One more option of sourcing funds is to obtain a loan against your assets, for example, a loan against property is especially useful for such purposes. However, there are specific loans to be availed for precisely this function that are termed under the category of business or commercial loans.
Historically, gold has been the perfect hedge for inflation. This is based on data from the year 1800 AD. But in terms of absolute returns gold has fared rather poorly giving returns at only 0.8% above inflation. Real estate and shares beat gold squarely on the capital appreciation front. Real estate and shares have given [...]
Investing is the action of buying an asset with the aim of making profits and earning income. Contrary to what many people believe, investing is a long-term activity, while trading is a short-term activity. A successful investor takes a look at the fundamentals of the asset before putting down his money to buy the asset.
While deciding between the companies operating in the same sector, examine the rate at which the EPS of these companies has changed during the final two quarters and compare this difference with the rate of change of EPS during the last 3-5 years. If the EPS has shown an increase, it [...]
What is your purpose in investing? Are you saving for a short-term goal like buying a car or for long-term goal like retirement plan? How comfortable are you with taking risks? Answering these questions is important to prepare the correct plan for your finances. Unfortunately, not many spend time answering these questions.
Forex trades can be placed through a broker or market maker. Orders can be placed with just a few clicks and the broker then passes the order along to a partner in the Interbank Market to fill your position. When you close your trade, the broker closes the position on the [...]
Indian hatchback market is on a high. It is rising at 35% per annum. It is dominated by Maruti Suzuki’s Swift, Hyundai i20, Volkswagen’s Polo, Skoda fabia and Ford Figo.
One sure way to find some excess cash in a downturn is to reduce expenses and lifestyle purchases. The point is not to cut down on the fresh fruit that we buy for our children, but on the new sofa set that we planned for our living room. The new model mobile phone or the [...]
Consumers must be aware of their legal rights in the event of an imminent foreclosure. First of all, all debtors/borrowers have rights under the Fair Debt Collection Practices Act (also known as the Consumer Credit Protection Act) to avoid or stop abusive, repetitive, and unfair debt collection practices. Creditors can only [...]
Use real-life experiences to demonstrate everything you want to teach. Learning by observing and doing is the most powerful tool. Such as when you go grocery shopping, and can use the opportunity to showcase planned spending, or how to recognise value for money. Or if you decide to use a credit card at a restaurant, [...]
Can you survive a job loss for six months? Do you have some funds stashed away for such emergencies until you gather your reins and surge ahead confidently with a new job and a new plan for the future in place? What about a medical emergency? Do you have resources that you can tap into [...]
In case you have lost or have been robbed off your card, you’re in double trouble- your card could be used for a fraudulent purchase and you lose the convenience to pay though the card. Besides, you may have lost all your other important documents such as pan card, driving license [...]
Decide what you really need by making a list before you venture out. And keep looking at that list while you wander around, so that you’re aware of what you really need, and what you like the look of. Make sure to be armed with only [...]
The earlier proposal of introducing taxation upon withdrawal (EET) instead of the existing tax free (EEE) status for certain instruments like PPF etc. had earlier been withdrawn in a revision. If that were to be implemented perhaps the tax slabs could have led to a dramatic saving for all the individuals [...]
After negotiations, it has been decided that hospitals will be categorized in 3 categories based on the infrastructure capabilities and the rates will be standardized for 42 standard medical procedures covering almost all ailments requiring hospitalization for the 3 categories of hospitals. The rationale is that high-end or specialty hospitals [...]
A look at the past 15-20 years record, it is seen that Gold is a hedge against inflation. Over the last 20 years, the average return from Gold has been around 7%. So, if the past trend continues, one could expect around say 6-9% returns from gold in the long-term.
If a woman earning Rs. 50,000 per month takes a 5 year break from her job because she wants to be at home with her child, her earnings and thus savings take a hit of Rs. 30L. We have not yet considered any increment in her salary. If we consider that her [...]
Another way to use this rule of thumb is to guess the rate of return that you must get for an investment to double within a particular period. Say, Mr. Ramesh wants to buy a house after six years for a budget of Rs. 30 lakhs. He has Rs. 15 lakhs [...]
Try to lower your interest rate. Negotiate with your bank. One other way is to convert your credit card debt into a personal loan debt. It will definitely be lesser than the credit card interest rate. Calculate your net worth and see if any of your investments could help you prepay a [...]
Gold ETF, also known as paper gold, is an open-ended mutual fund scheme that invests money collected from investors in standard gold bullion having 99.5% purity. Investors in Gold ETF will have their investment in the form of units of the scheme which is listed on the stock exchange. Each unit [...]
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