Home Loan Festive Offers By Banks
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| During the festive season, banks and housing finance companies are offering special deals on home loans. SBI, HDFC Bank, and Axis Bank are among the banks providing these offers. To choose the best offer, consider factors such as interest rates, loan tenure, additional charges, loan-to-value ratio, repayment flexibility, loan eligibility, special offers, approval process, and loan transfer options. Select a lender that aligns with your financial profile and offers manageable terms throughout the loan tenure. |
Mutual Fund NFOs collection surges to Rs 22,000 crore in Q3 FY22
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| Mutual fund NFOs collection in India rose four times to Rs 22,000 crore in the July-September period compared to the previous quarter. The increase is attributed to the overall sentiment towards equity and the increased risk appetite of investors. Investors are opting for higher-risk products like thematic and sectoral funds. Sectoral funds have the ability to deliver high returns during high economic activity, attracting more launches in this category. The top schemes that collected the highest AUM during this quarter include ICICI Pru Innovation Fund, Baroda BNP Paribas Value, Bajaj Finserv Flexi Cap, HDFC Defence Fund, and HSBC Consumption Fund. |
Investing in Liquid ETFs: A Solution for Traders Facing Operational Challenges
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| Traders often face the challenge of maintaining the right amount of money in their broking accounts while trading stocks and derivatives. Keeping funds with the stock broker or in a saving bank account offers little return. To overcome this, savvy traders park their funds into liquid Exchange Traded Funds (ETFs) which offer attractive returns and the flexibility to trade seamlessly. Liquid ETFs invest in debt instruments with overnight maturity and provide gains through dividends or fractional units. They carry no credit or duration risks and can be effortlessly bought and sold on the stock exchange. Investing in liquid ETFs saves traders the hassle of transferring money between accounts and offers higher returns than saving bank accounts. |
Thematic Funds: Investing in Emerging Trends
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| Thematic funds are mutual funds that focus on specific themes or sectors, capitalizing on emerging trends or industries. They offer a focused yet diversified approach to wealth creation. However, they come with higher risk and volatility, making them suitable for investors willing to ride out multiple business cycles. It is crucial to research the fund’s strategy and understand the underlying investment approach. Thematic funds can be a strategic addition to a portfolio for investors with a strong conviction about a particular sector’s growth potential. Overall, thematic investing has the potential to deliver value beyond benchmark indices. |
RBI’s Increased Risk Weight on Unsecured Lending to Raise Interest Rates on Personal Loans
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| The Reserve Bank of India (RBI) has raised the risk weight on unsecured lending, including credit card receivables, causing interest rates on unsecured personal loans to go up. Individuals with a credit score below 750 will face even higher hikes. Lenders may reduce the supply of unsecured loans and borrowers may face stricter terms and conditions. Banks with higher exposure to unsecured loans will react more sharply, while online lending apps may increase interest rates. Borrowers should stay informed and regularly review their financial situation. |
