Friday, November 14, 2014

Can we Invest more than one lakh in PPF Account?

TL;DR : You can now invest more than 1 lakh rupees on your PPF account, thanks to increased limit in 2014 budget. Earlier this limit was only 1 lakh but now it is raised to 1.5 lakh and so without doing any extra trick, as shown in this article, you can now invest more than one lakh in your personal public provident fund account.

I wrote this post couple of months ago but couldn't able to post. I know things has been changed from them to now and that's why I have added opening paragraph with latest information, I thought to share how it was before, because it still possible that people will ask questions like, Can we invest more than 1.5 lakh in PPF account :-) .

Saturday, September 6, 2014

Best Bank to Open NRI Savings Account India - HDFC vs Kotak vs YES Bank

Recently I was doing some research to open a NRI Savings account in India, and given there are so many banks, both public and private sector are providing NRI services, I thought to do some quick checks about the best NRI savings account I can get this moment. One of my friend suggested me to open your NRI Savings account in HDFC bank, other suggested that he has account in Kotak Mahindra and very happy with their services especially rather offered on their remittance service click2Remit. My third friend suggested me to go for YES bank, a relatively new bank but with better services and more importantly better interest rate. Seems YES bank is offering highest interest rate on NRI Savings account, they are offering rate of @ 7% p.a.* for balance more than Rs. 1 lakh & 6% p.a. for balance up to Rs. 1 lakh, compared to 4% per annum from both Kotak and HDFC. Good thing is that interest for all rupee savings accounts will be calculated on the daily closing balances maintained in the account, and this is true for all three banks. So by chance if you keep more than 1 lakh in your NRI savings account, YES Bank is the best one for you. You can get much higher interest rate compared to Kotak Mahindra or HDFC. Apart from this deciding factor, let's see couple of other unique features provided by NRI savings account of these three Major bank.

Saturday, August 30, 2014

Why Should You Invest Some Money on Equities, Stock or MutualFund

Many people ask me whether they should invest money in stocks or mutual fund or not? I say, you should invest at-least some part of your money into equities, because it is the only investment which can beat inflation in long term. It's not that investing in equities will guarantee superb returns, because there are periods and even extending upto 5, 10, 15, 20 and even 25 years where equities has delivered negative, no returns or very poor returns. For examples in Japan, Equities has not really been the best performing asset class in last twenty years. Nikki, index of Tokyo stock exchange was around 39K on December 1989 and where it is now, around 15K, after touching lows like 7K and 8K during 2001 and 2009. What this mean, if you have invested in Index you would have one third of your money by now, forget about getting any interest. This may look you really contrasting from the title of this article, but it's true that there is no guarantee on stock market and even with mutual fund. You need to accept that fact to better organize your investment. The most important thing is that stock market is actually a proxy of the countries economy and so is inflation. Inflation will only rise if there is money to spend, and people will only earn money if there is job to do. More jobs means more production and consumption, which means growing economy. This is the key, if you feel an economy is in the start or mid of growing cycle, then investing in Equities is the best idea. 

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