Should You Invest In A Balanced Fund?

A mutual fund uses invested money of various individuals and invests them into various pre-set allocations. These allocations are equity, debt or any other asset class as prescribed by the fund. A balanced fund is a type of mutual fund which invests a portion of the fund into equities and the rest into debt instruments. The equity debt allocation is often 65:35 or more depending upon the fund’s mandate.

balance-mutual-funds

This fund is an excellent choice for newcomers or risk-averse investors. Here are a few reasons.

One, this fund by design has a safety mechanism. While the major allocation of the fund may be in the equities, the 35% allocation into debt instruments acts as a safety valve during volatile market periods. Even if the equities generate poor returns at the time, the debt instruments ensure the invested money does not go to waste and returns are generated on a consistent basis.

Two, the debt allocation ensures stability during volatile market periods and the equity allocation during bull runs generate excellent returns. Since the fund’s major allocation is into equities, an investor has a good chance to see her or his investment into the fund deliver quite the returns.

Three, the fund’s major allocation into equities may cause apprehension into one or two investors who may feel the market volatility will deliver poor returns. However, like all mutual funds, a balanced fund comes with the expertise of a fund manager. He or she will decide whether to invest into mid-cap or large-cap funds, how much to invest, and when to invest. The invested money is in safe hands.

Four, mutual funds that invest at least 65% into equities qualify as equity funds. This means any capital gains after one year of holding are tax exempt. Therefore, fund managers always keep the 65:35 allocation ratio intact. If an investor held two different funds—equity and debt, a short-term capital gains tax would be levied on the debt fund for any holding less than three years.

A balanced fund was designed keeping the mix of capital appreciation and safety from market volatility in mind. It is recommended for newcomers to invest in them.

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Basics of A Savings Account

Now a days, keeping hard-earned cash in a gunny sack is not the smartest or the safest way to manage your finances. Today, we safely store our money in banks, which has enabled us to track our transactions, balance, etc. So, when an person with some money approaches a bank and requests for a secure place to store that money, then the bank offers the individual its most basic product, a savings bank account.

savings account

Below-mentioned are the few different types of savings account available today:

  • Regular Savings Account: These accounts basically don’t see regular deposits nor do they see regular withdrawals. These facilitate the common form of virtual savings that are not touched, unless absolutely necessary.
  • Salary based savings account: These accounts are generally opened by banks on the request of large companies. Also, banks offer companies preferential rates for these accounts. Well, it should be noted that most of the salary accounts do not have a minimum balance requirement, but once your salary stops being credited for three consecutive months, then these accounts are changed into regular savings account.
  • Savings account for senior citizens: These accounts are specially created for senior citizens. Savings accounts for senior citizens work in the same way as regular savings account, but they offer a higher rate of interest as compared to other savings accounts and exclusive banking advantages.
  • How to apply for savings account?

In order to apply for a savings bank account in India, applicants should meet the following eligibility criteria:

  • A savings account can be opened by Indian residents, non-Indian residents, and foreign nationals.
  • Usually, banks allows only those to open an account who are 18+. Although, a savings bank account can be opened for minors by their guardian/parents.
  • Unlike other financial or banking products, there is almost no restriction on who can open a savings account.

Apart from this, here is the list of documents that a customer must submit along with his/her application in order to open a savings account:

  • Age and Identity Proof
  • Address proof
  • Photographs
  • Income proof
  • Senior Citizen Card
  • Step-by-step guide on how to open a savings account:

If you want to open a savings account, you need to follow these steps:

  • First of all, do a proper research of different banks and their interest rates. Then find the one that matches your specific requirements, and the type of bank account that you wish to open.
  • Take a copy of your photograph, identity proof, income/employment proof, and age proof and then head to the nearest branch of the bank.
  • Once at the bank, you need to fill an account opening form.
  • Fill out the form as required and submit it along with the copies of essential documents.
  • Thereafter, your application will be submitted for processing and your account will be opened.

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What you need to know before availing a personal loan?

Sometimes expenses come uninvited. Children’s marriage or educational expenses, savings won’t get you through all the costs. It becomes vital for you to avail some sort of assistance from bank, and what better than a personal loan.

personal loan

A personal loan, also referred to as unsecured loan, is a financial aid to meet your current expenses. It is the most convenient way to borrow money, since you don’t have to keep any security against it. It is usually convenient for borrowers looking for quick and easy loans with the minimum documentation and paperwork. You also have the flexibility to use the funds as per your convenience without being monitored for the actual end usage.

Most banks offer instant loans without much hassle but there are always hidden terms and conditions. Read on to know what all things you need to keep in check before availing a personal loan.

  • Since it is an unsecured loan, the interest rate is as high as 11%. Know your budget and keep a track of EMI’s you will be required to pay. The amount of loan sanctioned will depend on your repayment capacity.
  • You can only avail a personal loan for emergency expenses such as medical or educational costs. If it is for leisure like a vacation, banks won’t approve of such loan.
  • The amount of personal loan you avail should not be more than 10 % of your salary.
  • Different banks have different rates of interest which is why it is important to research well before you apply for personal loan.
  • Keep a check on your credit score. A bad credit score may lead to rejection of your loan.
  • Do not take multiple personal loans as they will create a negative impact on your credit history.
  • Several financial institutions tend to make lucrative claims, do not fall in such traps.
  • You can use online personal loan calculators, it helps you to accurately calculate the EMI.

Some Lesser Known Benefits of Life Insurance

Most of the people view life insurance policies only as a tax saving instrument. People are unaware of the multitude of benefits offered by life insurance plans. Most of you must be aware that the main purpose of buying a life insurance is to ensure the financial security of your loved ones. Being a responsible adult, it is your duty to ensure the well-being of you family even in your absence. Life insurance provides you with many advantages that are unique to it and cannot be found in other investment avenues. Here are some of the unique and lesser known benefits of life insurance:-

life-insurance plans

  1. Return on investment: – Life insurance policies provide a huge coverage for economical premiums. Life insurance plans such as term insurance is very easy on the pocket, but provide a massive death benefits to your family. Life Insurance plans ensure that your dependents can lead a decent life economically, despite your death.
  2. Loan options: – In case you are short of money due to a financial emergency, you can even secure a loan against your insurance policy. The loan can be obtained for a percentage of the cash value of the policy. This way, you need not pledge your precious assets in order to secure a loan.
  3. Life stage planning: – Life insurance policies are a great investment tool for life stage planning. It assists you to plan for your different life stage needs. Apart from providing death benefits, life insurance also acts as a long term investment. The benefits from a life insurance policy can help you meet the various goals of life such as education of the children, retirement fund, marriage of children etc.
  4. Protected insurability: – A life insurance policy provides you with a permanent coverage even if your health and other situations change. Buying an insurance policy at a young age, locks in the insurability.
  5. Cash value:- Once your life insurance policy accumulates, the cash value of the policy becomes accessible for withdrawal for family and business opportunities, education funding, retirement income and other such financial emergencies.

With so many such unique benefits, a life insurance policy can be a worthwhile addition to your balance sheet and the foundation for your financial security. Along with the lesser know benefits also know  some general benefits of life insurance here:

 

Latest offers on Axis bank cards

Technology has revolutionized the way we deal with money. The days of using cash for purchases are long gone. The concept of plastic money is becoming more popular with each passing day. It all started with the introduction of credit cards that could be used to make cashless purchases in credit. Later came the revolutionary ATM cards or debit cards that can be used to withdraw cash and pay for purchases both online as well as offline.

axis-bank-credit-card-application-status

Axis bank offers its customers numerous benefits on using the various cards provided by the bank. The banks provides four basic types of cards such as credit cards, debit cards, commercial cards and prepaid cards. The user of any of these cards is eligible for offers such as special discounts, vouchers, cashbacks etc. on several reputed brands. One can choose the card offers based on different categories such as travel offers, online offers, lifestyle offers, EMI offers etc. Some of the best Axis bank cards offers for the season are as follows:-

  1. Shoppers Stop :-
  • Flat 15% discount on Minimum purchase value of Rs. 1,800.
  • Promo code – AXIS16.
  • Valid till 30thJune 2016.
  1. Thomas cook :-
  • 225 discount on one-way & Rs. 500 return domestic flight tickets
  • 450 discount on one-way & Rs. 1,000 return international flight tickets
  • 5% discount up to a maximum discount of Rs. 2,000 discount on domestic holidays
  • 5% discount up to a maximum discount of Rs. 3,000 discount on personalized international holidays
  • 10% discount up to a maximum discount of Rs. 2,000 on domestic hotels
  • 10% discount up to a maximum discount of Rs. 3,000 on international hotels
  • Offer valid till 30th June 2016.
  1. Enrich:-
  • Valid on Axis bank MasterCard.
  • Get 15% discount on a minimum billing of Rs. 750 at Enrich Salons.
  • Offer valid till 30th June 2016.
  1. Myntra:-
  • 25% off on a minimum purchase value of Rs. 1999
  • Offer valid till 30th June 2016.
  1. Next electronic store:-
  • Axis Bank MasterCard offer.
  • Get additional 5% off on a minimum spend of Rs. 20,000 at Next stores (discount cap of Rs. 2,000).

Offer valid till 31st July 2016.