Tips that can help in getting favourable personal loan terms

It is quite possible to face a cash crunch at a time when you have certain expenses lined up. This could be anything like taking a spontaneous trip, renovating your house, funding a wedding, consolidating debt, or even paying for medical bills. In such cases, one useful solution can be to apply for a personal loan online and immediately arrange for the required finances.

However, before applying for a personal loan, it is important to make sure that the lender is offering favourable loan terms. This is to ensure that the loan can easily be repaid without any unnecessary financial struggles. If you are thinking of getting a personal loan, go through the following tips that can improve the chances of lenders offering favourable loan terms:

  • Consider your average account balance

A lot of people are unaware of the fact that financial institutions conduct credit appraisals where they consider their applicants’ average account balance. Lenders even consider the transaction pattern and if they find that the account’s outflow is much higher as compared to the inflow, they might hesitate to approve the loan application. This is why it is essential to have a healthy average account balance and not take out all the funds from the account as soon as your salary gets credited.

  • Avoid applying for multiple loans at the same time

There are a few applicants who apply for several personal loans from various financial institutions to cover their expenses. However, doing this is never a good idea as applying for multiple loans at the same time makes an applicant look credit hungry. This is why you should always check with the lender regarding their personal loan eligibility criteria and documentation requirements as these could differ as per each financial institution’s terms and conditions. By being aware of the lender’s requirements, you will be in a better position to know whether your application would be approved or not. Based on this, you can decide whether to apply for the loan or look for another lender, which can keep you from sending out multiple loan applications.

  • Declare all additional sources of income

An applicant’s income is a major factor based on which lenders decide whether to approve or reject them for a loan. Now, if you are earning an income from some additional sources such as rent, freelance work, or even a part-time job, make sure to declare these sources as this can improve your chances of getting favourable loan terms.

  • Improve your credit score before applying for a loan

Any financial institution will check an applicant’s credit score before approving their loan application. Ideally, it is always considered best to maintain a credit score of 750 or more before applying for a personal loan. Borrowers with good credit scores have better chances of getting favourable terms such as a lower personal loan interest rate.

Lastly, make sure to use a personal loan EMI calculator as this tool would help in displaying the loan’s Equated Monthly Instalment (EMI) payments. This would help in understanding whether the loan terms offered by the lender are favourable or not.

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5 Things to Know Before Buying Term Life Insurance Plan

Before proceeding with the factors that we should consider before buying a term life insurance plan, it is better to know what a term life insurance policy means. It is a policy purchased for a fixed time period that provides a substantial amount of cover at lower rates of premium.

Now, when we have got a basic idea of term insurance plans, we can proceed toward the factors that we should know before we get one.

5 Things to Consider When Buying Term Insurance

Here are 5 things to consider when buying term insurance:

  • Determine the cover amount

The first factor that is generally considered is the amount of coverage that you need. For determining the cover amount, it is recommended to assess the following:

  • Age
  • Financial Responsibilities
  • Family’s future financial needs
  • Basic day-to-day expenses
  • Outstanding loans
  • Accounting for inflation

It is also advisable to keep in mind that the cover amount varies with your age. For example, if your age is between 25-35 years, the cover amount can ideally be 20 times your annual income approximately, and if you’re between 36- 45 years of age, the amount can be around 15 times the annual income. Ultimately, the younger a person is, the higher the cover amount.

  • Determine the time period of policy

Next, you can determine the policy period based on the following:

  • Retirement Plan: In general, people have a retirement plan at a specific age that usually ranges from 60-65 years of age. So, it is better to buy term insurance till the planned retirement age so that you and your family are financially secured throughout your retirement age in case of an untimely death of the sole earner.
  • Financial Responsibilities: You can assess your current and future financial liabilities and the time until which these can be repaid. This would eventually help you in deciding the time period of the online term plan to opt for.
  • Select the riders

When you buy term insurance, you can opt for the rider benefits. Riders are the additional benefits of extending the coverage of your base policy. Riders are usually offered at an extra cost, but it would help you get comprehensive coverage on your policy. You can also extend the rider coverage for your family member under a single plan. Additional coverage may include hospitalisation risk, critical illness, major ailments, accidental death, terminal illnesses, accidental disability, etc. Besides, you can also get coverage for major or minor illnesses and injuries with a multiple claim payout option.

  • Payout Option

Finding a suitable payout option also plays an important role because the amount of premium depends upon it. There are options of choosing either a monthly income payout or lump sum payout depending upon the availability in your plan. For instance, the Tata AIA term plan is one such term plan wherein there is a flexible option to receive benefit payout either as a lump sum or a regular monthly income for ten years or a combination of both options.

  • Choose the Insurer

The next important factor is related to choosing the insurance provider that meets all or most of your requirements. The following checks are ideally done to choose the insurer that suits your need:

  • Solvency Ratio: The solvency ratio is the ability of the insurance company to meet its long-term obligations. If an insurance provider has a high solvency ratio, it has excellent financial strength.
  • Claim Settlement Ratio: This ratio means the percentage of claims paid or settled by the insurance company. A high claim settlement ratio is a positive sign to choosing the insurance provider.
  • Reputation: The grievance settlement ratio on the basis of the number of complaints would help you in knowing the reputation of the insurance company in the market.
  • Financial History: The financial history helps you find whether, in a crisis situation, the insurer will be able to meet both its short-term and long-term liabilities or not.

Parting Thoughts

Choosing term policy online on the basis of the points mentioned above would be quite helpful. Besides, assessing your needs, having knowledge about the policy, going through the medical tests before issuance of the policy, etc., are other important factors that can also be considered.

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Get a free router with this network’s fiber connection

A wifi network is extremely useful. There are multiple uses when it comes to your broadband connection. Starting from all kinds of your work-from-home needs, video calls with friends, binge-watching and more – broadband is there for you always. But, just as important as your broadband connection, is the router.

When you think of it, the router is the piece of technology that makes your broadband connection come to life. Without a properly working router, you would never be able to make the most of your broadband connection. Therefore, getting the right router is equally significant for all. And yet, many network providers that are out there do not provide a free router with their services. You may ask why? To be frank, we have no idea either.

Here’s your chance to get a free router, with Airtel broadband

Now, are you worried that you will be forced to spend on a whole new router all by yourself? Worry not, because we have exactly the right solution for you. We suggest you choose Airtel broadband as your preferred wifi connection. The advantage here is that you will finally get a broadband network that offers you with a free router. Isn’t that incredible!

The router that you get from Airtel is of world class quality and has been designed to meet your exact needs. In addition, there are far more benefits to choosing Airtel broadband than you may have previously thought of. What are they? Find out below.

Benefits of choosing Airtel broadband

Unlimited internet

With Airtel broadband, you will get unlimited broadband internet connectivity. That’s right. You can use your wifi as much as you want, and you will never have to worry about exhausting the limit. In addition, the unlimited internet benefit is available on each and every plan. Therefore, you can now binge watch even more shows, play video games longer and be on that video call with your friends for longer durations.

Up to 1 Gbps internet speed

What is the point of a wifi connection if you do not get the internet speed that was promised to you? Thankfully, at Airtel broadband, you will get the exact broadband speed promised. Here, your wifi speed can reach up as high as 1 Gbps. That means, a movie of 1 GB size can now be downloaded within just a few seconds!

However, you should keep in mind that the internet speed on your broadband connection depends on the plan that you have chosen. Naturally, if you go for a plan with a higher wifi price, you will be able to get a better internet speed.

Free OTT benefits

OTT applications are extremely popular nowadays. That’s why, Airtel has decided to bundle in OTT subscriptions with the Airtel broadband plans, completely free! You can get Disney+ Hotstar, Amazon Prime Video and Netflix subscriptions at steal deals. However, you have to keep in mind that the OTT benefits do depend upon the plan you choose.

Furthermore, there are many other benefits of choosing Airtel broadband. Thus, stop searching for broadband connection near me, and get your free router with Airtel today!

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The 3 Rules For SIP You Need To Know About

Investing in the markets can help you in accumulating wealth in the future. But the question remains, “why to invest in the market?”. That’s because the income earned from full-time employment might not be enough. While there was a time when the monthly income was enough, nowadays they may not withstand the inflation of the future. That’s the investment tool referred to as mutual funds step in. One may think that for investing in mutual funds, you need to make a one-time lump-sum payment, but that’s not the case if you don’t have the access to the required amount.

To invest in mutual funds, there are two investment modes that are available. There is a lump-sum investment mode. Under lump-sum, you are expected by the AMC to make a one-time payment for the mutual fund scheme. This mode of payment is suitable for you only if you have access to the required funds. The other investment mode is a systematic investment plan or SIP. These plans work the complete opposite of lump-sum investment.

What is a SIP?

A systematic investment plan is an investment mode through which a portion of your monthly income isinvested in mutual fund schemes every month, in place of investing the entire amount at one go like it is done in a lumpsum investment. Investments in SIPcan either be scheduled monthly, quarterly or even semi-annually. Afterinvesting gradually through SIPs, it can become relatively easier to achieve your financial goals.

Asystematic investment planenables you to purchase a certain number of fund units. Irrespective of the market conditions, if you were to continue investing in the fund for a long time, you end up accumulating a considerable amount of wealth.After determining things like the tenure and frequency, you can choose to leave a standing instruction with the bank. With standing instruction, you can choose to automate your investments.By leaving the said instruction, every month, a certain sum is deducted from your bank account into the mutual fund SIP of your choice.

How do they work?

Through a SIP, a fixed sum of money is invested in a specific period. Through these investments, you purchase a certain number of fund units. If you were to continue for a long time, you can invest in the fund during both, the highs and lows of the market. Simplyput, you are not required to time the market to make your investments. The action of market timing can berisky as one can invest at the wrong time. On the other hand, SIP investments remove this factor of unpredictability. Afterdetermining the investment tenure and frequency of investment, you can choose to automate your investments. Leave a standing instruction on your bank to transfer the amount directly from your bank account into the mutual fund scheme of your choice, on a fixed date.

Are there any rules that you need to follow?

Yes, there are some rules that you can follow to make sure that your SIP works in your favour:

  1. Start as early as possible:

That is the cardinal tip for all kinds of investments. The earlier you start investing, the more you earn returns on your investments. That feature is referred to as the power of compounding.

  1. Be disciplined; continue investing regardless of the market conditions:

It is also very important to be disciplined while investing in SIPs. After opting for a SIP, please ensure make surethat you don’t discontinue the SIP or even miss on SIP contributions for that matter.If you were to terminate the SIP whenever the market is going through a volatile phase, then the long-term wealth creation will be grossly impacted.

  1. Please make sure to reviewthe performance of the fund:

You also need to monitor your SIPs on a regular basis. As SIP is known for coming with the potential to offer inflation-beating returns, you need to check if your assumptions about inflation in the future are correct.Doing so will give you an insight if you could be right or overestimated your return assumptions.

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How to use mobile netbanking apps for current and savings accounts?

A mobile netbanking app is a tool that allows you to do more than deposit and withdraw money. You can open a savings or current account, open a fixed deposit account, apply instantly for a personal loan, and track our transactions 24/7. Let us look at the various services that mobile netbanking apps offer and discover the features of IDFC FIRST Bank’s mobile banking app.

How to open a savings account via mobile net banking?

To open digital savings account with any bank via mobile net banking, you generally need an internet connection, your KYC (Know Your Customer) documents, and a smartphone enabled with a camera for video KYC. The procedure to open an online saving account with the IDFC FIRST Bank mobile banking app is simple and is as follows:

  • Download and install the IDFC FIRST Bank mobile banking app
  • Log in via your user ID, password, mobile number, or MPIN.
  • Log in subsequently for mobile banking through face ID or thumb.

How to use themobile net banking apps for current and savings accounts?

Digital banking apps help you access your bank’s mobile net banking services, including account opening. Here are the various features of the app and the services that you can access via mobile banking:

  • Online account opening: Via mobile net banking services, you can open a new online bank account – savings or current – anywhere and at any time.
  • Easy money transfers: With a mobile netbanking app, you can carry out easy money transfers via NEFT (National Electronic Funds Transfer), IMPS (Immediate Payment Service), or RTGS (Real Time Gross Settlement).
  • Instantly apply for a personal loan: You can also apply for an instant personal loan through a mobile banking app. IDFC FIRST Bank’s mobile banking app, for instance, helps you apply for a personal loan and receive the funds within a few hours.
  • SMS/WhatsApp banking: Mobilenet banking helps you get instant notifications and track your transactions via SMS or WhatsApp. You can get answers to quick account queries in real-time and quick access to your account and loans. You can also block your debit card or stop cheques via this option.
  • Video banking: Certain mobile netbanking apps facilitate video banking, too. It can help you resolve your queries via videoconferencing. IDFC FIRST Bank’s mobile banking app also offers this feature.

How to register for the IDFC FIRST Bank mobile netbanking app online?

You can register as a customer to avail yourself of IDFC FIRST Bank’s consumer banking services via its mobile banking app in six simple steps:

  • Download the IDFC FIRST Bank mobile banking app and register yourself with your registered mobile number.
  • After entering your register number, you need to provide your Customer ID. Your customer ID can be found in your welcome kit, the welcome email that you would have received from IDFC FIRST Bank or on account statements shared by the bank on your registered email ID.
  • Authenticate your account with your account number. Your account number, like your Customer ID, can be found in your welcome kit, welcome email, or on account statements shared with you on your registered email address.
  • Verify your registered mobile number on the current banking app by entering the OTP sent to that number.
  • A 4-digit MPIN helps you log in to the new mobile banking app faster. Set up your MPIN to enable quick logins.
  • Your mobile banking is now set up. As a final step, check whether you can log in securely with your MPIN.
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Best Airtel Recharge Plans To Keep Your Mobile Number Active

Airtel is one of India’s leading mobile operators. It operates a robust and widespread 4G network throughout the country by providing several recharge options for its users. If you wish to keep your Airtel number active at all times, you can choose a basic plan and enjoy uninterrupted mobile services. Read on to know more about the best Airtel recharge plans of 2022 and how they might be a smart way to keep your mobile services active.

Airtel Recharge Plans for Talktime

If you’re seeking for Airtel Talktime recharge plans, check out the plans mentioned below:

  • Rs 10 – The top-up plan comes with 7.47 minutes of talk time.
  • Rs 20 – The recharge plan includes Rs 14.95 in talk time.
  • Rs 100 – You will acquire Rs 81.75 for talk time.
  • Rs 500 – The top-up plan includes 423.73 minutes of talk time.
  • Rs 1000 – By recharging the Rs 1,000 plan, you would receive Rs 847.46 in talk time.

Airtel Recharge Plans for Data, Calls, SMS and Other Benefits

  • Prepaid Recharge Plan of Rs 99

The Airtel online recharge plan is valid for 28 days. Users can make local/STD calls for 1 paisa per second. In addition, the package includes 200 MB of data and Rs 99 in talk time.

  • Prepaid Recharge Plan of Rs 109

Airtel’s smart recharge package includes 99 minutes of call time with 200MB of data and is valid for 30 days. The plan also adds 2.5 paise per second for local and long-distance calls.

  • Prepaid Recharge Plan of Rs 111

The plan provides 2.5 paise per second for local and STD calls. It also includes a Rs 99 talk time balance and 200MB of data throughout the validity period.

  • Prepaid Recharge Plan of Rs 155

The Rs 155 Airtel recharge plan includes 1GB of 4G data for the validity period. The recharge plan is valid for 24 days. Users also receive additional perks such as unlimited voice calls, 300 SMS, Airtel XStream, Wynk Music, and Amazon Prime Mobile Edition. Free 30-day trial with Hello Tunes.

  • Prepaid Recharge Plan of Rs 209

For the validity period, the Airtel prepaid plan provides 1GB of data every day. The pack is valid for 21 days and includes unlimited voice calls on local, STD, and national roaming. It also provides 100 SMS each day. In terms of perks, the plan comprises a free 30-day trial of Amazon Prime Mobile Edition, free Hellotunes, and Wynk Music.

  • Prepaid Recharge Plan of Rs 265

Airtel’s Rs 265 recharge plan provides 1GB of 4G data each day for 28 days. Interestingly, the corporation provides free 500 MB per day via the Airtel Thanks application. Extra perks include unlimited voice calls, 100 SMS per day, Airtel XStream, Wynk Music, and free Hello Tunes. With this pack, you can avail a 30-day free trial of Amazon Prime Mobile Edition.

  • Prepaid Recharge Plan of Rs 299

The Rs 299 Airtel online recharge plan includes 1.5GB of 4G data per day for 28 days. It includes 100 SMS per day, unlimited voice calls, Airtel XStream Premium, free online courses at Shaw Academy, Wynk Music, mobile virus protection, and free Hello Tunes. It also provides a Rs 150 cashback on FASTag.


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Can I Get a Personal Loan Without PAN Card?

PAN Card is a necessary document in various financial dealings. This covers your market investments as well as the acquisition of any financial instrument such as FDs. Moreover, every transaction beyond Rs. 50,000, especially when purchasing pricey jewellery or a vehicle, needs you to provide your PAN data. Similarly, opening a bank account or applying for a loan offer may not materialize without a PAN.

However, not all loan applicants have their PAN cards with them. Thus, is it feasible to obtain a personal loan without a PAN card? The answer to the above question is yes. However, the process is a little lengthy and is discussed in detail below, so keep reading.

How to Get a Loan Without Pan Card?

According to government regulations, it is difficult for financial institutions to lend to applicants who do not have a PAN number. Furthermore, the Aadhar card must be linked to your bank account and PAN for instant loan approval. This facilitates the government agencies to keep track of your financial transactions and prevent financial fraud. However, some lenders extend loans without a PAN card to eligible candidates.

In case you do not have a PAN card, submit the alternative documents listed below to get a loan.

  • If PAN is not available, then Form 60 is mandatory.
  • Photo identity proof: Passport, driving license, Aadhaar card number, Voter’s Identity Card, NREGA job card
  • Address Proof: Passport, driving license, Aadhaar card, Voter’s Identity Card, NREGA job card
  • Deemed Official Valid Document: Any service provider’s utility bill that is less than two months old (electricity, water bill, telephone, piped gas, post-paid mobile phone), Municipal tax receipt, pension payment orders (PPOs) etc.
  • Income proof: Latest salary slip, Recent Audited Financials, Bank details of last three months salary credited.
  • Business Proof: Qualification Certificate or Certificate of Practice(COP), Shop Act License, GST registration, Partnership Deed, etc.

In addition to the above documents, it is vital to have a high credit score of 750 or above for getting a loan. A high score gives confidence to the lender about your financial prudence and intent to repay. In addition, the bank details provided help banks determine your present and past financial condition and your repayment capacity. All of the records mentioned above must be sent to the bank together with the fully completed loan application form. Banks may issue you a personal loan without a PAN card once your paperwork has been examined and your eligibility has been determined.

One of the most common reasons for a personal loan application being rejected is the applicant’s lack of eligibility due to inadequate documents. However, before applying for a loan, you should examine your loan eligibility as well as the paperwork required to obtain a loan. If you do not have all of your paperwork in order, you should contact your bank and inquire about the alternative credentials you may submit to secure the loan. For example, people who do not have a PAN card might use the above criteria to obtain a personal loan.

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A case for investing in Equity Funds with your ULIP

When you are planning your finances, there are some investments you choose to secure your life and some to generate high returns. There are financial instruments these days that provide security along with investment, like a Unit Linked Insurance Plan (ULIP). A ULIP is a type of life insurance with an investment component to it. When you buy a ULIP policy, half of the premium amount you pay is used towards providing you with a life cover, and the other half is used towards investments. In case the policyholder loses their life during the tenure of the ULIP, they will receive a sum assured. It creates financial security for your loved one in your absence. However, if the policyholder has survived when the ULIP has matured, they will receive the sum of investment along with its return.

The fund performance of a ULIP is directly subjected to market volatility. For the investment part of ULIP, an investor has several benefits that most traditional programs fail to offer. If one has never invested in equity markets or finds it too risky, a ULIP is the perfect instrument to start with. Here are some reasons you should invest in equity funds through your ULIP-

  • High returns
    ULIPs that are allocated in equity funds are high risk and often offer high returns. When compared to other life insurance products with savings or investment components, a ULIP with equity funds offers much higher returns. Also, these returns easily beat the returns you get from traditional investments like Fixed Deposits (FDs).
  • Flexibility to switch funds
    When you are investing in ULIPs, based on your risk appetite, you have three options to allocate your funds in; equity, debt, and balanced funds. If you are afraid of putting all your money in equity, you can balance out the risk by investing in a balanced fund. In balanced funds, half of your money is invested in equity and the other half is invested in debt. So, the risk is moderate and so are the returns.You can also invest in equity funds initially and later switch to debt funds. Several investors prefer to switch from equity to debt during the time of maturity. They earn great returns from their equity allocations in the initial years and later, to reduce the risk, they invest the money in debt funds. The flexibility of switching your allocation accelerates the fund performance of ULIP as it helps one to mitigate the risks and make the most of market fluctuations.
  • Enables long-term wealth generation
    ULIP in the long haul helps in wealth generation through the power of compounding. It helps one to achieve their long-term financial goals like buying their dream house, their child’s education, or simply their retirement. Equity funds of ULIP offer high returns which in the long run can multiply with compounding. Use a ULIP plan calculator to get an estimate on the returns of your ULIP and to determine whether the investment is enough for your goals. With a goal-oriented approach, the investments and returns of ULIP would benefit one greatly in the long haul.
  • Allows partial withdrawal
    Traditional investments like FDs restrict partial withdrawals and one may have to break their FD to access the funds in it. With your ULIP policy, you can make free partial withdrawals after the lock-in period. The lock-in period for most ULIPs is five years. If you need to withdraw funds early before the lock-in period, you can, but you would have to pay certain fees for it. The feature of partial withdrawals is handy during times of emergencies.
  • Tax benefits
    ULIP is a tax-saving instrument where you receive tax benefits at every stage of your policy. The premiums that you pay for your ULIP are exempt from taxes under Section 80C of the Income Tax Act. Most insurance companies allow you to switch between funds at least two or three times, levying no charges. When your ULIP matures, the investment and returns that you receive are also exempt from taxes. Under section 10 (10D) of the Income Tax Act, the sum assured received after maturity and the life cover, both are tax-free.

The returns and flexibility of ULIP with equity funds have made it a more popular investment choice than most traditional investments. Planning your ULIP investments, using a ULIP plan calculator, and taking financial decisions, accordingly, will enable you to meet your long-term goals.

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Calculate Your SIP Amount And Portfolio Value With An Online SIP Calculator

Deciding to invest in a mutual fund through the Systematic Investment Plan (SIP) option is a good call. To make it a great call, you should use an online SIP calculator to know the right SIP amount you should choose as well as the portfolio value that you can expect.

What is a SIP mutual fund calculator?

A SIP mutual fund calculator allows you to accurately determine the amount you need to save and invest to meet your financial goals. For instance, if you are investing in a mutual fund to buy a car after three years and you need Rs 8 lakh, an online SIP calculator will tell you how much you need to begin investing monthly from now on to reach that goal in your desired timeline.

A SIP mutual fund calculator estimates the kind of returns you will earn on your mutual fund investment and gives you a projected portfolio value at the end of your investment period. This helps you have a fair idea of how much your money will amount to and allows you to compare your mutual fund investment with other investment options to see if that’s the investment best suited for this specific financial goal of yours.

How to use an online SIP calculator?

You can find a SIP calculator on most of the Asset Management Companies (AMC) official websites. Here are the things that you need to enter:

  • SIP or lumpsum investment
  • Monthly investment amount
  • Expected rate of return
  • Period in years

Here is what the result will include:

  • Total invested amount
  • Estimated returns amount
  • Total portfolio value

You can try various permutations and combinations of the monthly investment amount and the period to arrive at a total portfolio value that will allow you to meet your financial goals. As for the expected rate of return, you should look at the factsheet of the mutual fund schemes that you have zeroed in on.

Online SIP calculators tend to use this formula:

Portfolio value = P [(1+i)^n-1]*(1+i)/i]

P = SIP amount you invest
i = The rate of interest
n = The number of SIP payments you make

Things to keep in mind when using a SIP calculator

When using a mutual fund return calculator, it’s important to note the following:

  • You can use it for both a lumpsum investment as well as a SIP investment in mutual funds
  • Most mutual fund calculators do not have the option to account for inflation
  • Your portfolio value should be adjusted for the inflation rate to give you a real estimate of its worth at the end of the investment period
  • The SIP portfolio value does not account for the expense ratio and the exit load, if any
  • The rate of return is only a rough estimate, and your actual returns may differ depending on the market conditions

Final thoughts

Strategic planning is the key to personal finance and an online SIP calculator helps you do just that. By helping you figure out the ideal investment amount and tenure based on your financial goals, it gives you a clear way forward. It also takes away the headache of having to manually calculate your estimated returns and investment value when you invest in a mutual fund.

The MF calculator is a quick and convenient investment tool that you should make sure to use before you invest in any mutual fund scheme. Using it during the initial steps of financial planning and when comparing different investment options and strategies can be beneficial.

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Are Multi-asset Funds a good investment option?

Mutual funds are one of the best investment instruments that can help you achieve your financial goals. Apart from providing you an opportunity to earn inflation-beating returns, they allow you to invest in various asset classes as per your investment objective and risk appetite. Different mutual funds invest in different asset classes, including equity, gold, debt, real estate, etc.

However, not all asset classes perform well during certain periods. For example, equities generally perform well during the growth periods, while debts usually perform well during periods of decreasing interest rates. Similarly, gold is considered a good investment option when the markets are too volatile and you don’t want to take that many risks.

This is the reason why it’s very crucial to invest in the right mix of asset classes. However, it might not be easy for you to time the economic cycle and change your asset allocation strategy accordingly. So, what you can do is invest in multi-asset funds.

What are multi-asset funds?

The Securities and Exchange Board of India (SEBI) has laid down certain guidelines for the classification of mutual funds. And as per the SEBI guidelines, a multi-asset fund is a mutual fund that invests in a combination of at least three asset classes. The minimum allocation of each of these assets should be at least 10%.

Typically, the objective of a multi-asset fund is to create a diversified investment portfolio for the investors. They can choose the distribution of asset classes and their composition as per their risk profile and investment horizon.

Are multi-asset funds good for investment?

Multi-asset funds can be a very good investment option for risk-averse investors who want to enjoy steady returns from their investment. Investing in multi-asset funds helps such investors to diversify their risk across investment classes and earn from each one of them during various phases of the economy. Let’s look at the advantages of investing in multi-asset funds:

  • Diversification

As mentioned, multi-asset funds help you diversify your investment portfolio by investing in different asset classes. This eliminates the risks associated with investing in just one type of asset class. It also allows you to earn steady returns through various market cycles.

  • Portfolio rebalancing

Rebalancing your portfolio from time to time is very crucial. Multi-asset funds come with an option of automatic portfolio rebalancing that can help you in many ways. When the markets become unpredictable and volatile, your fund manager automatically adjusts their asset allocation strategy to protect your investment from market fluctuations.

  • Convenience

Multi-asset funds protect you from the hassles of monitoring the market movements daily. They provide you with ready-made diversified portfolios managed by professional fund managers. You can avail the benefits of different classes by investing in just one mutual fund.

  • Flexibility

You can invest in a multi-asset fund either as a lump sum or through a Systematic Investment Plan (SIP). This provides you greater flexibility to invest as per your investment objective. Also, you can enter or exit these funds without incurring any additional charges within a year.


Investing in multi-asset funds is a good idea to diversify your investment portfolio without actually investing in multiple mutual funds. This strategy can help you gain steady returns during volatile markets.

If you want to invest in mutual funds online, you can download Tata Capital Moneyfy App on your smartphone and start investing seamlessly.

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