Category: Finance

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Finance

3 Top Investment Schemes in India to put your money at!

investment

While growing up, for the longest time, most of us believed that the money plant in our house will grow cash for us in the future. Though, it would have been great had that belief was true, the reality remains the same- we all want to see our money grow!

So, if you are looking to grow your wealth, investing your money in different schemes can be a brilliant option provided you make the right investment decision, at the right time.

India is a land of savers and not many investors. According to a report by New Indian Express, ‘only 2% of the Indian population participates in equity markets directly or through mutual funds due to their risk-averse nature.

Most of the Indians are always on the look-out for a high-return, low-risk combination in an investment plan. Unfortunately, it does not exist, at least not in the real world.

So does that mean you should not invest? Certainly not! Here are 3 top investment plans to look at while reaching for your financial goals:

  1. Debt Mutual Funds

Do you want steady returns? The Debt Mutual Fund schemes are for you! These schemes are less volatile and involve less risk as compared to equity funds.

Debt mutual fund primarily invests in fixed-interest generating securities like government securities, corporate bonds, commercial paper, treasury bills, and other money market instruments.

  1. National Pension System (NPS)

Managed by the Pension Fund Regulatory & Development Authority (PFRDA), NPS is a long-term plan focused on retirement. This investment scheme is a mix of equity, corporate bonds, fixed deposits, government funds, and liquid funds among others. The minimum annual contribution has been reduced to INR 1,000 for an NPS Tier-1 account to remain active.

  1. Public Provident Fund (PPF)

The Public Provident Fund is one of the most popular investment schemes that every Indian turns to. The scheme has a long tenure of 15-years. Thus, it offers huge tax-free compound interest. One of the major reasons behind its popularity is that it is a safe investment as it is backed by a sovereign guarantee.

Some of the above-mentioned schemes are fixed income while others are linked with the financial market. Where fixed-income schemes help to preserve your savings, market-linked investments offer high returns and high risks too.

However, for a long-term financial goal, it is important to make use of both worlds. Hence, make informed decisions by keeping time duration, taxation, and risk in mind. You can understand the in-depth stock market knowledge with our problem-solving courses. To know more, click here: https://www.badabusiness.com/psc?ref_code=ArticlesLeads

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Finance

SMBs in India To Benefit As Google Announces Rs 109 Crore for Small and Micro Enterprises in the Country

Google (Photo Credits: Unsplash)

New Delhi, February 18: With an aim to support small and micro enterprises (SMBs) in India amid the COVID-19 pandemic, tech giant Google on Wednesday said it would give $15 million to Indian SMBs. The amount that has been announced by Google for businesses in India is nearly Rs 109 crore. Reports inform that the investment is part of the $75 million commitment from Google to help small businesses outside of the US. “In India, we will invest $15 million to support small and micro enterprises across the country and are in discussions with local partners,” the company said in a statement.

Google said it is working with non-government partners who have a long track record of providing resources to businesses that are generally overlooked by traditional lenders. When the coronavirus pandemic hit in 2020, Google had announced a $200 million investment fund as part of its more than $800 million commitment to support small businesses. In a statement, Google said it has had a special relationship with small businesses around the world – helping them scale, innovate and reach new customers. “With today’s announcement, we’re proud to help them meet a new challenge — accessing capital needed to recover and build resiliency for the future,” the tech giant said.

In July 2020, Sundar Pichai, the CEO of Google, had announced a ‘Google for India’ digitisation fund through which, the company will invest Rs 75,000 crore or approximately $10 billion over the next five to seven years to help India go digital. During the ‘Google for India’ virtual conference, Pichai had said, “We will do this through a mix of equity investment, partnerships, and an operational infrastructure ecosystem in India. This is a reflection of our confidence in the future of India and its digital economy”.

 

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Finance

5 Schemes to Financially Empower Women Entrepreneurs in India

Schemes for Women Entrepreneurs | Representative Image (Photo Credits: Pixabay)
Schemes for Women Entrepreneurs | Representative Image (Photo Credits: Pixabay)

The start-up ecosystem has been blooming in India without any gender disparity, more and more women are also establishing and running their own businesses successfully and independently. In many sectors, the women-led businesses have outshone the male ones. Even the government through its various organisations, several private and public sector banks and other non-banking financial institutions are progressively supporting the women-led initiatives. They are providing loans and funds at easier and flexible terms of repayments and lower interest rates to female entrepreneurs so that they easily overcome the financial bottlenecks and a smooth and efficient functioning of business is undertaken.Women-Led Businesses in India Get Major Boost As Visa Announces Grants To Empower Budding Businesswomen.

Here are 5 schemes to financially empower business women :

Pradhan Mantri Mudra Yojana

Under this central government scheme, loans ranging between Rs 50,000 to Rs 10 Lakh are offered to women entrepreneurs at easy terms of repayments. It is managed by the Micro Units Development and Refinance Agency (MUDRA) and offers loans to production, trading and service sector businesses.

Stree Shakti Package For Women Entrepreneurs

Under this scheme offered by the State Bank of India, women who have at least 50 per cent of the ownership stake can avail a discounted rate of interest by 0.50 per cent if the loan amounts is Rs 2 Lakh or more. The applicant should however taken part in state run Entrepreneurship Development Programmes.

Orient Mahila Vikas Yojana Scheme

Under this scheme offered by the Oriental Bank of Commerce, women who have at least a 51 per cent of the ownership stake can avail loans ranging from Rs 10 Lakh to Rs 25 Lakh without any collateral security. With a payback period of seven years, a concession of up to 2 per cent is also given on the loan. Business Confidence in India Improves As Economic Activities and COVID-19 Vaccination Drive Gathers Pace: NCAER Survey.

Stand-Up India

Under this scheme offered by the Small Industrial Development Bank of India (SIDBI), loans are offered to manufacturing, trading and service sector businesses. Loan amount ranging from Rs 10 Lakh to Rs 1 Crore are offered to the applicant. It can be repaid within seven years from the date of issue.

Bharatiya Mahila Bank Business Loan

Under this scheme, loans are offered up to Rs 20 Crore for businesses in the manufacturing and production sector. It also provides, a concession up to 0.25 per cent on the interest rates is also provided. Under it, one can avail a loan up to Rs 1 Crore without any collateral security.

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Finance Startup

Women-Led Businesses in India Get Major Boost As Visa Announces Grants To Empower Budding Businesswomen

Women Entrepreneurs in India (Photo Credits: Pixabay)

New Delhi, February 8: In a bid to boost women entrepreneurship globally and empower budding businesswomen, Visa on Monday announced the recipients of its grant programme in India. This would be Visa’s first global grant programme which will be in partnership with several startups that are led by woman entrepreneurs. Visa has partnered with IFundWomen, Bunko Junko, My Chapter One and MoWo Social Initiatives, where each one received a Rs 7,00,000 grant from Visa.

Resources from Instamojo will grow their businesses digitally, in a continued effort to offer better services to their communities. In a statement, Kevin Phalen, global head of business solutions, Visa that  access to funding, educational resources and a digital presence are fundamental building blocks that will help small businesses get back to not only surviving, but thriving.

Women-owned enterprises in India have grown from 14 percent to 20 percent in the past decade and employ between 22 to 27 million people.

  1. Highlighting this growth in women-led startups in India, Visa received applications from hundreds of businesses across the country in sectors including apparel and fashion, healthcare and wellness, food and beverages and art and events.
  2. The company evaluated 16 semi-finalists by a jury panel comprising senior leaders across Visa, FICCI FLO (FICCI Ladies’ Organization) and Instamojo. The final winners were selected based on the count of jury votes.

In addition to the grants, Instamojo, the digitization partner, is providing the winners with tools and resources to help build their digital presence.

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Finance

Union Budget 2021 Highlights: The 5 Big Takeaways.

highlights of Union Budget 2021-22

When Finance Minister Nirmala Sitharaman presented her third Union Budget 2021 on Monday, everyone had great expectations from it. The Union Budget 2021 came at a time when the economic growth of India is on the downhill due to the COVID-19 lockdown and its aftereffects.
During her two-hour-long speech, Sithraman said that the proposed Budget for this financial year is based on six pillars- health & well-being, physical, financial capital and infrastructure, reinvigorating human capital, inclusive development for aspirational India, innovation, and R&D, and ‘Minimum Government, Maximum Governance’.
There have been many significant announcements that include a proposal to disinvest two more PSBs and a general insurance company, hikes in customs duty to benefit Make in India, and numerous infrastructure pledges to poll-bound States.
The fiscal deficit that currently stands at 9.5% of the GDP, is estimated to be 6.8% in 2021-2022. Personal income tax slabs remain the same, however, there have been changes induced for the senior citizens above 75 years.

Here are 5 most important Budget takeaways:

Healthcare Sector
Along with focusing on the strengthening of the Urban Swachh Bharat Mission, the Government has launched new schemes such as PM Atma Nirbhar Swasthya Bharat Yojana to develop primary, secondary and tertiary healthcare, and Mission POSHAN 2.0 to improve nutritional outcomes across 112 aspirational districts.
The set-up of around 17 new public health units is proposed at points of entry. Also, the existing health units at 32 airports, 15 seaports, and land ports will be modernized.
Keeping the healthcare sector in focus, FM allocated Rs 2,23,846 crore to the healthcare sector in 2021-2022, Rs 35,000 crore for the Covid-19 vaccine.

Growth in Focus
Despite the year 2020 is hard on the common man, Sitharaman has avoided any tax relief exemptions to the ‘aam aadmi’. There have not been any increase in the standard deduction and no raise in the tax slabs.
Taxpayers are not required to estimate the dividend income while making advance tax payments. The advance tax will be payable only when the dividend is declared or paid by the company. Taxpayers can save the payment of interest due to underestimation while paying advance taxes.

Road to Recovery
After struggling for six years, the government has finally decided to come up with an asset reconstruction company to take over the bad loans of banks that will give them the flexibility to boost the economic growth.

Asset Monetisation
This is one sector, where the government has not performed much to inspire confidence. National Monetisation Pipeline of potential assets of NHAI, PGCIL, warehouses, airports, Railways, sports stadiums.
Major Highway Projects
The four poll-bound states get major highway projects: Kerala (1,100 km- Rs 65,000 crore), Tamil Nadu (3,500 km- Rs 1.03 lakh crore), Assam (1,300 km –Rs 34,000 crore), and West Bengal.
Finance Minister Sitharaman`s third budget is bold on multiple levels. It not only carves a pathway to growth but also signifies a strong intent for reforms.

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Finance

Union Budget 2021 Live Updates: Expect Costlier Phones as Govt hikes customs duty on parts

Budget 2021 live updates

Finance Minister Nirmala Sitharaman today presented her third Union Budget in the Parliament this year. The Budget 2021 is based on the six pillars as physical, financial capital and infrastructure, health and well-being, inclusive development for aspirational India, reinvigorating human capital, innovation, and R&D, and minimum government and maximum governance.

Calling the current Budget an active and not a reactive budget, the FM stated that India is moving from Covid-related reforms to Atmanirbhar resolve. All eyes were set on the Union Budget 2021 and besides the parliamentarians, it was seen by both domestic and foreign investors, middle class, and corporates, along with various interest groups like farmers.

The 2.5 % duty hike is also applicable on parts of manufacture of PCBA (Printed Circular Board Assembly)of cellular mobile phones, camera modules, and manufacture of connectors and raw materials.
In a bid to improve the manufacturing sector in India, the government has increased the customs duty for up to 10% on mobile chargers, sub-parts of phones. This step could lead to a rise in the cost of mobile phones by 3-4% from February 2, 2021.

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Finance

Union Budget 2021 Live Updates: Healthcare expenditure doubles up in “Get Well Soon” budget

Budget 2021 live updates

With FM Nirmala Sitharam unveiling the annual budget on February, 1, the government focuses on the healthcare sector in the wake of the pandemic. The focus of the entire world has been majorly centered on the healthcare industry. Keeping with the trend, the post-COVID budget provides a major boost to healthcare and infrastructure.

In healthcare spending, Sitharaman announced a total spend of around Rs 2.23 Lakh crore on healthcare, which is a 137% increase from last year under the Atmanirbhar Swasth Bharat Yojana. The government also proposes a budget of Rs 35,000 crore on COVID 19 vaccine development and inoculation. This will ensure uninterrupted healthcare services for more people.

Along with the National Health Mission, the investment of Rs 64,180 crores over the next 6 years are expected to improve primary, secondary, and tertiary healthcare. The government has also proposed the establishment of critical care units and hospital blocks that will act as a catalyst in the country`s domestic market growth and place India as a key player in the global markets.

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Finance

Union Budget 2021 Live Updates: No Income Tax Slab Change in Budget 2021.

Budget 2021 live updates

Finance Minister Nirmala Sitharaman has concluded Union Budget 2021 speech. She has proposed various benefits for the investors, depositors, and taxpayers. While keeping the Income Tax slab rates unchanged, FM Sitharaman has provided relief for senior citizens above 75 and NRIs by proposing few changes.

Senior citizens who are earning pension and income from deposits are exempted from filing Income Tax Return. Annual premium up to Rs 2.5 lakh on the maturity of ULIP will also be exempted from Tax. However, EPF interest income above Rs 2.5 lakh will be taxable.
The Government will also take all the necessary steps to provide GST relief by reducing inverted GST structures.

As the FM earlier had promised that the post-COVID Budget 2021 will be like no other, the common man was expecting that the government would expand some tax advantages through the budget. Several experts and professional bodies like ICAI had also recommended the government to increase the deduction limit under Section 80C of the Income Tax Act.

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Finance

Union Budget 2021 Live Updates: Government focuses on Fiscal Deficit & Tax Exemption for Senior Citizens

Budget 2021 live updates

Finance Minister Nirmala Sitharaman is presenting the most awaited post-COVID Budget 2021. Not only the Union Budget 2021 will be paperless this year, but it will also put forward a concrete plan to boost the COVID-hit economy.

Finance Minister has announced some significant changes to the taxation process that involves the removal of income tax for senior citizens under certain conditions, new rules for the scrapping of double taxation for NRIs, and a reduction in the period of tax assessments. She has also announced that the advance tax liability on dividend income will arise after the declaration of payment of dividends.
In her speech, Nirmala Sitharaman also said that India`s fiscal deficit is expected to jump to 9.5 percent of Gross Domestic Product in 2020-21 as per Revised Estimates. The rise in fiscal deficit is estimated on the account of the increase in expenditure
While unveiling the Union Budget 2021-22 in the Lok Sabha, Sitharaman said that the government is expecting to bring down the fiscal deficit below 4.5 percent, which has soared to a high of 4.6 percent in 2019-20. The fiscal deficit is expected to go down below 4.5 percent of GDP by 2025-26

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What is a Fiscal Deficit?
Fiscal Deficit is the difference between the expenditure of the government and the revenue generated in a financial year. It is calculated both in absolute terms and as a percentage of the country`s gross domestic product (GDP).

According to the Finance Minister, the government is planning to borrow Rs. 80,000 crores during the residual two months of the current fiscal year.

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Finance

Union Budget 2021 Expectations: What India’s Aviation Sector is Expecting?

Aviation Sector (Photo Credits: Pexels)

The novel coronavirus pandemic has majorly affected the aviation sector. The industry incurred severe losses after thousands of flights daily came to a standstill in March 2020. To cope with this, the sector is hoping for support from Finance Minister Nirmala Sitharaman in the 2021 Budget on February 1.

From lowering air turbine fuel taxes (ATF) to reducing airport, landing, parking and navigation charges- the industry is expecting help from the government. The ATF comprises around 30-40 per cent of the total cost of an airline.

The sector is also expecting the government to remove a cap on fare prices. A fare cap price band was introduced in order to avoid exploitation by airlines. However, the sector now believes that the government should remove the price band and airlines should be allowed to set ticket prices.

“Since the airlines have to currently follow a fare band as per the directives of the Ministry of Civil Aviation (MoCA), which is constraining their ability to charge higher fares, they want relaxations in terms of the fares they can charge,” said Kinjal Shah, vice president, ICRA.

Recently, the government also hintend at rationalisation of various taxes in the aviation sector. “We are working on a long-term plan to help the sector by rationalizing various taxes,” said Usha Padhee, Joint Secretary, Ministry of Civil Aviation. As of now, the government has allowed airlines to run on 80 per cent capacity, after starting out with 33 per cent in May 2020.