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Investing in People is the Reason for this VC’s Success (Amit Raizada of SBV)

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Invoicing Impairments - Why Templates Are Ideal For A Quick & Easy Solution

Nothing about the venture capital industry is easy. Between the long hours, the pervasive risks, and the feeling of not knowing whether a certain venture will yield a return, life as the head of a VC firm is often a combination of calculations and stress. At times when I’m overloaded, I find it helpful to pause and reflect on the reasons that I chose to become an investor – and to think critically about the common principles behind every one of my ventures. 

I encourage all aspiring investors to do the same. Without having a clearly defined set of principles, it’s easy to get lost as a venture capitalist. When you’re approached with hundreds of potential investments each year, how do you decide which to fund and which to discard? How do you know whether a venture will fit well within your portfolio or act as a headache-inducing outlier? Sure, statistics, data charts, and graphs answer a great many of these sorts of questions, but there’s no substitute for a concise set of values when faced with these decisions. 

Here is the essence of the investment philosophy that underlines the success I’ve had as founder and CEO of Spectrum Business Ventures

I always invest in people. 

I pursue investment opportunities that enrich consumers’ lives and change the world for the better. Before engaging in a venture, I find it helpful to think about the fundamentals: What do people really need or want in life? And how does the product or firm in question help them attain it? 

Through this strategy, I’ve financed ventures that develop groundbreaking cancer treatments and revolutionize sinus-care procedures. I’ve even helped companies that launch satellites into orbit and contribute to NASA missions. 

I invested in critical warehouse space in the vicinity of major airports to facilitate same-day online purchases deliveries. And I’ve always sought to create unparalleled entertainment experiences, which I believe is just as essential to the human condition. I have introduced innovative models to retail and hospitality, investing in cutting-edge restaurants like Tocaya, Bounce, and Catch LA that diverge from conventional restaurant wisdom in favor of pioneering new experiences.  

But when I say I invest in people, I don’t just invest in the consumer – I also seek to invest in the people developing the product. In examining investment opportunities, I never consider failure a disqualifier – instead, I see it as a prerequisite. While I engage innovators with proven track records of success, I believe that true innovation is a process and that the best strategic partners are those who have experienced—and learned from—past failures. 

I invest in the products, services, and opportunities that change the course of consumption. 

I’ve always been an avid observer of business trends, and I closely watch the behavior of Gen Z and Millennials as indicators for future markets. I use their preferences to craft long-term investment strategies that pursue the products and experiences that will dominate the market in the coming decades. 

This principle has played a significant role in many of my investments. Tocaya is perhaps one of the best examples of this. Serving fast-casual food with a plethora of vegan and low-calorie options, Tocaya plays directly into the preferences of the health-conscious younger generations.  

This strategy also spurred my investments in esports. After watching my teenage sons become fascinated with online gaming, I began to wonder whether there’d be a viable market for this new fixation. After doing some research, I invested in an esports franchise and eventually helped build out the esports market as a whole. When I first invested in esports, this nascent industry was often ridiculed by pundits. Now, esports has its own section on ESPN’s website.

I’m focused on the consumer of the future – and I’m often willing to accept short-run losses to seize a foothold in the industries that will define the economy of the 2030s, 2040s, and 2050s. 

I take risks in pursuit of bold ideas 

My firm, Spectrum Business Ventures, stands by its long-standing motto, “We see the world differently”. When evaluating investment opportunities, I encourage my team to look past conventional wisdom. Some of my most successful investments have come from this approach.  

One key way to do this is to look for the peripheral investment opportunities that a major new industry may create. Take gift certificates, for example, which created a boom as they transitioned from paper to plastic. Rather than invest in the gift card industry itself, I invested in a company that provided myriad services to the businesses that wished to issue gift cards. I found a market ripe for innovation and financial-return within a wider market. 

My decision to purchase warehouse space follows similar logic. Online shopping now reigns supreme, but rather than found my own online venue and try to compete with the likes of Amazon, I decided to look to the periphery. No online supplier like Amazon (and especially smaller players) could get by without warehouse space, allowing my firm to take advantage of a market within a market. 

My investment philosophies are by no means universal. These principles have guided me through nearly two decades in the venture capital industry and into many of my most profitable investments, but the whole point of having an investment philosophy is to have guidelines that work for you. 

I encourage aspiring investors to reflect on the principles they hope that their portfolio will mirror. To do this, you’ll need to consider a few questions: 

In what kind of industries do you wish to invest? What products or services do you think people need? How do you wish to seek out new opportunities? How do you hope to choose between those opportunities once you find them? 

Formulating answers to these questions is integral to one’s development as a venture capitalist. 

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Need an Online Line of Credit? Here’s How to Make it Secure

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credit

Almost everything is easier when you do it online — whether it’s arranging a dentist appointment or buying groceries. Even getting an online line of credit is more convenient than one you’d apply for in person.

This much you know from your snug spot on the couch, laptop open and ready to find a financial institution. But before you hit apply, you’ll need to know the scoop on online security.

You should protect your info anytime you go online, but it’s especially important when it comes to getting a line of credit. One misstep could expose your personal information, handing the keys to your financial profile to eager fraudsters.

Keep your data safe the next time you look for an online line of credit by checking out the tips below.

Work with a Licensed Financial Institution

An online line of credit can come from a variety of places — from household names to up-and-coming mobile services.

But how can you tell if it’s a legitimate company if you’ve never heard of it before? Look for a license!

The only way a financial institution can get and maintain this license is if they abide by the state lending laws it does business in. A license also proves they follow broader federal laws, including those that protect your privacy.

Check Their Online Reputation

A license is the bare minimum that proves a financial institution isn’t providing predatory or abusive loans. But it doesn’t tell you anything about the character of their business, like how they treat their customers.

You may find the answer to that question in online reviews. Read what previous customers have had to say about their experiences.

Do they sing their praises, or do they want to air their grievances?

Demand Transparency at Every Step

An online line of credit shouldn’t be complicated. These three things should be abundantly clear:

  • How it works
  • How much it will cost you
  • When you’ll have to pay it back.

If any of this information is hard to understand, reconsider signing your name against the dotted line. Unnecessarily complicated language is usually a coverup for costly hidden fees.

Without a clear understanding of these line of credit terms, you may inadvertently:

  • Sign up for something you can’t afford
  • Use it in a way that costs you more money
  • Miss an important due date.

Use Strong Passwords

The password you choose for this account is the first line of defense against cyber theft, and it needs to be up to the task.

Using the same password as the one that protects your Instagram profile, mobile wallet, and e-banking account isn’t a good idea.

But a unique password isn’t enough, either. It has to be hard to crack by anyone with a passing knowledge of your life. This means no names, birthdates, or phone numbers.

Instead, try use a random mixture of letters, numbers, and special characters. If you have a hard time remembering a random assortment of characters, check out these password managers to help you do it.

Bottom Line

An online line of credit is only as safe as you let it be. Ignore these tips, and you may wind up applying for a loan that gets you into financial hot water. But by researching these options carefully and remembering that your privacy is your priority, you’ll be able to find a financial institution that protects your personal information.

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Tips to Choose the Best Term Insurance Plan

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Term life insurance

When it comes to choosing the best term insurance plans, you should know that the life insurance industry offers a plethora of options to the individuals. Life insurance is a must as it can look after your family’s financial insecurities against any uncertainty. Anything can come knocking your family’s door without any warning; therefore, you need to be prepared.

However, before you get a term insurance policy, it is important to evaluate your requirements and follow specific processes that can help you choose the best plan for yourself.

If you are feeling overwhelmed, seeing so many options available, keep on reading as this ultimate guide will help you make an informed decision.

#1 Determine the number of family members as well as think about your life stage

First and foremost, you need to think about the family members who are dependent solely on you for their needs. This may vary at different life stages. Financial responsibilities of a married individual differ from an unmarried person, and it changes if you have kids or retired parents to look after. Therefore, you need to choose the cover amount accordingly. However, you need to keep an eye on the future and strategize for increasing financial responsibilities.

#2 Identify which term plan to choose

Your financial situation will change as you make progress in life. Therefore, you need to choose a term plan taking these requirements and situations in mind. There are basically four different types of term plans offered. They include:

  1. The monthly income plan offers sum assured benefits that are paid out in regular monthly installments to the dependents to help them take care of the monthly recurring expenses
  2. The increasing term insurance offers sum assured amount that is increased by a pre-set percentage to tackle inflation that’s causing increasing costs. To take care of increasing costs, you need a high cover
  3. The decreasing term insurance plan is for those who have lesser dependents to look after. For example, during the early stages, you are marked by different responsibilities, which include the responsibility of your spouse, children, loan repayments, etc. However, once your loan repayments are successfully completed, and your children can take care of themselves, it will lower your insurance coverage needs. This is an ideal term plan for such individuals
  4. The level term insurance is a regular term insurance plan where the premium amount remains fixed throughout the policy term

#3 Know which riders will maximize your coverage

The best term insurance plan is the one that has all the angles covered. Riders are one way to achieve this. A rider is an add-on to the primary term plan that offers benefits over the policy subject but under certain conditions. For example, if there is a critical illness rider, then he/she is entitled to receive the sum assured upon diagnosed with the same.

#4 Higher claim settlement ratio

The life insurance company should incorporate an effective claim(s) settlement process to live up to their promise of offering monetary reimbursement. The higher claim settlement ratio means, the higher are your chances of availing the entire sum assured amount.

Final words

Always go with a trusted provider to avail the best term insurance plan. It is your responsibility to check and understand the terms and conditions of the policy you choose. You should be aware of all the technical details of your term plan.

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What Is Term Life Insurance And Its Types?

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Term life insurance

Term life insurance is the oldest and the easiest form of assurance and offers for payment for sum assured on death, given death occurs within term or policy tenure. In case the life assures survives to the end of the term, then the insurance cover ceases and the company is liable to pay. 

You can look for online term insurance as well, as all the companies offering term insurance are using the internet to let prospective policyholders know everything about term plan. Moreover, due to the absence of involvement of agents, online policies are cheaper.

Life is unpredictable and anything can happen anytime. So, if you are the sole bread-earner in your family, you must think about how you can secure the financial future of your family. With an investment in an offline term plan or an online term insurance policy, you can be worry-free about what is going to happen to your loved one if you are no longer alive to cater to their needs.

Types Of Term Insurance

There are several variations of term insurance, which are mentioned below. 

  • Convertible term insurance – It is the kind where the life assured buys a pure term life insurance policy initially with an option to convert it into another plan later, as per the choice of the policyholder. The policy can be converted into permanent insurance like endowment or whole life. 

For instance, a policyholder can change their term insurance policy after five years into the endowment plan for twenty tears. However, the premium will change and the policyholder will be charged level premium according to the newly chosen plan and term. 

  • Level premium term insurance – It is the type where premiums payable throughout the pre-decided term remain fixed for pre-fixed sum assured. As a result, the problem of paying rising premiums each year is eliminated. It is usually available for terms ranging from 5-30 years. 
  • Renewable term insurance – It is a plan where when the initial term ends, the policy may be renewed for selected period say, another five or ten years, without any proof of insurability like a medical examination. 
  • Term insurance with the return of premium – Here, the savings element and risk cover are included. In this type, the premium amounts paid are returned to policyholders if they survive the policy term. However, this kind has a higher premium than pure term insurance policy. 
  • Decreasing term insurance – Here, the sum assured decreases with every passing year to match the diminishing insurance need. A policyholder opts for decreasing term insurance if they have taken a huge loan like a housing loan. Also, the sum assured is generally taken equal to loan amount so that if the policyholder dies, the loan is repaid in full. Additionally, the policy term is the same as the time in which the loan has to be repaid. 

Conclusion 

Term life insurance is a more affordable option for those who worry about the financial future of their families. There are numerous options one can choose from, depending on their needs and budget. 

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How Personal Loan can Help in Medical Emergencies?

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medical emergency

A medical emergency leaves people blinded with fear and uncertainties. In the rush of taking a loved one to the nearest medical centre, it is but natural for questions related to budgets and cost to come up. 

Will the medical insurance cover the cost of the operation? Do I have enough savings to meet the expenses? Will I need to break a fixed deposit and lose out on the interest earned? Which family member or friend can help me at this time? Though all these questions are natural, what many people are not thinking about is taking a Personal Loan for Medical Emergencies to meet the expenses. It is a good way to raise funds in emergency situations. 

 Some Ways Of How A Personal Loan Can Help In Medical Emergencies:  

  • You can apply online, thereby saving time:

You can go through your lender’s website or mobile app and apply for the loan digitally, without leaving the hospital. All you need to do is go to the lender’s website, fill in the form, and upload the documents. If you are an existing customer of the lender, the documentation is reduced further.

  • You can avail instant funds and provide immediate care to your loved one:

Mostly, the processing time of approval for personal loans is very less. As long as you meet the eligibility criteria and upload the required documents, your loan application is approved instantly, and money is disbursed to your account in 24 hours.

  • You can use the loan for any medical issue:

You can use the credit to pay any bills, charges for treatment, lab tests, medicines, or prescriptions. The lender will not ask the reason for the loan, but if you share your concerns with a customer service executive, you can be sure of faster processing.

  • Hassle-free application processes make it easier for you to complete the process:

The loan application for a personal loan is very simple. You can do it quickly, unlike old times, when you would have to fill out multiple forms. One application online is all you have to fill. Additionally, you can download the app to fill in the loan application.

  • You do not have to run around looking for collateral:

One of the biggest benefits of getting a personal loan for medical emergencies is that you do not need to provide collateral to the lender. It frees up the time you would have taken to get the paperwork for the collateral.

  • Because of competitive interest rates, your monthly installment burden is reduced:

Interest rates on a personal loan are competitive. For example, both salaried and self-employed persons can avail the loan at interest rates starting from 12.99%* per annum. Do not forget to include the processing fees in the cost of the loan.

  • Flexible terms and conditions are making it easier than ever to get a loan:

Most lenders today offer flexible terms and conditions for a personal loan. For example, the choice of loan tenure ranges from 12-60 months. There are personal loan calculators online that you can use to calculate your monthly installment – you have to input the loan amount required, the applicable interest rates and the tenure and the calculator will calculate the EMI instantly. When calculating the EMI, keep in mind that a longer tenure means a lower EMI.

Also Read:  What Is a Medical Emergency?

Remember, nearly all lending institutions will extend personal loans for medical treatments. But, if you are in an urgent need and you do not have the time to research, reach out to family and friends who have taken a personal loan, and you can finalize your choice based on their experiences. 

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Finance

What To Look For In A Company Before Taking Out A Loan With

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There may come a time when you need to look for a little extra cash to get by. With the costs of modern living, there are many reasons why you might be strapped for cash and need to take on a new loan. For those who have never taken out a personal loan before, or for those who have had a bad experience with previous lenders, it is important to know what to look for in a loan provider.

There are many reputable lenders out there, such as Latitude Financial, however, some lenders are ready to take advantage of those who are desperate. Being able to distinguish the good from the bad will save you money and prevent you from entering a financial nightmare scenario. It is worth taking the time to learn what separates reputable lenders from the rest.

To ensure that your financial future remains secure, let’s look at what to look for in a company before taking out a loan.

Reasonable Interest Rates

Reliable lenders will offer their clients reasonable interest rates. Naturally, reasonable means a different thing depending on your credit score and the current economic climate. However, if you are considering a loan then be sure that your interest rate is competitive with that offered by other lenders. You should not be forced to take out a loan with an interest rate so high that you will be quickly paying more in interest than the value of the loan itself.

Hidden Costs And Fees

Be sure to have a look at the fine print in any loan agreement to see if there are any hidden charges or fees that may not have been mentioned. If there are, it is usually a good idea to try a different lender. Lenders need to be upfront about all of the costs involved in the loans that they provide. If they are not, then you can be reasonably sure that they do not have your best interests in mind.

Take the time to read any loan agreement carefully to avoid the potential trap of hidden fees.

Legal And Licensed

Be sure that your loan provider is operating legally and is licensed to lend money. This can be verified by checking out their website and looking for their credentials or you can verify their legality through a third party or regulator. Borrowing money from grey or black market lenders is never a good idea because the conditions of the loan are not guaranteed and may cause you great financial harm.

Reasonable Repayment Periods

Reputable lenders offer their clients a reasonable repayment period over which to repay their loan. This should be enough time to spread out the repayment in a reasonable way. Be sure to use aloan repayment calculator to see how much your overall monthly payments will be as this will let you know how much your lifestyle will have to be sacrificed in order to accommodate the new loan.

If you find that the repayment period seems unreasonably short, then you need to shop around to find a lender who will be more accommodating to your financial situation.

Research Your Lender

The more research you do on a prospective lender before you borrow, the more you reduce the risk of ending up with a bad loan that will cause you financial harm. Make sure to follow the tips that are outlined here and do your due diligence when considering a loan provider.

Your financial health is important for so much in your life, so be sure not to rush into anything that may potentially worsen it

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Best banking and PSU funds to invest in 2020

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The banking and PSU funds are the new latest subcategory introduced by the SEBI which is securities and exchange board of India in the debt mutual fund category. These funds are invested in debt and money market instruments that include the securities issued by banks, the public sector and the Public financial institutions. The aim to consider all this is to have an optimum balance of safety, yield and liquidity. These funds offer secure returns and minimizing the risk by investing in good quality instruments. One can also get information from the business standard newspaper today for the best working instruments in the market.

Following are the best performing banking and PSU debt funds:

  1. HDFC Banking and PSU debt fund: in case one wants to come through investments in debt and other money market instruments then one must go with securities which are issued by scheduled commercial banks or the public sector undertakings. The HDFC PSU debt fund was launched in 2014 on 26th March. This is a fund with moderately low risk and has given an 8.8% return since its launch. The return for 2019 was 10.2% which is a great return as compared to all others in the sector. The total assets are of Rs.4 848 crore on 31 December 2019. The expense ratio is 0.26 per the information ratio is 0.06. The minimum investment required is Rs.5000 and minimum SIP investment is Rs.500. The yield to maturity is 7.2%. Effective maturity is three years and 18 days.
  2. The UTI Banking and PSU debt fund: the main objective of such investments is to generate a steady and a reasonable income with low-risk and high level of quality and liquidity. This fund was launched on 3rd Feb. 2014 and is a fund with the moderate risk and has given 7% return since its launch. The total assets as on 31 December 2019, is Rs. 146 crore. The expense ratio is 0.35 information ratio is zero. The alpha ratio is also zero with a minimum investment of Rs.5000 and minimum SIP investment of Rs.500. The effective majority is three years six months and 20 days. The exit load is nil. The yield to maturity is 7.01%.
  3. The Kotak Banking and PSU debt fund: in order to generate income by investing in debt and money market securities Sir issued by banks and PSU one must take care of various things. The Kotak Banking and PSU fund were launched on 29 December 1998. This is also a moderately low-risk fund and has given 10.8% return in 2019, 6.7% in 2018 and 6.2% in 2017. Net assets of the company were Rs.4 204 crore as on December 31, 2019. The expense ratio is 0.25 and the information and Alpha ratio are zero. The minimum investment is Rs.5000 and minimum SIP investment is Rs.1000. The exit load is nil and the yield to maturity is 7.09%. The effective maturity is three years, nine months and 22 days. The asset allocation is 21.02% of the cash and 78.98% to debt. The debt sector allocation is 49.17% to the corporate, 46.39% to the government and 4.44% to the cash equivalents.
  4. Aditya Birla Sun Life Banking and PSU debt fund: this is an open-ended short-term income scheme that has the objective to generate income and appreciate the capital by investing the money in a diversified portfolio with low levels of interest rate risk. This was launched on 9 May 2008. This is a moderate risk fund and has given a 8.5% return since its launch. The return for 2019 was 9.9% and in 2018 was 6.6%. The net assets on 31 December 2019 were Rs.9 845 crore. The expense ratio is 0.64 and the information and alpha ratio is zero. The minimum investment is Rs.1000 and the minimum SIP investment is also Rs.1000. The yield to maturity is 6.7% and the effective majority in two years 11 months and 16 days. 4.49% of the value of credit quality is AA and 95.51% in AAA.

The DSP Blackrock banking and PSU debt fund: the main objective of the investment Is to generate income and appreciate the capital by investing in a portfolio of high-quality debt and other money market instruments. This was launched on 14 September 2013 and was given an 8.8% return since its launch. The return for 2019 was 9.9% and for 2018 was 6.3%. The net assets as on 31 December 2019 are Rs.2 354 crore and the expense ratio are 0.5. The information and alpha ratio are zero. The minimum investment required is Rs.1000 and minimum SIP investment is Rs.500. The yield to maturity is 6.73% with an effective maturity of two years, 11 months and 26 days.One can get the information in regard to investments from current news today in the business standard newspaper and these kinds of information are also available on their official app which can be downloaded by the users. Depending upon the risk appetite of the investor he or she can spread their portfolio from the least risky funds to banking and PSU funds and credit risk funds.

For All those investors who do not want to rely on insurance, the government of India provides taxable bonds that offer 7.75% for a time period of seven years whereas the post office deposits offer 7.7% for five years. For investors who are in the 30% tax bracket the banking and PSU funds provided around 7%. The higher will be the duration of the bond Higher it will be susceptible to the interest rate movements. The investors in debt funds with medium and long-term duration have seen a windfall over the last one year with a significant fall in the interest rates. This is the time to take a duration risk. Arbitrage funds also offer relative safety as they are highly tax-efficient. They have the same treatment as the equity-oriented funds and the long-term gain in equity investments up to 1, 00,000 is tax-free. One can get all these kinds of information from the business standard newspaper and app which provide timely and useful information to all its users

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Asian Economy and Forex Market Ruined by Corona Virus Spread

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forex

As the week began many had thought and expected that the ongoing war waged in China against the Coronavirus started to settle down. Japanese Yens in vital struggle South Korean exports still fell USD safe haven the option of most. Markets continued to operate without major deterioration, as Peking seemed to control the situation well. There are no significant changes in the economic situation in China, but those of its peers in the Asia-Pacific region are upside down as we reach the weekend. Two deaths in Japan and an upsurge in neighboring Korea suddenly brought the country into a very difficult economic condition.

Japanese Yen and Economy Combating fights The Japanese Yen has usually suffered its worst four-day stretch in over two years and is a respectable safe haven in times of trouble. The notoriously stable currency has fallen more than 2% in this short period. Before a small recovery in market trading today, traders may experience fear. For example, this decline has to do with the present situation and with how the epidemic has impacted both commerce and tourism.

There are concerns of a slowdown, including David Bloom’s head of FX at HSBC who says, “New cases of coronavirus in Korea and Japan have given people cold feet about Japan and the Yen as a safe haven.” It definitely appears to be true at least for the moment.

South Korea Another survivor In recent days South Korea has been the most significant increase in virus cases. Cases have nearly doubled in just 24 hours. In response to remarks from the Director-General of the WHO on how events indicate a further sharp increase, Korean stocks declined by almost 1.5% overnight.

Traders and the general public certainly hope that the comments of the director-general will not ring true, even though China’s exports to China have already plummeted significantly for February due to the instability of supply chains. In the region, South Korea may play a major linking position, so it is no wonder that the market is responding to the surge in this way.

If you do choose to trade in Forex, use a pivot point trading strategy to determine potential turning points. Using pivot points will enable you to determine when market sentiment goes from bullish to bearish or the other way around!

This pattern will persist at least until the concerns of the virus are high. But, as soon as that happens and what damage has been done to the world economy by then, few can guess.

Despite the positive steps of the day, the couple and the broader economy also face challenges. On a more or less domestic level, the discussions on the future relationship between the UK and the EU are continuing. Today’s new titles reveal that the UK is committing to an entrance scheme based on points, which will severely limit the prospects for unqualified foreign workers.

Eventually, the Coronavirus issue remains unresolved in China. There are few headlines but the epidemic still limits business operations in China and overseas. This widespread instability in the supply chain is seen as the backdrop to the Apple profits alarm and both the DOW and the NASDAQ, which are heavily dependent on the Chinese market.

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Global Trends That Will Affect the Property Investments In 2020

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Global Trends That Will Affect the Property Investments In 2020

We live in an era where markets of all the countries are interconnected. Strong global forces are capable of bringing change in the global economy. A global trend can have a positive, as well as a negative effect on the global markets. Some of the examples of the current global trends are the rise of emerging economies like India and China, rapidly increasing digital technologies, etc. Changing global trends open the gates of new opportunities for countries, businesses, and individuals. But, countries and businesses go fail to chance with the changing trends lay far behind their competitors.

What are the global trends?

Any change in the ongoing situation that affects countries all around the world is known as global trends. These trends play a very important role in deciding the fate of an industry. Real estate is no more an exception. Real estate is known to be the backbone of several countries. As we are stepping into the year 2020, it is time to analyze the ongoing and upcoming trends that might influence the property market.

The year 2019 has shown numerous global events that had directly affected the markets all over the world. Though the economy of China and the US continue growing, the trade war between these countries does leave its mark. Their trade war has resulted in imposing a high tariff on numerous imports, including steel, aluminum, etc. These tariffs have negative effects on the economy, which can further effects the real estate markets all over the world.

Every year some countries move towards prosperity, whereas some struggle to fight ongoing crises. Below we have shared some upcoming and ongoing global trends that would affect the real estate industry in the year 2020.

 Global Trends 2020 and their effects on real estate

Technology advancement

Markets in the 21st century are ruled by technology. Technology has been one of the major trends that have changed the phase of the real estate industry drastically. Technology advancement is an ongoing process. In the past few years, technology has been one of the major reasons for the growth of this sector that too, on the global level. It has changed the way property business used to be done. Be it construction, marketing, sales, or customer service, technology has made things quite easy for buyers as well as sellers.

It has helped in increasing the construction quality while decreasing the construction time simultaneously. Last week, China built a hospital within10 days to accommodate coronavirus patients.

In 2019, we saw an increasing demand for augmented and virtual reality concepts. This trend is going to be seen in the year 2020 also. This technology allows a person sitting in one country to see and feel the property while sitting in the comfort of their house in another country. Hence, the country which would be able to imbibe the existing or can be ahead of others in terms of technological advancements would be able to ripe more profits as compared to other countries. On the other hand, countries that fail to adapt to these upcoming technological changes would lag at the global level.

U.S. house prices increase

The year 2019 has proved to be quite good for the U.S. economy. An increase in employment and a decrease in interest rates have resulted in a good YoY in several parts of the nation. However, the year 2018 has laid the foundation for this growth. The real estate industry was booming at that time.

However, the year 2020 might not give the same results. As per the Congressional Budget Office this year, the GBP is expected to slow to approximately 2 percent. Also, the Federal Reserve has indicated that the rate of interest will be increased at least twice this year. By the end of 2019, there was not much increase in the personal income; any increase in interest rate can be troublesome news for the U.S. real estate industry. It’s been some time that the interest rates were towards the lower side, so any increase would be no less than a shock for the real estate market.

Many of the major tech cities like New York and San Francisco have already shown a decline in their house prices. Any decline in tech jobs in these cities or in case the real estate market in these areas becomes a housing bubble than be ready to get surprised in the year 2020.

The higher U.S. interest rate would affect the real estate market on a global level.

We all are well aware of what power the $ hold on the world economy. Every time the U.S. brings any change in its financial policies, it not only affects the U.S. citizens, but its effect can be seen in all other countries as well. Many people compare their currency with the dollar to know about the status of their currency in the global markets. Numerous “forex software tools” are available in the market to know the currency exchange rates.

The reason behind this is that many countries around the world have either use the U.S. dollar or they peg their currency to the dollar. For example, there is a country that uses the dollar as a base; hence, if the U.S. increases its interest rate, then the same change would be seen in that country also. As a result, the homeowners will end paying more money as their mortgage repayments. The home loan interest rate plays a vital role in the growth of the real estate industry. Higher the rate of interest, lesser people would be interested in purchasing the property.

The economy of all countries is interconnected. Hence, any change debt or rate of interest in a powerful country like the U.S. has a global effect.

Increasing demand for sustainable properties

Nowadays, because of awareness, people are more interested in buying sustainable and environment-friendly houses. Studies have shown that millennials are more eager to buy sustainable products. The rise in the demand for organic products is a proof for the same. You might not believe it, but the truth is they are even ready to pay extra for these environment-friendly organic products.

The same trend can be seen in the real estate industry. Hence, landlords, property investors, or construction companies have to find ways to meet the demand for sustainable houses.

For sustainable houses, real estate companies need to use eco-friendly construction material. In addition to this, they need to focus more on the use of renewable energy sources like solar heaters, etc. One very simple change that construction companies and landlords are making nowadays to increase their property demand is that they provide an electric car charging point in the garage of their property. This way, they attract a tenant who owns electric cars.

Huge Urban Expansion

More and more people prefer living in urban cities to enjoy the lifestyle and the facilities provided by them. As a result, the builders have to bring changes in their construction so that they can meet the demand of the increasing population in the urban cities. Hence, the availability of amenities like gym, parking space, club, swimming pool, park, security, etc. is becoming a major point of consideration among the buyers.

Besides this, more and more families are interested in buying or renting a property near to their workplace to save time in commuting. Hence, the construction companies also have to build residential areas near or around these urban cities to meet the buyers, or tenants, residential demand.

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Finance

Exploring funding options for your business

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Exploring funding options for your business

To begin with, starting a business is truly a painful process, but at the same time, quite rewarding. The difficulties arise when it comes to funding it and hence, it is important that you have different options open. A great business plan is indeed a foundation of any business, but financing is that element that actually allows us to kick-start it. So, if that is not sorted, nothing will ever fall into place.

When it comes to owning and financing a new business, it is never a wise idea to put all the eggs in one basket. It is in the best interests of the business to diversify their financing sources so that if one door closes, you have the other one. Additionally, it will also broaden up options for you by improving the chances of getting an appropriate stream of finance.

Speaking of this, if you are a small business owner, it becomes even more challenging to be able to secure a loan from the bank.

So, if you are a small business owner, you have come to the right spot. In this blog post, we are going to explore funding options for small businesses.

Venture capitalists:

They happen to be a total external group, who in return of capital takes part ownership of the business. However, the value of the company decides the percentages of ownership. Additionally, these percentages are negotiable.

This is an ideal option for businesses who are short of physical collateral to present as a lien against a loan from the bank. Having said that, it is only suitable when the business possesses a massive potential in terms of competitive edge. It could be anything from a patent to having a captive customer.

The benefits which forming a liaison with venture capitalists are not necessarily financial. This particular relationship can provide a lot more than just money. It can bring in an abundance of knowledge in addition to connections from the industry alongside a clear picture regarding where you should take your business. After all, there is nothing better than the guidance from a group of experienced investors.

Angel Investors:

Well, venture capitalists and angel investors are thought to be one and the same. However, it is one big misconception which needs to be sorted. So, are you wondering where does the difference exactly lie?

To begin with, venture capitalists are large and established business entities which offer investment in return for equity. On the other hand, angel investors happen to be individuals with a priority to invest in a start-up. The difference lies in the fact that angel investors do not make demonstrable growth as a prerequisite for investment as a venture capitalist would.

Having said that, being able to find an angel investor is as fruitful as it would be finding a venture capitalist. However, the former would be able to give you more personalized control than the latter.

In addition to this, they are going to help, assist and guide you with their expertise in the long run.

Crowdfunding:

Crowdfunding is that option that can give small business a major boost.

To put things in perspective, it is a way of gathering funds through online platforms. To put it exactly, they enable small businesses to pool in investments from several sources at once, unlike other options which you need to seek out a single investment.

Through crowdfunding, you can collect funds to have your business pass through the developmental phase and move on to the phase where you can pitch it to major investors.

It is important to note that every crowdfunding site comes with a fine print bearing crucial points regarding equity. They must be read through thoroughly before opting for a crowdfunding platform.

Furthermore, make sure to run detailed research about the pricing and fee structure of each and every platform to be able to make the most out of them. Well, in case you are wondering, the crowdfunding sites need monetary assistance in the form of fees and pay-out structures in order to generate maximum profits and maintain operations.

Other than this, ensure that you compose a compelling pitch to be able to appeal to the investors for funds.

Peer-to-peer or marketplace lending:

Peer-to-peer or let’s put it P2P lending refers to an option where capital is raised through websites which serve as an outlet for borrowers and lenders to connect.

To put it simply, an account is to be created by a borrower on the website which keeps records and transfers funds by making a connection with lenders.

In other words, it is absolutely safe to them peer-to-peer, or marketplace is lending a hybrid platform. It is called a hybrid as it has characteristics of both crowdfunding and marketplace lending.

Additionally, countries with better and advanced financial industries prefer using the term marketplace lending.

The best part of choosing this option is that a P2P lending site has a true sense of community to offer.  They are packed with active forums having users who are eager to impart and exchange information about lending and borrowing. Therefore, they are gaining popularity as a reliable fund option for all the right reasons!

Convertible debt:

Convertible debt is all about seeking investment from an investor or a group of investors on the grounds that the debt, in future, would be converted into equity. It is hybrid in nature as P2P lending, where this one has debt and equity-like features.

If you,  as a small business owner,  are considering convertible debt, then it is important to note that although it is a great funding option, you should be comfortable with the prospect of ceding control to a certain degree to the investors.

Opting for convertible debt is indeed a beneficial option considering the fact that it prevents a strain on cash flow. And, this is what any small business would want! The interest rate is somewhat lower in comparison to traditional bonds. In addition to this, businesses are able to collect funds on immediate basis without having their shares diluted.

Conclusion

This is it, and we hope this piece must have generated awareness and given you something to pick and ponder over. The possibilities are endless if you only have the correct eye to weigh down the pros and cons.

Whatever funding option is that you choose, always make sure that you have done ample research before making any decision. Moreover, be very clear about your needs and goals as this is what will be the driving force when you are making your choice.

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Finance

Building an Emergency Fund with Mutual Funds

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Building an Emergency Fund with Mutual Funds

Financial planning not only entails saving for long term goals like retirement, higher education of your children, etc but also preparing for short term goals like creating an emergency fund, to tackle unforeseen expenses. While most individuals use their current savings account as an emergency fund, owing to the ease of access to money, a disadvantage of doing so is the poor appreciation of money. However, mutual funds offer a better avenue to park savings for emergencies with high liquidity as well. Covered ahead is how to build an emergency fund with mutual funds in detail.

Why is it important to have an emergency fund?

There are many instances in life when we need emergency funds to tackle financial demands. It can be a job loss, medical emergency, car accident or breakdown, or urgent travel plan. This can be fulfilled either by borrowing money or by saving money.  A wiser move would be to plan in advance will plan to generate his emergency savings fund through savings done via investment. Investment helps to add an extra source of income for the investors.

Why select mutual funds for an emergency fund creation?

Investors can inculcate a good habit of making regular investments. Ideally, an emergency fund must have an amount six times. The conventional process of making an investment in savings banks and fixed deposit is a good idea, but the interest offered by the banks are meager. Besides, some traditional investment products will hoard the surplus amount with a fixed lock-in period on withdrawal. No investors will like to compromise on the liquidity aspect in case of an emergency fund.

Whenever an emergency scenario arises, one has to resort to availing loans or borrowing from friends and family. This is the situation that most people do not prefer to go to. If you are ready with your emergency kitty, it saves you from facing the dire consequences. Therefore, to park the surplus monetary resources, mutual funds can be regarded as the best emergency fund investment in India. It provides a lucrative option for contingency fund creation with overnight funds and liquid funds. The best emergency fund will act as a lifesaver and instill confidence in the investor by granting him the power to deal with the undesired event. Even if an individual is a frivolous spendthrift, it will ultimately develop an inclination towards savings.

Investors can consider schemes like liquid funds and overnight funds, which are debt funds and the money is invested in securities that have a maturity period of one day. Another best emergency fund investment in India is the liquid fund that is channelized towards debt and money market security and has a short-term maturity duration of just 91 days. The shorter investment period of these mutual fund schemes also keeps the investors insulated from both the interest risk and credit risk. The liquid funds earn better returns than most banks offer on a savings bank account. Alongside this, the investors have nothing to worry about the availability of funds and compromise on liquidity. The overnight funds have earned their name from the investment in overnight securities, and the liquid funds get their name from the liquidity offered in such funds. When compared to the debt funds and regular equity, it processes the redemption request more swiftly, and any request before 3:00 pm will help the investors to credit the redemption process in the registered bank account in the following working day.

What can be the ideal size of the emergency corpus with a mutual fund investment?

We have already mentioned that the ideal size of the emergency corpus needs to thrice-six times of the monthly expenditure of an individual. Some financial planners recommend that debt funds are the best emergency fund to build and manage this corpus. This allows the investor to create the corpus over a period of time. It can be gained through the routes of Systematic Investment Plan (SIP) or the lump sum investments. All you have to do is select the AMC of your choice, for instance, Kotak Mutual fund and then go through the overnight funds and liquid funds available under the selected AMC. The windfall gain will help to achieve the desired funds to create this corpus. The overnight liquid funds or ultra short-term mutual funds are indeed the ideal emergency fund India due to its liquidity aspect. Only 1-2 working days are required to process the money.

How to build an emergency fund with a mutual fund?

Investors can select from the range of mutual funds like debt funds, liquid funds and overnight funds. All these emergency funds India can be created through a regular contribution with SIP. The small quantities will create a steady savings plan over a time period and accumulate a sizeable emergency corpus. The reason behind opting for a mutual fund as an emergency fund India is the power of compounding within itself. The compounding phenomenon revolves around reinvesting the returns to generate higher return value.

A longer duration of investment means experiencing a better effect on compounding on returns.

Hence, investors need to stay focused on their financial goals for a longer time to get the rewards over the years. By this power of compounding, funds can grow exponentially and reap bigger benefits to the investment players. Generally, people make an investment in mutual funds through professional fund managers. For this purpose, they can invest in growth plans which automatically reinvest the returns. Moreover, investors can gain benefit from it if they start to invest at an early age to create a robust financial future that can even be used in contingency situations. For instance, Investors can purchase mutual funds schemes from AMCs such as UTI Mutual Fund and others that provide viable options for emergency fund creation.

It is better to select mutual funds plans like liquid funds and overnight funds. The combination of these with debts funds renders it a risk-free option. Investors can invest in these plans by making a consistent contribution with SIP over a long term to obtain benefit from compounding effect as well. The better potential returns along with liquidity the aspect, leave no doubt that these plans are undoubtedly the best avenues for the investors. In the wake of the emergency, the funds developed through mutual funds will provide the much needed monetary cushion.

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