Monthly Archives: January 2014

Go Steady with Systematic Investment Plan (SIP)

systematic Investment PlanMoney saved is money earned, but if the same money invested is equal to it multiplied. There are many investment avenues available in the market, to suit your lifestyle and financial bearings, each coming their own set of advantages and risks involved with them.

Systematic investment plan (SIP) is great option to invest a fixed amount in a mutual fund at defined intervals. The time period to invest could be monthly or quarterly, with the minimum amount for most of the mutual funds being Rs. 1000 per month.

Following the SIP investment planner is the best way to reduce the susceptibility to market fluctuations. A very powerful tool that channelizes capital preservation and also it turns into substantial wealth creation in the long run.

The time span is as per the scheme you invest under. However it is advisable to invest in a long term plan so as reap maximum benefits. As in the case of SIP you will be investing irrespective of the market conditions. Therefore ensuring the cost averaging to play a vital role and giving you benefits from volatility.

When you buy more units at a lower price due to a fall in the market and at a higher price some lesser number of units due to the soaring market, you average out your investment costs. Let us try to make it simpler, suppose a monthly SIP is for Rs. 10,000 and the funds all Net Asset Value is Rs. 10. The result is 1000 units being credited to you. However the following month on account of fluctuating market conditions, if the funds NAV falls to Rs. 5 you will get Rs. 2000 units. Thus lowering your average purchase cost. A SIP helps you buy more when the stock market is falling and less when it is rising.

Investors keen on building wealth SIP is an excellent tool. It doesn’t demand for a one-time lump sum investment. This pattern of regularly investing helps build discipline in investors. The best part is you can go for a SIP according to your goal- your child education, marriage of children or your investment plan.

SIP proves to be most effective when buying equity-based funds. The NAVs of these funds can vary widely. Through rupee cost averaging a SIP can make this volatility work for your benefit. However rupee cost averaging may not work well if the market keeps on an up-trend.

Investors of all age can make use of Systematic Investment Plan. During weak market conditions never discontinue a SIP or even when the market falls steeply, as the very purpose of investing in SIP shall be defeated. SIP is apt for an investor who does not have a chunk amount to invest or is sceptical about the risk involved.


Ease and convenience through an EMI calculator for Personal Loans

A happy moment is when you see no financial barriers whatsoever. You and your family are living happily with sufficient funds. It is at this time, that you feel relaxed without any worries whatsoever. Unfortunately, life is not always a fairy tale. At least once, there comes a situation where you might face with a major financial problem. It might be a huge loss in a business venture or just some shortage of money to fulfil your short term requirements.

I need money
I need money

At such times, there is one tool that aims to get you out of this situation. Its non-other than a personal loan. With this, you can resolve a number of personal and family problems. However, there are certain points that you should take note of before you select a personal loan. Here are some tips you can have a glance so that you get a secured loan easily.

Never apply for a loan in a hurry especially personal loans. First and foremost you have to make sure that the loan you choose fits your financial goals and requirement. Read all the terms and conditions that the loan works under. After you are fine with it, now is the time to get into the main factors determining the perfect personal loan for you. EMI (Equated Monthly Instalments) is what we you need to make each month. However, EMIs are offered differently by different banks depending on the interest rates charged. An EMI calculator for personal loans can help you know the exact figure.

 EMI calculator for Personal Loan from Axis Bank

With the advent, the world of internet has taken over banking too. A person can now do everything from applying for a loan to making payments anywhere around the world. Nowadays, the websites of every well-known bank or financial company provides a person with all the necessary information regarding their financial products. No more is there a need to personally visit a branch and stand in long queues to just access information. An EMI calculator is an application to let a person know what she/he is going to pay each month even before applying for a personal loan in India.

All you need to enter is simple fields like the required loan amount, the interest rate and tenure of the loan. In less than a second, the application lets you know your EMI amount. This comes in handy when you are searching for the perfect loan over the web as one would obviously select a loan that comes at a lower EMI. However, lower EMIs don’t always indicate a quality loan. Also take into consideration the reputation and service of the bank.