How Short-term Debt Mutual Funds are Beneficial ?

debt funds

There are many options available to invest your surplus money. However, one needs to assess every possible alternative of the investment before actually investing into any. Short-term debt mutual funds can be an ideal choice if you are looking for a short-term investment. The short-term debt MFs invest in corporate bonds, government securities, treasury bills, and money market. It has a holding or lock-in period of 3 years. Investing your surplus money in the short-term debt mutual fund is beneficial in many ways.

Perks of investing in the short-term debt mutual fund –

  • Tax Benefits

Imagine your investment giving tax benefits. Sounds exciting, right! It is possible in case of short-term debt mutual funds. The debt funds held for more than three years are treated as a long-term investment and taxed at 20% with indexation. Also, TDS isn’t deducted from the returns.

  • Flexibility

Short-term debt MFs have high liquidity as compared to other MFs which is an important factor for the investor. You can withdraw your money plus returns anytime unlike fixed deposits. Short-term debt mutual funds do not charge you any fee for withdrawal, unlike other mutual funds which make them more flexible.

  • Low-risk factor

If you are not willing to take a big risk, then debt mutual fund is the perfect fit for you for the investment. It has low risk and will give you regular rewards than other mutual funds. Thus, it is ideal for the investors with low-risk appetite.

  • Safe and stable returns

Their shorter maturity period makes them less affected by the interest rates fluctuations. According to the debt logic, with a decrease in the rates of interest, the market value of debt grows or decreases. Nevertheless, fluctuations in the market have no major impact on the short-term debt mutual fund. It makes them better performers for the investor even if the market is fluctuating. Due to this, a short-term debt mutual fund gives you better returns as compared to the other mutual funds.

  • Transaction cost

As compared to other mutual funds, a short-term debt mutual fund has low transaction cost, which makes it more beneficial for the investors.

  • Indexation benefits

Another benefit of the debt funds is you can avail indexation benefit on your returns by reduced taxes.

With a low risk, better returns and tax benefits, the debt funds are always the beneficial options for the investors. All-in-all, with multiple advantages, the debt funds is a suitable alternative for you if your investment is going to be short-term.…

Read more

When Should You Take a Business Loan

This blog takes a look at five situations that require borrowing a loan from your bank.

Every business, whether a start-up company or an established multinational firm, sees ups and downs in its working cycle. There are times when further work is forestalled by a lack of revenues. At such times, it becomes impossible to function without borrowing money to take the next step.

However, smaller companies are not keen on getting into debt. But taking a business loan can also help the company in many ways. These are 5 top reasons for taking a business loan:

1. To expand operations

The primary reason why most companies borrow business loans is when they wish to expand the size and scope of the company’s operations. A company that takes off well and has stable revenues will wish to increase its bottom line even further. Thus, it may need a business loan to buy new office premises, or invest in storage facilities, or put in place a new supply-chain network or just expand into a new geographical area. A loan from the bank at this juncture can give a fillip to these plans.

2. To buy more equipment or hire manpower

Once a business starts expanding its scope of operations, it must invest heavily at all levels to ensure steady growth. You can hardly expect that the initial capital, machinery and staff strength you began with can sustain the next level of development for the company. For example, if you are the owner of a gymnasium in a metro city, you cannot open a new branch without some amount of capital investment in new exercise machines and trainers. Thus, your company must invest in more specialised equipment – you may even need to import it –and trained manpower to realise the next stage of growth. Prepare a business report and present it to your bank for their approval of a business loan for your future plans.

3. To explore a business opportunity that requires capital

Some companies get off to a good start after commencing operations, and soon, they have enough revenues in their coffers to consider the prospect of diversification. But branching out into a new or even allied branch of business is a capital-intensive decision – and your bank’s business loan products can help you realise this goal. For example, you could have an e-commerce website that retails clothing for young children. As an aside, you may wish to tie up with local manufacturers of children’s footwear, bags and toys to retail their products under your banner, for a commission. But this needs investment in terms of setting up warehouse and inventory, putting in place new delivery systems, organise shipping methods, etc. You cannot go ahead with this plan unless you secure a business loan – your bank can help you in this regard.

4. To get access to working capital

Sometimes, all you need to keep company operations coasting along is an infusion of funds. Business revenues may be …

Read more

Angel Fund

Angel FundingJanuary 30, 2017- Cammio, the European video recruitment specialist, nowadays announced the thriving closing of new growth funding to expand presence in important European markets. Members invest in deals individually, therefore only a smaller percentage of members require to participate for the venture to safe funding. The most critical aspect of raising funds by way of crowd funding is you continue to spread your word on a everyday basis and be open and truthful with the individuals you hope will invest in you.

Angel funding affects the subsequent likelihood of a profitable exit, raising it by ten% to 17%. This video is then placed on these crowd funding web sites where people today can watch them, get much more facts, and if they determine to they can invest in that project.

The kinds of perks and bonuses that will come to the angel funding provider in the course of exit also will need to be talked about in the exit tactic. Though that may perhaps be true for a modest quantity of entrepreneurs, the reality is that many entrepreneurs who acquire angel funding nevertheless have to face conventional financiers and venture capitalists at some stage.

We use discontinuities in the funding likelihood of start-ups that are primarily based on a cumulative level of interest about the deal on the aspect of the angel groups. Having said that investors may perhaps, at their own discretion, call for organization owners to have some type of investment produced into the organization prior to them giving any funding.

When venture capital are offered by firms angel funding generally comes from productive business enterprise folks who are negligible in number. Startup founders who have to have a kickstart to their company and have determined that an angel investment is the greatest way to get that kickstart.…

Read more

Things You Should Think About When You Seek A Loan Or Financing

When my husband and I decided to get into the real estate industry we weren’t as prepared as we thought. We had the proper credit and a little cash on hand however the loan process and price of the rental home took us by surprise. The house we purchased was inspected, but once we got in we saw it needed even more work if we were going to use it as a rental property. We needed a loan right away, but we saw that we were losing money while waiting to get in a position to receive help. When you’re seeking a loan or financing you are really asking for immediate assistance, enough funds, and a realistic payoff schedule.

Things You Should Think About When You Seek A Loan Or Financing

Immediate Assistance

As an investor, you are constantly moving money around and when it comes to loans you actually apply for it’s important to gain access to those funds right away. One option we looked into was a fix and flip credit line Chicago il. We needed funds that would arrive fast and be reliable and we aimed to go with a reputable company that was experienced in the type of financing we needed. The great thing about the company we chose is they offer a variety of loan options including revolving credit and renovation financing. This lender made us feel well taken care of.

Enough Funds

One thing to consider when you’re going to apply for a rental loan is how many rentals you really need help on. There’s a way to get a rental portfolio loan so you can properly manage all of your properties. My husband and I just needed a single asset rental loan. We made sure to only request what we really needed for financing. The turnaround time was so fast from approval to actually receiving the funds, it was really nice.

Realistic Payoff Schedule

Anytime you’re looking into financing one of the big questions you have to ask yourself is am I giving myself enough time to pay back this loan. We tend to bite off way more than we can chew and we spend years struggling because we’ve committed to paying something off in a short time. Think about the long game. I know there’s an interest rate and you want to save as much money as possible, we’ve been there. Sometimes it’s better to just negotiate a lower price or interest rate up front. You can still double or triple up on the payments as long as there’s no early payoff penalty.

Conclusion

Don’t be a poor landlord just to say you own a rental property. Invest in your property. Take the time to spruce it up and be proud of what potential tenants will see and then pay for. Our standards are if we wouldn’t live in it we wouldn’t ask anyone else to. We make sure our tenants have a minimum of a spotless place with all working fixtures. Since we dump so much money into our properties we keep …

Read more

Sebi Relaxes Rules For Angel Funds To Enhance Start

Angel FundingRob Neville, CEO of Savara Pharmaceuticals raised over $39M from 350 Angel investors, representing 30 Angel groups from around the planet. Try to remember, it is superior to be overly formal, and give your possible angel investor too considerably to function with, than it is to miss out on the deal of a lifetime since you did not bother! If it is the R50,000 you put in two angel offers in 2008, well do one thing about it. I am confident your entrepreneurs are open to suggestions, enable, connections, and insights.

We have been in a position to quantify the constructive impact that these two angel groups had on the businesses that they fund by simultaneously exploiting novel, wealthy micro-data and addressing concerns about unobserved heterogeneity. Examples: For the reason that of an angel investor, Martha was in a position to invest in the gear she needed to expand her small business.

As a small organization owner, you could use the experience on your board and the access to a different prospective round of funding. In this write-up, we look at what angel investors do, and why you may possibly still have to search for funding once again in the future.

Compact company owners might have to make several rounds of presentations to the angel investor or group to possibly safe their equity investment. To study far more about business trends, competitor’s economic overall performance and the essential economic ratios that funders appear at when making funding decisions, please go to -.

If you want to start your analysis on the net, you can take a appear at an Angelsoft, an angel investor network. Richard Harroch is a venture capitalist, angel investor, and bestselling author. Step three: We provide free of charge help & guidance on any adjustments that will support you attract the angel finance you are searching for and if we feel that changes are needed, you will be asked to do this.…

Read more