March 2017 India's First Free Online / On-call Financial Advisory India’s First Free Online / On-call Financial Advisory / Best Free Financial Advice

The Goods and service tax (GST) is passed by Rajya Sabha recently. The GST bill which was pending since so many years will be a reality soon. The GST will be a game changer for the Indian economy as it will abolish many indirect taxes and bring all of them in the single window.

What is Goods Service Tax (GST)?

GST or Goods and Service Tax  is common tax system proposed by the government. As the name suggest it is a common tax for Goods and Services. In simple words today we are paying multiple taxes such as excise duty, custom duty, value added tax, octroi, service tax etc. Once GST is implemented all these taxes will be replaced by a single tax which is called as GST. GST rate is expected to be 18-20% which is lesser than tax burden of indirect taxes.

10 benefits of Goods Service Tax (GST)  

 ➡ Elimination of Multiple Taxes

The biggest benefit of GST is an elimination of multiple indirect taxes. All taxes that currently exist will not be in picture. This means current taxes like excise, octroi, sales tax, CENVAT, Service tax, turnover tax etc will not be applicable and all that will fall under common tax called as GST.

 ➡ Saving more Money

For a common man, GST applicability means the elimination of double charging in the system. This will reduce the price of goods and services & help common man for saving more money.

It is expected that price of FMCG products, small cars, cinema tickets, electrical wires etc is expected to reduce.

 ➡ Ease of business

GST will bring one country one tax concept. This will prevent unhealthy competition among states. It will be beneficial to do interstate business.

 ➡ Easy Tax Filing and Documentation   

For a businessman, GST will be a boon. No multiple taxes means compliance and documentation will be easy. Return filing, tax payment, and refund process will easy and hassle free.

 ➡ Cascading Effect reduction

GST will be applicable at all stages from manufacturing to consumption. GST will provide tax credit benefit at every stage in chain. Today at every stage margin is added and tax is paid on whole amount, in GST you will have tax credit benefit and tax will be paid on margin amount only. It will reduce cascading effect of tax thereby reducing cost of product.

 ➡ More Employment

As GST will reduce cost of product it is expected that demand of product will increase and to meet the demand, supply has to go up. The requirement of more supply will be addressed by only increasing employment.

 ➡ Increase in GDP

As demand will grow naturally production will grow and hence it will increase gross domestic product. It is estimated that GDP will grow by 1-2% due to GST.

 ➡ Reduction in Tax Evasion  

GST is a single tax which will include various taxes, making the system efficient with very little chances of corruption and Tax Evasion.

 ➡ More Competitive Product

As GST will address cascading effect of tax, inter-state tax, high logistics cost it will make manufacturing more competitive. This will bring advantage to businessman and consumer.

 ➡ Increase in Revenue

GST will replace all 17 indirect taxes with single tax. Increase in product demand will ultimately increase tax revenue for state and central government.

Goods and service tax is a boon for the Indian economy and the common man. It is a welcome step taken by the government.

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Are you investing in equity mutual funds or planning to invest?


While you might have done your research and reading about investing in mutual fund, but I am sure you still do not have 100% clear idea about what does it mean to invest in a mutual fund. In this article my attempt is to make you understand what exactly you should be expecting out of your investments in equity mutual funds.

A lot of investors are approached by advisors and agents who sell equity mutual funds to them in the name of “high returns”. But investors are not informed about the risks associated with it. Because of this most of the investors redeem their investments if markets fall or if the returns are not that great after a year or so and hence lose out on getting the benefits of mutual funds over a long term.

This happens because in investors mind a mutual fund is all about “getting high returns”.

So it’s very important to clear all the wrong notions about equity mutual funds and set a clear understanding about them in your mind so that you get the best out of your mutual funds investments.

3 important points to know before you invest in equity mutual funds

So in this article, I am listing various important points you should know if you are investing in an equity mutual funds or planning to do same.

1 – You are investing in a diversified businesses

Investing in an equity mutual fund is not like putting money in a fixed deposit or real estate. When you invest in an equity mutual fund, it invests your money in a portfolio of companies.

Equity Mutual funds are a way to invest in a number of stocks using one single investment and get it managed by an experienced and well qualified fund manager.

For example, Birla Sun life Frontline Equity had 80 stocks in its portfolio as on 30th Dec 2016, as per money control website. Which means that if you are investing in this mutual funds, you are actually investing in 80 companies.

2 – You are investing for long term

No business earns exceptional returns over a short term. Now as you know that you are actually investing in a business when you are investing in a equity mutual funds, that too in multiple companies, the great returns will come over a long term.

Some companies will not do great, some of them will do average and some of them will grow exceptionally. And when you do the average, you will get very good returns.

The best part is that the chances of great returns are much higher because you are diversified across various sectors, companies, management and size.

3 – You are going to face volatility

“Mutual Funds investments are subject to market risk, please read the offer document carefully before investing”

You will hear this line often in the mutual funds advertisements on TV. A lot of first time investors who do not understand equity investments think that “Market Risk” here means that their money is at risk and they can lose all their money by investing in stock market or mutual funds.

Mutual Funds are Volatile

That might be true with one particular low quality stock. But with mutual funds, it’s far from truth. Dozens of quality stocks portfolio which is monitored regularly can bring in some ups and downs in short term, but your money will not be lost at all.

All you can expect is VOLATILITY with your mutual funds investments. Your investments value can go up one day and then down one day, and then again down another day and again down 2nd day and then boooom… UP on the third day and then again down and again up and up and up.

But you need to understand a very important thing. Volatility is an inherent part of mutual funds investments as it’s invests in stocks, but it’s more of a short term phenomena. You need to sit tight and look at the long term trend and how it moves.

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Think for a moment that you have 3 yrs worth of your salary in your bank account.

How does it feel?

So if you earn Rs 10 lacs a year, you have Rs 30 lacs lying in your savings (other than real estate). If you earn 20 lacs per annum, its 60 lacs!

But in real life, most of the people do not take enough effort to save more money. It’s on their wish list to “start saving from next month”, but the motivations soon fizzles out. Most of the people are so busy and stuck with various problems in life that with each day, saving money for future remains a distant dream for many.

Are you one of them?

Life has various dynamics.

Many people are stuck in a bad job, while some people are in a bad marriage which is draining all their energy and time. Some people are running around to arrange for a house down payment, while some are wondering if they should have second kid or not!

Life keeps throwing so many things at us, that we really forget where we are headed towards and we are not able to see how our actions today will shape our future.

We keep dealing with the NOW, only to realize many years later that our FUTURE is almost there waiving at us. And then suddenly we realize that we have so much to catch up in life. More health, More money and More happiness !

We start our jobs in our 20’s, then settle by the end of 30’s, move to next level in our lives while we are in our 40’s and then in this journey we realize we are approaching our 50’s and if we have not done a good job of saving enough money then we PANIC !

Reason #1 – To secure your future

Let’s start with the most basic and core objective of saving money. You save money to accumulate the money and use it for your future requirements.

Let me give you a surprise – “One day, your salary will stop coming in your bank account”

There will come a time when you will be left with 40 more years of your life and there won’t be a regular salary coming into your account like it happens today. You need to create a big enough corpus, which helps you to lead a life you desire for next few decades till you die.

You should actually not be worried about “death” in today’s world, It should be “living enough”.

Some people think they can avoid creating their wealth because their kids will take care of them. However it’s up to you to decide if that’s the right approach towards life or not.

Reason #2 – To do what you love in life

Do you love what you do?

No, I am not talking about pursuing your passion for living or doing full time job in the area which you love. All I am saying is do you have enough time and money to do things you love for few hours each week? Something which you truly want to do other than your regular job work?

  • Do you love travelling to new places, but you are stuck because the EMI needs to be paid first?
  • Do you love photography, but those costly lenses seem to be out of your budget?
  • Do you want to socialize more by throwing a party for your friends, but worried how you will afford to do it?
  • Are you afraid to tell your boss that you want to go on a month long road trip, with your best friend which was planned years back?
  • Want to go on a weekend trip with your friends, but oops .. it’s out of the budget!

It’s going to be very tough to really achieve all the points mentioned above, if your bank balance is very low. Less money means less power with you!

While you cannot afford a lot of things, you can’t also arrange for a lot of time to do all these things, because you can’t take some tough decisions because you are so dependent on monthly paychecks.

Reason #3 – To spend and live a better lifestyle

A lot of things in life do not require money. A great nap, a conversation with a good friend, a simple meal with your loved ones.

But then there are things in life which require money.

Yes, I am talking about those materialistic things.

  • A better Car
  • A better house
  • Dining in a great restaurant
  • Partying with your friends
  • Buying that gadget
  • Going on that trip
  • Redesigning your house
  • That Ladakh road Trip
  • That DSLR Camera
  • Travelling to exotic places with your family

You will spend money on various experience and possessions, only if you have the money at the first place (not always, but most of the times), and you be able to do it only if you have money saved at your end at the first place.

Your lifestyle will improve only, if you have created enough money.

While you can always take a personal loan and upgrade your car or go on that vacation and earn all the facebook likes, I am not talking that!

Reason #4 – To be financially independent

Don’t confuse financial independence with retirement.

  • Retirement happens “when you don’t work anymore”
  • Financial Independence happens “when you don’t work for money anymore..”

While retirement is linked to age (which is generally around 60) , the financial independence is a function of wealth and not your age. Financial independence can happen even at the age of 35 (My best friend at age 32 is already financially independent)

Where do you stand in your financial independence?

Financial Independence is often referred as financial freedom. Nandish likes to describe as “A situation where your passive income equals your desired lifestyle expenses”

For a normal investor, financial independence can happen only when you start your wealth creation journey well in the start of your life and are disciplined enough not to disturb it for long time.

Do you always want to keep doing the same job you are doing? And wait desperately for that “salary credited” sms at the end of the month? How dependent are you on that monthly inflow in your bank account? How will your life look like if that sms that does not arrive (I mean the money) for next 6 months?

Millions of people go to their jobs in the morning with different moods depending on the day. They are happiest on Friday and very sad on Sunday night. You need to seriously start investing for the goal of financial independence if this is the case with you.

Reason #5 – Peace of mind

Not have enough money brings a lot of stress. If you need peace of mind, you need enough wealth on your side which can comfort you!

You will keep worrying about future every now and then and every small financial problem will give you goose bump and force you to think about your scary future.

Imagine a guy who is around 45 yrs of age, and has not create any significant wealth to show. By this time, he should have ideally created a corpus of 1 crore, but he has just 2 lacs in a FD which might get broken if some financial emergency happens !

This is bound to cause a lot of stress.

Various thoughts will cross the mind …

  • How will I meet my financial goals?
  • What if I lose my job?
  • What if I suddenly need a lot of money?
  • What if I am not able to give my kids all the things they want?

Reason #6 – To pass your wealth to next generation

A lot of families struggle for money generation after generations. The grandfather worked for money all their life, then father and then the son is also doing the same.

Many people who struggle financially set a goal in life that their kids should not face the same. They want to teach them money lessons and make them responsible, but also want to leave them a house and some wealth which makes their start a little easier in life.

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As the last day for making tax-saving investments nears, inflows into Equity-Linked Savings Schemes (ELSS) are reporting a surge. With equity markets turning buoyant, retail investors are aggressively investing in ELSS to save tax. In order to boost investment sentiments, mutual fund houses are paying dividends to investors as most ELSS, or tax saving funds, have performed better than the benchmark Sensex and Nifty. In fact, in the past one year, these funds have reported around 23% returns as compared to the 50-share Nifty’s 16%.

Dividends in March:

Most asset management companies declare dividends for ELSS during this month to encourage existing investors to invest and also attract new investors. Also, dividends received by the investors are tax-free. Analysts say fund houses pay 10-12% dividends, which is much higher than bank deposits.However, when the markets are in a a bear phase, fund houses do not declare any dividends. In fact, the markets regulator has mandated that fund houses can pay out dividends only from actual realised gains and not from reserves.

Mutual fund houses offer growth and dividend-payout options to investors. The growth option is ideal for a salaried individual because of the compounding benefits in the long run. In the growth option, the investor will not get income during the duration of the investment and will get it only when the tenure ends. This is ideal for those who are not looking at regular dividend payouts every year, but want final maturity payment along with the accumulated dividends for certain goal-based needs, such as higher education of children, wedding expenses, or down payment for buying a house or a car.

Tax benefit in ELSS:

An individual can get tax deduction on investments up to R1.5 lakh under Section 80C of the Income Tax Act by investing in ELSS. Mutual fund houses invest ELSS money in stocks. The funds have a lock-in period of three years, which is the lowest lock-in period compared with other tax-saving instruments like Public Provident Fund, National Savings Certificate and five-year bank fixed deposits. If a tax payer invests up to R1.5 lakh in mutual fund ELSS in a year, then he can save as much as R46,350 in taxes a year in the highest 30% tax bracket.

Since ELSS funds have more than 65% of their corpus invested in stocks, they are exempt from tax on long-term capital gains as is the case with any other equity fund. The dividend income is also tax-free. The returns, however, will fluctuate depending upon the performance of the equity market and the stock selection of the fund manager. ELSS is an equity investment and all the risks of equity investing apply.

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When I look at the kind of investment questions that people ask–on the Internet generally, and on Value Research Online, there’s an interesting pattern that can be observed. There are savers who think that investing is about investments and there are those who think investments are about themselves.
Let me give you two contrasting examples to demonstrate this.

Here is one real question:

“Is it advisable to invest in mid-cap and small-cap mutual funds in the current situation?”

“How long will the conditions remain favourable for such funds?”

Sounds like a perfectly reasonable question. However, contrast it with this question: “I am 40 years old but haven’t started saving for retirement, apart from the EPF deduction. When I retire, I will need Rs 75,000 a month….”, and then there are personal details that I will omit here.

While these are just questions that the two savers asked in emails to Value Research, I think it reflects their attitudes about investment in general. The first questioner thinks investing decisions are to be based on what’s happening in the outside world while the second one sees it as a way of finding solutions to the problems in one’s own life.

Unless you are a rich dilettante who is just playing around, the second approach is the right one. This may sounds like some new age wisdom, but the first thing that an investor must do is to `Know Thyself ‘. The reason for this is there is no investment that can be judged to be the right one without knowing who it is for and what the investor needs it for. There are great mutual funds and stocks which could be completely unsuitable for certain investors.

An investment can’t be judged to be the right one without knowing more about the saver’s life. However, it can certainly be judged to be the wrong one–there are a lot of investments that are always unsuitable for everyone, but we will talk about those later.

Conventionally, the first step to knowing yourself from a saving point of view is to decide your financial goals, the time frame in which those goals have to be met, and the flexibility of those time frames, and overlay a certain amount of tax-awareness on top of these goals. Then, for each type of financial goal, work out which type of investment is needed, and decide on the specific investments.

See the sequence here?

The first step is to analyse your own life. Then comes the goals, and then follows the type of investment. There are other aspects apart from the goals.

How stable is your income, and your spouse’s?

How’s your health?

Do you have any older dependents?

And so on. Believe me, knowing whether small-cap stocks are going to be `hot or not’ over the next six months is utterly unrelated to the things that are the real inputs to your life’s savings and investment decisions.

There’s another, even deeper aspect that requires you to know yourself. Different people seem programmed to suffer different amounts of stress and anxiety when they are invested in asset types that are volatile.This is partly a function of experience–of having been invested through a volatile period and then seen recovery.

Investment advisers are fond of asking their clients about their `risk tolerance’, but the answers are useless unless someone has had a real life experience of facing losses. 

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With only two more days left for the tax saving season to end, for those who still haven’t exhausted their section 80C limit of Rs 1.5 lakh per annum, there’s a dim hope left. Certain tax savers allow one to invest online with minimum or fewer hassles, all without moving out of your office or home.

Any tax saving investment that requires payment by cheque or has a long drawn process will be out of bounds in the last few days of the financial year. Investing in a tax saving instrument through cheque especially during the last few days of the financial year, may get held up due to various reasons.

Let’s say a tax payer invests in a tax saver through a cheque on 30th March( or even 29th March) but the payment doesn’t go through for any reason, say, date wrongly mentioned or signature mismatch and the investment actually gets pushed into the next financial year even after running around to rectify it.

Here are few investment alternatives, such as 5-year bank fixed deposit, ELSS mutual funds, NPS, term insurance plan, Ulips, health insurance and even making a home loan repayment, which can be made online.

We are not in any way suggesting to invest in any of the following instruments to merely save tax at the last minute. However, if any of these fit in your financial plan but you are running out of time to invest then the online investment route could help.

1. 5-year bank fixed deposit:

Probably, the easiest and most hassle-free way of making a tax saving investment is the 5-year bank fixed deposit. In all likelihood, you would have a KYC compliant account, so the only requirement would be of having access to bank’s net banking. Make sure PAN is updated in your bank records. Just log-on to your Internet banking using username and password and invest in the tax saving FD. Redemption on maturity comes directly to your bank account.

You can indicate whether you want monthly, quarterly or cumulative interest on the investment. The interest earned is to be added to one’s income and is therefore entirely taxable. Currently, the interest rate on 5-year bank fixed deposit is 7-7.5 per cent and therefore the post-tax return for someone in the highest income slab comes to about 5-5.5 percent per annum. Such tax savers could help in saving taxes and preserve your capital but not in creating wealth over the long term.

2. ELSS mutual funds :

Investing in ELSS can even be done online by visiting the website of the MF fund house. In doing so, being KYC compliant is an essential requirement. Through net banking, funds would get invested and if investment is made before 3 pm, the same day NAV (Maximum Rs 1.5 lakh for ELSS else Rs 2 lakh) gets allocated.

In addition to the regular option, there would be the ‘direct’ option available online. As against a regular option, the direct option has lower expenses as it is free of distribution commission. In the long run, it translates into huge savings. Choosing the right ELSS fund is however something one needs to do diligently. Click here to know more about it.

3. NPS online

Opening of NPS account online is possible now only if you have your Aadhar number with you. Till now an NPS account could be opened online via eNPS portal but the printout of the application submitted online had to be sent to the PFRDA’s Central Recordkeeping Agency (CRA) to open the account.

4. Online Insurance

Buying insurance plans such as online term plan or online Ulips at the last minute may not work always. Although making payment online is possible through cards or net banking, the underwriting of the policy might call for medical tests which could result in a decline of the policy or the insurer might ask for ‘extra premium’ owing to adverse medical reports.

5. Online ULIP’s

One can buy online Ulips by visiting the insurer’s website. As there is no intermediary involved, there is no commission that gets paid to any agent in online Ulips. The process of applying and making payment through net banking or credit card will be entirely online. With some insurers, Aadhaar number may be mandatory to buy policy online.

6. PPF Online

Opening of the PPF account with a designated bank in itself will take few days. Only the form has to be filled online after logging on to bank’s Internet banking but then along with certain documents, it has to be submitted to bank branch for verification purpose.

7. Home loan repayment

If you have a home loan, any principal repaid through EMI or through lump sum prepayment qualifies for section 80C benefit. At this last juncture, you can prepay a portion of your home loan and not only save tax but also save on interest cost. Prepayment helps in reducing the total interest outgo as the loan tenure gets reduced. The higher the prepayment amount and the longer the period, the more will be your savings.

8. Health cover

One may buy health insurance online by visiting the website of any general insurance company or a standalone health insurance company. However, there could be a requirement of medical tests or the insurer may not allow buying online above a certain age or a sum insured. Generally, insurers allow individuals up to the age of 45 to buy health insurance plans online.

Watch out

It’s always better to call up the company before initiating the process of investing online. It would typically take 1 working day for the investment to go through. Also, there are certain specific nuances with the process involved and knowing them beforehand will make the online experience better. For example, not all cities could be enrolled by the insurer for buying online term plans.

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There is a misconception in India That We’ll need life insurance (LI) beyond 68 years of age.

LI is meant for replacing your income stream. Why? So that people dependent on your income don’t lose your financial support when even if they lose you. Nor would your liabilities fall on them.

Typically most people don’t really need any LI before they start earning or beyond 60-65 years of age. By this age:

  • You would have already provided sufficient assets for your loved ones(usually spouse) to inherit. These would enable them to continue at the same standard of living.
  • Other than your spouse, you would not have any dependents. You’ll be lucky if your parents are still alive, unlucky if your children are still dependent on you..
  • You would have paid off all your liabilities.

You really don’t have to do anything or be prepared for the happy surprises  in your life. But, what about the unhappy ones? Such as a permanent disability or death? It is of the utmost importance that your family continues to meet its financial requirements even after you are not around. To secure your family’s future, you need to have term insurance.

There are many terms plan, Do you want to know about the terms plan?  Just leave a missed call on India’s Best Financial Advisor 022-62116588 or Download Financial Freedom App and post to expert your Queries . offers Free, Unbiased and on-call financial advice on Investment Assistance for insurance, Loan Assistance Retirement, Planning, Money Management Investment, Advisor, Retirement Planning, Best Health Insurance.

Which you may want to consider buying. But the question is at what age? 27 years? 35 years? 42 years? While the investors and insurance experts have their own viewpoints regarding the right age, what really matters is the right life stage of the life when you would want to buy a term insurance plan.

We will discuss some factors that should help you to decide when is the right time to take a term insurance plan.


The earlier you take a term insurance plan, better it is. The first reason being that younger the policy holder, lower the premium. This means that for a cover of say one crore, a person who starts early would pay lesser than a person who starts later and so on. Insurance companies see better prospects in a young policy holder paying all premium instalments since he has most productive years ahead in terms of earning capacity.

Secondly, you have lesser financial liabilities when you are younger, in terms of loans and other debts.

You just got married:

At this point, you would need to focus on saving for future needs and begin a savings plan for your family. A life cover would be a good idea to protect your spouse.  All in all, more financial responsibilities. Take a Term Life Insurance at 30 and it would have to be one with more coverage.

You are married with young children:

Your children’s education and future expenses take centre-stage now. You may want to protect your family from the burdens of loan repayments if you aren’t around, and begin thinking of planning for your retirement. This means a higher degree of financial protection.

Your children are starting college:

Children in college? Time flies, right?Now would be a good time to start thinking of putting your feet up and plan for your golden years. Term Plans? We’ve got a better idea. Think pension plans.

So, more your delay buying term insurance, more premium you have to pay and higher cover you have to look for.
Note: The premium you pay also depends on the age till which you are covered. So when you opt for a policy that lasts till a later age, you end up paying higher premiums from the first year itself

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Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is considered by some to be one of the most successful investors in the world, and as of March 2017 is the second Wealthiest person in the united states with a total net of  $78.7 billion.

Warren Buffett’s investing principles have earned him the moniker of the “world’s greatest investor.”  It is a nickname that Buffett himself chuckles at, but when you are worth $36 billion, it is hard to dispute. However, it’s not the truth.

Warren Buffett did not become a billionaire as an investor, and he does not “invest” in the manner usually depicted in popular media. That may be a bold statement to make, but once you understand his actual techniques of accumulating wealth, then you will be able to begin running your own investments in a similar way.

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Does Buffett “Buy and Hold?”

Buffett is used as an example by the media and financial advisors of why you should buy and hold. But the portrayal isn’t really accurate. When you buy and hold a stock, you buy it and hold it no matter what. It does not matter if there is good news or bad news, a Democrat or Republican president, a recession or an economic boom. You hold the stock through good times and bad.

Buffett, on the other hand, buys for specific reasons, and when those reasons are no longer present, he sells. Known as a value investor – one who buys stocks that have a low price-to-earnings ratio – Buffett looks for good prices, sound management, and a competitive advantage

Buying a stock and holding it forever is not what the Sage of Omaha does. Of the first 20 companies in which Buffett invested, the only one he still holds is Berkshire Hathaway, and that is probably only for its name. Each of the other 19 he no longer owns. Yet, we have

writers, financial advisors, business news heads, and self-proclaimed investment educators who tell you to do just that. But if the world’s richest “investor” does not do that, why should you?

How to Invest Like Warren Buffett:

Though you probably won’t have an ownership interest in the companies in which you invest, you can follow Buffett’s approach to generate more profits and reduce losses. The steps are simple to understand, though they may not be easy to implement:


 Unless you come from money, you will probably be starting from scratch and that is ok. Many of us have to start small – myself, included. Begin by determining how much you want to invest. If you are going, the route of investing in mutual funds many will have some initial minimums you need in order to buy in. Numerous ones available have initial investments of as low as $250 or none at all, such as through E*TRADE. If you had rather invest in individual stocks, you need to choose an online broker. Many of these will also have minimums to get started, though some of them do not. If you do not have $1,000 to invest right now, set a goal for yourself to save up the money as you can start investing with $500 or less at a number of online brokers. When you reach your goal, your investment account will mean even more to you because you had to work harder for it.

Make a List of Criteria to Buy a Stock. For example, you could look for stocks within a certain industry and with a specific price to earnings ratio or 6 month moving average. Just remember that stock price should not be a sole criteria. Often, a good company will dip in price due to the market or sector – which could present a good buying opportunity as long as the criteria you establish are being met.

  1. Invest in Industries and Companies Familiar to You. Understanding something about the industries or companies you invest in will make it easier to stay current on industry trends and company news. An investing strategy based on hype or following other people’s stock tips is a recipe for long-term failure. If you are interested in a company you do not know, but hear a lot about, research it first.
  1. Stay in Cash if Necessary. If no companies on your list fit your investment criteria, stay in cash.Cash is a position.
  1. Do your research and follow the Companies. Rather than buying on a tips , Do the research, Buffet reportedly Read 5 newspaper a day  and Once you invest, follow the companies on a monthly basis. Do not look at them on a daily basis.

Sell at the Right Time: When a company no longer matches your reasons for buying, sell the stock. If you determined it needs to be above its two-year average stock price, and it falls beneath it, then you sell. This is what most Buffett followers miss. He has rules and he diligently follows them. When a company no longer fits his criteria, he sells. Resist the urge to make excuses to stay in the investment. Sell it.

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Lately, People have started giving attention to the Stock market because of the false or rather superficial rate of returns which are marketed throughout media sources. This is done only to attract a huge crowd of earning people and lure them into this money business. Majority of the people invest blindly and then get devastated on realizing what has happened to all their money.

Investing is a plan, not a product.

Let’s say you plan to invest in stock market. When you finalize on one piece of property, you also finalize factors like

  • How much are you willing to pay?
  • Would you buy the shares right now?
  • What is the exit strategy (holding long term or sell in 6 months?)
  • Does the investment fit in with your overall plan/goal?
  • Get it now? You plan the investment.
  • It took me a while to get this, but it is really empowering to understand this principle. It is wise to divide investing in 3 plans.
  • Plan to be secure
  • Plan to be comfortable
  • Plan to be rich


Want to Know Earn money through Investing in India?

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The good thing about stock markets is that, if you are right or wrong, you get to know instantly. There is only one rule, if you are making money you are right, if not – your are wrong. Unlike in other walks of life, where it takes quite a bit of time to know if you were wrong in taking a decision, you get to know almost always immediately in the markets.

For someone looking on how to invest money in share market, this may help.

Start with reading News channels, Editorials and do read the Business columns of Newspapers.

Apps such as, Financial Freedom give you a good ADVICE BY EXPERTS off the market scenario

Never follow the script suggestion of unheard companies which are provided on TV, they are mostly paid news.

When you think you have gained sufficient knowledge, try to experiment with a certain amount of money which you are not afraid to loose.

Take a note, I said to experiment and not to invest, once you gain any profits out of your experiment then think of investing with a small amount every month.

Initially for few months focus only on Equities, consider a sector and start finding out the future prospects of that respective sector, Classify the companies within that sector according to the brand value and its customer reach and then segregate accordingly.

Always remember “Good quality stocks will always give you a good return, even if they look pricey”

PRO-TIP: Once you enter the world of stock market you will get suggestions from many people to invest in Penny Stocks rather than established Companies, People will claim that these Penny Stocks will become Multi-Baggers within few years and will give you say 10x returns or even more. But remember a fact:

 “An Egg can either get hatched or get fried, But a Baby Elephant will always grow up to be an Elephant” 

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Post demonetisation, when investors are looking to maximise returns, and fixed deposits rates of almost all banks are hovering below 8 percent, we look at the performance of short-term debt funds, which generally manage to beat FD returns. They are also tax efficient compared to fixed deposits as they provide indexation benefit on the gains after three years.

However, investors should consider that debt funds don’t guarantee any returns while the interest from FDs are assured. Debt funds carry default risk (company defaulting on bond payments) and credit risk (fall in price due to change is interest rate scenario). 

So, if you are willing to take some risk and invest for at least one year, debt funds can be a good bet for your debt portfolio.

We list out star performers based on three-year ratings assigned by Value Research as on November 30, 2016.

Franklin India Low Duration Fund:

The fund (regular plan) was launched on July 26, 2010. Its benchmark of returns is Crisil Short term bond. The open-ended fund has given 9.64 percent returns since launch. From the house of Franklin Templeton Mutual fund, it has peers such as Baroda Pioneer short term bond fund, BOI AXA short term income fund-regular plan, India bulls short term fund, UTI banking and PSU debt fund. On December 31, 2016, the fund has assets worth Rs 2,416 crore.

Reliance Medium Term Fund:

The fund was launched on September 5, 2000 and its benchmark of returns is Crisil short term bonds. The fund has given 7.71 percent returns since its launch. On December 31, 2016, it has assets worth Rs 10,798 crore under management. It has peers such as Birla Sun Life Short Term Fun, BOI AXA short term income fund plan, escorts short term debt fund and HDFC short term fund.

HDFC short Term Fund:

The fund (regular) was launched on February 28, 2002 and its returns are benchmarked to Crisil short-term bond.  The open ended fund has given 8.13 percent returns since launch. on December 31, 2016, it had asset worth Rs 3978 crore.  The short-term fund has peers such as Birla Sun life short term fund, BOI AXA short term income fund, escorts short term debt fund and Reliance Medium Term fund.

Indiabulls Short-Term Fund Regular Plan:

The fund was launched on September 13, 2013 and its benchmark of returns is Crisil short term bond. The fund has delivered 9.10 percent returns since launch. On December 31, 2016, the asset under management were Rs 584 crore. The open ended fund has peers such as Baroda Pioneer fund short term bond fund, BOI AXA short term income fund plan, Franklin India low duration fund and UTI banking and PSU debt fund.

Birla Sun Life Short Term Fund:

The fund (regular) was launched on March 3, 1997 and its returns are benchmarked to crisil short term bond. The fund has delivered 9.59 percent returns since launch. On 31 December 2016, the fund had Rs 15595 crore Assets Under Management (AUMs).  It has peers such as BOI AXA short term income fund, Escorts short term debt fund, HDFC short term fund and Reliance Medium term fund. 

For more information and queries, contact Moneymindz, the best online financial advice.

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