Online Investment Portal - How useful is it for you..

I remember, few years back if someone has to invest in Mutual Funds, Insurance or Equity Shares, there was a long process of filling up application forms, submitting documents and passport size photographs. But nowadays, investment is as easy as online shopping. It is easy, convenient and hassle free. All you need is a smartphone, PAN and Aadhaar. I personally find it very useful and convenient.

There are a number of banks and online portals providing this facility now. All you need to do is to register with them and complete your KYC. Yes, you are ready to invest.

Now the question comes to mind that how useful is it for general public. When I say general public here, I am specifically pointing to people not directly associated with financial industry. As these online portals are only providing investment platform but not providing advisory services, people still don't feel comfortable to use these services. Even if they are giving all scheme related information on their portals, still it has no match to experienced financial advisers guiding you with your investments.

Let's see an example of what makes advisers more  trustworthy than any online portal. If you have a concern  about your mobile balance being deducted without your  knowledge, you call your mobile company and hear an  automated message explaining about your last few  deduction. 

Does it satisfy you?

No, but you talk to customer service adviser and talk about the deduction. They also give the same answer but it satisfy you. We all know that talking to customer service agent is a paid service, but we still do that.

What's the difference?

We are human beings and we want a human to understand our concerns and guide us. A telephonic IVR system or an online portal cannot understand and acknowledge the value of your emotions. Yes, when it comes to money, we have our emotions attached to it. Because we do lots of effort to earn it. 

I find online portals useful as I just need an easy tool to invest, because I belong to investment industry. It can also be useful for young people want to invest small amounts. But if I have to do a planning with specific goals in my mind, I need to discuss it with professional. I will choose human experience over technology. 

Stay healthy and keep investing.

For all your investment needs, call WealthMaster.in Team @ +91-9810582989 or email at wealthmaster.in@gmail.com

Disclaimers:

The views expressed in the blog are those of the authors and do not necessarily reflect the official policy or position of any other agency, organization, employer or company.

Insurance is the subject matter of solicitation.

Mutual Funds investments are subject to market risks. Please read the offer documents carefully before investing.

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The Power of Systematic Investment Planning (SIP)

Systematic Investment plan or SIP is one of the best investment tools for anyone who has a regular income. If you are a young salaried and want to save money, there is nothing more convenient than an SIP.



Investing fixed amount of money on fixed date every week, month or quarterly is called Systematic Investment.

There are three main options you can choose for investment in this plan.

1. Shares - Buying same amount of shares every month without looking at price.
2. RD in Banks - same amount every month being fixed
3. SIP in Mutual Funds - Investing same amount of money every month on a pre-decided date

Any option can be taken according to your risk profile.

Let's see the pros and cons of each option.

1. Buying shares every month in a fixed quantity is a good idea. But as we all know, investing in shares requires lots of research, good amount of money and lots of time to monitor. Risk is very high in shares and it gives the option to choose fixed quantity but not fixed amount of money. So you cannot plan in advance how much money you will need every month.

2. Bank RDs are safest option as it gives you fixed maturity amount after a fixed period. But there are a few things that make it less popular option.

• Low liquidity. If you want to withdraw money before the maturity date the return will be less than expected.
• You cannot partially withdraw small amount in between even if you need it.
• The interest rates are very low compared to other options which make it less popular in young people.

3. Mutual Funds SIP offers most flexible choices according to your budget, liquidity and risk profile. You can even start from just Rs. 500/- a month and withdraw within 7 days if you need it in emergencies. You get returns as good as share market but no need to do any research as you money will be managed by professionals. It makes it less risky in comparison to direct shares. It is very much recommended to take advice from Independent Financial Advisers to plan your investments and help you achieve your Long Term Financial Goals.

I will share a real life example of planning we did for one of my esteemed client who has taken a Home Loan in Year 2016 for 45 Lakh Rupees (Monthly EMIs payable for next 20 years) and is now planning to pay it off completely by Year 2025 with the help of Systematic investing in mutual funds. He wanted me to plan his part of SIP investment in such a way so that he could reduce his total home loan outstanding by systematically withdrawing 5 Lakh Rupees every year and to clear it off completely well before Year 2025.

I am so glad to share that he has already paid off 10 Lakh Rupees in last 2 years and now his total Home loan outstanding has come down to 35 Lakh Rupees. I salute him for keeping his trust in me despite all kind of volatile moments in equity markets in last 5 years of our relationship. I simply love to share his example in my presentations while meeting with new clients.

Stay healthy and keep investing.

For all your investment needs, call WealthMaster.in Team @ +91-9810582989 or email at wealthmaster.in@gmail.com

Disclaimers:

The views expressed in the blog are those of the authors and do not necessarily reflect the official policy or position of any other agency, organization, employer or company.

Insurance is the subject matter of solicitation.

Mutual Funds investments are subject to market risks. Please read the offer documents carefully before investing.

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Do You Need a Financial Advisor?

When we plan our finances or try to create an investment portfolio, we ask this question from ourselves. Do I need a financial advisor or I can do it on my own?

Somewhere in our mind we will always have this confusion whether or not we should trust someone else for our money.

I will give answer your query with a very simple example.

One of my friends recently planned to do a fixed deposit for around sixty thousand rupees. When he visited the bank, the bank executives explained him about a different plan which can give him better returns. They were very convincing and we trust bank more than anyone else when it comes to financial decisions. Even when he got the plan documents, he was unable to identify what plan he bought as papers were not easy to understand. Finally, when he consulted us, the plan turned out to be a ULIP. A unit linked insurance plan. Because he contacted us after 2 months of receiving the documents, there was no option to return the plan. Now he has to pay sixty thousand as premium every year for at least 10 years to get good returns from ULIP.

This is a true example and let’s see what issues he will be facing due to this.

•     Fixed deposit was his onetime plan but now he has to pay it every year.
•        He already has good insurance cover with term plan so insurance was not his need.
•        He cannot withdraw the money in between even if he need it as it will be a loss.
•        He is only 27 in his age and there are better investment options available but he can’t take          benefits.

What should have been done?

He should have consulted a financial advisor before even going for fixed deposit.

It sounds strange because FD is the safest and easiest option we think for saving money. But we need to change the way we think about savings and investment.

Why it is important to consult?

There are many financial instruments available in market. All are good but may not be suitable for everybody. The product requirement may vary according to your age, income, marital status, number of dependents, short term or long term goals.

Consulting a financial advisor is like consulting a doctor for financial health. You know what medicine you need to take for fever but still you need to consult doctor as fever may not be normal and may cause some serious issues.

How to choose a financial advisor?

• You can talk to different advisors and then decide.
•  Advisor should not be forcing you to go for one type of product only he should have an umbrella to offer.
•  He should be guiding you according to your financial goals and not according to your financial status.
•   Do not only trust on big brands but choose experience.
•   Ask questions to understand the reason why he advised you something.

I understand it is not easy to trust someone when it comes to your money matter, but you should trust the expert advice. You can be good with what you do daily and they are good at what they do daily.

Disclaimer: The views expressed in the blog are those of the authors and do not necessarily reflect the official policy or position of any other agency, organization, employer or company.

Insurance is the subject matter of solicitation. Mutual Funds investments are subject to market risks. Please read the offer documents carefully before investing.

For all your financial needs, call WealthMaster.in Team: +91-9810582989.

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What Kinds of Investment Options Available in India

However the last few decades witnessed a complete change in the nature of functioning of the financial market. An array of new products was introduced by both financial institutes and banks that simply lured the many investors to invest in them because of the numerous advantages that each product offered. Be it life insurance policies, Exchange Traded Funds infrastructure bonds, fixed deposits, mutual funds etc each product or scheme is unique and meets the needs of either your long term or short term goals.

Below is a list of the different investment options offered in India.

Bank Fixed Deposits, [Term Deposit]

Bank fixed deposits are one of the most popular investment options in India. This type of investment is one of the oldest and safest in the country. Usually in the case of a bank Fixed Deposit Scheme a certain amount of money is deposited in a particular bank for a specific duration on which the depositor receives a fixed rate of interest. Fixed deposits are ideal for long term investments. Mostly young people deposit in such schemes till the age of retirement so that they are eligible for a regular income when they need it most. The best thing about this investment option is that it is extremely safe, liquid and also yields high returns.

Recurring Bank Deposit Saving Scheme

Recurring Bank Deposit Schemes are also another good investment option in India. In order to invest in a Recurring Bank Deposit Saving Scheme you will have to invest a specific sum of money in a bank on a monthly basis. On this investment you will be receiving a fixed rate of interest from the bank every month. These types of investments have a fixed tenure and at the end of the tenure you receive the principle amount plus the interest earned.

ETFs (Exchange Traded Fund)

Among the latest investment options in the country Exchange Traded Fund or ETFs are known for their high returns yielding nature. Since the product is relatively new people are still a little apprehensive about investing in these types of funds however investing in Exchange Traded Funds are extremely beneficial in the long run.

ELSS (Equity Linked Savings Scheme)

Over the years Equity Linked Savings Schemes have gained immense popularity in the Indian financial market. Equity Linked Savings Scheme is a mutual fund investment option that invests in stocks and equity related stocks. Most Equity Linked Savings Schemes have a lock in period of three years which only benefits investors from yielding benefits and also getting tax exemptions.

Life Insurance Plans

Investing in life insurance policies is one of the major investment options in India. LIC in India has almost synonymous with life insurance for its many life insurance policies. There are different types of life insurance plans like whole-life insurance, joint-life-insurance, pension-life-insurance etc that you can select from. It is believed that life insurance policies are best suited for people with families. The returns yielded from a life insurance policy depending on the type of plan can be used for numerous reasons like child's education, business expansion or children's' marriage. Some of the companies offering life insurance plans include; Life Insurance Corporation of India, Kotak Life Insurance Reliance Life Insurance Company, Tata AIG Life Insurance etc.

Post Office Savings

One of the most important investment options in India is investing in the numerous products introduced by the post office. The many different post offices in India offer a gamut of investment products that meet the needs and requirements of one and all. Even the lower income groups can invest in the many post office schemes. Some of the popular post office savings options include;

Post Office Recurring Deposits

National Savings Scheme [NSS]

Public Provident Funds [PPF ]

Post Office Monthly Income Scheme [Post office MIS ]

National Savings Certificates [NSC ]

Post Office Time Deposits

Kisan Vikas Patra - [KVP ]

Investing in Gold

Investing gold is nothing new to India. People in this part of the sub continent have been investing in gold since decades now. Gold is one of the safest investments options and can really prove beneficial in times of economic crisis. Gold can be considered to be a long term investment. Investing in gold can be used for several purposes like your child's marriage etc. The price of gold from the last few years has been rising continuously even during recession the price seemed to have increased at a rate of 19.30 percent.

Mutual Funds

Mutual Funds are another popular investment option that have gained immense foothold in the Indian financial market over the last few years. 'You can invest on both short and long term mutual funds. The one thing that is really good about investing in mutual funds is that you can invest small sums at a time. Mutual funds do not necessarily require lump sum investments. Most of the financial companies and banks today offer a diversified portfolio of mutual fund investment products. Investing in mutual funds is also less risky as compared to investing in stocks. This kind of investment option also has the tendency of fetching extremely high returns. However the amount that the investor will get as returns is unpredictable and depends totally on the situation of the market.

Stocks

Investing in stocks is one of the most beneficial Investment options in India. According to market trends it is seen that investing in equity shares fetch as much as 26.5 percent higher returns in a period of 5 years when compared to fixed deposits of the same tenure. Even when the investment is made for the longer period it still reaps higher returns. Investing in stocks is also a better option as compared to investing in real estate or gold.

The Indian financial market is flooded with a host of investment options that not only fetch returns but also save you from paying huge amounts as taxes.

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