Last time a good friend of mine called up asking where to invest as she is getting some amount in December and haven't invested to save tax so far. The first thing that came to my mind was PPF account , keeping in mind the long term return she was looking for. I was excited to pitter patter out plans after plans, unable to hold my excitement and test my knowledge.
Some of them which i suggested in a quick haste are
1) PPF
This is perhaps the only investment where tax is not attracted even on the interest amount and hence totally Tax free. While one can have different views like short term investments, PPF is considered as a long term investment, particularly after your retirement
2) Life Insurance
One must is a Life insurance,be it at LIC or some other agencies. Whereas others are treated as investments, Life insurance is an Insurance and not an investment. One has to understand the difference between INSURANCE and INVESTMENT.
3) ULIP Linked Mutual funds
Currently market is down and if someone is looking for a long term investment, then ULIP linked Mutual funds are good investments. You will probably end up with more then 34% interest after 10-15 years time. But one should make sure to invest only the excess amount he has and not the earnings.
Rest are small investment plans that might come to mind...
Well i hope i was right in my decsions that was made in a matter of 5 minutes of trunk call.
1 Dec 2008
Investment at a glance...
Last time a good friend of mine called up asking where to invest as she is getting some amount in December and haven't invested to save tax so far. The first thing that came to my mind was PPF account , keeping in mind the long term return she was looking for. I was excited to pitter patter out plans after plans, unable to hold my excitement and test my knowledge.
Some of them which i suggested in a quick haste are
1) PPF
This is perhaps the only investment where tax is not attracted even on the interest amount and hence totally Tax free. While one can have different views like short term investments, PPF is considered as a long term investment, particularly after your retirement
2) Life Insurance
One must is a Life insurance,be it at LIC or some other agencies. Whereas others are treated as investments, Life insurance is an Insurance and not an investment. One has to understand the difference between INSURANCE and INVESTMENT.
3) ULIP Linked Mutual funds
Currently market is down and if someone is looking for a long term investment, then ULIP linked Mutual funds are good investments. You will probably end up with more then 34% interest after 10-15 years time. But one should make sure to invest only the excess amount he has and not the earnings.
Rest are small investment plans that might come to mind...
Well i hope i was right in my decsions that was made in a matter of 5 minutes of trunk call.
Some of them which i suggested in a quick haste are
1) PPF
This is perhaps the only investment where tax is not attracted even on the interest amount and hence totally Tax free. While one can have different views like short term investments, PPF is considered as a long term investment, particularly after your retirement
2) Life Insurance
One must is a Life insurance,be it at LIC or some other agencies. Whereas others are treated as investments, Life insurance is an Insurance and not an investment. One has to understand the difference between INSURANCE and INVESTMENT.
3) ULIP Linked Mutual funds
Currently market is down and if someone is looking for a long term investment, then ULIP linked Mutual funds are good investments. You will probably end up with more then 34% interest after 10-15 years time. But one should make sure to invest only the excess amount he has and not the earnings.
Rest are small investment plans that might come to mind...
Well i hope i was right in my decsions that was made in a matter of 5 minutes of trunk call.
30 Nov 2008
Nothing much to write..
I think i am running out of words at the moment. If you are wondering why i am writing this post, then let me tell you that there are times when you want to yell out, speak out.. with no reason or without any direction. Sometimes i remember those whimsical moments spent in younger days, which when set upon mind to do a thing or get a thing - i set my foot forward to get it without knowing the consequences.
Today looking at those memories... some sweet, some frightening, some funny and some emotional... makes me feel complete as what i am. There can be two things then - i am too busy with my life or i am being whimsical again! There were many times when i feel like writing and yet did not find the resource .. internet, time, mood etc and yet there are times when the resources are abundant but not in mood to write...or run out of words.. Maybe this is one of the later.
Nowadays, i think in numbers and value rather than the price. Maybe i am being materialistic, maybe i am being realistic, or maybe i am understanding the economics of life.. whatever it is, i am sure that i am benefiting out of it..Life isn't the same it was years back. Today we talk in lacs, be it value or price.
It seems that the cost of living has increased but cost of life is nothing!
My due regards to those heroes, who have laid down their lives in saving others.
My prayers and wishes to those who have survived and yet have to live with the trauma of being a part of the Mumbai attacks. Our heroes have not given their lives for nothing, but with a dream, a hope of a better India.
Today looking at those memories... some sweet, some frightening, some funny and some emotional... makes me feel complete as what i am. There can be two things then - i am too busy with my life or i am being whimsical again! There were many times when i feel like writing and yet did not find the resource .. internet, time, mood etc and yet there are times when the resources are abundant but not in mood to write...or run out of words.. Maybe this is one of the later.
Nowadays, i think in numbers and value rather than the price. Maybe i am being materialistic, maybe i am being realistic, or maybe i am understanding the economics of life.. whatever it is, i am sure that i am benefiting out of it..Life isn't the same it was years back. Today we talk in lacs, be it value or price.
It seems that the cost of living has increased but cost of life is nothing!
My due regards to those heroes, who have laid down their lives in saving others.
My prayers and wishes to those who have survived and yet have to live with the trauma of being a part of the Mumbai attacks. Our heroes have not given their lives for nothing, but with a dream, a hope of a better India.
29 Nov 2008
LIfe's like that
Terror strikes again in Mumbai, everyone is afraid everywhere. Maybe because of the place i come from, or maybe coz i am just busy with my own life - i did not feel the heat of it!
What was funny or say the lighter side of the attack was the few calls i got the next morning.
The first one was from a friend who owes me a huge sum of money.
The second was a friend who was also an LIC agent for me :)
What was funny or say the lighter side of the attack was the few calls i got the next morning.
The first one was from a friend who owes me a huge sum of money.
The second was a friend who was also an LIC agent for me :)
Need Adminstrator access in Windows?
Many a times, you might have access to a PC but need Administrator privilege to download a file,make some changes, or for anything else where admin privilege is needed. There can be few ways to solve the problem, some of them which i know are
1) Using Winternals ERD Commander (with locksmith)
Winternals has been bought by Microsoft and they are looking into the efforts made by them, repackaging them in form of small modules and programs categorized in their website. You can find them art Windows Sysinternals.
You can also manually download the ERD Commander software from torrents available or other underground sites.
2) Bypassing Admin password using Windows XP CD (Bootable)
To do the same, please follow the following step by step procedure..
1. Place the XP CD in -rom and start your computer ((CD should be bootable)
2. Press any key to boot from cd
3. Once you get in, the first screen will indicate that Setup is inspecting your system and loading files.
4. When you get to the Welcome to Setup screen, press ENTER to Setup Windows now
5. The Licensing Agreement comes next - Press F8 to accept it.
6. The next screen is the Setup screen which gives you the option to do a Repair.
It should read something like “If one of the following Windows XP installations is damaged, Setup can try to repair it”
Use the up and down arrow keys to select your XP installation (if you only have one, it should already be selected) and press R to begin the Repair process.
7. Let the Repair run. Setup will now check your disks and then start copying files which can take several minutes.
8. Shortly after the Copying Files stage, you will be required to reboot. (this will happen automatically – you will see a progress bar stating “Your computer will reboot in 15 seconds”
9. During the reboot, do not make the mistake of “pressing any key” to boot from the CD again! Setup will resume automatically with the standard billboard screens and you will notice Installing Windows is highlighted.
10. Keep your eye on the lower left hand side of the screen and when you see the Installing Devices progress bar, press SHIFT + F10. This is the security hole! A command console will now open up giving you the potential for wide access to your system.
11. At the prompt, type NUSRMGR.CPL and press Enter. Yo! You have just gained graphical access to your User Accounts in the Control Panel.
12. Now simply pick the account you need to change and remove or change your password as you prefer. If you want to log on without having to enter your new password, you can type control userpasswords2 at the prompt and choose to log on without being asked for password. After you’ve made your changes close the windows, exit the command box and continue on with the Repair (have your Product key handy).
13. Once the Repair is done, you will be able to log on with your new password (or without a password if you chose not to use one or if you chose not to be asked for a password). Your programs and personalized settings should remain intact.
You cannot cancel install after making the changes and expect to logon with your new password.
Courtesy:
Techtrax
Windows Sysinternals
1) Using Winternals ERD Commander (with locksmith)
Winternals has been bought by Microsoft and they are looking into the efforts made by them, repackaging them in form of small modules and programs categorized in their website. You can find them art Windows Sysinternals.
You can also manually download the ERD Commander software from torrents available or other underground sites.
2) Bypassing Admin password using Windows XP CD (Bootable)
To do the same, please follow the following step by step procedure..
1. Place the XP CD in -rom and start your computer ((CD should be bootable)
2. Press any key to boot from cd
3. Once you get in, the first screen will indicate that Setup is inspecting your system and loading files.
4. When you get to the Welcome to Setup screen, press ENTER to Setup Windows now
5. The Licensing Agreement comes next - Press F8 to accept it.
6. The next screen is the Setup screen which gives you the option to do a Repair.
It should read something like “If one of the following Windows XP installations is damaged, Setup can try to repair it”
Use the up and down arrow keys to select your XP installation (if you only have one, it should already be selected) and press R to begin the Repair process.
7. Let the Repair run. Setup will now check your disks and then start copying files which can take several minutes.
8. Shortly after the Copying Files stage, you will be required to reboot. (this will happen automatically – you will see a progress bar stating “Your computer will reboot in 15 seconds”
9. During the reboot, do not make the mistake of “pressing any key” to boot from the CD again! Setup will resume automatically with the standard billboard screens and you will notice Installing Windows is highlighted.
10. Keep your eye on the lower left hand side of the screen and when you see the Installing Devices progress bar, press SHIFT + F10. This is the security hole! A command console will now open up giving you the potential for wide access to your system.
11. At the prompt, type NUSRMGR.CPL and press Enter. Yo! You have just gained graphical access to your User Accounts in the Control Panel.
12. Now simply pick the account you need to change and remove or change your password as you prefer. If you want to log on without having to enter your new password, you can type control userpasswords2 at the prompt and choose to log on without being asked for password. After you’ve made your changes close the windows, exit the command box and continue on with the Repair (have your Product key handy).
13. Once the Repair is done, you will be able to log on with your new password (or without a password if you chose not to use one or if you chose not to be asked for a password). Your programs and personalized settings should remain intact.
You cannot cancel install after making the changes and expect to logon with your new password.
Cancelling will just result in Setup resuming at bootup and your changes will be lost.
Courtesy:
Techtrax
Windows Sysinternals
27 Nov 2008
How to save more Tax!
Are you sure that you have done the year's Tax planning? Think again.
You must have already saved tax under Sec 80 C by investing upto Rs 1,00,000 in various investment instruments. But did you know that you can save more tax than that by investing more?
The answer is HUF (Hindu Undivided family). An HUF is a good tax-cutter since it is treated as a separate entity and taxed accordingly. As per Wikipedia, a Hindu Joint Family or Hindu undivided family (HUF) or a Joint Hindu Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent, consisting of many generations living under the same roof.
How does an HUF reduce taxes?
An HUF is an efficient tool to plan taxes because, under the income tax laws, it is treated as a separate entity and assessed to tax as a separate entity. Accordingly, an HUF is eligible for all the deductions and exemptions, including the benefit of the basic limit chargeable to tax and wealth tax that’s available to an individual. And so, like an individual, an HUF’s income is tax-free up to Rs 1,00,000. It also enjoys the exemption under Sections 54 and 54F in respect of capital gains, the deductions under Sections 80CCA, 80CCB, 80D, 80G, 80GG and 80C
The HUF is also eligible for the following deductions: Section 80D, for the insurance premium paid on the health of its members; Section 80G, for any donations it makes.
Then, under Section - 80C, it gets a deduction in respect of the premium paid on life insurance policies for its members.
What income is regarded as HUF income?
All the income that arises on the utilisation of the HUF’s assets and on the investment of its funds is regarded as the HUF’s income that is assessed separately and chargeable to tax. Importantly, the income should have been earned using HUF property or funds or property only; if it arises on account of the personal investments of any member, it will generally be regarded as the individual income of the member.
What are the options?
1) BORROW FUNDS: The capital of an HUF can also be enhanced by borrowing funds from people who are not members. If the borrowing is specifically in the HUF’s name, and it is thereafter invested in the HUF’s name, the income arising on the investment will be regarded as the income of the HUF.
2) TRANSFER individual funds to the HUF and then invest the money in tax-free instruments. Since the income from such investments will be tax-free, it will not be clubbed with the individual’s income. The income arising on the reinvestment of the tax-free income (which may be in taxable income-yielding assets) will also not be clubbed, since only the income arising on transferred amounts is clubbed.
Courtesy:
Wikepedia
Outlookmoney.com
HDFC Bank Ltd.
You must have already saved tax under Sec 80 C by investing upto Rs 1,00,000 in various investment instruments. But did you know that you can save more tax than that by investing more?
The answer is HUF (Hindu Undivided family). An HUF is a good tax-cutter since it is treated as a separate entity and taxed accordingly. As per Wikipedia, a Hindu Joint Family or Hindu undivided family (HUF) or a Joint Hindu Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent, consisting of many generations living under the same roof.
How does an HUF reduce taxes?
An HUF is an efficient tool to plan taxes because, under the income tax laws, it is treated as a separate entity and assessed to tax as a separate entity. Accordingly, an HUF is eligible for all the deductions and exemptions, including the benefit of the basic limit chargeable to tax and wealth tax that’s available to an individual. And so, like an individual, an HUF’s income is tax-free up to Rs 1,00,000. It also enjoys the exemption under Sections 54 and 54F in respect of capital gains, the deductions under Sections 80CCA, 80CCB, 80D, 80G, 80GG and 80C
The HUF is also eligible for the following deductions: Section 80D, for the insurance premium paid on the health of its members; Section 80G, for any donations it makes.
Then, under Section - 80C, it gets a deduction in respect of the premium paid on life insurance policies for its members.
What income is regarded as HUF income?
All the income that arises on the utilisation of the HUF’s assets and on the investment of its funds is regarded as the HUF’s income that is assessed separately and chargeable to tax. Importantly, the income should have been earned using HUF property or funds or property only; if it arises on account of the personal investments of any member, it will generally be regarded as the individual income of the member.
What are the options?
1) BORROW FUNDS: The capital of an HUF can also be enhanced by borrowing funds from people who are not members. If the borrowing is specifically in the HUF’s name, and it is thereafter invested in the HUF’s name, the income arising on the investment will be regarded as the income of the HUF.
2) TRANSFER individual funds to the HUF and then invest the money in tax-free instruments. Since the income from such investments will be tax-free, it will not be clubbed with the individual’s income. The income arising on the reinvestment of the tax-free income (which may be in taxable income-yielding assets) will also not be clubbed, since only the income arising on transferred amounts is clubbed.
Courtesy:
Wikepedia
Outlookmoney.com
HDFC Bank Ltd.
How to save more Tax!
Are you sure that you have done the year's Tax planning? Think again.
You must have already saved tax under Sec 80 C by investing upto Rs 1,00,000 in various investment instruments. But did you know that you can save more tax than that by investing more?
The answer is HUF (Hindu Undivided family). An HUF is a good tax-cutter since it is treated as a separate entity and taxed accordingly. As per Wikipedia, a Hindu Joint Family or Hindu undivided family (HUF) or a Joint Hindu Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent, consisting of many generations living under the same roof.
How does an HUF reduce taxes?
An HUF is an efficient tool to plan taxes because, under the income tax laws, it is treated as a separate entity and assessed to tax as a separate entity. Accordingly, an HUF is eligible for all the deductions and exemptions, including the benefit of the basic limit chargeable to tax and wealth tax that’s available to an individual. And so, like an individual, an HUF’s income is tax-free up to Rs 1,00,000. It also enjoys the exemption under Sections 54 and 54F in respect of capital gains, the deductions under Sections 80CCA, 80CCB, 80D, 80G, 80GG and 80C
The HUF is also eligible for the following deductions: Section 80D, for the insurance premium paid on the health of its members; Section 80G, for any donations it makes.
Then, under Section - 80C, it gets a deduction in respect of the premium paid on life insurance policies for its members.
What income is regarded as HUF income?
All the income that arises on the utilisation of the HUF’s assets and on the investment of its funds is regarded as the HUF’s income that is assessed separately and chargeable to tax. Importantly, the income should have been earned using HUF property or funds or property only; if it arises on account of the personal investments of any member, it will generally be regarded as the individual income of the member.
What are the options?
1) BORROW FUNDS: The capital of an HUF can also be enhanced by borrowing funds from people who are not members. If the borrowing is specifically in the HUF’s name, and it is thereafter invested in the HUF’s name, the income arising on the investment will be regarded as the income of the HUF.
2) TRANSFER individual funds to the HUF and then invest the money in tax-free instruments. Since the income from such investments will be tax-free, it will not be clubbed with the individual’s income. The income arising on the reinvestment of the tax-free income (which may be in taxable income-yielding assets) will also not be clubbed, since only the income arising on transferred amounts is clubbed.
Courtesy:
Wikepedia
Outlookmoney.com
HDFC Bank Ltd.
You must have already saved tax under Sec 80 C by investing upto Rs 1,00,000 in various investment instruments. But did you know that you can save more tax than that by investing more?
The answer is HUF (Hindu Undivided family). An HUF is a good tax-cutter since it is treated as a separate entity and taxed accordingly. As per Wikipedia, a Hindu Joint Family or Hindu undivided family (HUF) or a Joint Hindu Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent, consisting of many generations living under the same roof.
How does an HUF reduce taxes?
An HUF is an efficient tool to plan taxes because, under the income tax laws, it is treated as a separate entity and assessed to tax as a separate entity. Accordingly, an HUF is eligible for all the deductions and exemptions, including the benefit of the basic limit chargeable to tax and wealth tax that’s available to an individual. And so, like an individual, an HUF’s income is tax-free up to Rs 1,00,000. It also enjoys the exemption under Sections 54 and 54F in respect of capital gains, the deductions under Sections 80CCA, 80CCB, 80D, 80G, 80GG and 80C
The HUF is also eligible for the following deductions: Section 80D, for the insurance premium paid on the health of its members; Section 80G, for any donations it makes.
Then, under Section - 80C, it gets a deduction in respect of the premium paid on life insurance policies for its members.
What income is regarded as HUF income?
All the income that arises on the utilisation of the HUF’s assets and on the investment of its funds is regarded as the HUF’s income that is assessed separately and chargeable to tax. Importantly, the income should have been earned using HUF property or funds or property only; if it arises on account of the personal investments of any member, it will generally be regarded as the individual income of the member.
What are the options?
1) BORROW FUNDS: The capital of an HUF can also be enhanced by borrowing funds from people who are not members. If the borrowing is specifically in the HUF’s name, and it is thereafter invested in the HUF’s name, the income arising on the investment will be regarded as the income of the HUF.
2) TRANSFER individual funds to the HUF and then invest the money in tax-free instruments. Since the income from such investments will be tax-free, it will not be clubbed with the individual’s income. The income arising on the reinvestment of the tax-free income (which may be in taxable income-yielding assets) will also not be clubbed, since only the income arising on transferred amounts is clubbed.
Courtesy:
Wikepedia
Outlookmoney.com
HDFC Bank Ltd.
23 Nov 2008
Honeymoon period over
The first 3/4 months of work in my new workplace is what my Boss refer to as Honeymoon period, where I like a newly wed Groom have to just sit and watch and learn what was going on around me. In those 3/4 months, I have indeed learnt so many things which the bookish knowledge i had surpassed fluently word by word was of no use. I had committed so many mistakes which was affordable to the organization, but i am happy that i am able to learn from the mistakes rather than just sulk about it. My boss like any other good superior would pass down the value addition he had in all these years in terms of experience and profession, and making it rather simple for me to understand.
Now that its been more than 6 months, with more mistakes and many blood boiling moments...as everyone do,i am also learning to bear the blow of life bit by bit. Last time i realised honeymoon period is over was when i was dressed down by Boss for my mistakes committed and asked me the man hours i put in my work. A man should hit one at his weakness as someone said. At the moment, my job is my livelihood, my weakness and thats where he hit me. From that moment, I worked more harder and tried to show the work i have been puttind my daily sweat. There was no shortcut in success, i knew, but i realised that i had to work smartly rather than slog like others. I knew i was different from others, my basic disadvantage was the domain in which i was working - which was new to me. So with some thoughts, i kept working but also kept in mind my livelihood, with serious thingking on the work.
Its more than 3 months now post honeymoon period, yet i am dragging along.. with each passing day, i get to learn new things in my domain. The disadvantage was that i did not get to do any ground work myself but have to handover to Vendors which were there to work for the Bank. Now that the honeymoon period is over, less time is left to write blogs and more time to think of investments and savings. Thanks for reading, keep reading..
Now that its been more than 6 months, with more mistakes and many blood boiling moments...as everyone do,i am also learning to bear the blow of life bit by bit. Last time i realised honeymoon period is over was when i was dressed down by Boss for my mistakes committed and asked me the man hours i put in my work. A man should hit one at his weakness as someone said. At the moment, my job is my livelihood, my weakness and thats where he hit me. From that moment, I worked more harder and tried to show the work i have been puttind my daily sweat. There was no shortcut in success, i knew, but i realised that i had to work smartly rather than slog like others. I knew i was different from others, my basic disadvantage was the domain in which i was working - which was new to me. So with some thoughts, i kept working but also kept in mind my livelihood, with serious thingking on the work.
Its more than 3 months now post honeymoon period, yet i am dragging along.. with each passing day, i get to learn new things in my domain. The disadvantage was that i did not get to do any ground work myself but have to handover to Vendors which were there to work for the Bank. Now that the honeymoon period is over, less time is left to write blogs and more time to think of investments and savings. Thanks for reading, keep reading..
19 Nov 2008
Invetment areas - Continued
In my last post, i had mentioned about my retirement plans. Well i was serious about it.I have started working for just 6 months now, many people might even laugh at me when i talk about retirement plans but i do have a reason for that. I want some large amount of money post retirement, so that i do not have to depend on anyone else in my old age. In 30 years time, with the rupee depreciating .. i would need lots of money in terms of today's price.
This Monday i had inquired about a ULIP linked retirement plan, the scheme was easy but the calculations were not to my understanding. As per the Relationship Manager (RM) , if i invest 20k every year for 30 years i would be reaping in lacs per annum and not 20k.
Lets see how i calculated.
Amount i would invest = 20,000 * (60-26) = 6,80,000 (flat, without interest)
As per the RM, i would be getting some 54,000 per month till i die. That is 64 lacs something per annum!! Even if i die, the remaining amount will be handed over to the person i would be nominating in the agreement. I am not sure how he calculated that, lets wait and watch. As of now, i have thought of investing in this ULIP linked Retirement plan. In the mean time i will ask the RM and share it with you.
So this is my investment area no 4, i guess
4) ULIP linked Retirement plan
This plan is linked to market condition prevailing at that time. However this is a long term investment and not for short term plan, so if you are looking for a short term gains, you are at the wrong place. Govt offers a normal rate of some 10% on ULIP plans, as per the RM the interest rate will be about 24%+
Advantages:
1) Long term plan
2) Less dependency on others post retirement
3) Tax benefit investment
Disadvantages:
1) The interest amount is taxable. Of the whole amount post retirement, 1/3 is non taxable whereas 2/3 is taxable
2) You have to look out for finances at present, as you wont reap the benefits now
This Monday i had inquired about a ULIP linked retirement plan, the scheme was easy but the calculations were not to my understanding. As per the Relationship Manager (RM) , if i invest 20k every year for 30 years i would be reaping in lacs per annum and not 20k.
Lets see how i calculated.
Amount i would invest = 20,000 * (60-26) = 6,80,000 (flat, without interest)
As per the RM, i would be getting some 54,000 per month till i die. That is 64 lacs something per annum!! Even if i die, the remaining amount will be handed over to the person i would be nominating in the agreement. I am not sure how he calculated that, lets wait and watch. As of now, i have thought of investing in this ULIP linked Retirement plan. In the mean time i will ask the RM and share it with you.
So this is my investment area no 4, i guess
4) ULIP linked Retirement plan
This plan is linked to market condition prevailing at that time. However this is a long term investment and not for short term plan, so if you are looking for a short term gains, you are at the wrong place. Govt offers a normal rate of some 10% on ULIP plans, as per the RM the interest rate will be about 24%+
Advantages:
1) Long term plan
2) Less dependency on others post retirement
3) Tax benefit investment
Disadvantages:
1) The interest amount is taxable. Of the whole amount post retirement, 1/3 is non taxable whereas 2/3 is taxable
2) You have to look out for finances at present, as you wont reap the benefits now
16 Nov 2008
Investment areas - Managing your portfolio
In today's contracting market, it is rightly said that Cash is king! With the Stock markets crashing, people have lost faith in stocks. There are various others investment areas where one can invest besides stocks with less risk, like the ULIP Plans which are based on the risk taking capacity of the investor. Some of the investment instruments one can look to invest and diversify the portfolio in such prevailing condition are as follows :
1) Public Provident Fund (PPF)
The Public Provident Fund Scheme
is a statutory scheme of the Central Government of India.
Some of the features are as listed below:
1) Post retirement long term plan
2) Easily accessible through Post offices across India
3) The funds accumulated can be taken out based on needs, depending on the rules laid down by the Govt
4) Redeemable upon retirement
5) The interest on deposits is totally
tax free.
2) Systematic Investment Plan (SIP)
An SIP is a vehicle offered by mutual funds to help you save regularly.
It is just like a recurring deposit with the post office or bank where you put in a small amount every month. The difference here is that the amount is invested in a mutual fund. This is basically a long term investment where you wish to achieve a definite amount for some particular reason..say for your childrens education or maybe post retirement plans
Advantages:
1) Be a regular investor
2) Commitment in investments
3) Streamlined perspective of what you are going to get
4) A clear picture of your future demands
5) Doesn't need very large premium
6) Can be shown as an investment
3) Term Assurance Plans
Have you ever thought of what will happen to your family when you are not there? Will they have to go through the dilemma and bear the loans you have taken for car or home? Do not worry, for they will be covered by Term assurance plans. They basically assure you the premium you have asked to cover for and only can be recovered when either the plan matures or upon your demise.
Term life insurance or term assurance is life insurance which provides coverage for a limited period of time, the relevant term. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.
Advantages:
1) Can be shown as an investment
2) Peace of mind for investors
3) Roll back plan in case of any misfortune that happen to you
Courtesy:
1) Wikepedia
2) Bajaj Capital
3) LIC India Ltd.
4) HDFC Bank Ltd.
1) Public Provident Fund (PPF)
The Public Provident Fund Scheme
is a statutory scheme of the Central Government of India.
Some of the features are as listed below:
- The Scheme is for 15 years.
- The rate of interest is 8% compounded
annually. - One deposit with a minimum amount
of Rs.500/- is mandatory in each financial year. - Joint account is not permissible.
- Those who are contributing to GPF
Fund or EDF account can also open a PPF account. - The PPF scheme is operated through
Post Office and Nationalized banks. - PPF account can be opened either in
Post Office or in a Bank. - Account is transferable from one Post
office to another and from Post office to Bank and
from Bank to Post office. - Deposits in PPF qualify for rebate
under section 80-C of Income Tax Act. - Best for long term investment.
1) Post retirement long term plan
2) Easily accessible through Post offices across India
3) The funds accumulated can be taken out based on needs, depending on the rules laid down by the Govt
4) Redeemable upon retirement
5) The interest on deposits is totally
tax free.
2) Systematic Investment Plan (SIP)
An SIP is a vehicle offered by mutual funds to help you save regularly.
It is just like a recurring deposit with the post office or bank where you put in a small amount every month. The difference here is that the amount is invested in a mutual fund. This is basically a long term investment where you wish to achieve a definite amount for some particular reason..say for your childrens education or maybe post retirement plans
Advantages:
1) Be a regular investor
2) Commitment in investments
3) Streamlined perspective of what you are going to get
4) A clear picture of your future demands
5) Doesn't need very large premium
6) Can be shown as an investment
3) Term Assurance Plans
Have you ever thought of what will happen to your family when you are not there? Will they have to go through the dilemma and bear the loans you have taken for car or home? Do not worry, for they will be covered by Term assurance plans. They basically assure you the premium you have asked to cover for and only can be recovered when either the plan matures or upon your demise.
Term life insurance or term assurance is life insurance which provides coverage for a limited period of time, the relevant term. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.
Advantages:
1) Can be shown as an investment
2) Peace of mind for investors
3) Roll back plan in case of any misfortune that happen to you
Courtesy:
1) Wikepedia
2) Bajaj Capital
3) LIC India Ltd.
4) HDFC Bank Ltd.
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