Business
Top Short Term Mutual Fund Investments for Beginners
We are never too young to start investing. Being smart and prudent about one’s finance help to instill a sense of responsibilities and stability, it is true that we can earn interest on money in saved up in banks, but the interest on that is capped at just about 2%. One of the investment alternatives for a beginner is mutual funds with higher interest amounts as opposed to just deposits.
What is a Mutual Fund?
A mutual fund is an instrument used to collect funds from investors to be invested in securities portfolio by an investment manager. Mutual funds are ideal for anyone who has limited time and information but would still rather invest in the financial market.
Asset Management Companies help to invest its customer’s funds into stocks, bonds, and securities. Fund managers who are familiar with the financial market provide investors with the knowledge about investing in these mutual funds.
Why Mutual Funds?
- Diversification to reduce risks is quite convenient to do when dealing with mutual funds.
- Since a professional fund manager manages the fund, it does not require the time of the investor.
- The gains that are acquired by investing in mutual funds is not subject to tax.
- The investors have the added benefits of liquidity- their equity can be redeemed at any time as long as it is in adherence to the regulations set by the market.
Short Term Mutual Fund Investments:
Short term mutual funds are those that offer a maturity for a minimum period of 15 days to 91 days. It is best suited for beginners who are looking to invest with low risk involved.
Short term mutual funds offer higher returns than those tendered against bank deposits. Depending on the assets in the fund portfolio, the returns could range from 8-9%
Novices and beginners should always enlist the help of professionals before they invest in mutual funds.
Returns from Mutual Funds:
Capital appreciation and Dividends are the two returns from mutual funds. Under the dividend and distribution plans, the returns are tax-free. There is no burden with respect to taxes when it comes to equity mutual funds.
Investments for Beginners:
1.HDFC Savings Fund This particular saving fund invests in floating rate securities uses money market instruments to maintain a low-risk high return portfolio. This is one of the Best HDFC Mutual Funds for a minimum investment of Rs 1000 and an expense ratio of 0.25%.
2.ICICI Prudential Short Term – Growth Option This short-term debt fund has a high expense ratio of 1.21% and a comparatively higher Net Asset Value as well, currently at Rs. 35.96. It offers stockholders’ investment opportunities with a minimum of Rs. 1000 and a similar amount to augment it.
3.Aditya Birla Sun Life Corporate Bond Fund – Discipline Advantage Plan The investment objective of the scheme is to generate optimal returns with high liquidity through active management of the portfolio by investing in money market instruments.Its Net Asset value is Rs. 65.979. The expense ratio is 0.33% and needs a minimum amount of Rs. 1000.
4.Axis Liquid Fund It is one of the most popular liquid fund options in the market currently. It has a low risk and a high degree of liquidity. With a minimum investment amount of Rs. 1000 and an expense ratio of 0.10%, it is a great investment option for beginners.An average return of 8.19% has been recorded ever since its launch.
5.Principal Cash Management Fund The principal cash management fund utilizes and invests in money market and debt instruments to provide investors with a high level of income and maintain liquidity.With a systematic withdrawal plan of Rs. 500, and an expense ratio of 0.14%, the fund has consistently outperformed the benchmark liquidity ratio.
Tips to Invest in Mutual Funds:
- Keep it Simple
Keep investments simple. Do not complicate investment strategies. A couple of low-cost index funds should suffice for beginners who are still learning to handle the ropes.
- Consider Expense Ratios
Mutual funds do not have a monthly bill that needs to be paid by the investors. They are low maintenance, and the fees are subtracted from the assets in the funds. Investing in low-cost mutual funds is the solution to it.
This, been said, takes money to run a mutual fund. Salaries need to be paid, there are portfolio management costs and other miscellaneous expenses. An investor should want to own funds with the lowest expense ratios. Short term mutual funds are recognized for this.
- Mutual Fund Research
Investors have a myriad of choices to pick from and are often left perplexed. Learning how to choose the best funds will reflect positively on the performance of your portfolio. Investing with a plan helps stockholders stay the course and avoid aberrations.
Performances of the funds can be compared to get an idea of which direction to head in. Crucial qualities of mutual funds like the manager tenure, expenses, and fund fees need to be deliberate.
Financial literacy is vital to understand the affiliation between liabilities, assets, income, and expenses. Work smart instead of working hard.
- Consistency is key
When it comes to investing in mutual funds, inconsistency should be steered clear of. Stocks and their performance in the markets over the past couple of years need to study and analyzed before any decisions regarding it can be made.
Avoid “performance chasing.” Never make decisions based on a stock’s most recent performance in the market. This can have a false allure and will result in deviation from the investment plan. Have attainable, time-specific and smart goals when it comes to investing in mutual funds.
- Introduce diversity in your portfolio
Especially for novices in the field of investments, diversification is a key strategy.
The different kinds of funds available for investing include large, mid and small cap funds, index funds, diversified equity funds, sectoral funds and commodity-related funds to name a few. Balanced funds, for instance, are preferred by investors to mitigate the effects of an equity-based portfolio.
Funds can be chosen based on the asset allocation they require. This helps to diversify your investments and reduce risks as each of the funds come with their own set of pros and cons. Factors like the volatility of the market, inflation and fluctuating interest rates can all have adverse effects on mutual funds.
Discipline yourself to build long-term wealth. Asset allocation in different funds also establishes whether your portfolio is aggressive, moderate or conservative.
- Impatience is a Poor Substitute for a Sound Plan
Fluctuating market conditions are not uncommon when it comes to dealing with the stock market. Stocks that produce long-term results will typically show alarming variability. A degree of level-headedness is a prerequisite while dealing with funds. Delay gratification to reap enhanced benefits from your long-term investments. Investing should be goal-driven.
- Be Aware of Risk Tolerance
When you invest in stocks, funds or bonds, you are leveraging your money. Risk tolerance is determined by the market volatility that you can handle. This should not put pressure on you, and high-risk investments should be avoided at all costs to maintain a consistent level of gains from the mutual funds.
- Oversee your portfolio diligently
Tracking results of the portfolio is critical to the overall performance of the said portfolio. As the price of the investment fluctuates, necessary rebalance needs to be introduced.
Mutual funds are preferred by investors for the flexibility in involvement that they allow. The fund manager keeps track of the mutual funds and regularly supervises the market. As a result of this, the investor tends to neglect to review the performance of the portfolio. This is a rookie mistake. It is critical to periodically assess the existing funds.
Pro investors leverage strengths, outsource weaknesses and are meticulous with their portfolios. Online tools can also aid in the process of portfolio tracking.
Risks of Investing in Mutual Funds:
“Mutual fund investments are subject to market risks. Please read the offer document carefully before investing.” This disclaimer is quite widespread and accompanies any advertisement or announcement involving mutual funds.
Mutual funds invest money in different stocks and bonds. Different funds have their own set of risks. When the stock prices go down, the investment also goes down. By diversifying the fund across different stocks, the risks are minimized.
Government regulations can affect the returns and restrict the mutual fund performance.
Due to active trading in markets, they tend to have ups and downs, illogically. Liquidity risk is always present when dealing with mutual funds. If everyone wants to sell their mutual funds at the same time and there aren’t enough buyers, it puts the investors and their portfolios in jeopardy.
Ben Graham, the founding father of value investing used to say “In the short run, the market is a voting machine but in the long run, it is a weighing machine.”
Mutual fund investments are the perfect prospects for beginners to start investing their money. With benefits like low risk and high return, it has proven to be an ideal investment option.
Business
5 Businesses that are Hot right now in Emerging Markets
Every business minded person is trying to invest in emerging markets now in hopes that profitable returns are gotten in the long run. While most European and American markets are grown and proven to be rewarding, they are fast becoming saturated hence the desire by many investors and even new entrepreneurs to enter emerging markets.
The businesses that would be covered on this list would be the ones that can be started with low capital because everyone knows that selling crude oil in anything country is profitable but how many people can really afford the capital and resources to start a crude oil business! The answer is very few people. This list is primarily for business minded people that would like to do business with low overhead then scale their business over a period of time. Without further ado, let’s explore our list.
1. Social Media Marketing
This business is one that you can literally start from your bedroom. There’s a lot of attention right now on social media platforms like Facebook, Instagram, and YouTube. All you have to do is a take a course on how to use these platforms to promote products for sale. The next thing is to hone your skills, do some work for free to build up your portfolio and get valuable testimonials you can then use to get your first client. From there, you can grow your business through referrals and more advertising provided you get good results from your marketing.
2. Gaming Platform
Believe it or not, having a gaming platform is fast becoming lucrative in emerging markets, especially the ones in Africa. On one part, the rise in these types of platforms could be due to the want of many African youths to get rich or cash out as they say by investing so little money. This business may be controversial to many, but platforms like this one amongst many others have steadily built their business to profitability.
3. E-Commerce
This one is rather expected. Over the years, silicon valley investors have invested massive amounts into the e-commerce scene in developing countries. Although, some of the e-commerce companies aren’t successful yet, but the investors are willing to bet on the economies of these countries blossoming over the next few years. This way, they can not just make a profit but also have bigger market shares because they decided to invest early. Now, to start this type of business, you need to have a unique e-commerce idea that you can bootstrap then convince big-time investors to help scale your business to help you become competitive in the market.
4. Graphic Design
Graphic design is a very good business you can get into with low capital. What you basically need to do is get good graphic design tools and learn the basics of graphic design. There are so many small-scale businesses being started every day in emerging markets that need the services of graphic designers to help create visual brand assets and marketing materials for them.
5. Crowd farming
From the name, you can deduce that this is a derivative of crowdfunding. Crowd farming has to do with a group of people pooling together resources to invest in farm produce on a large scale then splitting the profit based on individual contribution. This is the case with platforms like Agropartnerships and Thrive Agric just to mention a few of platforms that are taking advantage of the growing interest in Crowd farming.
Business
How to Turn Your Crazy Donuts Ideas into a Business
The donut industry is growing more and more rapidly every year. With big names such as Dunkin Donut, Krispy Kreme, Winchell’s, and Tim Horton being the ones dominating a marketplace worth $16 billion. Most notable is the sponsorship between Dunkin Donuts and one of football’s most iconic names, Liverpool FC. Because of reasons like this, we can see why the donut industry is on a path to more popularity, and we can see why someone would be interested in investing in a donut business.
But how do smaller donut businesses compete with industry giants who have endless resources and several thousand donut shops under their names? Stick around as we are going to give you a few tips on how to turn your crazy donut ideas, into a successful business.
1. Starting Location is Key
Opening your first donut shop is nothing like managing a whole franchise. But it’s too early to think about that. First, you need to come up with a good idea for your location. Do you plan on opening your first donut shop near the main street, where you can catch the eye of casual by-passers, or maybe a strip mall location would better suit you. A key strategy in selling donuts is to always have them on display on a large counter area where customers can see the goodness you’re selling.
Another popular option is food trucks or donut trucks. Selling your donuts from a food truck feels modern, but also classic, and that just might be the niche that works for you best.
2. Keep Working, When Not Working
Your donut shop will always have slow periods during the day. During these slow periods, you can brainstorm ideas on how to increase revenue. During the morning you can add a special price on coffee, or offer a free donut with every coffee purchased. You can also offer catering services for birthday parties, weddings, and corporate or non-corporate events where you can cater to them donuts or cakes, or donut cakes!
3. Figure Out a Solid Business Plan
Having a solid business plan is key for the survival of your business. Choosing to ignore this step will cost your business greatly. By having a business plan in place, you can turn your donut shop into a successful business. With a plan in motion, you can sell others your vision, whether that’s a loan officer or an investor… or maybe a friend who likes to help you out.
Your business plan should start with your executive summary, which is a brief description of what you’re trying to do. Follow that up with a finer description of your business idea that will detail all the areas where your donut shop will be a hit. Marketing is very important, so make sure to include how you’re planning on marketing your business, and how much money you’re planning to allocate in that field. One more thing that will greatly increase your chances of survival is identifying how you can solve some problems that are related to other donut shops or the donut industry in general. You have to have something unique about your donut shop, so brainstorm ideas on what will make you better than the rest.
Business
How To Boost Your YouTube Subscribers And Views Number Fast
As you might already know to be a professional YouTuber can be quite a lucrative hobby, and channels with millions as well as hundreds of thousands of YouTube followers earn more than enough to support their living style and families. The way you earn money on YouTube is through ad monetization as well as promoted and sponsored videos. Of course, in order to be able to live on YouTube, you need to have a large group of people following you that will then see the ads.
And though YouTube might seem like a fun thing to do it isn’t easy at all and you need to be pretty consistent and patient in order to be successful. Saying this, getting YouTube views and subscribers can be pretty hard at first, and you need to have a bit of lack and put in a lot of hard work in order for it to happen. Still, there are some tips on how to get a lot of views on YouTube and the main one is to post things that might be interesting to a wider audience, and try to make it viral.
Let’s take a look at certain tips on how to have a more popular YouTube channel!
Tips On Getting Youtube Views And Subscribers
1. Although you can find a lot of articles on how to get subscribers and views fast most of those are just a YouTube glitch and don’t actually give you persistent and real followers. Instead of trying to trick the system your best bet is to go ahead and start promoting your content. Do it through social media, ask your friends to share and why not visit multiple forums and post your work! Very soon after you will be getting much bigger traffic and enjoy the popularity!
2. Figure out a publishing schedule and stick to it. Saying this if you say news videos will be every Tuesday and Friday don’t miss out of any, and you will get a devoted and large group of followers that are eagerly waiting. This way you will show people that you are serious about what you do and that subscribing is a worth it option.
3. So, along with that, you should start delivering more at the beginning of your videos. This will attract more views as well as subscribers to your channel. Use the first 8 seconds to hook people to it and deliver the core of your video straight from the start.
4. Use Pinterest to your advantage. Asking someone to create a picture of your best YouTube videos, and investing in ads on Pinterest will bring you quite a few people and views in a matter of days.
5. People are interested in reading Amazon Reviews so use that to your advantage and add the name of your YouTube channel at the end of your review. And along with that try to expand your social media promotion and reachability to Facebook, Instagram, Twitter, etc.
6. Also, when it comes to how to get subscribers on YouTube fast, you should start using the power of a good title. By creating an attractive and searchable title chances are your video will be easier to find and thus the number of subscribers and views will constantly grow.
7. And last but not least translate some of your most popular videos. Do it by yourself or hire an agency. This way you will be opening the door to an international subscriber audience!
Summary
YouTube profession is the one of future, and if you enjoy recording things, then it might be just the right for you. Still, it is important to be consistent and innovative in order to succeed. Doing this you will be able to increase the number of views, and subscribers fast, and enjoy all the benefits of YouTube popularity!
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