STEPS OF INVESTMENT

InvestmentWhen we come to a point of investment, we are thinking the best way we can invest our money and effort in order to get much benefit. People sometime make mistake in prioritizing before they invest. Investment must be proceed step by step in order to get good return on time. Before investment three factor must be there, 1. Security of your money 2. Good return in specific time and 3. Liquidity, i.e any time you can withdraw when you need. But remember the bitter truth that no investment will give all the three benefit simultaneously. You have to loss at least 1 factor of it. If you want your money should be secure then you may get less return of it. If you are getting good security with good return then there will be no right of liquidity.  Always remember big investment having big objection, take time before you invest. But try to avoid all kinds of loan, credit and other borrowing which will disturb your financial planning.


1. LIFE INSURANCE: Every good citizen having good family, one is earning member then there children and retire parents are dependent on the earning member. Life itself is risky no one know what will happen tomorrow, Hence it is very essential that you must be secure your family’s future in the hand of good Life insurance company with good scheme and understand the policy term and condition and aware your nominee about the policy term. No such investment available like Life Insurance which will give financial back up in case of your permanent absent from this world. There are other minor expenses like medical claim policy, car insurance, business insurance which can prevail during the time of risk.

2. REAL ESTATE: If having good financial back up, it is always good to invest your money in legal real estate to have your own home, which the basic need of human kind. The investment should be on the basis of government development plan for the area where you are investing your money which will give you good valuation of your property. Avoid staying in rented house, you will end up paying the rent through out the year. Book a home, take home loan if you don’t have sufficient bank balance and pay back the monthly EMI instead of paying rent and security deposit.

3. BUSINESS: In order to jump in business, you must thoroughly feasibility study the locality demand and the benefit you can get it. “Before you start some business, always ask yourself three questions-why am I doing this business, what the results might be and will I be successful. Only when you think deeply and find satisfactory answers to the questions, go ahead.”   There are various business like hotels, website, renting car, transport vehicle etc.

4. OTHER INVESTMENT: The other investment stand like investing in share market which is always uncertain, most people says it is certain that the share market always uncertain. Hence it recommended that you must enter in share market with only 10% of your total money you have with full knowledge of trading in share market. If you enter with full money then it is certain that great alas ahead.

Good investment always like a tree near to stream whose leaf never shade and with no lack of water. Investment always keep you green and fruitful. Remember always that your loan and credit must not exceed more than 20% of your total assets you have, loan and credit is the great loss in order to pay back with heavy interest rate, hence always stay away from it.


budgetINDIAN BUDGET 2014

The current government of India helps the common man as well as senior citizens with its favorable budget. One of them related to the minimum monthly pension paid to subscribers of the Employees Pension Scheme run by the Employees Provident Fund Organization. As a result of the notification, each subscriber will now be entitled to a minimum monthly pension of Rs 1,000. The following are the benefit given to the citizen of India.

1. The government has given small relief over Tax exempted up to annual income of Rs. 2,50,000.

2. There is benefit for PPF account holder too from 1 Lakh to 1.5Lakhs per annum.

3. “Government will promote girl child welfare small savings scheme. The savings scheme will mature at the time of her marriage,” Jaitley said.

4. Giving direction to Prime Minister Narendra Modi’s vision of building multiple smart cities in India, Jaitley said the government will aim to spend Rs 7060 crore for 100 smart cities.

5. Looking to harness the demographic dividend, Jaitley said that government will work on skill development of youth. “The skill development programme for the youth will encompass multiple areas such as carpentry etc,” Jaitley said.

The ambit of provident fund scheme is being increased to cover more employees as the government said that the monthly wage ceiling will be increased to Rs 15,000 from Rs 6,500 currently. As a result of the decision, several workers who are currently in the unorganized sector will also be covered. For instance, in cities such as Delhi a daily wage laborer earns up to Rs 8,100 just based on the minimum wages. But employers often do not deduct the mandatory 12% contribution in anything over Rs 6,500. To implement the two decisions, the government has set aside Rs 500 crore for the current financial year, and companies too may be required to increase the spending. For a large part of the working population, EPFO and EPS, which is a part of the contribution made by employees, are the only instruments for old-age planning and for better future provision.

The government may have some good news for senior citizens in the coming months budget. Finance minister Arun Jaitley said that there was a large amount of money lying unclaimed in small savings schemes such as public provident funds and post office deposits, which may be used to benefit the active accounts. “These are mostly out of investments belonging to the senior citizens and on their demise, remain unclaimed for want of relevant payment instructions. I propose to set up a committee to examine and recommend how this amount can be used to protect and further financial interests of the senior citizens. The committee will give its report not later than December,” the finance minister said. Those who are a few years away from turning 60 can avail of the Varishtha Pension Bima Yojana (VPBY). When the scheme was launched last time, over 3 lakh people had purchased annuities generating a corpus of Rs 6,095 crore. This time, Jaitley said that the scheme will be on offer for a year, starting August 15 and is meant for those who are 60 years or more, which give some hope for old age people group with monthly supply for their basic needs.