How loans become costly? There are two main rates that are affected when RBI decides to increase or decrease the rates. Repo rate : The rate at which banks borrow from RBI Reverse Repo Rate: The rate at which banks deposit with RBI. An increase in these rates will directly be, reflected on those who… Read More »
Avoid taking dividends if you do not want a regular income. Converting them from dividend to growth will be considered as redemption and hence capital gains will be applicable. Therefore, from the tax planning point of view, make sure you have completed one year from the date of purchase to classify your investments as long-term… Read More »
Before you move onto investing in various financial instruments and blindly following your financial advisor, it is best if you could make your own personal checklist. First, categorize your investments in to long term goals and short term goals. Doing so, you will get an idea as to what are your needs and wants. Accordingly,… Read More »
In a bid to implement changes in the Government securities (G-Secs), the government panel, headed by Shyamala Gopinath, deputy governor, Reserve Bank of India, are holding talks on the issue of whether, all instruments falling under National Small Savings Scheme (NSSS), barring post office savings account deposits, should be linked to the market in a… Read More »
In order to protect your investments, it is best advised for you to not save into any other investments especially in the real estate, if you are into a home loan repayment. A prudent investor is the one who invest into realty only after he has become debt-free. The reason is because, in this crucial… Read More »
Before you start investing in a financial product, it is very important for you to consider the following points: Inflation rate : Considering the current inflation rate which is hovering above 9%, you should consider the rate of return of your financial asset to be more than 9%. For example, what you could buy for… Read More »
As it is always emphasized, you need to concentrate on various aspects like post tax returns and inflation rates etc, and not consider only the returns aspect of investing in a financial product. Apart from having a debt asset and an equity asset, consider having multi-cap, large-cap, mid-cap and equity-linked saving schemes along with most… Read More »
It is very important and highly recommended for you to take a life insurance cover, if you are the highest earning member in the family. Mr. Santhosh, 43, has a home loan of Rs.15 lakh for a tenure of about 20 years. He has a 11 year old son and a wife who is not… Read More »
Although your education loan, for which you have signed up for seems to fulfill all the criteria of covering your expenses while at home, things may not seem that easy once you are abroad. Countries like US, Canada, UK etc, Under graduate students are required to stay compulsorily on-campus hostels, where as the Post graduate… Read More »
Before getting excited about the returns you would get by investing in a FD or any other bond, factor in aspects like inflation and post tax returns. The Real Return: Most often, it is observed that, people consider only the percentage of returns that they will get after an investment period of 10 years. But… Read More »