Tuesday, September 30, 2008

Before You Buy Mutual Funds

Regarding mutual fund investment 1st thing which you need to keep in your mind is to find a good mutual fund. After finding your mutual fund you need to invest on it. But buying a mutual fund may be the smartest financial decision of your life. But with over 10,000 mutual funds to choose from, you can be sure that there are a decent number of damage eggs out there. To be safe, take a look at the items mentioned on this list before you invest in any mutual fund.


By law, you should receive a prospectus from the fund company before you invest in it. Many investors ignore the prospectus, but this is a must read. The mutual fund's objectives are displayed in the prospectus. It tells you the goals of the fund and how it intends to achieve them. You will also find information about the fund's past performance and fees.


Before buying any mutual fund we need to know the reason of buying this fund? Is it because you read about it in the paper or a neighbour told you about it? Don't get caught in the trap of chasing performance. Buy a fund because it meets an objective in your portfolio, not because it has done well recently. Asset allocation is the key to successful investing.


We need to know the market risks factor before investing, take a look at the standard deviation of a fund. If fund no.1 did slightly better than fund no.2, but took twice as much risk as Fund no.1, then Fund no.2 would be the better choice. Don't take any risk that you are not comfortable with and never take unnecessary risks.

Overall before jumping to the deep pool of mutual funds world hopefully the above information will help you.

Monday, September 29, 2008

Starting business, loan to help!

Arranging finance is the most important component of any business. It is not only essential for starting business but also to make it grow in turn capitalizing on investment opportunities. You may have an amazing plan of a business set which needs good amount of money. The challenge that an entrepreneur faces is in actually acquiring the money, and in repaying the debt which he will take. Once again banks are at your help & they will come up with products like business loans.

These business loans are designed to make available the necessary fund that is needed to start any business. You can source the loan from any bank or financial institution. These loans can be used to buy necessary equipments, recruitment of manpower, stationeries, renting office premises, expanding, modernizing or improving business etc. In fact, business loans help you cover the cost of every aspect of your business requirements.

Business loan is an unsecured loan offered to self-employed individuals including proprietors, partnership, private, public limited companies on the basis of their turnover for last two years.

The minimum loan amount is Rs. 5, 00,000 and the maximum loan amount is up to Rs. 25, 00,000 based on the bank's qualifying criteria.

So what are you thinking? Discuss in detail about your loan requirement with your bank but do not finalise before comparing rates offered by different lenders.

Sunday, September 28, 2008

Buying Auto Insurance: Types of Coverage

Different auto insurance companies offer many different types of coverage. Most states require drivers to purchase a minimum amount of certain types of coverage. Here are brief descriptions of typical types of auto insurance coverage offered:

1. Body injury Coverage : This coverage is mandatory in most states. Bodily injury coverage pays for medical bills, lost wages, treatment and/or funeral costs for anyone injured or killed by your car. Such coverage will also pay for "pain and suffering" damages when a third party successfully sues.

2. Property-Damage Liability Coverage: This coverage pays for the repair and replacement of vehicles and other property damaged when you or another authorized driver causes an accident.

3. Medical Payments Coverage: Usually optional, this coverage pays for medical expenses over and above amounts covered by personal insurance protection, no matter who caused the accident.

4. Personal Injury Protection: Pays medical expenses and some percentage of lost wages to you or anyone authorized to drive your car, no matter who caused the accident.

5. Comprehensive Coverage: Pays for damage to or loss of your car in the event of fire, theft. Again, your lender may require this coverage if your car is financed.

6. Rental Reimbursement: Reimburses up to a specified amount per day for car rental or transportation costs while your car is being repaired following an accident.

7. Protection from an Uninsured or Underinsured Motorist Coverage: Protects you, passengers and anyone authorized to drive your car against bodily injury caused by an uninsured, underinsured or hit-and-run driver.

8. Towing and Labor: It will covers up to a specified amount for labor charges when your car breaks down, whether or not there is an accident involved.

9. Auto Replacement: The full car replacement value apart from the depreciated value.

Generally your auto insurance will cover the above sides.

Saturday, September 27, 2008

Savings which we need to do.

Savings seems to be a very huge term but its really needed in every life.The primary stage of every investment is called saving. Those who will save can invest in the future and can fulfill all their expectation.

Through savings we can able to allocate our money properly.Because, most of us don't know how to properly utilize our money.We are not aware of actually where our money is going. If we don't know properly where our money is going we can't make proper saving.

So to start saving, one should 1st start noting what you are spending on, include everything like a magazines, eating outside & so on. Don't forget to write your all expenses. If you will come to know where your money is going, you can able to make changes as per your requirement.

Secondly, start making budget of all your expenses by creating different categories starting from the basic needs. Don't forget to make a category for saving too. Even if you will start saving a little after few days you will able to see that your savings amount is going high and your dreams coming true someday.

Apart from this savings your future will also become secure.In order to let you have a world tour after retirement and enjoy with our grandchildren without fear through savings.

Beside this savings amount will make us more confident infront of this money world.

So, We need to make saving from our total earning money to secure us as well as our family.

Friday, September 26, 2008

Trade Execution: What all Investor need to understand

When you make an order to purchase or sell stock, you generally not think about where or how your broker will execute the bussiness. But this execution can impact the overall costs of the deal, including the price which pay for the stock. Here's what you should know about it.

It isn't an instant process:

Near about all investors who trade through online brokerage accounts ,they are thinking that they have a direct connection to the securities markets. But they don't. When you push that enter key, your order will go through the Internet to your broker - who in turn decides which market to send it to for execution. The same thing happens when you call your broker to place a trade.

While trade execution is usually and quick, it may take time. And prices can change quickly, especially in fast-changing markets. Because price quotes are only for a specific number of shares, investors may not always receive the price they saw on their screen or the price their broker quoted over the phone. By the time your order reaches the market, the price of the stock could be slightly - or very - different.

But if company advertise their speed of execution, they must not exaggerate or fail to tell investors about the possibility of significant delays. So you need to be very careful before choosing it.

Tuesday, September 23, 2008

Make your credit card more user friendly: some possible ways

These days credit cards are the easiest way to avail money .Due to the security purpose People don't like carrying too much of cash with them. So they are using debit & credit cards .

So, credit cards are become very popular now. Here, there is no need to pay instantly, hence we enjoy credit for some days. This is more popular among people who don't have the money to buy things but can get them by the way of credit cards.

Availing credit cards are very easy it makes the money easily available but once if you get addicted, it will be a major financial problem.

There is no argument that walking with cash is a big risk and for such situation credit cards are the best option .But continious using credit cards will land you somewhere you do not want to be. The very worst thing with the credit cards are the interest , In the primary stage they show us the some great dreams but it will become reality when outstanding in your account starts increasing, even if you are not using that card. So to avoid the all once should clear all his/her debts in time.

These are some following ideas :

1. Use the card for the amount which you can easily pay back in the allotted period of time.

2. Use it wisely and don't give your card number to any one.

3. Use card only when you don't have any another alternatives or in the case of emergencies, when you really need it.

4. Try to choose the one with the lowest rate of interest among all.

5. Report for the lost card instantly and get it blocked.

If anybody memorise all the above respective points in mind then that person can able to enjoy the full benefit of credit cards without any tension.

Monday, September 22, 2008

Life insurance, especially tailored to meet your financial needs:

Life insurance ensures that your family will receive financial support in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It protects your family from financial crises.

In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably. Life insurance also act as an ideal tax-saving scheme.

Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance.

All of the above Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.

Monday, September 15, 2008

How negotiations can make you debt free:

Debt negotiation is the most correct way of contacting your creditors & working out a settlement of a lump sum pay off your total debts.If you are not able to make the payment then creditors will start sending letters or making repeated phone calls to pay your bills.Sometimes they can even give you the offer for settlement on the outstanding balance if you agree to pay the lump sum amount with in 10 to 20 days.If you are unable to accept the offer and make the payment, the settlement offer will go void.They will offer you different ways of debt solutions so that you are ready to pay back your bills.

Way of nagotiations:
You should be able to do this directly or if you need help,contact a reputed campany offering debt solutions. You will find many professional debt negotiator, to set up arrangements with your creditors.It is not uncommon to pay just 50% of the outstanding balance because the creditors want to get their money back, even by offering some huge discounts.

If you have some ready amount of money, then you should accept such kind of settlement offers from your creditors. This way you will be save the most of your money.

In case you are falling short of money to pay the debt settlement amount, there are ways to arrange the required amount.You can use the money from your savings, tax refunds,home equity loans or refinancing of an existing mortgage.

Prifessional debt negotiators will set up payment plans with your creditors so that you don't miss the settlement offer given by your creditors on a certain period of time .You may even ask help from your family or friends to pay the settlement amount. If you are able to take care of issues , you might save yourself from some bad situations like garnishing your wages or creditors taking you to the court.

While settling the debts with your creditors, you need to focus on those accounts that are charged the highest interest rate & it will make a drastic change in your budget.

Thursday, September 11, 2008

Financial awareness gives you financial security:

Financial world is very 1st changing like our daily life so we need to update ourself with all those financial changes otherwise it will not make you financially stable.
Here are few steps below which will give some ideas to manage your finances:
Make your life debt free through consolidation:
Debt consultants try to make your life debt free in an organized way.They will guide you to deal with your debts better & also help you to estimate your expenses and repair your credit.

Repair your credit:
Walking with cash is a big burden and for such situation credit cards are the best option.But it will create some unavoidable debts. So,to repair your credit use the credit cards when there is no other alternatives, choose lowest rate of interest rate which will make you debt free.
So,these are the possible ways to make you financially secured.