planning your children’s futures

Mutual funds are ideal investment options for planning your children’s futures

We have seen that equity is the best long term investment choice for our children. Good equity mutual funds through systematic investment plans (SIPs) are ideal investment options for children as they are growing up. Long term capital gains in equity funds are tax free. You can even save taxes under Section 80C by investing in Equity Linked Savings Schemes (ELSS). Financial planning for children is a dynamic process. As your children approach their life milestones like higher education or marriage, you need to rebalance your investment portfolio to have a greater allocation to debt investments where the risk is considerably lower, while you still earn a decent return. There are enough mutual fund products across risk profiles like equity funds, balanced funds, monthly income plans, income funds etc, that parents can choose when their child is growing to optimize the returns while ensuring that the risk profile of their investment portfolio is consistent with the financial plan for their children.

Parents can also opt for mutual fund child plans. Child plans also help earmark funds for specific goals, dividing the portfolio into several categories. This makes it simpler for a parent to monitor the investment for a particular goal. This segregation is important because each goal has a different time frame and, therefore, requires a different investment mix. For example, your child’s college or higher education may only be two or three years away and while his or her marriage may be five or six years away, prompting different investment choices for these two goals.

Some Quality Traits All Introverts Have, Even If They Don’t Know It

Some people assume introverts are socially anxious, but that’s not the case. Introverts just don’t handle social stimulation as well as extroverts do. If you’re an introvert and you feel down about it, this article will make you feel better. Check out these ten quality traits of introverts that you didn’t even know you have.

1. Introverts are good listeners.

Introverts listen before they speak. They watch from the sidelines and take some mental notes before they insert themselves into any social situation. This preparation allows them to enter a conversation confidently, without stumbling over their words or doubting the accuracy of what they say.

2. Introverts are self-sufficient.

Introverts are not dependent people. They believe it is foolish to depend on another person to take care of their material needs. This freedom makes them feel empowered, because they know they can manage any curve ball that life might throw at them.

3. Introverts are super focused.

Introverts concentrate with everything they’ve got. They make a point of paying attention to nonverbal cues that might reveal hidden meanings, because they know words are only half of the story. This ability helps them avoid potential misunderstandings.

4. Introverts are easy to please.

Introverts don’t need much to feel happy and content. They would rather stay home and enjoy a good book or bubble bath than go to a loud bar and buy expensive drinks. This distinction helps them save money and relax after stressful days.

5. Introverts are very observant.

Introverts identify changes in their environment very quickly. They will probably be the first person to notice a new haircut. This often causes their friends and coworkers to thank them for being so thoughtful.

6. Introverts are good at studying.

Introverts believe knowledge is power. They are intensely interested in the things that they care about and want to learn everything they can. This eagerness helps them become experts in their fields.

7. Introverts are trustworthy people.

Introverts can keep secrets. They know how hard it can be to trust somebody, so they won’t share a personal detail if you don’t want them to. This is exactly why introverts are excellent best friends.

8. Introverts are committed to their goals.

Introverts tend to be driven and disciplined. They don’t need approval from external sources, so they direct their energy to the pursuit of an ambitious goal instead. This ambition often turns introverts into highly successful people.

9. Introverts are in touch with their feelings.

Introverts are masters of their emotions. They reflect until they are able to understand the triggers that are responsible for their negative thoughts. This retrospection helps them dig deep enough to deal with entrenched self-defeating beliefs that limit their potential.

10. Introverts are thought-provoking when you get them talking.

Introverts have interesting things to say. They might not be fans of small talk, but that doesn’t mean they can’t be engaging in a deep discussion. This distinction is a common source of confusion. Introverts are often considered to be “quiet,” but that’s not because they don’t like people. They just don’t like to talk about trivial things. Introverts are passionate people who want to make the most of their days, so they’d rather not waste their time with a shallow conversation. If you want to find out how fascinating an introvert can be, simply ask them an intelligent question about a topic that they care about.

Do you see any of these ten traits of introverts in yourself? If so, tally up how many of these traits are true for you and tell us your score in the comments and share this article with your friends so they can join the fun, too.

SIPs beat Other Financial Investments

Investing in mutual fund equity schemes through systematic investment plans (SIPs) has yielded best returns for investors over a period of time. Buying equity scheme  units through SIPs, which involves pre-determined periodic purchases of units over a period of time, every month in the past five years has fetched 10 per cent to 18 per cent annualised returns.

SIPs eliminate the human bias. It encourages investments at all times, irrespective of the market levels. Investors will pocket good gains if they invest in SIP of funds with a good track record.

For instance, if an investor puts Rs 1,000 every month in UTI Opportunities Fund, a star performer among all equity funds - (Rs 1,000 x 120 months = 1,20,000.), he would have been sitting on approximately Rs 2,78,657.00  today, which  15 per cent returns.

SIP investments average out market volatility by a good measure. Also, it prevents investors from trying to time the market. It enables small investments at regular intervals.

SIPs tend to do well even in times of market underperformance as the (fund) pool is deployed at most market levels, thereby averaging out unit purchases at all price points.

SIP portfolios must have gone through the dips - buying more stocks as prices declined. Volatility also helps SIP portfolios in a big way. Funds that have managed to withstand the market fall have delivered better SIP returns.

Investors get more units for the same amount of money in falling markets. The units bought at lower price levels will appreciate when the market turns around, adding to the overall portfolio value. The variance in the performance of SIP and lump-sum (or one-time) investments is mainly due to the fact that SIP investors would have picked up additional units during the downturn.

How to invest in Mutual Funds in India ?

1) Through Agents or Brokers-. In this option you choose the agent and call him, he will come to you and fulfill all necessary formalities like collecting necessary documents for KYC purpose, taking signatures and submitting the forms to respective mutual fund companies. You no need to bother about processing part. This type investment is completely OFFLINE mode for you.

2) Mutual Fund Companies-All mutual fund companies provide you to invest directly. Here in this mode of investment first you need to download the forms, submit it with filling and submitting the necessary documents (if KYC not done previously). Once the folio (it is like your bank account number and will be unique) is generated , you can invest online.

3) Through Online Portals-Many have great misconception that investing through online portals like Funds India or Fundsupermart is best and cheapest mode of investment in mutual funds. But,these online portals even though not charge you anything upfront as cost, they collect the commission from mutual fund companies and will be adjusted to your NAV.

4) Through online Demat Accounts- This type of investing is through your demat accounts where you use this account for your stock trading or holding stocks. These stock brokers such as ICICI Direct, HDFC Securities or Sharekhan offer you investing in mutual funds. But usually each SIP or investment is charged here directly from your investments and also they receive commission from respective mutual fund companies. So even though this option seems to be online but costlier than the option of Online Portals.

5) Through CAMS or Karvy-These are like middlemen between you and mutual fund companies for record keeping and processing and will be appointed by mutual fund companies. Currently they offer online investments only for selected mutual fund companies.

6) Banks- Banks have access to your account details. Their only motive is sell and are least bothered about analyzing your requirements. Also you are not sure the current employee who is very much friendly with you now may be there for long in the same bank and branch to guide you in future. Hence it is always best to AVOID investing through Banks.

So there are many ways to invest in India either online or offline according to your comfort. Choosing the right service for investing will actually ease your life.

RELIANCE MONEY MANAGER FUND ATM CARD

Reliance Any Time Money CardIntroductionDebit cards are incredibly handy for daily expenses and general cash withdrawal needs. They provide the flexibility to withdraw cash from ATM or to make purchase at merchant establishments. Initially the use of debit cards was confined to bank accounts.

A traditional Debit Card can be linked to

·         Saving accounts

·         Current account

On the other hand, Reliance Any Time Money Card linked to Mutual Fund Investment

Reliance Any Time Money CardReliance Mutual Fund (“RMF”) offers Reliance Any Time Money Card (“the card”), linked to mutual fund schemes offering you instant access to your investments. The card will allow you to withdraw / spend against your own mutual fund investments by providing you access in Visa-enabled ATMs and merchant outlets across the world.

Key Features of Reliance Any Time Money Card

·         The card offers you the benefit of Mutual Fund Investments along with the convenience of debit cards

·         Allows cash withdrawal and transaction in Point of Sales (PoS) terminals in Visa-powered ATM / PoS terminals

·         Allows Balance Enquiry in Visa-enabled ATMs

·         You have the choice to withdraw from any scheme linked to the card in HDFC Bank ATMs

·         In non-HDFC Bank ATMs and PoS terminals, transaction will happen only through Primary Account only (i.e Reliance Liquid Fund – Treasury Plan or Reliance Money Manager Fund)

·         The Card will offer instant liquidity up to a permissible limit as fixed / determined by the Bank for ATM cash withdrawals or 50% of the balance in scheme account or Rs. 50,000 (whichever is lower) as set by RMF, per day, from time-to-time

·         You can spend up to 50% of the balance in the primary scheme account or Rs. 100,000 per day (whichever is lower) at PoS terminals

Primary Scheme AccountPrimary scheme account on the card can only be either Reliance Liquid Fund – Treasury Plan or Reliance Money Manager Fund. It is mandatory to have one of these schemes as the primary scheme account in order to apply for the card.

Type of Transactions3 types of transactions are allowed through the card.

·         ATM Cash withdrawal

·         ATM Balance enquiry

·         Purchase at merchant establishments

Card is accepted at over 1.8 million Visa-enabled ATMs and over 30 million merchant establishments that accept visa.
(Source www.visa.com)

Transactions at HDFC Bank ATMAt HDFC Bank ATMs, you get the flexibility to withdraw cash / do balance enquiry from any of the mutual fund scheme linked to the card.

a. Withdrawal:

·         Corresponding Scheme and plan associated with the card are displayed in case of cash withdrawal

·         Post selecting the scheme and a plan, amount needs to be entered. If the withdrawal amount is within the limit, transaction is honored and processed

For example,

If you have following three schemes in your portfolio of investment

Scheme Name	Balance in account(in Rs)
Reliance Liquid Fund - Treasury Plan (primary scheme account)	20,000
Reliance Dynamic Bond Fund	20,000
Reliance Income Fund	10,000

·         Suppose you do a transaction at Visa enabled ATM for Rs. 10,000. The transaction will go through as there is a balance of Rs. 20,000 in the primary scheme account (Reliance Liquid fund – Treasury Plan)

·         At the same time once the above transaction has been completed, you will have exhausted the daily limit for the primary scheme account. Hence all other subsequent PoS transactions, if any, will be declined. (on that day)

·         However, you have the choice to withdraw Rs. 10,000 or Rs. 5,000 (subject to the limits mentioned in the key features) from Reliance Dynamic Bond Fund or Reliance Income Fund respectively through HDFC Bank ATM

b. Balance Enquiry:

·         HDFC Bank ATM displays all the schemes and plan associated with this card

·         Post selecting the scheme and a plan, the corresponding balance is displayed

Transactions at Non HDFC Bank ATMCash withdrawal / Balance enquiry at other Visa ATMs

You can access only primary scheme account through the other Visa ATMs. In case of balance enquiry only the details of the primary scheme account can be accessed. Similarly in case of cash withdrawal request, amount will be dispensed from the primary scheme account only.

Eligibility

·         Primary scheme account on the card can only be either Reliance Liquid Fund – Treasury Plan or Reliance Money Manager Fund. It is mandatory to have one of these schemes as the primary scheme account in order to apply for the card

·         It is mandatory for investor to provide mobile number and email id to the RMF in order to avail the card

·         The card shall be issued only to individual Resident Indian investors, who are aged 18 years and above

·         The card shall not be issued to HUF, NRI, Private / Public Ltd Companies, Partnership Firms, Proprietorship Firms, Trusts and any other category of investors as defined in the offer document

·         Further, the card shall be issued only in respect of folios where holding basis is 'Either or Survivor / Anyone or Survivor' or Single. No card shall be issued where mode of operation is JOINT

·         The card will be issued only after realization of cheque

·         Currently only one card can be issued per folio / master account. In case of multiple holders the card shall be issued only to the 1st holder

General Guidelines

·         The facility will be in addition to the conventional method of redemption i.e., physical redemption request through the Designated Investor Service Centers of the Reliance Mutual Fund. In other words, investors can opt for any of the redemption facility as per their choice and convenience

·         No card shall be issued for subscriptions through DDs / third party cheques

·         Withdrawals through this alternative mode of redemption can be stopped temporarily or permanently for the want of any statutory compliance, at the directives of RBI and / or SEBI or any competent statutory regulatory authority

·         The Trustees reserves the right to discontinue / modify / alter the said facility on a prospective basis subject to compliance with the prevailing SEBI guidelines and Regulations

·         The card is valid in India and abroad. Card is not valid for payment in foreign currency in Nepal and Bhutan

·         Investors should ensure that while using the card outside India, they are doing so strictly in accordance with RBI's Exchange Control Regulations, as prevailing from time to time. The onus of ensuring compliance with the regulations is on the holder of the card

·         SEBI guidelines on uniform cut off timings for redemption shall also be applicable to the aforesaid facility of alternative means of redemption

Card LimitsAt ATM: - In a day you can withdraw up to 50% of the balance in scheme account or Rs. 50,000 (whichever is lower) from an ATM or up to a permissible limit as fixed / determined by the Bank.
At POS: - In a day you can spend up to 50% of the balance in primary scheme account or Rs. 100,000 (whichever is lower) at merchant outlets.