Tips to Earn Profitable Returns on Share Trading

Tons of investment books and expert talks on stock channels may leave you in the confusion of which stock to buy. As rightly described by experts, share trading is a gamble. Nobody can assure you guaranteed returns, but with a little skill and knowledge, it is possible to earn a few quick bucks.

Consider the following tips to bet on profits.

Invest small: Investing in smaller amounts at the beginning is always a better way to start trading in stock markets. You definitely wouldn’t want to keep all your hard earned money at stake. By starting small, you will get a gist of profitable stocks and you may consider increasing your investment amount later.

Be patient: The stock market is not a place that multiplies your money overnight. Earning profitable returns takes time, and patience is the only key when learning to invest. Do not get discouraged if you make a few losses, it is all a part of share trading. Keep learning from your mistakes.

 

Avoid highly volatile stocks: As a newbie in the stock world, it is recommended to avoid investing in securities that are highly volatile. An ever-fluctuating behaviour of such instruments may result in huge losses. Futures and options are some of the examples of high volatile securities.\

Always Analyze the Market

Always analyse: Conducting pre and post buying analysis is a crucial aspect of stock trading. There are two types of analysis techniques i.e. fundamental and technical analysis. Fundamental analysis will study the impact of overall economic factors on the stock market. Whereas, technical analysis will scrutinize the charts and graphs to understand the technical factors behind stock volatility. You may avail broking services from an online broker that offers analysis of stocks for free.

                                         Being Updated With Information

Stay updated: There are various factors that are responsible for the change in the behaviour of stocks such as financial budget, big mergers, and acquisitions etc. which is why you have to keep yourself updated with the real-time news and happening. You can use online websites and mobile apps for live stock prices and news updates while on the go.

Ignore unnecessary advice: When it comes to trading in stock market, so-called well-wishers are sure to emerge from nowhere. They will keep striking you with unwanted stock tips. You will have to learn to ignore such tips and stick to following pieces of advice and recommendations from one trusted source.

 

 

Why Loan Against Property Seems to Be Cost-Effective

You can be a genuine saver, but there are times when you are short on finances and might need a little help. Though you always have an option of borrowing from family and friends, the amount you need can be large, so it would be better to arrange your own finances.

There can be an issue with arranging finances in a short period of time. The best option available is by leveraging assets, for example, a property.There are various banks and NBFCs (non-banking financial institutions) that offer loan against property. Even though it is difficult to avail a loan from a bank in comparison to NBFC, it is a much safer and better option. You can keep your own house as a collateral to take a loan from a bank. Banks will then exercise its due diligence, appraise the value of the property and will offer you up to 70 % of its value as a loan.

Since this type of loan is backed by a collateral, you will get a higher amount than the one you will get in availing personal loans. The tenure of the loan is also longer than that of personal loans. You can avail a loan against property for a tenure of 1 to 9 years. Some banks also offer an extension up to 15 years. The interest rate charged by banks for such loans is 12 to 15 % which is again way less than personal loans that charge 20 to 25 %.

To avail a loan against property, you will have to go through a strict scrutiny. Banks will check all the documents related to the property, it will also ask you for proof of residence, such as ration card, telephone bill or electricity bill. You will also have to submit a copy of the proof of identity, such as a voter ID card, passport or PAN card. Salaried employees will have to provide bank statements for the past six months, whereas a business professional will have to provide a certified financial statement for the last two years. Lenders usually grant loan looking at the credit history of the borrower.

Derivative Instruments to Be Aware Of

One of the main features of equity markets is that they are extremely volatile and risky. Investors keep searching for ways to reduce their risk of investment. The only way you can reduce the risk of volatility as an investor is by hedging and speculating. Derivatives instruments are widely used for hedging purposes. However, speculation in India is strictly banned.

Derivatives are basically a contract between two parties i.e. a buyer and a seller, whose value is derived from an underlying asset. An underlying asset can include stocks, commodities, currencies etc. Most people trade in derivatives to minimise or hedge the risk of investment.

Derivative instruments can either be traded through stock exchanges or over the counter. The primary objective of both of these types is to minimise the risk and increase the savings in the long run. However, Exchange traded derivatives are more popular because of them being standardised and regularised by SEBI.

Types of Derivatives instruments:-

Derivative contracts are of various types. The most common types are forwards, futures, options and swap.

Forwards: A forward contract is an agreement between buyer and a seller to purchase or sell something at a later date at a price agreed upon today. These are the contracts that are traded over the counter. Any of the parties does not possess right to cancel the agreement.

Futures: A futures contract is an agreement between a buyer and a seller to buy or sell an underlying asset at a future date. The Future contract trades are subject to a daily settlement procedure. In the daily settlement, investors who incur losses pay every day to investors who make profits. Unlike forwards, futures are traded on standardised stock exchanges.

Options: There are two types of option contracts which are call and put.  Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date.

Swaps: Swaps are agreement that involves a commitment to exchange cash flows in future at a pre-arranged formula. There are two types of swap contracts, interest rate swaps and currency swaps.

 

 

 

What Are the Consequences of Not Buying Two Wheeler Insurance?

Opting for two wheeler insurance is something that is mandated by law but still it has been found that 75% of two wheelers running on Indian roads either do not have a valid insurance policy or it is lapsed. Also, those who own it, have only purchased it for the sake of avoiding penalties and are completely unaware of the benefits it offers.

We all know, that life is quite unpredictable and it is vital to guard our self by an insurance policy. If you are someone who rides a two wheeler, but has not purchased an insurance policy or forget to renew it. Here are the types of problems you could face

Financial liabilities: A comprehensive two wheeler policy covers you against all types of unfortunate events such as theft, accidents, damages by natural calamities etc. It also covers damages caused to third parties by your vehicle. If you do not have a policy or your policy have lapsed, you will have to bear all the financial expenses on your own. Such damages can literally drain a huge chunk of money from your savings, so it is better to avail an insurance policy to protect yourself from huge financial losses.

Penalty: As stated earlier, purchasing an insurance policy for two wheelers is mandated by law. So, if you are caught without a proper policy, you must be ready to pay a very heavy fine or imprisonment up to 3 months. These rules are enforced and governed by Motor vehicles act.

Loss of no claim bonus:  You will lose your right on no claim bonus if you have a lapsed policy. No claim bonus is a money accumulated over the years if you do not file a claim. If your policy has lapsed for 90 days or more, you would not be eligible for benefits of no claim bonus.

 

Flying to Kuwait Made Comfortable with Jazeera Airlines

Kuwait is featured as one of the most interesting places in the world that is well-known for its rich and varied cultural heritage. Apart from being known as an oil-rich state, Kuwait attracts a lot of people around the world with its finest oasis, excellent museums, fine souqs, and lively beaches. There are numerous airlines that have flights to Kuwait, one of the best ones which is worth choosing is Jazeera Airlines.

Started in 2004, Jazeera Airlines is one of the few airlines that are privately owned. Over the years, it has managed to acquire a vast flight network. Some of the top destinations which are routed in its flight network are Bahrain, Beirut, Dubai, Alexandria, Amman, Damascus, Istanbul, Luxor, Jeddah, Riyadh, Kuwait, and Cairo. There are a total of 19 destinations, to which this magnificent airlines provide flight service.

Speaking of the planes owned, the airlines believes in offering the best service. This can be best seen by the taking a flight in its Airbus 320 aircrafts. The air-craft have two cabins, thus giving you ample of space to move around during long flights.

When it comes to in-flight services and comfort, Jazeera airlines has some of the finest luxury services and offerings. To tease your taste-buds during flight, the airliner takes you through a selection of culinary delights that will leave you spell-bound. You are allowed to avail a meal of your choice; selection of on-board meals is known to change on monthly basis. You would never think of getting down at an airport hotel for dining, once you have tried the delicacies from the vast selection of delicious offerings.

Boarding the flight is hassle-free for Jazeera Airlines. If you are a VIP, Corporate Passenger, or a resident, you can seek the ‘Hala Kuwait’ service. Through this service, you will not have to wait to undergo the lengthy security and luggage checks standing in long queues. For business class flyers, the airliner offer exclusive check-in lines.

Whether you are vacationing or going to meet your friends for a long time, luggage is easily taken care of by Jazeera Airlines. 40 kg of luggage is permitted for the Economy Class whereas business class flyers are given allowance to 20kg additional luggage. What’s more? You also get complimentary access to business lounges, if you are flying business class.

Booking a Jazeera Airlines flight is made easy with travel websites such as Cleartrip. By simply providing your vital information, you can easily check the price, routes, and availability of flights. So fly to Kuwait in leisure, fly with Jazeera Air.

Common Types of Mutual Funds You Must Know

Mutual fund investments are done for the purpose of wealth creation. Having said this, there are different types of mutual funds for you to choose from. To get a better perspective on which scheme to select, here are different types of mutual funds schemes for you to know and understand.

Money Market Funds-: These funds target money market instruments with maturity period of less than one year with good liquidity. Mostly, treasury bills make for majority share in money market instruments. These are the safest of the lot.

. Fixed-Income Funds-: These funds make investments on the basis of a specific rate of return. The target of such funds is to receive regulated payouts.

Index-Funds-: Index-funds are dependent on index values of top exchanges eg. Nifty or SENSEX.. The objective of these funds is to record the performance of a particular index.

Equity Funds-: Equity funds primarily target securities in the forms of stocks of various companies. They are further categorized as small, mid, and large cap companies, depending on the size of the company.

Fund-of-funds-: These funds do not directly invest in any kind of financial instruments as such. Instead, they are known to invest in other funds. This practice reduces the investment risk significantly. Moreover, the returns are also optimum and an investor gets exposure to a variety of industries.

Hybrid-funds-: Hybrid-funds invest in stocks, bonds, and securities which can be converted and traded. They have moderate risk; neither too safe as bond funds nor too risky as equity funds. The benefits of hybrid funds are more dependent on the investment objective as well as the risk-taking capacity of a person.

There are a variety of mutual funds available in the market. Now that you are aware of these types, then why not invest in a better way and seek lucrative benefits in the long run.

 

Top General Insurance Companies in India

General insurance is a broad domain, with several offerings. General insurance includes products like Fire insurance, travel insurance, health insurance etc. that provides financial protection against various risks. In the present times of uncertainty, several dangers lurk just around the corner. General insurance covers all types of risks except death. Some of the top general insurance companies in India are:-

(1)  The New India Assurance Company: – New India assurance is the leading general insurance policy provider in India. It is the leader in the national general insurance sector with the maximum market share. The main products offered by the company are Personal Insurance, Industrial insurance and social insurance. The company operates in more than 25 countries.

(2) HDFC ERGO General Insurance:-Headquartered in Mumbai, India, HDFC ERGO General Insurance Company Limited is a joint venture between HDFC Limited and ERGO International AG, a Germany-based company. Besides being an ISO 9001:2008 certified company, the company also has been given the iAAA Rating by ICRA for its excellent services to customers. It offers a wide range of products to suit all types of insurance requirements and is one of the fastest growing general health insurance companies in India.
(3) Bajaj Allianz General Insurance Company Limited: – Bajaj Allianz is a joint venture between Allianz SE and Bajaj Finserv Limited. It is headquartered in Pune. Bajaj Allianz General Insurance Company offers several complex general insurance covers. The company is renowned for introducing innovative claim procedures. Bajaj Allianz General Insurance awarded The Silicon Valley Business Award 2015 under the categories Best Financial app and Best overall app for its innovation – Insurance Wallet.

(4) ICICI Lombard General Insurance Company Limited: ICICI Lombard General Insurance Company Limited is a venture in the general insurance sector. The company is the biggest private general insurance in the India and has a strong hold over the Indian insurance market. It was also ranked among the top, in the list of top 10 best general insurance companies in India. The company came into existence in the year 2001, when ICICI Bank Limited and Fairfax Financial Holdings Limited formed a joint venture.

 

 

How Can You Contribute to the Society?

As humans are social animals, the urge to help and support other people in need from the community often arises in all of us. The underprivileged ones who have not been fortunate enough to be able to gather their own resources even to fulfill the basic needs of life can benefit from the contributions we make for them. The simple question that remains here is- “How can we contribute towards the well-being of others?”

In our daily lives, we often come across instances where a voice from within urges us to help someone in need. Due to various reasons and time constraints or maybe because of our own procrastination, we tend to ignore that voice and continue with what we consider to be our primary objective of living. However, this adds to the fury within us, and as time passes by, makes us feel demotivated and we find ourselves to be aimless. It is because our primary nature, which we have acquired from our ancestors, is to lend out a helping hand to someone in need.

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As the human species has evolved to become the most dominating one on our planet, it is obvious that we all must have worked together for the welfare of our fellow beings. By giving constant support to the forthcoming generation and an endeavor to grow what the previous generations have left for us, we have been able to build what we have today. Considering the predators that used to live on our planet earlier, it would’ve been extremely difficult to ensure the safety of human species if we too would turn our backs to each other.

Carrying forward this legacy of doing something for others, there are a number of NGO’s working in this direction. They give you an opportunity to find value in the human existence by playing a role in what appears to be a smaller aspect of the network, but ultimately binds all of us together. If it wasn’t for these practices, we could’ve dwindled into a small population scattered far away from each other. These NGO’s take care of a number of fields. From educating underprivileged children to providing assistance to people with disabilities and diseases, there’s a lot that has been done by NGO’s.

If we are stuck in the web of timelines and tight schedules, then the least that we could do is to provide support and assistance to these NGO’s by making a donation. As we all understand, in today’s world in order to do anything, a financial backing is a must. As NGO’s are involved in helping others, they do not make any earnings of their own. By making a donation, one can contribute their bit towards a better future for all of us.

 

 

Educate a Child, Save the Nation

In today’s world, the best kind of support that one can give to their children is by backing them with good solid education. A solid foundation laid from the primary level of education is almost a guarantee of a secure future. Irrespective of what the times to come may have in store for us, it is certain that a well read and well educated individual will definitely be able to make a mark for themselves in the society. While we may have been fortunate enough to receive good education in our lives, and offer the same to our children, not everyone around has necessarily had the same kind of opportunities. In such a situation, it becomes a responsibility of ours to ensure that no child remains uneducated in the society.

In order to see a better future for the neighborhood you live in and eventually the country, we all have to make a certain effort to ensure that child education reaches at every doorstep. We can do our bit by going out there on weekends or whenever we can find time and setting up a makeshift school for under privileged children and teach them. Such efforts not only add value to the child’s life, but also give us a reason to feel good about ourselves and a purpose to live our lives.

There are also a number of NGO’s involved in the field of child education. CRY, smile foundation, save the children, etc. are some of the well-known organizations involved in providing child education across all sections of the society, other than also taking care of their other needs such as providing them with a shelter and taking care of their nutrition requirements, etc. One can also sign up with these NGO’s as a volunteer and provide their services in the field of child education.

There are also a number of NGO’s involved in the field of child education. CRY, smile foundation, save the children, etc. are some of the well-known organizations involved in providing child education across all sections of the society, other than also taking care of their other needs such as providing them with a shelter and taking care of their nutrition requirements, etc. One can also sign up with these NGO’s as a volunteer and provide their services in the field of child education.

Apart from this, some of the well-established NGO’s such as CRY India have the provision of supporting a child’s education by making a certain donation. They have well set guidelines, according to which if one makes the donation, then they can be assured of providing aid to a certain number of children for their education requirements. You can opt for a one time donation, or also contribute on a regular basis by facilitating the continuous growth of a child for the next few years.

As the government has mandated certain laws for private organizations, they need to contribute a certain share of their income towards social work under the Corporate Social Responsibility or the CSR act. These are also effective ways to ensure child education is widespread in our country in the years to come.

 

 

 

Things to Consider Before Planning Taxes

Every end of the financial year comes with a burden of income tax calculations and complex return filing procedures. Some people do their own taxes while some consult professional tax advisors for help. Regardless of which of the above category you belong to, it is important to know a few important things about your taxable income.

tax planning

How to save?

The first and the foremost thing to know about tax planning is which income tax slab you belong to and how much of your annual salary is subjected to taxation. Tax slabs are determined by the government and are different for every income class category such as salaried, business/profession or a corporate. Knowing your taxable income will help you in understanding various tax deductions you can avail.

For example, section 80C of income tax act allows tax deductions up to Rs 1.5 lakh on investments into schemes like public provident funds, national saving certificate, life insurance premium and more. Furthermore, various other deductions are allowed for house rent allowance, home loans, and tuition fees. Asking your employer to restructure your salary will further save your taxes as salary restructuring will exempt petty expenses such as entertainment charges, telephone bills, transport allowance etc. from your taxable income.

 How to calculate?

Calculating Income tax for a layman can be a tedious job as there are various complex factors that are to be considered. Factors such as house rent allowances, investments are to be deducted from gross salary in order to calculate the accurate taxable income. You can either consider meeting a professional tax consultant or use online tax calculators. Income tax calculators online are as accurate as any professional tax advisor. Moreover, it is the fastest way of calculating taxes as it calculates your taxable income only in fraction of seconds after you submit all the needed information.

How to file returns?

After you are done with income tax calculation, return filing is the next step in line.  The due date to file income tax returns is July 31st of every year, so it leaves you with ample amount of time after the end of financial year to get done with the tax calculation and start filling returns. Return filing is the procedure where you receive a form from your employer, known as form 16. You are required to fill in the form with every detail of yours including PAN no, gross salary, investments, savings and a lot more. Nowadays, it is even possible to file your income tax returns online.