Hazel Calvin


Things You Need To Know About ELSS

It’s tax season and you have seen billboards or posters on bus stops about ELSS funds and tax benefits. Not if you are not aware of what it is let us enlighten you with the same. ELSS or Equity Linked Savings Scheme is a one-of-a-kind equity mutual fund scheme that also comes with a tax benefit. Investors get exposure to the investment opportunities in stock markets as well tax exemption over a certain invested amount. As more and more people are becoming aware of its benefits, ELSS is gradually becoming a more favored tax saving tool for Indian taxpayers.

Here are a few important things that one should know about ELSS mutual funds –

Asset Allocation of ELSS funds

Unlike conservative tax-saving instruments that invest the majority of your investible corpus in debt and related money market instruments, ELSS is a pure equity mutual fund. When we say pure equity mutual fund, what we mean is that ELSS invests a minimum of 80% of its investible corpus in equity and equity-related instruments of publicly listed companies. This is as per the guidelines set forth by the stock Indian market and securities regulator SEBI. While the majority of the portfolio has exposure to stocks, the fund manager may invest the remaining of the portfolio in fixed income securities.

A Short Lock-in Period

If you take a look at all the other tax saving instruments under Section 80C of the Indian Income Tax Act 1961, ELSS has the shortest lock-in among all. While the lock-in duration of other tax-saving instruments like PPF, bank FDs, NPS, etc. may last anywhere between 5 years to 15 years, ELSS has a short lock-in of only 3 years. Investors can redeem their investments after the 3 year lock-in period. However, if you really want to build a commendable corpus, you may choose to remain invested for a longer duration.

Invest via Systematic Investment Plan

One of the easiest ways to create long term wealth with ELSS is by starting a monthly SIP. Also referred to as Systematic Investment Plan, SIP allows investors to benefit from the power of compounding and rupee cost averaging. Investing in ELSS funds via SIP is much better than investing through lump-sum. Since the Net Asset Value (NAV) of the ELSS scheme tends to fluctuate from time to time, investors may be able to buy more units in a longer duration through SIP than they will if they make a lump-sum investment and purchase units using their entire investment sum all at once. The best part about SIP is that you can start investing with an amount as low as Rs 500 per month.

Understand the risks associated with ELSS funds

Yes, it is true that ELSS comes with a tax benefit. Yes, it is also true that ELSS may offer decent risk adjusted returns in the long run. However, that does not mean that you will get guaranteed returns on your investments. ELSS is a market-linked scheme that is constantly exposed to market vagaries. Although it has the potential to generate yields in the long run, it can be extremely volatile in the short run. Hence, as investors, it is essential for individuals to remain patient with their investments and do not take emotionally driven decisions. Withdrawing your investments when the markets are low is not a good idea as it will only lead to losses. Instead, investors must look at the bigger picture and understand that they have a chance at long-term capital appreciation. Also, one should determine their risk appetite and only invest if they are willing to take higher risks with their hard-earned money.

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Starting Tips For Building Wealth

Is increasing your wealth one of your objectives? Do you want to be debt-free and worry-free in your financial life? Would you like to know that you are not only comfortable today, but that you are also accumulating wealth that will enable you and your family to live and thrive in the future?

You can attain all of these objectives by acquiring cash. While it may appear that you must inherit money or have a high-paying profession to become wealthy, the truth is that wealth is more closely linked to one’s behavior than to the quantity of money they earn or inherit.

The first step in changing your behavior should be a mindset adjustment. You must believe in your ability to accumulate riches and be prepared to put up the necessary effort to make it a reality. One of the most crucial things you can do while trying to develop wealth is to be cash-flow positive, or bringing in more money than you spend.

Many people are oblivious to how much money they waste on non-essential purchases. Keeping track of your wages is straightforward – for many people, this simply means keeping track of their paychecks. You are, however, probably unaware of how much money you spend on a daily basis. Keeping track of all of your expenses, whether by writing them down or utilizing an app, can be beneficial. You’re in a cash-flow negative situation if you spend more than you earn and should cut back on your expenditures to expand your capital.

Your debt-to-income ratio, or how much debt you have, is another factor to consider. The more debt you have, the harder it is to pay it off. Saving money may be impossible in some instances. Not all debt, though, is bad. For instance, investing in a college education that will prepare you for a satisfying career while also allowing you to earn more money may be reasonable. Getting a mortgage to assist you and your family create equity in a home could also be advantageous.

The idea is to think about debt in depth and find ways to avoid or reduce it. So, if you want to go on vacation, saving for months and planning ahead is preferable to placing the trip on your credit card and paying for it afterwards.

Another part of accumulating wealth is putting money aside on a regular basis. Starting an emergency fund that you can use now and in the future is a good idea. You should also start saving as soon as possible for your retirement. Saving becomes automated and uncomplicated when an amount is debited from your bank account on a regular basis.

The resource below has more wealth-building advice.

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ESG Investing — What it means and why it matters.

One of the most hotly debated topics in boardrooms and among investors is ESG investing, or investing in companies with strong environmental, social, and governance profiles.

What Is ESG and What Does It Mean?

Many investors consider a company’s ethics and environmental impact before investing. When looking into a company’s culture and overall goals, social and governance considerations are more important to these investors. When determining whether or not to invest their hard-earned money in a firm, these factors are just as significant to some investors as financial factors. ESG investment entails taking into account a company’s strategies and achievements in the following areas:

  • Environmental: Future investors want to know what actions corporations are taking to protect the Earth’s resources while still operating in a profitable manner. What is the environmental policy of the company?
  • Social: Some investors believe that understanding a company’s connections with its employees and vendors is just as important as knowing its financials. Do they provide equal opportunities to everyone? Are they nice and approachable to other businesses, consumers, and the community in which they work? What role does the company play in the community’s growth and prosperity?
  • Governance: ESG investors are also interested in how a company’s board of directors and management team are monitored. What policies and procedures are in place to ensure that the business is operated properly and fairly, and that all employees, regardless of their demographics, have an equal opportunity?

In this case, the infographic comes in handy. Companies with high ESG scores are less likely to face regulatory fines, disgruntled shareholders, public humiliation, and other potentially negative, value-destroying occurrences. Additionally, companies that are socially responsible have reduced employee turnover and a more engaged and productive workforce. Because of these and other characteristics, high-scoring ESG companies are strong long-term investment options. Continue reading to find out more.

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5 Tips for Finding the Best Mortgage Lenders for First-Time Buyers

First-time homebuyers often have quite a few questions about what to expect throughout the process of purchasing their first house. One of the most important factors when buying your first home is finding the right mortgage lender who can help you get approved and find the best loan that suits your needs and financial goals. To make it easier, we have put together some tips on how to find the best mortgage lenders to work with you as a first-time buyer.

1) Know your credit score

The strength of your credit score is a big factor in getting approved for a mortgage. A mortgage lender will want to see evidence that you’ve managed credit responsibly to make sure that you can afford a home loan. If you have an imperfect credit history or have never used credit, then ask a family member or friend with good credit to co-sign on your loan application.

2) Find a mortgage lender you can trust

As a first-time homebuyer, you’re probably looking forward to that moment when you can sign on that dotted line and start calling yourself a homeowner. And while it’s exciting, you shouldn’t let your eagerness cloud your judgment when it comes to finding a mortgage lender. The last thing you want is to secure financing from someone who doesn’t take your best interests into account or is merely out for themselves instead of looking out for yours.

3) Understand how down payment works

If you’re a first-time homebuyer and don’t have a 20% down payment saved up, you can still get a mortgage—you just have to bring more cash to closing. A typical lender will require that you pay at least three percent of your home price in cash at closing as an alternative to paying 20% upfront.

4) Talk to other borrowers

One of the best ways to find a good lender is to talk to people who have already purchased homes. If you know someone who’s been through it, use that knowledge to help you narrow down your options. Chances are good that their lender was knowledgeable and well organized—these traits are what you should be looking for in your own lender.

5) Consider what type of loan is best

Choosing between a fixed or adjustable-rate loan requires you to take a look at your financial situation and long-term goals. There’s no wrong answer, but knowing what each option has to offer can help you make an informed decision. If you’re on a tight budget, an adjustable-rate loan could help you get in a home more quickly; if interest rates are expected to rise over time, it may be better to choose a fixed-rate loan.

When it comes to buying a home, there are many factors that need to be considered. Purchasing a home is one of life’s biggest financial decisions and finding a mortgage lender who you can trust is crucial. Whether you’re looking for an experienced mortgage professional with years of experience or someone who takes pride in providing excellent customer service, there are plenty of companies to choose from. These five tips will help first-time buyers find their ideal lender. Start your search today!

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5 Advantages of Hiring A Finance Broker When Seeking Business Financing Options

When you hit the road to looking for the best financial option for your business, the experience can be overwhelming. There are many financiers, each operating a different model. It’s, therefore, crucial to hire a reputable finance broker to help you narrow down your options to your best fit. Contacting a finance broker has various advantages.

Who Is A Finance Broker?

If you are interested in financing your business but are not sure how to go about it, one option you may want to consider is hiring a finance broker. They can help walk you through your options to understand what you need to fund your new business venture. They do more than connect businesses with potential funding sources; they also offer guidance and ensure that all parties involved fully understand the terms and conditions surrounding each type of agreement.

Here is an in-depth look at the benefits of hiring a finance broker when seeking business financing options – and how it could help you get the funding you need for your business project!

1.   They Know Where to Get Money From

One advantage of having a finance broker is that they already have relationships with lending institutions. If you hire a finance broker to help secure financing for your business, they can get you in front of lenders who will potentially fund your business. Consequently,  you will spend less time figuring out which lender to approach and more time focusing on other aspects of running your business.

By simply presenting a professional finance broker with your business plan, they could facilitate introductions and provide a solution to your business finance. They could connect you with potential clients using their network of contacts before you even walk through their doors.

2.   You Save Time by Not Having to Search for Loans and Leads Yourself

Business owners may find it overwhelming and even confusing to find the best financing options for their business. It may not be easy to track down and call leads for financing. They need to run their business. If you are looking for business financing, consider hiring a finance broker who can handle all that work for you. You don’t have to wait weeks or months when you bring on a professional finance broker who understands your business and what it needs to grow, prosper, and succeed.

3.   When You Involve Finance Brokers, The Process Works Quickly and Smoothly

If you are looking for a business loan, one of your goals should be to get approved as quickly as possible. The process works smoothly and rapidly when you work with a finance broker who knows how to customize your loan request to get it approved within just a few days. Suppose your company can secure funding without delay. In that case, you will be able to jump right into executing all the exciting plans in your business plan.

4.   Gives You Access to All Available Financing Sources

When you try to raise money from banks and other traditional sources, they usually have limitations on where they can lend funds. However, with a finance broker, your options are virtually limitless. No matter what type of financing source you seek—including loans from private lenders—they can help match you up with several different possibilities, so long as it fits their criteria.

5.   A Finance Broker May Help you To Avoid Predatory Lenders

Hiring a professional finance broker is the best option to avoid predatory lenders that target small businesses. The finance broker professionals will help business people connect with lending options that benefit them. They will also be able to steer you clear of certain types of lenders, like payday loan companies. These companies use deceptive advertising and unethical practices to lure customers into debt traps from which they can’t escape.


Hiring a finance broker is almost always a good idea if you are looking for financing options. While many banks and other private investors offer loan assistance to small businesses, sometimes it can be hard to secure financing when you don’t have perfect credit or any collateral. However, if you hire a finance broker, they can help find several potential lenders who could provide loans based on your unique business needs and situation. You can contact CreditOne Smarter Finance for the convenience of finding your best business financing options.

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Investors new to the investing world have plethora of questions related to investing. What is the best way to invest in mutual funds? What is SIP? What is lumpsum mode of investment? What are the benefits of investing through SIP mode of investment? Often new investors confuse SIP with mutual funds, assuming that these investment products are interchangeable. However, they cannot be more wrong. SIP or systematic investment plan isn’t any investment product. Rather, an investment tool that allows investors to invest in mutual funds. Hence, one does not invest in SIP, rather invest in mutual funds through SIP. Now, that we have cleared the most common yet most widely misconstrued concept about SIP investment, let’s understand if you should go forward with SIP route of investment.

What is SIP?

SIP allows individuals to allot a predetermined sum of money at regular intervals in their desired mutual fund schemes. The predetermined amount of money gets debited from the bank account of the investor on the specified date and is used to purchase mutual fund units at the prevailing NAV of mutual fund or net asset value of the fund. Let’s understand the working of SIP with the help of an example. Maria wishes to buy a new phone which is estimated to cost Rs 60,000. However, she does not have the entire amount handy with her currently and decides to invest in mutual funds through SIP mode of investment. She invests Rs 5,000 per month in her desired mutual fund scheme for a year. By the end of the year, she would not have only invested the entire amount of Rs 60,000 but also earned potential yields on the schemes she buys each month.

What are the benefits of SIP?

There are several benefits of SIP mode of investment. Here are a few benefits of SIP mutual fund:

  1. SIP mode of investment has a very low minimum investment amount of just Rs 100 per month. This makes them quite affordable for individuals belonging to different economic backgrounds.
  2. SIP investments are quite flexible in nature. An investor has the liberty to change the frequency of their investments, the SIP investment amount, tenure of the investment, the mutual fund scheme they wish to invest in, etc. before and even during an investor’s SIP investment journey.
  3. SIP investments are automated in nature. What this means is that a specified amount would automatically get deducted from an investor’s bank account at specified intervals for a given period. This helps to instill financial discipline among investors which is required when investing in the markets.
  4. SIP investments also allow investors to enjoy the benefits of the power of compounding. Compounding allows investors to earn substantial yields on their investments.
  5. SIP investments also benefit investors through a concept known as rupee cost averaging that averages out the cost of mutual fund units purchased over a period.
  6. SIP also eliminates the need to time the markets. Rather, an investor must focus on time in the market.

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A Beginners Guide to Algorithmic Trading Options

What are algorithmic trading options?

Algorithmic trading is a process of using computer algorithms to place orders and trade securities. There are various algorithmic trading strategies, but they all use computers to decide when and how to trade.

One type of algorithmic trading is options trading. Algorithmic traders use options to profit from changes in the cost of the underlying asset. The buyer of a put option is betting that the price of an underlying asset will go down before the contract’s expiration date.

Two option types

The two types of options are calls and puts. On or before the option’s expiration date, a buyer may buy an underlying asset at a set price by purchasing call options. A put option gives the buyer the right to sell an underlying asset at a specific price on or before the option’s expiration date.

So, what does this mean? Let’s look at an example: say that algorithmic traders believe stock XYZ will rise in price. They can buy call options as a way to profit from this movement. If you buy one call option contract, it gives you the right to purchase 100 shares of XYZ stock for $50 per share until your selected expiration date, which could be several weeks away. That means if XYZ increases and is trading at $60 per share when your options expire, you can use your choice and buy the stock at $50 per share, then sell it at the current market price of $60 for a $10 profit per share.

On the other hand, if XYZ falls in price and is trading at $40 per share when your options expire, you can still exercise your option and purchase the stock at $50 per share. However, you would then be selling it at a loss of $10 per share. In this way, options allow traders to profit from the underlying asset’s rising and falling prices.

How do I trade options?

To trade options, you first need to open an account with a brokerage firm that offers options trading. It would help if you then choose an options broker, the firm that will execute your options trades.

Brokerages typically charge a commission for each options trade you make. You also need to be aware of the bid-ask spread when trading options. It’s the difference between the selling price and the buying price. The wider the bid-ask spread, the more expensive trade options are.

Ready to start trading?

You will first need to choose an underlying asset. It could be a stock, ETF, index, or commodity. It would help decide whether you want to buy or sell calls or puts and select an expiration date. Finally, you place your trade.

How do I choose the best options broker?

Before choosing an options broker, it’s essential to determine your type of trader and then find a brokerage firm that offers products and services tailored to your needs. It means finding a firm that provides primary and complex strategies like algorithmic trading, including the option types you plan to use. You also need to consider commissions, fees, customer service availability, educational resources, and more when selecting an options broker.

Are there any risks associated with trading options?

The most significant risk in using algorithmic trading options is liquidity risk. If you cannot buy or sell your options quickly because there aren’t enough other traders in the market, you could end up losing money. You should also be aware of the risks associated with the underlying asset you choose to trade. For example, if you trade oil futures options and the oil price falls sharply, you could lose a lot of money.

Follow this address to start algorithmic trading options today!

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Wondering What Affects Your Home Loan Affordability? Read Here Now!

Buying houses without requiring any financial support is something that very few manage to pull off.  What most people do is apply for home loans that provide the required finances for them to complete their property purchases. Now, many people are of the thought that the only expense of taking the loan is to pay off its monthly instalments. It is very important to understand whether the loan amount that is being borrowed can be afforded, and this is much more than just clearing EMIs.

Having a good financial plan in place before applying for the loan can help in getting the best deal possible. So, go through the following factors that will help in understanding what affects your home loan affordability:

  • Lender’s down payment requirement

As per RBI guidelines, banks are only allowed to fund a certain cost of the property purchase. This means that your lender cannot offer 100% financing for the house. Usually, lenders cover 80% of the cost of the property if the loan amount is in the range of Rs 20-75 lakh and 75%, if the loan amount crosses Rs 75 lakh. Now, it is important to be aware of the exact down payment amount you are required to pay, as this will affect your budget for the home loan.

  • Your debt-to-income ratio

You might be earning a very high monthly income, but this does not necessarily mean that it guarantees you a high home loan amount. An important factor determining your loan affordability is the debt-to-income ratio. If you already have multiple loans to repay, the existing debt will already eat into your budget. This leaves you with a lesser amount for the home loan and could be a problem. This is the reason why it is best to not have any existing debt while applying for a home loan to improve your loan affordability.

  • Type of property being purchased

If you are buying a property that has completed construction, you can live in it while paying off the home loan. However, if you have chosen to buy a property that is still under construction, this could lower your home loan affordability. The reason for this is that in this case, you might also have to pay for rent while the new house is being constructed. This reduces your income and can affect your ability to borrow a higher loan amount. Therefore, this becomes an important point to think about before you apply for home loan.

So, these are the factors that a borrower needs to keep in mind to understand their home loan affordability. A simple way to understand this is to make use of a home loan affordability calculator. All that this calculator requires is details regarding the home loan’s interest rate, repayment tenure, your monthly income, down payment, and existing debt obligations. The calculator will then show the loan amount that can be afforded based on these details.

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All That You Need To Learn About DST

In investment, DST revolves around a particular type of investment that is in a position to increase your capital for you without requiring much effort on your part. It means that DST investors tend to have an easier time investing the money they have because all the stress and hassles involved when working with other forms of investments are entirely out of their way.

What is a DST?

To put things as simple as they could be, DST is a business that offers financial services to its clients with the help of networks. One of their most popular products is bonds and fixed-rate notes, which large companies use for financing their projects.

However, before you decide to invest your money into such an opportunity, it would be best if you knew exactly what you were getting yourself into. It is because the majority of such services are not regulated, and therefore investors stand the chance of losing their funds to fraudsters.

So whenever someone offers you an opportunity to invest money in a project outside the stock market, it would be best if you did your research on whatever they have to offer before you go ahead and hand over your money.

What do you need to know about DST?

You need to know several critical things about DST before putting your money into any of its projects.

  1. DST is entirely unregulated when investing in businesses outside of the stock market.
  2. Any government agency will not insure any money you put into DST.
  3. Several reports suggest that DST brokers tend to generate higher than average returns on investments for their clients because they do not work with their money directly.
  4. They also tend to use at least some of the investor’s money when they are trading on their behalf, which means that if their broker is fraudulent, they might lose more than 50 percent of their investment in a short time.
  5. DST brokers tend to use high-pressure sales techniques when trying to convince potential investors to put their money into such projects.
  6. They also try and trick investors by explaining how the company works in a not completely clear or straightforward manner and leaving out certain essential information that they think would put them off from investing with them.
  7. There are several cases where large amounts of customer funds go missing, and there is nowhere to report as an agency does not regulate the DST broker.
  8. There have been cases where investors have lost a large percentage of their investments within a few months of putting them into projects offered by DST brokers.
  9. DST brokers tend to only target people with large amounts of cash to invest.
  10. The majority of DST brokers tend not to explain the risks involved in investing in their projects which means that you need to do your research before you go ahead and hand over your money for any project they might offer you.


You need to know several critical things about DST if you want to invest your money with them. The first thing you have to remember is that it operates in a completely unregulated manner which means that if their brokers were fraudulent, the chances of investors getting their money back are slim.

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Learn to Trade With a Forex Demo Account

To some people, forex trading might seem like an impossible task. Any individual investor has the potential to make money in the forex market. The key is to open forex demo accounts first and learn how to use them effectively. A demo account lets you practice your strategies without any risk.

What you have to do first:

– Decide what sort of trader you want to be

– Define your goals for trading

– Develop a trading plan

– Choose which forex broker to work with

If you want to learn how to trade currencies effectively using a forex demo account, then you need to keep a few things in mind.

First, make sure that you have all of the necessary information available before trading any real money. You will need to know what type of trader you wish to be—news, technical or fundamentals-based, and what your entry and exit strategies will entail. Set some short-term, medium-term and long-term goals for yourself and determine the best ways to reach them.

Develop a trading plan based on these factors and ensure that you have everything recorded in a spreadsheet or some other easily accessible piece of paper. Find out how CPI affects your trading strategy.

Finally, choose a broker with low commission rates, deposit minimums, competitive spreads and reliable customer service.

Higher success rates for traders who use a demo account

Once you have all of your ducks in a row, then you are ready to open your forex demo account. Start by using just one currency pair until you feel comfortable with how it works. It is important not to spread yourself too thin by learning all of the trading pairs at once.

The success rate for new forex traders who use a demo account is much higher than those who choose to trade with real money right away. It allows them to learn their way around the charts and graphs before investing in this volatile market. Forex demo accounts also allow people time to practice executing trades based on their own decisions without being forced into making rash moves due to sudden news announcements or fluctuations in value that result from economic data releases.

Rest assured that if you practice patience, discipline and sound money management skills, then sooner or later, your hard work will pay off in the form of profits.

Get comfortable with different tools

Using demo accounts is one of the best ways to learn how to trade currencies online because it allows people with limited experience to get familiar with the software they will be using before any real money changes hands. A new trader can comfortably contact the various tools available on his platform before placing actual trades, saving him time and frustration. It also allows traders to experiment with different strategies without risking their capital.

Learn without losing capital

A basic understanding of forex trading can prevent costly blunders in the future if you learn as much as possible about it before making your first deposit with a broker. The global forex market is one of the most popular, so now is an excellent time to learn how it works.


As you begin your journey as a currency trader, remember that it takes plenty of practice and dedication to become a successful trader. Develop a plan with specific goals and objectives in mind to get started. Make sure your plan reflects what you want from your trading career and includes incentives for good performance. Setting realistic expectations and clearly defined standards will help keep you focused daily.

Bottom line

When it comes to determining which techniques work best for them, there are a plethora of options. It is crucial to learn as much as possible about forex trading before making your first deposit with a broker so that you don’t make costly errors in the future since you have nothing invested. Because the foreign exchange market is one of the most popular financial markets in the world, there is no better time to learn how it works.

Next, make sure you avoid these common trading mistakes.

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