How Short-term Debt Mutual Funds are Beneficial ?
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 … 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 … READ MORE ...
Kontrak Joint Venture ~ Understanding And Sharing
If you have study anything about opening a business enterprise or expanding the small business you currently have, it is likely you’ve noticed the term joint venture, or JV. A joint venture is a way for you to partner with a further company for a specific explanation or factors. Fortune magazine named Apple the most admired company in the planet in 2008, 2009, and 2010. Don’t confuse a JV with a ‘qualified joint venture,’ – a certain taxation type for husbands and wives in partnerships. Joint ventures are appealing since they enable businesses to share each risks and fees.
A partnership is defined by each and every state’s legislation as the partnership which exists among persons carrying on a business in widespread with a view to profit. The joint venture will augment the two airlines’ capabilities in the trans-Pacific marketplace and give the required scale and scope to compete in this market place.
Incorporated joint ventures offer significantly better asset protection to the joint venture parties than unincorporated ones. 1 reason lots of modest organizations enter into joint ventures is to take benefit of the items, ability sets or client base of a further company.
Government’s elevated involvement in the private enterprise environment has created extra opportunities for organizations to engage in domestic and international joint ventures. You recognize that you could both advantage by making a business enterprise partnership, and he agrees to your joint venture thought.
Another benefit of a joint venture is that any risk involved is … READ MORE ...
Financing Alternatives Accessible To Entrepreneurs
The attorneys in Blank Rome’s Venture Group represent sophisticated venture capital and growth equity investors and their portfolio companies. The pace of new venture capital offers gives us a higher-level understanding of how private-market investors approached the market place in the initial quarter. In dollar volume, early-stage rounds saw a important increase of 17.6 percent. The chart below offers additional detailed data about the various funding stages.
When you take debt of your balance sheet your earnings become greater, for the reason that they are a larger percentage of your total assets. But, in practice project financing is regarded from the time of project conception. Though funding received from partners is normally connected with equity financing, they can also supply funding in the kind of a loan which, would be categorized as debt financing.
While the banks are a solid source of such facts the banks themselves, by virtue of their charters and credit policies, are unable to directly satisfy all the financing needs of the consumer. There are two broad types of term loans available in India: rupee term loans and foreign currency term loans.
Solutions of foreign technicians may perhaps be expected in India for setting up the project and supervising the trial runs. That is why Venture capital funding is most widespread in the rapid-growing technology and biotechnology fields. If you think as we do that financing options and options exist for your firm we want to speak to you.
Not to be outdone by Wilson Sonsini, … READ MORE ...
Case Research And Methodology (Wiley Finance), 1st Edition, Lorenzo Carver PDF Download Ebook
If you have ever wondered about these and related queries, be confident to join us for the subsequent T3 program, on Tuesday, April 5th. Since the VC considers itself committed for the entire investment in Year , the VC does not discount the damaging cash flow in Year 1. The absence of adverse present values of totally free money flows in Years and 1 reflects the full investment in Year . As a result, the worth at time t= is a post-dollars valuation.
Exactly where a corporation has incurred losses, or if comparable quoted organizations are not mainly valued on an earnings basis, then the valuation may perhaps be calculated with regard to the underlying net assets and any other relevant details, such as the pricing for subsequent recent investments by a third celebration that is deemed to be at arm’s length.
The First Chicago Method (named after the late Initially Chicago Bank — if you ask) deals with this problem by generating three valuations: a worst case scenario (tiny box), a normal case situation (standard box), a very best case situation (significant box).
The VC Technique is unquestionably a lot more quantitative than the Scorecard Valuation Strategy Inputs will vary across verticals and industries so I advocate experimenting with ‘s spreadsheets to attain what you’d think to be optimal outputs for you and your investor(s).
You know, I tell you I am each an investor and angel investor myself as effectively as an entrepreneur that does have considerable encounter … READ MORE ...