Zero coupon bonds

Zero-coupon Bonds

Zero coupon bonds fall under the fixed-income securities segment. These don’t pay any interest or coupon, and at the time of maturity, the investor receives the face value or par value. Zero coupon bonds are also referred to as ‘Zeroes’ by many traders for this reason. These bonds generally have 10-15 years to maturity. Hence, they are traded at a deep discount. The bond prices vary as per the time to maturity.  

So, why will any investor invest in a zero-coupon bond? The primary reason for investing in these is that they are issued and trade at a discount from the face value. 

Here, we will explain zero-coupon bonds in detail and some of the factors that investors must consider while investing in these instruments.


Voluntary Provident Fund(VPF) Vs Public Provident Fund(PPF)- Where should you invest?

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Voluntary Provident Fund(VPF) Vs Public Provident Fund(PPF)- Where should you invest?

Investing in the right financial instrument is vital to increase one’s earning potential. While a good investment is more about balancing risks and rewards, the amount of return one gets depends on how much risk one is willing to take. However, not all investments assure high returns. 

With multiple investment options, it becomes more difficult to zero in on the most suitable scheme. PF schemes like EPF (Employees’ Provident Fund), NPS (National Pension Scheme), PPF (Public Provident Fund), and VPF (Voluntary Provident Fund) are some of the excellent options for investments as well as tax benefits.

Who can invest in Public Provident Fund(PPF)?

Any individual – a salaried individual, a student, self-employed, or a retired person—any citizen living in India can open a PPF account. But, the non-resident Indians are not qualified to open PPF accounts. However, a citizen of India who becomes an NRI after opening an account is eligible to hold the account until maturity. As per the law, an individual is allowed to open only one PPF account.

How does a PPF account work?

PPF is one of the most popular investment schemes. It is a long-term investment guaranteed by the government with a lock-in period of 15 years, assuring returns and fund protection. It comes under the Exempt- Exempt-Exempt regime which means that the contribution to the fund, the interest earned, and the redemption- all are exempt from Income Tax.

  • Applicability
    Anyone can open a PPF account; it has no relation with the employer. Individuals can open a PPF account at post offices, nationalised banks, and a majority of private banks. Some banks even permit banking users to open a PPF account online. Even a minor is eligible to open a PPF account along with a guardian.
  • Contribution
    It is fixed-income security where one has to make a minimum investment of Rs. 500 and a maximum investment of Rs. 1,50,000 in a year. Failing to deposit the minimum amount of Rs. 500 on the completion of the financial year leads to the account being designated as inactive. The account can be revived by paying a penalty of Rs. 50 for every financial year the account has been inactive. However, it is also not compulsory to contribute to PPF.
  • Returns
    Currently , PPF accounts offer an interest rate of 7.10 per cent. This return rate is for the quarter ending March 2021. The government sets the interest rate every quarter. Investment in PPF allows taxpayers to seek tax exemptions of up to Rs. 1,50,000 in a year.

 What is a Voluntary Provident Fund (VPF) Account?

An extension of the Employees’ Provident Fund (EPF), the Voluntary Provident Fund account is another investment option that helps a salaried individual to plan and save for their retirement. Employees working in registered companies can willingly contribute any percentage of their salary to their PF account.

How does a VPF account work?

The contribution for VPF does not include the compulsory deduction of 12 per cent of the basic salary. The employers have the right to withdraw funds from VPF accounts as and when required to meet the financial expenses. However, if an employee withdraws funds from a VPF before 5 years, the amount will be taxed.

  • Applicability
    No employer can force an employee to contribute to the VPF. It can be accessed only by salaried individuals and is similar to EPF. It allows an extension where an employee can contribute even more than the stated limit, but the employer’s contribution will remain the same. For VPF, one has to consult their organisation’s HR department to apply for the same.
  • Contribution
    For VPF, there is no maximum or minimum contribution. However, the contribution is restricted to 100 per cent of the salary plus the dearness allowance. Under section 80C of the Income-tax Act, 1961, VPF offers tax exemption up to Rs. 1.5 lakh in a financial year. PPF also gives this exemption. In the budget for 2021, there has been a proposal to reduce the deduction on return received on VPF.
  • Returns
    A VPF account’s interest is the same as an EPF account, which is 8.5 per cent for the fiscal year 2020-21.

VPF or PPF – Where to Invest?

We have compared the features of both the investment options, so that the investment decision becomes easier for you.

Features Public Provident Fund Voluntary Provident Fund
Nature Savings scheme Retirement cum Savings scheme
Eligibility Any citizen living in India Employed individuals
Investment duration 15 years Until one retires or resigns, whichever is earlier
Extension beyond maturity Can be extended in 5-year blocks No extension
Tax benefit As per section 80 C As per section 80 C
Withdrawal 15 years As and when required
Rate of interest Lower (currently 7.1 per cent) Higher (currently 8.5 per cent)
Loan 50 per cent after 6 years Partial withdrawals are allowed


 Both PPF and VPF have their own merits and demerits. If the savings are for retirement, then one should consider VPF. If there are long-term goals like children’s marriage or higher education and medical issues, and so on, then opt for PPF. In the case of a higher tax slab rate and higher contribution for tax-free gains, it is advisable to consider both alternatives at a time.

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Difference between Equity and Preference Shares

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Difference between equity and preference shares

Companies need capital to run their operations and finance their growth. They can raise capital either through debt, equity, or both. The capital structure of the business is the combination of debt and equity used to finance its operations and growth. Debt is money borrowed from another party, which needs to be returned. Typically, debt involves interest payments, at a pre-decided rate, by the borrowers to the lenders. 

Equity involves raising money by giving an ownership stake in the business. With equity, companies can raise money by issuing equity shares or preference shares. Equity shares do not involve any fixed payments to equity shareholders. Also, companies are not obligated to return the funds raised from equity shareholders. The return on their investment is linked to the performance of the company. If the company goes bankrupt, equity shareholders risk losing their entire investment. 

Preference shares have characteristics of both equity shares and debt. Let us understand the key differences between equity and preference shares.

Important differences between Equity and Preference Shares

Mandatory/Voluntary Status

Every company must issue equity shares. However, the issuance of preference shares is voluntary.

Dividend Payments

Companies distribute their profits to their shareholders through dividends. While both equity and preference shares may receive dividends, there is a key difference. Equity shares are not entitled to any dividends. Even if a company is making profits, it can choose not to pay any dividends to equity shares owners. Also, the rate and amount of equity dividends can fluctuate. On the other hand, preference shares offer a fixed dividend. Companies have to pay the dividends on preferred shares first before paying any dividends on equity shares.

Order in Claiming the Company’s Assets

Both equity and preference shareholders are owners of a company. If the company goes bankrupt, both stand to lose their capital. However, in such an event, preferred shareholders have an advantage. Companies must settle the claims of preference shareholders first before paying any money to equity shareholders.

Voting Rights

Equity shareholders have the right to vote on every resolution (key decisions of a company) related to the company. Examples of key decisions include mergers and acquisitions or the appointment of the board of directors. However, preference shareholders can vote only on matters relevant to preference shares. 

An example includes a decision related to liquidating the company. However, there is an exception to this rule. If a company has not paid any dividend to preferred shareholders for two or more years, they get voting rights for every resolution, similar to equity shareholders.

Variety of Types

Equity shares can either be ordinary equity shares or differential voting rights (DVR) shares. DVR shares are similar to ordinary shares, except they have fewer voting rights. Preference shares can be of many types, including:

  1. Convertible (can be converted into equity shares) vs non-convertible
  2. Cumulative (dividends get accumulated if not paid in any year) vs non-cumulative
  3. Participatory (provide additional dividends subject to the company meeting certain targets) vs non-participatory

Trading in Exchanges and Liquidity

Equity shares in India trade on exchanges such as the Bombay Stock Exchange or the National Stock Exchange. Any retail investor with a Demat account can purchase equity shares. This makes equity shares highly liquid. On the other hand, preference shares do not trade on exchanges. These shares trade in the Over the Counter (OTC) market, where shares trade informally. As a result, preference shares are relatively less liquid.

Redemption versus Share Repurchases

There is a specific type of preferred shares known as ‘Redeemable Preference Shares’. These shares are redeemed or repaid after a certain time period. Shareholders must sell the stock upon redemption.

In share buybacks, the company buys back its shares at the current market price. This is a popular way of returning cash to equity stockholders. However, share buybacks are entirely voluntary, and shareholders can choose not to sell their shares.

Rights to Shareholders

Equity shareholders have voting rights, and they also become owners of the business. While preference shares do not have voting rights, they have several other rights. Examples include right of the first offer, right of first refusal, tag along, drag along, etc.  Some of these rights may offer extra protection and benefits to preference shareholders.

Bonus Shares/Rights Issue

Companies may issue bonus shares to equity shareholders. Typically, companies issue bonus shares to reduce their share price and increase their investor base by improving their affordability. Equity shares can also participate in a rights issue when a company allows its existing shareholders to buy its shares at a lower price. Preference shares do not get bonus shares. Also, they do not get the rights to buy equity shares if the company is giving a rights issue.

Face Value

Most equity shares in India have a face value of INR 10. On the other hand, preference shares have a higher face value of INR 100 or INR 1,000. Note that the face value is different from the market value of the company. Due to their higher face value (e.g., INR 1,000), preference shares can be unaffordable to small-scale investors.

Type of Investors

As we have seen, preference shares get preference in payments of dividends and claims on assets in case of bankruptcy. These features make preference shares attractive to risk-averse investors. On the other hand, equity shares are more attractive to investors willing to take risks. 


Every public company listed on leading stock exchanges has issued equity shares. Preference shares are relatively rare. In the recent past, companies like Tata Capital and IL&FS have issued preference shares.

The differences between equity and preference shares are summarised below for your ready reference.

Characteristic Equity Shares Preference Shares
Issuance Mandatory Voluntary
Dividend payments Not fixed Fixed
Order in claim on assets Lower Higher
Voting rights On all key decisions Only on selective decisions
  • Ordinary equity shares
  • Differential Voting Rights (DVRs)
  • Convertible/Non-convertible
  • Cumulative/Non-cumulative
  • Participatory/Non-participatory
Trading on exchanges
  • Trade on exchanges like the BSE and the NSE
  • Highly liquid
  • Trade in the OTC market
  • Less liquid
Buyback options for the company Possible under share buybacks Possible for redeemable preference shares
Rights for shareholders Voting rights No voting rights, but several other rights
Face value INR 10 per share in most cases INR 100 or INR 1,000 per share
Types of investors Attractive to investors willing to take risks Attractive to risk-averse investors


Both equity and preference shares have their own advantages and disadvantages. For first-time investors, equity shares are a good way to get started. These shares can be purchased with relative ease and have a liquid market. Risk-averse investors can invest in preference shares through the OTC market.

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NPS or PPF? Where should you invest in?

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National Pension Scheme(NPS) or Public Provident Fund(PPF)? Where should you invest in?

When it comes to investment avenues, there are too many to count. If you look out into the market to find avenues for saving your hard-earned money, you would be spoilt for choice. There is a range of market-linked and fixed-income savings avenues that help you save, and also plan your income tax returns. Two such avenues that are quite popular with investors include the National Pension Scheme (NPS) and the Public Provident Fund (PPF). Which among these, do you think, is the best?

To know which avenue is better, you first need to understand these avenues in detail. So, let’s analyse the two – 

Understanding NPS – What is National Pension System?

The National Pension System (NPS) scheme is a retirement-oriented saving scheme. The Government launched the scheme to help investors accumulate a retirement corpus and receive pensions after maturity. The Government-sponsored pension scheme invests your contributions into market-linked avenues, helping you to earn inflation-adjusted returns.

Understanding PPF – What is Public Provident Fund?

The PPF scheme is a fixed-income saving scheme. The scheme runs for 15 years, and the tenure can be extended in blocks of 5 years. You are required to deposit a minimum amount into the PPF account every year, and your investment would earn a fixed rate of return, determined by the Government.

NPS vs PPF – Comparison between the two

Here are some factors which differentiate these schemes –

  • Eligibility 

Resident individuals and NRIs aged 18 to 60 years can invest in the NPS scheme. The PPF scheme, on the other hand, is open for resident Indians only. There is no age limit for PPF investments, and an account could be opened in the name of a minor too.

  • Market exposure 

NPS is a market-linked scheme, like mutual funds, where the returns are not guaranteed. Your investments are exposed to the market through different funds (equity, debt, etc.), which are managed by a fund manager. Returns depend on the performance of the underlying assets of the fund. 

The PPF scheme, on the other hand, does not expose your investments to the market. The returns are fixed and do not depend on market performance. The current rate of interest under the PPF scheme, till 31st March 2021, is 7.1% per annum. 

  • Tenure

The NPS scheme runs till you reach 60 years of age. You can defer the vesting age to 70 years too if you want. The PPF scheme, on the other hand, runs for 15 years, which can be further extended in blocks of 5 years, for as long as you want.

  • Investment amount

The minimum amount to open a Tier I NPS Account is INR 500. Thereafter, the minimum amount of a contribution is INR 500, and a minimum deposit of INR 1000 is needed in a year. For a Tier II account, you need a minimum amount of INR1000. Thereafter, INR250 should be deposited every year. There’s no limit to the maximum deposit that you can make.

You can open a PPF Account with INR 100 only. However, a minimum deposit of INR 500 is required in a year, and the maximum deposit limit is INR 1.5 lakh per annum.

  • Benefit on maturity

On maturity, you can withdraw up to 60% of the corpus in a lump sum. The remaining corpus, however, would be used to pay you pension. You can choose from different annuity options under the scheme. 

However, in the case of PPF, you can withdraw the entire amount in a lump sum when the scheme matures.

  • Premature withdrawals and exit facility

NPS has a lock-in period of three years and allows premature withdrawals after that. You can withdraw up to 25% of the corpus for specific needs, like funding higher education, buying a house, etc. If you exit from the scheme before maturity, you would be allowed to withdraw only 20% of the corpus in a lump sum. The remaining 80% would be used to pay annuities.

In the case of PPF, there is a lock-in period of 6 years. Partial withdrawals are allowed from the seventh year of investment. However, you can avail of loans between the 3rd and 6th year. You can avail of a loan of up to 25% of the PPF account balance at the end of the 2nd year, or at the end of the previous year. You can exit from the scheme and close your account only in specific instances like medical treatments or higher education.

  • Income tax benefits

The NPS account allows you to save tax in multiple ways. The amount invested is allowed as a deduction under Section 80CCD (1). The limit is INR 1.5 lakhs, including the deductions under Section 80C. You can claim an additional deduction of up to INR 50,000 under Section 80CCD, (1B) by investing in the NPS scheme. Moreover, if your employer also contributes to the NPS scheme on your behalf, an additional deduction is available under Section 80CCD (2). Partial withdrawals are tax-free, and so is the lump sum amount that you withdraw on maturity. The annuity payments, however, would be taxable in your hands.

PPF is an Exempt -Exempt-Exempt scheme. This means that it allows tax benefits on investment, interest earned as well as on maturity proceeds. The investment qualifies as a deduction under Section 80C up to INR 1.5 lakhs. The interest that you earn and the amount that you receive on maturity also attract income tax exemption and are completely tax-free in your hands.

NPS Vs PPF: Which is a Better Option to Build a Retirement Corpus?

Both the schemes have their comparative advantages over each other. Have a look –

6 reasons for investing in NPS

  1. Market-linked returns from investments management by expert Pension Fund Managers.
  2. Additional tax benefits under Section 80CCD (1B).
  3. Lifelong income in the form of annuities.
  4. Short lock-in period and premature withdrawal facility.
  5. Choice of investment funds and investment strategy.
  6. Earmarked retirement corpus.

6 reasons for investing in PPF

  1. Fixed returns for risk-averse investors.
  2. Tax benefit on investment, returns, and maturity benefit.
  3. A long-run debt option with disciplined investing.
  4. Small investment amount needed.
  5. Ease of account opening through banks and post-offices.
  6. Availability of loans against the deposit.

NPS vs PPF – Where should you invest in?

You should carefully assess your investment needs, goals, time horizon, and risk appetite, and then make a choice. If you want to have a dedicated retirement fund accumulation and don’t mind market risks, NPS would be a suitable investment avenue. However, for fixed returns and for saving for other goals, you can pick PPF. You can also invest in both NPS and PPF for a diversified portfolio and for meeting the different investment needs.

So, understand what these avenues are all about, their features, and their differences. Then make a choice depending on your needs and strategy. 

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Understand the rules for investing in Equity


Getting equity exposure is about following the rules for holding the portfolio to see index-plus returns( high returns). Take a considerate decision on investing in Equity and understand that equities are the best way to create wealth.

Rules for investing in Equity:

  • Have the patience to see consistent returns. If you buy equity with a holding period of 10 years, you’ll be able to see interesting returns(positive returns) in the 7th year of your investing. This happens because the fluctuation in the returns will start reducing and then on average, you’ll see returns that will above 14-15% per year. Thus, have the patience to have investments in the long term.
  • You’ll be at risk if you choose a poor product. If you opt for a poor product with a long holding period and later you find yourself that you did worse than the average product in the market. So, be careful while choosing a product and be very particular about your risk bearing capability.
  • What if you find out yourself frozen in choosing Equity products. Firstly, understand the Equities completely.

There are 3 ways to buy equity:

  1. Direct stock
  2. Market-linked products(ULIP’s)
  3. Mutual Funds.

You can invest in Equity Funds through Finity. They are professionally managed by expert professionals who spend quality time researching the performance of these funds.

The benefits include:

  1. You can invest in Equity Mutual Funds that have provided returns >15% for the past 5 years.
  2. They offer you an opportunity to redeem your investments at any time (Except for Equity Linked Saving Schemes-‘ELSS’ which has a lock-in period of 3 years).
  3. Equity mutual fund schemes avail you a facility to invest small sums at regular intervals through systematic investment plans (SIP).
  • Do not invest in any product that locks you in a particular company or asset manager. Always opt for the product where the “Exit” is possible with an easy and cheap procedure. And also look for the “portability” where you should be able to move your money more easily to a better fund investment with minimum cost.
  • If you want to manage your funds by yourself, start learning about the products through online platforms and try to look in the records to know how the funds are performing over the years, and then invest. Always remember, “Not investing in Equity” is not your option.

Thus, put your money to work for the long term. If you’re a good financial planner then you would have already planned for your Emergency funds and medical cover. So, you have taken away the need for keeping money in liquid and you can risk investing in Equity Mutual Funds.


Here, you have the best platform -“Finity” to invest in Equity Funds and create wealth for the long term. Use Finity to discover, track and invest in Equity Funds.

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Understanding Stock Index

Stock Index is the “performance measurement” section of the stock market. Among the stocks listed in the stock exchange, some similar stock is grouped to form an “index”. And this grouping is done on the basis of certain characteristics like the size of the company, sector or the industry to which it belongs to.

The value of an index is calculated by using the value of the grouped stock ( weighted index method). Thus, any changes in the price of the stock will lead to a change in the index prices. The index is “an indicator” of price change in the stock market which will help “traders” to track the market and calculate the returns on a specific instrument.

When will the Index raise?

In the stock market, prices of some items in an index will go up and down- these ups and downs in the prices will get canceled, whereas price rise on an average is more than the price fall, then the index will rise and we say inflation is rising and vice-versa.
For example, you may buy something in the market which may not reflect the trend of inflation. You go buy milk and find that the price has gone up. But, the index may be down because the price fall in fuel and other things have canceled out the price rise in the milk.

Most of the trading of Indian stock takes place in BSE (Bombay Stock Exchange) and the National Stock Exchange (NSE). In India, the BSE Sensex and NSE Nifty are considered as benchmark indices to evaluate the overall performance of the market.

What is Sensex?

For a better understanding of what is Sensex, let’s take an example of the Indian hockey team. If someone says “Indian hockey is in great form and expected to win against England”. Does it mean that every Indian can perform better than England players?
No, what actually means is that Indian players who are representing our country are performing well and there are expected to win over the other country.
Now taking this as a basis, there are the top best 30 countries that are listed in BSE (Bombay Stock Exchange) that are representing the country’s economy. The index is formed taking the stock prices of these 30 companies on a pre-defined basis and it is called “SENSitive indEX”(SENSEX) which means that they are so sensitive to price change. When we say Sensex went up, it means that the prices of these 30 companies are gone up rather than fall and vice versa.
The same happens with Nifty. Nifty is a market indicator of NSE. It has a collection of 50 stocks, but presently it has 51 listed in.

What is Market Capitalization?

Now, let’s learn about market capitalization. Market capitalization (market cap) is calculated by multiplying the outstanding shares of the company to its current market price per share. Companies that are traded in the stock market are grouped into different categories. For example:

     Index Companies
Large-cap index This index will keep track of the prices of large-cap companies.
Mid-cap index The index tracks only the representatives of mid-cap companies.
Small-cap index This index will track the firms which are even smaller than the mid-cap companies.
Bankex index Tracks the stocks which are traded in the banking sector.
PSU index Tracks the prices of PSU(Public Sector Undertakings).
Technology index It will map the prices of tech-related firms.
Infra index Tracks the prices of infrastructure-related stocks.
FMCG index Tracks the prices of Fast Moving Consumer Goods (FMCG).

Why stock prices go up?

Stock prices go up in the long run because as you know that the firms which are listed in the stock exchange trade their goods and services to make good profits and those companies will see good growth. Thus, rising prices reflect the growth and performance of the company.     

Are stocks are the best route to get inflation-adjusted returns?

When inflation rises, the input cost of the firms will also rise. But, the company will not bear the entire cost. Instead,  this cost will be passed on to the customers in the form of prices. So rise in the input cost will not affect the companies profit. Thus, we can say that stock gets protection from the effect of input price inflation.

Is investing in stock is complex?

Before investing in stock, you have various factors to consider such as size, sector, structure, etc.

All these factors are compared with the macroeconomic conditions in order to assess the capability of fund performance. So, there are speculators who will do this. As an investor, your only job is to invest your hard-earned money into the stocks and you have speculators, whose job is to track the market moves.

Thus, investing in stocks through Mutual funds is more advisable. You can get a wide range of benefits by investing in mutual funds.

Finity is one such platform where you can get access to a variety of funds in just one app.“Finity”, which helps you select the right Mutual Fund according to your investment horizon, risk appetite, and financial necessities.


Start your investments with Finity- the best platform for investments.

Build your wealth through Finity.

Best ways to invest your money(Part 3)

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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)


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:


Download links: Download android app:

Download ios app:


Check out our: Website:

Facebook Page:


Instagram handle:





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!

Best ways to invest your money(Part 2)

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Published on Feb 27, 2019

n Part 1 of the best ways to invest your money ( 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)


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:


Download links: Download android app:

Download ios app:


Check out our: Website:

Facebook Page:


Instagram handle:


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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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…


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.

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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!

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.




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.


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.


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.


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.


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


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


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.


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


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.


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.