Know About Tax Saving Options This Year (FY 2017 - 18)

Taxes form a good part of your total expenses, and anyway who likes to pay lot of taxes. But the truth is, our government allows tax saving on certain investments to bring about the saving habit. Especially for a longer horizon of three to five years or more.
Thus, there are taxsaving investments which you will be using to save tax this financial year. Similarly, some of these investments also remain tax exempt even at maturity. Thus, all investments are divided in the following three categories:
  • ETT: Investment reduces tax but any accrued interest is taxed in future years including the gain at maturity.
  • EET: These will offer tax reduction in the year you invest, any interest accrued in future is exempt but the maturity value is taxed.
  • EEE: These are completely exempt investments, that is, your invested amount is exempt, interest accrued is exempt and maturity value is also exempt.

Since EEE investments are most tax efficient let’s cover these first.

Can a Personal Loan be Used to Pay Off Student Loan Debt?

One can argue that student loans are the worst, and they could be right. Unlike home loans or auto loans which are usually availed by well-settled and financially strong individuals, student loans are to be repaid by young professionals who have just started their carrier. Needless to say, they are often live on a shoe-string budget and have to put a cap on all kinds of expenses to pay off the student loan debt. So, the question is- can a personal loan be used for paying it off?

It makes sense, right? Since a personal loan can be used for any “personal” reason, why not repaying student loan debt? In most cases, you are right in believing the same. However, it’s important look at the idea from all perspectives.

The Bird’s-Eye View
The most important reason why you would want to take a personal loan to pay off student loan debt is to enjoy a better interest rate. If that’s not the case, you don’t have much to earn from the deal.

You want to reduce your EMIs and hence the financial pressure. Replacing a high-interest loan with a low-interest one is one way to go. However, if you are not able to get a personal loan with a lower interest rate then there is no point in applying for it even. You also need to see if the interest rate difference is enough, to say the least.

Yes Bank: The Growth Machine

Having acquired the banking license by RBI in 2004, Yes bank exited FY-17 with over 1000 branches and a balance sheet size of over 2 trillion rupees. Its net worth has gone up over 2650% in past decade from INR 800 crores in 2007 to 22000 crores in FY-17. The bank has created tremendous amount of wealth for its investors since its listing, as the stock has appreciated more than 3500% since its IPO price. Yes Bank issued its maiden shares to public in 2005 at 45 rupees.

So what’s the secret behind such success? Probably, right branding and technology focus has played a key role in the kind of growth the bank has achieved. From the beginning itself, the bank has invested heavily in brand building. In 2013, it signed a 5-year sponsorship deal with IPL and the association seems to have paid off handsomely as it has given significant visibility to the brand and acceptance among Indian people. For IPL 2017, the bank was an associate sponsor. 

The bank is investing heavily in technology backbone and demand of the newer generation customers who prefer net banking over branch banking. Yes bank has specifically focused on making its web and app based customer interfaces simple and powerful. The bank also launched the star banking facility recently where the customer can reach the bank by just dialing **2265 (Star Bank) which is a generic number and very easy to remember. This kind of dialing facility is already popular in western countries and is expected to catch up in India as well. 

Yes bank has increased its focus on retail banking recently and has exited FY 2017 with over 1000 branches & 1785 ATMs and a target to achieve 2500 branches by 2020. With larger footprint the bank is poised to get increasingly higher share of low cost deposits and also diversified credit portfolio of home loans, personal loan, credit cards and other retail credits which are relatively far safer than lumpy corporate loans. Considering the capital position, technology backing and ambitious plans, the bank has significant room to grow further and create wealth for all stakeholders in coming years.

Be the climbing Wolf

Get charged up with this very energetic video. I found it really motivational.



Portfolio Update - April 2017

After 4 months of sitting on 100% cash, good opportunities seems to be emerging in some stocks. Sold all the liquid investments and bought few stocks that seems attractive for medium term investments. Please check the update portfolio for further details:



How to use UPI for a hassle free money transfer instantly

UPI Payment System
Unified Payment Interface or UPI is a joint initiative by National Payments Corporation of India’s (NPCI), Reserve Bank of India (RBI) and Indian Banks Association (IBA) to enable secure and extremely easy way to transfer money between bank accounts. It’s a payment mechanism which allows instant money transfer without the bank details. Instead of bank account number and IFSC code, a virtual payment address (VPA) is used here. To use this payment Mechanism one needs to download the bank specific app, such as Axis Pay, on their mobile phone and create a VPA which will be linked to their bank accounts.

A virtual payment address is an identifier that can be uniquely mapped to an individual account. It can be thought of like an email ID for your money that your bank uses to transfer money and make payments.

Important candlestick patterns at a glance

Japanese Candlestick charting has almost become a defacto standard for studying price history of stocks / bonds / gold etc as each candle packs in a lot of useful information regarding the action on a particular day. However a series of candles together gives clearer picture in terms of the direction of the asset class. Following are some of the most important patterns that expert traders use to position themselves. 


Do you like my blog?

If you enjoy reading InvestorZclub blog, please help spread the word by sharing this site with your friends.