Opportunity for investment.

Dear Friends ,


Most of us are wondering now a days where is the opportunity for investment ? as the major investment opportunity which every one believes, Equity markets, are down. since last few years it has given negative or very less returns. So you are very much confused now.


Questions :
Gold had moved up to such a level that it is a question weather to take entry to this level is right or wrong ?
Equity markets are down, there is no scope for any recovery soon ...?
FD is a option where it gives fixed returns however it fails to beat inflation.
Real estate is looks to be good investment but it requires lot of money to pump in ....
lot of questions.......


Solution:
Here we have to look not only about the opportunity but towards the requirement of the invested money from today , So that it helps you to put a tenure on the investment. so depending on the basis of tenure to the investment it can be braked in to three groups.
1. Long term : 7 years and above.
2. Mid term : Between 3 to 7 years.
3. Short term : less than 3 years.


How to plan for investment ? 
Depending on the basis of the tenure of the investment we can take a decision on investment in this volatile situations also.


Short term Investment :
For this you have to select Debt instruments wisely . you have a options to go for FD's or RD's or Debt funds , out of these three choices Debt fund proves better because of its distinct benefit.
1. You can invest in small amounts as per the availability of money.
2. It is a tax efficient investment because as you can claim indexation which we cannot claim for FD so you can earn good returns over FD in Debt funds and these funds ( if invested in gilt ) are as safe as FD's.
3. You can choose from Short term or long term funds as per the requirement of Money.
This will help you protect your capital and gt some good returns.


Long term investment :
For long term invest the equity markets are very attractive today and in coming one year may be be getting good opportunities to buy shares at good rates which will give you very good results in years to come but for taking entry in to shares requires lot of self study and research, don't buy on friend's or relative's or Broker's call. If not possible to you then you can go with MF's , SIP in MF's will turn out good in long run. 
As well as real estate in developing areas may fetch you good returns in long run.


Mid term Investment : 
In mid term you should have combination of Debt and equity so when you are moving from 3rd year to 7 th year's investment your exposure to equity should increase gradually from 0% to 100%.


Gold can be used to balance the portfolio but the investment should not be more than 10% of your total investment portfolio.




Your views and questions are welcome :)




About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families. Can be reached at arbfinancials@gmail.com or Cell : 08793107044

Loan Restructureing !

Loan is a good thing to have if we can afford to pay the EMI and build the asset for us optimising the cash flow.
Housing loan is a one kind of such a loan which gives you a leverage for longer period and you can build an asset for you. 
how ever if the floating rate of interest is making it difficult for you to repay your loan you should think of restructuring of the loan.


How you can do restructuring of Loan ?


1. With your existing lender : You can approach to your lender and have to ask about the possible ways of doing it. many people hesitate of doing this, a simple question can help you to reduce your burden of EMI's. normally it is seen that the old client of the lender are paying higher interest rate at the same time the new loans are offered at cheaper rates.
You can also convert your loan to cheaper by just giving one application and paying some fees which is normally 0.5% of balance loan amount.
If by paying 0.5% you could save 1% to 1.5% it makes a  sense 


 2. You can change your lender :  have to refinance your loan,  there are two aspects in this 
A. if your loan a floater loan from the day of disbursement then there is a good news for you, now you need not have to pay a penalty for refinancing the loan the the old lender. But with the new lender you have go through the normal processing as if this is a new loan, so have to think of expenses related to that and considering that expenses on the balance loan if you can save 1% to 1.5% it is a good deal.


B. If the loan is in the fixed type either for full term or for few term then you have to pay penalty for refinancing a loan. this penalty may vary from bank to bank on the basis of agreement. Again criteria will remain the same for taking decision.


happy loan restructuring :)

About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families. Can be reached at arbfinancials@gmail.com or Cell : 08793107044

Do Single premium mortgage insurance is good for you ?

When ever any client goes to take a loan from any financial institutes, most of these institutes are having a tie-up with some insurer to sale their products so when client is either forced or suggested a insurance. one of such insurance is single premium  mortgage insurance, Where the client is asked to pay single premium for the full tenure.


Do this type of insurance is good for client ? 
You will really surprise like me to hear this real story of one of my client , he actually planned to go for loan of Rs. 2 Cr. from one of the leading private bank where the bank executive proposed him a one time mortgage insurance to protect the loan. 
This loan was for 10 yeas and the age of client is 46 years, the proposed plan was asking for a single premium of 10,00,000/-.


How this single premium mortgage insurance work ?
This is a life insurance and it will cover your balance loan amount at any point of time during the loan tenure, so it means as you keep on paying EMI's for loan the balance loan amount will go down as the insurance cover as well.and this policy automatically ends on settlement of the loan.


My experience :  
When my client come to me with this proposal given by the ban;s executive, i just worked out the premium of 2 Cr. term plan for 10 years if my client go for online policy. 
The result was very surprising the Premium required by him to buy a term plan of 2 Cr. is just 52000/- per year, Where this is not at all linked with his loan balance and will have same cover through out the term of 10 years.
And the insurer was same from the bank as well as what we have calculated premium for.
Then i suggested my client to go for online insurance.


So keep your eyes open this can save your money.


Share your thoughts.


About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families. Can be reached at arbfinancials@gmail.com or Cell : 08793107044