Avoid Too much Gold: Stick to SIPs

SIP means Systematic Investment Plan. Mutual Fund SIP are a means of inculcating savings discipline as well as benefitting from cost averaging in risky assets. While an SIP is an equity asset does not make it risk-free, it does not remain a preferred method of building long-term savings. Some investors may feel that SIPs have not performed over the past five years but this period has been unprecedented for financial markets.
Even if returns are not staggering for a specific period, an SIP helps in reducing risk compared with a lump-sum investment in that asset.

The recent price increase in gold […] Read more

Buying Online Term Plans- Things to know

Insurance companies offer individuals the facility of buying online term insurance through company websites. The plan offer the benefit of lower premium rates for the insured. The insurance provider can pass on this benefit to investors because online mode saves the distribution costs.

APPLICATION FORM: The buyer must fill in the online application form and choose the sum assured as well as policy term. The premium applicable to the individual is disclosed based on age, gender, policy term and sum assured.

HEALTH CHECK-UPS: The term insurance policies bought online may not require a health check-up for certain age groups, non-smokers, non-tobacco users […] Read more

Five Golden Rules- Buying Stocks in Volatile Market

1. Look at Individual stocks, not the Broader market
When the market is falling, even good quality stocks may tumble. This presents an opportunity for stock-picking.

2. Go for Earnings Visibility
Buy stocks with a clear earnings visibility, strong balance sheet and stable cash flow. Dividend stocks are safer bets.

3. Don’t Invest at One go
Even though stock prices are low, stagger your purchases over time. Put in only 10-12% of your total outlay right now.

4. Avoid Value Traps
Several stocks are trading at multi-year lows. This does not necessarily make them good buys because they could fall further as the economy stalls.

5. Don’t Touch […] Read more

New Investors- Financial Planning

Here are the few ways of financial planning for new investors-

1 Learn Various aspects of Finance
You can take the help of financial planner for making investments but you should also understand the basic concepts of savings and investment, and how each investment option works. Consider the positive and negative aspects of each investment option. For gaining this knowledge you can refer to internet, blogs, newspaper, etc. After gaining this knowledge you will understand how market works and what your financial planner says.

2. Start a Recurring Deposit
A recurring deposit helps you to save regularly and is a safe investment option for […] Read more

Financial Pyramid- 3 Steps to Follow

Many people thinks that financial planning means various investment options and returns they are giving. But in this process of investments and returns we normally forget the prudent and methodical way of building your personal financial plan.
Following are the stages of making financial pyramid:

STAGE I: Risk Management
A strong pyramid gets its strength from its base. Risk management builds the base of one’s financial pyramid. A strong or perfect financial plan should concentrate on managing the unexpected risks or emergencies of life. Most common emergencies or risks in one’s life are job loss, health related or risk of life. If you […] Read more

« 1234 »