DV-Mint – Page 28

August 3, 2021

Benefits and Risks of International Equity

International investing has become vital for our portfolios as we take part in the global growth story.

Adding international stocks to a portfolio offers diversification and may provide higher returns. However, there are both benefits and risks associated with global investing.

Benefits of International Equity

a. Diversification

Diversification is the most obvious yet the most crucial benefit of global investing. A diversified portfolio acts as a source of stability during market volatility.

When you spread out your investments across geographies, there is a low correlation between them. This means that the volatility in one market is likely not to affect your other assets.

Many of the US-listed companies have global revenues. Over 40% of the revenues of the S&P500 companies come from outside the US. By investing in the US itself, you can build a globally diversified portfolio.

b. Wide range of investment options

Global investing enables you to access investment opportunities that are not present domestically. Developed markets like the US are home to some of the world’s largest tech companies – something you cannot access by investing in India.

You may even choose a theme or a combination of multiple sectors. For example, you can prefer the US market for technology, Europe for engineering, and Australia for commodities.

If you are interested in healthcare or pharmaceuticals, there are several options in the US and Europe.

You can access multiple geographies through ETFs. For example, you can invest in German equities through the US-listed EWG ETF or in the Brazilian market through the EWZ ETF.

c. Investment Protection

Another significant benefit of global investing is the protection of investments against fraud and liquidations.

Developed market companies generally have strong regulations that ensure sound corporate governance and severe penalties for market abuse. This protects retail investors from potential scams and insider trading losses.

Remember, capital is always at risk, but many foreign financial institutions, offer protection from seizures and other threats such as liquidation of the broker-dealer. For instance, in the US, SIPC protects investments up to $500,000 if your broker-dealer faces liquidation.

d. Currency Diversification

Investing overseas exposes you to currency appreciation (or depreciation). For example, the USD has been appreciating, on average, between 3-5 percent versus the INR over the last few years.

Emerging markets’ currencies depreciate over the longer term. Interest rates in domestic savings accounts are at a low of 3-4 percent on average.

By investing globally, portfolios have generally had the dual benefit of better markets and appreciating currencies.

Risks of International Equity

a. Higher Transaction Costs

The most significant barrier to investing in global markets is the added transaction cost, which varies depending on the foreign market you want to invest in. For the US markets, for many other markets, access may not be as inexpensive.

There may be additional costs like FX conversion charges, transfer fees, and annual maintenance fees that you should know on top of the brokerage commissions.

b. Currency Volatility

When investing directly in foreign markets, you first have to convert your Indian rupees into a foreign currency at the current exchange rate. Let’s assume you own a foreign stock for a year and then sell it.

You then convert the foreign currency back into the Indian rupee. That could help or hurt your return, depending on which way the domestic currency is moving.

c. Political Risk

While investing, you should also consider the geopolitical environment of the country. Political events affect the domestic markets of the country and may lead to volatility.

In developing markets, government and policy decisions could hurt even the most prominent companies. We have seen this frequently in countries like Brazil and Argentina.

Conclusion

International investing has become the need of the hour to achieve strong portfolio diversification. While the benefits are lucrative, you must pay attention to the risks as well. There is a lot of information available online to measure the risks and ensure your portfolio’s right mix.

Source:- Winvesta

July 29, 2021

4 Benefits of buying the Unlisted Shares

4 Benefits of buying the Unlisted Stocks | Deeva Ventures Pvt Ltd

While there are many reasons why a person might invest in unlisted shares the following are some of the common advantages of owning unlisted shares:

1. High-value investments: Since the shares are not very liquid, they are often either undervalued or overvalued for long periods.

Thus, if an investor can invest when the shares is undervalued, then he/she can gain significant returns on the investment.

2. Diversification of risk: Unlisted equity shares are a different asset class by themselves and as a result offer some diversification of risk for investors who are majorly invested in listed equity markets.

3. High growth investments: Often unlisted firms are smaller in size and are yet to reach a stage where they can go public to avail funds for their capital requirements.

As a result, investing when the company is small and invested through its growth when it lists on equity markets often yields high returns due to the small base effect.

4. Peace of mind: Unlike listed equity shares, the prices of unlisted equity shares are relatively stable and the investor need not worry about fluctuations in prices.
Top Unlisted Shares available to invest:

A) Tata Technologies
B) Studds
C) SBI Home Finance
D) Reliance Retail
E) One97 Communications (Paytm)
F) Hero Fincorp
G) HDFC Securities
H) HDB Financial Services
I) Finopaytech
J) Carrier Aircon
K) Care Health Insurance
Call us to invest in unlisted shares.

July 20, 2021

Why do you need an investment manager?

It’s a common question among investors who don’t have an investment manager: Why would I pay someone to manage my money? Can’t I do that myself with a cheap, online brokerage platform?

The answer of course is ‘yes, you can manage your own money on any number of brokerage sites.

However, as a professional financial planner and investment manager, I’ve noticed at least 3 reasons why you may want to consider hiring a professional to come alongside and help you with such an important responsibility.

And they may not be the reasons you think.

3 Reasons to Consider Hiring a Professional

First, your investment advisor will help you to continuously and quickly invest cash in your investment accounts.

One of the most common issues with do-it-yourself investing is thinking you can time the market with your cash. Over and over, I encounter clients who have been sitting on cash (to varying degrees) in retirement investment accounts.

Remember, you can’t even get at this money until you are 60 years old. Also remember, if you are 60 years old, you likely have a 30-40 year retirement on the horizon. Compound interest only works when you let it work.

That means keeping your cash invested continuously and quickly and a financial advisor will help you do this.

1. When do things always go according to plan?

Second, an investment advisor will help you stay accountable to the savings and investing goals you set for yourself.

When you are going it alone, it’s easy to make excuses, blow past personal finance deadlines, and feel like you are doing alright when you have one too many blind spots. A great financial advisor will help you stick to your investment plan.

But when things don’t go according to plan, your advisor will help you course-correct and make appropriate changes.

And let’s be honest, when do things always go according to plan? Helping you make adjustments and not simply ignore important financial decisions is what your advisor is there to help walk you through.

2. Making progress, moving forward

Next, your advisor should make you a person of action! With financial decisions, it’s far too easy to push a final decision to the background.

Even once you’ve made a final decision, executing that decision can take weeks, or, more likely, months.

Your advisor not only helps you make the decisions but helps you execute the decision promptly.

Whether you need to re-balance your portfolio, make an allocation change, or review your fund expenses, your advisor helps the action happen.

Put simply, your advisor helps keep you moving forward!

3. Do you have a thinking partner?

Third, your advisor should be your thinking partner when it comes to adding or deleting investments from your portfolio.

Every investor faces decisions from time to time on whether to change a certain investment fund in their portfolio.

How do you know when is the right time to make a change? What is your decision framework for making big investment changes? What is the tax impact of the decision? For most investors, the framework is largely emotional.

Your advisor should be your thinking partner when it comes to investment changes.

A fiduciary financial advisor will be able to help put investment decisions into proper context and bring the decision back to you and your financial plan rather than your emotional opinion of the investment.

July 16, 2021

5 Best Financial Rules to Secure Your Future

1. Create Spending Priorities

By now, you should have a good idea of what you value in life, and what kind of lifestyle you want to lead.

This means that it’s time to stop spending on stuff that isn’t important to you. Do you know how much crap I bought in my 20’s that was a complete waste of money? Too much.

Sit down, think about what you want to accomplish with your money, and then create a list of spending priorities that work for you. Then, spend according to those priorities.

Your spending will be more in line with your values, and you’ll be happier as a result.

If you have a spouse, this involves them, too. My wife and I are constantly talking about what are the important things we want to spend our money on.

In our 30’s the constant topics revolved around upgrades to our home, travel, investing in our businesses, and our kids – three growing boys add up!

2. Buy Health Insurance

Now that you’re getting older, you need to think about health insurance. Even if you live a healthy lifestyle, there are reasons to have health insurance.

If you have kids, you need health insurance. If you can afford a high deductible plan, it can make sense (if you have relatively few health care needs and costs) to purchase one.

You can then put money into a Health Savings Account, earning you a tax deduction and allowing the money to grow tax-free as long as you use it for qualified expenses.

3. Create a Retirement Plan

Many people in their 30s have yet to perform a retirement calculation. Now is the time for you to perform that calculation.

Use one of the many online calculators to figure out what you need in retirement, and what you need to do now to meet your goals later.

Get serious about what you want to do in retirement and make a plan.

4. Diversify Your Income

Now that you’re in your 30s and things have settled down a bit, it’s a good time to consider income diversity.

Don’t rely on your day job for your entire financial well-being. That’s just asking for trouble.

I’ve been able to diversify my income by starting this blog and other online ventures to complement my revenue from my financial planning practice.

Try to cultivate income diversity with side gigs, investments, and other endeavors. That way, your entire family’s financial future isn’t at risk if you’re fired from your job.

5. Get Financial Planning Help

As your finances become more complex, there is a good chance that you will need help working through the ins and outs.

Whether you need help with tax planning (I love my accountant), plotting a retirement course, or figuring out what insurance policy is best for you, consider working with a financial planner that has no conflicts of interest.

Unfortunately, most people assume financial planning services are reserved for individuals with very high net-worths. For a long time, that has been the case.

But, a relatively new company that is bridging the gap between this very helpful financial service and the younger generation (who typically don’t have millions of dollars of assets) is Facet Wealth.

July 13, 2021

4 Benefits of Buying Engine Protection Cover for Your Car

Engine protection car is one of the most important add-ons covers that are offered by motor insurance companies in India.

Pays for the Most Expensive Car Part

The engine is considered the most expensive part of a car. Naturally, the cost of replacing the engine or any of its parts can cost a lot of money.

Besides, repairing the car’s engine is also quite expensive. But with an engine protection cover, you don’t have to worry about how much money will it cost to get your car’s engine repaired or replaced.

Ideal for People Living in Flood-Prone Areas

People who reside in low-lying areas prone to floods or water-logging often find their car’s engine damaged due to water ingression.

The engine protection cover will ensure that the cost of repairing your four-wheeler’s engine will be covered by your insurer every time water enters inside the engine.

Comes to the Aid of New Cars

If you have recently purchased a new car, any unfortunate damages to the vehicle’s engine can burn a big hole in your pocket as the engine parts of a new car will be expensive. But if you have purchased an engine protection cover with your motor insurance policy, the cost of your car’s engine parts will be covered no matter how expensive it may be.

Things to Keep in Mind When Buying Engine Protection Cover

The engine protection cover comes with certain terms and conditions that apply to car owners who buy this add-on cover.

Take a look at the things that you must keep in mind if you are considering buying the engine protection cover:

1. The engine protection add-on cover is not available for cars that are older than five years.

2. This cover can only be purchased by people with comprehensive or own-damage car insurance policies. This is because engine protection cover is not available under third-party liability car insurance.

3. Since it is an add-on cover, a car owner needs to purchase the engine protection cover by paying an additional insurance premium at the time of purchasing the best car insurance.

4. Most motor insurance companies allow car owners to make up to two claims under their engine protection cover.

July 9, 2021

4 Financial decisions you should make today before turning 30

Before turning 30, you should make certain financial decisions as early as possible for a stress-free future where financial contingencies are a far cry.

So what are those decisions? Here’s a list of 4 basic decisions that are almost universally applicable, so let’s take a look.

1. Ensure Yourself – There is no specific age for taking out an insurance policy and the earlier you start the better.

By the age of 30, you are probably one of the contributors to the family income if you are in the joint family system or the main breadwinner in your nuclear family.

Even though your spouse earns, there will be financial loss in case of any unfortunate event. Insuring is always the best answer for income protection and buying a term plan with considerable coverage is also affordable.

2. Plan for Retirement – Retirement is the last thing you think of when you just hit the 30-year age mark. The whole life ahead seems too short to accomplish all you desire and the thought of retirement leaves a sour taste in the mouth.

But planning early is the key to a comfortable retired life. Post 40 when the majority of people plan for their retirement, the accumulated corpus falls short because of other liabilities.

So open a PPF Account and start saving a little amount every month. Let compounding do its magic and you won’t have to worry about your retirement corpus.

3. Health is Wealth – Moving on from life insurance, can health insurance be left far behind? In the year 2012, the insurance sector reported a surge in insurance claims to 47% as compared to 15.8% in 2004 and that too in the age group of 26-35 years.

Yes, though you are turning 30, the modern lifestyle has given rise to newer diseases that do not consider age while attacking the individual. So don’t be foolish and invest in a health plan probably a family floater one to cover the entire family.

If affordability is a factor, you can start low and then add a top-up plan with your base plan for complete protection.

4) Buy a SIP (Systematic Investment Plan) – Mutual funds have become attractive with the diversification they provide and with a positive trend observed in the stock market, investing in a SIP of any good performing mutual fund house is the next best decision you should make.

Starting early gives the benefit of compounding returns where the money grows exponentially over the years.

So when you need funds for your child’s future or for buying a house or for that much-awaited Europe trip, you won’t have to look anywhere else.

Investing in multiple SIPs is ideal taking into account the quantum of savings.

July 2, 2021

4 key characteristics of a good investor

An average investor uses his money and invests the rest; a good investor invests his money and uses the rest. Investing is a risk vs. returns game.

While some have made millions, many have lost as well. Learn the key characteristics of a good investor to become one.

Goal setting

A good investor will always have a clear goal. It is very important to have a plan to achieve the goals. Variations most likely tend to divert an investor from the agenda.

Having a plan of action within a defined period for a particular return on investment is a sign of a good investor.

They are prepared for the uncertainty of the market while the plans are usually made considering both the sides

Patience

Over some time a good investor creates wealth due to his patience. It is probably the finest quality to have. A good investor has faith in his plans.

They usually do not feel bad about the 10% downtick; they would rather sit tight to celebrate the 100% uptick.

They are persistent about sticking to the plans. They usually do not get into the buy and sell trends.

Knowledge

Besides utilizing time to the best, a good investor possesses knowledge of the market. He/she understands the position of funds and has researched the company’s investment strategy and philosophy.

You need to know where your money is being utilized. A good investor analyses the growth pattern of the company over the years from genuine sources.

On the accounts of the anticipations and knowledge, a good investor will have a defined plan for exit point as well.

An active learner who is open to making the right choice based on the genuinity of knowledge is a good investor.

Right Decision
A good investor knows the time. They keep an eye on the current scenario in the market. They update their knowledge about market activities and growth.

Having a sound understanding of trends enables the investors to overlook their plans and decide the term of the investment.

Having an understanding of current trends and company market position makes one a good investor. They own their mistakes and learn not to make them again.

The good investor doesn’t need to jump into the trends; he/she just does what is right.

June 18, 2021

7 Alarming Things You Must Know Before Hiring A Financial Planner

A Financial Advisor is also your wealth guardian. A financial advisor takes care of his clients as a Family Doctor.

He looks holistically at your financial portfolio & also advises the clients even when he isn’t handling them directly.

1. Do you Google the medicine when you are ill?

Magic is not in medicine. The right dose of Medicine at the Right Time with the Right Combination & Right Precaution will give you a magical recovery.

Only a skilled & experienced advisor will be able to do the magic to your financial health.

You must know the work experience & certifications of the financial advisor before hiring.

2. Would you go to a doctor whose clinic is always empty?

Finding out the size of an advisor’s client base can tell you a lot about what kind of service you can expect to receive.

Don’t forget to ask for the advisor’s client base and top clients.

3. Do you visit a Multispecialty Hospital or a local doctor for a health check-up?

You need to know the infrastructure setup of the advisor. It is also advisable to visit the advisor’s office before hiring him

4. A Part-time nurse or a Practicing Doctor?

Feel free to ask whether the financial advisor is a part-time practitioner or a full-time Financial Planner.

It can be dangerous working with part-timers as they work only for their own benefit.

5. How about a medical emergency and your Doctor is on holiday abroad?

It’s very important to know the team members and ways to reach the advisor.

It can be quite difficult for you if your advisor is unavailable while he is traveling or ill.

6. Technologically updated Doctor or old-style Practitioner?

It is equally important for you to know if your advisor is technologically updated or not. Bundles of documents and several signatures: not a good idea.

Ask for the website address, link to Mobile Application, and paperless transaction facility.

7.Would you enjoy Health check-up, Medicines & Doctor consultations at different places?

Ask for the product basket offered by the advisor. Your life will be at ease if your advisor can sort all your financial needs.

Before you hire a financial advisor, it’s crucial to understand how they work.

Will they put your best interests first, or will they serve themselves? And will they create a tailored list of recommendations, or throw a generic list of brochures at you during your first meeting?

June 12, 2021

Don’t Wait To Start Saving, Take Action Today

In life, we need to take action. Today, I need everyone to start saving immediately if you haven’t yet.

How many of us have always thought about saving but think that we can always do it tomorrow? We always think that we can wait, but you will be waiting forever to be financially free too.

1. We can’t wait to go on a vacation but we can always wait to pay our mortgages.

2. We can’t wait to get rich quickly but we can always wait to learn how to get rich through time.

3. If you give yourself excuses, stop.

4. We can’t wait for early retirement but we will have to wait.

5. If it, is you, change?

6.If you want to feel financially secure, save.

7.We can’t wait to leave work but we can always wait to learn how to increase our wealth.

Trim down your spending and start saving. Otherwise, I guarantee you will regret it.

June 8, 2021

4 Reasons to Invest in NPS

Here are some of the reasons that make NPS a go-to solution to retire rich while at the same time avail tax benefits.

Accumulate Wealth for Retirement

With NPS, you can create a corpus for retirement and secure a pension for yourself after retirement.

You can withdraw up to 60% of the accumulated corpus at the age of retirement and utilize the remaining corpus to buy an annuity to receive a pension regularly.

Get Extra Tax Deduction of Rs 50,000

Your investments in NPS make you eligible to claim an additional tax deduction of up to Rs.50,000 under section 80 CCD(1B) over and above the tax benefits of Rs. 1.5 Lakh available under section 80C.

Earn Market-linked Returns

NPS provides you an opportunity to earn market-linked returns that beat inflation and help you to accumulate a relatively larger corpus for retirement.

Enjoy the Option to Rebalance the Portfolio

Your NPS portfolio gets rebalanced once every year wherein your allocations in equity shares are shifted to debt as your age increases.

Author: DV-Mint

Benefits and Risks of International Equity

Benefits of International Equity

Risks of International Equity

4 Benefits of buying the Unlisted Shares

Why do you need an investment manager?

3 Reasons to Consider Hiring a Professional

1. When do things always go according to plan?

2. Making progress, moving forward

3. Do you have a thinking partner?

5 Best Financial Rules to Secure Your Future

1. Create Spending Priorities

2. Buy Health Insurance

3. Create a Retirement Plan

4. Diversify Your Income

5. Get Financial Planning Help

4 Benefits of Buying Engine Protection Cover for Your Car

Pays for the Most Expensive Car Part

Ideal for People Living in Flood-Prone Areas

Comes to the Aid of New Cars

Things to Keep in Mind When Buying Engine Protection Cover

4 Financial decisions you should make today before turning 30

4 key characteristics of a good investor

7 Alarming Things You Must Know Before Hiring A Financial Planner

Don’t Wait To Start Saving, Take Action Today

4 Reasons to Invest in NPS

Accumulate Wealth for Retirement

Get Extra Tax Deduction of Rs 50,000

Earn Market-linked Returns

Enjoy the Option to Rebalance the Portfolio

Varanasi | Prayagraj | Raipur | Bhadohi | Siliguri

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Benefits of International Equity

Risks of International Equity

3 Reasons to Consider Hiring a Professional

1. When do things always go according to plan?

2. Making progress, moving forward

3. Do you have a thinking partner?

1. Create Spending Priorities

2. Buy Health Insurance

3. Create a Retirement Plan

4. Diversify Your Income

5. Get Financial Planning Help

Pays for the Most Expensive Car Part

Ideal for People Living in Flood-Prone Areas

Comes to the Aid of New Cars

Things to Keep in Mind When Buying Engine Protection Cover

Accumulate Wealth for Retirement

Get Extra Tax Deduction of Rs 50,000

Earn Market-linked Returns

Enjoy the Option to Rebalance the Portfolio

Varanasi | Prayagraj | Raipur | Bhadohi | Siliguri

Customers buy a product but pay for the experience

Subscribe for Updates

Useful Links

Quick Links

Important Links

Contact Us

Customers buy a product but pay
for the experience