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September 24, 2020

Daley Ellis

ELSS vs ULIP

Sep 8, 2020

ELSS vs ULIP, Almost all investors who are contemplating an investment in market-linked securities must have thought about this puzzle at least once. And to search for the right answer they might have to go through volumes of literature available on financial websites, which might confuse people with their conflicting views. This article aims to provide detailed information on the difference between ELSS and ULIP. Let’s begin by understanding what ELSS and ULIP is.

What is ELSS?

ELSS mutual funds, also known as tax-saving mutual funds,are investment securities that offer dual benefits of capital generation and tax-saving benefits. These funds invest a majority of their corpus in equity and equity-related instruments.

What is ULIP?

Unit-Linked Insurance Plan (ULIP) is a combination of investment and insurance. Under the ULIP scheme, a part of your premium goes towards life cover insurance and the rest of it is assigned to a common pool of money, called a fund, similar to a mutual fund, which invests in equity or debt or a combination of both.

ULIP vs ELSS

The following table summaries ulip and elss difference:

ULIP ELSS
Objective These funds combine the elements of insurance and investment with tax-saving attributes ELSS funds are professionally managed funds that offer dual benefits of tax saving and wealth creation
Returns Returns on these investments may vary depending upon the combination of asset classes (equity, debt and hybrid) chosen by the investor Mutual fund investments are subject to market risk. However, an investor can expect returns between 12-14% in the long run
Lock-in period 5 years 3 years
Tax computation The invested amount offers tax deduction of up to Rs1.5 lakh u/s 80C. However, the gains are taxed LTCG (long-term capital gains) is taxed @10% over and above Rs1 lakh
Liquidity Low – funds are available after the lock-in period of 5 years High – funds are available after a lock-in period of 3 years
Charges applicable ULIPs have multiple complex charges such as premium allocation charges, policy administration charges, mortality charges, etc. Fund management charges and exit load are specified clearly and are easy to comprehend
Regulator ULIP plans are regulated by the Insurance Regulatory and Development Authority (IRDA) ELSS mutual funds are regulated by the Securities and Exchange Board of India (SEBI)
Loyalty additions Loyalty addition is offered under the ULIP policy for staying invested through the tenure. Loyalty addition bonus is given as per the T&Cs of the policy No such loyalty additions are applicable
Transparency The fund manager manages ULIP plans ELSS mutual funds offer full transparency as the investor can check the funds regularly
Risk ULIP plans have a certain degree of risk as the returns are dependent upon the performance of the fund. However, ULIP plans offer guaranteed life cover ELSS funds have a certain degree of risk as the returns are dependent upon the performance of the fund

Whether you decide to choose between ELSS or ULIP should entirely depend on your investment portfolio. Compare the two and make the right decision for your portfolio. Happy investing!

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Creating the perfect trading plan for mid-2020

Aug 18, 2020

The world has gone through a pretty bad phase in 2020. From the last month of 2019, China was observing disasters which peaked in 2020. Within a few months, the world caught up and look at the present situation. For the past few months, life has come to a halt. No transactions are taking place, people have been living in isolation, the mask has become a new part of daily life and the economy has crashed. Although countries like New Zealand have recovered, a long way awaits for most nations. It is safe to say that the first half of 2020 has been destroyed. Global prices surged an all-time low, redundancy was imposed in reputed agencies to tackle bad business operations and the Forex market is no exception.

The United States observed a significant rise in corona cases and it affected the price trend as well. As major currency pairs are paired with Dollar, major shifts occurred in the market. Volatility displayed erratic movement and investors lost funds in a few months.  Professionals are at a loss to decide what to do in this unprecedented contexts.  Among these adverse situations, the second half of 2020 is approaching as we speak. Forget what happened in the past and look towards the new goal. This post will describe some effective ways investors can come up with smart solutions to tackle future trends. As this year surprised the world, expect regular strategies may not work expectedly. Special schedules are needed to cope with changing times.

Stop getting confused

While creating the trading plan, the novice trader often become confused with their state. They don’t know the process by which they can take the trades with confidence. In order to survive as a trader, you should know how the option market really works. Stop chasing trades blindly as it will confuse you. Stick to the trading plan to become a great trader. Feel free to get professional resources or check here to learn from Saxo.

Don’t invest further

Many geniuses may persuade you to invest capital and take advantage of this existing phenomena. Sounds enticing, right? The volatilities are sporadic and it is a wonderful chance to make some big money. Many investors will feel compelled to advance careers by doing so but this is not the right way to go about it. Investing a single cent in the current condition proves those people lack common sense. The sector is already in a big muddle and you should withdraw funds regularly to stay safe if trading takes place. Forget the stop-loss for the time being and be skeptical. The future is still uncertain so don’t endanger the balance anymore.

Ditch the old plans

Prior techniques may not work successfully. We are not implying to develop a brand new formula but focusing on possibilities. Already, many expected events had occurred and been triggered by the latest global pandemic. US and China are in a war against each other and this has made the global economy more volatile. Before you decide to trade, ensure a backup plan is in motion to protect the fund in an emergency. Experts are not trading as they are uncertain of future volatilities. This is common when huge funds are managed alongside personal accounts. If leverage were used, stop for now. Observe the industry before taking a crucial step. Investors need to be more alert to make a profit.

Trade as little as possible

If necessary, take a long break from trading. Motivation is hopeful but excessive inspiration can distract from impending dangers. There are reports of second wave so cautious at all times. There is no certainty when this nightmare will end so proceed with precautions. As every order exposes balance to risks, it is highly advised to trade when it is deemed essential. Never imitate full-time traders as it is their profession. If you are a part-timer, focus on your primary source of income for the time being. Let this market stabilize and wait for the right opportunity.

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TAX SAVING INVESTMENT OPTIONS FOR SALARIED

May 16, 2020

Salaried individuals often end up paying too much tax. Astonishingly, a lot of these investors pay more than they are liable to since they are unaware of the Income Tax Act and various tax saving investment options available to them. Let’s look at some of the popular tax-saving investments offered to salaried individuals:

National Pension Scheme (NPS)

It is a retirement-focused scheme which matures when you turn 60 years old. Among various options under NPS, an investor can invest a maximum of up to 75% in equity funds and the balance in debt funds.

Tax saving mutual funds – ELSS

Equity Linked Saving Schemes, also known as ELSS funds, is the only tax saver mutual funds with the lock-in period of just 3 years. A lot of individuals invest in ELSS as they offer dual benefits of capital appreciation and tax deductions. You can save up to Rs.46,800 each year by investing in ELSS mutual funds.

Public Provident Fund (PPF)

Backed by the Government of India, PPF offers safety and attractive returns to its investors that are also fully exempted from tax. The scheme aims to muster small savings by providing an investment which is endowed with reasonable returns combined with income tax benefits to individuals.

Tax saving bank fixed deposit (FD)

Tax saving FDs are offered by banks and carry a fixed interest rate. The investment tenure of an FD is 5 years and it does not permit any partial withdrawal before the lock-in period ends.

Planning taxes isn’t rocket science. However, individuals should try and not take it lightly, either. After all, it is your hard-earned money which is withheld, an amount that could have been used for a better and more significant purpose. What’s more, if you succeed to invest your money wisely, you might be able to reap some profits from it too. Invest if possible, it could be better than paying taxes. Happy investing!

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What Kinds of Loans Are There?

Jan 11, 2020

It can generally go without saying that money is an important part of life. Without it, it becomes difficult to pay for the important things, such as various bills. In some cases, not having enough money means that a business needs to shut down, and that’s something that no business owner wants to have happen. With that being said, it is important for you to know that if you are struggling with money, there are options. For instance, you can consider taking out a loan to try and overcome the financial struggle that you are facing. First things first, you need to know about the different types of loans that are available.

When you choose to work with a reliable loan lender, such as Universal Finance in Australia, you can rest assured knowing that you will be able to get the money that you need. However, knowing the difference between the types of loans that there are is important, as it will help you choose the right one for your situation.

Business Loans

Running a business is expensive. From the cost of renting out a place for your business to paying all of the employees who are working for you, there are many reasons why you might find yourself in a financial problem. Thankfully, there are a few different kinds of business loans that you can choose from, depending on your situation. For instance, some loans are meant specifically for starting up a business, since this is often one of the most expensive parts of beginning your business. Other loans are short-term loans that will help you get over the problem at hand. There are also commercial loans, which function similarly to a general business loan.

Personal Loans

Living life can be incredibly expensive at times, and this can leave you struggling for enough money to make important purchases and pay off bills. If you find yourself in this type of situation, you might want to consider taking out a personal loan. There are several kinds of loans to choose from, depending on your needs. There are home loans and several types of mortgages you can take out. There are also vehicle financing options, if you find yourself needing a vehicle. There are also personal loans that can be used for whatever you need at the time.

Special Occasion Loans

There are also some types of loans that are meant for specific situations and occasions. For example, there are loans that are meant for people who have a bad credit history. This is important, as many banks won’t lend to people who have a poor credit score. Other types of loans, such as a low-doc loan, are designed to be as quick and efficient as possible, taking the immense amount of paperwork out of the equation. These are just some of the different types of loans that you will want to look for when you are searching for a good lender.

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Understanding the Differences between Debt Resolution and Debt Management and How They Affect Your Credit

Jan 8, 2020

If you are facing a growing mountain of debt and are unsure how you can possibly climb out from under it, it may be time to talk to a debt specialist who can help you understand your options. Debt management plans and debt resolution are two common choices that can help you manage payments and eliminate your debt. They function differently, however, so it is important to understand the basics of each. Keep reading to learn more.

Debt Management

If you can afford a high monthly payment and meet certain criteria, a debt management plan may be a good option for you. It consolidates your high-interest debts into a single payment, which is made to a third-party management company such as Rescue One Financial. During this type of program, you will be responsible for the full balances of any debts and your credit will reflect that a third party is being paid.

Debt Resolution

In cases where your debt has spiraled out of control and you aren’t able to even pay the interest that is accruing, you may want to look at other debt options. Debt resolution involves negotiating with creditors for lower balances. Those are then consolidated into a single lower payment which is made to a third party lender. While there are no guarantees, many people end up paying about 50 to 60 percent of their original balances through a resolution program.

Debt and Your Credit

There are no guarantees that a debt repayment plan will improve your credit score. Lenders generally look at long-term history, so the fact that you fell behind in the first place will remain visible to them for several years. However, it can stop collections and missed payments from appearing going forward. Take time to understand the factors that affect your credit score and work toward improving it if you have concerns.

No matter how you got into debt or how much you owe, know that there are ways out. Take steps toward repaying your balances and reclaiming your financial future today. Then, work to achieve healthy spending habits and a solid credit score to make borrowing easier in the future.

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Property – Just How Can Hard Money Lenders Close Loans So Rapidly?

Oct 17, 2019

Whenever you consider this, the reply is easy. The opportunity to process loan requests with your great efficiency while using the a tough money loan provider comes lower to 3 primary reasons: One, they understand the lending area. Two, the business is structured differently than institutional lenders. Three, the underwriting concepts utilized by direct capital lenders will vary. A 4th might be less regulation, both internal and exterior. But, this really is less ubiquitous and determined by the position of the loans made.

Today, many private lenders concentrate on city, condition, and regional lending limitations. This enables them the opportunity to be aware of markets perfectly. An intensive knowledge of foreclosures, new construction, and market trends supplies a comprehensive look at the lending area. With this particular understanding, generally they’ll know quickly when the loan is one thing they are curious about, something they’ll take a look at, or if it’s just from their scope currently.

Banks, insurance provider portfolios, along with other institutional lenders have intricate corporate structures composed of numerous tiers. Included in this are but aren’t restricted to loan originators, underwriters, appraisers, auditors, and loan committees. It’s easily possible which more than ten individuals will be scrutinizing different factors of every application. There might be some efficiencies which come from specialization in every area, but to obtain everybody coordinated and as much as speed around the idiosyncrasies of every loan needs time to work. For a lot of hard money lenders this and not the situation because offices are small. The individual you speak with concerning the loan request can also be oftentimes the one who has got the final ask scattering the funds. The neighborhood understanding coupled with 1 to 3 people evaluating each loan’s conditions drastically cuts down on the time for you to financing commitment.

Finally, underwriting standards at institutional lenders and difficult money lenders are vastly different, in term of the items the loan provider examines and also the priory from the metric. Banks are worried with debt service coverage ratios, internet operating earnings, ltv ratios, previous tax statements, previous earnings statement, vacancy rates, etc. Each private capital loan provider differs, but basically they base loan decisions on the small group of measures: ltv, current property value, and financial stability from the customer. Using these simple metrics, coupled with local market trends, borrowers could be assessed and delivered appropriate term sheets many occasions quicker than likely to traditional lending sources.

Whenever you combine market understanding, business structure, and lending standard, hard money lenders can get funds to property investors once they encounter time sensitive deals and frequently create lasting relationships with lenders. Due to the lenders covered insight to the information on individual markets, theses loans may also be tailored to every situation because it arises, which, inside a best situation scenario, results in a win-win situation for everyone concerned.

Need money to deal with a financial problem? If you don’t have the time to wait for a traditional bank loan, you consider contacting private loan lenders Singapore for an instant advance, which must be repaid in a short time

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Get the Best Credit Card Rebates offered by Maybank2u

Oct 15, 2019

If you were searching for best credit card rebate, you should rest assured to make the most of the services offered by Maybank2u. They would cater to your specific needs and requirements with all kinds of credit card rebates. You would be spoilt for choices.

The Maybank Platinum Visa Card would offer you several kinds of rebates to meet your local spend needs. The credit card would offer you a decent rebate on local spends and cash rebate on overseas spend. They would also offer you with lower interest rates that would not burn a considerable hole in your pocket.

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How to Take Advantage of a Convenient Payday Loan

Sep 25, 2019

Taking advantage of a convenient payday loan could be the perfect answer to your short-term financial worries. There could be any number of reasons why you are faced with a short-term hole in your finances, and if you are still a few days or weeks away from your next payday, or an insurance payout, or you are about to start a new job and need some financial assistance in the meantime, a payday loan is a convenient way to help you out without getting into greater financial difficulty.

Traditionally, if you were stuck for cash there would be the following options open to you:

  • Wait until you next get paid and get by on what you have left in your bank account (this could mean that you go without food in the most extreme cases, or that you have to walk instead of taking the car until you have the funds to pay a mechanic, to give just two examples)
  • Speak to your bank manager about extending your overdraft on your current account
  • Ask a friend for a short loan of cash
  • Ask a relative for some financial help
  • Ask your boss for early pay or a sub out of your future pay
  • Use some money out of a savings account that you have been putting cash away into for some time

These days, quite a lot of those options are no longer open to the vast majority of us. Let’s look at the bank manager situation. How many of you know your bank manager by name? The way the high street banks have changed in recent years, and in the current economic climate, there is no longer the informality and genuine concern and trust between a bank and its customers. Instead, everything is automated, and it is much harder to get a loan from a traditional source such as a bank.

With the economy like it is it has also become much harder for people to save up money to use in the event of an emergency. The same goes for asking friends, family members, and employers. It is not as easy as it once was to ask other people for financial help, even only over a short period of time.

There is a way though where you can take advantage of a convenient payday loan without exacerbating your financial problems.

A fast payday loan application process allows you to secure the finances to see you through a short-term problem (paying back the loan amount and interest in full when you next get paid) without adding stress to your life in the form of long-term debt. Choose a payday loan provider wisely, with the best responsible lenders able to provide you clarity and purpose, a fast application process that sees the funds transferred directly to your bank account within a few hours of a successful application, and a flexible repayment plan where necessary.

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Strategies for Finding the right Loan Rate

Aug 28, 2019

When you are searching for a financial loan, it is important that you simply take time to compare different lenders to find the very best loan rate that’s open to you. This could not just enable you to cut costs and lower how long that you simply spend repaying the loan, but additionally could make the loan payments simpler to create and will assist you to guarantee you don’t get behind in your loan repayments.

Finding the right loan rate is not easy, but it is worthwhile… you will probably find the best loan rate that you could find is a lot less than you’d initially suspected, particularly if you tight on-than-perfect credit.

Rates Of Interest

Clearly, when you are searching to find the best loan rate you are likely to be trying to find the borrowed funds which has the cheapest interest rate that you could find. The low the interest rate is, the less you are going to need to pay within the initial amount that you simply borrow when you pay back the borrowed funds.

To get the very best loan rate and spend the money for least interest in your loan, it’s essential that you know precisely which kind of loan you are searching for and whether you intend on making use of collateral as a way of securing the borrowed funds and guaranteeing that it’ll be paid back promptly so that as guaranteed.

Guaranteed Loans versus. Short Term Loans

A significant consideration in the amount of interest you’ll pay in your loan is whether or not the borrowed funds is guaranteed or unsecured.

A guaranteed loan has some item of worth, for example home equity or perhaps an automobile, becoming an assurance the loan provider can get their cash back regardless of what happens.

A personal unsecured loan is a that does not use collateral, and usually has a little more strict terms in order to make certain the loan is paid back.

The very best loan rate that exist is probably likely to originate from a guaranteed loan, because the collateral can make lenders more prepared to offer good rates short term loans generally charge greater rates of interest than guaranteed loans, and might not be offered at all based upon the loan rating of the individual searching for that loan.

Loan Rates and Credit

Since you are likely to be borrowing money, lenders will review your credit score to obtain an concept of how good you’ve paid back your financial obligations previously and whether you are apt to be a danger with regards to getting their cash back. Clearly, you are more likely for the greatest loan rates for those who have good or excellent credit… simply because you have had a couple of problems inside your financial past does not imply that you cannot obtain a good rate, though.

Generally, the easiest method to keep rates low when you have had credit problems is by using high-value collateral to be sure the loan despite the fact that your credit might be less-than-perfect, you will still be qualified for much better rates since the loan provider is guaranteed that they may obtain money-back regardless of what.

Personal loans from the best money lender in singapore are often the best option during a financial emergency. Lenders usually have a few requirements and can release your loan money within just minutes.

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Term loan Singapore option to choose

Aug 14, 2019

Ethoz Group is known to provide term loan rental for various types and kinds of business need. It comes across as best option for owners that are looking to optimize their business operations in the best possible way.

It offers for extensive range of rental services which includes lorry rental, car rental, van rental and other such rental services. It offers quality-assured lorry rental and van rental in Singapore that are on par with excellence. It offers commercial vehicles of all configurations and customizations to the customers on the whole. It brings with it several years of experience and expertise in this field and is able to offer the best.

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