Financial Planning

Animals in the Stock Market are commonly used terminology to define specific characteristics of the type of traders or investors or market scenario. Have you heard/watched the movie ‘The Wolf of Wall Street” starring Leonardo DiCaprio as  Jordan Belfort? If yes, then have you wondered why he has been referred to a wolf in the movie? What’s an animal doing in the stock market-based movie? We are going to discuss most commonly used animals in the stock market. 1. Bulls The bulls represent the investors or traders who are optimistic about the future prospects of the share market. They believe that the market will continue its upward trend. Bulls are the ones who drive the share price of a company higher. 2. Bears Bears are the investors or traders who are totally opposite of the bulls. They are convinced that the market is headed for a fall. Bears are pessimistic about the future aspects of the share market and believe that the market is going to be in RED. T...

No one can predict what the future holds, but everyone can prepare to meet future uncertainties. Valentine's Day as a concept evokes a mixed reaction from all quarters. While some deem it as a commercial event popularised by corporates to give another reason for people to indulge, others regard this day as a celebration of love and affection. Irrespective of your bent of mind, it cannot be denied that, at the core, Valentine’s Day is an occasion for all couples to make special efforts for appreciating their significant other and renewing their promise for a happy life together. While buying gifts, going out for movies or dining at fine restaurants are the most common ways of celebration, a more meaningful way to mark this day would be to lay a strong foundation for a secure future together. No one can accurately predict what the future holds, but everyone can prepare to meet future uncertainties by effective financial planning. Financial planning for couples has come...

It would be better to link them to long-term goals such as retirement Tax-Saving ELSS funds are fairly popular. Along with the obvious benefit of tax saving, they also provide potentially higher returns because of their investments predominantly being in equity. But I regularly see people investing in ELSS funds randomly and just to save taxes and get some good returns. Nothing wrong in this approach. After all, what can be wrong about saving taxes and earning good returns? Unfortunately (and unknown to most), this approach doesn’t take them anywhere. It’s true that Section 80C savings provide tax benefits. But 80C investments shouldn’t be made just for savings taxes. Rather, they should be linked to financial goals. It would be better to link them to long-term goals such as retirement. Saving for goals Because these ELSS funds are nothing but equity funds. And when it comes to equity, it is advisable to hold it for the long term (generally 5-7 years or more), to get th...

People go to the Himalayas to find inner peace. But what about financial peace?Well, the good news is, you need not go anywhere in its quest. All you have to do is practice these financial mantras.  Mantra 1: Analyse your financial status You yearn for peace when something starts disturbing you or when something is not right. So: First find out what's wrong with your finances. How:  Take stock of your financial life.Qualify all your assets and liabilities. List down all your income and expenses. Don't forget to list down your financial strengths and weaknesses. Mantra 2: Seek Financial Advice When you are going through constant lows in life, you want someone to talk to you, to console you, & guide you. They could be be your friends, teachers, parents, mentor or even a counselor. So:  Look for someone whom you can talk to about your finances  How:  Find out about Financial Adviser from friends, colleagu...

Since both VPF (as part of EPF) and PPF have long-term maturity periods, these are best-suited to act as retirement planning tools If you choose to invest additional sums in debt instruments, how do you choose between the VPF (Voluntary Provident Fund) and PPF (Public Provident Fund)? So, even though all of us (or most of us) know that having exposure to equity via mutual funds is advisable for long-term investments, this article simply focuses on the debt side and tries to help pick between PPF and VPF for the long term. The VPF currently offers 8.65 per cent annually, while the PPF offers 7.9 per cent. So, on an as-is basis, the VPF wins over PPF. But would the VPF offers more than the PPF always? An analysis of the historical interest rates shows that the VPF almost always gives higher returns than the PPF. When it comes to returns, VPF is the clear winner. Putting returns in perspective But we should never focus on returns alone. It’s always advisable to asse...

                        The SSY is a very illiquid product and should be chosen only if it suits the investor’s actual objective of accumulating savings for the girl child’s future. As a parent, saving for your children’s future is a big responsibility. And many times, and understandably, people are willing to sacrifice retirement savings for their children’s future. If you have a young daughter, then you would have come across the Sukanya Samriddhi Yojana (SSY) many times. But is it a good option? And does it make sense for everyone who has a daughter to invest in the SSY? Small savings, higher returns Being part of government’s small savings schemes, the SSY often gets compared with products such as the PPF (public provident fund). The SSY does give higher returns, of 8.4 per cent, than PPF (7.9 per cent).But ‘higher returns’ alone shouldn’t sway your investment decision.The SSY has certain in-built restrict...

Financial planning should really be a couple’s priority as soon as they come home from their honeymoon. Marriage does not only change a couple’s financial situation but as well as their outlook on all things money-related. There will be new financial considerations to attend to such as buying property like a new house, planning for children, spending habits, saving and investments and more. It is very important for newly married couples to be on the same page so as not to make their marriage suffer when financial matters get out of hand. Here are five effective tips on financial planning that newly married couples can use: 1. DISCUSS YOUR CURRENT FINANCIAL SITUATION You cannot just assume that your spouse will take care of everything or that s/he will assist you on your existing loan (the one that you got while you were still single). It is important to sit down and discuss where you are in your finances currently. The discussion should include your collectiv...