Category: Finance

Finance

You must have heard about some investors who can earn high returns on their investments. One common trait among them is that such investors have learned the skill of balancing risk and returns.

You know that investing in equities is risky, but such investments may deliver huge returns when done right. Acquiring the skills to balance risk and returns is not difficult; however, it does take a long time. Here are ways in which you may manage the investment risks:

  • Thoroughly know your investments
  • If you do not have in-depth knowledge, diversify your portfolio and include diversified mutual funds, Exchange-Traded Funds (ETFs), and non-related instruments.

Therefore, it is important to learn more about these instruments to earn a higher return on investment. Another important factor is to invest for the long-term.

Investment

Invest for the long-term

If you buy risky instruments, it is prudent to hold them longer. The associated risks are significantly reduced when you stay invested for a longer period (exceeding five years).

The markets are more volatile in the short term and may not deliver higher returns. Historically, stocks have performed well when you invest for a longer time. This is because strong fundamentals of the companies take time to deliver results, which is reflected in their stock prices. Therefore, when you remain invested for a long time, you can gain through the effects of strong fundamentals.

Understanding higher returns

You hear about investments with high returns. However, what does high return mean? To know more, you must understand the following terms:

  1. Risk-free rate: You earn this return from your investments without in-depth knowledge. Some examples include fixed deposits (FDs) and government bonds.
  2. Risk premium: The returns earned over the risk-free returns are known as the risk premium. A higher premium delivers greater returns and vice versa.

High returns = Risk-free rate + Risk premium

Some points on the risk premium

  • Some investment options like liquid funds and savings accounts have a negative risk premium
  • Instruments such as gold, debt funds, and FDs have a risk premium close to zero
  • Equity mutual funds, stocks, and real estate have a positive risk premium

You may handle high-risk, high-return investments through the following:

  • Holding the assets for a longer period
  • Buying these at below fair price
  • Investing in only high-quality instruments

The higher returns must be broken into two parts: risk-free rate and risk premium. The risk-free rate is available online and generally is the yield on a 10-year government bond or 10-year fixed deposit. You must add your expected risk premium to determine the potentially higher returns.

Tips to earn higher returns

1. Invest for the long-term

You must invest in a good-performing mutual fund and remain supported for about seven years. You must always be aware of the risk premium and use the formula to determine expected returns.

2. Diversify your portfolio

The risk of losing all your capital investment is huge when you choose to invest in high-return instruments. Using portfolio diversification is very important to reduce the possibility of large losses; Diversification is nothing but including multiple investment products within your portfolio. In case one product is facing a loss, it may be negated or mitigated through the other financial instruments included in your portfolio.

3. Avoid being greedy

Earning higher returns is common; however, it entails greater risk. You must make and follow a prudent investment plan to earn higher returns. It would help if you thought out of the box and included non-common financial products to earn potentially higher returns.

High returns investment products

1. Overseas company stocks

The Reserve Bank of India (RBI) allows you to invest up to INR 1 crore. In international company stocks. As per the 2004 Liberalized Remittance Scheme, you may invest in global companies without needing an RBI approval. You may open an account in a foreign bank and remit up to USD 75,000 per year, which may be used to buy overseas stocks.

2. Company FDs

Compared to bank FDs, company-issued FDs deliver 2%-3% higher returns. You must check the credit ratings of these FDs to make an informed decision. However, it would help if you bought FDs from reliable and fundamentally strong companies.

3. Pre-launch real estate properties

Developers offer competitive rates for properties before their launch. If you invest at this time, you may be able to double your investments by the time the property is ready for occupation. However, there is a risk of delays or stoppage if the builder does not have permission to construct.

4. Small and mid-cap mutual funds

During the last five years, the stock market has seen significant volatility. Most investors do not invest in lesser-known companies. However, such companies offer excellent returns, and t one way to invest in these is through small and mid-cap funds. You should invest through a Systematic Investment Plan (SIP) and stay invested for a longer period to earn higher returns.

5. Index funds

Such funds track the performance of indices like SENSEX and Nifty. Index funds are an excellent diversified investment product. These include blue-chip companies offering risk diversification. In the long term, index funds provide higher returns at medium risk.

To find the best investment plan with high returns, you must research the various options. This can easily be done online, where you compare different products on a single page, making it convenient and time-saving.

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Finance

There are two main concerns in our everyday life. One is savings, and the other is an investment. Investment is any money spent s today to reap benefits in the future. These two concerns will always dominate your thoughts, even if you live paycheck to paycheck. If you have already begun saving and have no idea where to invest your money, we have a solution for you. There are numerous investment products in the market but choosing the right one is the key to generating wealth. Investing your money in financial products will ensure that your money grows instead of being idle in the bank account.

Money

Different types of investment plans in the market

Here are some of the traditional investment plans available in the market.

Fixed Deposit

A fixed deposit is an ideal investment option for those who want to bear no risk and expect a regular income. Fixed deposits have been prevalent for many years and are a safe investment option. If you want to invest for a specific goal, you can for fixed deposits. It carries a lock-in period and a particular rate of interest. You will receive the amount back at the end of the maturity period. You can opt for a quarterly, monthly, or annual receipt of a claim on the same. Compare the interest rates the banks offer before deciding to invest in a fixed deposit.

Stocks

Investing in stocks is investing in the shares of a company. Stocks are one of the most popular investment avenues in the country and have shown significant results over time. However, the returns on these stocks are subjected to market volatility. Stocks are a good option if you can bear the risk of market movement. They can generate huge returns if you have invested in the right companies. The market movement will impact your investment, but it pays to remain invested for a long period to earn higher returns.

Mutual funds

Mutual funds are investment instruments that professionals manage on your behalf. They are classified according to the type of securities the fund is invested in. These include balanced, open-ended, close-ended, and stock funds, among others. Based on your risk appetite, you need to choose a fund that meets your needs in the best manner. If you have a high-risk desire, you can opt for stock funds. The stock or equity funds will purely invest in the equity market, while a debt fund invests in the debt market and carries a low risk. Mutual funds are a diversified investment option since the asset allocation varies in each fund. These funds are professionally managed and have become a prominent investment product in India.

Life insurance

If you are wondering where to invest money, you might not know the benefits of a life insurance policy. Multiple insurance products are available in the market, but life insurance is the most important. You must invest in a life insurance policy to ensure your family’s financial security in case of unforeseen circumstances. Investing in life insurance could be the best financial decision you have ever made. If you are not around for your family, life insurance will provide for the financial security of your loved ones. If you have a debt to pay, the life insurance cover will ensure that your family does not suffer under a pile of debt. Another benefit is the tax exemption on the investment. The premium amount is exempted from taxation under Section 80C of The Income Tax Act. Consider insurance as the most important investment option before you look for alternatives. It is much more than a cover for your life. It will provide for your family and help them maintain their lifestyle in your absence.

Unit-Linked Insurance Plan (ULIP)

ULIP is an insurance product, which divides the premium amount into two segments, one is for your insurance plan, and the other is invested into funds. Investment in ULIPs is exempted from tax and has a minimum lock-in period. This investment will give you returns at the end of the lock-in period. The acquisition will depend on the type of funds you choose. If you have a high-risk appetite, you may opt for growth funds. However, if you do not want to take much risk, you could choose balanced funds.

Choosing the best investment plan is not easy. It would help if you considered your long-term financial goals and risk appetite before deciding to invest. While life insurance is one of your most important investment products, various alternatives will help grow your wealth. Consider the tenure of your investment and make the right choice of product. It is important to remain invested for a long period to generate higher returns.

You no longer need to worry about how to invest money. It has now become easier to invest in the comfort of your home. You only need to choose the investment product, and can support it online. You can also set up a systematic investment plan to make small but consistent investments in your selected products. Making the right investment decisions today will reap significant future benefits.

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Finance

There are several reasons why you should invest in Ally Auto Finance. First, it’s an excellent option for those who want to finance their vehicles, and it can provide some of the best deals available. Ally also offers affordable auto loans for all types of drivers. Ally Bank has been around since 1992. It’s been in business since before the internet was a thing, and it’s been an innovator in the auto finance industry for almost 20 years.

Ally Auto Finance is a leading provider of car loans, insurance, and other financial services for drivers, their families, and their businesses. Ally offers customers various options to help them buy or lease a car. Customers can choose from leasing, buying, financing, or renting. And now, with Ally’s new AllStar Program, consumers can take advantage of an auto loan with no down payment, no collateral, and no credit check!

Ally finance is one of the fastest-growing financial institutions in the UK. Since 2007, they have provided car financing for thousands of drivers every month. Why would you look elsewhere with their low rates, competitive fees, and fantastic customer service? We’ll show you seven reasons why you should consider Ally auto finance.

Ally Auto Finance

What is an Ally Auto Finance?

Ally Auto Finance is a leading provider of car loans, insurance, and other financial services for drivers, their families, and their businesses. They offer various products and services, including car loans, credit cards, and home loans. They are the most prominent auto finance company in the US.

How Much Will My Ally Auto Finance Loan Cost?

Ally has a lot to offer regarding auto financing, and most people know about Ally’s affordable rates, but do they know about the fantastic benefits of Ally’s car loan packages? Here are seven reasons why you should consider Ally Auto Finance.

1. Low Rates

Ally offers low rates on its car loan packages, and you can save up to 5% off the APR by choosing a relaxed pace.

2. Easy to Qualify

It’s essential to find a lender that is easy to qualify for. This is because if you’re having trouble meeting the criteria, then you’re going to be turned down for the loan, and you’ll have to pay an additional fee. At Ally, you only have to meet a simple credit score requirement to qualify for a car loan.

3. No Hidden Fees

No hidden fees are added to the monthly payment.

4. Low Downpayments

Ally has no minimum downpayment requirements, and you can pay less than 10% of the purchase price.

5. No Credit Check

When you apply for an Ally car loan, your credit score won’t be checked.

6. Flexible Terms

You can choose a flexible interest rate for your car loan, and you can choose to pay your loan back with a fixed rate or a variable rate.

7. Online Access

Ally offers online access to your car loan, and you can also set up reminders and alerts to remind you when your payments are due.

How does an Ally Auto Finance work?

An Ally Auto Finance is a no-obligation auto loan or lease from a lender backed by a credit score. Once you get approved for a loan, the funds are available within days. Here’s how it works:

Step 1: Apply for an auto loan or lease.

Step 2: Receive a $0 down payment.

Step 3: Get approved for a loan.

Step 4: Enjoy your new vehicle.

How to apply for ally auto finance?

When applying for a loan, you usually have to prove you have good credit and a steady income. But what if you don’t have a steady income? Ally is here to help. They’ve made it easy to apply for an auto loan or lease. All you need to do is sign up and provide a few documents. After that, you’ll get a call from an Ally representative who’ll walk you through the process.

Ally auto finance review

Ally Bank is one of the largest banks in the US, and the company has been around since 1992. This has allowed Ally to stay ahead of the curve, and the company is a leader in the auto finance industry. This is especially true regarding new technology, and Ally has been a pioneer in mobile banking. As of January 2019, Ally’s app boasts over 1.5 million downloads.

Why Should You Use An Ally Auto Finance Loan?

If you’re looking for a loan for your vehicle, you’ve probably noticed that there are plenty of options out there. However, what separates Ally from the rest of the pack is its ability to provide a personal touch, whether you’re shopping for a new car, a used car, or even an RV. It’s one of the only lenders in the US that provides personalized service to its customers. Ally’s team members are known for going above and beyond for their clients. They’re also one of the few lenders that doesn’t charge an origination fee. That means you’ll save money when applying for an auto loan.

Frequently asked questions about Ally Auto Finance.

Q: What’s the most exciting part of running your business?

A: What’s exciting about the auto finance business is that you are helping people buy or lease cars with little or no money. It’s a great feeling when we get a check from someone who didn’t have the funds and now has a car!

Q: What are the best tools you’ve found helpful in growing your business?

A: The best tool for our business is an iPhone app. With the app, we can look up any vehicle in our inventory. I can look up the car and tell you what it needs, then calls the customer and see if they’re interested in the vehicle.

Q: Why did you choose Ally as your financing partner?

A: We chose Ally because of their excellent customer service and quick response time. When you have a good relationship with your customers, you will succeed.

Myths about Ally Auto Finance

1. Ally Auto Finance is a scam.

2. Ally Auto Finance will not work for your business.

3. Ally Auto Finance will not work for your car loan needs.

4. Ally Auto Finance is just another auto loan company.

5. Ally Auto Finance will not work for your personal auto loan needs.

6. Ally Auto Finance will not work for your real estate needs.

Conclusion

With Ally auto finance, you can quickly and easily get a car loan without a credit check. It’s not a perfect system, but it’s much easier than most financing options. I’ve been using their service for over two years now, and I’m impressed with the support they offer and the speed of payments. They also have a good selection of vehicles, and they provide a no-credit check loan option. I recommend them to anyone looking to get into the auto industry! I’m always a big fan of finding a company that understands the needs of a different demographic than my own.

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Finance

Every unicorn was once a startup that grew with the perfect mix of resources, hard work, planning, and inputs. However, there is a huge gap between wanting to start something of yourself and witnessing your dream become a reality. While you need to put in the effort to develop a lucrative idea, manage the logistics, and bring together human and non-human resources, one crucial aspect of a start-up is its funding. Often, a startup fails because it did not get timely financing, or the entrepreneur did not have enough funds to run and sustain the business. Thankfully, today, even the government is encouraging entrepreneurs to start a business, and it is comparatively easier to arrange funds for your startup.

Fundraising

If you are one of those who envisage yourself as the founder of a startup, here are five quick fundraising ideas for you:

1. Bootstrapping

You were bootstrapping means funding your company on your own rather than relying on other sources for funding. In bootstrapping, you can use your savings or revenue earned through a job or another business.

2. Crowdfunding

Crowdfunding is an effective way to arrange funds for any purpose you need. You can arrange finance for your business by raising funds from more than one source through crowdfunding. Typically, crowdfunding sources may or may not be known to you. The investors who provide you with money could be people who believe in your project. You can opt for crowdfunding if your startup is at the pre-seed stage. You can either return the principal amount invested with interest or allocate shares.

3. Angel investor

Angel investors are high net worth individuals who invest in your startup and provide financial banking. They may or may not take ownership equity in the company in exchange for the funds. Typically, angel investors help fund startups at the initial stage when most investors are unwilling to. Some angel investors who believe in your pitch and vision could invest a lot of funds in your business idea and help you grow your startup.

4. Venture capital

Venture capitalists are private equity investors who invest in companies with high growth potential. They provide money to such companies and acquire an equity stake in the exchange. Typically, this helps startups grow their business when they do not have access to the securities market. While opting for venture capital, look for VC firms that have invested in a business similar to yours. You might need to pitch a robust business plan to have VC on board.

5. Business loan

You can avail of a business loan anytime to fund your business needs. You can get a business loan from a bank or other financial institution. There are various benefits of choosing a business loan. You get the facility of repaying the loan in staggered amounts over the loan tenure through Equated Monthly Instalments (EMIs). You can choose the assignment as per your financial capability to repay the EMIs comfortably. However, you must check the startup business loan eligibility before applying for the same.

Whether you opt to arrange funds through bootstrapping, an angel investor, or a startup loan for new businesses, ensure to have a business plan that can help generate revenues and profits.

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Finance

A bank’s job is to provide various financial services that may assist you in better managing your life. With technological advancement and the rise in competition, banks offer different consumer banking services to stay relevant and attract more customers. A newly launched service is easily accessible through mobile bank apps to various consumer banking services.

Whether you are opening your first bank account or are an existing bank customer, knowing about different banking services can help. It even ensures to make the most out of the available consumer banking services. These banking services include online money transfers, withdrawals, easy loan accessibility, investment facilities, etc.

Digital customer service in the banking sector: A seamless customer journey for greater customer loyalty - Majorel

1. Unique services and banking solutions

Many banks provide convenient payment services and offer customized solutions. Such solutions involve cheque printing with or without a digital sign, demand draft printing, and online IMPS, RTGS, and NEFT using your mobile bank app.

Collection solutions involve cheque, cash, or demand draft pick up and cheque collection through cash management services, etc. Priority services involve the allotment of a dedicated relationship manager, a branch priority desk, and a 24×7 customer service experience.

2. Preferential pricing on lockers and lending rates

You also benefit from availing of attractive loan rates on credit options like a car loan, home loan, loan against security, or loan against property. Also, lower rental rates are provided on lockers. Lenders like IDFC FIRST Bank might also be willing to offer waivers or discounts on processing fees on various loan options.

3. Lifestyle benefits

Banks might provide access to many privileges to match your unique requirements. You can get to know about such rights through the mobile bank app. These benefits might include vouchers, discounts, attractive cash backs, deals, and offers on the leading lifestyle brands.

4. Debit cards

Besides simplifying your payment through the UPI app, banks even offer debit cards to streamline online or offline payments. Using a debit card, you can make a higher withdrawal from ATM without visiting a bank branch.

Debit cards include a fuel surcharge waiver, complimentary airport lounge access, lifestyle and apparel offers, and insurance coverage.

5. Investment and financial advisory

Besides providing lifestyle and transactional benefits, banks offer investment and financial advisory. If you want to invest in forming long-term and short-term goals, you may take assistance from your bank.

Banks can provide investment and financial advisory per your portfolio and risk appetite, which can help you make an informed decision. Wealth management and estate planning are among the vital advisory services offered by banks.

While every bank offers consumer banking services, some are better than others. IDFC FIRST Bank is among the best banks, as its benefits can transform your banking experience. You can invest, save, and earn conveniently with IDFC FIRST Bank’s mobile and internet services.

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Finance

Digital advancement in the banking system has paved the way for convenient banking through online and mobile apps. Mobile apps have become popular because of their ease of access and services. They provide comprehensive assistance with security and reliability at the tip of your fingers. Multiple levels of security in mobile banking apps ensure the complete safety of your funds and transactions. The article below lists the top online banking apps that offer absolute security and safety.

Safest mobile banking apps for banking online 7

Top online banking apps for safety and security

Banking apps offer various financial services and products in one place without any hassles. Along with services like fund transfers, bill payments, account statement access, and online account opening, you get complete security through dual verification such as password and OTP verification. Here are the top mobile banking apps with extensive security.

1. IDFC FIRST Bank Mobile Banking App

IDFC FIRST Bank: MobileBanking – Apps on Google Play

IDFC FIRST Bank offers an integrated mobile banking app with comprehensive services, including fund transfers through IMPS, NEFT, RTGS, and UPI, utility bill payments, online KYC, and opening account options. You get complete security with two-step verification, i.e., login credentials and OTP verifications.

IDFC FIRST Bank mobile banking application is available on both Play Store and App Store. You can download and register using your mobile number. Moreover, your transactions are safe with multiple levels of encryption, and your personal information stays safe with the bank.

2. Axis Bank Mobile App

AXIS Bank mobile app UI Design by Avinash Gupta on Dribbble

Using the Axis Bank mobile app, you can avail of services like online fund transfers around the clock, bill payment with standing instructions, and various online account opening options. All your information and transactions are carried out through encrypted channels to keep your data safe. You can download the Axis Bank mobile application from the App Store for iOS users and the Play Store for Android users.

3. HDFC Bank Mobile App

Hdfc designs, themes, templates and downloadable graphic elements on Dribbble

HDFC Bank offers comprehensive banking services through its mobile application. You can open an account within minutes using your PAN, Aadhaar, and mobile numbers. Additionally, you can transfer funds and pay utility and credit card bills conveniently anytime with complete security. Your information stays safe with the bank, and you can avail of banking services on the go.

4. SBI YONO App

Inside account of how SBI's YONO became one of the largest digital lenders in India - BusinessToday

SBI provides several services through the SBI YONO App. Using it, you can pay your utility bills, transfer money, apply for various savings and deposit accounts, and acquire loans and credits with advanced security features such as passcode, fingerprint scanning, OTP verifications, etc. Moreover, the transactions occur through secure channels which are fully encrypted.

While performing financial transactions, many stay skeptical about the safety of their money. There also have been many instances of cyber-attacks on bank accounts. However, with technical advancement and regular innovation, banks now provide comprehensive security to your online bank account.

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