Understanding Large Cap, Mid Cap and Multi Cap Mutual Funds

November 21, 2014 Posted by admin

Understanding Large Cap, Mid Cap and Multi Cap Mutual Funds
Mutual Fund pools the savings of the investors, who share a common financial goal and then invest the corpus collected into a number of financial instruments to maximize the returns.
One of the ways to divide or identify a mutual fund is the criteria of market capitalistion.
The market capitalisation or Market Cap is the total no. of shares of a company outstanding in the stock market multiplied by the market price.

The major three types of mutual funds are Large Cap, Mid Cap and Multi Cap mutual funds.
Below we shed more light on the three types of the Mutual finds based on market cap.

Large Cap
Mutual fund houses have different parameters for choosing a large cap fund. Mostly, the companies which have got more than 1000 crore of market capitalization are taken as large cap companies and then the mutual funds invest in them accordingly. These companies have got maximum potential to grow and earn higher profit since they have large amounts of money at their disposal which can often be used.
The primary objective of the large cap mutual funds is to seek robust capital growth by investing into the stocks of large corporations and frontline blue chip companies.
Large cap mutual funds are generally less volatile than their counterparts which are Mid Cap and Multi Cap mutual funds.
However, the returns are generally low when compared with other classes as they are exposed to lesser risk, but on the long term, these funds have outperformed its peers. It is advisable to invest in Large-cap Mutual funds during volatile market conditions.


Cheap Used Car Finance – buy a car with a burden less loan

November 21, 2014 Posted by admin

You can buy a used car easily as it comes at low price. However, you may require a loan as the amount is still too high for sourcing it from own income. So, cheap used car finance becomes necessary. Cheap used car finance is called cheap because the finance is approved at lower interest rate. You can buy a used car of any make or any model through cheap used car finance.

The best way for availing lower interest rate on cheap used car finance is to offer the lender some security of the loan. The security may be any valuable asset of the borrower. Apart from the security, if the borrower has a good record of paying previous loans, his chances of getting cheap used car finance increase. So check your credit score first. An amount approved as cheap used car finance will depend on equity in the property placed as collateral. Your current repaying capacity also plays a role in determining the loan amount. Since you are buying a used car, lender will approve cheap used car finance for short repayment duration of few years. You can avail cheap used car finance without collateral but in that case the interest rate will be comparatively lower only when your credit score is excellent.

Sourcing part of cheap used car finance is important. Though you can get finance for used car from car dealers but they usually charge higher interest. It would be better therefore to go for a personal loan specifically meant for car buying. Such used car finance comes at cheaper rate of interest. You can contact cheap used car finance providers on their websites. Compare their individual interest rates for picking up a suitable lender offering cheaper rates.


Types of Mutual Funds

November 20, 2014 Posted by admin

Over the years a diverse range of mutual funds has emerged to meet a very broad range of investment objectives among the investing public.

A fund’s prime investment goals are stated in the fund’s offering prospectus and generally cover the degree of safety or risk that is acceptable, whether income or capital gain is the prime objective, and the main types of securities in the fund’s investment portfolio. From their differing investment objectives, the following main types of funds emerge:

1. Bond Funds – whose main investment goals are income and safety of principal. Investment by such funds is primarily in good quality, high yielding government and corporate debt securities, some high-yield preferred and common shares and mortgages. Their degree of volatility
is related to the degree of interest rate fluctuation.
Example: Altimira Bond Fund.

2. Mortgage Funds – investment goals are similar to those of bond funds, and unit values are affected by similar economic factors. Investors hold a share in a group of mortgages (much as bond fund investors hold a share in a group of bonds) rather than holding title to a particular
Example: Royfund Mortgage Fund.


Useful Advice For Managing Your Finances And Keeping A Budget

November 19, 2014 Posted by admin

Being on top of your finances can be confusing and hard at times. By planning ahead and tracking all of your financial details, though, you can head off any upcoming difficulties before they affect you. Online banking can be a great way to start this process, but you will need to be responsible.

Include quality health insurance in your personal financial plan. Everyone will get ill at some point. Start with a good health insurance that corresponds to your needs. Doctors and medical bills can climb into the tens and hundreds of thousands. If you aren’t insured, you will be paying a large amount of money.

Having a college education can be helpful in finding a job and making a good salary. Research has shown that a college graduate earns almost twice the salary of high school graduate. Investing in your education is an investment that will pay for itself and then some throughout your adult life.


Finance Debt Consolidation Chop Down Monthly Outgoings

November 17, 2014 Posted by admin

Finance for debt consolidation should be availed after a careful thought. Any unwise borrowing of the loan may lend you in another trouble and its very purpose will be defeated.

When you intend to consolidate your balance payments on credit cards, store cards, any other bills and unsecured loans, then it simply means that you want to get rid of the higher rate payments immediately. Other usual intention is that you want to make low monthly payments towards the new loan.

Prior to applying for the new loan, check your credit report, which you can get free from the major credit rating bureaus. Make sure that the report has correctly mentioned all the past payment and has no errors. Know that the lenders will study the report. You should also know as to where you stand on FICO credit rating. If your rating is low, then apply for the loan with improved rating after few months.