Home Loan Interest Rates Options Offered by Various Banks

It's obvious that when you decide to take a loan for, say, education, going abroad, or else if you wish to buy a home, you research about the best options available in the market, since repaying the loan is a major ordeal. So you need to weigh in the advantages and disadvantages of the kind of loan you select. There are two kinds of loans, i.e., Fixed Interest Rate loans and Floating Interest Rate loans.

Fixed Home Loan Interest Rates

This one is limited as banks do not allow or encourage fixed interest home loans; it is limited to only the first two to three years. A fixed home loan interest rates entitles you to a fixed rate of interest at monthly installments throughout the tenure of the loan. Thus, the interest rate remains the same irrespective of the market changes.

The major benefit of this loan is the fact that even if the market rate becomes higher, your interest rate remains the same. This in turn brings about a certain predictability to the market scenario and also a certain sense of relief to those who have to repay the loan.

The major drawback to this form of loan system is that the interest rate is a bit higher than the floating form of home loan, and even if the market prices decrease, our interest rate remains the same. So you cannot avail the benefit of the decrease in market rate, i.e., a lower interest rate. Thus you should plan carefully and check for the market rates. If you think the market rates are going to go higher, then it is beneficial to select a fixed loan than a floating loan.

Floating home Loan Interest Rates

In this case, the interest rates are not really fixed but fluctuate at certain intervals, i.e., as and when the market prices go higher or are low.

The biggest benefit of making use of a Floating home Loan is the fact they are less expensive as compared to a fixed loan. The percentage difference is about 1 to 2 percent but it does make a difference. Also the fact that you can enjoy the benefits of paying a lower interest rate whenever the market rates tend to fall.

The major drawback of this sort of a loan is the unevenness of payment every month since there is no fixed rate at which the repayment needs to be done.

Top Four Small and Mid Cap Funds to Choose This December

Savings play an indispensable role in your life and as a result many of you may look forward for different avenues of investments. Among the commonly purchased investment products are bank term deposits. However these products offer conservative returns. So, several investors are always looking forward for lucrative opportunities of investments.

Small and mid-term funds offer the privilege of lucrative investments while hedging investment risk. With the changing economic conditions in India, such schemes are becoming popular among masses. After comparing several schemes we have managed to shortlist the top four small and mid-cap funds.

DSP BlackRock MicroCap Fund

With a consistent double-digit return rate for the last five years, DSP BlackRock has managed to captivate the attention of investors since a long time. Though the Assets under Management for this scheme are less than 2,000 crores, still it offer better redemption as well as growth to investors. Courtesy to the capabilities of Vinit Sambre and Jay Kothari, this scheme has managed to perform so well.

HDFC MidCap Opportunities Fund

This fund has completed a positive track record of seven long years and holds top growth and value stocks in its portfolio.  The fund manager focusses on the stocks that have the ability to multiply their earnings by 15 to 20 percent. With assets under management of almost 2802.96 crore, this fund has become popular among masses not only for better gains, but also for versatile redemption facility.

ICICI Prudential Discovery

This began its functions in the year 2004 and has had a remarkable run in the market. This company has a good cash flow and low leverage while the fund manager tries to strategize and capture the bullish economic cycle of the underlying companies. With more than Rs. 2830 crores of assets under management, this fund has been offering consistent positive results for the last five years.

Franklin India Prima Fund

It has a corpus of Rs 867. 36 crore and has been generating a positive cash flow across all business cycles.  Managed by popular fund manager R Janakiraman since 2008, this fund has been offering positive returns with almost consistent growth rate of 15%. With 61 stocks under the roof, this fund is one of the most popular funds among investors.