While shopping for food and related products you tend to look for the Agmark recognized brands. Similarly, ISI mark is sought when you are in for shopping of various industrial products. However, not many people know that there is a recognition certificate for the firms related to investment sector too. Ever heard about Crisil or Care or ICRA? If not, then this article would surely cover all that you know about these credit rating agencies.

Okay, now what are these credit rating agencies?
These companies assign the credit ratings to the issuers entailing to different types of debt obligations. Since the world of investment is all about lending and paying, thus credit agencies have an important role to play in this .There are many investment options available in the market. Nonetheless, one must look for opportunities that make you earn high returns with minimum risk involved. Crisil is one such agency that started back in 1987 followed by various other organizations like ICRA in 1991 and so on. Their work is to assess the risks and defaults risks on the products and make you aware if they are safe enough for you or not.
How are the ratings done?
The rating scales for deposits and bonds are as follows:

• The rating scale for very high safety is denoted by the symbol AAA to potential default grade D.
• Any bond with a rating below BBB is considered to be of non-investment grade.
• Ratings lower than A are considered as below investment grades.

The methodology of these ratings is based on several factors considered by the agencies before rating any firm. They also analyze various risks associated with the business while rating bonds, deposits etc. The parameters used by the agency to verify a firm differs from sector to sector. For example, while assessing a loan company, the agency would look into the credit history of the promoter, its profile and the pattern of his share holding. Moreover, aspects such as size of the franchisee and the potential of company to grow further also are included.
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• Ease Up Your Loans
• Retire rich remain rich
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Conclusion:
The crux of the story is that, that whenever you decide to invest, make sure that the company you choose has a proper rating. Doing that, you’d be able to save yourself from loses as well as avail handsome returns.

Most of us are confused while buying stocks. Ever heard about Market Capitalization? In fact, a very important tool helps us in identifying the kind of stock to invest in. Before going further, let’s find out that what actually Market Capitalization is.

If you are looking forward to buy a company/firm and all its shares are offered to you at the current market price. How much would you pay to the company? The answer to this question is Market Capitalization, which is the result of the product of a company’s total number of outstanding shares and the market price of the share.

Market Specialization = Market Price of the share x Number of shares outstanding
However, the market price is not the actual price of the share. It is an estimated price that is based on the public opinion about the worth of the company’s stock in the market. This opinion is generally based on the history or the past performance of the company and on its future prospects and the views of the public about the company. This can also lead to changes pertaining to several other factors like inflation, interest rates, and various other economic factors. Thus, in all, Market Capitalization is the public opinion about the importance of the stock of a company. Now, in our country there are companies that have Market Capitalization ranging from a few lacs to crores. That brings us to classification of the companies done based on Marker Capitalization.

Now, the categorization also has a mathematical reasoning behind it. BSE classifies companies according to market capitalization using the method: 80-15-5. This is how it goes:

Firstly, arrange all the companies in the descending order of their market capitalization

1. Large Cap companies would account for all the firms from the top, together contributing 80% of the total market capitalization.
2. The group of companies contributing 15% of the total Market Capitalization would be termed as Mid Cap companies.
3. The rest 5% contributors would be called as Small-Cap companies.

Now, the final question is that, that why should an investor take an account of it? The answer lies within you, depending upon your risk appetite.

Say, if you were a conservative investor, you’d always invest in large cap companies. A moderated investor thinks intelligently and would follow a mixed proportion of large caps and as well as mid caps. On the contrary, a risky mind would invest in risky mid-caps and highly risky small caps companies. Moreover, he would also invest a little in the larger cap companies to safeguard his returns.
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To conclude, it all depends on what type of person you are. In this way, market capitalization plays a significant role in deciding what kind of companies one should invest in. By choosing the best stock, one could help protect his hard-earned money and enable grand returns.

Retirement is the time to shed off all your responsibilities and live a hassle free life. Most people do not think of it until they get in their mid ages. Pension plans give rigidity to the income flow even after retirement. There are many types of pension plans followed by a series of advantages and disadvantages.

Primarily, there are two types of pension plans:

1. Deferred Annuity Plan
Almost half of the pension plans sold in India are deferred annuity plans. These kinds of plans first entail an accumulation phase i.e. a fixed tenure is designed during which a person deposits a set amount of money in the company. After that particular period, say after 20 years of deposition; you’d be supplied with your pension money soon after. However, the major drawback of this plan is that, that the pension does not start immediately. One has to wait until the accumulation period is completed.

2. Immediate Annuity plan
Not many companies in India have immediate annuity plans. In these kind of plans, one can start receiving his pension money right after an year of deposition of money. Since in these plans, large capital is invested in one stroke,therefore,not many people are willing to take it up as their pension plan.

Now, let’s talk about the various advantages and disadvantages of the pension plans in India:

Advantages

• If you are a young investor and start investing early in any of the pension schemes, you are likely to built enough capital to satiate you post retirement needs.
• Tax exemption is given but only until 10000 Rs.
• You can withdraw your money any time.
• In case of any death, the money is given to the nominee or your spouse.

Disadvantages

• Availing policies from a private firm can be a little dangerous. What if the company goes bankrupt and you have been provided with no such condition rules prior of buying the plan? So study your plan carefully before choosing it.
• Other than pension plans, there are many other options to let your money grow. Explore other options like SIPs that give better returns than accumulation in a pension plan.
• You are not sure that how much amount you would receive after retirement. Many plans are very vague in these cases.
• Annuity plans have high allocation charges, which the customers are not aware of.

Best reading:

• Things you must plan for your retirement
• Best Fixed Deposit Interest Rates for Senior Citizens
• Why You Need To Diversify Your Investments?

Conclusion: Pension plans no doubt guarantee a regular flow of income to an individual. They not only help in mounting capital over a period but also provide you with income after you are done with your worldly matters. However, one should not consider them as the only option to avail an undisrupted income source. Explore various different investing strategies too. There are certainly many that promise better returns than the usual pension plans.

Since past few years, there has been a staggering rise in the number of people availing bank loans. However, along with that comes the problem of increasing interest rates that has been quite a headache for people. With the inflation rate going up and things getting more and more expensive, it has become extremely difficult to withstand the rising interest rates. At these points, there are banks that offer the facility of switching off your existing loan account from a bank to another bank that charges a low interest value.

The bank always grants loans to new customers at an interest rate lower than the other existing customers. While switching to a different lender, there are certain points that one must keep in mind.

1. Look for the best deal-
There are various lenders whom you can approach to ask for a better deal. While doing that, assure the lenders about your past records and also tell them the reason of switching off your lender.

2. Confer with your present bank-
This is one of the best times to negotiate with your bank and relate them about your problems and the reasons of your discontentment. After this, you’ll be provided with a letter that would contain the result of all the discussion that took place between you and your bank. That is nothing but a proof that the company has given a clean chit to your request. The letter would contain all the details regarding the loan you took. For example, total loan amount, amount that is outstanding and also the pre-payment charges. Now you can approach your new bank for further action.

3. Loan transfer process-
You need to fill an application form along with required details and papers. Moreover, it would be followed by a personal discussion, a field investigation and the valuation of the property. Afterwards, the current lender would pay out the loan to you.

4. Documents required-
The current bank would ask for all the documents related to your property or NOCs

Things to keep in mind
It has been seen that the current bank would not release you property documents unless and until the loan is pre-paid. Similarly, the new bank would not lend you any money until it gets the original papers. To avoid this problem, try to obtain a letter from your current lender that includes all the details of the legal papers held by them as a security measure and indicate the duration required to release the documents to the applicant, once the payment is received.

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Lights, colors, crackers, sweets and celebrations. Anyone can relate it to Diwali, the festival of light. Indians all over celebrate this festival with a lot of zest and enthusiasm. This is one festival which is synonymous to shopping and the market is at its peak during this season. Nobody works during the time of festivity and celebration. However, there is one section that still chooses to work- Stock Investors. To mark the beginning of the trading season, investors go and make token purchases on the auspicious eve of Diwali. This special ritual is called Muhurat Trading which has been celebrated since quite a long time. This Muhurat has a special timing designed during which all the investors carry out the trading process. Firstly, Goddess Lakshmi and Ganeshi Ji are worshipped followed by the purchasing of token. It usually takes place in the evening and continues for an hour or so. Since Diwali, marks a new beginning, it is believed that a positive and bright start is fortunate for the investors all the year long.

Statistics have been the witness to the mount in the Indian market scenario.Nevertheless,it ain’t necessary that the market would always please you. When you look at the past records, the stock market has always seen a rise during the Muhurat Session. With the turnover vaulting up to crores every year. In 2010, the sensex closed at 21,004 during the Muhurat session.

Talking about profits, well there is one bad aspect about the months October and November during which Diwali falls. In the world of stock market, these two months have recorded the biggest upsets.

Diwali is dedicated to Goddess Lakshmi, the goddess of wealth and wisdom. Since, this festival is a wonderful opportunity to initial something new or even revive something old, thus it is advised that the investors seek the blessings of the goddess to nurture their investments in the future.

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Conclusion:
If you are looking for a start in the investment business, Diwali is indeed the perfect time to welcome Lakshmi into your home. So, get ready for a positive and propitious start of investing! Happy Diwali!

“In the end, it’s not the years in your life that count. It’s the life in your years” - Abraham Lincoln

Life is short, Live it to the fullest. We all have heard about this famous quote.Moreover, how many of us abide to it? Well, we cannot certainly have the correct figures. Struggles, victories, and defeats are all a part of life.

Every single person on this earth is paralyzed. Am not kidding. Neither had I meant to sense it in the physical way. Fair of failure is one disease that has spread so widely across our surroundings that it seems futile to get over it ever. Amongst all the successful people, there isn’t a single person who hasn’t tasted the sourness of failure. Nevertheless, they didn’t quit. They stood up and the rest is history. Who wants a life full of monotony and despair? No one and still we hate the idea of being failed. Abraham Lincoln’s motivation in the numerous defeats and his persistent encouraging ability has been a source of motivation all over the America and the world. He came up with the most famous quote:  In the end, its not the years in your life that count. It is the life in your years. This thought of his actually entails such a deep meaning that is extremely worthy enough for everyone to incorporate in their lives. Fear is that worm that eats up the cheerfulness of our life. Crying, cribbing, grieving, and repenting about the things done in past won’t give you anything. Other than a lump full of miseries. So why waste the present? There are people diagnosed with diseases that are incurable. Amongst those, a group has made themselves so vulnerable to it that they have lost the charm of their lives. On the contrary, a fraction knows that their end is near. Nonetheless, they have accepted that bitter truth so and learnt to live and make most of the life left for them. It is indeed very traumatizing to fail, to end up with something that is irrevocably saddening. Yet what makes it special is that little ray of hope that diminishes the melancholy.

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To conclude, I’d say that, that there is nothing bigger tragedy that inhibits your happiness and reduces the contentment out of your life. We have failed to understand that on our grave, the dynamism and liveliness that we have put up in our life would ultimately matter. Not the days that we have spent. Grieving and anguished, all throughout our life!

Getting bankrupt after retirement is probably the biggest nightmare. It is certainly one of the most terrifying prospects for the young employees. However, this can be avoided with an effective planning. There several steps that one can take to safeguard his post retirement life and enjoy it to the fullest.

1. Budget Planning
Retirement life not always may consist of those exquisite charms that you have always dreamt of. Nevertheless, you can still make those dreamy waves come off shore the ocean of your life by properly assessing and planning a budget. Keeping in mind your present and usual expenses that you would face in the future as well. Do a realistic research of your bills and determine your monthly savings regularly.

2. Retire you debts
To avail a smooth income flow after retirement, it is recommended that you push away all your debts before you cease to work. Not being concerned about any loans after retirement is undoubtedly a situation of bliss both psychologically and financially. That way, you can be assured of a suave flow of capital without being concerned about any debts to pay.

3. Provision of your assets
You have to pay attention to all the instruments that you have planned to invest in for your retirement income. If all your investments are distributed in CDs, treasury securities and other like guaranteed investments, you need to consider revising it to avoid the misfortune befall on you in the later life. If you are too much apprehensive of being bankrupt, then an annuity plan offering pension all your life is one of the best possible solution. On the contrary, if you are certain of allocating your wealth and want to explore better returns entitled investment strategies, go for moderate risk investment plans. Alternatively, you could also go for a mix bag of different instruments like ETFs, corporate bonds and so on.

4. Plan your taxes
Suppose you have both Roth IRA and taxable income. In this case, it is advisable to withdraw cash from your taxable account so that it does not leave any impact on the amount of tax that you have to pay afterwards. Moreover, let both your accounts grow over time.

Best reading:

• Retirement planning, planning for the golden days
• Things you must plan for your retirement
• Best Fixed Deposit Interest Rates for Senior Citizens
• Why You Need To Diversify Your Investments?

Conclusion: These were few key points that one should remember and incorporate to get a regular income flow after retirement. In addition, it is always suggested to consult your financial advisor for further queries. However, do not forget to match up your requirements and expectations with the retirement strategies you are availing.

Who doesn’t want to spend his/her time indulging in something that they have always longed to all through their lives? Starting a restaurant, living in a farmhouse, traveling to places far and wide and so on. You cannot certainly succumb to these while you are in midst of your mundane lives. However, as the time of your retirement drifts nearer and nearer, it is recommended to buckle up to fulfill all your lost wishes. That is what retirement planning is all about. Moreover, that is the reason one should systematically plan for the second innings of his life.

In India, the concept of retirement planning is a little new. Nonetheless, with the concept of nuclear family dominating the screen, gradually people have started taking a keen interest in how-to-plan-their-future. As after a particular age, you would have to work upon yourself for your needs. Following are some of the points that one should assimilate crucially in their retirement planning:

The earlier, the better
You would retire some or the other day. Everyone does! So why not begin saving for it early? It is good if you start planning early as it helps you to compound the corpus.

Map your income
The first thing that you must keep in mind while planning is to map your income. Say you want to save for your home rent or medical cost or other expenses. Keep these aspects in mind and start saving accordingly.

Plan it all
Select an appropriate retirement plan that suits and allocates all your future expenses consequently.

Systematic Investment
Design a fixed amount that you’d save every month. Thus, systematically investing your capital for your upcoming life.

Facing the rise in cost
It is obvious that the prices are never stagnant. They will keep on rising. Therefore, do not neglect this factor while you set to plan your post retirement strategy.

Best reading:

• Things you must plan for your retirement
• Best Fixed Deposit Interest Rates for Senior Citizens
• Why You Need To Diversify Your Investments?

Conclusion: Life after retirement is a bliss only if proper and methodical planning entails it. Since everybody has to retire some or the other day, it is needful to assess your income plans and sketch for your second innings as effectively as possible.

With Barack Obama, all set up for the second innings as the president of United States, gold investors have a valid reason to celebrate. The present rate of gold is equal to 1,723$ per ounce and this rally seems to be fuelled up to almost $3,500 by 2013 end. Some of you might think that what relation does the value of gold with Obama holds. Well, there are several reasons behind it.

Democrats’ affinity to gold
Barack Obama’s party i.e. the Democratic Party has always known for destroying the value of Dollar and thus favoring the rise in gold prices. Increment in gold prices eventually is bliss for the gold investors. Thus, it is evidential that the democrats have always detoriated their currency but in a way, it is somewhat overwhelming for many.

Expensive second terms
History has been the witness that the second term presidents of the United States have a habit to squander more and more. This surplus spending cannot obviously be backed up until and unless more and more dollars are printed to bridge the widened gaps. Ultimately, this leads to the devaluing of the currency. Researches show that the presidents in for a second term build a tendency to spend too much, making the metal mount up.

Would gold rally in India too?
Since the gold is set to rally in US, for Indians to churn some capital out of it, it will have to rally in our motherland too. To ensue this, Indian Rupee would have to either depreciate further or match up to the existing levels against the dollar. To make it clear, let us take an example:

The current rate of gold is $1,723 per ounce with one dollar equaling to Rs54.3. That makes one ounce of gold (one troy ounce=31.1gms) worth as Rs93, 558.9. If the value of Dollar were Rs40, then the value of gold would have been lesser. Similarly, if the rate of dollar had been more, the luster of the metal would definitely be brighter. To sum it up, the more INR depreciates against the dollar, Indian gold investors would have a gala time altogether.

Moreover, if you are worried about the fact that the rate of dollar might loose a little. In that case, shed off all your qualms. Ponder and study the current economical situation of our country and you’d get all your answers. Thankfully, our not-so-awesome government is able to cheer up a few faces.

Faith in oneself is the best possible solution for all the miseries prevailing in this world. These lines might give a brief crux of the above mentioned thought. However, how many of you would be interested in knowing the essence of the story that a great man like him uttered? Might be mistakenly, but yes still managed to encompass deep meaning in it .All our life we have been taught number of things that made us capable of being what we are today. Nevertheless, were even educated an iota of what and how faith is  important in our lifetime? Certainly no. How many of us do even know what faith is? Does faith entails to belief in your respective religion? Vedanta says, a man who doesn’t believe in himself is an atheist and not the one who worships hundreds of deities but is incapable of instilling on/third of the faith in him.

All the despondencies in the world are the result of our own. It is the faith in oneself that serves as a driving force for the humans to motivate them. We all might have heard that god is omnipresent. It resides in me. It resides in you. Therefore, until and unless you inculcate faith in yourself, you are bound to face the desolations. Losing faith in oneself is like losing faith in god. There are instances when a person goes so low in his life but after a saturation level, he would definitely go back and try to regain himself by developing faith.

How do you cultivate faith in yourself?  Simply by not getting scared of anything. Do not be afraid of anything in your life. It is the fear that destroys you. It is the fear that degrades you potentials and capabilities. The moment you are afraid of anything, you lose the very reason of your existence. Fear causes misery and miseries lead to evils. Be fearless, be strong. Having faith in oneself should not be made synonymous to confidence. When you are confident, you might end up winning or losing. On the other hand, when you have faith in yourself, it is the karma that affects you. Winning and losing would sound nonchalant.

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Conclusion: The gyst of the whole story is that, that learn to have faith in yourself. If not moneyed, it would calm you and your inner being. Having faith in oneself is the ultimate path of salvation. Moreover, to eternity.
Once Again “If faith in ourselves had been more extensively taught and practiced, I am sure a very large portion of the evils and miseries that we have would have vanished” – Swami Vivekananda