and I do believe that it has a merit in putting down your financial goals which help you target them in certain time frames, so whether their short term, mid term or long term financial goals, whether you want to earn a car in the next 9 to 18 months, whether you want to buy a house 5 years from now, whether you want to buy gold for a marriage purpose or anything else, if you set them down in time frames, it helps you target them and plan your investments to reach them, whatever may be your financial goal you can always start a basic SIP or a basic investment into it.
  3. Determining your investment surplus- while establishing your investment surplus it has to be done in line with your income and expenses each one of us have different incomes, different expenses, different commitments which determine our cash flows investment ability so once you have put down your income and expenses for at least a 3-6 month rolling period it helps you have a track of what your savings capacity is and what is available to make investments.
  4. Planning asset allocation- asset allocation is simply deciding what is the mix of assets that you need in your portfolio even if I talk about just a pure mutual fund portfolio, within this also you can have a mixed asset allocation you can have debt funds, you can have sectoral funds, you can have equity mutual funds, you could have liquid funds, you could have contra funds, it is extremely important to have essentially uncorrelated assets in your portfolio so that in any point in time if one particular asset class is not performing I could rest assured that something else within my portfolio is performing and taking care of the balance.

Thank You!

Best ways to invest your money(Part 1)

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Description :

Published on Feb 27, 2019

Today let’s talk about the most interesting topic, what are the best ways to invest our money? We will be putting out a few options on your platter you can pick which suits the best for you before that let’s look at a few steps:-

1) Identify your risk tolerance.

2) Establish your financial goals.

3) Identify your investment surplus.

4) Identify your asset allocation.

We will talk further in the next parts stay tuned…

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To know which one to pick, know your own goals and risk profile.

We here at Finity are happy to guide you every step of the way on the easiest direct mutual fund platform in India.

—————————————————————————————————————————————————————————————————————————————-

Speaker Info:- Dipika is the Vice President along side head of business development at Finity. She has 11+ years of experience and 1000+ conversations in investments, personal wealth management, advising clients, communication & relationship management. She is creative, witty and quick to grasp new concepts. A powerhouse in her own right.

You can reach out to her on :

Whatsapp number: 7975755821

Email ID: dipika@finity.in.

—————————————————————————————————————————————————————————————————————————————-

Download links: Download android app: https://bit.ly/2OMEWvn

Download ios app: https://apple.co/2PVqN2C

—————————————————————————————————————————————————————————————————————————————-

Check out our: Website: https://finity.in/

Facebook Page: https://www.facebook.com/Finityw/

Twitter: https://twitter.com/Finitywealth

Instagram handle: https://www.instagram.com/Finity_wealth/

 

TRANSCRIPT:

Hey guys today we will be talking about the best ways to invest your money I would like to take a moment here and quote Robert Kiyosaki the author of the very famous Rich dad, poor dad

“It is not how much money you make it is how much money you keep how hard it works for you and how many generations you keep it for.”

Several times we have discussions with our friends colleagues peers talking about what are the best ways to invest money and everyone has a different opinion on how you should invest your money what you should do with it. I would like to establish here a very simple investment planning process that you can put down for yourself and that can help you evaluate the best suited options for you a simple a procedure of tips to follow:-

  • Step 1- Identify your risk tolerance or your risk profile there are various tools available including one available on the my way wealth app that helps you identify your risk profile.
  • Step 2- Establish and put down your financial goals I think it is fairly simple for us to identify at least our short-term or medium-term financial goals and put them down on paper in line with your risk tolerance your financial goals give you an idea of which direction to go forward with.
  • Step 3- Identify your investment surplus I know several people who like to follow rules and say you know invest 10 % of your income invest 20 % of your income and so on and so forth but each one of us has a different amount of investment surplus that we should be investing and that kind of restricts our investment flexibility so identify your investment surplus and follow through.
  • Step 4- Identify your asset allocation your asset allocation is key to making your investment decisions because at different points in time or depending on your risk profile depending on your financial goals etc you need to follow a different asset allocation your asset allocation also has to be reviewed I wouldn’t say frequently but has to be reviewed regularly in line with your changing financial goals.

Thank You!

Make wiser investments in Gold

Gold funds

“Gold has two significant shortcomings, being neither of much use nor procreative”
-Warren Buffett

One of the most prominent investors of our time, Warren Buffett is known for his advice on investments is telling people to trade in anything but “gold”. However, we Indians love gold and just cannot let it go. It would be hard to find a person who has not invested in gold in one form or another. There are those who buy gold jewelry for different occasions like weddings, festivals, etc., while others look to make a profit.
“Gold is not an investment at all!” said the Vanguard founder and former CEO, John Bogle in an interview with CNN. “Gold is speculation. It has absolutely no underlying intrinsic value,” said the American investor, who is known for promoting Mutual Funds. An investment that only recently became popular among the average investor for its low-cost and high earning schemes.
Did you know that you can invest in gold through Mutual Funds? This investment vehicle collects the money and invests in physical gold without the hassles of storage and low yield. There are two ways you can go about it. One is to invest Gold Exchange Traded Fund (ETF) and the other is to simply invest in Gold Funds. Let’s see how they differ from each other :

 

Gold ETF

Gold Fund

  • Investor trades in the

physical gold through an exchange.

  • A Mutual Fund scheme which invests on the Gold ETF and other related assets.
  • Can be purchased from the stock exchange and requires a Demat account.
  • Can be purchased in Mutual Funds without a Demat account.
  • Gold ETFs are priced transparently based on international gold prices.
  • Gold Funds invest in Gold ETFs and other related assets, their NAVs are dependent on gold prices as well as prices of other assets that funds hold.
  • Gold ETFs typically require a minimum investment amount of 1gm gold which is close to Rs 3,000 at current prices.
  • Gold Funds allow a minimum investment of Rs 1,000 (as monthly SIP).

 

If you were determined to purchase gold, do so with the better investment vehicle. Since Gold Funds are professionally managed, they are preferred over physical gold, even though it holds less liquidity. Using the Finity App, any person can trade in these funds with his specific appetite of risk. Explore More on Top Rated Gold Funds

So go for the real gain, not just for the gold!
Think Finity!

Sukanya Samriddhi Yojana(Part 2)|Small Saving Scheme|By Govt. of India

Description :

Published on Feb 25, 2019

In Part 1 of this scheme we discussed the outlines of the fund, now let’s dive a little deeper in understanding the key features of this investment scheme:-

1) Who can invest? (age group)

2) Requirements(upper and lower limits)

3) Withdrawal.

4) Premature closure.

5) Provision for Nomination.

6) Account Holding type.

7) Principal protection.

8) Inflation protection.

9) Where do you open an account?

10) Documentation required.

 

TRANSCRIPT:

INTRODUCTION TO THE SCHEME:-

Let’s have a look at the key features of this particular investment option talking about who can invest in this any Indian resident a parent or a legal guardian can make this investment for the purpose of benefiting the girl child.

AGE BARRIER

In terms of the age barrier parents and legal guardians can open this particular account for a girl child who is 10 years or less of age.

MINIMUM DEPOSIT

In terms of requirements it is required that you make a minimum deposit of rupees thousand at least every year in case in any particular year if the investment has not been made it can be initiated from the next year by paying a penalty of fifty rupees the upper limit of this investment is 1.5 lakhs and this 1.5 lakh investment also gets you a tax benefit you can open a maximum of two accounts for two different girl childs a third account can be open for investment if three girls are born the first time or twin girls are born the second time.

RETURNS

The deposit earns a return of 8.5% percent which is reviewed and revised quarterly in line with other small savings schemes of the government.

WITHDRAWAL

Talking about the withdrawal it has a minimum holding period of eight years and matures twenty-one years after the initial investment has been made.

PREMATURE CLOSURE

Premature closure of this investment is only allowed in the extremely unfortunate event of loss of life of the girl child.

NOMINATION FACILITY

Talking about the nomination facility there is no nomination facility allowed as for this investment.

ACCOUNT HOLDING TYPES

Talking about account holding types this particular investment as mentioned earlier can be made by the parent or the legal guardian for a girl child.

CAPITAL PROTECTION

In terms of capital protection since it has been backed the government of India your capital or principal investment is protected.

INFLATION PROTECTION

In terms of inflation protection there is no inflation protection because inflation is an ever changing number however these investment rates remain range-bound in terms of withdrawing this amount fifty percent of this amount can be withdrawn at the time the girl child turns 18 the balance can only be withdrawn if the investment has completed 21 years from the date that you began it.

HOW TO OPEN AN ACCOUNT?

in terms of where you open this account this particular account can be opened in any post office which has a Savings Bank facility or in any branch of a commercial bank which has been authorized by the Government of India in terms of documentation required to open this particular investment the birth certificate of the child is required along with ID proofs of the parent or the guardian such as the pan card an aadhar copy or any other address proof typically your driver’s license your voters ID etc at time of opening this account the original ID proves as well as the birth certificate has to be taken for verification.

6 reasons that stop you from being rich

Gold or Mutual Funds?

As women, we love to show off our jewelry as they define our social status, lifestyle and earning capacity. Weddings, anniversaries or Akshaya Tritiya, we rush to get our favorite ornament made of gold. Why?
We hear our moms and grandmoms say, “Buy Gold, it would help when you are in need of money”. Meaning, traditionally Gold is not just a piece of jewelry but is considered as an investment.

Then why does the business magnate, Warren Buffett, does not invest in Gold?
He says: “It doesn’t do anything but sit there and look at you.”

They say investments in Mutual Funds fetch better returns. Do I choose Mutual Funds or Gold? Which one’s better?
Let me list down the differences between the two, that will help answer the above question and help you to make the right choice.

Investment in GoldInvestment in Mutual Funds
Gold is not affected by market conditions.
Mutual funds are affected by market conditions so there is potential to earn higher returns.
The process of investing gold and managing investments is an individual’s responsibility.
Mutual Funds are handled by Professional Fund Managers who perform research and guide your investments in Mutual Funds.
Fear of theft or loss of purity is more as Gold is a physical asset.
Mutual funds are invested in stocks, bonds, or Gold ETFs, they are electronic or online investments.
Diversification can happen only if one chooses to invest not just in Gold, but in silver, or other mining products.
Mutual funds provide the option of diversification as it allows investment in bonds, cash, or commodities like gold and other precious metals.
Value of Gold is more hence the amount you invest in Gold would naturally be high.
Initial Investment in Mutual Funds can be as small as Rs. 500 
Gold remains to have the same value unless someone buys it at a higher price.Investments in Mutual Funds earn high returns as time passes. Mutual Funds Providing >15% returns.
Gold incurs making charges and wastageMutual Funds have no such charges, in fact, investment in Direct Mutual Funds don’t even have commission charges.

 

Invest in your Child's Future

Make the right investment for your child’s future

“The cost of college education today is so high that many young people are giving up their dream of going to college, while many others are graduating deeply in debt”

— Bernie Sanders

Even though this quote is said in the context of education in the USA, the situation isn’t much different here in India. When we meet our old friends over a cup of tea or coffee, we cherish our school/college days. These nostalgic memories take us back to the good old days when it was much easier to dream, set our goals and achieve them with ease. The inexpensive lifestyle in those days gave us a lot of room to lead a carefree life.

Do you remember that schools use to collect a ‘humble’ fee of Rs 11,000 from a standard 12 student 15 years ago? But now the same education would typically cost about 2 lakh which is ten times more.

We at Finity tell our customers how the inflation in the education system rises in double-digits while your purchasing power climbs by just 6-8% each year. Simply put, it is tough for us to make ends meet.

The table below shows how expensive your child’s education would be (in a 5-year spread timeline) if education costs keep increasing at 12% every year. Just so that numbers are relatable and easier to understand, we have normalized the education costs for 5 years ago by computing them at the same rate:

Rising Costs of Education in India

You would have realized by now that as years pass the expenses would keep increasing, while your salary wouldn’t increase in the same proportion, unfortunately. Moreover, these forecasts of education costs don’t take costs of gizmos, gadgets, sports amenities and extra-curricular costs into consideration, which make education unaffordable even further.

According to HSBC Value of Education Survey 2018, there was an INR. 4.15 lakh shortfall between what parents contributed and what students needed for a complete education.

This is quite an eye-opener and reflects the under-preparation by parents for their children’s education. A major reason for such a discrepancy is the fact that parents do not fully understand education inflation and so, are unable to financially plan in an adequate manner.

Let us explore some investment options which are specifically focused on financially securing your child’s future:

Sukanya Samriddhi Account:

  • This investment can be made only in the name of a minor girl child and should be initiated before she turns 10 years of age.
  • Each girl child can have only one account and this can be opened for a maximum of two girl children.
  • The current rate of interest is 8.5% per annum which is tax-free.
  • Scheme qualifies for tax deduction under section 80C.
  • Minimum Investment amount: INR. 250, maximum investment amount: INR.1.5 Lakh in a financial year.

Children’s Fund

  • These funds have a lock-in period of 5 years or till the child attains the age of majority; whichever is earlier.
  • An investor can choose debt-oriented or equity-oriented schemes in the name of his/her minor child.
  • Minimum SIP amount: INR 500.

“The problem with Indian education is that education in itself is overrated while the need to financially plan for it is underrated”

Now that we’ve understood the need and benefits of long-term planning, don’t hesitate, make the smart choice and starts investing. Let your aspirations come alive.

Sukanya Samriddhi Yojana(Part 1)|Small Saving Scheme|By Govt. of India

Description :

Published on Feb 25, 2019

In today’s video, we will discuss the small saving scheme by the Government of India which is Sukanya Samriddhi Yojana which falls under the initiative of Beti Bachao Beti Padhao.

Let us look at the most relevant questions about the scheme:-

1) To whom is this scheme most relevant?

2) To whom is this scheme not ideal?

3) What kind of risk is involved?

4) What are the returns?

5) Is the scheme tax efficient?

6) What is the holding period?

7) When can you withdraw your money?

8) Does the scheme assure investment safety?

9) Is it inflation adjusted?

 

TRANSCRIPT:

Hey everyone, today we will be talking about the small saving scheme by the government of India known as the Sukanya samridhhi yojana, the Sukanya Samridhhi Yojana is specifically meant for parents with a daughter and wanting to save and invest their money for their benefit this, saving scheme falls under the initiative of the government of India known as the beti bachao beti padhao.

  • Suitable for?

The sukanya samridhhi yojana is ideal for parents with a lower risk appetite who want a short returns or fixed returns at the end of a period towards saving for their girl child.

  • Not Ideal for?

It is not suitable however for those who have a higher risk appetite and have the willingness to make investments into instruments which offer a higher return, there are similar options for similar investors which could probably be equity mutual funds if we have a time frame of 15 years or longer like you might have in the case of sukanya samridhhi yojana you are probably better off investing into equity mutual funds, another option which I might not urge you as much to do is investing directly into stocks.
Lets look into certain details with regard to the Sukanya samridhhi yojana.

  • What kind of risk is involved?

Talking about risk this scheme is risk free and is backed principally by the government of India.

  • What are the returns?

In terms of returns like in the case of any other small saving scheme these returns are revised every quarter the current interest rate on this is 8.6%.

  • Is the scheme Tax efficient?

In terms of tax efficiency the sukanya samridhhi yojana is extremely tax efficient becasue it follows the exempt-exempt-exempt status, which means your investment is exempt the interest you accumulate on this investment is also exempt and at the time of maturity as well the amount that is credited to you is exempt.

  • What is the holding period of investment?

Talking about the investment holding period, this particular investment matures 21 years after you actually make the investment, it has a minimum holding period of 8 years in terms of withdrawal you can withdraw after your girl child turns 18.

  • The aspect of Investment Safety

Investment safety, as I mentioned earlier having been backed by the govt. of India, this particular investment is protected for its capital.

  • Inflation-adjusted return

Talking about inflation-adjusted return which is specifically something that we should consider in scenarios when the inflation is high this particular investment may not be suitable, it is only well suited when the inflation rates are low. also to keep in mind is the fact that education inflation is typically a double-digit number and not in line with the returns you get in this particular investment option.
Thank You