Rules to effectively trade on the stock market

The stock market is a place where public listed companies trade their stocks or shares. The companies on stock market sell their shares to attract investment and lower their risk factor. Investing in stocks or shares can prove to be beneficial in the long run. It can act as a passive source of income where you don’t need to work but you will still earn money. In order to effectively trade on the stock market you need to know certain things or follow certain rules like:

Have a trading plan- The first and foremost thing to do when you enter a stock market is to create a trading plan and follow it religiously. A proper trading plan should have a written set of rules that contains a well defined entry, exit and risk management strategy.

Do proper research- It is absolutely necessary to perform a proper research before investing in the stock market. You should do a thorough study of the companies you want to invest in instead of just investing based on the name or reputation of the company. Now-a-days you can even use the research and analytical tools available in your trading account for this purpose.

Invest in business you understand- It is better if you invest in business that you understand. Investing in stocks of a company that you have a decent knowledge about is better as compared to investing in a company where you don’t know what business the company is in.

Don’t time the market- Attempting to time the market is something you must try to avoid at all costs. It is a very inconsistent method as it is not possible to successfully time the market over multiple stock market cycles. It can in fact, lead to heavy losses in the long run.

Control your emotions- In order to add more dividends or returns to your trading accounts you must have control over your emotions. In the stock market you need to take decisions with a clear mind. You must not let your emotions cloud your judgments.

Invest only surplus funds- Investing in stock market can be a risky business. So you should always invest only the surplus funds that you have. Investing more than you can afford to lose will result in high chances of you suffering loss in the long run.

Learn from your losses- In trading, loss is a certainty. You will be successful at times and at times you will face losses. But it is important that you must accept your loss and learn from it. Learning from your mistakes will broaden your perspective and help you make better decisions in the long run.

So, trading in stock market requires you to learn to do proper research and observe the trends in the market over time. You must be patient and level headed if you want to be successful at trading in the stock market. Proper plans, good decision making ability and learning from your mistakes are some of the key rules that can help you trade effectively on the stock market.

Tips To Help You Manage Your Personal Loan With Ease

Most of you reading this article have at some point of time or the other taken a personal loan from the bank for purposes such as- travel, wedding, medical emergency, renovation, education, etc. It is a great solution for those of you aiming to avail of instant cash. So once you have taken a personal loan India how do you manage it?

Read these tips to find out.

Here are some tips to help you manage your personal Loan with ease.

• Debt Snowball Method-Firstly, start off by listing all the outstanding debts that you have by prioritizing the smallest one at the top or the head and then the next bigger one and then the next. So, after you have made the list and you realize that you have more than one personal loan to pay back, opt for the ‘debt snowball’ approach- here the order of paying back your loans works from the smallest to the largest one. This method helps you lessen the burden of repaying loans. However, some people consider this method to be a more long-drawn affair as opposed to the ‘debt avalanche’ approach.

• Debt Avalanche Method- The ‘debt avalanche’ approach works in a similar fashion but with few minor differences here and there. While you do begin by making a list but you order them not by their balance but by their interest rate. So in the debt avalanche method you go from the debts with the highest interest rate to the ones with the lowest. Number of people think this method to be money saving and in certain cases even faster.

• Ensure To Save- Most of the time people get so caught up in the thought of repaying back their loan that they forget to concentrate on their savings. Giving attention to one financial aspect shouldn’t mean that you completely neglect the others. Do not forget to invest in your retirement savings even while you are engrossed in managing your debts.

• A Little Disciple Goes A Long Way- Prioritize your financial liabilities and be disciplined about paying back your debts on time. If you make it a habit about paying them back your bills late and at random times you may have to face the problem of an escalation in rates. At this time do whatever it takes to keep your additional expenses low. By repaying back your debts on time every month you will avoid any chance of missing payments.

• The Right Bank- When considering taking a personal loan India choosing the right bank is extremely important. When you are selecting your bank keep certain criteria in mind such as- the reputation of the bank, their interest rates, their reliability and the refunding options. Keeping these things in mind will eventually help you to manage your personal loan with ease when you are trying to pay it back.

What can you expect from a cut in the repo rate for home loan interest rates?

A Home Loan at low interest rates is an idea that would definitely appeal to you. It is possible for you to enjoy the benefits of minimal home loan interest rates if you are aware of repo rates. By definition, a repo rate is the rate at which commercial banks borrow from the central bank. A cut in this repo rate would mean significant benefits if you are looking to take a home loan. You can expect the following things from a cut in the repo rate for home loan interest rates:

• More funds for banks- Repo rate is the interest rate that the central bank charges commercial banks for lending funds. When there is a cut in this rate, commercial banks will find it preferable to borrow more from the central bank. This in turn will allow the banks to increase their credit creation market, that is, to give out more loans to their customers.
• Reduced EMI for home loans- With a cut in repo rate banks usually pass on the benefits of lower interest rates to the consumers. They do this by giving their customers cheaper loans. In case of big ticket loans like home loans this will mean reduction in EMI.
• Reduced cost of credit- A cut in the repo rate also means that the banks are most likely to provide more number of big ticket loans to their customers. This will be beneficial for you as it will result in reduced cost of credit for home loans.
• Option of switch over to MCLR rate regime- For base rate borrowers, that is, those who have borrowed from banks at the lowest available rates, a cut in repo rate can provide added benefits. It gives them the option to switch over to MCLR (marginal cost of fund based lending rate) rate regime. MCLR rate regime offers the customer an option to reset the interest rate once every year. In this way they can take advantage of lower home loan interest rates.

So a cut in the repo rate, that is, the interest rate decided by the central bank for lending funds to the commercial banks, will provide the commercial banks with an initiative to borrow more from the central bank. Subsequently it will allow the banks to expand their credit creation market. This in turn will lead to the banks providing home loans to their customers at reduced cost of credit and will also bring forth a reduction in EMI for home loans in case of new customers. So if you are looking to take up a home loan or you already have one, keeping an eye on the current repo rate scenario may prove beneficial for you.

Reasons Why Should You Invest In Multiple Recurring Deposits

Have you ever wondered how nice it would be if you could have enough money to buy the thing you always wanted? For example if it’s that new phone you were craving to buy for a long time now or that leather jacket that so you were dying to buy for years now. All this can be possible if you take small steps in the present. Invest in multiple recurring deposit accounts today to reap the fruits of your labour in the future. And if you are still not wholly convinced why, read on to find out.

Here are some reasons why you should invest your money in Multiple Recurring Deposits.

• Completely Risk-Free- Investing in multiple recurring deposit accounts is a risk-free affair and there are assured returns on your invested amount. It is an extremely useful option if you have short-term goals in mind. As opposed to probably a fixed deposit where you would have to deposit a lump sum amount at the time of opening the account and leave it untouched for that stipulated period of time.

• Baby Steps- Some banks give you the benefit of investing in amounts as small as rupees 100. So if you are someone with a low income right now or someone who is at an entry level/fresher you can also invest in a recurring deposit.

• Your Finger In Many Pies- If you have multiple goals in mind such as your child’s school/ college tuition fees, your home loan, buying a new phone or saving up money for your daughter’s/son’s wedding, then multiple recurring deposit accounts would save you the hassle of keeping aside money for such various plans. The minimum duration of investment in majority of banks is one year.

• Enjoy Hassle Free Deposit- Many banks save you the trouble of investing in money manually. If you have a set amount you want to set aside every month for different goals then the concerned bank (giving you this benefit) will subtract this money from your monthly credited amount. So you do not have to stress about it or keep track yourself.

• Seniority Matters- The interest rates for recurring deposit account is determined by different banks based on the amount you decide to invest every month and the tenure of investment. Numerous banks offer senior citizens special benefits and rates. Senior people should opt for banks that have this feature to avail at best rates for their investments.

So, you see, whether you are starting out new in the world of employment or are a retired person or senior citizen the world of recurring deposits offers you numerous benefits to avail and enjoy. So be wise and invest your finances in multiple deposits today.

How to manage your bike insurance premiums with these tips

In India motorcycles and scooters are a popular mode of private transport, primarily because they are more fuel efficient and are easy to maintain as compared to a car. Moreover, bikes are easier to navigate on Indian roads and streets. As per the Indian law, a motorcycle has to be insured. While insurance prices are constantly on the rise, one needs to choose carefully so as to get the most out of his bike insurance.

Here are a few ways through which one can effectively manage their bike insurance premiums-

Try to maintain a clean record

You are more likely to avail a good premium deal if you are a safe driver. Thus, if one does not have a history of road accidents and has a clean slate when it comes to rash riding, they can avail a much lower premium for the insurance coverage.

Make a wise choice when purchasing a bike

This is a very important factor to consider when it comes to managing bike insurance premiums. If the bike that one purchases is very expensive and has a hi-tech engine and over the top features compared to the present market standards, the premium on the bike insurance will also be quite high. If a good but standard bike is purchased instead, its premium will be comparatively lower and more managble.

Make yearly premium payments

Pay the premium amount on a yearly basis rather than monthly basis. This way one may pay less on the total amount. A number of insurers reduce the premium amount if it is paid all at once.

Become a part of a riding association

Almost all bike insurers offer a small discount to members of a riding or Automobile Association.

Take proper security measure

Make sure that the bike is secure against any vandalism or damage. Insurers lower the premium payment in case of bikes that are equipped with effective safety measures.

Try not to claim insurance for small damages

Avoid claiming insurance in case of a small scratch or a mere dent. Get it fixed and pay for it yourself. This way one can enjoy a no-claim discount at the end of the year. If one does claim insurance for a tiny damage, he will not get a no-claim bonus for that year.

Opt for package deals

Insurers prefer that their customers opt for multiple policies. Thus, if one already has home insurance say with insurer A, opt for a bike insurance with him as well. He may offer a discount on the premium.

Why using the NEFT service will benefit you for fast transfers

National electronic funds transfer (NEFT) is a popular method of transferring funds online all across the country. Through this system of payment an individual can transfer a sum of money from one bank to another individual who has an account in another bank under the same scheme.

All one needs in order to do an NEFT is- internet connection and a net banking account. Banks generally charge a very small amount during an NEFT, but even so it is still a comparatively cheaper option than a RTGS transfer (Real Time Gross Settlement).

The charge for a NEFT transaction generally differs from one bank to another. But a bank cannot charge more than 30Rs for transactions up to 2-5 lakhs and more than 55Rs for transactions higher than 5 lakhs.

How is NEFT done and who can avail this service?

While a NEFT transfer can be quite conveniently done via internet banking, one may also initiate a transfer through the branch directly.

If one has a savings account or a current account at a bank, they can avail the NEFT service. Any sum of money can be transferred through NEFT, but there are some banks that do have a limit.

Those who do not have an account are also allowed to make a cash deposit at any bank that allows NEFT. But in this case only a certain amount and not above that may be transferred.

Speed of transaction through NEFT

Although NEFT is quite a convenient way to transfer money, earlier the transaction process did take some time to complete. This is why many individuals opted for other transfer methods in case of an emergency transaction.

But this year, the Reserve Bank of India (RBI) is all set to make this transaction system faster and better. Fund transfers will now be done in half hour intervals. Before they were undertaken every hour.

The settlement cycle has now been increased to 23. Previously it was 12. When one makes a bank transaction, a clearance request is forwarded to the RBI, and the RBI processes it in the following settlement cycle. Therefore, as the cycles will increase this will facilitate faster transfers.

The settlement time will being at 8 am in the morning and end about 7 pm in the evening. With the introduction of 11 more settlement batches, the RBI strives to make customer service more efficient and increase the speed of the entire NEFT process.

One should thus opt for NEFT, in order to carry out transactions and payments. With the new updates that RBI is brining into play, a NEFT transaction well be quite fast and efficient.

GST Payment: Myths busted

The last couple of years have brought in great economic changes into the country, with demonetization during the end of 2016, and GST taking over 2017. With the launch of the good and services tax (GST) this year, a lot of discussions are being done on the extent of its effectiveness, and if this will be a simpler form of taxation system in comparison to the previous one. This has led to the rise innumerable rumours about goods and service tax payment.

Here are some popular myths about GST, and the actual truth behind them-

1. One system of tax for the entire nation- This is definitely a myth!
While this was the initial idea of GST, at the time of it launch certain products like petrol, diesel and liquor were exempted from GST payment. Which is why petrol prices are still high in some states of the country while comparatively lower in other states.

2. Small business will face difficulties- No True!
Many were of the opinion that small business men will go through tough times with the launch of GST payment, primarily because they will have to switch to computerised billing. This is not true as manual billing is allowed under GST. Internet connection is only essential when the monthly return has to be filed. This can be easily done from a cyber-centre.

3. GST is the only direct form of tax, no other tax will be in place- This belief has proved to be a complete myth!
Primarily because GST is only charged instead of central and state taxes. Local body taxes are not included under GST payment. For example, the government of Tamil Nadu has permitted its local bodies to take a 30% tax on film tickets, excluding tax that needs to be given as GST, making movie tickets extremely expensive. This led to a strike in the state, which was called by cinema hall owners who were obviously not happy with this decision.

4. Prices will rise, creating inflation- This has also proved to be a myth!
While the government may have increased the tax rate on some goods, taxes have also been lowered in case of many consumer good items. Moreover, earlier there were a number of hidden taxes that one did not see in their bill. With the launch of GST, the full tax is now visible to the consumer. For instance, the prices of any chicken dish in Kerala should fall considerably, because earlier about 14.5% tax was charged on live chicken in the state, but now there is 0 tax on the same.