Money Saving Tips

Smart ways to protect your Financial Goals https://www.fundstiger.com/smart-ways-protect-financial-goals/ With the economy slowing down and many investment products failing to meet investors return expectations it is normal for the common people to feel unsure about the market. This could be a cyclical economic phase, but not having a serious relook at your financial goals and your investment portfolio at this stage may prove to be a costly mistake. The following measures will help you tide over difficult times. 1. Invest in Installments Investors may find it risky to invest when the market is volatile. Suppose you invest a lump sum amount, say Rs 1.2 lakh, in a mutual fund scheme at a net asset value of Rs 100 and the market falls thereafter this may negatively impact your entire investment corpus. So, the best way to invest during uncertain market conditions is by fragmenting the corpus and investing in instalments. For example, you may invest Rs 1.2 lakh in a liquid fund and...

Benefits of filing ITR on time https://www.fundstiger.com/benefits-filing-itr-on-time/ Taxpayers are required to file their income tax return (ITR) before the set due date of the assessment year (AY). The government normally gives a 4-month window for taxpayers to consolidate their income details and file their ITR every AY. If the returns are not filed by the given due date, you may face penalties or other consequences. Benefits of filing ITR Filing ITR is an annual activity that is considered to be both social and moral responsibility of every citizen of the country. Apart from that, there are many other benefits which are mentioned below: 1. Loan or Card Company may seek your Return If you are planning to apply for a vehicle loan (2-wheeler or 4-wheeler), house loan, etc., then it is recommended to file your returns as the loan company may request it. Consider filing your spouse’s returns too, if you want to apply for a loan as a co-borrower. In some cases, even credit c...

Money Mistakes to avoid in your 40s https://www.fundstiger.com/money-mistakes-avoid-40s/ The 40s are when most people reach a sweet spot in their personal finances with their incomes going up and expenses stabilizing. It is a time when people look at giving a decisive push to their saving and investment plan to meet many of the big-ticket goals which are not that far away. This stage of money life is also one where the ability to rectify mistakes is restricted because there is only limited time available to make amends. It is, therefore, the time to secure your financial health and pave the way to a better future. To be able to do that you should recognize some common errors that show up in your financial situation in the 40s that you should watch out for and rectify as soon as possible. 1. Overspending High consumer loan or credit card debt can hold you back in the 40s. The repayment is a drain on savings and takes away from the investments that you could otherwise make. Hav...

Home Loan Prepayment Vs Investment https://www.fundstiger.com/home-loans-prepayment-vs-investment/ Should I pay off my home loan or continue investing in the hope of decent returns? This is the most intriguing question which keeps playing on the mind of a large number of home loan takers, particularly in a falling interest rate regime like the current one. After all, when returns on investment avenues are not guaranteed or the current yields are all set to fall further, then doesn’t prepaying high-interest or longer-duration loans like a personal loan or a home loan seem to be a better option? However, is doing that a wise proposition? As opposed to the previous generation that used to save for years to buy their home, the current generation prefers possession of a house very early in their life, which has been made possible due to easy accessibility of home loans. A home loan is generally the biggest financial debt most people take in their lifetime. At the time of availing a lo...

9-Day Loan Mela Disbursed over Rs 81,700 CRORE https://www.fundstiger.com/loan-mela-2019-disbursement/ The Finance Ministry on 14th October said loans worth Rs 81,781 crore were disbursed during the nine-day outreach programme or loan mela organized by banks that began on October 1.Of these, new loans accounted for Rs 34,342 crore.” Further, Finance Minister Nirmala Sitharaman said the banks have sufficient liquidity, and efforts are being made to ensure that due payments are released to the micro, small and medium enterprises (MSME) sector by large corporates. In order to ensure liquidity for small businesses the banks have been asked to provide bill discounting facility to the MSME sector against payments due from the large corporates. According to returns filed by the large corporates to the Ministry of Corporate Affairs, as much as Rs 40,000 crore is due to the MSME sector, she said adding that all efforts would be made to ensure that MSMEs get their dues ahead of Diwali....

Beware of Lottery Fraud https://www.fundstiger.com/lottery-fraud/ In the recent past, there has been a spate of fictitious offers sent out to the general public. People have received phone calls, emails, SMS’s, whatsapp messages, and letters etc. telling them that they have won a lottery. They are subsequently requested to deposit money in a bank account in order to receive their winnings or have been asked to share their bank account details to remit the winning amount. Please note that such claims are false and your bank account details may be at risk. Types of Lottery Scams You may get an email stating you have won a cash prize for a lottery you have never entered. Usually there is a demand for fees (courier fees, taxes, customs duty, shipping, etc.) that need to be paid before the winnings are made available. Their quest will provoke an emotional reaction which in turn will make you send your bank details, address, credit card or personal information. These emails may ...

Diversify your Investment Portfolio https://www.fundstiger.com/diversify-investment-portfolio/ While choosing the asset classes, investors should know the risks and rewards connected with every investment class along with its features to decide if a single or a mix of asset classes is the right bet to meet their requirements. There can be various criteria to classify asset classes. For instance, as per the location or the markets, assets are categorized as domestic securities, foreign and international investments, emerging markets and developed markets. However, the popular asset classes in India are fixed deposits, equity mutual funds, debt mutual fund, and gold, among others. Investors diversify into different asset classes to suit their financial goals and objectives. However, while choosing the asset classes, investors should know the risks and rewards connected with every investment class along with its features to decide if a single or a mix of asset classes is the right...

Part Payment and Foreclosure of Loans https://www.fundstiger.com/partpayment-foreclosure-loans/ A loan is generally popular as it helps to get over a temporary or an urgent need of cash. Loan is often used to buy consumer durables, for wedding expenses, health treatment or even for vacation. Loans are offered by most banks in the country with some variations in charges and fees. If a loan prepaid or paid partly or foreclose there are certain advantages for the customer. Part Payment Part payment of a loan happens when you have a lump sum amount of idle money, but is not equivalent to the entire principal outstanding loan amount. Part payment works because it brings down, the unpaid principal amount, which in turn brings down your EMIs and the total interest you pay. However, it is important to keep in mind that, this concept will help only when you make a significant amount of lump sum money as part payment. This is an easy but an effective way to save down on your interest a...

Where to invest now when interest rates are falling? https://www.fundstiger.com/where-invest-now-interest-rates-falling/ The Reserve Bank of India (RBI) has cut the repo rate five times this year. Banks, following suit have cut interest rates on loans as well as on an investment avenue favoured by many Indians – fixed deposits. Yes, the flipside to the lower interest rate regime is the fall in returns of fixed income products like the FD. The FD is a product that a lot of senior citizens and usually housewives depend on for regular income. So, in a scenario where FD interest rates are declining, what are the options available for those senior citizens and retirees who depend on it to meet their financial needs? Here are some investment avenues that are currently offering higher interest rates as compared to Bank FDs. Source: Economic Times 1.Post Office Time Deposits (POTD) POTD are currently offering 6.9 per cent on one-three year tenure. A five year time deposit is off...

Interest Rates in India https://www.fundstiger.com/interest-rates-india/ How the interest rate on your loan is determined? There are many factors that affect the interest rate that you have to pay on a loan such as credit scores, collateral and so on. The following are the few factors that determine the interest rates: 1. Relation between Credit Score and Interest Rate Credit scores are taken into account while setting interest rates and the borrower with a better score gets a lower interest rate on a loan. 2. Secured Vs. Unsecured Loan and Rate of Borrowing When a loan is secured by collateral, the risk of default by the borrower decreases and hence the risk premium charged may be lower, reducing the rate of borrowing. 3. Tenor and Interest Rate The shorter the tenor of the loan, the lower the risk, since the ability of the borrower to repay the loan is less likely to change and hence lower the rate of interest. 4. Account Conduct and Rate Loan pricing also takes...

How to save money for vacation? https://www.fundstiger.com/save-money-vacation/ Many Indians skip vacations for lack of money. However, going on an international holiday from booking your flight tickets, accommodation to having exotic foods can be quite an expensive affair. If not planned properly, you would only be racking up huge debts, undermining your riveting memories of the vacation. This is where smart financial planning comes into play. Most of the individuals would prefer depositing their funds in a recurring deposit account or savings account to accumulate a sufficient corpus for the trip. Here’s how to save up enough for your next trip: For many millennials, travelling is more important than other financial goals such as buying a car, saving for a house or even investing for retirement. Taking a vacation is not even an option for many people. There’s too much work to do, or not enough in the bank, or maybe children have to attend school or coaching classes. The E...

Banks start linking Loans to Customers’ risk profile https://www.fundstiger.com/banks-linking-loans-customers-risk/ Three public-sector lenders Bank of Baroda, Union Bank of India and Syndicate Bank have taken the first steps in transparently segregating retail loans into their own versions of prime and subprime risk exposure, using third-party credit scores of potential borrowers to offer them different home loan interest rates. Under the new external benchmarking regime, Bank of Baroda, for instance, will be using three credit score slabs from the Credit Information Bureau (India) Ltd (Cibil) to price new home loans. Customers with high credit score, defined in excess of 760 out of a maximum 900, will pay 1% lower interest compared with those reporting scores in 675-724 range the lowest score slab at which loans will be offered. Customers logging scores above 760 will now pay 8.1% on new loans at Bank of Baroda, while those in the third slab will pay 9.1%. The cost of financi...