Admin, Author at Invikraft Finserve

Everything you need to know about Housing Loans

Post author By Admin
Post date March 6, 2023

Owning a home is a dream for many people, and for most, a housing loan is a key to making that dream a reality. A housing loan, also known as a mortgage loan, is a type of loan that is used to purchase a home or property. In this blog, we will explore the basics of housing loans, their types, and some important factors to consider when taking out a housing loan.

Types of Housing Loans

There are several types of housing loans available, and the right one for you will depend on your financial situation and preferences. Here are some of the most common types of housing loans:

Fixed-Rate Loans: A fixed-rate loan has a fixed interest rate and monthly payment that stays the same throughout the loan’s term, typically 15 or 30 years.

Adjustable-Rate Loans: An adjustable-rate loan has an interest rate that can fluctuate over the loan’s term, typically starting with a lower rate than a fixed-rate loan. This type of loan is riskier but may be a good option if you plan to sell or refinance the property before the interest rate increases.

FHA Loans: An FHA loan is a type of government-backed loan that is designed to help people with lower credit scores or limited funds to qualify for a home loan.

VA Loans: A VA loan is a type of loan that is available to eligible military service members and veterans, and it offers lower interest rates and more flexible qualification requirements than other types of loans.

Factors to Consider When Taking Out a Housing Loan

When taking out a housing loan, there are several important factors to consider to ensure that you are getting the best loan for your needs. Here are some key things to keep in mind:

Interest Rates: Interest rates can vary significantly between lenders and loan types, so it’s important to shop around to find the best rate.

Down Payment: The amount of money you put down on a home can impact your interest rate and monthly payment, so consider saving as much as you can for a down payment.

Loan Term: The length of your loan term can impact your interest rate and monthly payment, so consider the pros and cons of shorter and longer loan terms.

Fees and Closing Costs: Lenders may charge fees and closing costs that can add up to thousands of dollars, so be sure to factor these into your overall loan costs.

Conclusion

A housing loan can be a valuable tool for achieving your dream of homeownership, but it’s important to do your research and consider all of your options before taking out a loan. By understanding the different types of housing loans and key factors to consider, you can make an informed decision and find the loan that is right for you.

SIP- One Of The Best Investments

Post author By Admin
Post date February 22, 2023

SIP stands for Systematic Investment Plan. It is a mode of investing in mutual funds, where an investor can invest a fixed amount of money at regular intervals (usually monthly) instead of making a lump-sum investment. The fixed amount is deducted automatically from the investor’s bank account and invested in the mutual fund scheme of their choice. SIPs are a convenient and disciplined way of investing as they help investors to invest regularly and build wealth over the long term. They also provide the benefit of rupee cost averaging and reduce the impact of market volatility on the investor’s investment.

There are several reasons why SIP (Systematic Investment Plan) investment is considered one of the best ways to invest:

Disciplined approach: SIPs encourage a disciplined approach towards investing, where investors invest a fixed amount at regular intervals, typically monthly.
Cost averaging: Investing through SIP allows investors to average out the cost of their investment, which means they buy more units when the market is low and fewer units when the market is high.
Rupee cost averaging: SIPs allow investors to take advantage of rupee cost averaging, which means that the same amount of money is invested at different market levels, thus reducing the impact of market volatility.
Flexibility: SIPs offer investors the flexibility to increase, decrease or even stop their investments at any time.
Long-term wealth creation: Since SIPs encourage a disciplined approach towards investing, they are an effective tool for long-term wealth creation.
Diversification: SIPs provide investors with the opportunity to diversify their investments across different asset classes and sectors, thus reducing their risk exposure.

Overall, SIPs are a simple and effective way for investors to create wealth over the long term, with relatively low risk and high flexibility.

Financial Planning and its Types

Post author By Admin
Post date February 16, 2023

Financial Planning and its Types

Financial Planning is detailed planning about how you manage your finances to meet specific goals in life. A good financial plan is a saviour in life as it helps you control your expenses and makes you mindful of the money you earn. It looks at your objectives and offers advice on how to prioritise, set aside money, and make investments to help you reach your goals within the allotted time.

The practice of managing your money to attain personal financial fulfilment can also be referred to as financial planning. By using this planning technique, you may keep your financial position under control.

Every family and individual has a personal financial position, financial goals, and activities so every needs and requirements differ. At Invikraft, our financial experts adhere to your goals and make customised financial plans to meet them.

Importance of Financial Planning

Financial Planning gives you direction in life. With this, you can set short-term and long-term goals that help you in taking potential decisions.

Practically, there are three types of financial planning:

Short-term financial Plans

As the name suggests, short-term financial plans outline financial goals and investments that are made for the tenure of a one year period. These plans can be corrected if required and are less uncertain compared to long-term financial plans. You must have at least funded four times your monthly wage for the corpus. Emergency funds are useful for covering unexpected medical expenses and short-term income losses.

Medium-term financial Plans

Medium-term financial plans are strategic plans that typically cover a period of 2 to 5 years, and are developed by businesses or organisations to guide their financial decision-making and ensure financial stability. These plans may include Financial Goals, Revenue Projections, Expense Management, Capital Expenditures, Risk Management, Financial Metrics, etc. Overall, it should be a flexible, forward-looking document that guides financial decision-making and helps ensure financial stability and growth over the medium term.

Long-term financial Plans

Long-term financial plans typically involve setting specific financial goals and developing a strategy to achieve them over a period of several years. This may include creating a budget, setting up an emergency fund, investing for retirement, and paying down debt. It’s important to regularly review and adjust the plan as circumstances change, and to seek professional advice if needed.

Conclusion
Having a financial plan is essential for achieving financial security and stability. A well-designed financial plan can help individuals and businesses meet their financial goals and achieve long-term financial success.

5 Reasons why Life Insurance is vital

Post author By Admin
Post date February 10, 2023

Life Insurance Policy has become one of the most obvious things in life. It simply helps you replace your lost income and should be made in every circumstance no matter if you are married or single, have kids or not, or simply if there’s anyone who depends on you financially. Death never comes ringing. Nothing could make us understand the uncertainty of life more than COVID-19 itself, therefore in a world where no one talks without money, the only safe thing to be made is life insurance.

Insurance is a written cheque that a person is supposed to sign to fight any emergencies that may happen in the future. The written cheque amount will be paid to the individual’s family by the insurance companies.”

If you have life insurance, your designated beneficiary will receive money, or what is known as a death benefit, upon your passing. By giving your loved ones financial support when necessary, purchasing life insurance might help you feel less stressed.

To stress more on the topic more, here are the five important reasons why life insurance is vital:

It safeguards your family financially

The primary goal of life insurance is to assist in safeguarding the financial future of your family. Even if you had money, it is unlikely that it would last long enough to support your family should something unexpectedly happen to you.

Its reliefs your loved ones from the stress of paying debts

It is very sad that even after you die, your debts don’t. To cover the debts left behind, your loved ones may have to use money from your estate or sell off other assets to cover them. This could leave less money to pay for expenses.

Life insurance pays all your debts including credit cards, business debt, personal or student loans, and even mortgage loans.

It is a fantastic replacement for lost income

Some expenditures are unavoidable. No matter if you have a 9-5 job, an established business, or anything else, the expense of food, home, and clothes must be made at any cost. Your family may require income replacement from the death benefit from your life insurance policy to cope with these costs.

It helps to pay for Future Education Expenses

Your family’s future childcare and educational costs, particularly college tuition, may be covered by life insurance. The death benefit from a life insurance policy can provide additional money to help cover your children’s education if you were to die.

The whole idea of Life Insurance is to protect your family’s future with or without you

When planning long-term financial goals, knowing the value of life insurance and how much protection you require will help. Purchasing a life insurance policy will assist your family to maintain their financial security in the case of your passing and can ease the stress and strain of an already trying situation.

Conclusion

Purchasing life insurance might be a crucial component of this strategy, depending on your financial objectives and requirements. Consider contacting a financial representative for more details or to purchase life insurance.

Benefits of investing early in life.

Post author By Admin
Post date February 6, 2023

Investment is the key to a happy financial life. Most of us start investing when we tend to enter a life that is full of responsibilities but have you ever wondered about the benefits of investing early?

Here are 4 reasons why you should start your investments today.

Number 1: It helps you achieve your goal smartly with a sigh of relief

We all have long-term goals in life. For example, 5 years down the line, one might want to get married, buy a car and a house, and for all of that if you need at least 50 lacs, then you can plan to invest in equity mutual funds and calculate the amount to be paid each month in a smaller number than paying a very high amount in the later years to fulfill the same goal.

All these plans give you a sigh of relief and confidence about a strong financial future.

Number 2: This act improves your spending habit

Investing helps you in building a habit of saving money. When you have a fixed income or salary, it is always advisable to plan your budget and spend and save it accordingly. The best way to improve your spending habits is by keeping a track of your monthly expenditure on food, utilities, rent, leisurely activities, etc., and with years of practice, this simple task becomes a habit.

Number 3: You have a higher risk-taking ability

You can take more risks when you are young than when you are older. You do not have to consider riskier investments as much at this age because you have fewer financial commitments. And even if something went wrong with your investments, you would still have plenty of time to fix it and go on.

Number 4: You enjoy the benefit of compounding

The effect of compounding increases as you hold an investment for a longer period the sooner you begin investing.

Let us use two examples to better grasp this. Let us say your retirement savings goal is to save Rs. 4 crores. In the first scenario, you can begin investing in an equity mutual fund when you are 25 years old. And till the age of 60, you would need to save Rs 6,000 per month for this. Additionally, you would invest a total of Rs. 25.2, 000 over the following 35 years.

In the second scenario, you put off achieving the objective for 15 years and begin saving for retirement at the age of 40. The target sum of Rs. 4 crore remains the same. Your monthly investments will now be Rs 40,000, and your total investment amount will be Rs 96 lakh as a result of the delay.

Conclusion

The moral is simple. Do not delay it anymore. Start your investments today.

Why are investments important ?

Post author By Admin
Post date January 31, 2023

Investment- this is one topic everyone talks about, but a lot of us misguide ourselves with saving rather than really investing.

Saving is great but the investment is a completely different term because it provides an additional amount of capital. Why are investments important?

Let us talk here!

The simple answer is inflation. Inflation increases the price of goods and services effectively while reducing the value of our money resulting in the number of goods that we buy now in an “X” amount that can’t be bought in the coming years.

This indicates that the time and effort you spend saving may not be worth it in the long run. In order to beat inflation and ensure your future, we will teach you how to invest money in wise investing strategies. Let us make wise investment choices so that your money will work for you.

How should you start investing?

Have you ever wondered how the rich become richer? The answer is investing the money in trustworthy profitable sources and making a profit out of it, reinvesting it, and then continuing the cycle so that one can enjoy a stress-free retirement.

If you are an earning individual, it should begin with saving your amount. A certain percentage should be fixed to be kept as your savings and emergency fund before you start spending all of it.

Then, to start accumulating wealth put those resources into investing strategies that match your objectives and risk tolerance. How does one begin to accumulate wealth? Savings alone are insufficient because you also need to take inflation into consideration. Your funds have a clear direction and purpose due to investing, making your retirement goals seem more attainable.

At Invikraft, our experts work on making your money work for you through customized and goal-oriented financial plans.

Few things to consider to become a successful investor?

After deducting all of your expenses, saving is what is left over; investing is the act of increasing savings.
By making wise investments, it is possible to beat inflation.
Controlling your spending will help you save money, which you can then invest.

Conclusion

Whoever said that drops of water may fill the ocean said it true and investing is the perfect example of the same. If you are confused about starting with one, get in touch with us.

Why is financial planning crucial for 2023?

Post author By Admin
Post date January 27, 2023

Whoever claimed that you begin spending as soon as you learn of the baby’s birth was correct! From education and home improvement to travel, weddings, and solid emergency funds, everything requires prospective planning before action and so the idea of financial planning is born.

What is Financial Planning?

Financial Planning is a step-by-step approach toward your life goals with aspects of bigger and vital expenditures in the future.

Why should you consider Financial Planning?

The simple answer is inflation and the unpredictability of life. With growth comes expensive goals and a strong financial plan is essential to cater to your needs and luxuries of life. The cost of education and travelling is increasing day by day whereas various businesses and jobs are shutting down due to a low market. With all this happening around, it’s important to get a financial plan ready.

What are the benefits of good financial planning?

Early and prudent financial preparation will spare you from the weight of unforeseen costs! A solid financial plan helps you develop a corpus, invest your resources in the right products, and get ready for whatever financial obstacles life may present.

How to make a good financial plan?

Make a list of your needs and goals.
Define your risk tolerance to determine suitable investment plans.
Start investing as early as you can. The more time you give your investments, the better your chances of achieving your financial goals.
Do the right asset allocation to channel your savings into suitable investment options.
Ensure appropriate savings to support or fund your financial goals.
Seek professional guidance to avoid wrong choices.
Execution and monitoring through timely reviews.

Things to keep in mind while planning finance

Get insurance made

Your financial plan should include life and health insurance, particularly if you have to provide for your family on a monthly basis. This is a crucial component of your financial planning and should be given top priority to prevent your funds from being depleted by unanticipated situations.

Pay off your debt

You should always create a plan that pays off your debts as soon as possible to relieve yourself from the burden and make wise investments in the future.

Save up for emergencies

After the Covid era, we all have realized that time is very unpredictable, anything may take place at anytime. Therefore, keeping aside an amount every month for emergencies might be hard but it can be very beneficial in times of emergencies.

Retirement Planning

With careful retirement planning, you can choose to invest small sums across a variety of long-term investment vehicles, which will enable you to amass a sizable corpus over a 10- to 15-year period. You may assure a financially stable future by creating a solid retirement plan.

Maintaining a healthy credit score

A strong credit score demonstrates responsible credit conduct and gives the lender faith in your ability to repay the loan.

Conclusion

Make goals that will benefit you in the long term and when talking about long-term goals, nothing can beat the power of financial planning. If you have not started yet, you can do it now with our professionals.

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