Vijaibabu's Blog - Personal Finance Guide for Financial Freedom

Liquid / Ultra Short Term Plans Liquid / Ultra Short Term plans are best suited for those investors which have a very short term investment horizon ranging from 1 to a few days. Infact, this is not an investment but just parking of the “surplus liquidity” – it’s a superior alternative to a “bank saving account” wherein you will earn higher yield. Although these funds don’t carry interest rate risk but they certainly carry credit risks. The aim of the investor should be to earn accrual interest. Short Term Plans Short Term Plans invest in similar kind of instruments as does a liquid fund but with a slightly high maturity profile. Hence, this fund is best suited for someone having an investment horizon between 3 to 12 months. This fund finds its place between a bank savings account and a fixed deposit. These funds carry credit risks as well as some amount of interest rate risk. The aim of the investor should be to earn accrual interest along with some capital gains. Income / Gi

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There are various tax saving investment options where an individual can save tax u/s 80C of Income Tax Act. However, all such investment options come with fixed returns. One of the best ways to grow your money along with saving tax is to invest in Equity Linked Saving Scheme (ELSS) Mutual Funds in India. What are Equity Linked Saving Scheme (ELSS) Mutual funds? ELSS mutual funds in simple term are mutual fund schemes that invests 65% in equity related instruments that are notified to avail tax benefits. Investment in such ELSS MFs would provide tax benefit to investors u/s 80C, which is capped to a maximum of Rs 1 Lakh. How do you benefit from ELSS Mutual funds?   There are various ways you would benefit from ELSS mutual funds. 1)  ELSS mutual funds help you to grow money:  Since ELSS mutual funds invests in equity related instruments, these schemes would help you to grow your money when the stock market grows over a period of time. 2)  Save tax u/s 80C up to Rs 1 Lakh:  By i

The survey conducted by Financial Intermediaries Association of India (FIAI), also found that more than 60 percent of the mutual fund investors were content with services of distributors and advisers of investment schemes. More than 80 per cent of investors in the country are satisfied with their mutual fund schemes, a survey by trade body of financial distributors said. The survey conducted by Financial Intermediaries Association of India (FIAI), also found that more than 60 percent of the mutual fund investors were content with services of distributors and advisers of investment schemes. The survey targeting mutual fund investors was conducted across the country and covered all segments of individual clients - retail as well as HNI - across all age groups.  As much as 86 per cent of the investors in mutual funds were found to be satisfied or neutral about their investments , while the rest had expressed low satisfaction with their fund investments, the survey said. Moreover, 15

Setting up and sustaining a budget is crucial to achieving financial goals. Here are the things you should keep in mind while creating one. 1. Separate needs & wants The first step in creating a budget is establishing the cash flow, that is, listing out the income and expenses. Next, identify the things you spend on and segregate the items into two categories— necessities and discretionary spends. The first includes things that are indespensable, like groceries, rent and utilities, while the second comprises wants or recreation (dining out, weekend trips, movies). It is essential to first provide for your needs, which means that you should pay your utility bills and carry out grocery shopping before buying the latest gadget. This may involve some sacrifices, but will ensure long-term stability. So try to be honest with yourself while identifying where and how much you are spending  and stick to the budget   2. Don't count the extras While listing out your income, don&