Financial Literacy Awareness Program - Basic, Intermediate, Advanced Module

 Basic Module

• Introduction to Financial Literacy: This module will provide participants with a foundation in financial literacy concepts, such as income, expenses, budgeting, savings, and investment.
• Setting Up Financial Goals: This module will help participants to define their financial goals and develop a plan to achieve them.
• Budgeting - Income vs. Expenses: This module will teach participants how to create and manage a budget that aligns with their financial goals.
• Budgeting - Prioritizing Needs: This module will help participants to prioritize their expenses and allocate their income accordingly.
• Understand Interesting Concepts: This module will explore a variety of financial concepts, such as inflation, compound interest, and risk tolerance.
• Basics of Investment: This module will introduce participants to the basics of investing, such as different asset classes, investment vehicles, and risk management strategies.
• Banking Basics - Part I: This module will cover the basics of banking, such as opening and managing a bank account, using a debit card, and writing checks.
• Reserve Bank of India: This module will discuss the role and responsibilities of the Reserve Bank of India, the central bank of India.

Intermediate Module

• Introduction to Financial Literacy: This module will build on the foundation of the Basic Module and explore more advanced financial concepts, such as taxation, insurance, and credit.
• Savings and Investment Products: This module will provide participants with an overview of different savings and investment products, such as savings accounts, mutual funds, and stocks.
• Basic Taxation: This module will introduce participants to the basics of taxation, such as income tax and sales tax.
• Basic Insurance: This module will cover the basics of insurance, such as different types of insurance policies and how to choose the right policy for your needs.
• Banking Basics - Part II: This module will cover more advanced banking topics, such as loans, credit cards, and online banking.
• Basics of Credit Cards and Debit Cards: This module will teach participants how to use credit cards and debit cards responsibly.
• Loan Products from Banks: This module will provide participants with an overview of different types of loans offered by banks, such as personal loans, mortgages, and auto loans.
• Insurance Regulatory and Development Authority (IRDA): This module will discuss the role and responsibilities of the Insurance Regulatory and Development Authority, the regulatory body for the insurance industry in India.

Advanced Module

• The Importance of Financial Planning: This module will discuss the importance of financial planning and how to create a financial plan that meets your individual needs.
• Savings vs. Investments: This module will compare and contrast savings and investments, and help participants to determine which option is right for them.
• Basics Equity and Mutual Funds: This module will provide participants with an overview of stocks and mutual funds, two of the most popular investment vehicles.
• Risk vs. Returns Perspective: This module will discuss the relationship between risk and returns, and help participants to develop a risk tolerance profile.
• Basics Currency and Exchange rates: This module will introduce participants to the basics of currency and exchange rates, and how they impact the global financial environment.
• Basics of Financial Markets: This module will provide participants with an overview of different financial markets, such as the stock market and bond market.
• Securities and Exchange Board of India (Sebi): This module will discuss the role and responsibilities of the Securities and Exchange Board of India, the regulatory body for the securities market in India.

This Financial Literacy Awareness Program is designed to be comprehensive and informative, while also being engaging and relevant to participants of all levels of financial knowledge. The modules are delivered in a clear and concise manner, and are supported by a variety of real-world examples and exercises.

To ensure that the program is effective, it is important to tailor it to the specific needs of the participants. This can be done by conducting a pre-assessment to identify their existing knowledge and skill gaps. The program should also be delivered in a format that is convenient and accessible to participants.

Overall, this Financial Literacy Awareness Program is a valuable resource for anyone who wants to learn more about money and how to manage their finances effectively.

Financial Lireracy Awareness Program (FLAP)

Introduction 

Financial literacy is the ability to understand and use financial information to make informed decisions about money. It is an essential skill for everyone, regardless of age, income, or education level. 

This Financial Literacy Awareness Program is designed to help you learn the basics of financial literacy, including budgeting, investing, and planning for the future. The program is divided into three modules: Basic, Intermediate, and Advanced. 

Basic Module 

The Basic module will cover the following topics: 

• Introduction to financial literacy 
• Setting financial goals 
• Budgeting - Income vs Expenses
• Budgeting Prioritazation of Needs
• Understanding interesting concepts 
• Basics of investment 
• Banking basics - Part I 
• Reserve Bank of India 

Intermediate Module The Intermediate module will cover the following topics: 

• Introduction to financial literacy 
• Savings and investment products 
• Basic taxation 
• Basic insurance 
• Banking basics - Part II 
• Basics of credit cards and debit cards 
• Loan products from banks 
• Insurance Regulatory and Development Authority (IRDA) 

Advanced Module The Advanced module will cover the following topics: 

• The importance of financial planning 
• Savings vs. investments 
• Basics of equity and mutual funds 
• Risk vs. returns perspective 
• Basics of currency and exchange rates 
• Basics of financial markets 
• Securities and Exchange Board of India (SEBI) 

Why is this program important? 

Financial literacy is important for a number of reasons. It can help you to: 

Make better financial decisions Manage your money more effectively Save for the future Reach your financial goals Avoid debt and bankruptcy Protect yourself from financial scams Who can benefit from this program? 

This program is designed for anyone who wants to learn more about financial literacy. It is especially beneficial for people who are new to managing their finances, as well as people who are looking to improve their financial skills. 

How to participate in the program The Financial Literacy Awareness Program is available online and in person. To participate in the online program, simply visit the website and create an account. To participate in the in-person program, contact your local financial institution or library. Conclusion Financial literacy is an essential skill for everyone. 

The Financial Literacy Awareness Program can help you learn the basics of financial literacy, so that you can make informed decisions about your money and achieve your financial goals.

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.

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. 

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. 

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.

Goals and Priorities

In your daily life, things that are important and require immediate attention take precedence over everything else. Likewise, your financial goals  need to be prioritized. A financial goal can be classified as short, medium, or long term depending on the timeframe in which you need to achieve it. The goals you want to achieve within a year are short-term, those  you want to achieve within five years can be said to be medium or medium-term, and those you want to achieveThis is because you would need this data to calculate the  estimated cost of the goal in the future. Before you begin, make sure the goals are realistic and achievable, otherwise the whole exercise could be pointless and frustrating. For example, a Rolls Royce worth several crore  rupees may be your object of desire, but at a salary of 6 lakh a year this may not be a viable idea. 

PRIORITIZE GOALS 

After you've written down your goals, you need to prioritize them.By nature, we all  have an endless wish list. However, given our limited resources, it is difficult to achieve all of our financial goals equally. Prioritization helps you allocate existing resources and direct future investments toward a more important goal. While good planning can achieve all of your financial goals, prioritization helps you focus on the  financial goals  that matter most. For example, save forRetirement is definitely more important than buying a luxury car or vacationing abroad. Or you would like to buy a house in the next three years, for example. This could mean spending around 10 lakh as  a deposit. Because it's a high-priority goal that's also close by, your investments should ideally be  more geared towards it than, say, retirement. 

THE BASIS OF PRIORITY

But how do you prioritize the goals?This is because your desires collide with your needs at various stages of planning. In situations where your surplus isn't enough, you need to trim discretionary spending — spending that  you can defer, reduce, or eliminate.Therefore, the basis for prioritization mainly depends on the criticality of the target objective and also the proximity of this event. So, for someone with young children, the needs of the children and retirement can be equally important. In such a case, both objectives must be given due consideration. However, for someone with teenage children, parenting or marriage are more important than, say, retirement. In addition, the needs of children of normal age are  largely satisfied andThings like going on holiday abroad or buying a second home could be postponed to a later date. 

CHECK YOUR PROGRESS AND RESET YOUR GOALS 

Goal setting is not a one-time exercise. Your financial realities change over time. For example, you should set your goals again after your marriage, the birth of a child, the marriage of a child or after events such as increased income due to a job change.Therefore, it is important to review your financial goals regularly, preferably annually. The review process  also helps you monitor your progress toward your financial goals. If you find that progress is insufficient, you can change the various elements of your financial plan accordingly. , like your savings, your investments, or your tax expenses. Setting financial goals and working to achieve them are clearly not the theoretical exercises that might seem at first glance.They are based on the reality of your financial income and expenses. Only by tracking your progress at each milestone can you  track the effectiveness of your financial planning process. 

BACKGROUND INFORMATION 

A financial goal can be classified as short, medium or long term. depending on the amount of time  you need to achieve it. Prioritization helps you allocate existing resources and direct future investments toward a more important goal.Understanding the difference between your “needs” and “wants” is crucial to determining which goals are important and which  can wait. The basis for prioritization depends primarily on the criticality of the intended goal and also on the proximity of this event. Review your financial goals regularly, preferably every year or two.

Power of Compounding With mutual funds

Earlier we have been talked about the benefits of investing a fixed amount regularly to benefit from compound interest. But there is one big question that needs to be answered. Where can an investor put their money to take full advantage of compounding? The answer is mutual funds. As an investment vehicle, mutual funds are designed  to amplify the benefits of compounding.This is possible through Systematic Investment Plans (SIP). 

Here's how it works: A Systematic Investment Plan (SIP) allows you to invest a lump sum in mutual funds on a regular basis. This can be monthly, quarterly or semi-annually. You can select the fund of your choice, use a SIP calculator to calculate the return on your investment, and make a SIP payment on the specified date. Regular investment through SIP can increase your returns over time.While you can invest in most  types of funds through an SIP, you should consider investing in stock funds for long-term goals like retirement planning. This is because equity funds have the potential to offer better returns over the long term. The best thing about SIPs is that you can automate your payments by giving your bank a standing instruction. You can transfer money from your registered bank account directly to the mutual fund on the specified date. As a result, you don't need to worryKey Rules to Activate the Power of Compounding Control Your Spending 

The principle of compounding works  the same  whether you are investing Rs 100 or Rs 10,000.However, if you invest a significant amount, the interest you earn can also increase significantly. The best way to harness the power of compound interest is to increase your investments. But if you're on a limited income, you can increase your savings by controlling your spending. .One way to do this is to create a budget and identify areas where you can reduce your costs each month. Spending wisely and intelligently can increase your savings and allow you to invest more.This gives you the opportunity to get better returns. Start Early There is nothing quite like starting investing early. Ideally, you should start investing the moment you start earning. start investing now.Identify a mutual fund that fits your financial goals and start investing. When you start investing early, you can use compounding to lay a solid foundation for future fund growth and expansion. If you don't know how to calculate your return on investment, you can use an online calculator. There are many calculators  that will tell you exactly how much you need to invest today to reach future goals.

Be disciplined Investment discipline is essential to building a healthy body and achieving your financial goals on time. Regular investing early in your investment journey can instill discipline. It is advisable not to skip your SIP payments. Month after month  you not only increase your savings, but also develop investment discipline.This is an important habit if you want to achieve financial success. Learn to be patient. Most investors are looking for quick returns. But in trying to make a quick buck, they can make mistakes that can result in huge losses. As we have seen, the power of compounding increases over time.Therefore, it can be helpful to take a long-term investment approach. One should invest patiently as it could generate healthy returns over time. You don't have to be a financial expert to benefit from the power of compounding. All investors can benefit from this. concept and use it sensibly. So start investing today for a great future.

 

What is the power of compounding?

Mathematically, compounding is defined as "the increase in the value of an investment as a result of interest earned on the principal and interest accrued". Put simply, it's a strategy that makes your money work for you. It could be considered as a powerful tool to increase your wealth. You can use the power of compounding to plan for future goals like retirement.Simple compounding means you earn interest on your capital. But with compound interest, you earn interest on the principal balance plus the  interest accrued over consecutive periods. Over time, this interest adds up to a significant amount. 

Here's a hypothetical example to highlight the power of compounding. Both Vijay and Geeta are each investing Rs 50,000  in an investment opportunity that offers an annual interest rate of 10% for 10 years.While Vijay opts for simple interest, Geeta opts for compound interest (read: reinvest). At the end of 10 years, Vijay would receive a total capital of Rs 1 lakh. On the other hand, Geeta would receive a capital of Rs 30 lakh. .This is because in  the case of Vijay, interest was  only charged on the initial principal amount of Rs 50,000. But in Geeta's case, the interest earned each year was added to the principal to calculate  interest for the following year. your profits big time. 

Benefits of the power of compounding

One of the biggest benefits  investors  appreciate about the power of compound interest is time value. Over time, you can earn returns, and  returns from those returns can lead to even more returns. So it helps to increase your investments quickly. It's a good thing to save money and earn an amount of interest that's compounded every year. But what if you invested a fixed amount every month? This small act could increase your returns over time.Let's find out how this is possible. If you invest regularly  over time, your returns can add up much faster. It's important to start saving and investing from a young age. And if you do this regularly over a long period of time, you have the opportunity to maximize your returns and reap the full power of compounding. Many people mistakenly assume that they can't start investing until they have large sums of money.So they postpone investing until they are in their mid-40s. That's not a good investment strategy. On the other hand, if you start investing early, it doesn't matter how much you can invest. Even if you invest small amounts of money on a regular basis, you can expect to build up a substantial corpus over time.

Balancing your savings between different investments

Some of the ways  an investment can make money is by lending to someone who pays interest; Buy shares and thus become part owner of a company; or buy something like gold or real estate that is expected to increase in value. 

INVESTING IN STOCKS 

When you buy shares in a company, your gains and losses can be large depending on how the company performs. By buying shares, you become a co-owner of a company. Of course, the proportion is too small for you to have a say in  the management of the company, butIf the company pays  part of its profits as a dividend, then you, the co-owner, get your share. As the company becomes more valuable, its share price increases and so does its wealth. Like any business owner, you can choose to sell some or all  of your shares or keep them for future profits. Conversely, you could lose money if the stock's value goes down. If business goes very badly, you could lose a large part of your investment.

INVESTING IN DEBT FUNDS

A very different way of making a profit is to lend someone money. Note that unlike stocks, we didn't say "lend money to a company." not just to a company, but even to a government or  other entity.When we say lending, it includes activities that you may not normally think of as a loan.Lending just means giving someone money and getting interest income in return.For example, when you make a deposit in a bank (it could be a fixed deposit or a savings account), you are lending money to the bank.

However, the scope of gains is sharply limited compared to investing in shares.When you lend, your gains are limited to the interest rate that the business has agreed to pay you.No matter how successful this business may become, you will not get more. Of course, the risks are also limited. With most types of deposits, the risk of not earning your interest is fairly limited. Therefore, the rewards are predictable and so are the risks.With the third type of investment, the risks and rewards are the easiest to understand. You buy something when the price goes up, great, and when it goes down  you lose money. When choosing an investment from the three, the complexity is on a different scale. Variable income is more complex than the others. There are literally hundreds of companies whose shares can be bought on the stock market and making the right decisions is not easy.Fortunately, there are ways to make the right decision with ease.

Inflation and Investments

 Since each year's inflation is in addition to the previous year's inflation, this means that the effect is similar to that of compound interest. Imagine a situation where you invest Rs 1 lakh of your money in a deposit that earns you 8 percent a year. At the same time,  prices usually increase by 8 percent per year. In such a situation, your compound returns will  keep pace with  inflation.The actual amount will increase, but what you can do with it online will not increase. For example, for  ten years your Rs.1 lakh becomes Rs.16 lakh. 

At the same time,  the things you could have bought for Rs on average.1 lakh  also costs Rs.16 lakh. In fact, the purchasing power of your Rs.1 lakh is not what it was ten years ago. Increasing the amount of money you have is just an illusion and is completely denied. for the corresponding price increase.But inflation may not be  kind enough to keep up with the interest you earn. What if there are more? And if it goes on like this for a  long time? twenty years pass? Your investment would grow to Rs.66 lakh but things that used to cost Rs.1 lakh would now cost Rs.72 lakh. Now the purchasing power of his Rs.1 lakh is only Rs.15.000.The common problem is the inability to account for inflation. People think in nominal terms, and the future impact of inflation is awfully hard to fathom. 

The real solution to this is that we should become a low-inflation economy, but since that is clearly not on the agenda, savers should always be mentally prepared for inflation. That's a depressingly large amount, but there it is, there's no getting around the arithmetic. What this is really telling you is that  you need a way to achieve this for a long timeThis capital is risky, they convey it to all investors. However, it only takes  a little thought to realize that inflation is riskier. it increases with inflation anyway. This is not difficult as the value of goods, services and assets in the economy is inherently inflation-linked, i.e. adjusted for inflation.

Why is it better to invest than to save?

How to Meet Your Financial Goals: Whether it's buying a home or car,  paying for your children's education or marriage, or even planning for your retirement, investing can help you  meet your financial goals and  your long-term goals. To beat inflation:Investing your money also helps you  beat inflation. If you choose not to invest and prefer to keep your money in a regular savings account, the purchasing power of your money may decrease over time due to inflation. Therefore, to protect the value of your money, it makes sense to invest in financial products that have the potential to generate returns above inflation. To Generate Significant Returns: Investment opportunities such as stocks or mutual funds have the potential to generate significantly higher returns than a savings account or bank fixed deposits.

If we use our saved money where it will grow, then that is an investment. However, there are a number of choices when we want to invest and it's not possible to make decisions without having a way of classifying things. Classify investments immediately. Before that, we have to classify our investment needs. Investments can be made for a  variety of needs.You could save for emergency medical supplies that are usually needed immediately. Or you're saving for  retirement  decades away, or anything in between. We've created a useful framework for thinking about these investment needs by dividing them into four levels. Each level is more basic than the next. 

You must satisfy the need at each level before moving on to the next.Those with a little knowledge of psychology can see that this system is based on the "hierarchy of needs," a concept proposed by psychologist Abraham Maslow. Maslow's hierarchy dealt with basic human needs such as food, shelter, etc. Beings attend to their higher needs after the simpler ones are satisfied. This is the hierarchy of investment needs: TIER 1 Basic Contingency Funds - This is money  you may need to meet a personal emergency.It must be immediately available, partly as physical cash and partly as funds that can be immediately withdrawn from a bank.

Online banking and ATMs make this relatively easy to organize. TIER 2 Term Insurance – Calculate a realistic amount that would allow your loved ones to fund at least short- and medium-term life goals if you were  struck by a debilitating injury or illness, or even faced an early death. You must have  adequate term life insurance before thinking about savings.Almost everything should be done in minimal-risk ways. TIER 4 Savings for Predictable Long-Term Goals: Same as Tier 3 except  planned spend is more than three to five years away. Money. You could think on many levels beyond that and really, the details count a lot less than the concept. 

Depending on the circumstances, one of the levels may need to be changed.For example, you might have enough income-producing assets that insurance is relatively less important. However, this does not decide how much to invest in each need. You don't have  emergency cash in a savings account, so don't buy term life insurance.

Make you money work for You

The main reason for this is that money does not retain its value. That means what was worth a hundred rupees last year is probably worth ten or twenty rupees more this year. Bit by bit Historically, inflation in India has always been at a much higher level than in the developed world. It has changed a lot over the past thirty years but has seldom fallen below 4% per year consistently.The long-term average over this  period is around 8%. Eight percent doesn't sound so bad. It simply means that something worth Rs.100 becomes Rs.108. However, this is only the annual rate for one year.

Over several years there is a compounding effect, meaning that one year's inflation rate  feeds into  the next year's, and so on. Rs.1 lakh saved in 1982 and  kept as cash in a drawer  all the time then it would be worth less than Rs.9,000 today, about 1/10th of the original value, with an inflation rate of 8%! Therefore, we must not only save, but also invest our savings. Investing means putting our money in a form where it will bring some profit. Typical forms of investment are real estate, gold, bank deposits, postal savings, stocks and mutual funds.Therefore, anything that we can put  money into and let it grow can be called an investment. Of course, adjusting for inflation shouldn't be the goal of a smart investor. If you take the time to learn and apply the basics, you should be able to make more than enough to keep your money worth. Investments can  become a source of income in their own right. If you allow this sum to accumulate instead of using it as income, it can become a significant fortune.

Take the example above. Suppose the same Rs.1 lakh was invested  in the shares of a group of leading companies in 1982 so that their value grew at the same rate as the BSE Sensex. The money would have grown to Rs. 1 crore as of July 31, 2014, a growth rate of 15.26%! That's a lot more than the rate of inflation, which means that that sum of Rs.1 crore can buy you a lot more today than  Rs.1 lakh did in 1982. When you invest for long periods, you don't just saveInflation can also make you rich. But investing can be as risky as it is rewarding. Newcomers who start investing with overly optimistic expectations and a lack of knowledge or caution can get into trouble.

Financial Planning and Goal Setting 2022 - Part 2

Goal Setting Challenges 

It is best to be aware of any  financial challenges ahead so that you can take control of the situation in advance. Generally, a person avoids  structured planning due to a tendency to procrastinate. Some of the most common excuses include: "I don't have time", "It's very difficult", "I'll take care of that later" and "I have other things to do". Another challenge is avoiding the tendency to live above one's means.It is difficult to sacrifice immediate needs for future needs  when done without guidance. But the most important of all challenges is the lack of financial literacy. Most people don't know how to write financial goals and evaluate  available strategies. They make mistakes like delaying the accumulation period, setting unrealistic goals, and looking for quick financial fixes instead of long-term strategies.Often, most of us start expecting unrealistic returns on our investments while ignoring the fundamentals. A large number of people do not give enough importance to insurance, which helps to solve unforeseen events that affect finances. Other challenges might include confusing investing with financial planning, investing only to save on taxes, and not doing regular reviews of your financial situation. If you can overcome them, you can do your own financial planning. The above concerns are notFreedom. 

Basic Knowledge 

Financial planning can be defined as the process of achieving life goals through proper financial management. Identifying and setting  goals is at the beginning of any financial plan. Financial planning helps to see the future clearly.The financial planning process  can help you determine where you are right now, what you may need in the future, and what you need to do to achieve your goals. 

The three biggest setbacks in this process: Procrastination and not doing structured planning; The tendency to live beyond one's means; and lack of financial literacy, setting unrealistic goals, etc.

Financial Planning and Goal Setting 2022 - Part 1

Identifying and setting  goals is the beginning of any financial plan. Goals can be buying a home, saving for children's education, or planning for retirement. Once you have a financial plan, you can make decisions related to your short- and long-term goals. This makes it easier for you to adapt  to changes and makes you feel confident that you are on the right track.

Benefits Of Goal Setting 

Goal setting during the planning process will help you to channel short-term temptations in favor of your more important long-term goals. Financial planning provides discipline, improves your financial decision-making and, over time, helps you develop an asset allocation strategy based on your risk tolerance. Goal setting protects you and your family from financial crises in the event of death or disability when your loved ones need your financial support.for retirement or children's education becomes easier. Most importantly, tracking investments against your goals becomes easy. 

Goal Setting Process 

Financial planners around the world  use a six step process to determine an individual's financial situation. , reviewing the current financial position and developing a strategy or plan to achieve the objectives.

Set Up Time 

Once you have a basic idea of your financial goals, put them down on paper. Classify the goals into short-, medium-, and long-term based on how far away they are (within a year, five years, and more than five years). , respectively). A vacation and the purchase of a home theater may be on the short-term goal list, while  a house and a larger car might be on the medium-term goal list. Children's higher education, support for dependent parents, and retirement may play a rolelongterm goals.

Identifying Goals

This is important, as otherwise, it will be difficult for you to effectively manage your resources.So, chart out your financial roadmap only when you have put your financial milestones in place.Your list of financial goals includes items that are important to you, and if you plan your finances well, you should be able to reach these milestones successfully and on time.Keep your family's goals in mind  as you set your personal financial goals.

Securities and Exchange Board of India (SEBI)

SEBI performs an critical function of regulating all of the gamers operating inside the Indian capital markets. It attempts to protect the interest of buyers and goals at developing the capital markets by way of enforcing numerous guidelines and guidelines.

1. What is SEBI

Securities and Exchange Board of India (SEBI) is a regulatory frame of the Government of India. It controls the securities market. It became hooked up on April 12, 1992 underneath the SEBI Act, 1992. It is centered on the Bandra Kurla Complex in Mumbai, India. It has local places of work in primary cities of India which includes New Delhi, Kolkata, Chennai and Ahmedabad. These cover the North, South, East and West regions of India. Besides, it has a network of neighborhood branch offices in prominent Indian cities.

2. Structure of SEBI

SEBI has a company framework comprising of numerous departments every controlled by means of a department head. Some of the departments are overseas portfolio traders, communications, human assets, collective funding schemes, commodity and derivative market regulation, legal affairs department, and so forth.

3. Functions of SEBI

The Preamble of the Securities and Exchange Board of India describes the simple functions of SEBI is the protection of traders pastimes in securities and to be a platform to sell, expand and alter the securities market in India as well as the bearing on topics which are related with it.

The securities exchange board is allowed to approve rules and legal guidelines pertaining to the inventory exchanges. It additionally implies that SEBI ought to put in force the legal guidelines for stock exchanges to observe. SEBI examines books of bills of monetary mediators and identified stock exchanges. Another position of SEBI is to urge respective corporations to list their shares in stock exchanges and control the registration of distributors/brokers.

4. Authority and Power of SEBI

The SEBI board has three main powers:

Quasi-judicial- In this, SEBI can deliver judgments related to the securities marketplace pertaining to fraud and other unethical practices. This helps to ensure equity, transparency, and accountability in the securities marketplace.

Quasi-legislative- These powers allow SEBI to frame regulations and regulations to shield pursuits if the buyers. Some of its policies consists of Insider Trading Regulations, Listing Obligation, and Disclosure Requirements and so on. These had been formulated to preserve malpractices at bay.

Quasi-government- SEBI is empowered to put in force its rules and to place up a case against violators. It is also authorized to look at books of accounts and different documents if it comes throughout any violation of the policies.

5. Mutual Fund Regulations by using SEBI

Some of the policies for mutual budget laid down by SEBI are:

(1) A sponsor of a mutual fund, an partner or a group employer which incorporates the asset control organisation of a fund, via the schemes of the mutual fund in any shape cannot preserve:

(a) 10% or more of the shareholding and balloting rights within the asset management employer or some other mutual fund

(b) An asset management business enterprise can't have a illustration on a board of another mutual fund

(2) A shareholder can't hold 10% or greater of the shareholding immediately or not directly inside the asset management business enterprise of a mutual fund

6. Mutual Funds and SEBI

According to SEBI suggestions, mutual finances must sign up as trusts below the Trusts Act, 1882. Then a company ought to be installation as a separate asset control enterprise (AMC) to run a mutual fund. The internet worth of the determine firm or AMC have to be Rs. 50,000,000. Mutual budget need to also sign up with the SEBI. There also exists a self-law company for mutual price range, Association of Mutual Funds of India (AMFI).  

The Association of Mutual Funds in India (AMFI) is centered on growing the Indian Mutual Fund Industry with professional and moral traits. AMFI  aims to decorate the standards in all areas for you to protect and sell mutual funds and the stakeholders.