Starting A New Business? Here Is What You Must Do

Thinking of starting a new startup or a business, there are certain things that you must do to ensure it will run successfully in the upcoming future. This article will help you to make sure that you don’t miss out on the necessary things, so make sure you read the article till the end. The initial step is to opt for SME insurance just to safeguard your business. Then, there are further things to take care of. So, make sure you’re having SME insurance while starting a new business.

Here is the list of things that you shouldn’t miss out on at any cost while starting a business.

1. Perform market research

Market research will inform you if there is a chance to develop your idea into a profitable business. It’s a method of gathering information about possible consumers and businesses that currently exist in your neighbourhood. Use the data to get a competitive edge for your company. Recognize the investment of time and potential challenges in setting up a business. Starting a business requires a significant investment. Entrepreneurs sometimes underestimate the enormous amount of time, resources, and energy required to launch and build a firm.

2. Make a business strategy

Your company strategy serves as its basis. It is a road map for structuring, running, and growing your new firm. You’ll use it to persuade others that partnering with a business or investing in your firm is a wise decision.

3. Funding for your company

Your business plan will assist you in determining how much money you will require to launch your venture. If you don’t have that amount on hand, you’ll have to raise or borrow the money. Nevertheless, there are more options than ever before for obtaining the financing you want. Always look for some SME insurance products to safeguard your future.

4. Register your company

When you’ve decided on the ideal business name, it’s time to make it official and safeguard your brand. If you operate a business under a name other than your own, you must register with both the federal government and, maybe, your state government as well.

Throughout most cases, one might want to get a tax ID from either the IRS for your business. It’s also referred to as an “Employer Identification Number” (EIN), and it functions similarly to a Social Security number, but only for companies. When you create a corporate bank account, banks will ask for your EIN. You may obtain an EIN by visiting the IRS website.

5. Make an application for licences and permissions

Be fully enforceable to keep your business functioning smoothly. The licences and permissions required for your firm will differ depending on the industry, state, location, and other considerations.

5 Tips to Maximise your Fixed Deposits

 

Fixed Deposits or term deposits as they are commonly called are certainly the most widely used investment tools and one of the safest too.  Investors are constantly on the lookout for the best FD interest rates available for long and short-term investments. The profitability of fixed deposit investments does not solely depend on the availability of the best FD rates, however. A lot also depends on how you plan your schemes and where you invest. Let us take a quick look at some simple ways to maximise your FD returns.

Also, Read – How To Avoid EMI Defaults

Making FDs more Profitable: Right Planning goes a Long Way

1. Focussing on Yields is Important: We are always checking on the best FD interest rates available before investing. It is also essential to focus on yields. Some schemes provide compounding of interests on yearly basis. Others compound quarterly. The latter will provide better yields. Keeping an eye on yields before picking a fixed deposit scheme is the right way forward.
2. FDs Floated by Housing Finance Companies are Better: There are a few housing finance companies that provide fixed deposit schemes offering comparatively higher rates of interest than the market. Start with those offering the best FD interest rates. Check for impressive safety ratings from CRISIL, CARE, and ICRA rating for safe investing guaranteeing peace of mind. Look for benefits like flexible tenure options, easy withdrawals, and convenient payment schedules. You can check on ICICI HFC FD interest rates Calculator, to start with. Most of the above-mentioned conveniences are likely to be on offer too.
3. Choose to Invest in Multiple Schemes: Instead of putting all your money in a single fixed deposit, choose to break it down into multiple schemes. You can keep multiple deposits with the same finance company for ease of operation. However, choose schemes with best FD rates and varied maturity tenures for sustained liquidity. You can also make a mix of cumulative and non-cumulative schemes for maximizing gains while maintaining a steady cash flow. While non-cumulative schemes provide periodic pay-outs, cumulative deposits are ideal for wealth creation.
4. Opt for a loan against your Deposit for Catering to Short Term Contingencies: If you have a pressing need for money, it is best to apply for a loan against your fixed deposit scheme instead of making a premature withdrawal. Untimely withdrawals attract penalties and also reduce the interest rate payable. Loans are better deals. There are finance companies that support the easy processing of loans against fixed deposits. As much as 75% of the total invested amount can be claimed as a loan. Interest is payable on only the amount that has been utilised and for the number of days, it has been utilised.
5. Submission of Form 15G/15H: If the interest earned on the fixed deposit scheme is above a certain specified limit, there will be tax deducted at the source. You need to submit form 15G or 15 H to avoid this deduction. 15H is meant for senior citizens.

You can also try ladder investment strategies for maximizing gains on FDs. Preferring longer tenures as opposed to shorter ones for your FDs also guarantees better returns.

 Also, Read – Step By Step Online Registration for eNach

How to Invest in Mutual Funds in a Disciplined Way Via SIP?

 

Mutual funds offer investors looking to invest in equities but not having the time or the expertise to do research, an excellent investment option. These professionally manged funds invest in stocks and other instruments based on the investment goals and objectives set out by their asset management companies. Investments in mutual funds can be done in two ways- by investing a lump sum amount or choosing the SIP route. Let us find out What is  SIP and Why should you go for it?

What is a SIP?

 SIP or Systematic Investment Plan is a method of mutual fund investing wherein an investor agrees to contribute a fixed amount every month or quarter or half-yearly for a pre-decided period. An excellent way to inculcate disciplined investing, the SIP option encourages investors to keep aside the committed amount for investment in a mutual fund. This option provides investors a chance to earn good returns by investing continuously and benefiting from rupee cost averaging. Investors can use a SIP calculator to identify which SIP is suitable for them and matches their investment and risk profile.

How Does a SIP Investment Make You Disciplined?

When you decided to invest in mutual funds in India via the SIP route, you commit to putting in a specific amount. And to fulfil this commitment before the due date you have to be disciplined in your spending to keep aside the SIP amount. You can even link your SIP to your bank account and give your bank instructions to transfer a specific amount on the due dates. This saves you the hassle of worrying about your expenses and struggling to save. This way you start spending after keeping aside the SIP amount.

And in case you find it difficult to commit large amounts for mutual fund investments, you can start a SIP with as low as Rs 500 or Rs 1000 varying from one scheme to another. This low initial investment encourages a lot of investors to start saving early and investing in SIP for long-term returns. Some other benefits of choosing the SIP option of investing in mutual funds are:

• SIP Offers the Benefit of Rupee Cost Averaging

A major advantage of choosing the SIP option of investing in mutual funds is that you do not have to worry about timing the market in your aim to earn good returns. By committing a fixed amount, you tend to buy lesser units when the stock prices are high and more units when the prices are low. This means that you buy units during the different cycles of the market and thereby benefiting from rupee cost averaging.

• Compounding Benefit is Also Available

When you invest via SIP, the monthly returns generated on your investments are reinvested till maturity and provide you with the benefits of compounding.

• Stop Your SIP or Start a New One Anytime

Most mutual funds allow you to stop your SIP investments anytime you want or feel that you are not able to invest the committed amount. Similarly, if your income increases or you have another source of regular income you can start a new SIP and expand and diversify your investment portfolio. This option to start a new SIP anytime encourages you to use your enhanced income to make fresh investments and work to achieve your long-term goals.

Now that you are clear about What is SIP, you can choose to invest in one or more mutual funds based on your investment goals. It helps you become more disciplined in the way you spend and save. The option also offers you the advantages of rupee cost averaging and compounding thereby offering you good returns over the long term.

5 Tips to Avoid Getting Rejected by a Home Loan Company

 

 

For millions of Indians, owning a home is a lifelong ambition. However, real estate prices are increasing across the country, making it necessary to arrange for a home loan. However, extensive research and submission of required documents may fall short of getting their loan application approved for loan applicants. Before granting a loan, banks check essential criteria such as home loan ke liye documents, a good credit score, and a stable income flow to evaluate applicants.

If you are concerned about your home loan eligibility, follow the tips given below to avoid being denied a loan.

Tips for Getting a Home Loan

The following suggestions can assist you in getting a house loan secured quickly.

• Pay higher down payment

The first step an applicant can do to get his loan application approved is to make a higher down payment on the property. Even though banks can lend 80-85 per cent of the property's value as a loan amount, it is better to prepare for a higher down payment. This improves your credibility and gives them the confidence to lend, and your loan application is more likely to be approved because you have less debt.

• Apply for home loan subsidy

First-time buyers under the LIG/MIG category can check for home loan subsidy eligibility under the PMAY scheme. Qualifying under the scheme ensures you need to borrow less from the bank. This further benefits you as your repayment capacity is reviewed favourably by the potential lender allowing you to get the loan approved.

• Improve your credit score

Before issuing loans, lending institutions check the loan applicant's credit score. Those with excellent scores are often preferred. You can raise your score by taking the following steps.

• Clear all your debts before applying for a home loan.
• Paying all your credit card dues on time without fail is essential.
• You should not apply for multiple loans from different institutions as it harms your credit history.
• It would help if you did not switch jobs frequently. To qualify for a house loan, you must have a consistent and stable source of income. If you have a job, submit all essential documents for home loan eligibility for the salaried person.
  

• Apply for a joint loan

Applying for a joint home loan is another effective way to get your loan application accepted. You can file with any working family member in your family (spouse, father). This increases your chances of securing a loan. Sometimes, the applicant is over the age of 50. Banks are hesitant to lend to such applicants; in this instance, requesting a joint loan with your working son or daughter is a wise option.

Furthermore, certain institutions provide females with loan interest rate subsidies, which you can take advantage of if you apply for a joint loan with your wife.

• Apply for a long tenure

If you are new to the job and have a low starting salary, it is best to apply for a loan with a more extended repayment period. This decreases your EMI cost while also assuring the potential lender of your repayment capacity. In addition, the affordable EMI ensures that you are in the low-risk category, and your chances of obtaining a loan improve.

In addition to the suggestions mentioned above, it is critical to submitting all relevant home loan ke liye documents as requested by the lender. This will ensure that your home loan application gets cleared without issue.

Planning your financial growth with mutual funds

 

Mutual funds are investment vehicles that are created from a wide range of funds accumulated from various investors to put money in securities such as stocks, money market instruments, bonds, and other assets. Mutual funds are the easiest way to invest in the market. They offer a variety of investment options and risk levels which can be tailored to suit your needs. That is the reason why online mutual funds are popular among investors.

Mutual funds are a type of investment that pools the money from many individuals and invests in different stocks, bonds, or other securities. Mutual funds provide a way for individual investors to diversify their investments by spreading their money over many different types of securities. The most crucial thing about mutual funds is that they are managed by professionals who make decisions about what to buy and sell without the investor having to do any work. Investors can choose between actively managed funds which require more work on behalf of the investor, or passively managed funds which typically have lower costs and require less effort on behalf of the investor. So, if you are planning to grow your money and if you have a lot of patience, then a mutual fund is the best bet for you.  

How can Mutual Funds Help You Grow?

Mutual funds are an excellent way to grow your money because they offer professional management. Professional management is one of the advantages of mutual funds, as your money is invested and governed by professionals who have years of experience with them. 

They also provide low-cost investments to you. If you have any experience in trading and investing, you may already know that investment is a high-cost affair, as there are multiple types of charges, but that is not the case with mutual funds. Mutual funds are an extremely low-cost affair, and you don't have to worry about giving money as charges. 

They provide diversification with just one investment. When you invest in a mutual fund scheme, your portfolio becomes diverse because every mutual fund scheme consists of various companies that belong to various sectors. So, even if the market is going down for a certain sector, you don't have to worry about the losses because you have other sectors in your portfolio. 

Conclusion 

Mutual funds have been around for a long time, and they have proven to be a reliable investment vehicle. In the past decade, mutual fund investors have outperformed the market average nearly every year. So, it is no exaggeration to say that mutual funds can help you grow your money without breaking a sweat. All it takes is a little bit of patience and trust from your side. If you have some patience, then you will see your money increasing at a steady pace, and in no time, it will multiply itself.

How to Support Your Child's Education During the Pandemic

 

Rising education costs has always been a factor to consider to plan for your child's future. Moreover, due to the pandemic, children are increasingly exposed to online mediums for learning purposes. Due to this, their digital privacy, security and protection are also important now. That being said, here's how to support your little one's education now.

Estimate How Much You Need to Save

Start with setting a rough target amount that you need to save for your kid's education. For that, consider looking at the current figures of school/tuition fees and adjusting it over the years for inflation. Otherwise, you can simply use a child education calculator to forecast future expenses.

Education costs can vary for every child. It depends on the particular course that interests him/her in future. Process courses and private colleges are costly, and overseas education is more expensive. Considering these factors too, it's better to have a higher estimate of overall costs.

Start Investing

Mutual fund investment can be a good way to save for your child's education. As it's a long-term goal, you can consider investing in equity funds. Although they're high-risk funds, they can generate higher returns for long-term goals.

You can use a financial planning calculator in India on an asset management company's website to estimate the amount to be saved. Then if you don't wish to make a one-time lump sum investment, you can invest a small amount in a Systematic Investment Plan at regular intervals (like weekly, monthly, quarterly, etc.). SIP can help grow your returns with the power of compounding. Plus it can reduce your per-unit cost of investment to beat inflation in the long run. 

Cut Unnecessary Expenses and Improve Savings

Only mutual fund investments may not be enough to save adequately for your child's future. After checking the target amount of savings on a child education calculator, assess your budgeting and saving goals accordingly. See if you need to prune any variable expenses like entertainment costs.

Also, up your savings to ensure that the returns you get from a fund dedicated to your child's education plan aren't compromised for any other long-term goals like retirement. You can use a financial planning calculator in India for that as well. 

Keep Reviewing Your Investments

Keep checking your savings target using the child education calculator since the results are constantly subject to inflation. If you need to step up your mutual fund investments via SIP, you can do that by a specific percentage annually. 

Protect Your Kid Online

Finances aren't the only thing to consider when supporting children's education now. Since recently the medium of providing education has become mostly digital, ensure to protect your children online. Consider using parental controls on their devices to ward off online risks, especially for younger kids.

Educate them about appropriate online behaviour on platforms like video calls. If you identify any inappropriate online content or cyberbullying, report to the school or any other local support helplines right away.

Also, remember that kids need not share personal information to access digital learning.

Just follow these steps to support your kid's education effectively during the pandemic.