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How to improve CIBIL score

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A cibil score is the 3 digits numerical expression, which is based on the level analysis of a person. A lender uses cibil or credit score to evaluate the propability of an individual will repay the debt. Its range varies from 300 to 850 and if a person has more than this a person is considered to be a trustworthy financially .this score is also used to determine the customer can be taken to the most revenue.

The cibil or credit score will be based on the transaction and the credit report of a person sourced from the credit bureaus. A cibil score is not limited to the bank. the same techniques are used by some other organizations such as the mobile companies, Insurance company, landlords, and government department employ.

The range of credit or cibil score are categorized as, the individual having score 750 and above comes in the Excellent, 700 to 749 is good, 650 to 699 is fair the score between 550 to 649 is poor and finally, 550 and below is bad and the last category of a cibil score.

The cibi score is used when we purchase some product in EMI or instalment option the product will be based on the cibil score you have .and you should pay the amount of debt on a monthly base.  Companies like Baja finance, HDFC, Capital first, HDB, TVS give this EMI option to the individual as their cibil score.

In India, there are four credit information companies licensed by the Reserve bank of India. Cibil (The Credit Information Bureau India Limited ) had functioned as a credit Information company from January 2001. in 2010 the companies, Experian, Equifax, Highmark  were given licenses by the Reserve bank of India, to operate as  Credit information companies in India.

The individual who have no credit history will have a cibil score of -1 and if the credit history is less than  six month the score will be 0. And the cibil score take time to bulid up and usually the time take between 18 and 36 month to get or obtain a satisfactory credit score.

How to improve your cibil score, a   poor cibil score will increase your financial problem .you need to stop that problem and  start to take a correct step to improve your cibil score  .you can improve your cibil score by, obtaining the credit card report and check for errors ,do not delay or miss any problem ,limit your utilization of credit limit ,avoid multiple loan / credit card.

 

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WEALTH

30 Plus age Women should Invest Earlier For Future Finance Security

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There are no easy ways to generate the money we have to work hard and be focused on the goal always. There are no shortcuts to generate income. You not only need to get started as early as possible but you also have to be prepared for continuous and monitored investing.

The best time to start our investment once you take your first job right from your 20’s that’s the time for new beginnings. Many used to start building their asset portfolios in their 30’s.

The late 30’s burry one with more responsibilities that too for women she owes various responsibilities towards family, parenting, etc which hike’s up to the financial responsibilities and your prime focus is to build a comfortable investment plan. Especially it is important for women to ensure her financial security for herself and her loved ones.

There are some investments options for a working woman in her 30’s.

Public Provident Fund is one of the best retirement investment schemes which offer complete tax-free benefits as well as steady interest income. In this scheme, one can deposit up to Rs.1.5 lakh a year and earn an interest rate of 8%. However, the interest keeps compounding annually and credited at the end of every year. It doesn’t provide long-term stability and decent returns after a span of 15 years.

Another tax efficient long term investment option is the National Pension Scheme a concoction of equity, fixed deposits, corporate bonds, liquid funds, and government bonds. It offers completely tax-free benefits under section 80 C of the Income Tax Act to the tune of Rs.1.5 Lakh plus you can claim an additional tax-free deduction up to Rs 50,000 under Section CCD (1B).

Buying Mutual Funds are another method of investment. The equity-linked investment plan schemes a diversified equity mutual fund product that will allow tax saving under section 80c of the Income Tax Act.

In the last years, the average return from the top 10 ELSS stands at almost 20% so even the introduction of 10% long-term capital gains (LTCG) tax on equity earnings does not dent its appeal.

Life Insurance means protection against the risks in life. These risks also exist in a woman’s life, sometimes even more than a man’s life.

According to the data Insurance Regulatory and Development Authority of India show that only 90 lakh women bought life insurance policy in 2017-18 while 1.91 crore policies were purchased by men in the same period. So women should invest more on Life insurance so that she can manage her lateral financial stability.

As per the studies, the women not only live longer than man but they also use more medical services due to a greater likelihood of chronic disease and disability apart from reproduction. Expenses for normal delivery are about between Rs 15,000 and Rs 1.5 lakh, without accounting for unexpected occurrences that may need urgent medical intervention and, hence, further expenditure. Without a health policy in place, such out-of-pocket expenses can do a number on a family’s budget.

According to the analyst, the portfolio of a 35-year-old woman ought to be composed of 65% of equity funds and 35%%  should be in debt, insurance, and cash. But even conservative investors should not go below the 60% equity allocation mark in order to maximize returns at an age when you are able to afford more risk. The older you get, the safer your portfolio will have to be.

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Insurance with Mutual Fund SIPs is not a good idea

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Mutual Fund aims to come back by offering an insurance plan with mutual fund schemes. As the flow of the equity fund has been slowing, fund houses are restoring to the free insurance sale pitch to attract more investors. In a plain vanilla SIP, we have to invest a sum of money every month and the fund house will invest the money in a bond or equity market. But in insurance with SIP package, you get a life cover that is bundled with your investment.if the unit-holder dies the nominee get the sum assured.
The insurance cover increase during the 3 years of SIP investment, if you continue the SIP for three consecutive years it is actually yours. The hope of the mutual fund industry is that this free insurance offer would encourage SIP investors to opt for a longer tenor. and the SIP insurance scheme also acts as a means to attract more investors. Before enrolling for a SIP that comes with an insurance cover, check the extent of cover you’ll get. You might think the cover is for free since fund houses are not charging any extra from you. Your monthly SIP contribution is the thing you pay every month. SIPs that come bundled with the insurance feature impose higher exit loads up to 2% as opposed to the normal 1% for withdrawals made within a year. Look at the historical performance of a scheme versus its own benchmark index and peers, asset allocation, your own risk profile and your schemes and then decide which scheme you should invest in”.
The risk with an insurance cover of this kind has the chance of the cover being discontinued due to many reasons. If you do not continue the SIP for a minimum 3-year or for a tenure you have opted for in certain cases, the insurance cover may be void. And also any partial or full withdrawal and even switch out of mutual fund scheme before the completion of three years would make the insurance cover cease.
If the product is comparable with peers and the scheme is offering an additional insurance cover which fits your objective then there is no harm in opting for the insurance cover. But if the insurance cover should not be a decisive factor.
The scheme gets defeated if the scheme does not perform in the market. The insurance offered is nominal and does not offer much protection except as an additional cover, which is not sufficient by itself. So consider insurance as a bonus and it is not a reason for it to invest in a scheme.

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WEALTH

Money & relationships: Your money behaviour can affect your children

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Usually, children become the reason for the worst collateral damage between the spouses. Being a soft target they are treated as a punching bag or sounding bag for the parent’s insecurities and anxieties. it’s no different in case of financial problem a sudden job loss, debt accumulation, poor spending habits, kids often bear the brunt of a soaring financial situation. A certified financial planner and psychologist came with an idea for this money disorder among adults: financial incest or enmeshment.
Financial incest or enmeshment: it is said to be when the adult over-expose kids to their financial problems to reduce their own stress they are indulging in ‘enmeshment’. This is because the unhealthy exposure can be daunting for a child, even maiming his financial acumen.it can lead to anxiety over money, skewed attitudes and poor financial habits. Klontz described it as the “inappropriate involvement of a minor child in parental financial matters, including conversing with them about financial stress And also using children as messengers to pass along financial messages between adults”.
Here are some ways in which you are subjecting your child to money stress:
Making the kid guilty about the effort you are putting in to fund his requirements Blaming the spouse for a shortage of money, due to his poor spending habit or non-payment of maintenance after divorce. sharing your stress about loss job or lack of increment and feel better after venting on the kid .suspending his pocket money or curbing his spending.
It is good to have the money conversation with children without introducing negativity, aggression or blame games. Children are very smart and if you sit and explain the situation they will immediately understand.”.so as long as you discuss it without blaming the kid and encourage him to offer a solution to the problem in order to resolve it.

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