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Financial planning Tips for Women

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  Financial Planning Tips for Women Women are better managers than men. They also have a long-term view of things. All these are great skills for doing good financial planning. The inclusion of women in financial matters was less important in earlier days. Over the year the thought process changed as more and more women are driving financial decisions.  Go ahead and set a financial future for yourself and your family. Tips for Women 1. Take control of your finances as financial planning is important. Start planning your investment right now!! 2. Accumulating wealth through investment is necessary. It is good to put idle savings to use. 3. Manage your debt, as excess debt leads to financial disasters. If you have surplus cash, pay off your debt. 4. Create an emergency fund. It helps you to have enough money for bad days. 5. Get properly insured. You require both health insurance and life insurance. 6. Build a consistent plan for the whole family. It will be better to go in sync and alig

National Pension Scheme

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            National Pension Scheme About NPS   The NPS is a pension cum investment scheme launched by the Government of India. Pension plans provide financial security and stability during old age. It is an attractive long-term saving avenue.  The scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA).  NPS is available to all citizens of India. NPS account opening Eligibility Any citizen of India between the age of 18 and 65 years can open an NPS account.  There are two ways to open an NPS account.      Online through eNPS website.      Offline by visiting POP-SP. It could be a bank or post office. A Permanent Retirement Account Number is issued to each NPS subscriber.  Online through E-NPS One can open an account online through https://enps.nsdl.com/eNPS/NationalPensionSystem.html. Offline In case of offline opening of an account, the person can go to the nearest POP-SP. Submit PRAN application along with KYC documents. The PRAN card is issued and will be s

Foreign Investment

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Foreign Investment in India Introduction During liberalization in the year 1991, the government has eased the country's investment policies. It has made India an ideal investment hub for foreign investors. Investment by foreign companies are also attracted by lower wages, investment privileges, a good business environment, etc. FDI inflows According to the investment report 2021, India FDIs were bolstered due to the acquisition in information, communication technology and construction sectors. Total FDI Inflow FY20-21, India has attracted a 10% higher FDI inflow than the previous year. Computer software and hardware are reported as a top sector for inflow with a 55% share of the total FDI inflow, construction infrastructure at 16% & service sector at 11%. Among states, Gujarat, Maharastra and Karnataka attracted maximum investment by FDIs. Boost in FDI investment The government has relaxed FDI norms in various sectors like telecom, power exchange PSU oil refineries. Few are lis

Warren Buffett's Investment Strategy

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Warren Buffett's Investment Strategy Warren Buffett is one of the most respected and popular investors of all time. What made him an investment legend? What is his secret to success? Warren Buffett's Philosophy There are some of the most important Buffett investing principles are: 1. Look for a margin of safety - A principle of investing in which an investor only purchases securities when the market price is significantly below its intrinsic value. When the market price is below your estimation of the intrinsic value, the difference is the margin of safety. The margin of safety allows an investment to be made with minimal downside risk. 2. Look for quality - Don't invest in junk, struggling businesses. It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. 3. Don't follow the crowd - Best way to invest is to ignore the crowd entirely and focus on finding value on your own. 4.  Don't fear market crash and correction

Risk of investing in unlisted Companies

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 Risk of  investing in unlisted companies An unlisted company is a company that is not listed on the stock exchange. Unlisted companies are privately owned that has not yet gone through the IPO. Unlisted stocks are a financial instrument that is available for trade on over-the-counter markets. The risk associated with unlisted investments are as follows: Risk of investing in unlisted companies Loss of capital invested Loss of capital is the biggest risk when investing in the equity of unlisted companies. So investors need to be financially able to absorb any losses. Illiquidity Unlisted shares are highly illiquid. They are not on the stock exchange where multiple buyers and sellers are trading them. No regulatory framework There is always a huge counterparty risk as no regulatory is involved. There is no fair market price that can be tracked. People who invest in unlisted stocks do not enjoy the safety and protection provided by SEBI. Lack of transparency  There is no transparency in t

Pre paying your home loan

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 Prepaying your Home Loan Pre-closing the home loan means closing the loans before the completion of actual tenure Home loans are usually availed for a long tenure by borrowers to minimize the EMI pressure.  Prepayment is a facility that allows you to repay your home loan before the completion of your tenure. Prepaying your home loan means savings on interest and reduction of principal outstanding. Usually, customers opt for prepayment when they have surplus funds. Pre-closing a loan means clearing off your dues with a single payment. Prepayment means making part payments on your loan over and above your EMIs. Before Prepaying your home loan The interest rate at a record high Compare your return on investment with the cost of a home loan Repay higher-cost loans first Consider your cash need for emergencies, goals When to Prepay home loan Interest rate record high The higher part of EMI goes towards principal repayment Bulk income, bonus incentives received Prepaying your home loan Ther

Lessons from Rich Dad and Poor Dad

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Lesson from Rich Dad and Poor Dad Introduction Rich Dad represents the independently wealthy views on work and money. Poor Dad represents the traditional view on work and money.   Key Lessons The poor and the middle-class work for money. The rich have money to work for them. The rich dad says, "Money works for me" Every dollar that you have not invested is a dollar that does not work for you. Think of each dollar as your employee that can work twenty-four hours a day. It’s not how much money you make that matters. It’s how much money you keep. Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets. The money without financial intelligence is money soon gone. Financial intelligence is key. Always develop it. Working all your life for someone else can lead to financial struggle.