10 Things You Must Know About EPF Scheme And How to Calculate The PF Balance

Upon retirement, the employee gets this amount that constitutes of employee contribution, employer contributions and the interest on both. The idea of the Indian government behind the EPF scheme is to encourage savings. Listed below are 10 things that you must know about EPF scheme.

  1. EPF is the main scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is managed under the support of Employees’ Provident Fund Organization (EPFO).
  2. It covers every organization having more than 20 employees. A few companies that employ less than 20 persons are also covered in the EPF scheme but on certain conditions and exemptions.
  3. The employer’s contribution towards EPF is 12% + dearness allowance + retaining allowance. The equal contribution is made by the employee also. However, companies having a work force of less than 20 people can contribute only 10% towards the EPF (it applies for both employee and employer).
  4. For private sector employees, the EPF is calculated on their basic salary, which means if the monthly basic salary of an individual is Rs 30,000, the employee contribution towards his or her EPF would be Rs 3,600 a month (12 % of basic pay) while the equal amount is contributed by the employer each month.
  5. According to the EPF Act, for claiming final PF settlement, an employee has to retire from service after serving for 55 years of age. The total EPF balance includes the employee’s contribution + the employer contribution + the accrued interest.
  6. The EPF withdrawal is not taxable if one has completed at least five years of continuous service. It is also applicable to the condition where one has switched jobs in less than five years but transferred the EPF to the new employer.
  7. Withdrawing the PF balance without completing five continuous years of service has tax implications.
  8. Contribution towards EPF is meant to take care of the post-retirement needs. However, one can also withdraw the entire EPF amount or just take an advance during the course of employment to meet specific needs such as buy a house, repay the home loan, medical needs, education or marriage of children, etc.
  9. EPFO has recently allowed members i.e. the contributory employees of the provident fund (PF) scheme to use 90 percent of EPF accumulations to make down payments to buy houses and use their accounts for paying EMIs of home loans.

Calculate employee provident fund balance using EPF Calculator

The EPF balance constitutes of the employees’ contribution + the employers contributions, which is 12% of his/her monthly pay + the dearness allowance. When the Basic Pay plus DA is less than or equal to Rs 15000, the employee contribution is 12% of Basic Pay + DA whereas the employer contribution is 3.67% of the Basic Pay + DA.

EPF Calculator is an ideal tool that can help you calculate your EPF accumulations. You simply have to input some basic information like your age (in years), your monthly basic salary (in rupees), your contribution towards EPF (%), your employers contribution(%), average annual increase in salary you expect (%), age when you intend to retire, current EPF balance (if any), and current interest rate, then click on “Calculate” to get the results instantly.

The EPF calculators work the same way as your EMI calculators, but here they tell you about the savings instead of the expenditures that you will be making in future.

Tax on Early PF Withdrawals

Withdrawing your PF after leaving an organization might sound like a lucrative idea to get hands on the money that you have been saving. But one thing that you must know here is that withdrawing money without completing 5 years in an organization continuously will bring tax implications. The contribution employer making towards the PF along with the interest accrued will become taxable in the year you plan to withdraw your PF. In addition to this, the amount of deduction that was earlier claimed to tax relief under Section 80C will then be added to your total income during the year of withdrawal. Herein, the interest earned on your own contribution towards the PF will also become taxable.

Tax deducted on source (TDS) on PF was introduced by the government on PF withdrawals with the motive to discourage people from premature withdrawal of their PF amount and to promote long term savings. However, if an employee is withdrawing PF after five years of continuous service in an organization than no tax will be deducted. Also, TDS will not be applicable if the employee is transferring PF from one account to another.

Important Ideas That Will Help You to Succeed as a Trader

The commodity trading system is still one of the best arrangement to make money from the accommodation of your home, and this is why the commodity options trading system is contemplated as the best way to cognize the basics of trading. Traders ordinarily rely on two types of knowledge to get their data. There are Exterior and internal factors to judge the market. Some people use the adventitious factors such as season or political events to invest in commodities, while some others follow the up and downs in the trade.

1. The More You Learn, The More You Earn: Your investor’s trading daily should not be your only source of knowledge when it comes to commodities trading but your trading techniques should be crafted based on your own research too.

2. Research Is Not Reading Tips: The biggest issue in following tips for the commodity options trading system is that it’ll be too tardily for you to apply them. Instead of going for someone else’s tips, constitute sure to do your research and find unique knowledge which you can rely upon.

3. Try Something New But With tiny Capital: When it comes to the achievement in commodities trading system, the application is the key. People who eternally go on the same route may not lose money but they won’t be making too much either. This is why you need to stick to the tentative strategies but never invest too much capital in something.

4. Do Not think To Make Quick Money: Unfortunately, there is nothing called quick money in commodities. If someone is making money comparatively easier, they presumably have the great experience. However, do not invest in anything with loan money or money that you kept for something else. In the event of the prices going down, you will face huge losses. Make your verdict wisely to defend your investment.

5. Reinvest: Whenever the stock value goes high, make sure to sell the commodities equal to the value of your investment plus brokerage. This way, the remaining commodities can be contemplated as pure profit. You need to reinvest this capital in something else.

6. Liquidate infrequently: If some of your occupants are performing really well, make sure to liquidate some capital because there is no disadvantage in enjoying your profit.

7. Know Your Competition: Commodities trading system is a very sophisticated business and you have to face stiff contest there. Without knowing how to deal with the competition, it’s quite arduous to preserve your grip in the market.

Step by Step Guidelines to Invest in Share Market

Economies around the world are in a buoyancy phase. Indian economy is one of the fastest emerging economies of the world. Usually rising or falling economies are judged by their share market performance. Investment in Indian share market is one of the ways to increase your returns on investments.

The best thing regarding investment in share market is that minimum amount is very low. Once all formalities (account opening, etc) are completed one can invest as much as one feels (starting with few hundred) and the time, as and when can be decided by oneself (when to invest). Unlike in reality where you need a good amount and the property should be available for sale.

Most of the people invest in share market (getting tips from stock advisory company) because it gives one of the best rates of returns as compared to a bank or mutual funds or reality and gold. Though, as with any investment, the risk is also associated with it.

This attractive return on investment has a magnetic effect on people and they are attracted towards share market and share market tips. And many wish to open account and trade in share market. So the question arises how to invest in shares.

Choose depositary participant (DP) and open demat account

The depository is an institution which holds securities such as shares, debentures, mutual funds, etc. and in which trading is done. Basically, there are two depositaries in India National Securities Depository Limited (NSDL) and Central Depository Service (India) Limited (CDSL). DP is the intermediary between depository and the investors. He is registered as such with SEBI.

Just like a bank account, one has to open an account with the DP. Account opening forms are available with the DP which has to be filled and submitted. List of DP can be downloaded from the internet. Demat account is for holding your shares in dematerialized or electronic form.

Choose stockbroker and open trading account

Depending on the type of trading one wish to do he can open a trading account with a full-service broker or discount broker. Full-service broker apart from selling/buying shares, provides a host of other services like research, advising etc. It is good for those investors who wish to hold their securities over a considerable long period of time. Discount brokers only provide services of selling/buying. It is good for those traders who frequently buy/sell shares usually called day traders.

One has to fill the form and submit the form providing details of identity and address proof like PAN card, Voter ID, birth certificate etc. Presently Aadhaar card is necessary and serves both as address and identity proof.

Choose a bank and open savings account

A saving account has to be opened in a bank. Bank accounts are needed for the fund as transferring to and from DP. Prescribed forms have to be filled and required documents like PAN, Aadhaar card, photographs etc are to be submitted to the bank.

Know your customer (KYC) has to be filled and has to be compliant everywhere.

One can get stock market tips to get better returns on your investment.

There are certain banks like SBI, ICICI, HDFC, Axis, Kotak Mahendra and Citi bank which have a facility of 3 in 1 account. (Demat, trading, and saving).

The Importance of Systematic Investment Plan

Systematic investment planning of our accessible financial resources in such a way that we can generate the highest possible income out of them with negligible risks. For this, you can either plan investments by manually, or consult a specialist usually a financial planner who helps in doing your investments wisely along with continuous monitoring of the presentation of your collection so that you do not miss the best opportunities accessible in terms of investing and also do not take unnecessary risk on your portfolio. A financial planner will help you to your investments by inclining them with your financial goals. By this way, you would know where you are going and it will become easier for you to chart out a suitable pathway towards the relevant objective point.

SIP is a smart and hassle-free mode for investing money in a long-term investment. SIP allows you to invest a certain pre-decided amount at an ordinary basis like weekly, monthly, etc. A SIP is a considered approach towards investments and helps you included the habit of saving and building wealth for the future.

A SIP is a flexible and simple investment plan. Your money is auto-debited from your bank account and invested into a definite long-term system. You are allocated a certain number of units based on the continuing market rate for the day.

SIP refers to Systematic Investment Plan which is the mode of investing in long-term in a regular. A SIP enforces a disciplined advance towards investing and infuses normal saving habits which we all possibly learned during our childhood days when we used to maintain a piggy bank.

SIP is systematic investment plan there is an investor invest our money in the indirectly from the share market. SIP has included low risk because it is similar from the long-term investment there is no limit how much you have invested in the market. SIP is one of the best methods for your future planning and also if you have any plan from future so invest some part of your income for the long term you have to get the best return from the market. The best example of SIP in your childhood, parents gave some pocket money so we are saving some amount in your small money bank, For your next plan SIP Working just same we are saving some part of your income in regular basis or monthly basis for the next plan.

Leading Market Indicators Designed to Reduce Risk

Trades and investments are a high risk, even when there is a sense that the trend will rise. Making a profit from every portfolio trade or investment is complex because current systems provide lagging indicators. There is not a way to predict when the market will change. To alter the outcome of your trade or investment, leading market indicators are used. This strengthens your portfolio while offering confidence with your next trade.

When any trade or investment is made it is done with high risk. Professionals often provide advice to expect a loss and to create profit margins of limited returns. Despite this wisdom, uncertainty in the market remains problematic with every trade and investment. The economic conditions, surrounding environment and the alterations with businesses quickly shift the profitability available with any of the trades or investments, even when they see promising.

Traders and investors have approached the uncertainty by using strategies and tools. Advice to use intuition, approaches with quantitative analysis and automated trading are some of the approaches and strategies applied. Today, there are also leading market indicators that are used to alter the outcome of what is occurring within the stock market. These are designed to provide accuracy while predicting the next change in the market.

There are different types of leading market indicators. Some show the changing trends, predicting the near-term and long-term tradeable security that is taking place. There are many which offer real time results while others remain ahead of the curve with the market trends. There are also approaches to determine pivot points, sensing when changes will take place in the market. Buy / sell signals are also available with the forward-thinking tools, allowing traders and investors to have support with their next investment.

Reducing risk and increasing confidence in the market takes place with leading market indicators. Traders and investors interested in building a portfolio of profitability can turn to new systems and tools designed to give an edge to the current market. By adding portfolio of profitability into their strategy, every trader and investor has a new advantage to strategically position their portfolio.

Best Commodity Trading Strategies

Commodity trading, often with the assistance of a futures broker, is being completely viewed as a safe and an economical investment horizon. Introduce yourself to the various commodity trading strategies to closely monitor your broker’s merriment and further you can also develop a rewarding strategy yourself.

Commodity trading strategies help you to have a suitable approach to time your trades. Such accessibility need not be necessarily based merely on general financial news or commodity distinct reports but incorporating some level of technical and fundamental analysis empower you to frame realistic tactics and you can get Free tips.

Strategies to trade in commodities ordinarily follow either a range trading method or breakout methodology; you can also use transform of both to tweak your approach.

Commodity Trading Methods:

• Range Trading Method: This method entails buying the commodity at low range (support) and selling it at high range (resistance). The strategy aims to buy when the commodity is oversold and its prices drop to rock bottom levels and targets to sells an over purchasing a commodity, when it prices reach peak level. You can quantify the overbought and oversold levels by monitoring RSI, Rate of Change, and Stochastic etc. This strategy is profitable when no substantial trend of the market can be arrived at.

• Breakout Method: Opposite to the range trading method, breakout method postulates you to purchase a commodity at its high levels and sell it when it prices shrivel and make new lows. Graphical demonstration in various reports, news aids you to easily track the high and low levels. When there is durable information on a commodity and subsequently prices tend to rise, such strategic can give you a good advantage.

Further Useful Commodity Trading Strategies:

  • Stick to a certain strategy for an advisable period before shifting to a new one, as frequent changes in strategies may not be fruitful.
  • Don’t structure or change strategy immediately based on news reports. A careful understanding and explanation of the news on markets, commodities is warranted.
  • It is advisable to have cognition of the production cycle of commodities especially food items, as seasonality holds the key in price assessment of such items.

Provide The Excellent Services With Mutual Fund Software

Access the best source, get the great product and provide the excellent service, this is the perfect way to reach the expectations of customer, and by fulfilling the expectation you can not only earn their complete trust but through them you can approach the other people too, this can make the perfect image of your advisory among the group of investors, and you can get of this only with the comprehensive Mutual Fund Software, which contains the complete set of essential and advanced features, so that advisors can produce the better idea for their clients to help them in generating the more revenue from their investment.

A strong and good bond with the customers is certainly helpful especially when it comes to the business extensions or to overcome the difficult situation, therefore if you want to build the solid and warm bond with them you need to provide them the best services and benefits, such as like: –

1.Excellent Management: – For establishing the best relationship with your customer, you have to adopt the great management system for managing their portfolios, data, reports and other essential things.

2.Comprehensive Features: – People always prefer software with comprehensive features which are able to serve them in every aspect without showing any difficulties and this is the most reliable way to plant the seeds of beliefs in the heart of investors for you.

3.Exquisite Performance: – Your performance proves how much are you worthy to trust, so show the clients your exquisite performance and make your way to win over them.

4.Exclusive Services: – If you are not able to give the best services to your customers then you won’t be able to keep them with you and eventually they will switch to your competitors, therefore to prevent this kind of situation provide them the exclusive services which are completely different and better than your competitors.

5.Collected Work: – To form the solid relationship, you need to serve your investors with the software, which is the complete set of collected work, so that they can get the vision of their entire work, which you do for them in one place.

And this can be possible only with the help of the masterly Mutual Fund software; it’s fully able to provide you the complete set of best services and features, so you can offer them to your customers.

In old days, advisors have gone through to the lots of hardships in their daily life because they had to manage the thousands or hundreds of portfolios of customers, but now the situation get drastically changed because of the revolutionary Mutual Fund Software, it will maintain all of your client’s portfolios, no matter how many you have in your business. This software only built with the purpose of giving you and your customers a complete comfort where you can use the high-tech advanced tool for the growth of your business and customer’s revenue so that you can complete the basic objective of your advisory business establishment. This software not only helps you for your client’s matter, but it will also lighten your workload and save you from the manual work because it is fully automated and capable to perform all the works for you instead of you.

Tips That Help To Make Investment in Trading Market

Tips That Help To Make Investment in Trading Market

There are basically two types of trading marketplace prevailing in India, first one is stock market or equity market and another one is commodity market. If you are thinking to make investment in the trading marketing then Indian commodity market proves to be a better option of this. There are so many points which should be considered before investing in the commodities. Some important tips which you should really consider are listed as:-

Knowledge

Before investing our money in any policy we first read about its terms and condition and get information about it same thing we have to apply in trading market. Before investing in trading markets, the first or the foremost thing you should do is to gather more and more information about the market and then take a step towards it. You earn maximum profit or good money only when you have genuine information about the markets. There are basically two main parts of commodity marketing, MCX and NCDEX; you should have knowledge about them and their upcoming produce.

Commodity Selection

After getting some knowledge about market, you should choose in which commodity you want to make investment like gold, crude oil tips, natural gas, silver, metals or any other that brings better profits to you.

Margin knowledge

Every commodity trading is based on margin; a specific price is paid in exchange according to your trading. It generally varies from 5 to 20% periodically.

Commodity Tips

Before buying and selling contracts of any commodity markets should keep your eyes and ears open and understand detailed information about the commodity markets. Try to figure out the profit earned by it and understand its future prospects. Nowadays, there are various companies and individual persons that help you to make investment at the right place. They analysis the marketing by different tactics and bring best opportunity at your door. But do not completely reply on the information provided by them; apply your own mind before moving ahead.

Commodity Trading Signals For Investors to Raise Their Capital

Commodity trading signals shared by the top comex tips providers suggests a demotion in the prices of gold in a short run, due to higher chances of dollar consolidation with other major currencies. Entering into gold commodity with stop orders with a short position is suggested in that latest commodity trading picks.

The last note:

Stock investment in Singapore market might be dependent on less factors not all time but generally SGX economy is only to be taken care off before making any investment decision. But when it comes to comex, every news coming from any corner of the world is important because it’s tough to state that how it will affect commodities, what will be the responses of any action taken around the globe.

Thus, regularly stay updated with world economy. Ask yourself before investing into any commodity that, what will be consequences of this investment and if the answer is profits, you can invest into that commodity. However, if the answer is not clear, then you must think before investing the possible outcomes.

FD Interest Rates of All Banks Reducing Substantially

Traditional way of saving the money is either to keep it in safe or to open a fixed deposit account. The conventional way of investment is to park money in fixed deposit. But in recent times, FD interest rates of all banks have been revised. The repo rate cut subsequently resulted in fixed deposit rate cut. The returns have significantly dropped down due to which people investing for good returns are not finding it suitable.

However, it continues to be the best option for the people who are looking forward to definite and regular returns. It is a convenient option for the risk aversing people. Despite the fact that rates are continually dropping down it retains to be the people’s choice. This is because of the following features and benefits a depositor gets. The benefits of fixed deposits are mentioned below:

  • The account can be opened with any amount
  • No limit on the deposit amount
  • Flexible range of tenure
  • High interest rate than savings account
  • Interest paid out at the frequency decided by the customer
  • Amount locked-in for specified period of time
  • Guaranteed returns
  • Source of regular income
  • Benefit of extra interest to senior citizens
  • Nomination Facility available
  • Depositor can avail loan against fixed deposit
  • No rigid eligibility criteria
  • Convenience of online account opening
  • Amount on maturity is automatically credited in the account

As stated, the account can be opened by all, the non-individual’s too can open the account. The eligible segments are:

  • Individuals
  • Hindu Undivided Families (HUFs)
  • Minor represented by parents/guardian
  • Associations
  • Clubs
  • Trusts
  • Sole proprietorship firms
  • Partnership firms
  • Limited Companies

The existing customer doesn’t has to provide much documents. However, if you are a new customer then according to the category, the following documents are to be submitted:

Documentation Required

1. An Individual, Hindu Undivided Family, Sole Proprietorship Concern-

  • ID Proof – Passport, PAN Card, Driving Licence, Voter ID, Government ID Card, Senior Citizen ID Card
  • Address Proof – Telephone Bill, Electricity Bill, ID Card Issued by Post Office, Bank Statement with Cheque,
  • A photograph

2. Trusts

  • Copy of the Trust Deed
  • Copy of the registration certificate
  • Copy of the Resolution of the Trustees authorizing the members concerned to open and operate the account
  • Photographs of the members operating the account

3. Associations/ Clubs

  • By-laws of the Association
  • Copy of the Resolution by the board authorizing the members concerned to open and operate the account
  • Photographs of the members operating the account

4. Partnership Firm

  • Partnership Deed
  • Letter from partners approving the persons concerned to open and operate the account
  • Photographs of the persons operating the account

5. Public or Private Limited Companies

  • Board Resolution / Authority Letter
  • Memorandum & Articles of Association
  • Certificate of Incorporation
  • Certificate of Commencement of Business (Public Limited Company)

Form 32 in case list of directors are not original subscribers to Memorandum & Articles of Association (in case of Private Limited Cos) Duly acknowledged by ROC Governing Act / Rules and Regulations(PSUs) (certified true copy)

The documentation process is simple. The customer doesn’t has to engage in lengthy procedure. It is very simple to open the FD account. Moreover, it is secured form of investment in terms of returns. Where, you get back what is being promised to you. The return rate is determined at the time of opening the deposit and remains intact even if the rates are revised in mid term of the plan. The customer can select the horizon period calculating his?her future requirement and select from the wide range of tenure.

It is a suitable option for those who have lump sum amount to put in. As the interest is calculated on the principal amount, the invested amount yields interest throughout the period of investment.