@invest19 Starting a disciplinary investing approach is essential to attain financial freedom. However, it's easier said than done. We tend to deviate from our financial goals every now and then for one reason or another.
I believe, in today's tech savvy world, automation of investments is a good way to invest regularly and build wealth. Even if we forget to put money, the automation feature (e.g. auto debits to SIP) will continue and keep accumulating our wealth.
@balogh03 Yes, the earlier one starts financial planning, the more amount we can accumulate. DIY approach is fine but getting professional help is also a good idea especially if you are a new investor. People are realising the importance of financial planning these days. It's great you consulted a financial expert. How was your experience and what guidance you got? A brief idea, if you can give.
In the today’s world, "TARGETS" or "GOALS", form a very important catalyst. Today the world is moving towards their set targets and is caving pathways only to ensure that the targets are achieved at any cost.
For most of our goals, we need money to help us enjoy the benefits. And, investment can be one of the ways wherein we can earn returns. We are not masters of all trades and some of us are not that a great expert in their financial planning.
So, here comes the function of "GOALWISE" to help us set and achieve our financial goals.
What is GOALWISE?
Goalwise is a service platform provided by "Alphafront Finserv Pvt. Ltd." which is a Bengaluru based company established in 2015. Goalwise portal provides user benefit by helping you and me to set financial goals, track the portfolio’s progress and achieve them.
The service provider is involved in guiding their users through financial and investment jargons and simplifies the task at hand by personally managing the funds.
The company is also involved in risk profiling of their user, so that they can do the appropriate fund allocation in between equity and debt. They also closely monitor the performance of the portfolio and re-balance and redistribute the funds (if needed) efficiently to always keep you on track to achieve the defined goals.
How does the Goalwise system work?
The portal uses smart algorithms which automatically detect any the pathway of investment pattern needed for achieving such goals. It tracks any discrepancies if your portfolio is falling short and performs such activities which need to be done to get you back on track.
They have a very dedicated and expert team to help them to develop this data and help you and me to accomplish our planned goals.
Goalwise: Steps to Follow
Step 1: You need to select your financial goals:
Other life goals like buying a house or marriage or holidays
Step 2: Set your financial goals i.e. target money and period.
Step 3: Once your goals are set, you will get an array of options of mutual funds to select and invest into. Select the option which suits your need the best. If you are confused then ask the advisors.
Step 4: Goalwise meanwhile monitors your portfolio performance and help you check any discrepancies from the determined target. Thus, if needed, it advises you to re-invest more funds so that you don’t miss your set goals.
Fees & Charges
Goalwise is completely "FREE". Since June 2019 the portal has moved to direct equity plan system and have changed their pricing policy for their accounts. The accounts don’t have any account opening or annual maintenance charges.
Also, the account users are not liable to pay any hidden charges or commissions charged for the account and investment usage. They charge only for the financial planning and advisory services.
Hence, Goalwise is a service-oriented platform to help us understand the investment and succeed by managing our portfolio in an efficient and well-organized manner.
@pranali-yadav said in Child Plans: How to plan for your Child's Education:
Most of the people think insurance as the investment plan. But, it is risk coverage. It will be totally wrong to mix both of them.
Very right! It is better to start investing rather than thinking. Insurance & investment are two different things. Both of these need to be done keeping in mind different objectives.
Planning for your child's education well in advance through proper investment strategy ca really prove helpful. So, we need to work out the best options to get good returns from our investments.
A nice education initiative by Zerodha to create awareness amongst common masses. Firstly, their innovative discount broking model loaded with a bulk pf products and unique features. And, then their easy ways to educate people about investing and trading. Quite impressive!!
ET Money App is a complete solution for your diversified financial requirements.
Money Apps: Importance
With an increase in money market trends and Indian economy, there are so many money management applications and internet portals. Earlier when we needed to understand any monetary concept we used to roam around for lectures and seminars.
But, now every required answer and concept is just a click away. You have user friendly apps for every important task. Now, all these talks bring you to my topic of discussion which is a very popular financial app "ET Money App".
What is ET Money App?
This application provides oneself with all their financial needs. A money app that helps you to manage your finances better and in an efficient manner.
ET Money App: Features
This app helps you to:
Track all your bills and categorize the same into personal and business.
Collate all bills and provide you alerts for all payment due dates.
Get all balance details each month basis for all linked credit and debit cards and all bank accounts.
This portal also provides weekly-monthly and yearly updates on account balances and useful insights.
Apart from managing your personal finances, you can link all your investments to the account. This enables the ET Money app to send you report on your portfolio performance on a real time basis.
There have been 60 Lakh + downloads and with 4.5 ratings as per "Google Play App Store". That's really amazing number! ETMoney app is considered as India’s most trusted app to manage ones’ financial life from anywhere and anytime.
ET Money App: Services provided
Let’s understand the different products and services provided under this investment application:
This app provides you with many alerts for different tax saving schemes. By using that information, you can choose and directly invest into any tax saving scheme.
Direct Mutual Funds:
ET Money provides a unique platform to help you invest into the market. It allows you to invest into the market directly without commission. That simply means you can earn a minimum of 1% extra on your investment each year.
Loans can be stressful. So, this money app also allows you to enable and enjoy the benefit of instant, hassle-free and paperless loans.
You can choose and compare different insurance policies (term, health, car, and bike insurance) to help you decide the best-suited policy for yourself.
With proper expense categorization, bill payment alerts, and spending pattern information, this tool can help you keep track of all your expense. So, you can properly plan your expenses in an efficient way.
To start using this app, you need to sign up on the portal. You can easily download at Google Play or App store. Once registered, you can start using the app from anywhere and at any time.
As per customer reviews, ET Money App a safe application with many in-built firewalls to secure your personal details.
Further, this automatic tool divides all details and provides insightful excels and reports to carve your path to a great financial future. It provides real-time insights which empower you to plan your finances in a more realistic way.
I maybe not wrong in saying, that this app is a Simple, Smart and Secure way to help you manage your funds, expense and investments.
What do you think? Have you tried the ET Money App? What feedback you have for it? All have their own experiences to share. I had a good one, so shared with you.
Salaried individuals have a fixed monthly cash flow to meet their expenses and save for various life goals. They can save money for their retirement through the Employee Provident Fund.
However, savings in today’s time cannot be sufficient enough to take care of major expenses like child education, purchase of a house, or critical illness. Hence, one has to be in search of options that can transform his/her savings into wealth.
There are plenty of investment options like mutual funds, stock market, public provident fund, fixed deposits, national pension scheme, and ELSS funds. Therefore, depending on your target corpus and investment goals, you can select the avenue and invest the required money.
However, before investing money in the following assets I would suggest you get life insurance. The only thing predictable in life is its sheer uncertainty.
Regardless of how much you earn, no one knows what the future holds. Your family is dependent on you for all the basic needs, hence it is your responsibility to secure their future even in your absence. Hence, you can buy insurance and safeguard your family’s future. These days process of buying insurance is paperless, hassle-free and fast.
Let's learn few small tips as to How to become a successful trader.
To become a successful trader, you need a clear system that helps you to stay consistent and handle negative market movements. You must also guard against becoming over-emotional.
So, there is no magic formula to becoming a successful trader.
Stock Trading Basics:
Here are a few steps you can take to make sure you’re mastering both the basics and complexities of trading:
Do your own research.
Create a trading plan.
Practise your trades.
When you’re ready to take on the markets, you can open a live trading account.
Let's discuss these points in detail...
1. Do your own research
Improving your knowledge of financial markets is the first step to becoming a successful trader. Start by researching the different markets available to trade and to build your trading skills. Remember that you can never know too much; if you want to be a successful trader, you must always aim to improve your knowledge.
2. Create a Trading plan
A trading plan is a blueprint for how you are going to trade. It is driven by your trading strategy, helping you to quantify your goals and motivation. Your trading plan also covers your risk management strategy and preferred analysis method.
Learn how to create a successful trading plan.
3. Practise your Trades
If you want to put your trading plan into practice, you can start trialling your trades on demo account. With a demo account, you can develop your skills without risking your capital right away. Practising your trades will also help you to refine your trading strategy and learn from any mistakes.
These are my useful tips. If you have any other, do share here.
For people nearing their 40s, it is the right time to consider an investment plan. It is important to have a retirement availing one. When investing, you need to make sure that the retirement plan fits in your budget while offering maximum benefits. You can also take the help of an online retirement calculator with pension indicators.
I am an active investor and a trader as well. Something I wanted to discuss from long was a difference between different investing instruments. So, here I'll highlight Mutual Funds v/s Stocks v/s Bonds in specific.
Financial Instruments: Types
In the multi facade market, we trade in all kind of commodity and financial instruments. So a few commonly traded financial instrument are stocks, bonds, debentures, currency, etc.
Here I'll discuss the major difference between 3 popular investment alternatives: Mutual Fund v/s Stocks v/s Bonds.
Before jumping into the difference analysis, let's first understand the meaning and features of these three.
What are Stocks?
Stocks or more commonly called "shares" or “equity" are nothing but part of the company. Buying shares or stocks entitles its buyer with a right to part ownership of the company depending on the number and quantum of shares.
What are Mutual Funds?
Mutual fund is a basket of different combination of financial instruments i.e. equity and debt. So, investing in mutual funds simply means building an investment portfolio which comprises of equity and debts depending on once financial need and risk capacity.
The higher the risk an individual can take the more equity portion the person buys. The lower the risk the individual can take then the portfolio comprises of debt.
What are Bonds?
A bond is an instrument of indebtedness. In other terms, a bond is a financial instrument that is fixed income investment which represents characteristics similar to a loan taken by an investor to a borrower.
So, when you are buying a bond then simply means the company has taken loan from you.
Now that, we are clear about the meaning and basic features of all these, let's deep dive into the important differences.
Mutual Fund vs Stocks vs Bonds: Difference
In the case of Equity investment, the company is sharing part of ownership with the investor.
In case of bonds, the company is being indebted to the investors. While in case of mutual funds, the investor can be both be the owner as well as lender to the company depending on the investment plans and decisions.
Equity, bonds and mutual funds are all financial instruments which are subject to market risk.
As equity is a more volatile instrument, therefore more risk is attached to it. Whereas Bonds are only debts for the company, thus the risk factor tones down in there.
Further, Mutual fund is a bundle of equity and debt. Thus, the risk of the complete portfolio depends on the percentage of investment you make under which bucket.
3. Income Returns:
The income return on all financial instruments depends on market fluctuations and status. The income of bonds are more fixed and guaranteed than that of equity. Whereas mutual funds here provide a balance to their owner. If you can create a balanced portfolio of equity and bonds, then it may provide the investor with balance yield on the amount invested.
So to sum up, I can say that equity and bonds are opposite poles to each other in the market place environment. Whereas we can call mutual funds are our equator. So, in this spinning market, we have the three biggest financial players which you and I can choose for our personal gains and benefits.
Where do you prefer putting in your money? Do you actively trade in the stock market hours or you are a stay away from it? Mutual funds vs Stocks vs Bonds, who is the winner for you? Or there's yet another investment alternative that you'll like to add here? Feel free to share your views.
@Sandra Although PL India is quite old platform. But, with new and emerging brokers offering low cost models, the competition is tough. The investors and traders get more inclined towards discount brokers also as compared to full service brokers in India these days. Isn't it true? What do you say?
Fixed Deposit Double Scheme is meant to double your investment over a specific period of time. It is the interest earned that eventually doubles your money.
Fixed Deposit Double Scheme:
We all want to earn more money in a short period of time. There are many popular methods wherein; individual can invest in the share market or mutual funds or gold. But, the same is attached with high level risk.
So, everyone doesn’t have the ability and willingness to take the risk involved with these earning methods.
Let me take you through some conventional and low risk method with over the average return like: Fixed Deposit Double Scheme.
What is Fixed Deposit Double Scheme?
A Fixed Deposit Double Scheme is a scheme which is mainly launched by banks, wherein an individual investor needs to deposit fixed amount of money for pre-determined tenure of time.
The interest earned on this sum is eventually re-invested in the scheme and the complete amount is paid along with complete interest after the maturity. This scheme is also known as cumulative fixed deposit scheme.
Now-a-days many of the commercial, private and government banks and financial institution provide the benefit of this scheme to their account holders.
This scheme is very similar to regular fixed deposit scheme except for below points.
Fixed deposit Double Scheme vs Normal FD:
The features of the schemes are as follows:
The differentiating feature of the scheme is double earning. This means the interest earned on the scheme is re-invested in the scheme. Thus the total yield rate of interest is higher than regular risk free scheme. Thus the rate of return on investment (ROI) is higher than normal and regular fixed deposit schemes.
This investment scheme cannot be opened for shorter period like in days or a month. The tenure is comparatively longer than normal FDs.
There is no intermediate or regular payout. That simply means that the complete payment of investment along with interest would be made at the maturity date.
The terms decided at the beginning of the scheme i.e. rate of interest and period of investment cannot be modified during the tenure of the investment.
Benefits of FD Double Scheme:
Let's now discuss the exclusive Benefits of FD Double Scheme:
So, the overall advantages of this fixed deposit double scheme as below:
Easy to open: Any Individuals or companies or joint account holders can open this FD with banks following simple online or offline procedures. The interested investor after providing AADHAAR card details and other information like of tenure, amount and scheme holder name and address, can open the account.
Flexible: Every Individual investor is free to choose according to their financial position and market condition; the sum of amount the person is willing to invest for the tenure of such a deposit.
Collateral security: The scheme document can provide collateral security in case of loans. Many of the banks now-a-days offer loans against these fixed deposit schemes.
Easy Nomination: The investor can nominate the secondary account holder on their behalf of them by easily following either online or offline procedure.
Rate of Interest: The rate of interest under this scheme is higher than other related fixed deposit.
No doubt, the said scheme has its own pros (higher ROI) and cons (fixed tenure and no modification of terms).
At the end of the day, we need to make financial decisions based on our future prospects and current capability. Thus, every investor must analyze the same and take up their decision accordingly to satisfy their investment requirements.
And as far as I see it “Fixed Deposit Double scheme” is a very viable and risk free option to ensure above average return. What do you feel?
Fixed deposits are very popular fixed return-low risk investment schemes wherein an investor fixes an amount for a said period of time. No doubt, Fixed deposit or FD has been a highly preferred choice amongst people of India. And, this trend is being followed since decades. Do you agree to it?
Each one of us or our parents or grandparents might be having an FD for sure. Since this has been regarded as a safe investing option giving fixed returns over the years.
Now, depending on the bank policy, a fixed deposit can be opened as:
Cumulative Fixed Deposit (Paid at maturity)
Non-Cumulative Fixed Deposit (interest paid on regular intervals)
Interest rate for fixed deposits depends on RBI policy and bank notification. It usually ranges from 6-8% p.a. (pre-tax return). This may be slightly higher for senior citizens.
Tax Saving Fixed deposit: In case the investment under this scheme for a period of 5 years and more, then the individual can claim tax exemption benefit under Section 80C up to Rs.1.5 Lac of Income Tax Act.
Recurring deposits are again fixed return-low risk investment schemes wherein an investor agrees to deposit decided sum of money on a monthly basis. This is very popular scheme in India wherein Indian families save some amount on monthly basis.
@Ishu I always get this question: when should I start investing? And I always answer the same as Warren Buffet says "Start investing as early as possible to start reaping the benefits at the right time”.
The decision to create your investment portfolio is based on permutation and combination in between risk and returns. There is always a set of mixed options to choose to create your own investment portfolio.
And, the one that fulfils your goals is the "best investment" for you.
@surendranathm Liquid funds is a good option for short term investment in India. Just that, you need to put money in the right kind of mutual funds so as to get good returns. Liquid funds are easily converted to cash whenever required. But, not to forget, these carry some amount of risk. So, be very careful while investing.
Getting 15% annual return seems a bit unrealistic that too in a very short period. I think stock market may give that much return but that's very very risky. And, there's no guarantee to earn profits only in stocks unless you are a stock market expert.
"Mutual funds" might be a better way, but that too may not given you the desired return of 15% p.a in a short span of time.
@Punkeirang well said! Deciding our goals is really important. If we have clear objective in front of us we can move ahead to achieve that. I feel we should get rich through our good work.
Adding a side income does help to get rich in terms of money. But, one should grow rich in good deeds.
@Harleen Nice collection of stock trading apps in India. But, we can't have all of them. It really gets difficult to manage too many apps on our mobile. I would like to go with Moneycontrol app. I have heard a lot about this app and its features.
@Girish Khanna @Punkeirang I think FD is a good option for Senior citizens since they get a good interest rate plus some extra tax saving benefit also. But, for others the interest rate you are saying 7-8% is not the actual rate. This is before tax rate. And, more interest is offered for long term FDs.
Also, the real rate of return is much lesser after taxes. So, you basically get lesser in hand amount.
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