March 2017


Mistakes to Avoid While Calculating Loan Amount and EMI

Be it a home loan or a business loan, some factors should be taken into consideration while calculating the loan amount. While there are tools like EMI calculator, which make the job of calculating EMI simpler, it is still crucial to stay vigilant to ensure smooth repayment. Some mistakes that you should avoid while calculating loan amount and EMI are mentioned in this post.

Home loans and business loans are two of the most common types of loans availed in India. To meet the growing needs of all the different types of borrowers, NBFCs now offer many different types of home and business loans to meet the specific requirements of the borrowers. However, when it comes to taking a loan, there are many different factors that one should consider.

Calculating loan amount and EMI is one such important factor. If it is a home loan, for instance, NBFCs usually offer up to 80% of the cost of the property in the form of a loan. However, not every borrower is required to avail this maximum home loan amount.

While an online EMI calculator surely makes this job easier, it is still very important to thoroughly calculate how much loan you need to ensure that the repayment process is smooth and free from any penalties. Some of the mistakes that you should avoid while calculating home loan amount and EMI are mentioned below-

  • Borrowing More Than You Can Repay

It is rightly said that one should not live beyond their means. When it comes to calculating the loan amount, it is very important only to borrow an amount which you can easily repay without stressing your other personal and professional expenses. It is usually recommended that the EMI of a home loan should not be more than 30%-40% of one’s monthly income.

  • Going for a Long Repayment Tenure

For a home loan, NBFCs usually offer a maximum tenure of 30 years. While choosing a longer tenure is very tempting as it reduces the monthly EMI, one should go for the shortest possible tenure that they can afford. As the outgo of interest increases with the increase in tenure, there can be a substantial difference between the total amount one pays for a 10-year loan and 20-year loan.

  • Not Considering Lifestyle Expenses

While calculating how much EMI one can pay on a monthly basis, it is very important to consider lifestyle expenses too. Borrowers who like to splurge on vacations, entertainment, and outside food on a regular basis can be in serious trouble if they fail to consider this important aspect while calculating their loan amount and EMI.

  • Borrowing Hastily

A home loan or a business loan is a long term commitment and the EMI usually, makes up for a significant expenditure in your monthly budget. Thus, borrowers should surely take some time out to think about all the different aspects, like current income, the possibility of decrement or increment in future, current lifestyle, current expenses of the family, future expenditures, other investments, etc. before taking a loan.

While many different types of loans are now widely offered by NBFCs to make it easier for us to achieve our dreams, proper calculation of how much loan you need and EMI you can pay is very important. It is by staying vigilant throughout the borrowing and repaying process; one can ensure financial stability and achieve the goals of their personal and professional life.

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A home back home- NRI Home Loan made easy!

Most Non Resident Indians are now getting lured by the consistent growth of the Real Estate back in the country. As a developing economy, India has a lot of opportunities to offer in terms of stability, good land rates and easy policies to make a house. Here are five points you should bear in mind while considering a NRI Home Loan:

1) What do you get as an NRI in terms of a home loan?
When you look at it largely, procuring a home loan as an NRI is as convenient as for a resident. You can apply home loan for four type of properties- ones that are already constructed; ones that are under construction; existing properties liable for changes and existing plots where homes can be made. You can either apply for a home loan for a new property or to make changes in an existing property. In both the scenarios, different lenders in the market will offer loan with different terms and conditions.

2) How much can you apply for as an NRI?
There is no set rule or a percentage fixed for an NRI. You can get an NRI home loan on the basis of three criterions- the first and foremost being your gross or net income; second being your country of current residency and last but not of least importance is the education and professional qualification that your application comes with. Based on all of these, a bank will further offer you a loan most suited to your needs along with different terms and conditions.

3) The rate of interests along with the tenure
The rate of interest is one factor where there is differentiation between an NRI and a resident Indian pertaining to home loan procurement. A resident can apply up to a loan of 30 years depending upon his age and net income; whereas an NRI has to re-pay his loan within five to fifteen years. This largely depends on your loan amount as well as bank. An NRI is also subjected to an increase of 0.25%-0.50% increase in the interest that he pays.

4) Change in loan scenario if there is a change in the NRI status
To repay your loan, you have to use your NRE account or an NRO account. In between the tenure, if you happen to change your status from an NRI to a resident; then all the conditions of the loan specially the interest as well as the tenure will be changed. This is highly unadvisable as the process can get tedious and troublesome for the buyer.

5) Documentation required
The documentation required to get a NRI home loan is quite an obvious list but still an elaborate one. You require the following documents to be eligible for a loan:

– A valid visa
– An official permit of your work
– Copies of passport
– A work experience certificate reflecting upon how much you have worked.
– Statements from the bank
– NRE or NRO accounts statements
– A resident card, if you are currently based in the Middle-East
Your bank is sure to provide you with an exhaustive list of the documents you require.

All of these points need to be kept in mind when you are applying for a NRI Home Loan.

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Best Trading Platform in the Present Times

Do you wonder what you understand by forex trading? It is trading of currencies from different countries against one another. Forex will be best described as an inter-bank market. It was started in 1971, as there was shifting of global trading from fixed exchange to floating rates. This set of transactions among Forex market agents entails exchange of particular amount of money. The money will be in the form of currency unit of any one country for currency of another country at a decided rate as of any particular date. However, during the exchange, the supply and demand rate to which both parties agree to will determine the exchange rate of one currency to another currency. It would not be wrong to state that Forex trading is a financial game amongst bulls and bears.

Understanding forex trading

Forex trading includes signals that will be best described as indicators. These will let you know when it is a good time for purchasing or disposing off any currency. These are stock trading signals that will provide you with relevant insight to what is going on in the Forex market. You will be able to gather essential knowledge without the need to monitor Forex trends all through the day. If another company has employed you or you are self-employed, these artificial intelligence trading signals are likely to become a great part-time endeavour for you. Yet another good option together with many others will be Mib700.

Volatile market

You may not have enough time to sit in front of the computer and monitor Forex market all day long. Therefore, certified and professional Forex traders will deliver these accurate trading signals to you all through the day. In order to cater you with a heads-up on what has been going on in the market, you will need to rely on these reliable trading signals. You can receive these signals and place the signals for buying or selling.

What is MIB700?

It has been a fact that understanding and trading in forex would be a daunting task for most people. You may rely on signals, but does not guarantee you success. Therefore, it would be pertinent to mention here that you would need a strong platform for achieving success in your trading business. You would need a platform like MIB700, for example. The platform caters you with several benefits suitable to your forex trading needs. It would not be wrong to suggest that several dealers, both new and old, have gained significantly from the forex trading industry. It has been a golden ticket to rise in forex trading. For more information on MIB700, you could log on to Mib700.

Several benefits associated with MIB700

Like several dealers have been boasting of in the recent past, MIB700 has been known to offer you with great chances of success in the forex trading industry. The platform caters to your needs in the best possible manner. It has been determined as the greatest trading platform for forex dealers. You can know more about the platform on Mib700.

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Things You Must Know About CPA And Tax Preparation Services

Bookkeeping can be a messy job. As an entrepreneur or owner of a small business, you wouldn’t want to waste your time doing things that can be easily delegated. Regardless of your business objectives, requirements, sector, and industry, you need to hire a financial and tax advisor. You don’t need a random accounting firm, but professional services of a Certified Public Accountant, simply known as CPA. With changing tax norms and complex regulations, CPAs are becoming more relevant for small businesses. In this post, we will talk about the advantages of hiring an accounting firm and things that you must check before making a choice.

Incredible benefits   

Accounting and tax services are always flexible. Depending on your business needs, you can seek all sorts of help, right from the management of daily transactions to specific inputs on financial decisions. A CPA also looks into the tax norms, so as to reduce the tax liability of his clients.  If you have missed out on important dates, you can also ask for late tax return preparation help. Accountants will also check for all accounts receivables, so that you can keep a check on your customer base. As required, they may also offer direct assistance with various financial investments, to reduce future hassles.

Choosing the right service

Honestly, the whole process of selecting a CPA can be confusing. There are numerous firms around, and each one probably will claim to be the best in the industry. However, you just need to keep an eye on a few basics. Firstly, the company should be experienced in your industry. Some CPA firms only deal with certain sectors, so choose a service that understands your business and overall operations. Secondly, the company/service should be available to take questions and offer quick help. You don’t want to wait for days to talk to your CPA, especially when you an impending decision to make.  Thirdly, don’t miss on charges and costs. Accounting firms often charge their clients in different ways. Some may want a fixed fee each year, while others may seek payment for every individual task.

Lastly, you should be comfortable with your CPA. Accountants work with financial data and internal information, and you need to have complete trust on the company you choose. Ask questions regarding their services, and if possible, seek a personal appointment to know their work approach and ethics. You won’t change the accounting service every year, so take some time before taking the final call!


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If You Have an Online Business, You Need an Online Payment system

We live in a digital world where it is almost impossible to have your business taken seriously if you don’t have not only a website but one that is interesting and professional. For many businesses, that means it must do more than simply tell you what they do, it must have an ability to offer for sale right here on the website what you might sell in your store.

Of course, to do this you would need to have some kind of online payment systems available to your visitors. For many this may sound very intimidating, but the reality is that many website platforms include what is called a “plug and play” piece of software you can simply add to your website to give it the added advantage of an online store. But how does anyone find out how to set this up? We will share a few tips with you that can help you get started.

Start with a Great Website Design

Of course, no one will buy from you if your website looks clunky or if it is hard to understand what you do or sell. That is why everything begins with a great design. Luckily there are tons of great website designs, called themes, that you can upload to your WordPress platform that are free (so is WordPress, by the way). So, taking the time to look through a bunch of free themes and finding one that looks right for you is a good start.

Tell Us About Yourself

Whenever I go to a website for a company I know nothing about, I always head to their About Us page. If you don’t have one, I assume you don’t know what you are doing and move on to another site. Your potential customers will do the same.

That is why it is so important on any site to have an About Us section that tells who you are, what you do and why you are a good place to spend time and maybe even money. Nothing that reads like a promo, just honest introduction is the key here.

Got Partners?

If you are a new company and want to show you are trustworthy, having a page that shows off who your “partners” are is a good idea. It might be your vendors, it might be a company that regularly buys from you or any other relationship. They may not be a huge known company such as Bank of America or Coca-Cola, but it helps if they are established.

Payment and Online Support

This can be a tricky one for some smaller companies but it is vital if you are selling online. One way to get great support is to use an established payment center such as AltaPay that will work with you on this. While the ideal is to have a live-chat help line to give your customers instant help, you can have email or any other way that works. The important thing, very important in fact, is that you have a way for customers to reach you when a problem comes up.

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Online Forex Trading with TraderVC

Online forex trading has become very popular among traders all across the world. One of the reasons for its popularity is the convenience that it provides for users. Now anyone can sit in the comfort of their homes and conduct forex trading transactions with the click of a few buttons on their PC, laptop, tablet, smartphone or other mobile device. There is no need for any commuting as everything from the actual investment to the receipt and distribution of profits is all done digitally. If you are looking for a forex trading opportunity, TraderVC reviews show that the platform is the one to choose.

As a trader, you can choose from a variety of popular currency pairs and gain access to the world’s leading forex markets. You are able to see, in live time, how each currency is changing and are able to process transactions in real time. With forex trading, timing is key, and the Trader VC platform allows you to capitalize on that. If you are new to forex trading, the Trader VC platform offers a wealth of trading tools and a trading academy that will help you to get started on the right path.

Conducting online forex trading is a simple 4-step process on the Trader VC platform. To begin, simply choose your trading instrument, then choose your trading asset. Step 3 is to make your prediction and in the final step you simply enter the amount that you wish to invest in that trade and click on the invest button. That’s it! The site offers several ways that you can deposit your investment funds including through credit card, Paypal, money transfer, Skrill and many more. When you are ready to withdraw and profits gained through your forex trading, simply make the request and relax. The process is quick and seamless.

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What Are The Reasons For Hiring A Tax Preparer?

If you don’t have sufficient knowledge on the latest updates rules of the IRS, it is better you appoint a professional tax preparer and give him/her the responsibility of your tax filing. One of the most crucial reasons that most taxpayers hire a professional CPA or a tax firm is to avoid anticipated mistakes while tax filing. Often it becomes difficult for a pro to prepare his/her tax because they lack time. Whatever may be the reason, hiring an expert tax preparer is always a good step that you can take and we have a few good reasons to convince you.

Avoid mistakes and heavy penalties

You can prepare an error free tax file with the help of a firm or individual efficient in tax preparation West Palm Beach or any particular area you are located. It is quite possible that you being a taxpayer are not that well acquainted with the rules and laws of the tax filing. Each year, more or less, the structure of the forms is changed that becomes more confusing for the taxpayers filing for it. If you have also experienced the same then instead of doing the recurring mistakes, you can move ahead for a professional support.

Visit a CPA firm or a wealth management firm that also ensures tax preparation services or you can also hire an independent tax consultant for the job. Avoid doing mistakes in the filing otherwise, you can be highly penalized for the errors shown in the papers. Instead of DIY, it’s high time when you consider hiring a professional that can offer you an error free tax preparation by following the latest updates per the rule book of the IRS.

Save Time

After rushing for the daily errands, you may feel tired while preparing the tax. It can be hectic and time-consuming if you’re not well aware of the laws and rules that have been changed in the recent past by the IRS. Instead of spending hours and killing time, you can appoint a professional tax preparer that can take the responsibility of preparing your tax along with dealing with the previous discrepancies pointed out by the tax department. Only a certified professional can resolve the difficult issues for the clients and help them in avoiding paying the havoc penalties for the previous errors.

Professional guidance

Having an expert tax prepare by your side can increase your confidence. Apart from submitting an error free form, you can expect guidance from the expert. Considering your annual income and the amount of tax you pay, the tax consultant can help you by suggesting investment plans following which you can easily save more taxes and utilize the money for your future investments.

Finally, it is completely your decision by how you will prepare your taxes whether by yourself or with the help of a tax preparer considering the circumstances. But, whatever you do, make sure you should give your best efforts in doing the returns to pass the IRS auditing successfully.

Author’s Bio: Luke Durante is a professional tax preparer owing a firm for the last couple of years. He is also a dedicated author, helping his readers by sharing tips and ideas about taxation and the new IRS laws and amendments.


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5 Parameters to Consider While Choosing the Best Mutual Fund Scheme

Choosing the right investment scheme is pivotal to earn valuable returns. However, with the wide variety of mutual funds schemes available in the market, making the right choice can be difficult. In this write-up, we list down the vital parameters to consider to make your choice easier.

Every investor, depending on their personal financial goals and risk taking abilities have different reasons to invest in mutual funds. Whilst everyone wants to invest in a scheme that would offer them best returns, but not all investors are able to choose to right mutual fund scheme to invest in. If you are an amateur investor, the following tips will help you choose the right scheme:

Performance metrics

While choosing an investment scheme, it is imperative that you do a research on its performance metrics. Look at its recent as well as long-term performance. This will give a fair idea about how profitable it has been over the years. Check how the scheme has performed as compared to other similar schemes. It would be a wise idea to assess its quartile rankings; if a scheme has been among the top ranking ones over a period, you can be fairly certain that it is a safe investment haven. Try to notice a pattern in the performance and make your decision accordingly.

Ratio Analysis

No matter if you want to invest in mid-cap mutual funds or any other invest scheme, it is pivotal that you do a ratio analysis of the scheme; you must check for factors like standard deviation and Sharpe ratio. It is advisable to check the ALPHA of the fund, which would give a clear picture of how much funds has the fund manager generated from a certain portfolio in comparison to its benchmark. To put it the other way, ALPHA analysis is basically assessing the fund manager’s performance ranking.

Total Expense Ratio

This is one of the most important parameters to consider while choosing the right mutual fund scheme. You must look into the various expenses associated with the scheme; if the scheme has a high expense ratio, it would affect the returns. Although the expense ratio for all mutual fund schemes is capped by SEBI, it is advisable to look for schemes with lower expense ratio. Remember, money saved is money earned.

Fund manager’s credentials

Fund managers play a crucial role in the performance of the fund. Although mutual funds investment is very much process oriented, the fund manager’s experience, judgment and his viewpoint on different funds matter a lot. Before investing in any scheme it is important to get to know to the fund manager and review his past performance record. If you find that due to a change in the fund manager there has been a significant impact on the fund’s performance, which does not suit your risk appetite then you may want to exit the fund.

Fund Size

Typically, the size of the fund does not have any effect on the fund’s performance. However, sometimes the size of the fund can be too big for the fund manager to be able to buy small or mid cap stocks and as a result, it would not be feasible for small-time or low-risk investors to invest in the funds.

Disclaimer: Mutual fund investments are subject to market risks. Please read the scheme information and other related documents before investing.

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What is Systematic Investment Plan (SIP) Mutual Fund?

For a lot of us who may be just starting to invest or look at different kinds of investments, SIPs Investment plans could sound like a good idea. If you have heard about the rise and fall of the market and how you could lose all your money, the idea or a regular investment that could give your regular returns does sound soothing. Here’s all you need to know about SIP Mutual Funds.

SIPs allow you to invest a small amount regularly. This could be quarterly or monthly or even weekly basis. It helps you cultivate a habit to save regularly and build towards you future. An SIP links your bank account and auto debits the money you plan to invest from your back account. Every time you add money, the scheme purchases a number of units based on the market rate. Over a period of time, the units are purchased at different rates and you can benefit from the Rupee-cost Averaging and the compounded interest on your investment.

What is Rupee Cost Averaging?

Instead of waiting to find a right time to invest in the market, with an SIP you can begin investing immediately and the changing market trend will decide if you purchase more units at a lesser price or fewer ones at a higher price. When the market seems to volatile you could achieve a lower average cost per unit than your actual investment.

Compounded interest?

Most of us are familiar with this term in the context of loans. With investments, you gain the compounded interest. Therefore, the sooner you begin investing the more time your money has to multiply. Simply put, compound interest helps you gain an interest even on the money you received as an interest the previous year, therefore multiplying it. As your base amount keeps on increasing, the compounded interest on the same increases too!

Why should you invest in SIP?

  • Start small:

An SIP allows you to begin investment at a young age and even with a small amount. You don’t need to worry about collecting a large sum of money before investing it in mutual funds or shares or fixed deposits. SIPs allow you to begin investing immediately

  • Compounded interest

As explained earlier, the sooner you invest the more returns you would receive at the end due to the compounded interest. Even if your initial investment was small, the compounded interest would ensure gains.

  • Flexibility

While investing for a long term can promise you higher returns, you can invest at anytime and for a short period of time too. Over the years as you earn more, you could increase the amount, or decrease it in case you plan to invest your money somewhere else.

  • Discipline

Having a systematic investment plan helps you to discipline yourself to save a particular amount at the end of every month, therefore, you will automatically learn to budget your expenses and keep a check on them as well. Once you know you money could help you make more money, why would you invest in something that could be lying around in your room for the next 3 years.

Since the amount can be auto debited from your bank, investing in a SIP mutual fund will be super easy! You don’t have to worry about missing the date or having to travel to pay every month or week. It also saves you from the pressure of investing a huge sum since you can just invest a small amount that could add up to a bigger one at the end of the year.

Summary: Understand SIPs and how they work. For someone just beginning to invest, SIPs could be a perfect solution for various reasons.

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Iforex Mobile Trading Platform

Whether you are a part time or full time trader, you will likely find yourself in a situation where you are on the go, but still need to be in touch with the markets.  Having a reputable broker that can provide you with a mobile friend application, will help avoid any interruptions to your routine.  Whether you are executing trades, catching up on the latest news, or analyzing charts, having a mobile app will help you feel at ease.

Iforex, provides its clients with state of the art trading platforms including a robust mobile platform geared to smart devices.  An Iforex review reveals a company that is known for its ability to provide tight trading markets along with a platform which is constantly updating financial news and has 24-hour support. Clients of iforex are therefore able to trade whenever they choose, using the system they prefer while receiving information about changes in the market place and professional support when needed.

Using the Mobile Platform

The best part of the mobile platform is its ease of use.  There are several sections including trading, positions and wallet. When you open the trading portion of the application you have a view of currencies pairs, with a sell button and a buy button and the exchange rate where you can transact.  A simple touch of either sell or buy generates a trade.  If you desire to see additional detail on the currency pair you are thinking of trading just touch it and a new view will appear. If you want to scroll up or down, you just need a simple swipe gesture which will allow you to scroll through all the potential trading instruments.

The positions tab has three sub tabs, which include your open positions, your limits as well as your closed positions.  In your open positions tab, you can view the currency pairs where you currently have outstanding risk, and the unrealized gains or losses associated with those positions. If you want to close an open trade, all you need to do is swipe it and a close bottom will appear.  If you want to edit your trade and only close a part of your position all you have to do it click on the trade and a screen will appear that allows you to edit the detail of the trade. There is also an up and down arrow that allow you to toggle through the different open trades that are currently on your books.

The close position tab will show you the transactions that are settled along with the realized profit and loss associated with those transactions.

The wallet tab allows you to immediately add funds to your account, and see your account equity along with your balance, your net exposure and unrealized profit and loss. There is a line item that shows you your trading bonus, your available margin, as well as the margin you are currently employing.

There are additional screens that allow you to customize the trading instruments you want to see, as well as iForex’s contact details to receive profession assistance via, email, phone or fax.

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