Equity Linked Savings Scheme, widely popular among Indian investors as ELSS is the only mutual fund scheme that comes with a tax benefit. ELSS can be considered as a modern investment tool to save tax and earn capital appreciation over the long term. Earlier, the Indian investors had only conservative tax saving schemes to choose from. These conservative tax saving instruments came with a lengthy lock-in periods. Furthermore, the interest rates that these schemes offered was always on the low end. With such low fixed interest rates, one might fall short of achieving their life’s long term financial goals. But thanks to the introduction of ELSS, investors can now expect high capital appreciation. Also, ELSS comes with a short lock in period. ELSS fund investors cannot redeem or withdraw their funds for a minimum period of 36 months from the date of investments. That’s because ELSS comes with a predetermined lock in period of 3 years. Having said that, this is probably the shortest lock in as compared to other tax saving instruments.

In order to understand how ELSS works here’s an example:

Madhavi Mehta is a data scientist with a gross annual income of Rs. 12.75 lakhs. This lands Madhavi in the 30 percent tax slab. After learning from her HR that she needs to submit tax investment proof, Madhavi decides to invest Rs. 1.5 lakhs in ELSS fund. According to Section 80C of the Indian Income Tax Act, 1961 one can invest up to Rs. 1.5 lakhs in ELSS and claim tax deductions for the same. Thus, by investing in ELSS, Madhavi’s gross taxable income has come down to Rs. 11.25 lakhs. Thanks to ELSS, she was able to bring down her tax liability.

Things to consider before investing in ELSS. Are ELSS risk free?

ELSS is an equity oriented scheme which means the fund predominantly invests (minimum 80 percent) in company stocks and other equity related instruments. Thus, one can say the ELSS is a high risk portfolio carry mutual fund scheme. However, every scheme carries some amount of risk with also. Also, if you are investor with a short term investment horizon then you might be exposing your finances to market’s volatile nature. Mutual funds like equity funds tend to get affected by daily market fluctuations. However, over the long term these investments have shown positive outcome. If you invest in ELSS with a long term investment horizon, not only will you have to not worry about the market vagaries, but your investments might also succeed in overcoming inflation. 

However, before investing in this tax saver fund it is better that you determine your risk appetite. You can even consult a mutual fund expert or a financial advisor who might be able to help you determine whether you hold the appetite for risk for investing in ELSS. There are multiple ways to invest in ELSS. You can either make a onetime lumpsum investment or you can opt for a SIP. A lumpsum investment in ELSS is made by deciding an amount and investing this amount right at the beginning of the investment cycle. SIP (Systematic Investment Plan) on the other hand, gives investors an opportunity to make small investments at regular intervals.  Opting for a SIP in ELSS with a long term investment horizon can even reduce the overall risk of the investment. Every month on a fixed date, a predetermined amount will be debited from the investor’s savings account and electronically transferred to the ELSS fund. This allow minimum exposure to market risk as compared to lumpsum investment.

Although ELSS investments aren’t risk free, they do offer a tax benefit and capital appreciation over the long term.

India is a land of diverse culture and an abundance of natural beauty. The best way to explore this scenic beauty is on a bike. The gearing of wheels, soft strokes of wind and sound of nature, is all at once powerful and thrilling. But in excitement, it is you must not forget that Indian roads and traffic situation is not very ideal for bike riders. India accounts for more than 5 lakh road accidents annually, which is one of the highest in the world. While the government has pledged to reduce at least 50% accidents over the next five years, it is also critical that you render your cooperation in the matter.

Here are some tips to follow before riding in a bike in India:

1. Choose an appropriate bike: The most important thing to remember before you head on the road is to ride a bike that you can handle. Do not opt for a two-wheeler because of its large size, engine capacity, flamboyant design, etc. Instead, choose a vehicle that you can drive with ease. There are multiple good-looking bikes and scooters, which also offer great mileage and overall performance. So, ride a bike that suits your physical capacity and also fits in your budget.
2. Never forget a helmet: Traffic and driving rules exist for a reason. They are put in place to ensure your safety on the road. An important rule is to wear a helmet while driving a two-wheeler. Often people consider buying a helmet as an unnecessary expenditure and therefore, compromise on the quality to save some money. However, as a conscious citizen, you should invest in a good helmet that will work best to protect your head from any injury or damage. Ensure you buy a helmet with an ISI certification. The protective gear should cover your whole face, including the jaws, and should ideally have a plastic shield to prevent any disturbance while driving.
3. Be visible on the road: When you are driving on Indian roads, make yourself visible to other drivers, especially large cars, trucks, buses, etc. For this purpose, you can stick reflective bands on the back of your helmet, and in the front and back of your bike. You could also choose a bright colour helmet to gain attention. Especially while driving at night or under extreme weather conditions, you can ensure your blinkers and headlights are on when required. Try to avoid driving in the blind spot of large four-wheelers.
4. Avoid driving in bad weather: No matter how exciting the thought of a drive in the rain or fog is, it is best if you do not ride your bike in such extreme weather situations. These conditions can hamper your visibility and also make you less prominent on the road. This will further increase your chances of meeting an accident. In case of emergencies, you can wear bright helmets or keep the headlights turned on to make sure you are seen by other drivers.
5. Check the condition of your bike: If you are a bike lover, this will come very easy to you. But if you ride a bike for mere transportation, do not forget to keep a tab on the overall health of your two-wheeler. Analyse the air pressure in the tyres, brakes, clutch, headlights, etc. before you head out. Also, get your bike service regularly to keep it functioning properly and gain better mileage.
6. Follow all rules: Do not break traffic rules intentionally. Each regulation has a back-up logic. So, best to not break the rules when driving your bike. Avoid breaking traffic signals, or drive under the influence of alcohol or any other substance. Do not speed-drive or make rash efforts to overtake. Also, do not honk unnecessarily or ride without a licence. Check bike insurance and keep your pollution certifications, ID proof, vehicle registration, etc. handy.
7. Buy holistic two-wheeler insurance: Accidents and third-party damages can cause a dent in your pocket. Checking the bike insurance policy before you hit the road is a good idea. Two-wheeler insurance will protect you and your bike against any natural or man-made calamity, which might cause a financial loss. According to the Motor Vehicle Act, third-party insurance policy for a two-wheeler is mandatory in India. If your insurance expires, you can renew bike insurance online easily. But before you get bike insurance online, do compare different policies and make an informed decision.

Apart from these tips, here is some quick advice to assure your safety on the road:

• Avoid riding a bike or any other vehicle when you are angry, depressed, or experiencing any other emotion-high
• Prevent eating heavy food while driving to avoid falling asleep
• Always ride within speed-limits, irrespective of how empty the roads are or what time of the day it is
• Be cautious while driving on the road. Avoid listening to music or talking on the phone
• Do not ride a two-wheeler with more than one passenger
• Keep your bike at a safe distance from other vehicles
• Avoid getting distracted by horns, lights, street-side activities, etc.
• Refrain from applying smart-driving tricks like weaving in and out of extreme traffic
• Do not race or tease some other driver
• Avoid sharp turns or overtaking at junctions, railway or pedestrian crossings, etc.

Be a responsible driver, follow the rules, get reliable bike insurance online and drive with utmost safety. Life is precious. Be safe!

Almost everyone could benefit from using a financial planner, but costs can be prohibitive. There does come a time, however, when that cost becomes a smart investment in your own financial future. So, if you’re on the fence about hiring a financial planner, here are 3 of some of the best reasons why you should.

You’re Not the DIY Type

Many people detest managing their money and that’s completely acceptable. What’s important is that you realize how important your money management is. Having an expert who can take over your finances will create a very positive experience. A financial planner Orlando will hold you accountable, but handle everything and that will translate to a very successful financial future.

You’re Feeling Financially Lost

Planning your own financial future is hard. There are often multiple goals competing against limited resources. Without strong guidance and an expertly crafted road map, your financial future just looks like chaos. One of the quickest ways to quell that confusion is by hiring a financial planner. They’re immediate job is to come up with attainable goals, set up a long term strategy, and map out everything that you need to do to achieve your goals.

You See the Need for an Expert

There are definitely a lot of folks who enjoy managing their money and happen to be quite good at, but also hire a financial planner. Bringing on an impartial third party to help with the tough stuff, or to ensure you stay on the right track is a smart decision. They’re experts. They went to school for this. All they do is finance. So no matter how savvy you are, a financial planner will always have an edge. Why not use them to your advantage?

There are hundreds of reasons to hire a financial planner. It’s a lot about timing: where you are in your life versus where you want to go. If you’re unsure about the cost-benefits, or how a financial expert can help you, schedule a meeting with one, or multiple and see for yourself whether or not now is a good time to start using a financial planner.

If you are wondering what is term plan, we are here to guide you about it. A term plan is a type of life insurance policy. The premium that you pay to your insurer for this plan helps you secure your family’s financial future in case of your unfortunate absence. In such cases, the insurer is liable to pay the sum assured to your nominees. No one can predict the future; so, it is essential to do proper financial planning today to ensure a better tomorrow. 

When to invest in term insurance

If you plan to buy term insurance to secure your family’s financial needs when you are not around, you must purchase it at the earliest. The premium of your term policy will increase with age. Thus, it is advisable to buy such a plan when you are young to avail of higher coverage at a reasonable cost. 

Importance of term insurance 

Life is erratic and full of ambiguities; you never know what the future holds. If you are the sole breadwinner of the family, any untoward incident can disrupt the lives of your family members. Therefore, it becomes essential to invest in term insurance, as it is one of the efficient ways to secure your family’s financial stability. Also, term insurance provides you with substantial coverage at an economical premium. So, to ensure that your family does not have to go through financial distress in the future, you must buy a term policy now. 

The death benefit, which the family members will receive will help them pay your liabilities and meet financial goals like children’s education and their wedding. In a term plan, your nominee will receive the sum assured only if something untoward happens to you while the policy is active. Your nominee can receive the sum assured in the form of a lump-sum, monthly payouts, or lump-sum with monthly income, as decided by you during the time of purchasing the policy. 

Features of term insurance 

A term life insurance plan:

• Provides life cover against the risk of death until the policy expires
• Protects the financial future of the family from the probability of any unfortunate incident during the plan’s tenure
• Offers riders (add-ons) at a nominal rate to broaden the scope of coverage 
• Comes at an affordable premium for women and non-smokers 

Advantages of a term insurance plan

• Secures the financial stability of your family when you are not around 
• Provides high coverage at a reasonable premium
• Offers tax benefits on the premium paid as per Section 80C of  the Income Tax, 1961 
• Gives a tax-free death benefit under Section 10(10D) of the Income Tax Act, 1961

Who should purchase term insurance?

Anyone who is an adult and has a steady income flow can buy term insurance. However, you should purchase this plan without any delay if:

• You are the only earning family member 
• You wish to secure your family’s financial well-being when you are not around
• You are looking forward to starting a family
• Your parents and spouse are dependent on you
• You want to meet your children’s life goals, like higher education, in the future

To make sure that your family members do not have to face financial challenges in your absence, invest in term life insurance depending on their lifestyle and monetary objectives.

Additionally, while purchasing a term plan, consider the riders (add-ons) offered by the insurer. Add-ons like income benefit, critical illness benefit, premium-waiver benefit, and accident benefit, among others, widen the coverage of your plan at an additional but cost-effective rate. So, choose the appropriate add-ons as per your requirements. 

Do not waste even a single day in securing the financial well-being of your loved ones. Purchase a term plan immediately and heave a sigh of relief.

A personal loan is best suited for individuals looking for relatively small amounts to fund certain events that are often unexpected and require a quick supply of funds.  For instance, events such as a child’s school fee, a car loan, home renovation, a family holiday or unexpected medical emergency can require a personal loan. As salaried individuals are dependent on a fixed income every month, quarter or year, they may be financially unprepared for additional unexpected expenditures.

Eligibility

The personal loan eligibility varies from person to person based on a number of factors such as age, income, employment history as well as metrics such as current debt load and credit score. The specifics of personal loan eligibility criteria vary from lender to lender, however there are some general rules followed:

1. Age: An applicant looking to apply for a personal loan must be over the age of 21 at the time of applying, and the duration of the loan has to conclude before the applicant reaches 60 years of age.

2. Salary/Income: Any application seeking a personal loan must have a minimum monthly income of 10,000 rupees. This amount may vary based on the location of the applicant, as the metros tend to have higher salary requirements.

3. CIBIL Score: A good CIBIL, or Credit Information Bureau (India) Limited score (in other words a credit score) will exponentially increase the chances of the application being accepted.

Requirements

The specificities of the requirements will vary based on the lender, however, common requirements include residential as well as identification proof and a couple of passport photographs (may vary for online applications). Additionally, the applicant’s last/current salary slips alongside bank statements from 3 months prior or passbook records from the last 6 months are required to assess the financial health and therefore repayment ability of the applicant.

Most personal loans extend from a range of 12 months to 60 months. It  is worth noting that while the rate of interest for these loans are usually more of less the same, the interest is levied on the outstanding payment and not the principal amount, the due is reduced with each payment

Conclusion: How to apply?

The application process for a personal loan has been immensely simplified due to digitization of the industry. Any applicant eligible for a personal loan can simply fill out a form along with some basic documentation. All you need to do is check that you meet the personal loan eligibility criteria and begin your application.