Archive for: ‘August 2014’

How Balanced Funds Can Help You

August 28, 2014 Posted by admin

There are days when you wonder about how you can make some extra cash to make life a little easier. Well, one of the things that you can do is invest your money, allowing it to grow. Equities are undoubtedly the most lucrative places where you can invest, but those tend to run a high risk of losses as well. Debt funds are much safer, but they aren’t nearly as lucrative as equities are. So how do you make the most of your investments, including both the lucrativeness of equities and the safety of debt funds? The answer lies in balanced funds.

These are hybrid funds that incorporate the best of both worlds in a single portfolio. Usually, they invest in stocks, bonds and sometimes even the money market. If you’re looking for a balance of risk and stability, then this is undoubtedly the one for you. The trick in getting the fund to work for you is in striking the right balance between debt and equity. The most mutual funds maintain their investments in 60:40 ratios. This means that when you invest in balanced funds, 60% of your investments are locked in equities and the rest of it in debt funds. While this is a general investment practice, it may vary depending on market conditions. For example, if there is a bull run in the market, then your fund manager could very easily start leaning heavily towards equities in hopes of higher profit. This is a risky tack to take – a simple mistake could cost you a lot. But if it rings true, you’d have hit the jackpot.

Remember that when you invest in mutual funds, you’re going to have to make careful decisions. You could avoid the majority of pitfalls of investment if you were to clearly and concisely discuss what you want with your fund manager. You could give directions of how much of your money you want invested where. You need to be proactive in checking up your investments, ensuring that you’re in the loop about how your investments are getting along. You also need to be sure that you choose a competent and trustworthy fund manager to handle your money. Look up various mutual funds; look at their history and performance for at least a period of 3 to 5 years. If the performance is to your satisfaction, then go ahead and invest. Just make sure that you peep in regularly to know what is going on. After all, it is your money at stake!

Bad Credit Financing In your case

August 23, 2014 Posted by admin

Are you trying to work out what low credit score finance options that are available to you? You would like a brand new automobile, but you’re unsure of who will finance it due for a poor credit?

There isn’t any should be too worried about financing in case you have bad credit. There are several different financing methods that can be found to almost everyone, no matter their credit history. The rates of interest may perhaps be higher or they might require a larger down payment, but they might be just what you should get financing for your purchase.

Automobile Financing

If you would like a brand new or used automobile, but you have got bad credit, then your best source for financing will most certainly be a finance company instead of a bank.

There are some companies offering individuals with bad credit financing. The financing usually relies upon the vehicle chosen, where you purchase the vehicle, and what insurance and driving records that you hold.

There are other things the finance company will consider too, including your income, cosignors that one could get for that loan, and each and every references that you just could possibly provide.

Home Financing

Property financing is a little bit trickier to look for when you’ve got bad credit, but it truly is in some ways easier to finance as a result of collateral being the home.

A number of the big considerations that are looked at when attempting to have a mortgage loan with poor credit include income, home or property insurance that you have to get, what your down payment is, and any references from past landlords that you have.

Yow will discover unfavorable credit ratings mortgage financing online, at some real-estate companies, at finance companies. You have only to become willing to hunt for them.

Other Varieties of Financing

If you need to research financing for other items, like electronics or collectible items, then many times that this really is more difficult.

The main reason why it is more difficult to find financing for these smaller items is that they are much harder to repossess and to obtain buyers on their behalf after they need been repossessed. These reasons make lenders more wary of financing individuals with bad credit. You may require to think about other ways to get the money to purchase these kinds of times if they may be needed.

It could possibly be possible to look for a lender which will finance these items, even if you have bad credit. If you might be rejected, however, to ask them if they have some recommendations of where you may get financing.

Planning Your Finances With Mutual Funds

August 22, 2014 Posted by admin

When planning your finances it is important to be very clear as to what your goals are. Once you have them clearly defined it becomes easier to select investment options based on your needs. The next step is to have all the knowledge possible about where you are investing your money. Knowledge equals power in the financial world, and the more you have, the better off you will be.

There are a number of avenues to invest your money in, but one of the largest growing financial products in India is mutual funds. Most Indian’s are very conservative in terms of the investments they make. Culturally we prefer safety to risk when it comes to our money. Therefore, mutual funds offer us an excellent avenue as they reduce the risk factor for individual investors while maintain either a dynamic or secure return rate, depending on how the fund’s assets have been allocated.

One of the best ways to invest into mutual funds is through the systematic investment plan or the SIP. When investing through an SIP you decide on how much you wish to invest every month in a particular fund and also for how long. Let as assume that you wish to invest Rs. 5000 every month for 3 years. Then every month that money will be deposited into the fund from your account. The advantage of this is that if the fund is not doing well and the cost per unit or NAV drops, then for the same amount invested, you are receiving more units, which will increase your return through volume. Whereas if the fund is doing well and the NAV increases then, even though you purchase fewer funds per instalments, your returns at least are high.

Thus an SIP helps to make the best out of any situation that the market creates for it. Also, once all the initial paperwork is completed it is hassle-free as the amount is simply removed from your account every month and deposited into the fund at regular intervals. However, simply because we have mentioned the many advantages does not mean that it is the ideal investment avenue for you.

Sometimes it is necessary to invest in funds that definitely come with a higher risk like ELSS funds or equity linked saving schemes. These funds invest their capital solely into the equity of companies thus generating an extremely dynamic rate of return. However these funds stand at a higher risk as the equity market is far more volatile and hence riskier than investing in government bonds and so forth. In the end, you must always pick the investment route that matches your needs and helps you to achieve your financial goals.

Accounts Receivable Financing The Way to Increasing Profits

August 20, 2014 Posted by admin

Many businesses that fail are profitable when they go under. Costs of sales, carrying inventory and rapid growth can absorb your business’ cash flow. And waiting 60 to 90 days to get your invoices paid can slow your sales and business growth. All business’ have to pay rent, suppliers and meet payroll on a regular basis. If most of your cash is tied up in slow paying invoices you may miss important opportunities to grow your sales. Can you, as a business owner, deliver large orders to new clients and provide credit to your customer’s for 60-90 days?

If you cannot afford to wait to get paid by your clients there is a solution that can provide you with the necessary cash. It’s called accounts receivable financing. With accounts receivable financing you can accelerate the payment for your invoices, get funding for exponential growth, and meet your recurring obligations.

If adequate bank financing is not available, accounts receivable financing may be the solution to find your way to increasing profits. The main requirement is that you have invoices from creditworthy commercial customers. Many factoring companies are comfortable working with your new company – even if you have no hard collateral – provided that you have good invoices, a strong gross margin and a solid business plan.

Another advantage of accounts receivable financing is that it is like a line of credit that increases as your business grows. There are commercial finance companies that provide accounts receivable financing for small, medium and large businesses. And your financing costs can be reduced as your business grows. As a tool, accounts receivable financing allows you to tap into the power of your greatest assets – the credit of your credit-worthy customers and their obligation to pay for goods and services you have sold to them. It allows you to take advantage of new opportunities and grow exponentially.

Mis-Selling in Mutual Funds

August 20, 2014 Posted by admin

What is meant by mutual fund? Mutual fund is an investment vehicle that invests on your behalf in the stock, debt or gold market. Contrary to a common misconception, it is not only for equity markets, but also debt markets and gold. To clear another misconception – it is only a vehicle, so it is in itself neither risky nor safe. Its risk or safety depends on whether it is a debt or equity mutual fund. Similarly mutuals fund is misnomer for mutual fund.

As a rough analogy, a fund is like a fruit basket you can buy in the market. The fruits themselves are shares or bonds that are present in the basket. Different baskets contain different combinations of fruits, and are accordingly priced differently. Needless to say, the basket itself has no value, and is roughly equal to the value of the fruits inside (plus a little cost of packaging).

For investment purposes, mutual funds are the best vehicles. For people having little time and inclination to regularly involve in finance, this single vehicle alone suffices for all investments! This is because you can use this vehicle to invest in almost anything ´┐ŻEUR” stocks, bonds, gold. Even real estate is on its way, once the regulator gives its nod.

For people of conservative risk profiles, there are debt and income funds. For people with more risk taking ability, equity funds are the instruments of choice.
In any financial product, at a given point in time, the sum of value to a customer, agent, government and the company is always zero. Note that this zero-sum game is valid only at a point in time. Over time, the corpus itself can grow and provide more for everyone. “But,” you might say, “Isnt that the same in everything I buy, say Dal at the Kirana store?” Well, yes. But with two important differences: Dal is a consumption product, qualitatively different from the money you use to buy it. On the other hand, financial assets themselves are not for consumption. You hope to covert it back to money sometime later. So anything that leaks out during the conversion in either side, is irreversibly lost. It directly reduces the money you get back later. More importantly, when you go to a Kirana store, you make most of the purchase decisions. If the store were out of Tur Dal, would you buy Channa Dal instead? More likely, you would go to another store and buy the Tur Dal you want. In finance it’s a bit different – you ask the broker himself which fund to buy! He naturally recommends what’s good for him (i.e. gives him maximum commission), and not what is good for you. What helps him is the fact that you realise the product is rotten only years later, by which time he is long gone. Would someone like a trusted Bank recommend bad products? Possibly yes, though not necessarily. All we can say is that you are asking for trouble. The guy who sells you the funds typically has no clue which funds are good. So even if he wanted to do you good, he typically cannot. We have seen very few Banks have a good research desk. And even fewer make sure their sales people sell what their research recommends! For sure, the Bank wouldn’t disappear with your money. But if an investment turned out to be bad, it would sure shrug and say that you made the decision yourself. What can help? Only two things we can think of: Think and learn before you buy – We are amazed at how few people know what they are getting into. If you buy due to the persistence of the sales person without understanding the product yourself, you are sure to get conned in this industry. Take advice from someone other than the broker. The distinction between advice and execution is especially important since brokers get paid a commission depending on the product you buy. They will naturally recommend high commission products, which, by the zero-sum theory given above, means you end up with less. For more knowledge and wisdom on Personal Finance, visit the website of fintotal

Continetal Finance Gold MasterCard – The Details

August 16, 2014 Posted by admin

The Continental Finance Gold MasterCard is an unsecured credit card issued by the First Bank of Delaware. It is aimed at people that have a bad history, such as those who have previously not made their payments on time and have generally mismanaged previous accounts.

You will be assigned an initial limit which can vary from $75 to $300. The actual APR will depend on a number of things, but could be as low as 9.75% APR. The card also offers semi-annual limit increases, if you then pay off a good amount of your balance every month on time. These are applied in chunks of $75, increasing your limit up to a maximum of $2,000.

It is accepted for paying for goods and services worldwide. It also offers online access, allowing you to check your balance, pay your monthly bill and see your recent statements. There are also a number of additional online tools to help you manage your finances.

A key component is that it offers monthly reporting to the major bureaus. This means that if you are managing your finances well and paying your monthly bills on time, your rating could start to improve. You will be creating some positive payment history with the bureaus.

As with most type of offer, there are additional fees that you should be aware of before you apply. There is a one-time account processing fee that is charged, as well as an annual fee and an account maintenance fee. You should read the information carefully before committing, and see whether this is right for you.

It is also important that you make your monthly payment on time; otherwise you will be charged a late payment fee of $35. The same charge applies if you perform transactions that take you over your limit.

In order to apply you will need to verify your identification and address, and should be over 18 years old (19 in some states). There are also a small number of exclusions; you cannot reside in Wisconsin or New York, for instance. Customers who meet the criteria will be approved instantly, and will receive their cards within a few days.

If you apply for the Continental Finance Gold MasterCard and are turned down, you may be offered a Classic instead. This carries a higher APR of 19.92%, and the charges and fees vary slightly. However before you apply for any offer make sure you read the terms and conditions and are fully aware of what fees the card caries.

Simple Guide for Investing in Mutual Funds Vs. Stocks

August 16, 2014 Posted by admin

Mutual Funds or Stocks? It is most common question that comes in mind of investors, especially beginners. They don’t have exact idea where to put their money where they can generate best returns. What can the answer of this most commonly asked question in investment circle? Actually there is not correct answer which can be supported by some strong proof because both options have their advantages and disadvantages. Eventually, it comes down to personal circumstances. Here is a guide that explains how to choose between fund and stocks depending upon personal circumstances.

Let’s first understand main difference between stocks and funds. Stocks are shares of particular companies which investors can buy/sell from/too stock market. Actually shares of companies come from other investors only but stock exchange works as medium between investors. Historically, it is reported that stock market have potential of 11% returns a year. Stocks are likely to pay off your money back if you wait for right time and make good investment decision. However, risk and return goes hand-in-hand. Financial market may fall down because of some certain reasons but it is seen that it often grow back at long run. It simple means that stocks are good for those who are thinking about investment for long term.

Trading process of funds is almost similar to stocks funds but how money of investors is invested in funds is different than stocks. fund managers collect money from number of investors and invest that collective money in different stocks, bonds, or/and other assets.

Selection of these assets depends on research and knowledge of fund manager.

So here is a main difference between stocks and funds:

“When you invest in stocks, you become shareholder of specific company and when you invest money in funds you are actually giving money to professional fund manager to invest wherever he thinks that money can grow faster”.

Selection process

Now, you have idea about stocks as well as funds. Still, which one is better for you is not clear. Three factors are most effective on your decision: Risks, Returns, and expenses.

Risks: When it comes to risks, funds have upper hand. If you don’t won’t to see big ups and downs in your investments then go for funds, simply because of diversification. As told earlier, when you invest in funds, your money goes to different assets, not only one or two stocks. It means that other assets can cover for underperformer. This is the reason why funds are considered as much better option for beginners.

Returns: Most important and interesting one. It is seen in the past that funds always underperform the market. Expert fund managers don’t have answer to this secret but somehow returns in funds are not as high as funds. When many assets are bought using investors’ money, probability is higher that few of them don’t grow as expected and perform badly. That has significant effects on final outcome. Stocks have potential to offer good returns if investors are ready to take little risk and wait for right time.

Expenses: There is no doubt that stocks win the battle here. In funds, three types of costs are applied: Implicit costs, Explicit costs, and hidden. Even if expenses are minimal for funds, they do exceed expenses related to stocks of same amount.

Conclusion: For those who want safety of their money first, fund investment is ideal choice because it has fewer risks compare to stocks though they has low returns. For aggressive investors, who want to grow their money quickly by investing for long term, stocks are ultimate choice.

5 Best Mutual Funds

August 12, 2014 Posted by admin

There are thousands and thousands of mutual funds out there all promoting themselves as the best. Trying to pick the right one can be very difficult. The truth is that the majority of mutual funds actually lag the overall market. Too many people make the mistake of picking the “hottest” ones with high fees or poor management.

To help you in your investing, I researched hundreds of different investments and found these ones to be my favorites. I like these investments so much that I own shares in each of them and have made money investing in them. This is my list of my 5 favorites that will outperform the market over the next few years. The common theme among them is that they all have low fees, great management, and pay solid dividends. The growth has been great.I can name a good number of mutual funds that actually had a positive performance over the past decade. They aren’t even the hottest funds in industries or niche funds that did well. These are boring solid funds. While the market may have been down over the past decade, the mutual funds that I invested in actually were up.

Many of these mutual funds are ones that you may not have ever heard of before. I pick the best growth, value, balanced funds that you can invest in. I also look at the best one for risk takers. Each report contains a look at each investment’s historical performance over the past few years. It also details the portfolio composition including the top 10 ten holdings. You also get fund expenses and minimums to invest. This report contains funds for the both the large and small investor.If you are shaky about investing in a particular fund, check out this report. It’s important that you trust the financial institution that you are giving your hard earned capital too. You want to feel comfortable that you are making the best investment decision for your dollars.

Guide To Buying And Selling Mutual Funds

August 12, 2014 Posted by admin

Mutual funds make an excellent way of investment because you have to make just one purchase and you can easily acquire a wide range of investments. They offer an array of benefits and features. It is very easy to buy these funds and it is much easier to sell the same. However, in order to decide about the best funds suitable to you, you will have to do some research and homework. Following is a brief rundown on how to go about it.

Know The Basics

Before you go ahead and start investing, you are strongly recommended to first learn the basics of what mutual funds are and how they work. These funds basically refer to a portfolio that can include different types of securities, such as certificates of deposit, bonds, stocks, and others. The majority of these funds have a certain focus.

Investment Goals

In order to get the best return out of your investment, you must also be well aware of your financial goals. The goals must be specific. If you know the objectives you want to achieve, it will be very easy for you to decide about the right kind of mutual funds that are most suitable to you. You may like to ask certain questions to yourself. For example, do you want money to purchase a vacation home? Are you planning for retirement and you need money to fund the same? Do you have to pay for your college education? The answers to these specific questions will help you make an accurate decision.

Your Overall Portfolio

The next thing that you have to do is to look into your overall portfolio and determine how investment in these funds is going to fit there. The basic investment strategy is same here – you don’t have to invest all your money; make sure you have sufficient money available every time not only to meet your regular expenses but also the emergency ones. Find out the exact percentage of your overall assets that you can afford to invest in mutual funds. For example, if you are young, your investing timeline can be much longer than the older ones. So, you may consider investing a larger percentage of your assets.

Risk

You will also have to determine the amount of risk that you can afford. If you don’t want to go for the risky ventures, you should never invest in aggressive funds. If you do, you will most probably end up having a string of sleepless nights.

When it comes to buying and selling of mutual funds, you must also do a thorough research of the market. It will be a nice idea to go through various financial magazines where you can check out the list of these funds rated on the basis of several parameters, such as risk, performance, and others.

Finance Debt Consolidation Dares to Contest Debt

August 9, 2014 Posted by admin

Why do people get debt today? Is it a negative phenomenon or does it bear the bulky shades of any positive trend? Yes, the causes are like this only. Debt is a bulk of the developed societies where all the members are not affluent enough to buy everything with own money. So, some of them look for the assistance from credit cards, store cards and like things. Paying back the debt of these loans are not easy a matter. The result often comes with unpaid debt. So, to beat this debt what one really needs is finance for debt consolidation.

Finance debt consolidation aims at combining and paying off all your existing debt through a single affordable loan payable with single interest. When you have got multiple debts with multiple rates of interest, a replacement in the shape of single loan with single interest is able to relieve you from any debt worry.

Finance debt consolidation is available in both the classical loan formats, secured as well as unsecured. When your collateral plays the role of security in secured finance debt consolidation, the lender gets a satisfaction that his money will be paid back timely. In return, he gives the finance at cheap rates and easy terms. However, the unsecured finance for debt consolidation gives another benefit, where you can grab the finance without pledging any collateral.

Again, finance debt consolidation is a good option for the bad credit holders too. Through the use of this finance, they can easily pay off their unpaid debt which might have made their credit record sour earlier.

The best and cheapest finance debt consolidation is, however, available online where the finance becomes cheaper than any other medium since the tedious paper work is not involved online. Finance debt consolidation with its benefit package is a good illustration of how finance from lenders can mark the progress of a person and can give him the needed financial freedom.