Category: Finance

Investors are getting smarter and prefer to invest in mutual fund schemes to earn more profit on their investment.

In India, there are many companies. Some of them are top performers:

  • Franklin Templeton Fund
  • Motilal Oswal Multicap
  • SBI Bluechip
  • ICICI Prudential Bluechip
  • L&T India Value
  • L&T Tax Advantage
  • ICICI Prudential Equity & Debt Fund
  • SBI Magnum MultiCap Fund
  • DSP Equity Opportunities Fund

There are many ways to apply for schemes. Most of the companies have recently introduced online application method. They have directly tied up with most of the major brokerage houses like ICICI to apply online for the schemes.

If you have an online share trading account, you can apply online for mutual funds. For these investments, they have a separate section. Go to the page and transfer funds from your bank account to the investment section of the online trading account.

You can then select the schemes in which you want to invest and choose the amount for which you want to invest. After deciding these details, you can apply online for mutual funds. For the current date, an online account will process your application and the units will be allocated to the prevailing NAV.

The fund will also be credited to your online account and you can redeem the scheme at any time on the trading website. You can also invest via mutual fund broking firms, mobile apps, etc.

You should do some primary homework -why you are investing, identify your financial goal, how much time you need, how much risk you must take, etc. 

However, you should do some necessary homework before arriving here. First, ask yourself why you are investing in mutual funds. It will help you identify your financial priorities.

First of all, you should find out how much time you need to achieve those goals. Second, you need to figure out how much risk you must take to achieve those goals.

Select your mutual fund schemes according to your financial goals

Debt mutual funds:  As soon as these basic facts are revealed, you will choose your mutual fund schemes. As a rule, debt mutual funds should be preferred to achieve short-term financial goals of less than three years.

You can also choose debt mutual fund schemes that match your investment horizon. For example, to park money for a few months, you should select an ultra-short-term plan.

Equity mutual fund schemes:  To achieve your long-term financial goals, you should consider investing in equity mutual fund schemes. The long term goal should be at least seven years away.

Equity is perfect for pursuing long-term goals because it has the potential to deliver higher returns over the long term than other asset classes.

Hybrid equity funds scheme: You can consider investing in conservative hybrid equity funds for the medium-term goals of three years. You might consider investing in an aggressive hybrid scheme for a five-year purpose.

Note: Always choose a plan with a consistent record of performance. Keep an eye on your investment, as well. You should review their performance at least once a year in relation to their category and benchmark.

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Owing to the ease of access, substantial loan amount and prolonged tenor, personal loans are turning into favourable finance options for many individuals.

The personal loan domain witnessed a growth of 20.4 % between 2017 and  2018. These collateral-free loans have no end-usage restriction, and the amount can be used for serving various personal and professional needs. 

Additionally, financial institutions and NBFCs offer Flexi personal loans to lower your EMIs and save you money. The Bajaj Finserv Flexi Loan is one such advance option that offers you with multiple benefits. 

What is a Flexi loan? 

Also known as Flexi personal loans, these are types of advances availed to meet your immediate financial requirement. Under this, a pre-determined credit limit is disbursed to your account, and you can make use of any amount as required throughout your loan tenor.

Interest is calculated for only the amount withdrawn and not on the total principal amount. As and when you repay the amount withdrawn, the application of interest will be stopped. 

Flexi loan vs personal loan- what is the difference? 

Personal loan –  Being a regular term loan, you are required to meet its eligibility criteria and documentation process after which you can apply. After your application is approved, the sanctioned loan amount will be transferred to your account directly.

Your EMIs starts after one month from the date of disbursal. Your EMIs has two components- principal amount and interest. The EMI amount will remain constant throughout your loan tenor. 

Flexi loan – You are required to meet its eligibility criteria and submit some specific documents to apply for a Flexi personal loan. You get a pre-determined or pre-approved limit that is transferred to your account.

You can withdraw any amount from your pre-set limit at any time from anywhere. Also, there are no restrictions on the number of withdrawals, and you can use your amount as and when required. 

You can opt to pay interest-only EMIs with your Flexi loan for the initial tenor. Your interest is calculated only on the amount utilised and not on the entire principal amount. 

You should know the difference between both the advances to know flexi personal loans vs term loans , which lower your EMIs. Let us understand the difference with an example. 

Example 1 – Personal loan 

Suppose your loan amount is Rs. 15 Lakh availed for a tenor of 48 months at an interest rate of 14%. The calculated EMI will be Rs. 48,750 (including principal and interest) throughout the tenor. The interest rate will be calculated on the principal amount irrespective of the amount you use. 

Also Read: Predatory loan: Know its characteristics and ways to get out of it

Example 2 – Bajaj Finserv Flexi Loan

Let us consider the amount of the above example, now suppose you use Rs. 5 Lakh out of the total amount. The interest rate that you are required to pay for 30 days is Rs. 5,833. To make the most out of your Flexi loan, you can repay your withdrawn amount (Rs. 5 Lakh) at the earliest to avoid accruing interest on it.  However, you can repay the withdrawn funds even at the end of the tenor. 

With Flexi Loan, Bajaj Finserv also brings you pre-approved offers to reduce the hassle of the application process. You can take a look at your pre-approved offer by sharing minimal details like your name and phone number. 

To avail, a Bajaj Finserv Flexi Loan your must be 23 to 55 years of age and should have a stable source of income. Besides, only a resident of India residing in any city where the lender operates is eligible to apply.  

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Investing funds can be tricky when you are just starting earning and investing. Building an investment portfolio is an important process one goes through in their working years. It is essential to figure out which investment instrument suits your income range and budget the best.

Sometimes it is smart to choose a short-term risky investment plan like mutual funds. In other situations, it is wise to invest some amount in a secure long-term investment plan like Bajaj Finance Fixed Deposits. 

A robust investment portfolio contains several investment instruments which serve different purposes of the investor. For the working professionals, Employees’ Provident Funds plays an essential role in their investment profile.

Since it is a crucial part of the investment profile, it is necessary to keep a record of all the activities related to your EPF account. You should know how your employers are contributing to your PF balance, your UAN number should be activated, and other details like your PF number. 

Know Your PF Number Online 

Here are a few steps to know your PF Number Online with the help of your organisation’s name. You can also find your PF number with the help of your UAN portal. 

Step 1: Login to your UAN Member Portal

To know your PF number online, you need to login to your UAN member account on the official EPFO portal. To login to your UAN member account, you will need your unique UAN ID which is a 12-digit number and your registered password with the portal. 

Step 2: Go to Your Profile 

Once you have logged in to your UAN member account, go to your profile. Your profile will have your details such as your name, address, your Aadhar details, PAN number, bank account details, and more. 

Step 3: Select Your Organisation

Your profile will also display all the organisations you have worked with and the organisations who have contributed to your PF balance. It is important to note that your UAN ID is a unique ID from the EPFO, but every organisation you work with will have a different PF number associated with them.

To know your PF number with the help of the organisation’s name, you need to click on that organisation’s name in your profile. This will display all the details associated with that organisation such as the organisation’s name, your designation, your salary details, the PF contributions made by the employer. You can find a detailed PF balance in your online passbook on the EPFO’s official website. 

Once you click the organisation’s name, you can find your PF number associated with that organisation. It gives you various other details, as mentioned above. 

All your PF account details are available on your UAN account. Your UAN account is a single account which has details of all your PF accounts. Finding your PF number using your UAN account is easy. Once you know your PF number, it is easier to check your PF balance online.

Ways to Check Your PF Balance

Below are some of the ways you can check your PF balance both online and offline. These are some of the simplest ways to check your PF balance.

UMANG App

Unified Mobile Application for New-Age Government is a mobile application which provides several government services. You can check your PF status by downloading this app and completing the one-time registration which is required for you to log in to your UAN account through the application. The app gives you a detailed passbook option where you can access all your PF related information. 

EPFO Website

Employees’ Provident Fund Organisation has an official website where you can check your PF balance online under the ‘For Employees’ services in the online services provided by the organisation. This makes it very easy to check your PF account details online. You can also claim your PF balance online through the official website of the Employees’ Provident Fund Organisation 

Missed Call and SMS services 

You can check your PF balance offline through the missed call and SMS service provided by the EPFO. You can avail these services with the phone number which is registered with your UAN account.

It is also mandatory for the employee to have their bank details, Aadhar Card, and PAN card linked with the account to avail these services. 

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Provided Fund or EPF (Employees Provident Fund) is a savings scheme backed by government policies which help individuals to accumulate a large corpus up to their retirement. As per this scheme, 12% of the employee’s salary is contributed towards the EPF account every month and an equal contribution is made by the employer as well.

The rules and interest rate on the PF amount is decided by the EPFO (Employees Provident Fund Organization) every year, and the EPFO has also created an official portal to enable the individuals to check Provident Fund Status Online. Not only that, but the employees can also raise a claim to withdraw the PF amount using this online portal.

Let us see how an individual can check his/her PF status online:

The UAN number allotted by your employer must be registered on the EPFO portal to check your provident fund status online. If you do not know your UAN (Universal Account Number), then you can ask your employer.

Now, follow these steps to check your PF status online: 

  • Step 1: Go to the official website of EPFO. visit the PF website.
  • Step 2: To your extreme top left you will find ‘Our services’ option. When you click on it a dropdown menu will appear. Select ‘For Employees’ option from it.
  • Step 3: You will be directed to a new page where you will be able to see ‘Know your claim status’, ‘Member Passbook’ and a few other options under the ‘Services’ section.
  • Step 4: You can select the ‘Member Passbook’ if you want to check your PF balance. Also, you can click on ‘Know your claim status’ if you wish to check the status of your PF claim. After that, you will have to enter your UAN number and a CAPTCHA code.
  • Step 5: After that, you will be requested to select a member-id from a drop-down menu. After selecting the member-id you can click on ‘View Claim Status’ to know the status of your PF claim.

Alternatively, employees can also check their PF status by logging on to the UAN portal and following a similar procedure as described above. 

Investing in EPF is a good decision since your savings remain safe from changing market conditions, and the interest rate is also reasonably good. You can also think of investing in a fixed deposit if you wish to avail a higher interest rate.

However, the interest rates offered by bank FDs are quite less than those offered by Company FDs. Company FDs like Bajaj Finance FD can provide high-interest rate along with the safety of your invested amount as these deposits are rated highly safe by CRISIL and ICRA.

Let us see how you can benefit from investing in Bajaj Finance Fixed Deposit:

Interest rates 

Bajaj Finance FDs provide an interest rate of up to 8.70%, which is much higher than the current EPF interest rate. Therefore, retirees can grow their PF corpus upon retirement by investing in these FDs.

Laddering

You can start investing in a Bajaj Finance FD with a minimal investment amount of Rs. 25,000. The tenor ranges from 12 to 60 months and can be decided as per your choice. Such flexibility in investment terms helps you ladder your investments across different interest rate slabs and time periods, thereby ensuring maximum returns.

Bajaj Finance FD also allows you to invest in multiple fixed deposits through a single cheque using the multi-deposit facility. This feature enables you to choose different tenors and interest payout frequencies on your fixed deposits. You can predict your returns in advance by using the Online Fixed Deposit Calculator

Liquidity

Investors don’t need to break their FDs in times of financial crisis as they can avail a loan against Bajaj Finance FD. Such facility is not available with PF account.

Thus, investing in an FD is a safe and convenient option to multiply your PF corpus.

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