Home
>
Posts filed under
investing
If you have not started investing and saving for a rainy day, it must be the first thing you figure out to do. Of course, there is the huge advantage of saving for a future date and for higher responsibilities like owning a home or a car – but is it enough to just save money year on year? Would it beat inflation in the first place by just keeping your money in the bank? Not really. You have to think about smart investment points that would grow your money instead of keeping your money growing at the bare minimum percentages.
Investing in an
online mutual fund would be the smartest and best way to make your money grow for you quickly. You can now invest in these funds at any time from any place. You have access to your investment online and with a secure payment process; the entire plan is almost paperless. There are quite a few funds you can look at buying provided they are from branded firms and you can decide which plan would suit your need. Look and invest into plans that give out timely dividends as well as strong investment values. The net asset value of the fund is the most important metric when you are investing in a fund. It would give you a clear idea on the growth of the stock and how well it has grown over the time you have invested.
Many of us do not understand it, but the benefits are more towards the downside of the market than the upward trend. When you enter an online
mutual fund, it may not be the lowest point of the price cycle or the net asset value that is running then, but since you are investing in this continuously over a period of time, you would buy it during the lower points to over a year or even more. So, when the price of the mutual fund comes back to its original value, it has already led you into a sizeable profit. It is this reason that most mutual fund investments are on the long run and not on the shorter period.
Not only would an investment like this protect you in a situation of financial instability, but also gives you profit on the long run with minimum monitoring of the stock market. If you have been thinking of investing in mutual funds, the time could not be better.
If you have been working for a few years in India, chances are quite high that you have heard of investing in mutual funds many times. In that past, most of these kinds of investments were driven through agents. It’s a lot different now as you would get to know every bit of information about these investments online and that surely makes your decision easier. If you have been thinking about making an investment, here are a few simple methods:
1. Invest via an AMC: You can invest into a mutual fund by approaching the mutual fund companies directly. Each of the companies provide online facilities to invest from the second investment onwards and thus are able to complete your transaction easily. Sounds good? Well almost. In this process, you have to fill the first form at the office of the AMC, so apart from the first investment; the rest can be done on the internet. The tough end of this deal is if you want to participate in 3-4 different funds, that means you have go to each of the offices and have the first form filled and submitted. So, this investment makes sense only when you are going to invest a big amount of money and over a long period of time too. Plus, you do not really need a demat account for this.
2. Use your Demat account: The most common and recommended methods would be to use your demat account. You can look through all the different mutual funds and easily make your investments. All it would take is a few clicks on your mouse, to choose to invest in the fund of your choice. The only catch would be the charges you have to pay the demat medium you use. The biggest advantage though is that you can have access to all your transactions and details from one place alone. How easy is that?
3. Use the fund directly: Certain funds allow you to purchase mutual funds online, that means not having to go through a broker or source at all. You would have all the possible information you need about the mutual fund along with the performance of the fund over the years. It is a very easy solution no doubt and is a sure option on the long term. You would have lesser commissions to pay and thus is a great idea if you are planning to invest on the long term.
Investment plans should always have a firm plan and that is precisely what you get when you invest in Unit Linked Insurance Plans – it is a combination of insurance and investment. While many have reasons to think of the reasons to invest here, the honest idea is quite simple. Because it has elements of insurance as an aspect of it, you are in it for the long term. Just like you would with an insurance policy for your child or an investment for your child's wedding perhaps. It is long term and has plenty of benefits. What are they? Let's find out.
1. You are protected: With a volatile market and not much to guarantee on economic conditions, there is a severe need to be sure of the goal you have in mind. Irrespective of the policyholder, your investment is safe. The final target which you had with the investment is cleared out in the event of death or at the period of maturity. You are safe from fluctuations and that keeps you protected.
2. Tax exemptions: We are all struggling to reach our exemption limits with respect to tax. If your total investment is to a level of Rs 1 Lakh, this would be deductible and also the amount you get on maturity is tax free. Do note that this is applicable if the total premium paid is not over 20% of the insured amount.
3. Flexibility: Not all investments give you this opportunity and with ULIP, you have just that. You can switch without any thought and that means a seamless and tax friendly method. You can do this at any time and change your portfolio in many ways.
4. Long term thinking: Anyone who is planning to invest here should be thinking of exiting only after 12-14 years. That is a long time and the dividends come out only in such periods. When you enter this investment, you are protecting your long term goals and that gives you so much more than any short term investment.
