Six Low Risk/Guaranteed Investment Return

Generating returns is never an easy task; nevertheless there are some schemes which provides guaranteed investment return at a very low risk or no risk. Appended below are some of the schemes which gives you good return at bare minimum risk.

Fixed Deposits (FD)

One of the most renowned guaranteed Investment scheme is Fixed Deposits (FD). Anyone can open an FD with any bank or any company allowed accepting deposits.

Everything about Gold Loan – A way to grow in Life!!

If we speak in a rational way, money attracts money, and accumulation of the same becomes wealth to an individual. We all purchase gold at some point of time in life, which may be in the form of bars, biscuits, coins or ornaments etc. as the same is been considered the most trusted asset to an individual.

Here I will discuss about what gold loan is, how to get it and why to take it?

What is Gold Loan:

Loan in terms of money against gold is termed as Gold loan. All you need is to place your gold to any bank or NBFCs for a pre-specified period and the loan is right in your pocket. Of course, this loan just like any other loan comes with an interest cost. Just like in the case of personal loan, Home loan, Term Loan or may also be an overdrawn loan like Cash Credit account.

Any individual having in possession of gold can pledge it with the authority and get a loan, and the loan amount “Loan to Value Ratio (LTV)” is calculated on the basis of value of gold on that particular day along with its purity.

Quarterly Average Balance (QAB) Calculation for Savings Bank Account!!

High misconception among the people about average quarterly balance is that the balance which is to be maintained should be kept in savings bank account throughout the quarter. Say for example for a account the average quarterly balance to be kept is Rs.5,000. What people do here is they keep extra Rs.5,000 throughout the quarterly in their bank account to avoid any penalty charges as failure in maintaining the balance attracts unnecessary charges on the shortage funds.(List of banks that provides Savings bank account are ICICI bank, Axis bank, HDFC bank etc.)

But this is not the case, as the calculation of Average Quarterly Balance is done in a different way and same is very easy to understand. Let see how it’s been calculated with an example;

The National Pension System (NPS) - Re-modified!!

A retirement plan available to the citizens of Indian starting from the year 2009, but I guess not many people have much knowledge about and how it helps in individual’s retirement planning.

Let see what this is all about!!!

What is the National Pension System?

The National Pension scheme is to promote income security at the time of retirement to citizens of India which earlier was not given much of importance. So, NPS a step forward by the Central Government is basically a voluntary contribution scheme introduced through Pension regulation authority named as Pension Fund Regulatory and Development Authority (PFRDA).

Exchange Traded Fund

An Exchange traded fund (ETF), is a type of Investment Company whose investment objective is to achieve the same return as a particular market index. An ETF is similar to an index fund in that it will primarily invest in the securities of companies that are included in a selected market index. An ETF will invest in either all of the securities or a representative sample of the securities included in the index. An ETF invest in a basket of stocks which blindly mimics a chosen market index (say, the S&P, CNX, Nifty, or the BSE sensex). For convenience, the Net Asset Value (NAV) of the ETF is usually represented as a fraction of its underlying index. For instance, the benchmark Nifty ETF has an NAV that is one tenth of the prevailing Nifty value. Unlike regular open end mutual funds, ETFs can be bought and sold throughout the trading day like any stock.

National Stock Exchange

While India has had a long history of securities trading, the markets have not always kept pace with the changing trends and requirements for this industry to reach its full potential. Particular issues of concern in the securities industry have been lack of transparency, lack of trading facilities which are fair and accessible to all, undercapitalized trading members, dated procedures and practices and long and uncertain settlement cycles. NSE emerged as an endeavour by some of the institutional investors within the country to address these issues, and to break the monopoly that was enjoyed by the BSE brokers. NSE incorporated in 1992 was given recognition as a stock exchange in April 1993 and stared operations in June 1994.

Bombay Stock Exchange

The roots of the Stock Exchange, Mumbai can be traced back to 1875, when the share and Stockbrokers Association (non-profit organisation) was established. BSE is the oldest stock exchange in Asia and most important stock exchange in Indian capital market. After liberalization, the stock exchange, Mumbai has witnessed a huge increase in trading and economic deregulation and prompted the stock exchange to improve its operations on par with the International standards. The Board of Governors of BSE comprises of 9 elected directors (one third retire every year by rotation) , an executive director, three government nominees, a Reserve Bank of India nominee, and five public representatives. A president, vice president and an Honorary treasurer are annually elected from among the elected directors by the governing board following the elections of the directors. The executive director works as the chief executive officer and is responsible for day to day administration of the stock exchange.

Public Provident Fund Scheme (PPF)

This was introduced on July 01, 1968 and is primarily meant for self-employed individuals. The salaried individuals are also allowed to make contribution to this scheme over and above their contribution to the recognized provided funds in their respective organisation.

At the option of the investor, the tenure of the account opened under this scheme can be extended by blocks of 5 years each.

A PPF Account can be opened in a Head Post Office or in a branch of SBI or its subsidiaries or at specified branches of some other nationalised banks by an individual on his own behalf or on behalf of a minor of whom he is a guardian or on behalf of a Hindu Undivided Family of which he is a member.