The Top Rated Growth Funds

A long-term fund is a diversified portfolio of stocks whose aim is capital appreciation with very little or no dividends. Most of these growth funds are at a higher risk but a higher potential for capital appreciation. These funds are volatile than other fund in nature which are not really expected to pay dividends. If you wish to invest in growth funds, then you are required to develop a tolerance for risk and a holding period for a period of about five to ten years.

This fund aims to achieve capital appreciation and revenue growth and mentioned below are a few of them:

• DSP BlackRock Money Manager Fund

The primary objective of this Money Manager Fund is to generate returns from a portfolio that constitutes of money market securities. You can invest over a short period and there is low risk while investing. The asset size of a Money Manager Fund is about Rs. 1878.47 Crores while there has been a phenomenal growth in the past year.

• IDFC Super Saver Income Fund - Investment Plan B - Institutional Plan (G)

This fund seeks to generate stable returns from a portfolio that invests in good quality fixed income and money market securities. The asset size is about Rs. 10.5 Crores while the minimum investment is about Rs. 5000. The average return for the past year is about 10.8 percent.

• ICICI Prudential Income Plan - Direct Plan (G)

This particular fund is to generate income in debt and money market instruments in order to maximize income by balancing the yield, liquidity and safety of the fund. The asset size is about Rs. 1709.84 Crore while the minimum investment remains Rs. 5000.

The fund returns over the past year is about 15.7 percent.

• ICICI Prudential Long Term Plan - Premium Plan (G)

Its asset size is Rs. 0.80 crore while the minimum investment is about Rs. 5,00,000. The fund returns for the past year is a growth of about 15.7 percent.

Things to Keep In Mind Before You Apply For SME Loans

If you wish to set up a small business or expand your existing business, then a Small and Medium Enterprise (SME) loan is one of the most preferred options in order to fuel your business aspirations. But before applying for a small business loan, one should be well-versed with the documentation work so as to sail through the entire procedure. Mentioned below are few tips that you can consider while preparing for your loan application.

• Research is the key to success

This is one of the most important steps that you should undertake that will help you pick the right small business loan. If you already have good relations with your bank, then rest assured because this can be one of the major reasons for receiving an approval for a loan. You research should include reading online reviews of companies and organisations that are touted as potential leaders. The most ideal situation would be to select a bank that has a great network and presence. This also requires one to constantly keep looking out for bank websites and read their terms and conditions for further insights.

• Reviewing

If you look through potential websites, you should look out for terms of repayment, tax benefits, loan tenure and other conditions before making the final choice.

• Your documents should be up to date

This is one of the major factors that banks take into consideration. You have to create a business plan that is internally approved. Also, you should make a note of the document requirement after which you should immediately start putting them together. Your income documents, PAN card details and bank statements are the necessary documents along with the following:

• Passport copy
• Loan application form
• Address proof
• Passport sized photographs
• Track record of repayment
• Professional qualification
• Bank statement of six months
• Financial record of two years (audited)
• Copies of partnership deed
• Proforma invoice of the equipment

• The Application

Make sure your application letter is free of errors along with your documents that will ensure brighter chances of an approval.

• Prepare yourself for the interview

This preparation is essential for you to present your business plan and ideas with confidence. You should provide clarity to the interviewer about how you plan to utilize the money in business. All relevant information should be provided to the officer along with a complete list of documents and material that will support your business requirement.

So increase your chances of receiving a small business loan by preparing in advance and following these tips.

Benefits of Paying Off your Car Loan Early

It is a good idea to pay-off your debt on car loan beforehand, so that it does not pile on, along with future expenditures. Prepayment of your car loan brings you manifold benefits.

Some of the benefits of availing car loan pre-payment option include:

Escape paying the rate of interest of future EMI's

A large sum of your monthly income, which will be paid as EMIs towards the car loan, can be saved if you prepay the loan. This free money can be invested in more lucrative investment arenas that are available in the market. It also reduces the burden of the total interest to be paid back on the loan otherwise. Once you are rid of the debt of the loan, the additional amount you are required to pay as interest amount on the loan will cease to prevail.

Prepayment adds to your credit score

Paying off your loans helps you to clean your portfolio of debts and increases your credit score. Timely or pre-payment of loans adds to your credibility and reflects your ability to deal with liabilities. Your credit score can help you to secure another loan in the future, if the need arises. A positive credit score boosts your reputation and signals financial stability.

Save the car’s insurance coverage amount

Lenders require you to have a certain level of insurance cover on the car that has a lien on it. You can save a good amount of money on your car insurance cover by prepaying the loan, especially if the car is older or in poor condition. Once you pay off the car loan, you have the flexibility and liberty to change your car insurance coverage according to your needs and financial convenience.

What is FinaMetrica Risk Profiling System?

This is a simple way to understand and gain an astute understanding of your client's financial risk tolerance. It is an important part of the process which involves an increase in the knowledge about your client and is used by financial advisers all over the globe. It begun in the year 1998 and has been prominently used by countries such as Australia, the UK and the US.

Developed in Australia over a term of four years, beginning in the mid-1990s, it came into existence with the assistance of the University of New South Wales offering reliability and accuracy in assessing risk tolerance. Initially, this was adapted by smaller advisory groups and later on grew its base among-st larger organisations such as insurance companies and banks. This test has been translated into various other languages and has become a significant part of the lives of leading academicians and researchers. Also, a number of academic studies have also made use of the FinaMetrica test proving its importance in today's world.

The FinaMetrica Risk Profiling System constitutes of three parts:

• A psychometric test: This is done for the purpose of personal finance risk tolerance. This test is a combination of statistics and the study of psychology that helps determine personality traits and characteristics. It helps in assessing one's risk tolerance and maintains international standards of evaluation. The main focus of attention is upon reliability and validity.
• Results: The result of the test is important for the financial planning process.
• Study material: This is created in order to help and explain investors about the investment risks they are undertaking and the returns. This will also provide them with a fair idea of how their future performance will be.

Therefore, this method is not only useful to measure the risk tolerance, but also helps understand the clients better. A  FinaMetrica Risk Profiling System is the perfect solution to determine returns expectations and arriving at a consensus (for financial issues related to equities, debt and cash).

Parameters to Consider Before Investing in Natural Resources and New Energy Fund

A Natural Resource and New Energy Fund is an investment vehicle owned by the government body where the sole source of revenue is derived from minerals, gas or oil. The main objective of a natural resource fund is saving for future generations, sterilization of capital inflows and covering budget deficits. There is also a provision of investment in foreign assets related to finance.

These funds also assist the government in the management of mineral, oil and gas revenues. So before investing in a Natural Resources and New Energy Fund, you should consider certain parameters that will help and assist you in the long run.

• Performance and ranking

You should always keep in mind that you need to select a mutual fund that not only provides you with the best returns but also suits your risk profile. Investors are generally lured by the recent performance of a mutual fund but one should consider various other parameters before finalizing a fund portfolio.

In order to figure out a Natural Resource fund and New Energy Fund fund's ranking, you are required to check the quarterly ranking of the fund and its peers. Select a scheme that has remained uppermost in terms of the ranking (in quarterly).

• Return ratios

Measuring the risk and return ratio should be your primary focus along with the knowledge of how much a fund manager has been able to generate out of a portfolio.

• Expense ratio

A high expense ratio affects the fund’s returns; therefore, this is one of the most important parameters in order to select the perfect Natural Resource Fund and New Energy Fund Scheme.

• The experience and tenure of the fund manager

A fund manager is the one who takes the ultimate decisions; therefore, his experience plays a very important role in the fund’s performance. His/her past track record determines whether you should avail his/her services or not. Also, keep a check over his quarterly performance.

Tips to Zero-down on Best Fund of Fund Scheme

Investments are crucial for everyone and you may always look out for different avenues for savings. Likewise, the Indian financial market offers numerous avenues to choose from. However, the return rate offered by each matters the most.

In an attempt to mitigate the investment risk and maximize returns, investors prefer to choose mutual funds. These schemes are professionally managed by a group of fund managers who are market experts in tapping lucrative opportunities. The safest of all these schemes are fund of fund schemes.

Fund of Fund schemes offers optimum returns while minimizing the investment risk. Here are the tips to choose some of the best Fund of Fund schemes:

• Know the Investment Objective

Before you plan to invest in any of the schemes, it is recommended to know the investment objective. Without a proper objective, you will not be able to pick the right scheme. Once you have identified the objective, you can move ahead with choosing the right amount.

• Compare the fund houses

Fund houses play a key role in determining the performance of the scheme. Before you move ahead to pick up the scheme on the basis of the current performance, it is recommended to check the credibility of the fund house.

Note: Established fund houses offer consistent returns

• Assess the fund performance

This is the crucial factor considered for choosing the right mutual fund scheme. Without assessing the performance of the schemes, you will never be able to choose the right investment avenue. Wisely compare the schemes for NAV performance over 1 year, 6 months, 3 months, or 5 years in case you are looking for long term investment. For instance, schemes such DSP BlackRock Global Allocation Fund has performed well since the last few years.

• Identify the Loads

Loads are the service charges you pay to the fund house while buying or redeeming units of mutual funds. Generally, they are around 0.5% to 1%. However, certain schemes charge more. Keep an eye on these charges.

A Step by Step Guide to Register for NCFM

For the sole objective to test practical knowledge and other skill sets required to operate the financial market, NCFM came into existence. People possessing the requisite skills and knowledge about finance can deliver quality inter-mediation following a code of conduct for the particular field. Therefore, the National Stock Exchange introduced a system that conducts tests and certifies people to build a career in the financial market, known as NSE's Certification in Financial Market (NCFM).

There are a few steps you are required to follow in order to register and prepare for the NCFM examination. They are mentioned below:

• Registration

You can register online by visiting the official NCFM website and clicking the 'Online Registration' tab in order to enroll. Once you are registered, you will receive a registration number and a User ID along with a password. Therefore, you can make payments and additional edits related to your current residential address, etc. You are required to remember your registration ID because you will have to re-use the same for all forms and modules of enrollments.

• Upload Photograph

All candidates can upload photographs online by accessing the link provided to them by NCFM website. Certain things need to be remembered such as the photo size and a solution to reduce the photo size. A passport size photograph is required for it to be printed on your certificate. Therefore, you are required to look into the size and make additional changes if your photo size is too small or too large.

• Payment

All candidates can make easy payments through the same login ID and the fee once paid is non-refundable. Also, you can make payments by making use of your credit/debit card that will be reflected immediately on the NCFM website. Net banking is equally effective.

• Enrollment

Candidates are required to enroll by visiting the website and clicking on the following link: 'Enrollment / Book your seat'. You will receive a notification through an SMS or your email ID.

You are required to take the test at the designated NSE.IT centre. Make sure you are present at the location at least 30 minutes prior to the time allotted to you along with all your essential documents. Certifications are provided to all successful candidates while the failed candidates receive their score cards.