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August 2021

Finance

SIP Calculator – Analyse financial goals & calculate return on SIP

on by Hazel Calvin

To invest in mutual funds, one can either go with the lumpsum investment option or they can opt for a Systematic Investment Plan (SIP). A lumpsum investment is usually made by the investor at the beginning of the investment cycle and they can buy units in large quantities at the scheme’s current NAV (Net Asset Value). On the other hand, a Systematic Investment Plan doesn’t require investors to receive large investment sums. They can invest small fixed sums at periodic intervals and create wealth over the long term.

If you are planning on investing in mutual funds via SIP, you can now draw and estimate your overall returns using the SIP calculator, a simple and easy-to-use online tool. A SIP calculator is designed in such a way that any layman can use it to their advantage.

What is a SIP Calculator?

A SIP calculator is a free online calculator which can tell investors the maturity amount that they will receive through their SIP investments made in mutual funds. A SIP calculator is popular among mutual fund investors who are investing by making regular and systematic SIP investments. This calculator allows an individual to draw an estimate on the returns which he or she will be earning at the end of their SIP investing journey.

Since this calculator can only draw estimated returns, the actual returns may vary depending on the expense ratio of the schemes in which you invest. The SIP calculator doesn’t take into consideration the expense ratio or exit load (if applicable) while estimating returns.

How does a SIP Calculator work?

A SIP calculator normally works on the following formula –

M = P × ({[1 + i]n – 1} / i) × (1 + i)

Where –

M represents the amount you receive upon maturity

P represents the amount you invest at regular intervals

n represents the number of payments you have made

i represents the periodic rate of interest

How to use the SIP Calculator?

There are a few basic details which investors need to enter for the SIP calculator to come out with results. They need to –

  • Enter the SIP sum which they will be investing or are currently investing every month
  • They need to enter the number of months / years in which they will be investing this sum (for example, 60 months or 5 years)
  • Finally, they need to enter the expected rate of return in percentage which the mutual fund scheme
  • might deliver during their investment tenure (for example 8%, 12%)

There are some online SIP calculators which may ask investors to enter the total sum which they want to collect over a specific investment horizon and then suggest the SIP sum which they need to invest regularly to achieve that goal.

Analyze goals before using SIP calculator or starting SIP in mutual funds

A lot of first time mutual fund investors who are excited to begin their investment journey often make a rookie mistake that can be avoided, investing without any specific goal. Having a clear perspective on why you are investing a particular amount will only allow investors to ensure that they are committed to their SIP investments till their investment objective is accomplished.

Investors who know which financial goal they want to achieve with SIP in mutual funds may also be able to use the SIP calculator more productively than others. You don’t want to start a SIP that will only take you halfway towards your financial goal and for this, it is better to have a realistic goal that can be achieved through systematic investing.

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FinanceLoan

How ‘buy now pay later’ differs from personal loan?

on by Hazel Calvin

Ecommerce websites are finding newer avenues to lure customers into buying stuff. While discounts, deals, and cashback have become more important than ever, ‘Buy Now Pay Later’ has been introduced by several online sellers to make life easier for buyers. With BNPL, you can purchase the product of choice even if you are short on funds and pay the entire sum at a later point in time.

Although this sounds like an exciting proposition on the part of the online sellers, the concept here resembles a credit card more, instead of a personal loan. BNPL, without a doubt, is slowly emerging as one of the most sought-after online payment schemes and it might not be surprising to see it capture 9 percent of the payment-specific market scheme by the end of 2024.

However, you can even get a personal loan to buy a product of choice, which is an entirely different approach as compared to the BNPL.

How do Personal Loan and BNPL differ?

  • Loan Value

As mentioned, BNPL doesn’t offer cash in hand and is only meant to ease your eCommerce purchase. Therefore, if you want products valued at less than Rs . 1 lakhs, BNPL can be a reliable option to consider. However, a personal loan puts cash in your hands and is the best way forward if you need a bigger sum to manage concurrent expenses.

  • Repayment

Here comes the tricky part that drastically separates these two credit availing schemes. BNPL requires the borrower to pay out the sum within 15 to 30 days, in full. However, if the amount is a sizable one, you can even opt for a 3-month EMI scheme. Personal loans are way more flexible in this regard as you can borrow the sum and select the repayment tenure at 12 to even 84 months, depending on the EMI value you wish to pay.

  • Interest Rates

Personal rate interest rates are fixed. This means, your EMIs will be calculated as per the interest rate agreed upon with the lender in the first place. However, interest calculation can be a tad complex when BNPL payments are concerned. If you plan on paying the sum within the stipulated time frame, the lender doesn’t charge any interest.

However, for delayed payments, the interest rates are more like the revolving credit card liabilities.

  • Goals

As far as the requirements are concerned, BNPL is mainly used to purchase premium goods by paying nothing upfront. Personal loans, however, are more conducive to handling emergencies like house renovation, marriage, higher education, and more.

In addition to these differences, procuring a personal loan and a BNPL facility are also dissimilar when it comes to documentation. Unlike a personal loan that requires several authenticating documents, BNPL depends on your eligibility, eKYC, and credit score.

Bottom-Line

While a BNPL is quite effective and rewarding, it is advisable to get a personal loan for managing scenarios more complex than shopping online. However, if you are confused regarding lenders, pick one at the Finserv MARKETS and get the best deals on any lending scheme.

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Investment

Stock market terms for novice investors

on by Hazel Calvin

A stock market is a regulated place where investors can buy and sell shares or stocks, where demand and supply forces dictate their prices. The shares traded are from public companies. By purchasing shares of such publicly traded companies, an investor receives a percentage interest in those companies.

If a June 2021 report by Livemint, a financial daily, is any indication, investing in stock market has become a popular option among many individual investors. If you are looking to start investing in the stock market today, here are some common stock market jargon –

  • Bull market

The bull market signifies a period of sustained increases or the expectation of continuous increases over an extended period. Essentially, it indicates a good or strong economy.

  • Bear market

It is the opposite of a bull market. This market sees the prices of stocks constantly fall or expected to continue falling over longer periods. Conversely, investors tend to sell their shares as they expect the price to fall.

  • Initial Public Offering (IPO)

When any private corporation first offers its shares for sale on a stock exchange, it is referred to as an IPO. The purpose is usually to raise money from the public.

  • Order

An order enables buyers and sellers to trade stocks at a price they want – be it a market order, which is traded immediately at the current market price, or a limit order, which is done to trade at a specific price.

  • Ask price

It is the minimum price an investor will sell the share for.

  • Bid price

This is the maximum price a buyer will pay for a share.

  • Bid ask spread

A spread is the difference between the buy and sell prices. The lower the spread, the better the share’s liquidity.

  • Dividends

This is a portion of profits paid by a company to its investors. Any amount not distributed is re-invested in the business.

  • Trading volume

Trading volume means the number of shares that are traded on a stock exchange on a particular day.

  • Broker/Agent

An agent/broker is a person who, in exchange for a fee, buys and sells stocks on behalf of investors.

  • Intraday trading

Intraday trading entails the purchase and sale of stocks within a single trading day.

Getting started on your investment journey

Now that you understand the basic stock market terms, you can begin investing in the stock market. However, you need to have a demat account to deal in shares and a sound investment strategy to take advantage of prevailing market conditions. While you are it, it is also prudent to explore your stock market investment options with the help of a financial advisor. This will help you grow your wealth based on your appetite for risk.

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Finance

Best Online Trading Platform for Beginners 

on by Hazel Calvin

Getting started for new investors can be quite overwhelming. There are so many risks involved plus the unfamiliar market jargon and multiple options of brokers to choose from. As a new investor, the best online trading platform is however the one that offers the following benefits.

Easy Customisation

Most of the trading platforms have their app. Trading is more convenient on the app. Your app should ideally have an easy customisation option. Such as, in Jiffy, you can change the “Theme” from Light to Dark, change the “Order Notification” sound, and “Enable Fingerprint” option to access your app easily.

Easy Funds Check

Easy access to funds in your trading platform helps to add funds or check the margin available for trading. In Jiffy trading app, you can go to your profile and check all the details of your “Pay-In”, “Pay-Out”, “Collateral Option” and “Account Balance” in the Funds section. Also, you can check the “Transaction History” for your trading by customizing the type of Order and Date.

Easy Order Page

The Order page gives a clear idea to traders about daily trading. In Jiffy, there is a clear and classified Order column for keeping account of the everyday trade. There are four sections in the Jiffy Orders section – “Pending” (orders waiting for execution), “Executed” (successful orders), “Trades” (overall orders in a day) and “Others” (orders that are rejected).

Scrip Info & News Corner

Before trading, it is always essential to check the basic information about the Scrip. In Jiffy, you get the following information about a scrip :

  • Volume
  • 52 Week H/L (Highs/Lows)
  • Average Traded Price
  • Delivery %
  • Circuit Range
  • Market Capitalization
  • Face Value

Also, there is a News Corner below the Scrip, so that you can stay updated with the latest news before deciding to buy/sell the Scrip.

Home page – Index Option

For regular day and intraday trading, having an Index Option on the home page helps in trading. In Jiffy, you can select “Nifty”, “Sensex”, “Bank Nifty”, “Gold”, “Currency” and “Volatility Index” for easy trading.

Multiple Watchlist

If you have multiple Watchlists, you can define your investment or trading ideas along with actively keeping watch on the Scrips in your app. You can add Scrips from the Top Gainers and Top Losers in your Watchlist and closely monitor them for trading potential.

Advanced Technical Charts

Technical charts with advanced tools and features help in the proper analysis of a scrip. In Jiffy, you get upgraded charts with colour options, chart studies and drawing tools to analyse the scrip. Also, it comes with a Buy and Sell option for quick trading based on Chart Analysis.

IPO Alerts

It is not easy for an investor to track every IPOs getting launched in the market. Jiffy sends notifications on the app to its customers so that they can check the details of an IPO and apply for it. Also, you can check the upcoming IPOs in the Jiffy app.

Research Calls and Reports

For investors, market knowledge is of utmost importance for regular trading. Jiffy provides research-related calls and reports provided by the Choice Research Team for making you an informed trader.

Dedicated Customer Support

Most traders stop using their accounts because they lack guidance and help. When you open an online Demat and trading account with Choice, you get calls from a dedicated Relationship Manager. Also, you have Jiffy Support, which helps with quick resolution to your trading queries and problems.

Conclusion

To conclude, if you want to be successful in the stock market, you have to consider the platform that you choose for trading. The Jiffy web and app is designed for users in such a way to give users an easy and fast trading experience along with the knowledge required for successful trading. Download the Jiffy app now.

Brief by Milind – Write about Jiffy App and Web.

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Investment

What You Need To Know Before You Sell Your Diamond

on by Hazel Calvin

Perhaps you are having some old family jewelry that you don’t know what to do with, or they are gifts from your ex-partners, and you don’t want them anymore. The best thing would be to sell them to a reputable vendor. You can get a significant amount of money that you can use for something important.

However, selling diamonds can be quite an overwhelming task, especially if you have never done it before. You might end up getting scammed or get a lesser amount of money. So to make the task of selling your diamonds pretty simple and straightforward, we give you some of the essential things you need to know before selling your diamonds. Let’s get started!

  1. Know the value of what you got

First things first- before you look for a seller for your diamonds, you need to determine their worth. Diamond’s value is determined by 4Cs: cut, color, carat, and clarity.

  • Cut

The cut of the diamond is the first thing that a jewelry buyer will look at when determining its value. The cut of the diamond determines the shape and size of the diamond. The more unique and complicated a diamond’s cut is, the more expensive it will be.

  • Clarity

It refers to a diamond with no flaws. A diamond with few flaws has a higher value because it still has its natural characteristics intact. So if your diamond has no or few flaws, you are more likely to sell it at a higher price.

  • Color

Diamonds come in different colors, including white, yellow, pink, blue, and red. You need to know which colors are most valuable and ones that are less valuable. White diamonds are usually more valuable compared to diamonds tinted with other shades.

  • Carat

Carat basically indicates the size of the diamond. Many people think that the larger the diamond, the more valuable it is. However, this may not be true. Depending on the factors mentioned above, a smaller diamond can be more valuable than a larger diamond if it has better cut, clarity, and color.

  1. Figure out your selling options

When you want to sell diamonds, you have two options: sell it to the public or to a jewelry shop. Choosing a buyer doesn’t necessarily mean getting the best price; it depends on how quickly you want to settle the deal, how much you trust the buyer, and your negotiation and marketing skills. If you want to sell safely and quickly, you should opt for a jeweler, pawnbroker, or diamond dealer. You can also opt to give your diamond to a consignment shop or dealer to sell for you.

  1. Set a realistic price

If you want to sell your diamond as soon as you can, you need to set a realistic price. This can also help avoid any disappointment with the sale. The best way to determine price is by first asking how much the stone could be worth in a specific market and circumstances. You can also research yourself on sites that sell diamond and look for the prices of diamonds with similar characteristics as yours.

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Saving

3 Stages in Your Life When a Guaranteed Savings Plan Can Be Beneficial

on by Hazel Calvin

Financial goals in life keep changing at different stages in life. It depends on the life stage of the family and the extent of family commitments. If you are the only breadwinner in the family, you have to properly estimate your needs for making an effective financial plan. A guaranteed return insurance plan helps you to have a savings plan for the requirements at different stages in your life. This can reduce the financial burden considerably.

What is a Guaranteed Return Plan?

A guaranteed return insurance plan is a savings insurance plan that will serve dual purposes. First, it will provide the death benefit to your nominee if you meet with an unexpected demise during the policy term. Second, it provides guaranteed returns. As the returns are guaranteed during policy inception, you can plan for a financial commitment close to accuracy.

The guaranteed returns can be available as a lump sum amount or as regular income monthly or annually. The guaranteed income benefit will be a discounted value of all the guaranteed annual income payable on maturity. The guaranteed annual income will be a certain percentage of the sum assured, and it is fixed. The percentage calculation varies between different insurers.

Here are three stages in life when a savings insurance plan can be beneficial.

  • For your child’s higher education: Your child’s higher education is an important financial commitment. It is your responsibility to provide the right and best standards in education at different stages in your child’s life. You can decide on the amount required based on the type of education you are planning for your child. It will be based on the time horizon as well.

For example, if you want to send your child for higher education abroad in a reputed foreign university after ten years, you can invest in a savings insurance plan now. On maturity of the plan, you will receive a guaranteed return.

  • For your retirement: Retirement planning is one of the most important priorities in your life. As the returns are guaranteed, you can decide on the amount required and fix the tenure and premium accordingly. As the savings insurance plan offers different payout options, you can use the guaranteed annual income or the regular income plan.

You can calculate the amount you require on maturity based on your living expenses and other financial goals after considering the inflation rate. With TATA AIA, purchasing a guaranteed savings plan is possible at the click of a mouse.

  • Financial assistance to your dependents in your absence: Providing the necessary financial assistance to your dependents, spouse and parents is your primary responsibility. You have to ensure their financial security after your retirement and in your absence or a bad medical condition. With the insurance component in the guaranteed savings plan, you can avail of the rider options to extend the benefits.

For example, the critical illness rider benefit will ensure a portion of the sum assured payable for your medical expenses. It will reduce the burden on your dependents. In case of your sudden demise, your dependents can use the lump sum to pay off your debts and the guaranteed income as a regular monthly income for their routine requirements.

Conclusion

A guaranteed savings plan is one of the best investments for different stages in your life. You can use it for your child’s education at your middle age, your retirement expenses at your old age and your dependents’ financial security throughout your life or in your absence. So stay invested and live without financial worries

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