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Category: Finance

  • DIFFERENT TYPES OF FINANCIAL PRODUCTS EXPLAINED

    DIFFERENT TYPES OF FINANCIAL PRODUCTS EXPLAINED

    Working professionals have been able to save some money now though they have been working from home since last few months. They are now looking out for investment destinations to park these savings and earn returns on them. However, the only problem is they find it difficult to understand different asset classes as most of them are somewhat complex.

    We have identified some of these financial products with a detailed explanation for a better understanding of these working professionals.

    You can also apply for 12-month payday loans from direct lenders to invest money in these financial products or to finance your basic needs if you are out of a job. These are unsecured loans which are even meant for bad credit borrowers, which are often ignored by established commercial banks.

    These loans have an instant decision. Thus the approval or rejection decision is given on the same day, and the loan amount is transferred in the next hour, once it is approved.

    Let’s now look at these financial products in a bit detail, here it goes:

    • Equity Investing: You first need to have a Demat or Trading Account with a broker who is registered with The Financial Conduct Authority (FCA). After which you can start your investing or trading journey by buying stocks of companies. The returns on your investment here are in two forms, namely share price appreciation and dividend.

    You become a shareholder and thus, small owner of the companies in your portfolio. As a prudent investor, prefer to diversify your investments across different companies in different industries. Avoid putting all your money in just one company’s stock. The risk is higher here. Thus analysts suggest diversifying one’s portfolio for better returns and lower risk.

    • Mutual Funds: These are somewhat similar to equity investing with the difference being that here a fund manager is investing your money on your behalf. Mutual funds collect money from a pool of investors and the fund manager who is managing that fund will invest this money as per his research and knowledge.

    The Net Asset Value (NAV) of that fund will decide your returns. You can invest money in a mutual fund as one-time lump sum investment in one go, or you can start a Systematic Investment Plan (SIP) wherein you need to pay a fixed amount every month.

    The risk here is relatively less compared to equity investment if you are a novice investor. It is advised by many market veterans that if you are planning to invest in mutual funds then stay invested for long-term that is for 10-15 years or more to benefit from the effect of compounding on your returns.

    Also, the tax on your returns is less if you are investing from more than 5 years. Thus, it is preferable to attach a long-term financial goal like your child’s higher studies or his/her wedding to a mutual fund.

    • Derivatives: This is also known as F&O Market, which is Futures and Options as these are the most traded instruments in the derivatives segment. They derive their value from the underlying asset, which could be a share, commodity, index, or currency, and thus they are known as derivatives.

    They fall in the category of risky investment category as they are highly volatile as futures and options come with an expiry. Both of them are traded on the London Stock Exchange, and traders can trade them using their Demat account.

    Futures have an obligation which needs to be honoured at expiry while options give you a right to buy or sell before expiry, there is no obligation in options. Derivatives can make you a millionaire in a few months, or it can twist your fortunes another way round as well, thus trade derivatives with strict stop losses to minimize the downside.

    • Commodities Trading: This segment deals with buying and selling commodities like natural gas, crude oil, gold, silver, copper, iron, rubber, cotton, the power to name a few.

     You can speculate on future prices of these commodities and accordingly take a position on them. However, to be profitable you need to have knowledge about the commodity you are planning to trade and as a practice; you should follow every news related to that commodity.

    Commodity trading is good for short-term gains, but you have to track and monitor them for better returns constantly. If your trading capital is low, then you can approach direct lenders for 12-month payday loans.

    Currency Trading: The most active and the most volatile market, the currency market is open all day as when one market closes, other opens based on time zone difference.

     In this, currency traders take a position on currencies like US Dollar, Euros, Pound Sterling, Indian Rupee, Swiss Francs etc. They bet on the prices of these currencies vis-à-vis Dollar or other currency, the exchange rate. This trading is the most difficult and complex financial product as the potential for both upside and downside is high.

    Either you will go from rags to riches or another way round. Go for currency trading only when you are 100% sure else avoid taking such risk and settle for less risky instruments and asset classes.

    These were some of the complex financial products simplified for your understanding. We hope you got the basic idea about them along with the risk-reward ratio.

    There are other less complex financial products as well like bank deposits, real estate, gold ETFs etc. which have low risk and your money is comparatively safer. Decide which asset class is right for you based on your risk-taking ability, don’t just blindly follow others.

     

     

     

     

  • The Perfect Financial Advice You would Need Now

    The Perfect Financial Advice You would Need Now

    A financial advisor advises clients on investments, loans or insurance products. Since the term “financial advisor” is not legally protected, the job profile is very heterogeneous. For example best financial advice from a financial advisor can be trained as a banker and have worked in this profession.

    Likewise, financial advisors can also be tax advisors or insurance agents. Alternative names for financial advisors on the market are also insurance intermediaries, insurance agents or financial experts.

    Consumers may need the help of a financial advisor to find the one that suits them best with a variety of investment opportunities. For example, the financial advisor can help you choose the right investment or help consumers put together appropriate insurance cover. Likewise, financial advisors can help you configure a home loan. At the end of the consultation, a direct brokerage of financial products by the consultant is also possible.

    Find a good financial advisor

    Good financial advisors are usually optimally trained and have sufficient professional experience. For example, you can find out about the training or the necessary professional experience of your financial advisor beforehand on their homepage.

    A financial advisor is also good if he is independent and does not simply act as an intermediary for a bank or insurance company. As an independent financial advisor, for example, he is not bound by special commission agreements. So you can be sure that you get a loan on the best terms on the market.

    Unconditional trust is out of place

    Even if a financial advisor is looking for the best financial advice for the best possible protection or investment for you, he will always act strongly in his own financial interest. So it is important not to trust him unconditionally, because ultimately he wants to earn money from you too. Always remember that there is basically nothing for nothing in the financial industry.

    So go well prepared in financial advice

    You can get detailed information about individual forms of investment in advance, regardless of a financial advisor. There is generally sufficient information on banks’ websites to get an idea of ​​what is on offer. You can also use comparison portals to compare individual products or providers for example in a credit comparison. In addition, think in advance about which types of investment you are particularly interested in and how much money you would ultimately like to invest.

    The goal of your investment is also important. Based on this goal, the financial advisor can find suitable solutions much easier. Should the capital be used primarily for old-age provision or do you want to invest in real estate?

    The more you know in advance about your own goals and wishes as well as about possible products, the better prepared you are for financial advice. This is how you recognize dubious financial advisors

    • The financial advisor will call you before you even get in touch.
    • You should sign blank forms.
    • You will be urged to complete some products.
    • The advisor will not clarify the risks of investment products.
    • The advisor does not accept any other witnesses during the consultation.
    • You will be caught with a prospectus right from the start.
    • This is how you can recognize serious financial advisors
    • You will receive a written confirmation of the most important facts.
    • The consultant will give you sufficient time to think before signing the contract.
    • The advisor will clarify your options to object.
    • The advisor will advise you that you can also get a second opinion, for example from the consumer advice center.
    • The advisor goes into detail about the status quo of your investment and tries to include it in the new concept without wanting to quit prematurely.

    Reputable consultants work with a consultation protocol.

    You should check existing advisory contracts. If contractual deadlines have been agreed, you must adhere to them. If there are no corresponding contracts, you can easily change your financial advisor without separate termination.

    Fee vs. commission

    Customers have the option of using various types of financial advisors. Some consultants work on a fee basis. This means that they receive a fee for their advice regardless of the contracts concluded. Up to 150 euros per hour are usual. However, investing in a fee advisor can be worthwhile, as these financial advisors can recommend suitable products completely independently of commissions.

    If a financial advisor only works on a commission basis, customers can quickly fall into the so-called “commission trap”. In this case, the consultant does not convey the best possible product for the customer, but the one with which he earns the most commission.

    The consumer advocate

    These types differ in their procedures. While the fee advisor offers his advisory service for a fixed fee, the commission advisor advises free of charge, but is remunerated through the commissions of the brokered financial products. The consumer advocate recommends financial products based on secured data on individual banks.

    Conclusion

    Anyone who relies on the greatest possible security when investing should therefore opt for the advice provided by the consumer protection centers. Those who do not want to pay for the advice and who accept that they will receive a product selection based on the consultant’s tiered commission can use the commission consultant. The fee advisor is recommended for independent advice, in which the customer is advised as objectively as possible, even with risk-taking investments.

  • How to manage money efficiently by simply avoiding these 5 money mistakes

    How to manage money efficiently by simply avoiding these 5 money mistakes

    Finance management is one of the things that we never learn from school; instead, we will have to explore with experience. There is no shortcut to becoming a pro in financial management. But there are some mistakes that can create a bad shape on your finances. What will happen if you know what these five mistakes are, and you can give a new turn to your financial future by simply avoiding them?

    Most of us are more curious to learn how to manage money efficiently. The good news is you can simply avoid these 5 financial mistakes mentioned below to have better savings, good financial management habits, smart spending habits, and a secured financial future.

    We share with you these 5 money mistakes that simply answer your query of how to manage money efficiently?

    5 Money mistakes to avoid

    #1. Avoid warehouse club-style shopping

    One of the biggest mistakes to avoid is doing warehouse club-style shopping as you might end-up be buying things that you might not need at all. According to a study, if you’re among those who shop at the wholesale clubs such as Sam’s Club, Costco or BJs then, you would be spending and eating more.

    Why should you avoid warehouse club-style shopping?

    • Hefty annual membership costs
    • The compulsion to buy everything in bulk (a few kinds of stuff get spoiled when kept beyond a period such as cheese, dairy products) You can’t buy everything in bulk.
    • The temptation to impulse buying

    Plan B:

    • Before you go shopping, make a list of things to buy and stick to it
    • Shop at local markets and grab the available coupons
    • Look for a weekly discount at nearby supermarkets

    #2. Avoid being blindfolded about your money

    Do you have a track of every penny you spend and where all your money goes at the end of the month? If not, then it’s high time you stop being blindfolded about your money.

    Plan B:

    Knowledge is power!

    One of the efficient ways to manage money is by talking about it. You can discuss your financial ups and downs with a group of like-minded people or your family and friends. This way, you can get new ideas on how other people tackle their problems or how to manage money in a better way. You can share your knowledge and learn from others on money management ideas.

    #3. Avoid going for the easy payment options

    Today, we all prefer a fast and easy process for everything so has retailers and payment systems have streamlined their process. With all the ease, you’re less likely to know how much you’re spending or over-spending. You need to know how much you pay for each item and if it is worth it. Every time you spend on an unnecessary thing, you’re losing what can be saved for the future.

    Plan B:

    Fix a budget for every week or month and keep the cash aside to spend.

    #4. Avoid saving money on what is left at the end of the month

    The ideal way to build your savings is by putting 10% of your income every month into your savings account. Saving should be your first thought and not what is left after spending.

    Plan B:

    • Add a category as “savings” in your monthly budget
    • Fix an amount to save each month
    • Switch to automatic transfer from checking to a savings account

    #5. Avoid your credit to be misused by someone

    You might be familiar with the Equifax data breach, where 145 million people’s personal and financial data was hacked. Before someone misuses your credit card, you can take preventive action.

    Plan B:

    Put a credit freeze on your credit reports. You can still use your existing credit, but no new lines of credit can be established. You might have to pay some amount to establish a credit freeze, and details are available on the Equifax website.

    Summing up:

    You would have understood how to manage money efficiently by simply avoiding these 5 money mistakes to have a financially secure future. However, the best results come only when you implement these at the earliest. Just knowing the hacks will not do good until you start applying those at your end. So, start evaluating your financial situation and review if you’re making or made these 5 money mistakes and how you can take counteraction to avoid it soon. It is important to know where you stand financially and track your progress every now and then. This will motivate you or even be a guide when you’re diverted from the path.

  • How Can Accounting Firms Rise to the Challenges of COVID-19?

    How Can Accounting Firms Rise to the Challenges of COVID-19?

    We are going through unprecedented times. With uncertainty looming above the head, the only way out is to calculate the moves and comprehend the possible outcomes before embarking on the project. Risk is a silent companion with businesses anywhere in the world. Those who can ascertain the changing winds and take calculated risks can come out with flying colours. You will find such stories as an integral part of every successful business entity.

    The challenge raised by the COVID-19 pandemic has brought many of the firms into a stalemate. They reacted to the situation in their way. Some reduced the business activities, some others dropped business expansion plans, and a few others reduced employees and curtailed their services. Only a few lots of thought differently and adjusted their sails according to the wind. Such companies are continuing their slow and steady race without much concern.

    The slowdown has affected businesses from every sector adversely, including accounting firms in UAE, financial organizations, the real estate sector, and many more. People have adapted to the “new normal” and are going ahead in the flow. Here we are discussing how accounting firms can rise to the challenges of COVID-19.

    Keep the Contacts Alive

    Although the accounting activities, audit, and bookkeeping have been reduced, you must maintain and continue the relationship with the clients. A warm relation will be beneficial for both the client and you. Since the prevailing conditions are expected to turn better by the end of this year or early next year, the business activities will return to normalcy. In fact, a business boom may also happen in the forthcoming years.

    Redesign the Services According to the Time

    The standard services you were offering may not be suitable for the changing times. Therefore, rejig in the services may be considered to suit the client’s requirements. With the support offered according to the need of the hour, the clients will seek you out. This will also improve your goodwill and enhance publicity. Thus increasing the client base.

    Offer Affordable Services

    We must understand the imbroglio every firm is subjected to, owing to the uncertain future. The charges for the services you offer may be cut down accordingly. Thereby, both the client and your firm are benefitted. Besides, you may also offer packages, or free services, in addition to the normal ones, for a limited period. It has been observed that internal audit firms in Dubai have already made changes in their service packages to provide the best to the clients. You can also remove the underperforming services from your firm. And may think of reinstating those in the future, as and when the requirement arises.

    Make Use of Technology

    With the giant leap in information technology, we all are working from a virtual office. Most of the companies have directed their employees to continue working from home until the end of this year or the time a vaccine is invented. Virtual meetings, discussions over a conference call, and analysis of data using advanced software have become the norm presently. Use maximum use of technology to control expenditure and maintain your reserve fund. You may continue to work in the same manner even after the introduction of the vaccine too unless you confirm that the situation is under control and you can commence full-fledged operations.

    Identify Your Mistakes, Learn from Those and Make New Beginnings

    You might have been giving a blind eye to your mistakes, even after recognizing those. Your busy work/life schedule and the temptation to acquire more business may have been the reasons. Once you return to the normal condition, you will not find enough time to do such things. This is the time to examine your organizational structure, make necessary changes to boost the workflow, and amend policies to obtain the best result. Consequently, you can reap the best when the company restarts complete operations and regains the momentum.

    The Tail End

    Nothing can fail you until you decide so. You can continue on the path of success, by adapting yourself to the current situation and instituting necessary changes. By recognizing new opportunities and formulating an adequate way ahead, you can become the number one entity in the country. Focus on growth, have faith in your employees, make good use of software, and embrace changes. It will be instrumental in making your firm the number one in the region.  Success will come all your way. Calculate your move and continue the stride forward.

  • What Is The Easiest Loan To Get Approved For?

    What Is The Easiest Loan To Get Approved For?

    Are you wondering what is the easiest way to get your loan approved? This article has got you covered with all the essentials which will be needed to start the basic process. First of all, you need to realize that there is no fundamental formula that you need to follow for guaranteed personal loan approval. Know that cases differ and that is why the requirements change from lender to lender. Interestingly there is one thing which all the clone companies have in common and that is to get the loan back on time no matter what their requirements had been. This article has all the basics which you will need in order to increase your chances for quick loan approval.

     

    Clean Up The Score For Quick Loans Nz

    If you have not paid attention to your credit score that now is the time to take into account. These care courses should be considered when applying for loan applications. You might already be aware of the fact that the higher your score is, the more the chances of quick loans nz approval. So proofread your report for any errors. You need to realize that ignoring common error is not a wise decision as it can hurt your overall scores like wrong accounts or an incorrect credit limit. There are several places at your report for free annually. Now let’s see how you can clean up your credit score. You need to be careful about the monthly deadlines so that you will pay the minimum of what can turn into a disaster. You need to show the payment history is clean and clear. You can request an increase in the credit limit by calling customer service. This case can be approved quickly if your income has increased and if your payment history is clean.

     

    Rebalancing Debts And Income

    You might be already aware of the fact that several quick loans nz applications will ask you for your annual income. The best part is that you can also include the money which you will earn part-time. The best decision is to start a side hustle in order to supplement your income. It is a wise decision to diversify your income streams. Think of other ways to increase the overall net worth. Few of the way is selling liquid assets so that your tax is being accountable. If you will boost your income and lower your debt then it is a great way to improve the overall debt-income ratio.

     

    A Lot Of Cash

    Another way to quickly get approved for quick loans nz is by not asking for a lot of cash.

    You need to realize that if you will request and ask for too much cash than the amount you actually need then you will come out his rescue entry person. Keep in mind that a large quick loan will impact your capability of meeting the financial requirements and other obligatory payments.

     

    Lender To Get A Quick Loan Nz

    You have to find the right lender. Find several online quick loans nz lenders who will disclose the minimum requirement for the credit score. They will also detail to you about the annual income and other qualification requirements. Compare the loan lenders and then go for the best loan option that fits your budget.

  • How to raise your monthly savings by using Fixed Deposit?

    How to raise your monthly savings by using Fixed Deposit?

    It is really essential for every earning individual to keep a portion of their monthly income, be it a retirement portfolio or future financial obligations. In order to address such situations conveniently, everyone has to save some money for themselves. It will help not only in building substantial amounts over time, however it also inculcates the habit of disciplined savings as an individual.

    A systematic investment plan is offered in the Indian financial market with several options to facilitate the same. But, since this is related to the market-dependent instrument, the risk associated with it is much higher. And losing out on accumulated amounts will be also higher. Thus, to maximize the profit gained in a safer environment, it is always best to raise your monthly savings by investing in a Fixed Deposit.

    Why Fixed Deposit?

    Fixed deposits are one of the most popular saving tools for individuals of all walks of life. Especially, amid the high market value and the present economic downturn, investing in fixed deposits help you to protect your hard earned money and multiply it more.

    These deposits enable you to plan your investments according to the goals, so that you can multiply your savings with high safety and flexible tenure plans. The choice is given to you to fix the deposit tenure and also the frequency of the interest you will receive in return which will be paid out to you at the end of the tenure. In addition, you can use the fixed deposit calculator to find out the returns you will get in that current plan in which you’re opting for.  It will thus help you to calculate the maturity amount in the fixed deposit, before starting to invest your money in it.

    Therefore, the fixed deposit is suitable for all investors, regardless of any risks to their money. But, since the deposit needs a lump sum of amount, investors who are willing to open the account have to accumulate the money by saving it regularly until it reaches a solid figure. Financial institutions have their own eligibility criteria for investors based on the money they want to invest in. And it may not be suitable for individuals who have started their job roles as they may not have the essential amount of money to open a fixed deposit account and to meet a sizable monetary obligation, it will take longer time compared to other individuals who are continuously for years. 

    Hence, systematic plans are designed by the financial institutions like ShriramCity Finance to meet the fixed deposit requirements for those kinds of customers. It is designed as a quick savings tool in which an individual can pay the monthly deposits into an account of the fixed deposits. These deposits are considered, calculated individually and earned at the rate of interest prevailing on that date. At the same time, each deposit will mature individually like the other kind of deposits.

    Investors who are willing to accumulate their savings through the systematic plans can make use of the calculators available in the company’s website as well. Individuals can use this tool to assess the interest rates before depositing their money and it will also aid them to deposit with a perfect strategy as per their financial situation.

    How to systemize your Fixed Deposit plans

    Let us discuss some points that can differentiate the systematic plans form the other fixed deposit schemes or saving tools offered monthly in the Indian Financial market:

    Low Deposit Amount

    Any individual is eligible to start their own Systematic Deposit plans starting from a minimum amount of Rs.5000, it is the common amount fix by the financiers. Nevertheless, it also reduces the burden of saving a lump sum amount of money and it thus gives the pleasure of creating the wealth over time required to invest in a fixed deposit.

    Ranging from 6 to 48 months for a tenor and from 12 months – 60 months,  the monthly deposits for an individual has a large number of varieties in which they can avail the benefit of flexibility in the systematic plans. They can also choose the number of deposits depending on their short or long-term financial obligations.

    Assured Earnings

    The interest for each deposit earned is based on the prevalent rate on the respective date. However, unlike in a systematic investment plan, interest rates of each deposit accrues will remain constant throughout the maturity period. The rate of interest in return fluctuates with regards to the market conditions and therefore, it will not pose any uncertainty of earning for the respective investor.

    Ease of Depositing

    Systematic Deposit Plan can be made through an account payee cheque, on the first payments. And from there, the subsequent payments will be automatically debited by the concerned financial institution from the account of the depositor.  Thus, investors will not need to assume the struggle of payments on a periodic basis. At the same time, the investors can enjoy the convenience created by the systematized wealth accumulation and thus lead a stress-free life.

    Depositors who are also the account holders have the liberty to choose and withdraw their accumulated amount at the premature time as well. And those withdrawals are subjected to the regulations of the Reserve Bank of India (RBI).

    Simple Documentation

    An investor only needs to submit his/her KYC documents in order to open an FD account through Systematic Deposit Plan. The documents should be submitted alongside the cheque for the first payment with a NACH mandate.

    Loan Against Fixed Deposit

    Depositors can also opt for a loan against their saved fixed deposit money if they are in need of any immediate financial obligation, as an alternative to premature withdrawal. This benefit allows the individuals to make sure that their Fixed deposit account will continue to remain by earning the interest amounts. Therefore, the Systematic Deposit Plan stands as a challenging option for investors, who want to save a lump sum amount for their future without straining too much by observing their current financial status. 

    While comparing a systematic investment plan with the other plans, it is clearly evident that there is a guaranteed assured return even if there is a market crash.