How To Identify the Correct Home Loan In 5 Easy Steps – Truth Revealed!

While buying a house is an exciting prospect, it is also one that requires a lot of planning. Most homebuyers rely on home loans in order to match the property prices. While a home loan is a great way to arrange for the required funds, it is also very important for a borrower to ensure that they have chosen a suitable plan. Not having a proper plan while applying for a home loan can lead to financial problems in the future, and this could end up affecting a borrower’s credit score.

Now, this does not have to be a problem if a homebuyer makes an informed decision while applying for a home loan. To be able to get a good loan plan, all that the borrower needs to do is to keep the following 5 steps in mind:

  • Understand your budget

The first step for a borrower is having a clear understanding of the loan amount that they can afford. So, start by calculating all financial responsibilities and existing debt to understand how much is getting spent every month on these obligations. This will help in understanding the budget for a home loan’s monthly instalments.

  • Be aware of the processing charges

It is quite usual for financial institutions to charge certain processing fees on a home loan application. This charge can vary from lender to lender, which is why it is important for a borrower to check with their lender about this fee before they apply for a home loan.

  • Learn about the lender’s prepayment terms

In some cases, borrowers prefer to prepay their home loans. Do note that the RBI (Reserve Bank of India) has not permitted banks to charge any prepayment fees on home loans with floating interest rates. However, those who have chosen a fixed home loan interest rate might have to incur a prepayment fee.

  • Focus on the loan amount that the lender is offering

Most lenders can usually offer up to 75% of the property cost, while some can even go up to covering 90%, depending on the value of the property. Make sure to find a lender that offers a loan amount that is sufficient for the house purchase.

  • Keep the interest rate of the loan in mind

One of the most important aspects to focus on is the interest rate of a home loan. This is because a home loan rate can significantly impact the loan’s monthly instalments. Make sure to find a lender that offers a competitive interest rate on the home loan to keep the EMIs affordable.

By keeping these 5 things in mind, a borrower can ensure that they get themselves an affordable home loan plan. Also, it is better to make use of a home loan EMI calculator. This calculator will display the monthly instalments of a home loan beforehand, based on which a borrower can decide whether to go ahead with the loan or look for a better alternative.

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5 Ways to Compare Term Insurance to Find the Best Plan

The major goal for any term insurance is to provide emotional support to dependents in times of need rather than providing hefty funds. And to ensure this, every policyholder must first understand the policy they are committing themselves. It will give them a better knowledge of the plan’s outcomes. But because there are several plans available these days, it might be tough to select the most suitable one for your requirements. The best method to overcome this obstacle is to compare specific features. Given below are five of those specific features that need a comparison to find the perfect term policy.

Comparison of Assured Sum

The assured sum paid as the mortality benefits is the only direct return from term insurance. Even though the chances of no claim request exist, due to the survival of the policyholder, the returns in case of demise are important to the dependent. So, one must not make compromises on the assured sum of the policy.

Always choosing plans belonging to the high returns category ensures that the nominee gets more than adequate funds. It also helps them lead a financially peaceful life even during the emotionally disturbed phase they are going through.

Comparison of Premium Amount

Comparing the premium amount is also equally important. It is due to the burdens it can cause on the monthly budget when not planned accordingly. There is no provision of money repayment or maturity benefit at term-end in a term insurance policy. This means the policyholder will not receive back the invested premium amounts ever.

The only way there are returns from the plan is during the sad demise of the policyholder. But that situation is likely, and the money you invest in term policy can be unfruitful. So, one must always make sure that they do not put excess funds towards term insurance premiums.

Also, having a huge premium amount will disturb your finances and can cause some cutbacks on the lifestyle or other necessary commodities. It is advisable to have a lower premium to avoid these adverse effects on the personal budget.

Comparison of Payment Frequency and Flexibility

The payment frequency affects the assured sum a lot. Some common payment frequencies for the same term policy are monthly, quarterly, semi-annual, and annual. Among these, the annual payments have the highest returns, and the monthly payments have the least returns for the plans with otherwise similar features. Compound interest and larger at-a-time premium amounts lead to this stark difference in the returns.

Similarly, premium flexibility is also important to ensure the policyholder has enough payment windows to pay the premium in time. It will keep policy deferring at bay. And even if the policy becomes void due to lapses in the premium payments, a flexible insurer will allow renewal windows with as low as possible late fees or fines.

Comparison of Rider Covers and Add-Ons

Covers and add-ons make term insurance more useful and, at the same time, much cheaper. When bought separately, the same plans have a larger total premium amount than a plan with combined covers.

Currently, only two rider covers are available to term insurance policyholders, viz. Accident Benefit Rider in insurance and Permanent Disability Benefit Rider. However, the available add-ons can vary depending on the insurer and can include critical illness and other crucial add-ons.

Comparison of Insurer Credibility

The insurer’s credibility is also of importance. The best method to compare an insurer’s credibility in India is through the claim settlement ratio annually provided by the IRDAI. A higher ratio is equivalent to a trustworthy insurer that respects the customers’ claim requests.


The knowledge of these five comparison methods will come in handy the next time you purchase a term insurance plan. Through this, you can ensure the term policy, which comes out as the most preferred one in all the comparison criteria, will be extremely beneficial. The returns from such plans will always be much better than the remaining plans. But before you start a comparison of the plans, make sure they all belong to a trusted insurer to make your job much easier.

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How Does a Financial Plan Help You Achieve Your Lifetime Goals?

Everyone or family likes to save some money and achieve their lifetime goals like building a home, giving higher education to a child, buying a new luxury car, retiring rich for a peaceful life, enjoying a vacation in an exotic location, buying property, etc. It all needs a perfect financial plan.

Planning in advance

You need to consider your available cash, monthly savings after household expenses, loan repayments, taxes, insurance, etc, before financial planning for your dream goals. A perfect investment plan reduces all of your stress in saving money for future needs. You also need to make provision for unexpected events like increased spending for hospital stays, losing a job, natural calamities, wars, strikes, etc.

Financial experts at Joseph Stone Capital help you create a perfect financial plan to meet your financial needs and stay calm even in difficult times. They will track your monthly cash flow and suggest the best plan to pay back high-cost debt and invest surplus your money in various avenues like bonds, mutual funds, real estate, ETFs, etc.

Higher returns for young

The financial experts utilize their expertise in garnering high returns on your investments and show the right investment plan considering your investment period. If you are young, they will help you select a fund that provides higher returns over a 20 to 30-year period by investing in a blend of equities, bonds, fixed deposits, etc.

Stable income for retirement

Those looking for a stable income for their retirement and just have around 10 years of service left can invest in stable income funds. Such funds comprise fixed deposits, bonds, debentures, etc. You can invest small sums every month in best-performing funds as advised by Joseph Stone Capital to save surplus income.

Investing in mutual funds

You can earn higher returns by investing in mutual funds. You need to read the terms and conditions of a mutual fund before deciding to transfer funds or writing a check for your investment. A variety of mutual funds are offered by the companies to help people to save money. They take a fraction of the earnings for maintaining the fund.

A variety of mutual funds such as specialty funds, funds of funds, balanced funds, index funds, debt funds, equity funds, money market funds, and income funds are available in the market to park your surplus funds and earn a higher income.

The debt funds invest your money in fixed income assets, government bonds, and company debentures. They are safe and give you fixed returns on your investment. You need to pay income tax on these funds if the fund value exceeds a certain limit.

Hybrid or balanced funds invest in a blend of assets such as bonds, equities, fixed deposits, etc. It involves a medium risk. The fund invests amounts in a certain ratio to reduce risk and maximize returns. On the other hand, equity funds invest in company shares or stocks. It involves high risk and may lose the significant size of your investment but gives you higher returns. It is suitable for investors, who can take risks.

Open-ended funds

Open-ended funds allow you to purchase units of a fund and sell them when you need money throughout the year. You can purchase some units of the fund at the current NAV (Net Asset Value) using your current savings. You can meet your expenses when you need funds by selling some of the units at the prevailing NAV on that date. It is one of the flexible options to ensure savings and liquidity. You can invest any amount in this fund. It is an actively managed fund. Therefore, you will be charged a higher fee compared to passive funds like closed funds.

Significant gains in close-ended funds

Unlike open-ended funds, you can not buy units of a close-ended fund at any time and date of the year. You can purchase some units of a closed fund during its offering. It has a maturity period. It means you can not sell them when you need funds. Therefore, you need to park only surplus funds in this fund for significant earnings for one to 5 years or more.

You can also invest in interval funds at certain intervals. You can purchase the units from existing holders of the units. It is one of the best options to enter a fund using your surplus cash and earn a decent income.

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Can a company have multiple current accounts?

If you ever visit a bank, then you will see a wide array of counters. All the counters are available for different purposes as per the requirements of people. The banks have separate departments devoted to the needs of people and to simplify the banking experience.

This might come as a surprise to you, but banks have different types of accounts too! Even though the savings account is most popular as it caters to you on an individual level, there is a current account too. This account is usually used for conducting business. Let’s know more about the current account.

As mentioned above, the current account is designed for businesses. The overall needs and requirements to carry business are different from the needs and requirements of individuals. Hence, the savings account does not suffice. Current accounts offer higher transaction limits. You can deposit and withdraw money a greater number of times than an individual with a savings account.

Let’s take a look at the features of the current account:

First and foremost, make sure that you know that the current bank accounts are non-interest-bearing bank accounts, which means that no interest will be acquired on your money. This is because all the money you have deposited in the current account is available for you to transfer and use 24×7.

Since the number of transactions is higher and money is readily available, there is no interest provided. This is a major differentiating factor between a savings account and a current account.

Compared to a savings account, the minimum balance requirement of the bank is higher for current accounts. You might be penalised if the minimum account balance is not maintained in your current account.

A person with a current account can delete and discontinue the account any time he wishes. The primary goal of a current bank account is to simplify businesses to transact smoothly. Hence, you can usually deposit any amount any number of times without any constraints. In the same way, there are no limitations on the number of withdrawals as long as you have funds. Recently many banks have started giving interest on current accounts as well.

Can a company have multiple current accounts?             

Due to growing fraud, RBI has proposed new guidelines.

If the exposure of the banking system is below Rs. 5 crores for the borrowers, then there is no limitation or restriction for starting current accounts or for the requirement of CC/OD facility by banks. However, the bank must get an undertaking that the borrowers must inform the banks whenever the credit availed by them reaches the 5-crore mark.

But for the borrowers whose exposure is beyond Rs. 5 crores, they will resume maintaining their current accounts with the same bank with whom they have availed of CC and OD facilities, given that the bank has a minimum of 10% of the exposure of their overall borrowing. Hope this answers all your questions related to having multiple current accounts in different banks.

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Discover Common Methods to Earn Money Online

You’ve heard of affiliate marketing and Google AdSense, a Google service that allows you to embed ads on your website. But did you know that there are several other alternative ways to earn money online?

This article will look at tutoring and Webinar training – three of the latest ways to earn money online. You’ll learn how to make money online without going to an office! And what’s even better is that you can do this from anywhere!

Remember to research each of these methods thoroughly -and pick the ones that fit your lifestyle.

Tutoring is a great way to earn money online.

While you don’t need a teaching degree to become a tutor, you need to have a strong passion for a particular subject.

Parents want someone who inspires and motivates their children, so the first step in earning from tutoring is to develop relationships with your students. When you get the results you want, you’ll be able to continue this career for as long as you’d like.

Tutoring is a profitable opportunity for those looking for a part-time job online because you could earn up to $60,000 per year if you work hard enough. Tutors don’t need a website or fancy business cards. Word-of-mouth is one of the best ways to generate a client base. Parents often brag about their positive experiences with a tutor.

Below are some platforms you can start tutoring from:

Tutoring on Fiverr

Tutoring services are highly demanded as homeschooling parents require extra help. Tutoring on Fiverr is an excellent alternative to earning money online without a degree. You can offer your services online or meet people in person to train students for a few hours a week.

Tutoring on Givling

One alternative to earning money online is to become a tutor on Givling, a social networking app and website.

Givling is an online social network with millions of users. It is an excellent way to gain experience while making money online. Users can choose the subjects they wish to tutor. The best part is that Givling is available for US citizens only, so there are no age restrictions.

Tutoring on Mistplay

Tutoring on Mistplay is similar to teaching on other online gaming platforms. You receive units, or GXP, for your time and effort.

To earn money from Mistplay, you must earn enough units and refer friends to earn extra units. You can easily make a lot of money by earning on Mistplay! This online platform is straightforward to use and has a variety of games that people of all ages enjoy for rewards.

Helping market researchers

There are many market research companies that need a variety of users to get data and opinions for several projects.

For example, a research company for small businesses will create online surveys based on the requirements of its client. Once the company creates the surveys, they send them to all people registered in its database. The users receive the survey, complete it with their honest opinion, and get paid for that.

If you join a paid survey platform, you will have a chance to earn extra money while sharing your voice.

Dropshipping is a new way to earn money online.

Dropshipping has been the hot new business trend for the past many years, attracting people from many backgrounds. YouTubers, personal finance TikTok users, and even regular folks are now promoting this new way to make money.

The process entails purchasing a cheap item and reselling it for profit. It requires the creation of an online shop and advertising on social media platforms.

You will need a good e-commerce platform like Shopify to start your dropshipping business. Shopify makes your dropshipping business look professional, enabling you to focus on building your business instead of your full-time income.

Webinar training

There are several reasons to invest in Webinar training as an alternative to earning cash online. The most common is that you can create valuable content that people will pay for. Even better, you can make webinars available for free.

Depending on the topic, you can even charge people for the training.

The benefits are clear: you can sell products and services to people interested in learning more. Paid webinars are also more attractive than free webinars. You can offer webinars for free in exchange for an email address.

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5 effective mutual fund investment tips for beginners

People are often lost when they start their investing journey because of their lack of knowledge in the field. Well, let us tell you, it’s not tough at all. You just need to be well read about it and must know a few tricks on how you can start. One of the main and easiest tools of investment is SIP or Systematic Investment Plan. You can invest in a mutual fund through this method wherein the investment will be made periodically which can be monthly, quarterly, or semi annually depending upon your preference. You can use a mutual fund SIP calculator to find out the returns you may incur on the investment.

Here are a few tips you must know before starting out your investment journey- 

  • Start small and early- It’s never too late to start investing. The earlier you start, the more advantages you receive. There is absolutely no need to put all your money in a Systematic Investment Plan and you have the freedom to decide the amount as well as the time period within which your investments need to be made. You just need to invest regularly so that you are able to generate appropriate returns.
  • Choose wisely- You have to select the best mutual fund plan to get the best returns. There’s no other way around it. Don’t make your choice based on internet reviews and ratings. Try understanding the minor details of the scheme and learn about it. The best mutual fund scheme can be selected based on its performance, rate of returns, subjective parameters such as the reputation of the fund manager, AUM of fund schemes, how the scheme will perform under stressful periods, etc.
  • Long term goal- SIPs are best suited for long term investment. If you’re planning to withdraw your returns within a few years only, don’t go for SIPs. The minimum period for a SIP investment should be 6 or 7 years. This is because the returns that are generated through the investment get collected until the maturity period and thus help you with a proper amount to accomplish your long term goals. Before making the investment, use a SIP calculator to get an idea of what your returns will look like.
  • Don’t rush into withdrawal- Looking at the down market condition, you may think of withdrawing your investment. Well, this is one of the mistakes that most beginners make. Don’t withdraw your amount, as it will have a direct impact on your portfolio and will decrease the value of the same. Even if you’re choosing to make systematic withdrawals, make sure that the principal amount is intact and that only the return portion is to be taken out.
  • Review the performance- Make sure you keep track of how your funds are performing. Make sure you have used tools such as the SIP return calculator to get an idea of what you will be making. Make sure that your fund is performing up to that mark. If there is any negative performance, you will be exposed to more risk, which is not good for your investment. If it is so, withdraw your amount and invest in any other scheme that is performing well.


The end goal of every investor is to earn the returns. This can only be done if you choose to put your money in the best investment plan. So, learn about different schemes and figure out what works for you. You can take the help of professionals or experts as well.

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Marwan Kheireddine, and the Value of Bringing Credit Cards to Lebanon 

Marwan Kheireddine knows the importance of the banking sector. Having worked within it for decades, he has wanted to expand offerings for people in Beirut and other parts of Lebanon for many years. He is the chairman and CEO of AM Bank, and has diligently worked to bring credit cards to Lebanon. After coming to New York for an education, and gaining experience with how the US banking system works, he realized there was a completely untapped market in that no Lebanese banks offered credit cards at all.

At that time, in the early 1990s, his father was the AM Bank chairman. Kheireddine began working there, and started his push for credit cards. He reached out to Visa and Mastercard, but AM Bank was small, and the letters he sent were never answered. Fortunately, he had another option. He contacted Michael Milken, who had taught him corporate finance and who was, at the time, vice chairman of Citibank. Milken got him an introduction to the vice president of Mastercard, and AM Bank got its license to offer credit cards.

His father was still very skeptical, but Marwan Kheireddine was undeterred. He purchased an embossing machine and started offering Mastercard through the bank. Slowly, people started applying. After all, it was the only bank in Lebanon where they could get a credit card at all, and it remained that way for the first five years of offering credit cards. Even now, AM Bank still has a higher market share in credit cards than it does in general banking.

Driven by the Importance of Innovation

The most important area of focus for Marwan Kheireddine is innovation. He saw in his studies how offering credit cards saved Citibank, and saw through his own efforts how it caused growth and stability for AM Bank. He introduced cards with no interest charges, cards with higher interest, and cards that required annual fees. He launches options for new cards in just a couple of days, and continues to push for additional offerings that can provide more to customers and create more value for the bank, as well.

Kheireddine also changed the bank’s hours. Most banks at the time opened at 8:30am, and closed at 12:30pm. He started keeping AM Bank locations open until 5pm, and it wasn’t long before other banks in the country started to do the same thing. He was the first to offer digital banking, as well, and has stayed on top of technology and innovation since his very first day working at AM Bank. He has also worked for the Lebanese government, as minister of state, and helped shape the country.

The financial background of Marwan Kheireddine has made it easier for him to understand the complexities that went into the changes he wanted to make with AM Bank. He recognizes not only the value that banks bring to customers, but their importance in day-to-day society. Kheireddine also notices the significance of innovation through technology, as customers are looking for more ways to do things that are convenient. By having digital and technological options, banks can make that easier for their customers.

Kheireddine has an MBA from the Columbia Business School at Columbia University in New York, and is a serial entrepreneur who has created a number of small and medium-sized companies. He has been a board member on the Beirut Stock Exchange, and he is also a founding member of the Young Presidents’ Organization Lebanon chapter. As a board member of the Lebanese Center for Policy Studies, he has worked on transparency, social justice, and governance issues.

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Know how to earn more money running a referral-based business

Are you running a referral-based business and looking for an opportunity to earn more? Then, you may not be disappointed. This blog will help entrepreneurs, travel and insurance agents, and retired persons looking for a lucrative business through a referral or affiliate program. You typically get paid for every high-quality referral you give. A personal loan affiliate program helps you earn additional income if you find and help people get an instant personal loan to meet their urgent financial requirements.

You don’t find many online businesses that give you more than 50K per month. A referral rewards program from IDFC FIRST Bank helps you earn money online without any investment. All you need to do is to know about IDFC FIRST Bank’s various financial products, especially instant personal loans offered for a medical emergency, home renovation, education, travel, and debt consolidation.

Being one of the best financial affiliate programs, you can have a second income sitting at home. You need to build a good network of social contacts for this purpose. You may come across friends, relatives, neighbours, and colleagues who look for a personal loan from a reliable source.

You can win their trust by helping them get a suitable loan from a reputed bank at a competitive interest rate and flexible EMI schedule. With this, you can help them tide them over a difficult period, and at the same time, receive compensation and reward from the bank.

Get to know IDFC FIRST Bank’s personal loan affiliate program

IDFC FIRST Bank through the MyFIRST Partner app helps you join an affiliate program and recommend its personal loans to people in return for monetary compensation. By offering one of the best personal finance affiliate programs, IDFC FIRST Bank gives you an opportunity to refer prospective loan applicants and earn money on every disbursement of a loan amount.

You have to involve in natural conversations with people who may want to know more about quick personal loans offered by IDFC FIRST Bank. By putting in a conscious effort, you can build prospective referrals looking for personal loans, which will help you earn money directly credited to your bank account. You don’t have any limits to the number of referrals that you can provide to the bank. With more referrals, you will earn more income.

To become a part of the affiliate program, you should be at least 18 years old and a citizen of India. The MyFIRST Partner app enables you to send completed personal loan applications and supporting documents for quick approvals. On verification and approval, your reference is converted into a lead. You receive a certain amount of money and exciting rewards after the disbursement of the loan amount.

How MyFIRST Partner app helps you earn more money?

To be a part of the personal loan affiliate program, you have to download the MyFIRST Partner app and register yourself by providing your full name, address, and bank details. Representing a leading bank like IDFC FIRST Bank makes it easy for you to get referrals who are interested in a personal loan.

Identifying people in your social and professional contacts and sharing your experience on the product or service can bring great results and income. The MyFIRST Partner app helps you check the instant loan application status through the ‘In Progress’ tab. Moreover, there is a dedicated team to help you with training and product knowledge on the app. Once the loan is approved and the amount disbursed, you receive a cash bonus credited every week to your account.

You can leverage the power of the MyFIRST Partner app and earn a minimum of Rs 25K every fortnight to promote your referral-based business.

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How Personal Injury Compensation is Calculated

The way in which compensation is calculated throughout the country can differ ver so slightly between states, but in the main the matrix which is used remains the same. Recently a Washington DC personal injury law firm was discussing this with us, and gave us the fill breakdown of what clients can expect when it comes to the awarding of compensation. If you have had an accident which wasn’t your fault and it resulted in injury, making a compensation claim is always a smart idea. If you win the case, here is how the court will decide how much compensation to pay out.

Economic Damages

The first aspect which the court will look at are the economic damages which should be paid out to the client. This will include the medical bills for the treatment of the injury, any loss of income because of the injury sustained and additional costs which this may have incurred. For example we have seen some cases whereby people couldn’t pay their rent and were forced to move, as a direct consequence of the injury. All of this will be factored into the claim.

Non-Economic Damages

Not all damage which you have sustained can be calculated in dollars and cents, and this is why we have the section for non-economic damages. This takes care of the pain and suffering which has been caused to the victim as a result of the accident. When it comes to calculating this, and putting a monetary figure on it, the court will take into consideration the type of injury sustained, and the severity of the injury. It may sound rather callous but ultimately different parts of the body are more valuable than others, and the severity further adds value to the claim. There is a very precise calculation which is used, with value placed on all kinds of different injuries. This changes state-by-state, in terms of the value placed on an injury.

Additionally we have to consider the emotional distress which someone has gone through and any consequences which have resulted from the injury with regards to mental health. Professionals will be consulted, who will have monitored the victim and who will then share their findings with the court. It will then be up to the court to decide how much extra could be paid out based on the emotional and mental impacts of the injury.

Punitive Damages

If there is a particular egregious case, whereby harm has been intentionally caused, we will also see punitive damages awarded to the client. This will usually come about following a criminal trial, although a settlement can be reached in some cases, if the client has no desire to go to trial. These damages are awarded less often than the economic and non-economic damages.

This is how compensation is calculated throughout the country and the only thing which will change between states is the value placed on the severity and the location of the injury which has been sustained.

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Know How ETF Can Be Used To Add Value To Your Portfolio

If you take a look at exchange traded funds, these are a unique investment tool that offers the best of two distinguished assets – the trading liquidity of stocks and diversification of mutual funds.

Defining Exchange Traded Funds

Also referred to as ETFs, exchange traded funds are open ended schemes that invest the majority of their investible corpus in the underlying securities of the index/benchmark that they track. As per market regulator SEBI guidelines, ETFs should invest a minimum of 95% of their total assets in the underlying benchmark. These funds try to generate returns that are close to how the index performs, but with minimum tracking error.

How do Exchange Traded Funds work?

When you invest in an exchange traded fund, you get exposure to a wide range of stocks that comprise the index. For example, if exchange traded fund tracks NIFTY 50 as its benchmark, the fund will invest in all the securities that comprise the benchmark, in the same fashion, without changing portfolio composition. They have passively managed funds that work in a slightly different fashion than other mutual funds. For example, both ETFs and other mutual funds invest in a pool of securities from the financial resources collated from investors sharing a common investment objective. These funds are designed to track the performance of the benchmark to generate similar returns. Unlike other mutual fund schemes that outperform the underlying benchmark, ETFs try to mimic the performance of the underlying securities of their benchmark and try to generate similar returns that are subject to tracking error.

How can ETFs add value to your portfolio?

Exchange traded funds give investors an exclusive equity market exposure. If you are someone who wants to invest in the stock market but fear that you might make a wrong investment decision, ETFs can help you understand how markets work. Also, since these are passive funds, they are cost effective and carry a low expense ratio as opposed to active funds that have a high expense ratio. Exchange traded funds have an expense ratio that is usually below 1% whereas other mutual funds may have an expense ratio that may go up to 2.25%.

Since you will be investing in a scheme that has a low expense ratio, your investments in ETFs can prove cost effective. Investing in a cost effective scheme is always good for an investment portfolio. Also, they are highly liquid in nature. Investors can do intraday trading with ETFs. However, they need to have a DEMAT account to store their bought ETF units. Since ETFs are traded at the stock exchange for their live market price during trading hours, investors need to have a trading account as well as DEMAT account. They can either take the long term investment approach or they can indulge in intraday investing as well.

ETFs are best suited for anyone who does want their mutual fund returns to be affected by human biases. When markets turn volatile, some investment decisions that the fund managers take can prove to be volatile for the investments. In such a scenario, ETF investors do not have to worry as their portfolio will remain the same and might be able to handle market volatility in a better way. Also, one does not need for the ETFs NAV to conclude for the day to trade in them. They do not have to place a buy or sell request to the fund house, unlike mutual funds that can only be traded at their NAV that is determined at the end of the day.

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