Although equity mutual funds are the most sought after mutual funds by Indian investors, those are not the only mutual fund investment option available. There are some funds that invest in securities other than equity, like in government bonds, corporate securities, call money, certificate of deposits. These fixed income securities are known to general regular income. Mutual funds that invest in such money market instruments for income generation are referred to as debt funds. As per market regulator Securities and Exchange Board of India (SEBI), there are sixteen sub categories under debt funds. This categorization has been done for investors to be able to distinguish between the different schemes and choose what fits their interest.

Corporate bond fund are one such debt fund category preferred by those investors who carry a moderate risk appetite. That’s because a corporate bond fund allocates at least 80 percent of its total assets in AAA and AA+ rated bonds. As per data released by Association of Mutual Funds of India, corporate bond funds received an overall investment of a whopping Rs. 11,910 crore since the month of July, 2020. The ongoing coronavirus pandemic has led market volatility to its peak, thus forcing a lot of investors to rebalance their mutual fund portfolio with corporate bond funds. Debt funds that invest in lower credit rating bonds generally do so with the hope of seeking higher capital gains. However, such investments may not be able to withstand turbulent market conditions and hence investors prefer shifting to corporate bond funds as they invest in bonds with a far better credit rating.

But that doesn’t make corporate bond funds a completely safe investment option. After all they are mutual funds and we all know of the fact that investments made in mutual funds do not offer guaranteed returns. This is why investors are expected to determine their risk appetite before making an investment. Apart from this, they should also take a look at the past performance of the fund to get a fair idea about whether the fund holds the potential to help them with their investment objective. Now if you are someone who has been a conservative investor and looking to shift from those investment avenues to something contemporary, they can consider investing in corporate bond funds. Not only do these funds carry a diversified portfolio, but they also hold the potential to offer better returns as compared to traditional investments.

The ongoing pandemic has made banks reluctant to offer credit to companies with low credit ratings. Hence, investing in corporate bond funds makes a lot of sense at this point of time at least. Corporate bond funds have been performing better than other debt fund categories simply because they hold the majority of their assets in high rated company bonds. So instead of investing in funds that invest in low rated bonds with the hope of fetching higher returns, investors should focus on generating consistent returns. Because mutual fund investments should generally be avoided who have a short term investment horizon. Long term investments shun the possibility of investments getting affected by daily market upheavals. To invest systematically in corporate bond funds at regular intervals one can start a monthly SIP. A Systematic Investment Plan allows investors to invest a small amount every month and help them get closer to their investment objective gradually and steadily. One can even take the help of an online SIP calculator to get a rough estimate of their capital gains through their monthly SIP investments. If you feel that you need further assistance in making an investment decision, seek the help of a financial advisor.

Bitcoin is one of the many kinds of digital currency that you can use to pay for specific services on the internet. There are many reasons why people choose to pay from their anonymous Bitcoin wallet rather than using their debit or credit cards. By the time you are getting to paying with Bitcoin, many steps are involved. Ensure that you take the right steps to avoid losing your coins to hackers or scammers. Some of the top advantages of paying with Bitcoin are;

No banking fees

Banks are known to charge transaction fees for all that you make. This aspect is a turnoff for a decent number of the populace since the financial institutions charge exorbitant rates for their services. Bitcoin transactions are free of the transaction charges giving you value for your money. No fees are also charged for account maintenance reducing the cost of banking considerably when compared to the traditional forms of banking. Assess your bank for all the fees they charge for the various transactions. That number is reduced to zero when one opts for Bitcoin as a mode of payment instead. Important to note is that international transactions may attract a few, but it is significantly lower than that charged by brick and mortar banks.

Accessible

Bitcoin is a banking system that you can walk around within your mobile phone. All transactions for this cashier option take place online and at no point will you be required to walk to a land-based establishment for any issues. Most Bitcoin wallets are compatible with smartphones making it easier for you to access your funds wherever you are. Populations that have no access to a brick and mortar bank can also rely on this new system to acquire products and services and pay for their bills too. Additionally, the low charges for international transactions make this system the best for people who are in different continents of the world.

Anonymity

Unlike other payment systems that require a ton of information, Bitcoin does not need the personal details of a person to process the payment or even to get the wallet. The anonymous Bitcoin wallet makes it possible for you to pay for service and products on from virtual and land-based stores without sharing a shred of personal data. The purchases are discrete unless you choose to make the public for other people to see. The transactions are also untraceable, making this the perfect choice for a host of purchases that require one’s identity to remain in the shadows.

What makes Bitcoin payment stand out is the fact that it is peer-peer focused. This means that people on the same network can send and receive payments irrespective of where they are. Bitcoin is among payment systems that are not regulated by any government or control body. This makes the various transactions on the internet untraceable. The lack of regulation is a demerit, and this means that no laws will protect you against any harm caused by Bitcoin and the transactions from the same.

We all are well-versed with a recurring deposit that is present as a mode of continuing investment. It isn’t easy to track the investors based on the returns on these deposits. The RD calculator is widely used for eliminating the difficulty of computing its returns manually. With its help, the investor comes to know about the exact amount increased on the deposits after a particular time period.

Noted benefits of Recurring Deposit Calculator

The Recurring Deposits entails steady monthly fixed deposits for a particular time and earning RD interest rates. The premature withdrawals result in a penalty, and calculating the interest could be tedious and takes lots of time. Hence, the RD calculator is the best we can use. There are lots of advantages related to the RD calculator 2020. Let’s start discussing them.

1. Hassle-free usage

Most of you don’t know that the use of the RD calculator is effortless. You have to insert the values of monthly deposits, RD rates, and a number of years. By entering all, you will automatically get the maturity amount precisely.

2. Saves time

RD calculator usage saves lots of time for investors. It is ideal for solving complex calculations within seconds.

3. Accurate result

The calculator is designed in a manner to provide an accurate answer without giving any chance of error.

4. Helps in future planning

The investors can easily plan their future with the use of this calculator because of precise results.

5. Absolutely free to use

Every investor should know this that the RD calculator is free to use. You can use it multiple times for calculating the returns depending on interest rates and tenures.

The right way of calculating recurring deposit interest

Before understanding the working of RD calculators in Intra-day trading, firstly, it is required to understand the correlation between recurring deposit and interest rates. The interest is usually compounded quarterly by various banks and fiancé institutions. Mentioned is the formula for calculating the maturity value of RD.

M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )

M = Maturity Value

R = Monthly Instalment

n = Number of quarters

I = Rate of interest/400

Hence, it is easy to use an RD calculator.

Till now, you all must have understood the importance of the RD calculator in getting the accurate number of your maturity value. So, use it wisely and spend your savings in a right manner.

The Motor Vehicles Act, 1988, makes it mandatory for every vehicle owner to have a basic motor insurance policy in place. Now, getting car insurance offers many more benefits than simply keeping you compliant with the law. The insurance coverage will provide you with financial assistance if you face a road mishap or damages due to natural or man-made calamities. 

However, it is important to note that every insurance policy comes along with a list of charges that are not covered. It is crucial to note these at the time of policy purchase so that you do not get surprised later on when you need to make a claim. To help you understand what these exclusions entail, this article lists out 3 of the most common charges that are not covered by a standard car insurance policy. Read on till the end to understand how you can best tackle these charges when they arise. 

• Cost of consumables

The consumables in your car are the parts that need frequent replacing due to natural wear and tear. In essence, they are called consumables as they get consumed over time as you run your vehicle. Consumables commonly include the nuts, bolts, screws, engine oil, and brake oil. When you make a claim under your car insurance policy, you have to pay for these consumables yourself. 

• Charges for engine repair or replacement

Even if you have a comprehensive car insurance policy, you cannot make a claim for any charges involved in repairing or replacing your engine and its parts. For instance, if you live in an area that frequently gets flooded in the rains, your car engine might face the issue of hydrostatic lock. The kind of repair work that would be needed to fix the water-damaged engine would not be covered by your standard car insurance plan. 

• Value of depreciation

Every vehicle undergoes certain amount depreciation in parts that are made of wood, metal, and fiberglass. Your car insurance plan takes this depreciation into consideration and deducts it before paying out your claim. This exclusion can weight pretty heavy on the pocket if you drive a luxury vehicle or a vehicle whose spare parts are noted for being expensive. 

So, now the we know what charges are not covered under a standard motor insurance plan, how does one tackle these costs?

The answer is simple – include add-ons in your car insurance policy!

Add-ons supplement your basic car insurance plan by helping you customize your coverage to fit your needs. Three of the most important add-ons that every motorist should consider opting for are:

• Consumables cover
• Engine protection cover
• Zero depreciation cover

These three add-ons will successfully help you get your insurance provider to pay for all the above-mentioned charges that are normally excluded under a basic car insurance plan. Now, you can head out for a drive, knowing your car insurance is truly comprehensive in every way. We hope this article will help you. 

Trying to save money when you have a family sounds like a nightmare. There are multiple people in your home, all of whom have different wants and needs, to consider. However, it is possible to not only lower your spending but also teach your children to care for the planet. Here are some tips that you should start following at home.

Repair What is Broken

Too many people nowadays choose to toss an item that is malfunctioning or broken and buy a new one. If it can be repaired, it will save you money and prevent another electronic item from ending up in a landfill.

Call a local appliance repairman if your air conditioner, refrigerator, washing machine, dryer, etc. stops working properly.

Your household appliances have a negative environmental impact. Unless you are using clean energy sources, these electronic devices get power from the grid, which emits tons of greenhouse gases to the atmosphere. The U.S. still mostly relies on energy sources that are not considered environmentally-friendly.

Moreover, your electronics use rare metals that need to be mined from the earth, which has numerous consequences, and only a small portion of electronics that are thrown away actually get recycled. Repairing what is broken, therefore, will save you money and save the plant.

Stop Buying Food and Beverages Outside

A sandwich will cost less if you make it at home from scratch versus buying it from a store. Your cup of coffee in the morning is way overpriced. Eating takeout instead of a packed lunch is preventing you from saving money at the end of the day.

These purchases might seem small, but they quickly add up. If you spend $5 for a latte, for example, every morning before work, at the end of the month, you would have spent $100 on coffee alone.

Making your food at home may require a lot of work, but it will save you so much money. A bag of beans does not cost much. Brewing your coffee at home is easy and quick, too.

For meals, you do not have to wake up extra early every day. Learn how to meal prep, a practice in which you create meals in advance, and then you put it in a refrigerator to be microwaved when it is time to eat. Some meal preppers spend an entire afternoon to cook meals that they would eat for the rest of the week.

Not only does making your food and beverages at home save you money, but you also cut unnecessary waste. Takeout usually comes with excessive plastic packaging, which you should have learned by now is bad for the environment. Even your to-go paper coffee cups are lined with plastic. Start bringing food whenever you go to work or school.

Buy Second-Hand

There are tons of items out there that are pre-loved but are still in great condition. You do not have to buy a new item every time you need or want something. You can go to thrift stores or use apps to find absolutely anything under the sun.

Thrifting, thankfully, has become not just acceptable but popular among young people. On YouTube or Instagram, you see social media celebrities wearing clothes they purchased from Salvation Army or Depop. Buying second hand is a source of pride because you save money and the environment at the same time!

These are only three tips that will save your family money and instill a love for the environment among your kids. Following these tips, hopefully, will change your lifestyle for the better.