Loan Against Credit Card

by Vinaya HS on February 17, 2018

in Finance

The following post is a sponsored post.

There is an increasing use of plastic money in the economy, which has made it easier for individuals to apply for a loan. Applying for a personal loan is a simple and hassle-free procedure, which is approved in a couple of days. A loan on a credit card is similar to a personal loan.

What is a loan against a credit card?

A credit card is issued by the bank, which allows you to borrow money for your immediate use and pay the same amount gradually in the future. Every card has a credit limit and if your requirement of cash is higher than the withdrawal limit, you may apply for a loan on the card.

Such a loan has an instant approval process. It is the quickest option to raise finance and is a type of unsecured loan. In addition, it does not require any documentation because the banks already collect your documents, including an address proof, an identity proof, and an income proof, when you apply for a card.

The loan may be repaid in monthly installments and it usually carries a maximum tenure of 24 months. The two important factors that make you eligible for a loan against a credit card are as follows:

1. It is important to have a credit card account in order to avail of the loan. (Certain banks offer loans to existing customers only, while a few banks offer loans to new customers as well.)

2. Once you have started using the card of a particular bank, ensure you maintain a high credit score.

When do you need a loan against your credit card?

A loan against the card is ideal in times of emergency when you require immediate access to funds. The banks will provide a loan against your card and charge a lower rate of interest than the interest charged on cash withdrawals. When you apply for a loan, the withdrawal limit will not exceed. It will remain the same, but you will avail of funds against your card. Banks usually transfer the amount directly to your account.

One important thing to note is that it is important to repay the loan and its interest amount within the due date in order to maintain a strong credit history. Also, a loan on your card should not be your only go-to option every time you require additional funds. Consider it as a last resort in case of an emergency, when you need instant funds in your account.


How to Use Derivatives to Hedge Risks?

by Vinaya HS on February 17, 2018

in Finance

The following post is a sponsored post.

A hedge is a type of financial transaction which eliminates or reduces associated risks with another transaction. Similarly, derivatives are used in financial risk management by hedging a position to avert the risk of an adverse move in an asset. Derivatives are a financial instrument which is valued depending on the price of its underlying asset. Derivatives also constitute a contractual agreement between two parties that specifies which party has the right to sell or buy an underlying asset. Derivative contracts are generally categorized as swaps, futures & options. Financial derivatives are widely used to deal with multiple risks such as market, credit and operational risks. They are becoming increasingly important as options trading is used to hedge against price movements.

Hedging is done by taking an offset position for a related security, which in turn mitigates the adverse price movements. Derivatives have been used as a tool for risk management by most of the financial institutions as it is capable of breaking down the risks into smaller elements. Subsequently, these elements can be bought or sold according to one’s risk management objectives. Hence the original purpose of derivatives is to hedge and spread risks. In other words, hedging risks allows an investor to attain the desired risk profile.

For instance, an investor holding stock of a certain company may be concerned about the fall in its prices. However, he may still hold on to the shares for three more months due to tax issues. In case the investor decides to sell these shares at exactly the same price after three months, he can fully eliminate the risk associated with holding the shares. Therefore, he mitigated the risks by hedging the shares to his friend. On the other hand, hedging may not always be a good idea as the investor also ends up eliminating the risk of potential profit. If the investor’s shares would have appreciated significantly over the next three months, locking in the current price may turn out to be a bad decision.

Derivative trading has revolutionized risk management in the realm of finance. It allows investors to sell off unwanted risks which leads to effective risk management. In case of financial derivatives, specific risks can be dealt with and targeted and used for hedging against unwanted risks. As a result, market efficiency improves because the risks are sold off to other parties who are willing to accept them. However, derivative trading should be used with caution or they may turn out to be a financial threat.


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Life insurance is an important aspect of personal finance. It can be useful not only in providing a cover in case of emergency situations but also in maximizing the retirement benefits.

Three ways in which a life insurance can help you in your retirement plans are as follows:

1. Risk management

A life cover provides for the medical insurgencies and also take care of the required income in the old age. It can supplement the retirement needs by withdrawal or policy loans. Many banks and non-banking financial companies (NBFCs) provide a loan against a life insurance policy. Some policies provide long-term benefits in the form of medical cover and investments, which could be used in the later years of your life.

If the policy is structured correctly keeping in mind the long-term needs, it can cater to multiple needs during the old age. This would shield you against the medical risk and risk of running out of money after retirement.

2. Alternative pension

In case of the policyholder’s demise, a life cover would provide for the income for the surviving spouse. Although traditional insurance schemes mainly provide death benefit, there are a number of life insurance plans that cover the income during the later years of life.

The policy would supplement your income during the golden years. It would cover for your medical expenses and at the same time provide with the money required to sustain. There are a number of pension plans which also provide of life cover.

3. Transfer of legacy

Such insurance plans have tax benefits. A life cover can be used to transfer a sum of money to the next generation. This would be a tax-free asset for the beneficiary.

Some policies can also be used to pay estate taxes and ensure continuity in the family income.

A life insurance trust could also be established to avoid estate tax. This would reap benefits to the grandchildren.

These are the three ways in which a life cover helps you in the later years of your life. A comprehensive insurance plan keeping in mind the needs of your later years may give significant benefits. Thus, it is advisable to avail of a life cover and protect yourself from the unknown insurgencies that may arise in the future years.


Repaid your loan? Here is what you should do next.

by Vinaya HS on January 29, 2018

in Finance

The following post is a sponsored post.

There’s a broad smile on your face now that you have repaid your loan. And why not. It is an achievement of sorts. You have withstood the test of time, discipline and patience to repay your loan. Your first instinct is to reward yourself with the money that no longer gets sucked out of your account every month as EMIs. But if you can overcome this initial temptation and redirect this amount for financial goal planning, you can end up increasing your money. The ideal way to do so is by using that amount to invest in a mutual fund through a systematic investment plan (SIP).

Why go with mutual funds?

You are already used to not seeing your so-called EMI amount. So, why fritter that money away when you have no loan to pay? Why not invest that amount instead? Investing can only help you increase your money. There are many investing options that can help you build wealth. There is equity, debt and there is mutual fund.

While equity can be quite risky, debt investments yield low returns. Mutual funds, meanwhile, sit somewhere between them. This is because your money is put in several sectors of the economy, which is known as diversification. This helps in reducing the risk factor and at the same time, have the potential to provide high returns.

You might ask how diversification helps in cutting down risk? Let’s go with a generic example. Say, you have put money on stocks and gold. The stock investment goes awry but the money you put on gold yields high returns. That means your stock losses are offset by high gold returns.

Even the most grizzled of advisors will tell you to diversify your investment as they help minimise risk.

There are many types of mutual funds available. Some of them are:

Equity fund: You can invest in several company stocks. You don’t have to invest in just one particular stock. The returns are high too. There is another advantage. There are professional fund managers who invest the money for you. They are specialists who can invest on your behalf. You don’t have to be a stock market savant. Hand over the money to them and they’ll do the rest. But do some research. Check which equity funds are performing well. Don’t invest in them blind-folded.

Debt fund: These invest in debt instruments, such as government bonds, treasury bills and corporate bonds. While equity funds can be a tad risky, these funds provide you a sense of stability. The returns may be lower compared to their equity counterpart. But they are not affected by market volatility. These funds are ideal for low-risk investors, especially those who are planning to invest in fixed deposits (FDs) or keep their money in savings accounts. Just a rich aside, debt funds can provide higher returns than FDs and savings account. But again, do your research before investing in one.

Balanced funds: Also known as hybrid funds. They are a blend of equity and debt. They provide the best of both worlds: reasonable high returns and stability.

You might think they’d be expensive to invest in. After all, investing in individual stocks or debt can knock you back a bit, financially speaking. But that’s not the case with mutual funds. You can invest as little as Rs 500 every month. Plus, you have your ‘EMI money’ too. You won’t have to twist your knickers to invest in mutual funds – an investment option that can help your money grow. Remember that the more you invest, the larger your final kitty will be. The war-chest can be used for your wedding, child’s education or even retirement.

Now, let’s talk about how you can invest every month. As mentioned previously, there’s something called systematic investment plan, also called SIP. You can use SIP to invest in mutual funds.

The advantages of SIP investment

Open ended – There are many investment options like Unit Linked Insurance Plans or Public Provident Fund that have a long lock-in period, ranging from one year to 15 years. This means you can’t withdraw your investment before the policy matures. You can but you’d need to pay a penalty. This is not the case with SIP investment. You can redeem it whenever you want. However, it is advisable to invest for the long run. Mutual funds flourish if you keep your money for longer periods.

Flexibility – You can choose your investment amount. You can also increase or decrease your SIP amount.

Rupee cost averaging – This is a way in which you can buy more units of the scheme when markets are low and lesser units when markets are high. To put it simply, SIPs buy more when the market is low and buy less when the market is high.

Power of compounding – Simply put, this means that the returns from your investments are reinvested into the principal amount. Thus, the longer you remain invested in a SIP, the more you stand to gain.

Tax benefit – If tax-saving is your primary objective, you can consider rerouting the EMI amount into a mutual fund known as ELSS, also called equity-linked savings scheme. Investment of up to Rs 1.5 lakhs in an ELSS scheme qualifies under tax exemption under Section 80C of the Income Tax Act of India. An ELSS, therefore, offers the dual benefit of capital appreciation and tax benefits.

The last word

Why not use your ‘loan amount’ to invest? You may be smiling now (and you should) because if you have repaid your loan. But that can soon fade away if you spend the money needlessly. That’s why it is ideal to look at investment opportunities. And right now, mutual funds are one of the best investing options. So, why wait? Take use of SIPs to start building a mini-fortune.

Franklin Templeton is a fund house that offers a plethora of mutual funds. You can click here to know more about the different funds on offer.


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The stock market has always been a preferred investment avenue for many. Considering the higher returns and market volatility, investors choose to invest in stocks for tax benefits and faster wealth maximization. Investors were issued physical certificates by companies in the past and the same has changed into dematerialized certificates where the securities are credited and debited from the trading account held by the investor in a bank.

It is important to note that the sale and purchase of shares can only be carried out through a demat account opened with a bank. If you have multiple accounts for some reason, you can close the inactive accounts and transfer the stocks to the one active account you hold. The benefit of closing inactive accounts it that you will save on the annual fees and charges that are payable to the bank.

How to consolidate multiple demat accounts

The entire procedure of consolidation of multiple accounts is quick and hassle-free. You can follow the below-mentioned steps in order to consolidate different accounts.

Transfer of securities

You can simply transfer your securities from one demat account to another by filling a delivery instruction slip. The slip requires information of the securities which are to be transferred. The slip should be marked as off-market transaction and the same should be submitted to the Depositary Participant (DP). In case of a joint account, you will have to submit the slip with the sign of both the account holders. If the target account also has the same account holders, the transaction will be processed. You and your joint account holder will be retained as the owners but the DP ID and the account details will be modified. After the completion of the transfer, the account with zero securities can be closed.

Securities with a lock-in

Certain bonds and funds come with a lock-in period and such securities cannot be transferred to the demat account. However, it is possible to transfer the securities. In order to do the same will have to rematerialize the securities. This means, the securities will have to be converted into physical certificates which can be held by you or they can again be dematerialized into a different demat account.


There will be nominal charges for the transfer of securities from one account to another. The charges vary from bank to bank.

Tax implication
There is no tax implication on the transfer of shares from one account to another.

You can easily transfer your securities from one demat account to another and save on the annual fees. Additionally, holding a single account will allow you to keep a track of your investments with ease. It does not make sense to hold multiple accounts that have securities scattered in each one of them. A single account will make trading easier and will make sure that the investments are organized in one place only.


Is Term Insurance a Smart Investment Option?

by Vinaya HS on January 17, 2018

in Finance

The following post is a sponsored post.

Individuals invest for a variety of reasons. While some make investments to meet their child’s future educational goals, others do so to meet their retirement needs. Some individuals invest to seek coverage against uncertainties in life. One of the best ways to protect yourself and your loved ones in case of an unfortunate event such as death is by investing in a term plan.

Understanding term plans

Term insurance plans are policies specifically designed to provide protection against unforeseen circumstances. It is a pure protection plan that offers coverage for a fixed period. In case of an untimely death during the term of the policy, your loved ones are entitled to receive the death benefit. The received amount may be used to meet financial obligations and to live a comfortable life even when you are not around.

Benefits of term plans

Many have a pre-conceived notion that investing in a term plan is not a wise decision. This is not true. Though term plans do not offer any maturity benefit in case you survive the term of the policy, it ensures financial security in case the worse was to happen. Hence, a term plan is one of the best life insurance options that you may consider while developing a financial plan.

To understand the importance of investing in a term plan, take a look at the following four advantages.

1. High sum assured

This is the greatest benefit of a term insurance policy. Insurance providers offer a high level of coverage at lowest premium rates. You may, therefore, choose a sizeable sum assured that will help to meet your family’s lifestyle expenses in your absence.

2. Income replacement

Term plans are a must for those who are the sole breadwinners in the family. As your income will cease to exist in case of an unfortunate death, your family will be financially burdened in your absence. They may find it difficult to make ends meet. A term plan, however, ensures that your family does not have to face such a dilemma. The death benefit provided in a term plan acts as an income replacement, thus offering financial protection to your family.

3. Provision of riders

Most insurance providers offer the option of riders along with term plans. Such riders provide additional coverage at an affordable cost. Some available riders are accidental death benefit rider, critical illness rider, and permanent disability benefit rider, among others. You may compare the various riders and enjoy enhanced coverage based on your needs and requirements.

4. Tax benefit

Premiums paid towards a term plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Besides, such policies also offer tax-free income on the death benefit amount. You may, therefore, invest in a term plan and reduce your tax liability to a great extent.

A term plan has its own benefits. It offers maximum coverage to those looking to protect their loved ones in case of an untimely death. Such a plan provides peace of mind, knowing that your family’s needs would be taken care of when you are no longer around. It is, therefore, important to remember that a term policy is an essential part of a good financial investment plan.


NIFTY Futures and Options Trends

by Vinaya HS on January 15, 2018

in Finance

The following post is a sponsored post.

Talking about the Indian derivatives market, the Nifty Futures is closely followed and is very much popular. The Nifty Futures and Options is not only the most traded instrument, but also the most liquid contract too. Nifty Futures contract boasts of being one of the top index futures contracts that are traded in the whole world.

As you would be aware that derivative contract derives its value from an underlying asset, similarly in Nifty futures, the Index is the underlying here. So, the Nifty Futures derives its value from the Nifty Index. When the value of Nifty Index rises, then the value of Nifty futures contract also rises. And, when the value of Nifty Index decreases, the value if Nifty futures also decreases.

As of now, in the month of december’17, the Nifty Future contract (10505.45) is currently trending bullish. The trend is strong bull with low volatility In Dec series Nifty future shed 4.31 lakh position in OI. This means -2.43 % of Total OI in Dec series.

In the options segment, the activity is chiefly limited to the lesser puts even when the put call ratio is at a high. As per the recent trend, the activity is mostly inclined to the call option, though the ratio is still increasing. It can also be said that the Nifty call option is trading at discount, this has made market sentiment at an increased level and people seem cautious. The Nifty Put option is trading at premium so market is hopeful of bearishness.

Recently, the Nifty Put option added 1084.3 lakh position and Nifty call option added 681.19 lakh position in OI on cumulative basis. Talking in terms of value, Nifty Put option added Rs 6457.94 crore and Nifty call option has shed Rs -6046.38 crore on cumulative basis.

The recent trend can be understood with the help of this table:

Nifty call put data:


All You Need To Know About Put-Call Ratio

by Vinaya HS on January 15, 2018

in Finance

The following post is a sponsored post.

The put-call ratio is a famous and much-talked-about tool. It helps the individual investors to determine the market sentiment.

What is put-call ratio?

As the name says, this ratio is calculated by dividing the number of traded put options by the number of traded call options. Generally, the Put-Call Ratio is calculated on the basis of the trading volume, but sometimes it is also calculated using the OI or open interest volume or total dollar value. One can calculate weekly or monthly values and moving averages to smoothen the short term daily figures.

Interpreting the put call ratio

You can never get the average value for the put-call ratio as 1 because the equity options traders and investors mostly purchase more calls as compared to the puts option. Most of the time, the average put call ratio is less than 1. It is usually around 0.7 for stock options.

When you see that the ratio is nearing 1 or is greater than 1, it indicates a bearish sentiment of the market. When the put-call ratio rises, it indicates that the investors are preferring to put their money in the put options and not in the call options. This also means that the investors believe that the market is moving lower or they are beginning to hedge their portfolios in the sell-off case.

So, a higher than average number means more puts are bought by the investors as compared to the calls. This way, the traders are betting against the underlying. When the ratio is near 0.5 or lesser than 0.5, it means a bullish sentiment.

The fund managers also use a popular strategy in which they purchase the index put options to protect their portfolios. As a consequence, the put call ratio for index options is higher than that for equity options. Hence, equity put call ratio is more used as a better signal of the market sentiment and the sentiment of the speculative crowd.

A higher ratio means that the investors are going towards the instruments that gain when the prices decline. The call is the denominator in the put call ratio, a decrease in the number of calls will lead to the increase in the value of the ratio. This again means that the stock market is signally towards the start to reduce its bullish sentiment.

To the contrarian investor, the put call ratio helps to decide when the investors are going either too bullish or too bearish. As we have discussed above, a high put call ratio means a bullish signal as it indicates over-bearish crowd and vice versa. The traders use this put-call ratio as a contrarian indicator when the values go to the extreme levels. Many traders will find a large ratio as an indicator of buying opportunity because the market is bearish and soon it will re-bounce. The traders foresee this by witnessing extremes of the ratio.

Check out live put call ratio values on BloombergQuint.


5 Successful Indian Share Market Investors

by Vinaya HS on January 15, 2018

in Finance

The following post is a sponsored post.

Having an inspirational figure in mind helps us excel in our respective professional fields as we try to follow them. The investors have their inspirational heroes too. Not only the international faces like Warren Buffett and Philip Fisher, but many Indian share market investors are also the dream hero of many.

Not talking about the short-term fake stock marketers like Harshad Mehta and Ketan Parekh, but some Indian fund managers have been able to create a unique way of investing, making them the star performers. Let’s talk about some successful investors in India.

Rakesh Jhunjhunwala

The first name that comes to our mind as we talk about the famous Indian investor is undoubtedly Rakesh Jhunjhunwala. Also known as, India’s Warren Buffet, he is a CA and the best fund manager in India. He is also a Film Producer and a trader. Rakesh Jhunjhunwala’s updated holding value is more than Rs 10,000 crore. The name of the investment firm of Rakesh Jhunjhunwala is Rare Enterprise. Since the beginning of his career, he has a risk and reward taking ability. He has a far-sighted imagination which has heled him earn huge profits.

Ramesh Damani

The net worth of Ramesh Damani is around 800 Crores. He is the Founder of Ramesh Damani Finance Pvt Ltd. Ramesh Damani is also called as the investment guru and is followed by many people. He began started his career in 1990 as a stock broker when Sensex was as low as on 600 points. Stock investing runs in his blood, as his father was also a successful Indian share market player. He has got 100 times return on his investment in Infosys.

Nimesh Shah

Nimesh Shah is the founder of the broking firm Enam. When the Indian stock market talks about a well-researched investor, his name tops the chart. He is a follower of the bottom-up approach to invest. He also researches all about the company and its competitors before he puts his bet. He is the one who is attributed to bailing Infosys when the IPO of the company has fallen flat.

Radhakishan Damani

Another god of investing is Radhakishan Damani. He became famous when his company DMart, one of the most successful retail, launched its initial public offering or an IPO. He is a silent investor in the stock market and keeps away from the lime light. Like Nimesh Shah, RK Damani also follows the bottom-up approach. He researches every company minutely. He has been investing in almost all the blue-chip companies of the country.

Ramdeo Agrawal

Ramdeo Agrawal is best known as a co-promoter of Motilal Oswal, one of the largest Indian broking firm. Warren Buffett is his idol, and he follows a similar strategy in investing his stocks. He prefers a concentrated approach to investing and invests when the stock has a strong performance track record. Another feather on the cap of Agrawal is that he had managed one of the most successful PMS in the country before it was given to an asset management company led by him.

For more business news, stay tuned with BloombergQuint.


Impact of GST on Health Insurance

by Vinaya HS on January 12, 2018

in Finance

The following post is a sponsored post.

The Government of India is introducing numerous reforms to bring out development in the country. One such initiative, the introduction of Goods and Services Tax (GST) was implemented to create a single comprehensive tax structure for the entire country. GST was launched on 1st July 2017 and was the biggest tax reform since independence.

All indirect taxes such as service tax, excise duty, octroi, value added tax (VAT), and central sales tax, were replaced by a single tax. The implementation of GST is expected to reap numerous benefits, such as removal of cascading effect, easy compliance, and simple administration, besides many others.

Impact of GST on health insurance

The implementation of GST has had an impact on numerous industries. The health insurance sector is no exception. Prior to the implementation of GST, the applicable service tax rate was 15 percent. This 15 percent comprised 14 percent basic service tax, 0.5 percent Swachh Bharat Cess, and 0.5 percent Krishi Kalyan Cess.

With the implementation of GST, the service tax became a part of GST. This had a direct impact on the health insurance industry. With the application of GST, the cost of medical insurance premiums has increased as they are largely affected by service tax.

The rate of tax levied on medical insurance plans has increased from 15 percent to 18 percent. This hike is applicable to both individual health insurance plans and family floater health plans. The increase of 3 percent indicates that health policies have become costlier. This will affect both existing and new policyholders.

You may understand the impact of GST on the health insurance industry with the help of an example. Assume you used to pay INR 10,000 (excluding service tax of 15 percent) towards your medical insurance policy premium. A service tax of 15 percent on INR 10,000 amounts to INR 1500, which sums up to a total of INR 11,500. However, the implementation of 18 percent GST would result in a levy of INR 1800 tax. This is an increase of INR 300, thus indicating that premiums got costlier.

Benefit of investing in a health insurance plan post GST

Though the launch of GST has made medical plans costlier, you need to think of a health insurance policy as an investment instead of an expense. Following are three major benefits of health plans.

1. Coverage against medical expenses

Such plans provide coverage against the ever-increasing medical inflation. In case of a medical emergency, the insurance provider covers hospitalization expenses, as well as pre-hospitalization and post-hospitalization charges. This would prevent you from making huge expenses from your personal resources.

2. Lower premium cost due to digitalization

You may benefit from lower premiums if you buy health insurance online. Due to lack of intermediaries and lower paperwork expenses, insurance providers pass on the benefit of lower costs to their customers.

3. Tax benefit

Another advantage of such plans is tax deductions under Section 80D of the Income Tax Act, 1961. You may avail of health insurance tax benefit on the premium amount paid. You may claim tax deduction of INR 25,000 on premiums paid for self, spouse, children or dependent parents. This extends to INR 30,000 in case your parents are 60 years old or above.

A health insurance policy has manifold benefits. It is, therefore, necessary to invest in such a plan, even if the implementation of GST has made it costlier. The good news is that insurance providers may lower the prices in order to attract potential customers. Insurers may cut down on expenses related to policy-issue and other charges to attract customers. Some providers may enhance their level of service and customer-buying experience. This will benefit customers to a great extent and help them avail of the benefits health plans have to offer.


5 Benefits of an Online Demat Account

by Vinaya HS on November 19, 2017

in Finance

The following post is a sponsored post.

If you want to buy and sell shares on the stock markets, you must have a dematerialization or demat account. For this, you have to undergo a one-time procedure of signing the form and submitting the required documents.

Once you complete the formalities of opening an account, you may enjoy several benefits. Here are five such advantages.

1. Eliminate the risk of theft or robbery

When you hold your investments in an electronic form, there is no risk of theft or robbery of the physical certificates. Furthermore, you eliminate the possibility of any forgery when you hold your investments in a demat account.

2. Quick and immediate share transfers

Prior to the availability of such accounts, shares had to be sent to the registrar or the company to get these transferred to your name. This was a time consuming and cumbersome process. Furthermore, there was a risk of losing the certificates. With a demat account online, the transfer happens immediately without any risk of shares being lost or damaged in transit.

Moreover, earlier you needed to buy stamps when you wanted to transfer physical certificates. However, the dematerialization accounts levy security transaction tax, which eliminates the requirement of buying and using transfer stamps.

3. Buy and sell a single share

Prior to dematerialization, you were unable to buy or sell a share in odd lots. You could trade only in marketable lots, such as 50, 100, and so on. However, with dematerialization, you may trade in any quantity, which may be as low as one share. In addition to being more convenient, the online platform has reduced the transaction costs.

4. Nomination facility

A dematerialization account allows you to nominate another person without making him a joint holder. This provides you with better control over the account and efficient transfer to your nominee in case of your demise.

5. Multiple holdings in a single account

A dematerialization account allows you to trade and hold various financial instruments such as bonds, non-convertible debentures (NCDs), tax-free bonds, shares, fixed deposits, and much more in a single location. In addition, corporate actions like issues of rights or bonus shares are executed immediately without any delay or hassles. You do not have to wait to receive the physical certificates after the corporate announcement.

When you open a demat account online, you are able to reduce the transaction costs. You do not have to spend money on a registered post to send physical certificates to different locations when you buy or sell shares. Furthermore, you are able to easily track your investment portfolio and know the current market prices and the loss or profits on your holdings. When you choose an online trading account and link your bank account to your dematerialization account, the entire procedure becomes convenient and quick.

So, open a dematerialization account online and start investing today.


Things You Need To Know About Personal Loans

by Vinaya HS on November 14, 2017

in Finance

The following post is a sponsored post.

In general, loans are attached to specific causes such as home loan, car loan, education loan etc. On the contrary, a personal loan is an all-purpose loan that can be utilized to fulfill all of your personal financial needs. Be it an international vacation, wedding expenses, home renovation or medical emergencies, a personal loan can fill your budget gaps in every way. However, taking a loan is serious business. Therefore, here are the important things you need to know before you sign the dotted line.

It Is an Unsecured Loan

A personal loan is an unsecured loan. Therefore you need not use an asset as a collateral. Even if you are unable to repay the loan amount, the bank cannot seize your assets directly. Moreover, you do not require any sort of guarantor in order to get the loan approved. Nonetheless the lender will check your credit score and your income sources to gauge your ability to pay back the loan.

High Interest Rate

A personal loan generally carries a high interest rate as it does not need a collateral. Since the lender is taking a high risk by giving you an unsecured loan, you will have to pay a heavy interest. In India, personal loan rates vary between 11% and 22%.

Quick Processing Time

Since personal loans do not require any security or guarantee, the document processing is usually done within 24-48 hours. Hence, personal loans are apt for financial emergencies.

All-Purpose Loan

The best part about a personal loan is that you need not specify the reason for taking the loan. Once you apply for the loan, the amount will be credited to your account and you may use it as per your convenience.

Minimum Paperwork

Tedious paperwork is the worst thing you need at the time of financial emergencies. The paperwork involved in the application for a personal loan is minimal. You need not submit any proofs and certification of your assets. Hence you can get done with your paperwork in no time.

Understand the Type of Interest Rate

Personal loans carry two types of interest rates i.e. fixed and variable interest rates. Personal loans with a fixed interest rate tend to higher than personal loans with variable interest rate when you initially repay the loan. However, your monthly repayment amount remains the fixed throughout the loan tenure. On the other hand, the interest rates on variable personal loans increases gradually with time. Although personal loans with fixed interest might seem expensive initially, it is nevertheless the safest option.


The Tech-Savvy Customer Is Now The King!

by Vinaya HS on November 9, 2017

in Finance

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Nagesh was driving down with his family from Delhi to Lucknow for a big fat family wedding. He was almost half-way through and was about to stop at a Food Court for snacks and refreshments. At that very panicking moment, he realized that he had forgotten his wallet and did not have much loose cash with him. But then he came across the sign for payment via e-wallet or QR Code scan for food as well as petrol and his problem was solved.

Social Media, Analytics, Mobile, and Cloud (SMAC) is revolutionizing the financial services sector and has been leveraged for giving more power and financial autonomy to the customers. The demonetization drive has almost nullified the use of cash in day-to-day transactions. There is a constant debate about whether the financial services sector is effectively using the emerging technologies.

Experts have cited five technologies that are bound to transform the financial services sector in the next decade – Wearable devices, Internet of Things, Next-Gen Biometrics, Virtual assistants and natural language question answering (NLQA), and new currencies.

Empowering you
As the economy grows and incomes reach a new high, the standards of living will hike in their own way across the globe. Individuals would want to travel, buy high-value goods, start up new ventures, and grow further. Financial institutions will never lose their relevance as long as they innovate and keep their technology platform upbeat.

Personal Loans and Business Loan are commonly considered by individuals for varying reasons such as for an exotic travel plan, a medical emergency, a new car or a new gadget. However, today they also look out for convenience and ease of availability when they consider a bank or a financial institution for borrowing a personal loan or a business loan.

Financial institutions such as Tata Capital not only offer a seamless digital platform for extending loans but also provide some inventive loan products and EMI repayment options. Today you can simply download the application on your mobile, check the status on your loan, calculate the EMI via online personal loan EMI Calculator, and instantly make the EMI repayment via your credit cards or even Mobile Wallets. You never know you could even get pleasantly surprised with a Cashback or a movie ticket on EMI payment.

It could be a marketing gimmick or a transformation triggered by adoption of new technologies, the fact is, customers are at the core of every decision-making. Financial institutions need to and are leveraging these digital technologies to empower the customers in every way.

Today individuals need convenience and accessibility to funds instead of toiling at the long bank queues. How can this be possible without a robust technology interface? The transformative digital platform is the long-term answer for this.


10 Things to Consider While Buying Health Insurance

by Vinaya HS on November 9, 2017

in Finance

The following post is a sponsored post.

To secure the financial well-being and health of your family, availing of insurance coverage is crucial. Choosing the appropriate policy will provide you with the peace of mind. Being covered ensures you and your loved ones receive the best treatment in case the need arises.

Healthcare costs are constantly rising and delaying your decision to buy a health plan is not advisable. Stressful living, unhealthy eating habits, and sedentary lifestyles increase the possibility of suffering from serious ailments like diabetes, cardiovascular diseases, and hypertension.

You may avoid buying an individual plan because you are covered under your company’s group insurance. However, the coverage may be insufficient. Furthermore, if you quit or lose your job you will no longer be insured.

Most companies allow you to buy health insurance online. Here are ten things you must consider before making a decision.

1. Determine the appropriate sum assured

When you are making this decision, you need to consider the healthcare expenses and their increase due to inflation. Furthermore, you must take into account your family history and other risk factors. Availing of a higher sum assured is recommended as treating critical illnesses may be very expensive.

2. Start at an early age

It is advisable to procure health coverage at an early age. This is because you will be able to avail of higher coverage at a lower premium. Furthermore, risks associated with health increase with age and insurers may deny coverage at a later date.

3. Check for lifetime renewability

You will most likely file a health insurance claim when you are older. Therefore, choosing an insurance plan that offers renewability during these years is important to ensure you are completely protected.

4. Avoid claim loading plans

If you choose a claim loading plan, the premium continues to increase in case of any critical illness that requires long-term treatment. As a result, you may not be able to afford the higher premium and lose the coverage.

5. Choose restore or top-up plans

In case you need to completely use the benefits under the family floater health insurance plan, a restore benefit is advantageous. The sum assured is automatically restored in case the entire amount is utilized during the policy term.

6. Provide accurate information

It is important that you provide accurate information to the insurer at the time of purchasing the policy. It is crucial you do not withhold any information, such as pre-existing conditions in order to avoid paying a higher premium or ensure you are not denied a policy. If you withhold information or provide incorrect data, your claim may be rejected in case the need arises.

7. Check for the waiting period

Most health insurance policies and plans include a waiting period for pre-existing medical conditions. This may vary from two years to five years. During this time, the insurance company does not cover any expenses related to such conditions. It is recommended you choose an insurer that provides the lowest waiting period.

8. Opt for minimum sub-limit

It is recommended you choose to buy medical insurance online with no or minimum sub-limit. You must ensure there is no cap on room rent because it will limit the type of room you may choose in case of a hospitalization. Sub-limits specify the maximum limit for different expenses and expenses exceeding these would need to be paid through your personal resources.

9. Know the hospital network

An important thing to consider when you buy mediclaim policy online is the hospital network. A wider network of hospitals means you are able to benefit from cashless treatment at more facilities. Therefore, you are assured that you will not have to bear the expenses and later claim reimbursement in case you or your family member is hospitalized.

10. Read the inclusions and exclusions

It is crucial you read all the terms and conditions before signing on the dotted line. Understanding all the inclusions and exclusions beforehand will prevent disappointment later when the need arises.

Although procuring the policy at a lower premium is desirable, it must not be the only factor. It is important you check the claim settlement ratio, no claim bonus benefits, and additional riders available before making your choice. It is recommended you compare different private health insurance plans and policies to make an informed decision.


Investing in the Stock Market Made Easy

by Vinaya HS on November 2, 2017

in Finance

The following post is a sponsored post.

The stock market may seem intimidating and confusing. You are going to be investing your hard earned money and expecting good returns. However, there are some things to keep in mind before you start investing.

1. Be prepared

Before you take the plunge you need to know how to invest in stock market. Ensure that you have determined the following things:

Choose your options: The most important thing to determine is the type of stocks or company that you will be investing in. You may go for the companies on the Nifty 50. You may also choose among small-, mid-, and large-cap companies.

Set your budget: Analyze your finances and determine your budget and the amount of money that you will need to get your desired returns.

Open an online trading account: A dematerialized account is necessary for trading in the stock market. It will be better to open an online trading account because you will be able to trade from anywhere and at any time.

Broker: You may seek help from a broker or a consultancy service in case you are wondering how to invest in shares. A broker is required to carry out any stock market transaction.

2. Analyze the company

Now that you have the basics covered and you are ready to invest, you have to choose which company you will invest in. For determining your best bet, you may do a fundamental analysis. This method basically helps you in determining what the intrinsic value of the company’s stock is. If the intrinsic value is more than the amount it is being traded at currently, then it is a good idea to invest in that company.

The intrinsic value is the total amount of future profits that the company is projected to make. This practice of fundamental analysis is a good way to determine the stocks’ value that will increase in the future and give you a good return in the long term.

3. Ratio analysis

Ratio analysis is another way that will help you to know the performance of the company that you are going to invest in. This method allows you to measure different companies of the same industry and select the one that is performing the best.

There are some ratios that you may use to determine the performance of your chosen company. These are:

P/E ratio: The price to earnings ratio determines how much an investor is paying for each unit of the earnings.

Debt to equity ratio: This ratio compares the level of the amount that is borrowed to the level of the capital.

P/BV ratio: The price to book value ratio helps in comparing a company’s market price and its book value. Book value is the amount that remains when the company liquidates its assets and repays its liabilities.

OPM: This ratio determines the operational efficiency of the company and its pricing power. It is known as Operating Profit Margin.

EV: Enterprise value by Earnings before interest, tax, depreciation and amortization (EBITDA) is used along with the P/E ratio to determine the value of a company. EV is basically the market capitalization added with debt and subtracted with cash.

4. Other tips to keep in mind

There are a few other tips to keep in mind to help you know how to invest in stocks and get a good return on your investment.

Do not go by the herd mentality: Your decision to invest in a particular stock should be made by yourself on the basis of careful evaluation. It is better to avoid the herd mentality and end up buying the shares that your cousin, neighbor, or colleague is buying without any research.

Invest in the business not just the stock: It is better to invest in a business that you understand so that you will be able to gauge how market conditions will affect your investment. Buying the stock of a company whose working you don’t understand may leave you feeling out of the loop.

Be disciplined: It is very important to have a disciplined approach when it comes to investing. Getting swept up in the volatility of the market might result in losses. If you systematically invest and hold onto your investment patiently, it is more likely that you will get great returns.

Diversify: The importance of diversifying your portfolio cannot be stressed enough. By diversifying and buying different types of securities, you lower your risk and increase chances of a stable return.

Follow these tips mentioned above and start investing today for better returns.


Types of Health Insurance Plans

by Vinaya HS on October 27, 2017

in Finance

The following post is a sponsored post.

In order to protect yourself against the ever-increasing medical bills in case of a medical condition or a disease, it is necessary to invest in a health care plan. Such a policy pays for all hospitalization-related expenses, as well as pre-hospitalization, and post-hospitalization charges. Some policies also offer coverage for critical illnesses, domiciliary treatment, alternative treatment, and also provides health checkups.

There are various types of health insurance policies available in India. Some of the most popular ones are:

1. Individual health plans

As the name suggests, individual health plans are meant to cover individuals. In case of hospitalization, all your medical bills will be taken care of by your insurance provider. You may also avail of the cashless claim facility at network hospitals. This ensures that you do not have to run from pillar to post trying to arrange the necessary capital. Focus on your speedy recovery instead of worrying about settling your medical bills. Another benefit of individual health plans is that you may choose from a wide range of additional covers. This helps to enhance your coverage and protects your financial interests better.

2. Family floater health plans

A family floater plan is another type of health care policy. By investing in such a plan, you may receive medical coverage for yourself, your spouse, children, as well as parents. A major advantage of such a plan is that you have to pay just a single annual premium as compared to individual plans. You do not have to track and maintain multiple policies. Many insurance providers offer discounts on such plans as multiple members are covered under the same policy. Apart from all this, you may also avail of cashless facility at network hospitals in case any of the covered members require medical treatment.

3. Critical illness plans

Critical illness refers to life-threatening medical conditions such as cancer, loss of limbs, major burns, blindness, kidney failure, bone marrow transplant, and stroke, besides many others. In order to protect yourself against such conditions, you may opt for critical illness insurance. You may either buy a standalone critical illness plan or a rider supplementing your existing health care plan. In case you are diagnosed with any of the illnesses on the predetermined list of your policy, you are entitled to receive a lump sum cash benefit. This helps you cover all expenses associated with your illness.

It is imperative to analyze the features and benefits of each of these policy types and select a plan that meets your needs the best. By investing in the right health care plan, you may avail of the best treatment without any financial burden. Besides, you may claim tax benefits on the premiums paid towards your policy. Such policies go a long way in mitigating financial losses and ensuring complete peace of mind.

To make the most of the benefits, explore the numerous types of health insurance plans of Kotak General Insurance, here.


An Investment For The Wanderlust In You

by Vinaya HS on October 27, 2017

in Finance

The following post is a sponsored post.

Remember your college days when you always wanted to go to Goa with friends, but the plan never materialized? Back then, we lacked enough money. Fast forward to now, and cash still remains short.

But now, you can pay equated monthly installments (EMIs) to finance a vacation with your family. Read on to find out how.

The roadblocks

Before we discuss how to tackle the finances, let’s first recognize the financial challenges. Most people avoid vacations as they do not have enough savings in their account. Also, vacation is usually considered as a luxury and not a necessity. This is because paying your children’s school fees, loan EMIs and systematic investment plans (SIPs) take priority over splurging for a vacation.

The solution

However, there is an alternate path. There are ways in which you can go for a vacation while not having to worry about your children’s fees, EMIs and SIPs.

You could tap into your savings, take a loan or invest beforehand. Taking money out of your savings is not prudent as they should be reserved for emergencies. The loan option would result in you building a debt. Instead, you could invest your way to an exotic destination.

There are several investment options that can fetch you returns in a short period of time. Stocks, treasury bills (T-bills) and mutual funds are some of the options. But, stocks are considered too risky, while T-bills are on the other end of the spectrum and provide low returns. Mutual funds, however, are relatively safer and provide higher returns than T-bills.

How could mutual funds help?

You could invest a part or whole of your savings account money into a mutual fund. Say, you have Rs 5 lakh in your savings account. If you were to invest this amount for a year in a short-term debt fund, like Franklin Templeton STIF, you could earn around Rs 50,000 in a relatively short duration.

But, even if you don’t have savings, you can still start with an SIP. You might already have an ongoing SIP. However, it wouldn’t hurt to start another SIP that would help satiate the wanderlust in you. All you need to do is budget expenses and make room for another SIP.

When to invest in mutual funds

If you have a travel budget of Rs 1 lakh, you can start an SIP with Rs 8,000 to meet your target within a year. It is ideal that you start an SIP at least 4 months prior to a domestic holiday. The duration increases to at least 8 months in case you want to go overseas.

Mutual funds are a great investment option even for people who don’t draw a huge salary. The minimum investment for a mutual fund is Rs 500. However, investing Rs 500 every month would take some time to build a corpus large enough for a vacation.

Bottom line

The SIP investment amount would differ depending on the number of vacation days and the number of people going on a vacation. It would even differ for different destinations. However, SIP investments could be the difference between you going for a vacation and staying at home this festive season.

So plan for your dream vacation right away!


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Parents often open a bank account for their children at an early age to help them learn about saving and managing money. It also helps parents build a corpus for their child’s future.

Instead of toys and playsets, you may consider gifting a saving account on your child’s next birthday. Following are ten benefits of opening a bank account for your kid:

1. Helps kids develop the habit of savings A huge benefit of opening a bank account for kids is that it teaches them prudent financial habits from an early age. They may try to save a small amount received as pocket money or through any other source.

2. Acts as an investment strategy Kids have a huge advantage as compared to adults—time is on their side. Making small investments over a period of time helps in accumulating a substantial amount.

3. Provides perks and offers Such bank accounts provide a host of perks, privileges, and discounts on shopping of kid’s apparel, dining, and edutainment, besides others.

4. Secures your child’s education Gifting your child a bank account at an early age accumulates savings over a period of time. The corpus may then be utilized to meet educational expenses.

5. Teaches your child fundamentals of banking Opening an account for your child helps them have a basic understanding of how banking works. Numerous banks provide a passbook upon opening of an account. This helps children understand how to record deposits and withdrawals. It also shows them how their savings add up.

6. Easy to use It is only obvious that a bank account for children will be easily accessible. Besides, banks have also ensured to make the account opening process as easy as possible.

7. Benefit of attractive interest rates Your kids may enjoy attractive interest on the deposited amount. Some banks offer interest rates as high as 6 percent per annum, thus helping them grow their wealth. This encourages them to save more than often.

8. Requires low or no minimum balance Most banks either have low or zero balance savings accounts for kids. This means that the account may be operated without the need to maintain a minimum monthly average balance or quarterly average balance. Therefore, there is no imposition of non-maintenance charges in case of failure to maintain the minimum balance.

9. Provides a debit card Many banks offer a junior debit card, which may be used at an Automated Teller Machine (ATM) to make transactions or to purchase items at a store. This prepares your kid to use credit responsibly in the future.

10. Allows parental supervision Banks have certain limitations with which children may operate their account independently. This ensures that risks are limited. Kids may, therefore, operate their account with parental supervision. You may guide them and teach them efficient money management skills.

Opening a bank account for your kids is indeed the best gift you may give them. It helps them learn how money grows with time and ensures that they become financially independent in the future.


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The Securities and exchange Board of India has provided even more flexibility as the board has now permitted the mutual funds to use the IRF or the interest rate futures contracts to hedge risks from volatility in the interest rates, as per the Indian legal news.

The interest rate futures provide for future delivery of an interest- bearing security like the government bonds etc. Such contracts offer the benefit of an avenue which is used to hedge against the risks that is always associated with the ups and downs in the interest rates.

As the SEBI mentions in its circular, in order to diminish the risk of the interest rate in a debt portfolio, the mutual funds are now allowed to hedge the portfolio or become the part of the portfolio. And it may include one or more securities as well on weighted average modified duration basis by using interest rate futures.

Along with this, the mutual funds are now expected to reveal their hedging positions through the IRF in a particular debt portfolio, the details of the IRFs which are used for hedging, debt and money market securities transacted online, and the investments that are made in the interest rate derivatives in the monthly portfolio disclosure.

Sebi has also said that if the interest rate future which is used for hedging the interest rate risk has different underlying security than the current position it is being hedged, then it will be concluded as the imperfect hedging which will be exempted from the gross exposure, up to maximum of 20% of the net assets of the scheme, on a condition that the exposure to IRFs is created only for hedging the instrument based on the weighted average modified duration of the bond portfolio or part of the portfolio.

Mutual Funds are allowed to do the imperfect hedging, and will not be treated in the gross exposure limits, if the correlation between the portfolio and the IRF is at least 0.9 at the time of initiation of hedge. If there is any difference from the correlation criteria, the same must be re-balanced within five working days. If the same is not rebalanced within the five working days, the derivative positions created for hedging will be treated under the gross exposure.

As the SEBI says, the genuine nature of the mutual fund scheme must not change by hedging the portfolio or being the part of the portfolio. It is also important that before the start of the imperfect hedging, all the unit holders of the current scheme must be given a timeline of minimum a month or 30 days to exit at prevailing net asset value (NAV) without charging of exit load.

The board also added that the risks associated with imperfect hedging will have to be unveiled and also discussed by apt examples in the offer documents and must also be told to the investors through any way of correspondence.


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It happened for the very first time in the last 10 months that the bearish play by the foreign Investors on the Nifty futures was found more than the bullish bets recently. This happened when there was a downside in the stock market and the market sentiment was quite low.

Since the month of August, it was observed that the FPIs were the net sellers in the cash segment for as many as 28 trading sessions out of the total of 38 sessions. And from that time onwards, these investors have been on the short positions only on the Nifty futures.

As per the recent data on the National Stock Exchange, it was seen that the FPIs were net short 1,180 contracts in the index futures where the net long in index futures was found to be 3,226 contracts. It was also observed that the FPIs long-short ratio in index futures was at 49.8 per cent. This long-short ratio was below 50 per cent for the first time in last ten months. The reason for a shortfall in the long short ratio in index futures was that there was a fresh shorting in index futures worth Rs. 250 Cr from FIIs in a recent trading session. This clearly states that the FIIs are more bent on the short positions in index futures than long positions.

With this, Nifty has gone below its 100-day average of 9,768.45 and the benchmark indices fell for the seventh consecutive session which was the longest ever losing streak in this year. The experts believe that further selling by the FII’s might make the index future fall to 9,500 points. FPIs have sold more than Rs 20,000 crore worth of shares since 1st August.

The earnings recovery scenario in the country is passive in the near future due to the disturbances like GST and the foreign investors moving to the other markets within the emerging market space which are trading at a cheaper price-to-earnings multiple.

The derivative experts say that the foreign investors have recently sold more than Rs 1,000 Cr in the cash segment every single day in the last few trading sessions, which is very disturbing, And, hence the movement of the rupee will be critical for the market direction. It is believed that the range of 6666.30 will be critical for the rupee. And if there is a rebound from that area, the Nifty should find support near 9,700. In July when it crossed the mark of 10,000 for the very first time which kept on soaring around psychologically for quite some days, the indices had seen a correction which got reversed after going to a low of 9685.55 on 11th August.

The derivative analysts hope for a correction of around 200 points in case the crucial level of 9,700 is not continuous.