मोहित्यांची मंजुला | Mohityanchi Manjula

 

Floating Methods in the Primary Market

(i) Public issue: Under this method, the company produces a prospectus and invites the public to purchase shares.. It provides information like the purpose for which the fund was raised, the background and future prospects of the company, its past financial performance, etc. This information helps the public and  investors  know about the business and its potential risks and rewards. related. This method is a bit tedious as it fulfills all the legal procedures prescribed by SEBI. approved by the board of directors, designated financial institutions,  stock exchanges, etc. An abbreviated prospectus is attached to each share registration form. SEBI authorization is required for issuance. The underwriter can determine the share price. The reason for the same should be given in the offering document.

(ii) Offer for sale: Under this method, the company does not issue securities directly to the public, but through intermediaries such as brokers, issuers, etc. In two stages, the company first sells its securities to an intermediary at an agreed-upon price, and then the middleman resells the securities to the investing public at a higher price to make a profit. Similarly, foreign affiliates or promoters can sell their shares to the Indian public through an offer to sell which can be made through brokers or by prospectus. this method is relatively faster and simpler than going public as it does not perform any formalities and it avoids the subscription cost.

(iii) Private placement: Under this method, the company sells securities to large financial institutions or brokers instead of  to the general public. In return, they sell these securities to  selected customers at a higher price. This method saves the company  various required or optional expenses such as management fees, commissions, underwriting fees, etc. As a result, companies that cannot afford the huge costs associated with going public  often opt for a private placement. This method is also popular because it is cheaper than the method of issuing to the public to raise capital.

(iv) Right issue: This method is used by companies that have been already issued their shares. When an existing company issues new shares, it gives the preference to existing shareholders this process is called as Right issue. In this scenario, the shareholder has the right to accept or reject the offer for himself or he can accept to transfer all or part  of his rights to another person. An issuer of  rights is required to send a circular to all existing shareholders. The circular letter must provide information on how the supplementary funds will be used and their effect on the ability to earn capital. Usually, a company can allow shareholders to exercise their right to exercise at least a month or two before the stock is issued to the public. Rights may also be provided through underwriters. If the company does well, the rights will be well received  by the shareholders and the need to subscribe may not arise.

(v) Electronic Initial Public Offering (eIPO): Under this method, companies issue their securities in electronic form (i.e. the Internet). The company that issues securities in this way enters into a contract with the stock exchange. SEBI registered brokers must be appointed to accept the application. This broker regularly sends information about this to the company. The securities issuer also appoints a registrar who contributes to the success of the issue  by establishing a connection with the stock exchange.

Entrepreneur v/s Businessman

There are many differences such as objectives, market share, risks, business ideas, decision-making systems, competitive levels and business implementation methods.

Characteristics and purpose The first difference is nature and purpose. One of the main differences between entrepreneurs and businessman is their characteristics and objectives. Entrepreneurs do everything for their innovation to succeed. A contractor focused more on skills, namely the use of human resources in the main objective of introducing new lanes to succeed. Contractors can maximize the use of their human resources with the HRM system, which allows them to automate attendance, leave, payroll and other administrative tasks.

While the businessman give priority to commercial and cost-effective things that's why he is more cautions for taking a new strategy in his business and only followed the ideas that already exist. Because the main goal of a businessman is to convey commercial and profitable things.

Range range An entrepreneur has a higher risk range because it is more daring in reflection (out of the box), then introduce new ideas. If the idea fails, everything will be vain. But on the other hand, if the idea succeeds, they can lead the market because they do not have competitors.

Unlike a businessman who has fewer business risks, even minimal because he has always considered things as a calculated and cautious reflection. The businessman is more concerned about opportunities that will offer advantages. But the disadvantage because it follows the existing path, then they have several competitors.

Attitude with employees and customers The attitude of an entrepreneur is different from that of a businessman, who has a warm personality and who always meets his employees with patience. Indeed, a contractor loves people who have the goal and responsibility to benefit their clients through innovation.

Unlike a businessman who has an authoritarian trait, who loves to govern and work as an employer. In addition, he also tended to hire people who are experts in his field because he is looking for profits and the growth of his business.

Workplace As you know, an entrepreneur usually has a friendly nature for his workplace to be unlimited because he wants his idea to succeed. He did not have a problem sharing his workplace with a colleague. And open instead of change as needed.

A businessman is different. He works in vast areas to separate the services or offices of his colleagues and promote teamwork relationships between his employees. The goal is to ensure that its business had a good reputation and get more profit by having a fixed location. But there is one thing that is common for entrepreneurs and businessmen, it always facilitates a productive workplace for their employees.

Skill As an entrepreneur who has an encaustic nature, they are always ready to take risks, and if they fail to overcome them and find appropriate solutions. In the case of the businessman further exploiting his experience and creating certain strategies planned to overcome losses. But when things go as not as planned they take more time to overcome it.

Adaptation On the entrepreneur side, the world is constantly evolving because new ideas, tools and machines continue to emerge in the business world. By having a revolutionary nature and being able to accept the latest developments and to face daily changes, an entrepreneur can easily adapt. But a businessman generally follows traditional methods, so it is confronted with many obstacles and difficulties in adapting new techniques for development.

Goal As already explained, in terms of objectives, a contractor tends to be more concerned about the changes around. The goal is to continue the passion and the final goal can offer pleasure and satisfaction of itself. In addition, entrepreneurs are not particularly interested in financial benefit.

initial public offering

 What is the IPO?

IPO stands for initial public offering which is the process of changing private ltd to become the public Ltd. company. Companies generally enter the public to raise funds. It is mandatory to through all IPOs of various processes determined by the exchange. After the IPO process is complete, the company's shares can be open to the public to trade on this exchange. This process can also create opportunities for smart investors to get interesting returns to their investments but there are opportunities for losing money, therefore, it is important to understand at least the basis of the base before investment.

Steps to the Process of First Public Offering (IPO)

1. Employment of Emissions or Investment Banks - Underwriters help companies prepare the IPO to raise expected funds.

2. Registration for IPO - Creating a Red Herring Prospectus Draft (DHRP) is required to be in accordance with the Company.

3. Verify by SEBI - After DHRP according to the set guide, SEBI allows the company to continue with the IPO.

4. Application to Exchange Stock - The company then sends an application to the exchange where it plans to float the problem.

5. Roadshow - The team advertises the IPO in an effort to attract potential investors or get their attention.

6. IPO prices - IPO prices through fixed price models or book construction model processes.

7. IPO and allotment occur - share allotment within 10 days from the date of the problem.

Fixed price problem

In fixed price problems, bid prices are evaluated by the company along with their underwriters. This price is usually corrected by evaluating total assets, liabilities, and they will go through every other financial aspect. They then work on these numbers and repair prices for their offer. Prices are set after considering all qualitative and quantitative factors. In fixed price problems, prices may be undervalued during the company's IPO. Prices are mostly lower than market value. As a result, investors are always very interested in fixed price problems and finally reassess the company positively.

Book Construction Problems

Book building problems are a relatively new concept in India compared to other parts of the world. In the problem of building construction, there is no fixed price, but band prices or range. The lowest and highest prices are called 'floor prices' and 'closed prices' each. You can bid stock with the desired price you want to pay. After that the stock price is set after evaluating the offer. The demand for shares is known after every day when this book is built.

IPO Glossary: IPO Publisher is a company that issued shares to collect capital. Underwriter: Underwriters are bankers, financial institutions, or brokers who help companies guarantee IPOs. This acts as a media broker between the public and publisher. DRHP: This stands for Draft Red Herring Prospectus, also known as a bidding document. This is a preliminary registration document prepared by investment bankers for IPO issuing companies if there are problems built books. The document contains financial information and operational companies along with some other information such as why he tries to collect money. RHP: Red Herring Prospectus is a preliminary registration document submitted to Sebi in case of a problem built book. It does not contain the number of shares or stock prices offered in trouble. Band price: Band Price is basically a lower price and the top price per share used by the company to the company. Problem Size: The size of the problem in the IPO means the number of stock problems multiplied by the number of each share. Undersubscription: This is the situation where the number of shares applied by the public is less than the number of shares issued by the company. Oversubscription: This is the situation where the company receives more applications than the number of shares offered by the public

Financial Literacy Awareness Program

Why is the Basic module?

Introduction to financial literacy This module will focus on conceptual learning that allows them to attract what they have learned and use to understand new topics. It helps students and teachers to develop an in-depth understanding of how concepts are interconnected with each other and build examples that will empower them throughout their education and careers

Setting up Financial Goals This module will focus on having a goal will change the way you see your money. You will begin to see how every decision you think is important for your greater financial health. Budgeting - income vs. expenses This module will help us understand budgeting that allows you to make expenditure plans for your money, it ensures that you will always have enough money for the things you need and things that are important to you. It is always important to have a clear picture of financial plans, both income and expenses.

Budgeting - prioritizing needs This module will explain to us how to prioritize bills and loads will help you meet basic needs, protect your credit, and reduce your financial stress. This, in turn, allows you to focus on finding ways to cut costs or increase your income so you can pay all your bills every month and even start saving for the future.

Understand interesting concepts This module will focus on understanding the concepts that you can search for the fact. If you don't have a concept, the fact is that it won't help you a lot. So, I go down because the concept is more important. If you take a concept, you can apply it to the new facts you meet.

Basics of Investment This module will explain us to foster your wealth and produce returns that beat inflation. You will also benefit from compound strength. Furthermore, investment has the potential to meet your financial goals, such as buying a house, collecting a pension corpus, and building emergency funds, among others.

Banking Basics - Part I This module will help us understand the basics of important banks to realize banking awareness or general awareness. The basics of banking are also important for practical purposes for banking and prospective financial.

Reserve Bank of India This module will focus on the RBI acting as the overall supervisory body and supervision of the financial system. This finance injecting public beliefs into the national financial system, protecting interest rates, and providing positive banking alternatives for the public.

Why is the Intermediate module? 

Introduction to financial literacy This module will focus on financial literates that help consumers not only manage money with more confidence, but also have a better chance to handle the ups and downs of their financial life by understanding how to prevent and manage problems when they appear.

Savings and inv Products This module will focus on independence when you save you, you get a feeling of independence and strength to do something. This gives you a feeling of independence. For family security - if something happens to you, your family must be taken care of properly. Having savings and investment portfolios ensure it.

Basic Taxation This module will focus on taxation which is the imposition of mandatory levies to individuals or entities by the government in almost every country in the world. Taxation is used primarily to increase revenue for government expenditure, although it can serve other purposes as well.

Basic Insurance This module will help us to release purchase insurance it is important because it ensures that you are financially safe to deal with all types of problems in life, and that's why the insurance is a very critical part of financial planning.

Banking Basics Part II This module will explain us to understand the basics of important banks to realize banking awareness or general awareness. The basics of banking are also important for practical purposes for banking and prospective financial.

Basics of Credit Cards and Debit Cards This module will focus on credit cards and debit cards can make it easier and convenient to make purchases in stores or online, with one main difference. Debit cards allow you to spend money by drawing funds that you have deposited at the bank. Credit cards allow you to borrow money from card publishers to some extent to buy goods or withdraw cash.

Loan products from banks This module will help us understand loan products from banks that are important to know how loans work before you borrow money. With a better understanding of them, you can save money and make better decisions about debt - including when to avoid getting more or how to use it for your benefit.

Insurance Regulatory and Development Authority (IRDA) This module will focus on the regulation and insurance development authority (IRDA), the legal entity is regulated to protect the interests and regulators of policy holders, promote and ensure the growth of the insurance industry regularly in India.

Why is the Advance module? 

The importance of financial planning This module will focus on the importance of financial plans that will act as a guide when you live a life journey. Basically, this helps you control your income, expenses and investment so you can manage your money and achieve your goals.

Savings vs Investments. This module will help us understand savings vs. investment is an important part of a good financial plan. Saving and investing comes with their own advantages and Disadvantages. Where you decide to put your money will depend on the reason you want to grow it.

Basics Equity and Mutual Funds This module will explain to you stock generators and mutual funds, namely the most popular investment instruments in the financial market. Investing in stocks means you invest directly in the equity market, while mutual fund investment means professional fund managers invest for you in equity funds or debt funds.

Risk vs. Returns Perspective This module will focus on the potential for return on investment, the higher the investment risk. Cash provides a lower return and lower loss risk, while growth investment such as shares can provide higher and higher risk returns.

Basics Currency and Exchange rates This module will help us understand the global financial environment, we must first understand how the currency and foreign exchange rates. It is not possible to trade without the basic knowledge of these basics.

Basics of Financial Markets This module will focus on financial markets that play an important role in facilitating the smooth operation of capitalist economic operations by allocating resources and creating liquidity for business and various entrepreneurs. The market makes it easy for buyers and sellers to trade their financial ownership.

Securities and Exchange Board of India (Sebi) This module will help us understand the important role of OS Sebi while organizing all players operating in the Indian capital market. This seeks to protect the interests of investors and aims to develop the capital market by upholding various rules and regulations. 

SEBI (Securities and Exchange Board of India)

(i) "Securities and Exchange Board of India - Sebi" is the investment market regulator in India. This Council aims to maintain stable and effective markets by creating and applying market regulations.
(ii) the Securities and Trade Council of India was created by the Indian Government on 12 April 1988 as an interim administrative body to promote the orderly and healthy market of the securities market and the protection of the securities. investors.

Objectives of SEBI

(i) regulate scholarships to promote their orderly operation.
(ii) Protect the rights and interests of investors to guide and educate them.
(iii) prevent professional misconduct and a balance between self-regulation of the securities industry and its statutory regulation.
(iv) regulate and develop a code of conduct and fair practices by intermediaries such as brokers, merchant bankers, etc.

The functions of SEBI are:

1. Regulatory functions of SEBI:
(i) Registration of other player players brokers and sub-brokers.
(ii) Registration of collective investment systems and mutual funds.
(iii) the regulation of equity brokers, portfolio exchange subscribers and merchant brokers and any other securities market.
(iv) Calling information by undertaking an inspection, leading surveys and audits of scholarships and intermediaries.
(v) regulation of contracts for taking control by companies.
(vi) collect fees or other charges to make the objectives of the law.
(vii) Perform and exercise such power under the Securities Act 1956 (Regulation), as can be delegated the Indian government.

2. Development functions:

(i) Training of securities market intermediaries.
(ii) Conduct research and publication information useful to all market players.
(iii) undertake measures to develop capital markets by adapting a flexible approach.

3. Protection functions:
(i) Prohibition of fraudulent and unfair business practices such as making misleading statements, manipulations, price rigging, etc.
(ii) control insider operations and impose sanctions for such practices.
(iii) undertake steps for the protection of investors.
(iv) Promotions of equitable practices and code of conduct on the securities market.

Basics of Financial Markets

 The financial market has an important role to be played in bringing shared financial and consumer financial suppliers. While financial suppliers are investors, consumers of finance are business and industrialists. This is how the Indian financial market in general and the securities market in certain work. Financial markets in India consist of the main credit market, money market, foreign exchange market, debt market and capital market. Recently, the derivative market - OTC and Exchange traded - also appeared. This is popularly referred to as financial intermediation and is in the core of the Indian economy; bring investors and business together in symbiotic relationships. This is what consists of.

Banking system.

Indian banking has a multi-tier structure. The Indian reserve bank is a regulator of the banking system and monetary authority. Its function includes a license bank and regulation for a strong and stable banking system. RBI is an authority that issues records and bankers to the government and acts as a lender's last effort to another. It also acts as a credit controller in the monetary system. In front of banks there are PSU banks, private banks; Cooperative bank, small financial bank etc. And they joined to define the Indian banking system.

Indian securities market

The securities market provides an institutional framework for efficient capital flow in the economy. Capital market Convert saves investment for investors and convert business genealogies to funding for business. This basic setting in the securities market allows the flow of capital from households to businesses, in the framework of the regulated institution.

Market Securities include equity, index futures, index options, stock futures, stock options, long-term bonds, medium-term bonds, short-term bonds, money market securities, equity funds, hybrid funds, bound, etc. The security market is important to raise money for corporations and institutions and also for investors to allocate their money.

Indian commodity market

Commodity markets facilitate transactions between buyers and commodity sellers. This commodity is widely dividend into four categories Viz. Agricultural commodities, precious metals, industrial metals and energy products (oil and gas). Commodities can be traded in India in the spot market (for immediate delivery) or in the futures market (for shipping), or in the futures market (not for shipping) or in options (so as to switch to futures commodities). Commodity markets are basically used by industry, traders, importers and exporters to hedge commodity price risks

Foreign exchange market 

This is where currencies are exchanged and there are traders, arbitration, speculators and hedger in these markets. Globally, the Forex trading market is the largest compared to other asset classes. International trade growth makes it necessary to be able to determine the relative value of currencies that are given differences in their purchasing power. The need to exchange one currency to another to settle trade in goods and services carried by the risk of foreign exchange and which creates a strong forex market. India has had a rupee forward market offered by the bank for a long time, but offered by the Bank only opposes actual exposure. At present, it is possible to also trade currency pairs in the currency derivative segment of the Stock Exchange. The usinr, clear pair, the most popular and widely traded currency pair

Indian insurance market

Insurance business in India is regulated by Indian Insurance Regulatory and Development Authority (IRDA). This regulates life and non-soul insurance activities in India. Insurance is about sharing risks. Broadly, there are 3 sub categories at INS

Basics of Currency and Exchange Rate

What is Currency? 

Currency is a channel for exchange of goods and services. In short, it is money, in the form of paper or coins, usually issued by the government and is generally accepted at the value as a payment method. The currency is the main media exchange in the modern world, has long replaced Barter as a means of trading goods and services. The new form of currency has entered the vocabulary, virtual currency. Virtual currencies such as Bitcoin have no physical existence or government support and traded and stored in electronic form.

National currency 

According to Worldatlas.com, 180 national currencies recognized by the United Nations are currently circulating. 66 other countries use US dollars or their currency pegs directly to the dollar. Most countries issue their own currencies. For example, the official Swiss currency is a Swiss franc, and Japan is a yen. Exceptions are euros, which have been adopted by most countries which are members of the European Union.

The foreign exchange is the request where currency dyads are traded. Currencies always trade in dyads, similar as the INR/ USD, and dealers make positions grounded on their supposition of price changes. Currency price changes are measured in pips, which dealers use to establish tradepositions.The Rupee is represented by INR, the U.S. bone is USD, so the Rupee/U.S. bone brace is shown as INR/ USD. Other generally traded currency symbols include AUD (Australian bone), GBP (British pound), CHF (Swiss franc), CAD (Canadian bone), NZD (New Zealand bone), and JPY (Japanese yearning). 

Each forex brace will have a request price associated with it. The price refers to how important of the alternate currency it takes to buy one unit of the first currency. In forex, the base currency represents how important of the quotation currency is demanded for you to get one unit of the base currency. For illustration, if you were looking at the INR/ USD currency brace, the Indian Rupee would be the base currency and the U.S. bone would be the quotation currency. If the price of the INR/ USD currency brace is0.01311, this means it costs0.01311U.S. bones to buy one Indian Rupee or vice versa 1 USD = 76.3003 INR. 

Numerous currency dyads move about 50 to 100 pips per day ( occasionally more or less depending on overall request conditions). A pip (Percentage in Point) is the name used to indicate the 4th numeric place in a currency brace, or the alternate decimal place when JPY is in the brace. Pip represents the smallest whole unit of movement in a currency pair's exchange rate. If INR/ EUR moves from 1.1040 to1.1043, that .0003 EUR rise in value is 3PIP.A pip is generally the last decimal place of a price quotation. Utmost dyads go out to 4 decimal places, but there are some exceptions like Japanese yearning dyads (they go out to two decimal places). For illustration, for INR/ USD, it's0.0003, and for USD/ JPY, it's0.03. 

 INR / 1 USD : 76.2091 

INR / 1 GBP : 99.5296 

INR / 1 EUR : 82.7824 

INR / 100 JPY : 59.4800

Risk vs Return Perspective

 Understanding Risk-Return TradeOff

TradeOff Risk-Rett is a trading principle that connects high risk with high prize. If an investor has the ability to invest in the long-term equity, which gives potential investors to recover from the Bear Market risk and participate in the bull market, while if an investor can only invest in a short period of time, the same equity has a higher risk proposition .

In investing, risk and return are very correlated. Increased potential return investment usually runs along with an increased risk. Various types of risks include projects specific risks, industrial specific risks, competitive risks, international risks, and market risk. Return refers to the benefits or losses made from security trade.

Diversification allows investors to reduce the overall risk associated with their portfolio but can limit potential returns. Making investments in just one market sector, if the sector significantly outperforms the market as a whole, resulting in a superior return, but if this sector decreases then you may experience a lower return than that can be achieved with a broad portfolio.

Stocks, bonds and mutual funds are the most common investment products. All have a higher risk and return that has the potential to be higher than savings products. For decades, investments that have provided the highest average return rate are shares. But there is no guarantee of profit when you buy shares, which makes the stock of one of the most risky investments. If a company does not succeed or falls from assistance with investors, the stock can fall in price, and investors can lose money.

You can make money in two ways from having stock. First, the stock price can rise if the company does it well; This increase is called capital gain or appreciation. Second, the company sometimes pays a portion of the benefits to shareholders, with payments called dividends.

Bonds generally provide higher returns with higher risks than savings, and lower returns than stocks. But the promises of bond publishers to pay the principal generally make bonds less risky than shares. Unlike shareholders, bondholders know how much money they expect to be accepted, unless the bond issuer states bankruptcy or out of business. In the event, bondholders can lose money. But if there is money left, the corporate bond holder will get it before the shareholders.

The risk of investing in mutual funds is determined by the underlying risk of shares, bonds and other investments held by the fund. There is no mutual fund that can guarantee the return, and there is no risk-free mutual fund.

Always remember: the greater the potential return, the greater the risk. One protection against risk is time, and that is what young people have. On whatever day the stock market can go up or down. Sometimes it falls for months or years. But for years, investors who have adopted a "buy and resistance" approach to invest tend to come out in front of those who try to regulate market time.

Basics of Equity and Mutual Funds

Stocks are far more risky than equity mutual funds. Various equity mutual funds spread your investment in all sectors and industry and therefore reduce volatility in your investment. You have to do extensive research to choose the right stock before investing your money. In the case of equity mutual funds, this research was conducted by experts, and professional fund managers manage your investment. This service is not free and is equipped with annual management costs charged by a mutual fund house.

When investing as a beginner If you are a new investor with a little or without experience in the stock market, it is best to start your equity investment through mutual funds because it is not only a relatively lower risk, you also have a fund manager who manage your investment. You also have various types of equity funds and you can choose the best plan to achieve your financial goals based on risk tolerance.

Risk and return It has been determined that the equity of various mutual funds has the advantage of reducing risk by diversifying the portfolio. You can choose to invest in equity funds such as index funds, flexible funds, sector funds, elss or large funds depending on your risk and return expectations.

Tax increase You don't get tax benefits if you invest in stock. However, you are eligible for tax reduction to a maximum RS 1.5 lakh per year under the 80C section if you invest in a tax-saving mutual fund called Elss. You can invest in ELSS for twin-benefit returns and tax savings that defeat inflation.

Diversification A well-diversified portfolio must include at least 25 to 30 shares, but it will be a difficult task for small investors. With the equity of various mutual funds, investors can also obtain a diverse portfolio managed by fund managers. Fund purchase units allow you to invest in several shares. You can invest through SIP where you enter a small amount regularly in equity funding schemes.

Control on your investment In the case of equity mutual funds, the fund manager decides on shares to be included in the portfolio. You don't have control of the shares which must be chosen and for what duration.

Time You don't need to spend a lot of time researching individual shares if you invest in equity funds. Fund managers take care of your investment and the research team selects the right stock. However, you must check important parameters such as the Fund portfolio, AMC trace record, assets based on management and investment force from fund managers before investing your money in equity funds.

Investment Horizon You must invest in stock and equity funds with long-term investment horizons. However, you must be able to set the time out of your stock. You can follow the purchase and resistant strategy with equity funds to achieve your long-term financial goals.

Savings vs Investments

Saving and making an investment are each crucial requirements for constructing a valid economic foundation, however they’re now not the equal component. While each assist you to gather a more relaxed economic future, clients need to understand the differences and whilst it’s nice to store in comparison to at the same time as it’s great to invest.

Saving

Throughout your life, you will be faced with many decisions about savings and expenses. Your goals may vary from small purchases such as a new smartphone to larger purchases, such as a car or a house for long -term savings for retirement and all unknown. There are life events that you can plan and save, such as higher education or the start of a family, but it is impossible to predict unforeseen expenses. This is what makes savings important - you will therefore be ready for any type of expenses by having money put aside. We save for purchases and emergencies. Saving money generally way it is available even as we want it and it has a low threat of losing value. It's far important to tune your monetary financial savings, setting a deadline, or timeline, and rate on your desires. 

Investing

Whilst making an investment, it is vital to make investments correctly. You will have a better cross lower back if you begin making an investment early. Data superb investment vehicles, what they will be for, and a way to use them is critical to being successful. We make investments for long time desires, together with our youngsters' college fund or retirement. We use unique cars that permit for boom. If our kids have 10-plus years earlier than they visit university, we are able to make investments month-to-month in a vehicle like an education financial savings account. The ones allow for withdrawals when your toddler goes to university. Lengthy-time period university plans assist you to efficiently reap that cause. But with in reality no hazard. In assessment, making an investment lets in you the possibility to earn a better go back, however you're taking at the hazard of loss that lets in you to attain this.

Impact of Inflation on monetary financial savings

The aim of any investment is to triumph over inflation because with inflation the charge of cash erodes over time. If the current cost of purchasing a loaf of bread is Rs 30, in 10 years time the same loaf will price you Rs sixty four if the fee of inflation is eight%.

Therefore, even as you invest your intention ought to be to earn a move back that is greater than the charge of inflation. Say, you placed your cash in a monetary group account with a view to pay you hobby at 7%. A year later, you may have 7% extra cash. However, if inflation is more than 7%, it will purchase plenty much less than the amount which you started out with regardless of the truth that you've were given extra cash for your pocket.

If your purpose is to multiply your financial savings, you need to invest it in order that the interest or profits you earn is higher than the charge of inflation. Subsequently, to emerge as rich, all you want to do is invest to conquer inflation and do it frequently over the years in line with your economic plans!

Some of the distinction amongst financial financial Savings vs Investments are

• Objective: The objective inside the again of saving and making an investment is the most vital distinction a few of the . Financial savings are quick-time period and are used for emergencies and purchases, and can be executed with out a lot studies. Investments are made to gain large dreams like constructing wealth, investment education, shopping for a residence, and so on. They regularly require lengthy-term commitments and marketplace studies.
• Protection in opposition to inflation: The price of cash in a saving account drops while inflation is on the rise, but investments are incredible economic products to combat inflation.
• Returns: You generally earn a hard and fast and constant quantity of interest to your economic financial savings. Investments, however, have the capability to yield a whole lot better returns.
• Risk: economic savings usually have very low or negligible danger. Saving devices like FDs, RDs and financial savings bank payments will usually provide you with regular interest on them. However, investments supply high danger as their rate can variety in line with the market conditions and different economic and financial factors.
• Liquidity: financial savings contraptions are normally high liquidity units. Consequently, they offer you with immediately get entry to to coins as and at the same time as you need it. However, investments generally offer low liquidity and therefore economic specialists recommend in no way to invest your emergency budget.

Importance of Financial Planning

What is financial planning? 

Financial planning is a step-by-step approach to achieving your life goals. A financial plan serves as a guide for your life journey. Essentially, it helps you  control  your income, expenses, and investments so you can manage your money and achieve your goalsGives direction to your goals or dreams. Financial planning helps you better understand your goals, why you need to achieve those goals, and how they affect other aspects of your life and finances. Planning encourages you to control inflation. the price of different things and activities. You plan your budget better.Financial planning makes you disciplined with money. Don't spend unnecessarily. Keep track of your savings and expenses. When you plan your finances, you plan for the future. You can gain insight into your finances in the future.You have a clear idea of ​​how much money you would have in, say, ten years. You would be aware of the returns your investments should generate in order to achieve your goals. 

Financial Planning for Life Goals 

• Build Wealth Increase the price of goods you need if you want to maintain or increase your current standard of living in the future to build a sufficient body of wealth.
• Retirement Planning In order to enjoy a happy and comfortable life in retirement, you need to start building your safety net now. Planning early  in life can help secure your future against financial uncertainties. Invest even smaller amounts by starting early and benefit from the power of compounding  to help build a large enough corpus over the 25-30 year period. 
• Children Education has become very expensive not only in India but all over the world. And in the future, these costs will only increase. You should therefore start planning as soon as your child is born. Calculate how much you want to earn and invest in long-term investment opportunities that can help you achieve that goal. 
• Tax Savings You probably pay a significant amount in taxes every year. But now you can legally reduce your tax bill. The Indian Income Tax Act has several provisions that individuals can use to reduce their tax burden. By planning your taxes in advance, you can find the best ways to invest your money and reduce your taxable income. Mutual funds offer a tax-efficient way to invest in your life goals.

How to create a successful financial plan 

1. Understand your current financial situation 
2. Determine the status of your current finances 
3. Write down your financial goals 
4. Explore the different investment options
5. Implement the right plan 
6. Monitor your financial plan regularly

Insurance Development and Regulatory Authority (IRDA)

What is the Insurance Regulatory and Development Agency or IRDA? 

The Insurance Regulatory and Development Authority or IRDA is an autonomous body in India  responsible for  the administration of the Indian insurance industry, covering both life insurance companies and general insurance. Insurance sector is one of the big sectors in India which offers diverse opportunities to policyholders. It is therefore governed by a separate body known as the Insurance Regulatory and Development Authority or IRDA. IRDA acts as the leader of the insurance industry in India and regulates all the rules and policies for the various insurance companies in the country.The insurance industry in India has grown significantly over the years as more and more new companies enter the market. This has led to increased competition in the industry, both in the general insurance and life insurance sectors. All of these companies had their own set of rules and policies, which created confusion in the market. The Insurance Development and Regulatory Authority (IRDA) was formed to establish an established model of rules and guidelines to be followed by all insurance companies.Speaking of the Insurance Regulatory Development Authority (IRDA), it can be said that it acts as the head of the family that protects the needs of each family member  and maintains the balance between the family while  resolving the differences between the family members. and help them in crises. As the head of household is responsible for the entire family,  the Insurance Regulatory Development Authority (IRDA) is similarly responsible for the country's insurance industry  and directs the insurance industry by setting certain rules and regulations that all members and insurance companies must follow. 

How does the Insurance Regulatory and Development Agency (IRDA) work?

To this end, IRDA ensures that no insurance company can refuse a claim against a policyholder unless it falls outside the scope of coverage. To ensure fair practices in the industry, IRDA also requires monthly or annual audits of insurance companies. It also regulates the tariffs and conditions set by  insurance companies to ensure equality for all consumers. The Insurance Regulatory and Development Authority or IRDA also works to resolve any dispute or misunderstanding that may arise between the insurance company and the policyholder regarding the policy in question.

Responsibilities of the Insurance Regulatory and Development Agency or IRDA 

1. Protecting the interests of policyholders, giving them a sense of security and confidence in the policy they have invested in.
2. Promoting efficiency in running the insurance business.
3. Inspect and investigate insurers, brokers and other organizations. Regulate the investment of funds and the solvency margin of companies.

Types of Unsecured Loans available in India

 Loans without guarantee are loans that do not require guarantees. Lenders will give you money based on previous connections, scores and your credit history. Therefore, you must have good credit to utilize Thorloan. Guaranteed loans usually have a higher interest rate due to lack of guarantee.

Personal Loans: Most Banks Offer Personal Loans To Their Customers and The Money Can Be Used for Any Expenses, e.g. B. To pay bills or buy new TVs. , These Loans Are Unsecured Loans.The Lender OR Bank Will Require Certay Documents Such As Proof of Assets, Proof of Income, Etc. Before Approving the Amount of the Personal Loan. The borrower must have sufficient assets or income to pay for the loan. For personal loans, this application is 1 or 2 pages in length. The Borrower Learns About The Rejection OR Approval of the Loan Within A Few Days.Keep In Mind That The Interest Rate Associated With These Loans Can Be Higher. This loan period is not too long. So if you Borrow a Large Amount, You May Find it Difficult to Pay It Back Without Planning Your Finances Properly.

Small Business Loans: Small Business Loans Are Loans Made to Small and Medium-Sized Businesses To Meet Various Business Needs. This loan can be used for various purposes that help business grow. Pay Employee Salaries, Pay Marketing Expenses, Pay Off Business Debts, Settle Administrative Expenses, OR EVEN Open A New Store or Acquire A Franchise.

Education Loan - An Education Loan is Specifically Designed to Fund Educational Needs for School or College.Depending on the Lender, IT Covers Basic Course Fees, Exam Fees, Accommodation Fees and Other Various Costs. Students are borrowers and other close relatives are co-applicants, e.g. Parents, grandparents, couples or siblings. It can be used for courses in India or abroad. It can be completed part-time or full time for various recognized courses. They include vocational courses and undergraduate and postgraduate courses.

Credit card loan: When You Are Using A Credit Card, You Must Understand That You Will Have To Repay For All The Purchases You Make At The End of The Billing Cycle. Credit cards are accepted almost everywhere, even when you travel abroad. As it is One of the Most Convenient Ways to Pay for the Things You BUY, it has become a popular loan type.

Car loan:Buying a car can definitely instill a sense of joy and happiness within you. The car will remain as your asset and it will be one of the biggest investments you make. A Car Loan Helps You To Pave The Path Between Your Dream of Owning A Car and Actually Buying Your Car. Since Credit Reports Are Crucial for Judging Your Eligibility Towards Any Loan, It Is Good To Have A High Credit Score When You Apply For A Car Loan. The Loan Application Will Get Approved Easily And You Might Get A Lower Rate of Interest Associated With The Loan.Car loans are guaranteed loans. If You Fail To Pay Your Installment, The Lender Will Take Back Your Car and Recover the Outstanding Debt.

Two-wheel loan:Wheel two is quite important in the world today. May It be going for a long ride or a busy road in a city - Bikes and Scooters Help You to Commute Conveniently. Two-wheel loans are easily applied. This number that you borrowed based on this type of loan helps you buy two-wheeled vehicles. But if you do not pay the installments on time and clear your debt, The Insurer Will Take Your Two Wheeler To Recover the Loan Amount.

Payday loan:Payment loans are also called salary loans. This is a short-term unsecured loan that requires customers to be employed with permanent income. They usually have high interest rates. This is based on the Petitioner's credit profile, age and income. The required documents will be a salary statement and other income.

Down payment: This loan is offered by credit card publishers and allows credit card users to withdraw cash from ATM machines using a credit card. The amount of cash that can be withdrawn from a credit card this way will depend on the available credit limit. Cash must be paid back with interest, which is usually counted since the cash day has been withdrawn. There are also other fees related to advances, such as the cost of down payments and ATMs or banks.

Agricultural loans:Agricultural loans are loans given to farmers to meet the costs of everyday or public agriculture requirements. This loan can be in the form of short or long term. They can be used to increase working capital for plant cultivation or buy agricultural equipment. In accordance with RBI norms, agrarian loans to RS. 1 lakh does not require guarantees or security.

Loans for credit cards:Loans for credit cards such as personal loans taken against your credit card. This is usually a previously agreed loan that does not require additional documentation. Depending on the lender, this can be converted into a personal loan that is interested in a certain period of time. After that, it will withdraw the percentage of certain interests. There are processing fees related to converting the previously set credit limit into the loan.

Loan durable consumers:Long-lasting loans Consumer is a loan available to finance the purchase of consumer durability such as electronic gadgets and household appliances. Depending on the lender, they can be used to buy anything from cellphones to television. The number of loans ranges from Rs.5,000 to RS.5 Lakh. Usually it doesn't require a deposit. Some lenders offer 0% interest on consumer durable loans with instant approval and minimal documentation also needed.

Types of Secured Loans available in India

Secured Loans Secured loans  are those where you have to pledge an asset as collateral for the money you borrow from the lender. That way, if you are unable to repay the loan, the lender still has somethingmeans money back. The interest rate on secured loans tends to be lower  compared to unsecured loans. 

Home Loan – If you are looking to buy a home, applying for a home loan can go a long way.It offers financial support and helps you buy the house for you and your loved ones. These loans usually have longer terms (20  to 30 years). The rates offered by some of the major banks in India. Your creditworthiness will be checked before the lender approves the loan application. If you have  good credit, chances are you'll benefit from lower interest rates on your home loan.Mortgage loans are mainly taken out for the purchase of new houses. However, these loans can also be used for home renovations, home extensions,  land purchases, houses under construction, etc. 

Loan Against Property (LAP) A loan against property is one of the most common forms of a secured loan. You can mortgage any residential, commercial or industrial property to have the necessary funds. The loan amount paid out iscorresponds to a certain percentage of the  value of the property and varies between lenders. While some lenders may offer as much as 50-60% of the property's value, others may offer as much as almost 80%. A home equity loan  helps you unlock the idle value of your assets and can be used for personal life goals like higher education for children or marriage.Businesses use a loan against the property for business expansion, RandD, and product development, among other things.

Loans against insurance policies you don't qualify for that. Credit can only be drawn on policies such as endowment insurance and money back policies that have an expiry value. Therefore, you cannot take out a loan against  term life insurance  as there are no term benefits. .In addition, loans cannot be used against unit-linked plans as the returns are not fixed and depend on themarket performance. It is important to note that you can only opt for a loan with endowment insurance and buyback insurance once they have reached a surrender value. These policies only acquire surrender value after three years of uninterrupted premium payments. 

Loan Against Fixed Deposits:This is a type of loan where your fixed deposit is the security. For example, if you have a fixed deposit of Rs.10 lakh in the bank, you can get a loan of up to Rs.8 lakh. However, the interest rate on this type of  loan is usually higher than the fixed deposit rate.Loans Against Mutual Funds and Stocks: Certain lenders provide loans against the value of your mutual fund and the value of the stock. However, you cannot borrow large amounts with these types of loans.

Gold Loan: A gold loan can be used to raise cash to meet planned or urgent financial needs like business expansion, education, medical emergencies, agricultural expenses, etc.A loan against gold is a secured loan where gold is pledged as collateral or pledge against a loan amount equal to the market value per gram  of the gold on the date the gold is pledged. Any other metals, gems or stones. that are in the jewelry are not included in the valuation of the gold loan. 

Loan Products from Banks

Credit can be used for various things in today's world. With this you can finance a business start-up or buy equipment for your newly acquired home. Let's talk about the different types of loans available in the market and their specific features that make these loans useful. to the customers. Various types of loans are available in India, which are classified into two factors depending on their purpose:

Secured Loans 

Unsecured Loans 

Secured Loans Secured loans  are those where you have to pledge an asset as collateral for the money you borrow from the lender. That way, if you are unable to repay the loan, the lender still has somethingmeans money back. The interest rate on secured loans tends to be lower  compared to unsecured loans. 

Home Loan – If you are looking to buy a home, applying for a home loan can go a long way.It offers financial support and helps you buy the house for you and your loved ones. These loans usually have longer terms (20  to 30 years). The rates offered by some of the major banks in India. Your creditworthiness will be checked before the lender approves the loan application. If you have  good credit, chances are you'll benefit from lower interest rates on your home loan.Mortgage loans are mainly taken out for the purchase of new houses. However, these loans can also be used for home renovations, home extensions,  land purchases, houses under construction, etc. 

Loan Against Property (LAP) A loan against property is one of the most common forms of a secured loan.You can mortgage any residential, commercial, or industrial property to draw on the funds you need. The loan amount paid out corresponds to a certain percentage of the property value and varies depending on the lender. While some lenders may offer an amount as high as 5060% of the property's value, others may offer an offeran amount of almost 80%. A home equity loan  helps you unlock the latent value of your assets and can be used to further personal life goals such as higher education for children or marriage. Businesses use a loan against the property for business expansion, R&D, and product development, among other things.

Gold Loan – A gold loan can be used to raise cash to meet planned or urgent financial needs like business expansion, education, medical emergencies, farming expenses, etc. A loan against gold is a secured loan where gold is placed as security or collateral against a loan amount equal to the market value per gram  of gold on the date the gold is pledged. Any other metals, gems or stones found in the jewelry are not counted in determining the  gold loan value.

Unsecured loans are loans that do not require collateral. The lender will give you the money based on previous connections, your credit score and history. Therefore, you must have  good credit  to take advantage of themLoan. Unsecured loans usually have a higher interest rate  due to the lack of collateral. 

Personal Loans: Most banks offer personal loans to their customers and the money can be used for any expenses, e.g. B. to pay a bill or to buy a new TV. , these loans are unsecured loans.The lender or  bank will require certain documents such as proof of assets, proof of income, etc. before approving the amount of the personal loan. The borrower must have sufficient assets or income to repay the loan. For personal loans, the application is 1 or 2 pages long. The borrower learns about the rejection or approval of the loan within a few days.Keep in mind that the interest rate  associated with these loans can be higher. The term of these loans is not that long. So if you borrow a large amount, you may find it  difficult  to pay it back without planning your finances properly. 

Small Business Loans:Small business loans are loans made to small  and medium-sized businesses to meet various business needs. These loans can be used for a variety of purposes that help  the business grow. Pay employee salaries, pay marketing expenses, pay off business debts, settle administrative expenses, or even  open a new store or acquire a franchise. 

Education Loan – An education loan is  specifically designed to fund educational needs for school or college.Depending on the lender, it covers basic course fees, exam fees, accommodation fees and other various costs. The student is the borrower and any other close relative is the co-applicant, e.g. a parent, grandparent, spouse or sibling. It can be used for courses in India or abroad. It can be completed part-time or full-time for a  variety of recognized courses. They include vocational courses as well as bachelor and postgraduate courses.

Types of Credit Cards in India - Part 2

Co-branded credit score cards Co-branded credit playing cards are presented by way of banks in association with a retail logo, travel aggregator or every other business enterprise this is monetary. Privileges from each the events are included into a credit score this is co-branded, letting customers enjoy double advantages through one card. The maximum successful credit that is co-branded could be those issued at the side of retail traders as banking institutions can in reality expand their patron base through the service provider’s shoppers. based on the tie-up, co-branded credit score playing cards may have advantages like rebates, gives and discounts from a retail associate emblem, wearing benefits from a sports activities league, solution scheduling privileges from flight and railway companions, holiday and lodge lodging privileges from journey aggregators and leading lodge chains, and many others. although those bank playing cards deliver features from  entities which might be key there is no restrict on the usage.

Rewards credit playing cards are understood for providing rewards which might be multiple every card transaction. Cardholders can earn rewards factors on all their retail, on line, and so forth. card transactions. apart from this, they could earn praise factors as welcome gift, birthday gift, renewal bonus, etc. They can also earn factors once they make investments a amount that's positive a selected period of time. these praise factors can be redeemed for products/services stated inside the rewards catalogue, along with cashback gives, air miles, tour offers, and so on. a few cards enable cardholders to make payments almost about their purchases in instalments.

commercial enterprise credit score playing cards are provided to enterprise establishments, corporates along with other establishments that are economic the corporation can provide credit cards to their employees and additionally with no trouble manage the finances on the cardboard. those playing cards cannot be used by the personnel for character transactions and are legitimate handiest during the organisation for their work length. The privileges presented on company cards are hotel lodging and journey deals, enterprise financial savings plans, expense control, insurance, gasoline surcharge waivers, airport lounge get admission to, rewards programs, cash boost, add-on playing cards, bill payments and picks to convert purchases into monthly installments. businesses additionally have the option of having the proper name of the organisation embossed on those credit cards.

lifestyle credit cards are made bearing in mind the life being converting income of the applicants. most credit score this is lifestyle deliver golfing privileges, purchasing privileges, dining, journey and other advantages. those cards normally include very first yr fee that is annual, cashback on tickets, coverage reductions, and so on. clients can earn bonus and increased rewards points with life-style credit score cards on their purchases. lots of those playing cards are Platinum credit cards and offer tour that is superior shopping, dining and comfort lifestyle privileges. as an example – Axis financial institution Signature credit card with life-style benefits.

leisure credit score playing cards amusement credit playing cards are super for their tremendous entertainment gives, which incorporates discounts, cashback or purchase 1 have 1 gives which can be free movie price tag bookings, occasions, suggests, and many others. those playing cards additionally offer way of life, golf, eating, travel and buying benefits to the cardholders. apart from this, customers can earn rewards points on these transactions and redeem them for film tickets, journey bookings or gift playing cards.

top class/Signature credit score cards maximum banks offer a “premium” or “Signature” credit card that consist of the greatest of way of life privileges. top class credit cards are in a league in their very own with distinctive privileges like bendy spending limits, premium airport lounge get entry to, concierge offerings, complimentary coverage, advantages program, international guide services, chartered yacht and flight solutions, surcharge waivers, retail, travel and hotel accommodation vouchers, and so on. there are many extra alternatives for redeeming rewards which can be earned using these cards. a number of the ones cards offer annual charge waiver, furnished the cardholders reach a spend quantity that is sure.

prepaid credit cards permit cardholders to load a amount that is sure of in it and employ that money to make the purchases. despite the fact that those playing cards do perhaps now not offer a relative sort of credit score, customers can enjoy maximum of the privileges which may be furnished by using the opposite sorts of credit score playing cards. The exquisite stability is the amount this is left into the prepaid card by way of the customer after creating a deal this is specific.

Gold credit playing cards individuals with better earnings can avail a credit score that is gold from any bank in India. candidates for any form of gold credit score card have to have a credit score score that is ideal. 

classic credit cards include functions like worldwide recognition, revolving credit score, coins increase, interest free credit length, rewards application, supplementary cards, insurance and a committed 24/7 customer service helpdesk for clients. maximum credit score this is classic do no longer carry annual prices or becoming a member of charges and they may be provided with the aid of low finance fees.

Titanium credit score cards are top rate cards that come with plenty of privileges and benefits. The function this is key of Titanium price card is the Titanium Rewards program that exists to the clients. This rewards software includes accrual of rewards points, redemption for items and air miles, cashback affords, and so forth. other privileges that come with any Titanium credit card are surcharge waivers, revolving credit score, interest loose credit length, every year rate reversals, coverage, welcome gift tips within the sort of vouchers from pinnacle retail brands, upload-on card facility, well-being and splendor presents, lifestyles style and dining benefits, and many others.

Platinum card is many of the many credit score this is popular and is owned by numerous human beings because of the quantity of advantages and privileges it affords. The blessings encompass way of life, dining, entertainment and shopping provides, and so on. the yearly, joining and price this is renewal of playing cards definitely are a bit better contrasted to different forms of credit score playing cards.

Types of Credit Cards in India - Part 1

There are many banks in India that provide various types of credit cards. Distributed cards based on the prizes and benefits they offer and income and expenditure of applicants' needs. Customers can choose any credit card that helps them utilize many benefits and are ideal matching for their needs. For example - if you travel a lot, then travel cards are the best for you because it can help you get air miles, airport lounge access, etc. In India, credit cards are offered to work with the following payment networks - Visa, MasterCard, American Express, Diner clubs, etc.

The different categories of credit cards are 1) Fuel Credit Cards 2) Contactless Credit Cards 3) Credit cards for Women 4) Travel Credit Cards 5) Cashback Credit Cards 6) Co-branded Credit Cards 7) Rewards Credit Cards 8) Business Credit Cards 9) Lifestyle Credit Cards 10) Entertainment Credit Cards 11) Premium/Signature Credit Cards 12) Prepaid Credit Cards 13) Gold Credit Cards 14) Silver Credit Cards 15) Classic Credit Cards 16) Titanium Credit Cards 17) Platinum Credit Cards 18) Fuel Credit Cards

Fuel credit cards offer benefits to any fuel transactions made by cardholders. This card helps customers save refueling by giving them a cashback offer and neglect of additional fuel costs. Some banks also offer accelerated award points on fuel transactions, if made in certain gas stations throughout India. Accumulation of Rewards Points can be redeemed to refuel for predetermined values. Other additional benefits include activation bonuses, entertainment benefits, eating places, hotels and health offers, etc.

Credit cards without contacts are equipped with unique payment technology that allows cardholders to make payments by just tapping their cards in the postal terminal. This contact without contact does not require customers to enter any pin number to make purchases and are very safe. These cards offer several benefits such as discounts, money benefits, entertainment benefits, gift points, welcome gifts, access lounges, concierge services, insurance policies, etc.

Credit cards for women to ensure their female customers get maximum benefits, some banks have introduced a credit card specifically designed for women. This female credit card mainly focuses on shopping gifts and cashback offers. Apart from this, the card holder can obtain bonus prize points, neglect of additional fuels, insurance, etc. They can also get prize points when they make a purchase using their credit card. There are several credit cards for women who offer exceptional travel benefits.

Travel credit cards are popular because of the benefits of trips without the limits they offer. These cards not only offer the benefits of travel in India, but also abroad. Most banks have been tied with airlines or travel companies to offer travel credit cards. When customers use this card to make travel transactions, they can get air miles. Apart from this, several travel cards provide access to the airport lounge to customers. The gift points produced by the customer on these cards can be converted to water miles, which can then be used to order flight tickets and increase seats. Travel cards also provide hotel and vacation offers, golf offers, dew offers, travel insurance, etc.

Cashback credit cards offer cashback to customers on their transactions, which vary from 5% to 20% depending on the category of expenditure. Cashback can be obtained with bill payments, book ticket bookings, retail purchases, feeding bills, purchasing food ingredients, etc. The main features available with each cashback card are the neglect of additional fuels, reversal of annual fees, dining rooms, and award programs, global acceptance programs, transfer balances, etc.

Type of debit card in India

Visa Debit Cards: Visa Debit Cards are considered as the most accepted debit cards globally for all types of online and electronic transactions. The type of debit card is issued by a bank that has been tied with an international visa payment system network. Online transactions take place through a verified verified visa payment platform. The card holder also has overdraft facilities. There are various types of debit cards. Usually, the bank issued a classic debit card visa, a visa gold debit card, a platinum visa debit card, a visa signature debit card, and Infinite Visa Debit Card. Each card has its own unique feature.

MasterCard Debit Card: MasterCard Debit Card is included in a popular type of debit card. MasterCard is one of the most accepted electronic payments in the world. With MasterCard, you can access the current savings or account through the SecureCode company payment platform.

Rupay Debit Card: Rupay Debit Card was introduced in India. The type of debit card is issued under the domestic debit card scheme by the National Indian payment corporation. These cards are only accepted domestically. Rupay Debit Cards can be used to make various domestic transactions: You can pay for online purchases and retail outlets and utility bill payments. This debit card is mainly launched to provide electronic access to bank accounts to people who live smaller cities and villages. Rupay Debit Card is issued by all major public and private banks. Alternative is a good alternative to MasterCard and Visa. Low transaction costs and easy availability even in rural areas make Rupay an interesting choice.

Debit card without contact: Debit card without contact allows payment to be made without swiping the card. Simply wave this card through the payment machine. Transactions are automatically processed. This debit card offers a transaction method without a faster cash. This debit card functions on the principle (close frequency identification near near) or RFID. Through this technology, the card is connected to the postal terminal. The type of debit card is a very safe way to make electronic payments. You don't have to submit a card to the cashier. This prevents the cashier from duplicating or storing details of your debit card. Amjor banks in India such as Bank Negara India, Axis Bank, and HDFC Bank published contact cards.

Visa Electron Debit Card: Visa Electron Debit Card is very similar to a visa debit card except that the card holder does not have overdraft facilities. This debit card ensures that you are not exaggerating. This debit card can be used for cash withdrawals at domestic and international ATMs. There is no interest cost that is picked up when you withdraw money using a visa electron debit card. Payments at the postal terminal for all types of transactions are also allowed. However, please note that the electron visa debit card was not accepted in Australia, Canada, the United States and Ireland. You cannot use a visa electron debit card to make offline payments in flights, trains, etc., the reason is the inability of the terminal post to confirm if funds are transferred in real time. Most Indian banks such as Syndicate Bank, Bank of India and Bank of Maharashtra issued a Visa Electron Debit Card.

Maestro Debit Card: Maestro Debit Card Similar to MasterCard Debit Card. These cards are accepted globally. You can use this card to withdraw cash at ATMs around the world. Payment for online purchases, and for transactions at domestic and international post outlets can be done through this card. Except for ICICI Bank, this card is a popular choice for most banks including Indian state banks, Bank Oriental Commerce, Rajasthan Bank and Syndicate Bank.

Basics of Credit Card and Debit Card

Debit cards allow you to spend money by withdrawing money that you have deposited at the bank. If you use a debit card, the  amount of your purchase will be debited from your checking account in near real time. Credit cards allow you to borrow money from the card issuer, up to a certain limit, to purchase items or withdraw cash. If you use a credit card, the amount will be charged to your line of credit, which means you  pay the bill at a later date, which also gives you more time to pay. 

Pros and cons of debit and credit cards

Debit Card Pros There is no debt as you are using your own money. It is cheaper to use as there are no interest charges. It also doubles as an ATM card, so you can use it to withdraw money from an ATM.Approving a debit card is easier and faster. Building a credit history doesn't help. 

Debit Card Cons You have no option to keep cash in your account as the money is debited directly. You can make it harder to balance your savings account at the end of the month if you don't keep track of your spending.If you withdraw money from another bank's ATM, you may be charged a fee. There is very little protection against debit card fraud. Check your eligibility

Credit Card Pros Credit cards are extremely practical and save you  having to carry cash with you. Credit cards help you build your credit score. The rewards you earn are much higher than with debit cards. come with relatively high credit limits. 

Credit Card Cons If you don't pay your bills on time or in full, you will be charged  high interest. Credit cards have different fees. Missing a payment (even for real reasons) can negatively impact your credit score. You have to work a lot harder to build it. Although there is a credit limit, you could always be tempted to spend more than  you have.This leads to debt.

Basics of Banking Part II

The following are the functions of  banks in India: Accepting deposits from the public Providing facilities for retrieving disbursements Lending Facility Transferring fundsissuance of payment instructions. Currency Handling The following are the different types of banks in India: Central Bank Cooperative Banks Commercial Banks Regional Rural Banks (RRB) Local Banks (LAB) Specialty Banks Small Financial BanksPayment Banks

Central Bank The central bank of our country is the Reserve Bank of India. Every country has a central bank that oversees all  other financial institutions in the country. institutions

Co-operative banks These banks are governed by a law issued by the state government. They provide short-term credit to agriculture and related industries. The main goal of the cooperative banks is to improve social welfare by providing low-interest loans. commercial banksThey work on a commercial basis, with profit as their main objective. They are owned by the government, the state or a private company and have a unified structure. They serve all sectors, from rural to urban. Unless otherwise stated by the RBI, these banks do not charge favorable interest rates. 

Commercial banks in India 1) Public banks 2) Private banks 3) Foreign banks

Local Area Banks (LAB)The private sector organizes them.The main goal of local banks is to generate profits. Local banks are governed by the  Companies Act 1956. There are now only four local banks, all  located in South India. 

Specialized Banks Certain banks only exist  to serve a specific purpose.Specialist banks are the designations for different types of financial institutions. Here are some of them: SIDBI (Small Industries Development Bank of India) SIDBI can provide a loan to a small business or company. With the support of this bank, small businesses can obtain up-to-date technology and equipment. Export and Import Bank (EXIM Bank) EXIM Bank means Export and Import Bank.This type of bank can provide loans or other financial assistance to foreign countries that export or import goods. NABARD (National Bank for Agricultural and Rural Development): People can turn to NABARD for any kind of financial support for rural, artisan, village and farm development activities Small Financial Banks This type of bank, as the name suggests, offers Loans and grants to micro-industries, small farmers and the unorganized sector of society The country's central bankThe Reserve Bank of India conceived the payments bank, a newly developed form of banking. People who have a payment bank account can only deposit up to Rs. 1,00,000 and cannot apply for any loans or credit cards through this account. 

Payment banks offer services such as internet banking, mobile banking, ATM card issuance and debit card issuance. The following is a list of the few payment banks in our country:Airtel Payments BankIndia Post Payments BankFino Payments BankJio Payments BankPaytm Payments BankNSDL payment bank

Basics of Insurance

 The basic principle of insurance is that a company chooses to regularly spend small  amounts of money against the possibility of a large unexpected loss. In principle, all policyholders bear their risks together. Any loss they suffer is paid for by their premiums that they pay. 

What is insurance? 

Insurance is a legal agreement between two parties i.the insurance company (insurer) and the person (insured). The insurance company undertakes to compensate the insured for damage if the insured event occurs. Contingency is the event that causes a loss. This may be the death of the insured or property damage/destruction. It is called  contingency because there is uncertainty about the occurrence of the event.The insured pays a premium for the insurer's commitment. 

How does the  insurance work? 

The insurer and the insured enter into a legal contract of insurance known as an insurance policy. The insurance policy contains details of the conditions and circumstances under which the insurance company will pay  the insured sum to  the insured person or the authorized representatives.Insurance protects you and your family from  financial loss. In general, the premium for good insurance coverage is much less for the money paid. The insurance company bears the risk of offering high coverage for a small premium, since very few policyholders actually use the insurance. That's why you get insurance for a large sum at a low price.Any individual or business can apply for insurance from an insurance company, but the decision to provide insurance is at the discretion of the insurance company. The insurance company will review the claim application to make a decision. applicant. 

Reduce risk 

Even if you are in an armored vehicle, there is always  some risk that the map will tip over.You can lead an extremely healthy lifestyle and exercise regularly, but whatever your health condition, there are risks such as: Personal accidents. The point you need to understand here is that no matter how hard you try, there will always be some risk in our activities. It is important to have a thorough understanding of the various risks that can arise throughout life. There are two types of risk: tolerable risk and intolerable risk. For example, we can afford to lose our portfolio with a few hundred or thousandsBut we cannot afford to have our car, worth thousands of rupees, or our house lost or damaged in the same way. At its core, insurance is  about risk reduction. For risks that exceed our tolerance level, insurance products provide a way to protect against specific events/conditions. Click here to stay protected with a comprehensive suite of insurance solutions that Standard Chartered offers you through its insurance partners.

Following are the types of life insurance available in India:  

Life insurance

Health insurance

Car insurance

Education Insurance

Home insurance

Basics of Taxation

Taxes are important and largest income sources for the government. The government used the money collected from taxes for various projects for the development of the nation. The Indian tax system is well structured and has a three-level federal structure. There are two ways to classify various types of taxes in India: Taxes are collected by the Central Government and state government 

By the Central Government: This includes income tax (exception is tax on agricultural income), customs, corporate tax, customs, land duties, and more 

By the State Government: Taxes on agrarian revenues, VAT (additional taxes), electricity consumption and sales tax, land income, toll roads and more 

By local civil bodies: city companies and other local government agencies collect taxes such as property taxes 

What is Direct Tax? Direct taxes imposed on corporate entities and individuals. These taxes cannot be transferred to others. For individual taxpayers like you, the most important type of direct tax is income tax. This tax is collected for each year of assessment (April 1 to March 31). In accordance with the income tax law, 1961, is mandatory for you to pay income tax if your annual income is above the minimum liberation limit. You can get tax benefits under various parts of the Act. Before we talk about tax benefits, it is important for you to understand the income tax slab. 

What is indirect tax? The meaning of the tax does not directly reflects the type of taxation that applies to the sale of goods and services. Thus, this is different from the direct tax charged to the income you get. In indirect taxes, people where the load falls and people who pay different taxes. The seller is required to pay this tax to the government (eg, manufacturers, retailers,). But because they sell goods to consumers, they pass the burden of paying taxes to you. Thus, when you buy goods, you pay the amount of tax for the seller. The seller then pays taxes to the government. 

Other taxes Another tax is a small income generator and is a small CESS tax. Various other sub-categories of tax are as follows: 

Property Tax: This is also called real estate tax or city tax. Residential and commercial property owners submit to property taxes. This is used for maintenance of several fundamental civil services. Property tax is collected by city bodies based in every city. 

Professional tax: This work tax is collected in those who practice profession or earn money income such as lawyers, rented accountants, doctors, etc. This tax is different from the state to the country. Not all declare professional tax retribution. 

Entertainment tax: This is tax imposed on television series, films, exhibitions, etc. Tax is collected in the gross collection of income. Entertainment tax is also referred to as entertainment tax. 

Registration fee, stamp duty, transfer tax: This is collected in addition or as a supplement to property tax when buying property. 

Education Cess: This is collected to fund education programs launched and maintained by the Indian government. 

Tax Entry: This is a tax collected on products or items that enter the country, specifically through e-commerce companies, and apply in the state of Delhi, Assam, Gujarat, Madhya Pradesh, etc. 

Road tax and toll tax: This tax is used for road maintenance and toll infrastructure. 

Tax benefit. Tax objectives are to provide funds for expenses without inflation. Taxes are used by the government for various purposes, some of which are: Public infrastructure funding Development and Welfare Projects Defense expenses Scientific research Public insurance Civil servant and government salaries Government operation Public transport Unemployment advantage Retirement scheme Law enforcement Public health Public education Public utility

Saving and Investment Products

1) Public Provident Fund (PPF) The PPF is traditionally regarded as one of the best and best investment vehicles in India and is among the best small savings plans. PPF account holders can invest up to Rs 1.5 lakh in a  financial year, the minimum deposit required is Rs 500.Deposits can be made in one sum or in 12 installments. PPF deposits are deductible from income under Section 80C of the Income Tax Act. This means that an investor does not have to pay any taxes on the three levels of investment, incorporation and withdrawal. 

2) mutual fundsMutual fund dealers allow you to compare  funds based on various metrics such as risk level, performance and price. Additionally, since the data is easily accessible, the investor should be able to make smart decisions. In addition, mutual funds offer advantages in terms of liquidity and professional management 

3) Direct Equity Direct plans help you  save money on commissions and expenses related to marketing.This small saving is credited to the program and  could allow you to earn additional returns over a longer period of time. 

4) Real Estate Investing Real estate investing is among the most suitable and lucrative in India as the  development opportunities are enormous as the market continues to grow. 

5) Gold Investment Traditionally regarded as one of the  best options, gold investment plans offer you the opportunity to turn tied up wealth into high-quality liquidity.

6) Correos Savings Plan Ideal for retirees who need a steady income,  includes the ability to convert accounts. these can be public IPOs)IPOs of well-known companies are an ideal, low-risk and long-term investment opportunity. are among the best investments in India.

7) Business Deposits, which are Fixed FDs) Business deposits  offer higher interest rates than bank FDs and are ideal for long-term investments. 

8) Initial offerings, which can be public IPOs) IPOs launched by reputable companies represent an ideal long-term, low-risk investment opportunity. 

9) ULIPs (Unit Linked Insurance Policies)ULIPs offer a number of benefits and offer the combined benefits of insurance and investment. Known for their income tax benefits, ULIPs are among the best investments in India. 

10) BondsBonds are typically liquid, making it easy for an organization to sell a  large amount without greatly impacting costs. The investment term and the returns are payable  monthly, annually or semi-annually, depending on the banking policy. 

12) Senior  Savings Plan (SCSS)SCSS are tax-free and a risk-free investment  for  residents over the chronological age of 60. They offer high interest rates  and are very lucrative. 

13) RBI Taxable Bonds These RBI bonds are valid for 7 years and are issued in the form credited to the annuity book account holder

14) National Pension Scheme This is a government organized pension product for workers in all sectors. in India and offers equity, corporate bond and government bond based plans. A minimum contribution of Rs 6,000 per year is required in NPS while there is no upper limit.

Reserve Bank of India (RBI)

Reserve Bank of India (RBI) is an Indian central bank whoever main function is managing and regulates the state system that is financial. This will be a entity that is appropriate in 1935 under the book of Bank of India Act, 1934. The bank that is central the problem and method of getting Indian rupees. It also keeps the government money that is central. The bank that is central the part of bankers and regulates the banking sector. It also plays an role that is essential the tale of India's development by supporting the government in its development projects and policies. RBI headquarters, in Kolkata when the bank ended up being established, shifted to Mumbai in 1937. Initially, the financial institution is owned physically. However, after freedom, nationalized in 1949 and is now fully owned by the government that is indian. 

Exactly what is the function that is main of RBI? The opening of the RBI said ... "To regulate paper cash problems and keep reserves using the intention of securing stability that is monetary India and generally speaking operating the currency and state credit system for its benefit; to have the superiority of the monetary policy framework to meet increasingly complex economic challenges, for Maintain price stability while remembering growth goals. " Some RBI that are basic are: 

1. Publisher Note: RBI could be the institution that is only has control over currency note publishing (aside from one rupee record, that will be printed by the Ministry of Finance). 

2. Bankers to the us government: RBI conducts banking functions for the state and government that is central. It recommends the government about financial policy issues and also manages government debt that is general public. 

3. Bank Banker: Central Bank normally referred to as Banker's Bank because it performs a function similar from what banks that are commercial for their customers. 

4. Credit Regulations: RBI regulates the movement of money in hawaii system that is economic. It controls inflation in the economy and makes the insurance policy choices required from time to time to conquer dilemmas that are systemic. 

5. Foreign backup: The central bank purchases and sells foreign currencies to keep a stable exchange price that is foreign. Needed steps needed so when needed. 

6. The role in developing the country: RBI performs functions which are different makes decisions had a need to offer the government's development agenda. 

Basics of Banking - Part I

The banking sector is the lifeblood of any modern economy. It is one of the main financial pillars of the financial sector, which plays a crucial role in the functioning of an economy. Financing is very important for the economic development of a country The demands of trade, industry and agriculture are met with greater commitment and responsibility. Therefore, the development of a country is inseparable from the development of banking. In a modern economy, banks should not be viewed as intermediaries in money, but as a development leader as they are playing a key role in organizing deposits and disbursing loans to various sectors of the economy. 

The banking system reflects the country's economic health. Economy depends on the strength and efficiency of the financial system, which in turn depends on a solid and solvent banking system. A strong banking system efficiently organizes savings in productive sectors, and a solvent banking system ensures that the bank can meet its obligations to  depositors. In India, banks play a crucial role in the country's post-independence socio-economic progress. The banking sector is dominant in India and accounts for more than half  of the financial sector's assets. Indian banks have gone through oneexciting phase due to the rapid changes caused by financial sector reforms that are being implemented step by step. own without burdening the government.

Following the liberalization of the Indian economy, based on  the recommendation of the Narasimhan Committee, the government announced a series of reform measures to make the banking sector  viable and competitive. of the banking system to politics.Now that the crisis is almost over, the Government of India (GOI) and the Reserve Bank of India (RBI) are trying to learn lessons. The RBI is making the necessary changes in its policy to ensure price stability in the economy.The main goal of these changes is to increase the efficiency of the banking system as a whole, as well as  individual institutions. Hence, there is need to calculate the caliber of Indian banks to take corrective measures to improve the health of the banking system.