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Invest In Mutual Funds Or Bank Fixed Deposits

I have often seen people planning to Invest in bank Fixed Deposits rather than Equity related Mutual Funds inspite of the growing Indian Economy and rising stock market. Though the times are changing and people have started looking at Equity Investment schemes, but still its only the minority of people savings going into the equity market.

Indians are skeptic about investing in Equities. Reason behind so is lack of knowledge and general awareness of the benefits. One needs to understand that stock markets are the best way to benefit from a country which economy GDP is growing over 8.5% year on year. Stock market basically resembles a Nation’s financial condition which of India is going to get better n better.

Indian Money Is Way Too Conservative

Fact figures suggests that 48% of total American savings goes for investing in schemes related to equities. On the other hand the fact figure for Indian savings money routed to equities stands at a merely small total of just 2%. No wonder, both the Indian Government and leading Indian Stock Exchanges are always keen to generate interest and awareness within the common people indicating towards the benefit of investing in equities for the long term.

Its the lack of Financial Education which keeps Indian savings money away from the Equities, since they are not ever formally introduced to financial planning and Investing. Majority of people believes that small investors cannot earn money from stock market, which absolutely is just a myth and nothing more.

Indian Investors still prefers the traditional way of Investment like Fixed Deposits. In fact Fixed Deposits are so famous and traditional that, during daughters marriage, father often gifts Fixed Deposits!

What Is A Bank Fixed Deposit?

A fixed-income debt security issued by banks. A Fixed Deposit is like loaning the bank your money and in return, they pay you interest which is currently between 8-9.5% p.a.

At this interest rates your money will double approx in 7-8 years. Too less, too late? Read on

Why You Should Not Be Investing In Fixed Deposits?

The most unusual characteristic of a fixed deposit is that the funds cannot be withdrawn for a specified period of time which is usually 3 years since deposit for any reason.

Changes in the going interest rate may also rise to a point above and beyond the interest rate applied to existing deposits done with the banks. This means account holders are actually earning less interest with fixed deposits than with other types of products.

What is a Mutual Fund?

A Mutual Fund is a investment scheme maintained and run by professional fund managers working under the name of a Financial Institute or a Fund House. Money is being collected from different and many investors and then collectively put in a pool account from where the fund managers makes Buy and Sell trades according to there own group research and investment objectives.

Dalal Street people prefers you thinking that what they do with your money is some rocket science and you are absolutely not the right person to take your own financial decision so that they keep earning fat commissions for themselves you being entrusting them your hard earned money.

Though its a different case that of course you can also invest your money yourself with little bit of research and with the help of expert Indian stock advisory services like Winfromus which generates higher returns than the different Mutual Fund schemes.

But never the less, there are some real good fund managers out there too, doing what they are best at and most of the good names has been successfully generating 13-15% Compounded Annual Growth Returns (CAGR) since the past 5-6 years.

CAGR Projection over the next 3 years from Indian Stock Markets

Conservative projection suggests that the Indian markets can deliver CAGR of 15-18% over the next 3 years and optimistic like me expects 20% CAGR over the next 3 years with the right selected stocks and sectors.

20% CAGR is not just a dream, but it is also fundamentally backed by growing GDP, country’s financial condition and over all economical and business development which is on course and expected to grow at a descent pace.

Fixed Deposits Returns are Guaranteed, Mutual Funds Are Not – What about my money safety?

Well, for a matter of fact nobody can guarantee you returns while investing in equity via any possible way, since it involves risk. But theres a way to cut the risk virtually to Zero levels and still get benefited the most. The secret is Systematic Investment Planning (SIP).

Systematic Investment allows you to stay invested without worrying to time the markets or about the volatility we see in stock market. In fact SIP works out best when markets are volatile. The funda of systematic investing works on a simple formula invented by world’s most genius ever Albert Einstein – Power of Compounding.

While SIP, rupee cost averaging and compounding of returns/interest earned on principle over a period of time compounds together and puts significant impact on wealth creation over the long run and stock market being a cyclical asset, it is very likely that you will see a higher end where you may take profits and then go conservative.

Do you know how much money can be made on investment of just Rs 10,000/- per month at a CAGR of 20%? I have done the maths, here’s the result –

* Rs 10k/month Invested for 5 years at 20% CAGR to become 10 lacs
* Rs 10k/month Invested for 10 years at 20% CAGR to become 35 lacs
* Rs 10k/month Invested for 15 years at 20% CAGR to become 95 lacs
* Rs 10k/month Invested for 20 years at 20% CAGR to become 2.4 crore

Eventually In 25 years 10000/month @ 20% CAGR (compounded annual growth rate) to become 6.1 crores and in 30 years 10000/month @ 20% CAGR to become a whopping 15 crores. The longer you invest, the higher would get your returns.

Think Mature, Aim Higher, Plan and Set A Goal…

Fixed Deposits cannot generate the kind of returns stock markets will and theres no doubt about it. If you are young and want to Invest and grow your money big, equities are the way to go. Don’t be skeptic and look at the brighter side of investing in Stock Market, you don’t get such money making opportunity in a lifetime.

Returns of fixed deposits may not even beat Inflation rates, then whats the use of saving money in them and allowing money to sit idle to generate lesser returns on investment when a simple SIP in equities can do a better performance for your money? Think about it..

Happy Investing!!

Find the Correct Vibrational Place to Attract Financial Abundance

The universe can provide a steady stream of abundance and if you believe and attain a vibrational alignment with this abundance you will receive your share and it won’t be difficult to do and it doesn’t have to take much time because you are already well along the way.

What often happens with most people is they unwittingly provide resistance to their natural financial well-being. If they could shift their vibration around money from worry and concern to enthusiasm and fun their financial well-being would be assured. As your resistance is replaced with allowing and your doubts replaced with belief your abundance will become obvious and real. When that emotional shift occurs, immediate financial manifestations will be the evidence of that shift. If I can convince you that the path to financial abundance is simply an emotional path, in other words when you focus on how you feel and care about how you feel and you feel good most of the time your abundance and in fact anything you desire will become a reality.

Your work is not to go out and try and make this happen through action and effort but simply to allow and relax into a comfortable and gradual rediscovery of your natural state of relief and ease and well-being.

When you attain financial abundance it does not mean that you deprive someone else of theirs. Because the way the universe works is that abundance expands proportionately to match all desires. If you can find joy and happiness when you see the success of another then your resistance disappears and your own success will soar. The fastest way to get an improved financial condition is to look for pleasing things that you already have. For in focusing on that which is already working in your life, more success will come and it will come quickly.

Financial abundance does not occur in one’s life through hard work or good luck or favouritism. Financial abundance is simply the universe’s response to consistent thoughts and feelings of abundance. When you are able to accomplish the feeling of abundance within yourself before the evidence has shown itself to you, the evidence must come and it will continue to come as long as you maintain the feeling of abundance. I know this because I have created financial abundance in this way in my own life.

Any time you are feeling good no matter the reason you are a vibrational match to the feeling of abundance. In your absence of resistance everything that you have ever asked for is making its way to you through the law of attraction. With each passing day your vibrational point of attraction will continue to improve until there will be an obvious tipping point. For a while the only evidence of your financial progress will be your improved emotional state of being. And if you let that be enough, not focusing on where your finances are at the moment, financial improvement will come.

Know that you are doing extremely well and abundance is flowing to you and the abundance that you seek is coming One of the best ways to do this is to feel gratitude and appreciation for where you are and excitement and enthusiasm for what is next.

Effective Business Card Design For Financial Advisors

Financial Advisors have a certain image that they need to portray, and that really comes across in the business cards that they hand out. Financial advisors need to show their conservativeness, formality, and stability, along with the reputation of the company they represent.

The business card design is so important in this field because you are dealing with money, and people are very concerned about where their money will go and what kind of profit they can make with it. This is a huge business, and there are thousand of financial advisors to choose from, so the first impression can be a huge factor in whether they choose you. The design should be both bold, and traditional. You want to show them that you can invest their money wisely while taking a little risk to ensure more profit. There shouldnt be any bright colors or pictures, just confident lettering and possibly a small clip art design. A financial advisor wants his or her business card to say they do the job with self-belief and reliability.

If you do have a picture, it should be of the company logo. The brand name of the company is what many people look for when choosing a financial advisor. The larger the company the more trust consumers tend to have. Color business cards are the way to show off your style and innovation without deterring from your position of investing their money. The colors should be strong but not bright. A deep blue, or forest green shows status and importance without seeming arrogant or trendy. When investing money consumers arent looking for new trends over the long run, they are looking for permanence.

When putting information on your business card design take into account what type of financial advising you offer, and whom you are giving the card to. For the most part financial advisors are looking for more people to invest with them. Include the words of the company logo, and the company name and address. Dont put information that you dont need. Although it should be full, you dont want the business card to be overwhelming. Fonts are also important on a financial advisors business card. Again, they should show reserve in your business, but they should portray the type of investing that you do.

More important in the financial world then even the business card design, is the way you hand out your business card. In this day and age people tend to give out business cards like a deck of cards, by flipping them across tables. The correct etiquette is to hand them out before business meetings. Hand the person the card with the readable side up, with a thumb on the upper corner so that they can immediately read the card. When receiving the card, have the respect to read it in front of them, so that not only can you see what it says, but also you can put the card with the face. This may be your only chance to earn their business, so make your business card count.

Financial Hardship Loans

Auto title loans have helped many people in a time of need. These types of loans are granted to people who own their car outright and use that car as a form of collateral. Depending on the type of car that you have, age, mileage and condition will depend on the amount that you can receive for the car. Interest rates and repayment schedules are based on the individual auto title loan company.

These auto title loans are a great way to get a quick fix to a bad financial situation. Many of us find that emergencies do not always happen on payday or at a time when they are financially secure. They happen when least expected and the need to fix the problem is urgent. You may not have the time, or the credit, to apply and wait for a conventional loan. In that scenario, if you own your car, you may consider a auto title loan.

Car title loans can assist you when you need it most. If you need to fill a prescription, visit the doctor or even buy diapers before payday comes, this quick fix loan can help. Many people have found that when they are in a crisis this is the fastest way to get through a problem without the hassles of trying to get a personal loan.

There are no credit checks with a auto title loan. If you own the car you can get a loan. This is very helpful to anyone with bad or poor credit. You do not have to wait for approval, you do not have to have the perfect credit score, you just need a clear car title in your name.

If you fail to repay the loan the car will automatically become the property of the loan company. You will forfeit all rights to that car and you may even incur penalties for the cost the loan company has to transfer the title and reclaim their losses. If you use this service in a time of need you really need to be sure you can repay the loan. Auto title loans can be a life saver in a bad situation and, if used right, the help you desperately need. When you apply for a title loan make sure you are aware of all the stipulations and can repay the loan.

Why has My Financial Planner Never told me about Self-Directed IRAs

Traditionally, custodians control IRA investments and may not always promote all the investments approved by the IRS. They have created the notion that stocks, bonds, CDs, annuities and mutual funds are the only investment options available. Over the past few years, there has been an increasing awareness about the use and advantages of self directed IRA accounts. Many savvy investors have begun to move away from the volatile stock market, and divest into alternative investment available through a self directed IRA.

Self directed IRA accounts allow individuals to enjoy diversified investments not readily available through most custodians. Almost any investment in allowed except: collectibles (such as coins, artworks, stamps, etc.) and life insurance contracts. If your financial planner does not offer any of the investment options that are allowed by the IRS, it may mean the time has come to approach another financial planner more familiar with self directed IRA accounts. .

The Self Directed IRA as a wealth builder

The self directed IRA is an effective tool that you can use to build your wealth while putting total control in your hands. One of the reasons why your financial planner may not have explored all the investment opportunities available with an SDIRA is that their services may no longer be required, resulting in loss of revenue to them from your retirement account. The latest IRS rules make it easy for you to invest your IRA account in alternative investments. You can put money into commercial and residential real estate IRAs, buy a business entity, loan your money for mortgages, notes, tax liens and foreclosed properties. You can be the manager of your property. If you do not have all the funds to invest in real estate, you can opt for an IRA loan to leverage your investment. A real estate loan obtained with your self directed IRA must be a non recourse loan.

If you have not heard of a self directed IRA before, it is possible that your financial planner does not deal with all the investment options that are allowed. For example, if your financial planner is a bank, your investment options are limited primarily to CDs. If it is a brokerage firm, you can only invest in stocks and bonds. Moreover, since your financial planner more or less manages your entire retirement account, they may not want to present you with investment options from which they cannot earn revenue. After all, their services are offered for a fee. To protect their fees, they may withhold information, offer very sketchy details, or discourage any alternative investments altogether.

It is also likely that your current financial planner assumes that you don’t want to control your own retirement investments, simply because its been implied it by them managing it for you. Some people actually prefer to status quo their decision-making and leave it to an expert. In fact, many people are unaware that they can invest in real estate with their IRA. Those that want to, however, do make their own investment choices and enjoy tangible returns. Real estate investments make a good choice particularly in combination with an IRA loan which, in addition to protecting your various IRA assets, also indemnifies you personally from all liability. You can also use your IRA loan to refinance a property you own free and clear in your self directed IRA. Thus, a self directed IRA, potentially allows for larger and more profitable investment options, compared to traditional investments.

For more information regarding Real Estate IRAs, please visit IslandViewMortgage.com