INVEST IN PMVVY

Hey people

Today I would like to tell you about the importance of the investment in Pradhan Mantri Vaya Vandana Yojana(PMVVY). The scheme is mainly useful to senior citizens above age 6o, in this schemes,, they will get a high rate returns, assured interest rate is 7.4% per annum. The PMVVY  provide a pension income payable to senior citizens for monthly, quarterly, half-yearly, and yearly. the scheme provides a minimum pension amount is Rs 1000 and the maximum pension amount is 9250 per month.

Minimum and Maximum rates under PMVVY scheme:

The maximum amount of investment is 1500000. The tenure of the scheme is 10 years. The scheme is available till March 31, 2023. At maturity, the investment amount is repaid to the senior citizen. In the event of the death of a senior citizen, the money will be paid to the nominee. this scheme is highly preferable to senior citizens.

How to invest: This scheme is offered only by LIC for senior citizens (age 60 years and above). Those who want to invest in the scheme can do so online via the LIC website licIndia.in. You can also purchase the scheme offline by visiting the nearest LIC office

Pension payout: PMVVY gives a guaranteed payout of pension at a specified rate for 10 years. It also offers a death benefit in the form of a return of purchase price to the nominee.

If the pensioner lives through the policy term, that is, till 10 years, then he/she will get the purchase price and the final pension installment. However, on the death of the pensioner during the policy term, the purchase price is refunded and is payable to the nominee or the legal heirs.

INVEST IN SHARES

Hey people 

Today I would like to tell you about the importance of investment in shares. Shares mean when the company needs a more investment then the company divides the required amount into small parts and issued to the public, the small parts are called shares. A share stands as a unit of possession in a corporation or financial asset. Each share signifies a proportionate stake in the equity of a company. You can select from buying large or small shares to match the amount of money you want to invest. A company's share price can accelerate or decrease as a result of its own performance or market conditions.

There are mainly two types of shares:

Equity shares or ordinary shares:

Ordinary shares carry no exceptional or preferred rights. Ordinary shareholders are entitled to share in the earnings of the company.  They can vote at the company’s general meeting as well as other official meetings. They are also eligible to participate in any dividends or any distribution of assets on winding up of the company.

Preference shares:

Preference shareholders usually get a significance or 'priority' over ordinary shareholders in terms of payments of dividends or on winding up of the company. There are varying degrees of preference shares having different rights and characteristics. Holders of preference shares are entitled to having a fixed periodic income and have restricted voting rights liable to particular circumstances or particular resolutions; however, this is strictly dependent on the terms of the shares.

Benefits of investing in shares:

 Capital Growth

Selling a share for more than you paid for it is known as Capital Gain. This occurs when an individual experiences significant rise in share prices and is one of the long term objectives of investing in shares.

Dividends

Dividend is a cash reward given out to shareholders as part of the profit made by the company at the end of each financial year. The larger the units of the shareholdings one possesses, the more money one receives.

Liquidity

By nature, shares that are listed are a very liquid product and can be bought and sold quickly over an exchange platform. No hassle of involving a broker or transferee and at a relatively low cost as compared to other financial products. Trading on an exchange also allows one to sell part of the share parcels other than redeeming the whole lot.

Shareholder Benefits

Some listed shareholder companies from different market sectors including entertainment, retail, hospitality and financial services offer lavish discounts to shareholders when they buy goods or services from the companies or their affiliates. However in most scenarios, lots of shares need to be owned to qualify for such benefits.

MUTUAL FUNDS INVESTMENTS

Hey people

Today I would like to tell you about mutual funds. A mutual fund is formed when an asset management company (AMC) pools investments from various individual and institutional investors with common investment objectives. A fund manager professionally manages the pooled investment by strategically investing in capital assets to generate maximum returns for the investors. Fund managers are professionals in the field of finance with an excellent track record of managing investments and have an in-depth understanding of markets.

Types of mutual funds:

Equity Funds:

Equity funds primarily invest in stocks, and hence go by the name of stock funds as well. They invest the money pooled in from various investors from diverse backgrounds into shares/stocks of different companies. The gains and losses associated with these funds depend solely on how the invested shares perform (price-hikes or price-drops) in the stock market. Also, equity funds have the potential to generate significant returns over a period. Hence, the risk associated with these funds also tends to be comparatively higher.

Debt Funds:

Debt funds invest primarily in fixed-income securities such as bonds, securities and treasury bills. They invest in various fixed income instruments such as Fixed Maturity Plans (FMPs), Gilt Funds, Liquid Funds, Short-Term Plans, Long-Term Bonds and Monthly Income Plans, among others. Since the investments come with a fixed interest rate and maturity date, it can be a great option for passive investors looking for regular income (interest and capital appreciation) with minimal risks.

Hybrid Funds:

As the name suggests, hybrid funds (Balanced Funds) is an optimum mix of bonds and stocks, thereby bridging the gap between equity funds and debt funds. The ratio can either be variable or fixed. In short, it takes the best of two mutual funds by distributing, say, 60% of assets in stocks and the rest in bonds or vice versa. Hybrid funds are suitable for investors looking to take more risks for ‘debt plus returns’ benefit rather than sticking to lower but steady income schemes.

Very Low-Risk Funds:

Liquid funds and ultra-short-term funds (one month to one year) are known for its low risk, and understandably their returns are also low (6% at best). Investors choose this to fulfil their short-term financial goals and to keep their money safe through these funds.

Low-Risk Funds:

In the event of rupee depreciation or unexpected national crisis, investors are unsure about investing in riskier funds. In such cases, fund managers recommend putting money in either one or a combination of liquid, ultra short-term or arbitrage funds. Returns could be 6-8%, but the investors are free to switch when valuations become more stable.

 Medium-risk Funds;

Here, the risk factor is of medium level as the fund manager invests a portion in debt and the rest in equity funds. The NAV is not that volatile, and the average returns could be 9-12%.

High-Risk Funds:

Suitable for investors with no risk aversion and aiming for huge returns in the form of interest and dividends, high-risk mutual funds need active fund management. Regular performance reviews are mandatory as they are susceptible to market volatility. You can expect 15% returns, though most high-risk funds generally provide up to 20% returns I explained only some important mutual funds investments.

INVESTMENT OPTIONS

Hey people 

Today I would like to tell about good investment plans, now we see what is an investment? In today’s world, earning money may not be enough to fulfill your financial goals and take your dreams towards fruition. Instead of letting your hard-earned money lie idle in your bank accounts, you may consider investing in investment options such as stocks, equities, mutual funds, Fixed Deposit, or more.

Investments are three types they are:

Low-risk investments: Low-risk investments are not linked to the stock market movements and are usually governed by the interest rate movements of the financiers. However, there is always the returns are always guaranteed.Government bonds and life insurance policies provide good returns, however, they have long lock-in periods. So, you will have to wait for a long time to earn substantial returns from these investment options. Fixed Deposit is one of the very few low-risk investments that offer stable, high returns and immediate liquidit.

Medium risk investments:These are investments which might have a certain percentage of risk but these also pay higher returns to investors willing to invest in them. Debt funds, balanced mutual funds, and index funds fall in this category. Such instruments do have an element of debt and stability, but they have their volatility linked to the markets which can hamper your principal amount. The irregularity in earnings can make any fixed income from such investment impossible

High risk investment:These are investments where there is no limit to the upside along with the downside of risk-returns. These are stocks of companies, equity mutual funds, even stocks, and derivatives. The return on these instruments can give huge returns as well as chances of losses depending on various external factors to the company and internal ones. The quantity and timing of returns on these instruments are not fixed. Hence, they are at high risk

Different investment options:

• Direct equity
• Equity mutual funds
• Debt mutual funds
• National pension system(NPS)
• Public Provident fund(ppf)
• Bank fixed deposit(FD)
• Senior citizens saving scheme
• Pradhana mantri Avaya bandana yojana
• Real estate
• Gold

What you should do

Some of the above investments are fixed-income while others are financial market-linked. Both fixed-income and market-linked investments have a role to play in the process of wealth creation. Market-linked investments offer the potential of high returns but also carry high risks. Fixed income investments help in preserving the accumulated wealth so as to meet the desired goal. For long-term goals, it is important to make the best use of both worlds. Have a judicious mix of investments keeping risk, taxation and time horizon in mind.

TIME IS MORE VALUABLE

Hey people 

Today I would like to tell a story about the importance of time. 

This is the story of a lazy man who was a friend of a king. One morning, the lazy man asked the king

“why everyone says that I can’t do anything? and even when I go to get a proper job, everyone refuses me. My enemies have told everyone that I never do any work on time.“

The king said,

“Let’s make a deal. before sunset, you come to my treasury and collect as much gold and pearls as you can. They will all be yours.“

The man rushed towards his home to his wife. He explained everything and then after hearing the husband, the wife said, “Go and get the gold and gems now. Time is gold for you”

The lazy man sat down and said, “I can’t go now, give me lunch first.”

after having lunch, he decided to take a nap but instead, slept for 2 hours. Then, late in the afternoon, he picked a few bags and went towards the king’s treasury. On the way, he felt hot. So, he sat down under a tree to rest and ended up sleeping for another 5 hours.

When he finally reached the palace it was already late in the evening, it was the time for sunset. Therefore, the palace gates had been shut before he could reach there.

He lost the golden chance to get rich just because, he didn’t know the value of the time.

Moral of the Story:

Time is precious. Spend it wisely and stop wasting time on unimportant things.

so don't waste time in lockdown, it leads to problems in the future.

MONEY MANAGEMENT

Hey people

Today I would like to tell you about money management, Money management is the process of expense tracking, investing, budgeting, banking, and evaluating taxes of one's money which is also called investment management. Money management is a strategic technique to make money yield the highest interest-output value for any amount spent.

Eliminate unnecessary costs: make a list of your current bills and their due dates, and pay your bills on time to avoid late fees and penalty charges.

Use online banking to: Set up payment reminders, Schedule future bill payments , and Review your spending.

Set clear goals to help accelerate your savings: write down all the things you’re saving for, then work out how much you need to set aside each month to reach your goals in the timeframe you want then “pay” yourself this amount each month as if it is another bill.

Stick to the Plan: Once you pick a plan, give it a try for at least a month. You need that long to see if it works for you. Anything less, and you won’t see the benefit of keeping an eye on your finances.

Track Your Spending: Small purchases here and there add up quickly, and before you know it, you’ve overspent your budget. Start tracking your spending to discover places where you may be unknowingly overspending.

Make Sure You’re Paying the Best Prices: You can make the most of your money comparison shopping, ensuring that you’re paying the lowest prices for products and services. Look for discounts, coupons, and cheaper alternatives whenever you can.

Contribute to Savings Regularly: Depositing money into a savings account each month can help you build healthy financial habits. You can even set it up, so the money is automatically transferred from your checking account to your savings account.