Enter Equities or Not?

Thinking whether it’s the right time to enter equities or not? Well, we have the answer for you - ‘Brace for another choppy ride given the uncertainties in global economy, but long-term players can look to invest in equities and equity MFs at current low valuations’
 
In our ‘‘A Penny Saved is a Penny Earned” hear from Major General ‘A.K. Shori’ taking about how the habit of saving is not new but where to put the money with better and secure returns is the main concern.
 
Our Guruspeak this week is business head, Citi At Work, Investment and Banking Products, Citi India – Arjun Chowdhry, a section you don’t want to miss! Also, know how Indexation allows investors save tax on returns from FMPs.
 
To read the article, kindly click here: http://www.indiainvestkaro.com/toi_pdf/TOIM_2012_1_31_15.pdf

Why SIP?

The UTI Systematic Investment Plan is a unique plan that allows you to fulfil all your dreams efficiently. With salient benefits and features, the UTI SIP becomes a wise choice for investments. An investor can make regular investments and follow a disciplined approach towards investing in UTI MF schemes. He can also peruse the Systematic Investment Plan according to pre-opted schedules.

Take a look at all that you can do with UTI SIP:

Build your future.

    To meet the more exhaustive expenses of your life like marriages, education or a house, you need to start investing early. Save a small amount every month/quarter with SIP and look forward to a bright future.

Relax and accumulate wealth.

    With SIP, you don’t need to invest a huge sum of money i.e. you can start with an amount as little as Rs. 500. Gradually, you can accumulate wealth over the long-term.

Reduce risks.

    For efficient participation in this volatile market, SIP helps you average out your cost by generating superior returns in the long run. It reduces the risk associated with lump sum investments.

Enjoy the convenience.

    Set yourself free from cumbersome paperwork. Just identify the amount and scheme that you wish to invest in and then choose from options like Auto Debit/ECS. The amount will automatically get debited on a date of your choice. You can also give monthly/quarterly post-dated cheques for the amount you wish to invest.

Build your investment at regular intervals.

    With SIP, you can invest a pre-determined amount of money in chosen schemes at the applicable NAV based Sale Price on each transaction date. Each transaction will fetch you additional units that will be added to your investment accounts.

Ref: http://www.utimf.com/learningcentre/Pages/all-about-sip.aspx

Guide To Investment.

When opting for investment these are the few things that you should keep in mind, as follows:

Have an 'Investment Objective'

Create for yourself an objective to perform wiser investments. This objective helps you choose between schemes that satisfy different objectives.

Read carefully

Read the offer document carefully before investing. Though it may be lengthy, you must at least read the sections on risk factors, litigations, promoters, company history, project, objects of the issue and key financial data.

Don't hesitate to approach professionals.

Although you may be tempted to make your own investments, it may be smarter to trust options that offer a professional management of investments, for example Mutual Funds.

Deal only with registered intermediaries.

You may need a broker to invest in many financial instruments. And a good broker might be the difference between a good, safe investment and a bad, money-losing investment. That’s why, it is important to deal with brokers who are registered with the regulatory authorities.

The SEBI approval

Always look out for those companies that have been approved by the SEBI. The regulations laid down by the SEBI make for wiser investments with an official corroboration.

For more, kindly click here: http://www.utimf.com/learningcentre/Pages/Investment-Guide.aspx

A must read for small - term investors.

When you are a short – term investor the most important thing is the protection of your capital, it comes into play in situations when rather than trying to generate positive returns on the money that is invested, the main objective shifts to preserving the principal amount that is invested.
 
Not only this, read to know why the M.D. of State Bank of India ‘Krishna Kumar’, says that small investors need better cover? Furthermore, our section road to save tax covers “Infra bonds: Partake in returns of nation building”.
 
Listing day circuit breakers will tell you how certain measures will help you make your investments in IPOs safe.
 
To read the article, kindly click here: http://bit.ly/ythXc7

 

7 Benefits of Investing in SIP

Systematic Investing in a Mutual Fund is the answer to preventing the pitfalls of equity investment and still enjoying the high returns. And it makes all the more sense today when the stock markets are booming.

Following are some of the benefits of investing in SIP -

1. Its an expert's field - Let's leave it to them

Management of the fund by the professionals or experts is one of the key advantages of investing through a mutual fund. They regularly carry out extensive research and regularly track the market .

2. Putting eggs in different baskets

Another advantage of investing through mutual funds is that even with small amounts we are able to enjoy the benefits of diversification. Diversification reduces the overall impact on the returns from a portfolio, on account of a loss in a particular company/sector.

3. it’s all transparent & well regulated

The Mutual Fund industry is well regulated both by SEBI and AMFI. They have, over the years, introduced regulations, which ensure smooth and transparent functioning of the mutual funds industry. This makes it safer and convenient for investors to invest through the mutual fund

4. Market timing becomes irrelevant

One of the biggest difficulties in equity investing is WHEN to invest, apart from the other big question WHERE to invest. While, investing in a mutual fund solves the issue of 'where' to invest, SIP helps us to overcome the problem of 'when'. SIP is a disciplined investing irrespective of the state of the market. It thus makes the market timing totally irrelevant.

5. Does not strain our day-to-day finances

Mutual Funds allow us to invest very small amounts (Rs 500 - Rs 1000) in SIP, as against larger one-time investment required, if we were to buy directly from the market. This makes investing easier as it does not strain our monthly finances. It, therefore, becomes an ideal investment option for a small-time investor, who would otherwise not be able to enjoy the benefits of investing in the equity market.

6. Reduces the average cost

In SIP we are investing a fixed amount regularly. Therefore, we end up buying more number of units when the markets are down and NAV is low and less number of units when the markets are up and the NAV is high. This is called rupee-cost averaging. Generally, we would stay away from buying when the markets are down. We generally tend to invest when the markets are rising. SIP works as a good discipline as it forces us to buy even when the markets are low, which actually is the best time to buy.

7. Helps to fulfill our dreams

The investments we make are ultimately for some objectives such as to buy a house, children's education, marriage etc. And many of them require a huge one-time investment. As it would usually not be possible raise such large amounts at short notice, we need to build the corpus over a longer period of time, through small but regular investments. This is what SIP is all about. Small investments, over a period of time, result in large wealth and help fulfill our dreams & aspirations.

Ref: http://www.moneycontrol.com/news/mf-experts/7-good-reasons-to-investsips_213883.html

It's all about TAX!

This time of the year the tax payers go through a panic attack with thoughts of how to save their tax, hence we have come up with several options that will help you to save your tax at the last-minute.
 
Did you know, that you can lighten your tax burden? The Income Tax Act that governs your personal issues all deductions of several kinds which lighten your total tax burden. Read to know the various sections that deal with the deductions.
 
Get to know the importance of tax planning by the M.D. and CEO of ICICI Securities – Anup Bachgl because it’s never too late, so start now!
 
To read the article, click here:http: //bit.ly/A7hrHo

Swatantra Article - 10th January, 2012

Before you buy a Insurance, there are certain questions you need to answer before you buy one – What is to offer? Do you need it? How much term cover? From whom to buy and so on… Because life insurance is crucial to financial planning but
the key to its effectiveness is informed buying.
 
Also, life is very uncertain you never know what happens next, hence, you should always be prepared for it – ‘Mitigation tool, not investment’ read under this section what steps to take to avoid severe conditions.
 
In addition, know in detail what KYC process is all about. To read: http://www.indiainvestkaro.com/toi_pdf/TOIM_2012_1_10_11.pdf

10 Things to do to grow money in 2012!

We discuss many aspects of personal finance with our family and friends. We explore ways to earn more money, get out of debt, and build an emergency fund. We talk about the psychology of money management, and we share tips and tricks for making the most of your savings and your career
However, in 2012 let's take an oath to grow money and invest it the right way! The following are some of the steps you can follow to increase your money

Step #1: Set financial goals
For your goals to be effective, they have to be personal. They have to mean something to you.  Example, will save money for travel, will buy a new car, start a business and so on.

Step #2: Track every penny you spend
Maintain a systematic track of your money, where are you spending it? When? etc. This is a very important step.

Step #3: Develop a budget 
After you’ve tracked your spending for a few weeks (or months), use the data you’ve collected to develop a budget. Whatever way you make your budget keep in mind it should be less than what you are earning.

Step #4: Review your bills (and ask for discounts)
At least once each year, you should review the contracts and agreements you have with various banks and service providers. This is also a great time to review your financial accounts to be sure everything still matches your needs.
Step #5: Optimize your accounts
Checking at equal intervals what is happening with you account will be beneficial for you.

Step #6: Start an emergency fund
Just to be on a safer side open an account which hold the funds to be used in an emergency, such as the loss of a job, an illness or a major expense. Such accounts can really come in handy and way to deal with large expenses.

Step #7: Get out of debt
If you want to save money it's priority that you release from all your debts. The debt snowball can give you awesome psychological payoffs, keeping you motivated to stay in the game.

Step #8: Fund your retirement
If you’re young, you probably don’t think you need to start a retirement account. You’re wrong. No matter how old you are, now is the time to begin saving for retirement.

Step #9: Automate your finances
When you make things automatic, you remove the human element, making it more difficult for you to mess things up.

Step #10: Earn extra money
You can meet a lot of your financial goals by reducing your spending and using the right tools. But nothing supercharges your progress like a boost in income. If you ever get a chance try and earn extra income in 2012.

Ref: http://www.getrichslowly.org/blog/2012/01/01/12-steps-to-financial-freedom-in-2012/

Take a resoltuion to 'Invest Smart' this year.

This New year let’s make a resolution to be a better investor! These are the Seven Key Points to Remember next time you plan to invest
 
1. Keep investment papers updated
2. Don’t invest on market trend
3. Keep objectives in mind and so on…
 
To read in detail about things to keep in mind kindly click on the link given below.
 
Not only this, if you are a long term player there are some basics that you ought to know that will keep you away from all the worries.
 
In addition, choosing someone to handle your finances is one of the most important decisions to make. This year if you are planning to select a fin advisor here are some advice from the experts…

For more, kindly click here: http://bit.ly/Ad0W7W