Mutual Funds

Mutual funds, as a means of investment, are being recognized as the most lucrative and the most sought after choice of wealth creation. From putting one’s money into fixed deposits or investing in real estate, people are becoming aware of mutual funds and its value but having limited or no knowledge of it can hamper one’s plan to go ahead with mutual funds completely. At Chetan Financial Freedom, we will give you a summarized info about all you need to know about mutual funds & the benefits it carries.

Why Invest In Mutual Funds?

  • If you have a financial goal, mutual funds can help you achieve it. MFs are managed by dedicated fund managers who have years of experience handling different types of assets.
  • It is very convenient because of low investment amount options, multiple choices based on one’s life & financial goals, offering the ease and ability to redeem them whenever required.
  • Mutual funds help counter the risks to a large extent by equally distributing your investments across diverse range of asset classes. Mutual funds work by the adage “Do Not Put All Your Eggs in One Basket”.
  • Investing in mutual fund is a smart way of beating inflation as it helps investors to generate inflation-adjusted returns, without spending much time or energy on it. This choice of investing makes sure that the purchasing power of your money doesn’t go downhill over some years.
  • As compared to investing directly in capital market, mutual funds offer investors the advantage of low cost investment. Most stock options require a huge capital to begin with, on the other hand mutual funds can be started with as low as Rs.500 per month & investors can derive benefit from the long-term equity investment.
  • Since every mutual fund is managed & regulated by SEBI, you need not worry as your investments are safe. SEBI has several regulations & legal frameworks in place which ensures that your investments are managed in a disciplined manner. Now it’s true that every investment is subject to certain risks, however, prudent selection based on strong market knowledge & fundamentally sound securities with diversification can help hedge such risks and generate high returns on your investments.

Company Fixed Deposits

A fixed deposit refers to an investment scheme that banks and non-banking financing companies provide. FDs offer greater returns on the principal invested when compared to the returns generated from a regular savings account.

Fixed deposits have a fixed tenure, hence the name. Depending on a consumer’s investment portfolio, the FD investment period can either be short-term or long-term. The interest rates on fixed deposits vary from one company or bank to another. Company fixed deposit schemes that are held by companies, other than banks. Investing in such instruments, in many cases, lead to higher returns

Fixed deposit investors need to remember, however, that they cannot withdraw money before maturity without financial repercussions. In emergencies, early withdrawal is possible after the payment of penalties.

Advantages of Investing in Company FDs

Our FD investors can look forward to the following benefits from their investments.

  • Assured returns – Unlike most other investment schemes, Company FDs offer you guaranteed returns on the deposited sum
  • Offers great flexibility – The best FD plans offer flexibility when it comes to the tenure of the plan. Depending on investor goals, they can either open short-term FD accounts or long-term FD accounts. For reference, most organizations offer maturity tenures ranging from 7 days to 10 years
  • High capital appreciation – Cumulative fixed deposit plans compound interest monthly or quarterly or half-yearly. Hence, the deposit amount is substantially appreciated by the end of tenure, more than what any banks or financial institutions could give
  • An additional source of income – The investor can select the frequency of interest payout for non-cumulative fixed deposit plans. Therefore, they can act as an added source of income

Retirement Planning

Is your retirement causing a financial worry? Why worry when our specialised retirement planning services can prepare you for a comfortable retirement lifestyle you deserve

We all grow old. There comes a stage in our life when our income dries up and lifestyle expenses increase. Obviously we start to worry about meeting our lifestyle costs after we retire. Given that, we all have our aspirations and dreams for the golden years of our life. Having lived life on our own terms, we want to have freedom to do whatever we may want and live with dignity and comfort. This will only be possible if we have planned it well and have saved enough funds to enable this lifestyle. Thus, plan today for a beautiful post-retirement life.

The goal of retirement planning is to achieve financial independence, at any age in life. The process of retirement planning aims to:

  • Assess readiness-to-retire given a desired retirement age and lifestyle, i.e., whether one has enough money to retire
  • Identify actions to improve readiness-to-retire
  • Acquire financial planning knowledge
  • Encourage saving practices

We help you in your retirement planning process so that you can lead a comfortable retired life. We advise you about the various retirement planning steps to help you create a personal retirement plan. Here’s what we do with our retirement consulting services:

We help you Plan Your Retirement

We help you with a customised retirement plan, linked with your future goals for a comfortable retired life. We ensure that no stone is left unturned in creating a perfect and all-rounded retirement portfolio for you.

You get Expert personalized Investment Advice

Go on creating wealth with our experts (CFP) Investment advice based on your retirement goals. It is ineffectual building a retirement plan if you don’t have the correct know how. We provide you the services of a Certified Financial Planner (CFP) to plan your retirement. Our planners are Subject Matter Experts in different financial avenues and will help you choose the best retirement plans as per your financial profile and your retirement needs.

We allocate dedicated Retirement Advisors to assist you

Our dedicated retirement advisor will make sure he is available for you, to handle all your financial queries anytime you want, as per your convenience any time of the day, every day.

Financial Planning

Make your money work for you. We provide customised financial planning solutions specific to your needs so that you invest in those avenues which meet your requirements and give you maximum returns.

What is Financial Planning?

Financial Planning is a holistic approach to decision making. Every financial decision has a ripple effect on your wealth. Planning not only helps to secure your wealth but enables you to understand in totality how each move is interlinked with other areas of finance. It facilitates easy monitoring and helps adapt to life changes without losing track of the goals.

Rethink what your money can do, if it is properly invested! We have subject matter experts who will understand your financial goals, and guide you with relevant investment choices. So put your trust in us and we will help you make the right choices.

Here is what we offer:

  • Goal Based Financial Planning

  • Our specific goal planning makes sure you meet each of your goals in timely manner. Our financial consultant will review your financial requirements, then create an investment plan which would be apt for you and provide you with ways to achieve these goals.

  • Investment Advisory Services

  • Without the correct knowledge in financial markets, you could get confused and could make wrong choices. Our financial consultant will help you in deciding suitable investment avenues to suit your goals keeping your risk appetite, financial goals, and investment horizon in mind.

  • Dedicated Advisor

  • Your financial health is important to us. We assign a dedicated and personalised advisor who makes sure he is available for you whenever you need.

Child Education

In today’s dynamic scenario, having a good education can help a person to become successful, informed and aware. As parents, we want the very best for our children - the best schooling, best opportunities in life, and so on. But you see, education is one of the best gifts your children can receive.

VBut education does not come cheap. Even if we want our children to have the best, many times we do not have the funds to support this want. And when we do, we shell out a large portion of our savings to make it possible.

The smart way to do this would be to have a financial plan and achieve this goal without stressing out!

It would be better to start this planning when your children are young. The earlier you start planning, the better. Especially, if you want your child to attend good institutions or study abroad. It is important to be aware that education costs are only on the rise.

Consider this example:

Mr. Murthy has a 3-year-old son, who will graduate in 15 years. Mr. Murthy wants his son to pursue engineering. If the cost of graduation in today's terms is Rs. 5 lakh, let’s ascertain how much it will cost to send his son to engineering college in 15 years?

Son's Age 3 years
Cost of Education in today's terms Rs. 5 lakh
Time left for Graduation 15 years
Inflation Rate 10% p.a.
Cost at time of Graduation course Rs. 20.88 lakh
Amount Mr. Murthy needs to invest per month Rs. 4,180

Why act now?

The more you delay in investing, the higher you will end up having to invest every month later on. Additionally, it will also reduce your ability to take risks. Your children are your world so plan wisely. By doing diligent research on the best child plans, you can ensure a comfortable and secure future for your children and avoid getting stressed about it in future. A good plan today is better than a perfect plan tomorrow. So do not delay and start preparing a fool-proof plan today.

LIC

Why is Life Insurance important?

Life Insurance is important at every stage of life. People think that Life Insurance must be bought only when one gets into middle age, which is a big myth. One needs to become aware that at every life stage, one has a set of primary needs that requires sufficient funds to fulfill them. This is where life insurance becomes one of the most important financial decisions. Doesn’t matter how much you earn, no one know what the future holds. Lots of people die prematurely every year from illness or accident and, if you happen to be the sole breadwinner in the family and were to pass away, it could have devastating consequences for your loved ones' ability to pay household expenses, debts and maintain their standard of living. Therefore the least you can do is to secure your family's financial future by buying a life insurance policy.

Apart from insuring you and your family against accidents and death, life insurance offers you many other benefits:-

1. Gives your family the much-needed financial security, life insurance could save the day for your surviving dependents.

2. Helps your family deal with financial liabilities, outstanding debt, loans, or any other credit will be taken care of if you happen to buy the right life insurance policy.

3. It would help you achieve your long-term goals such as buying a home, planning your retirement or even sponsoring your child’s further education.

4. If you buy the right insurance when you are very young, it can help you create an emergency fund for many of the goals you have in mind right from sponsoring your education, investing in some stocks and bonds, and so much more. Buying insurance is cheaper when you're younger.

5. Gives you Tax relief. You could save on taxes with insurance policies irrespective of what plan you buy. The premium you pay on an insurance policy is eligible for a maximum tax benefit of Rs 1.5 lakh under Section 80C, and for tax-free proceeds on death/maturity under Section 10 (D) of the Income Tax Act, 1961.

6. Life insurance policies run on uncertainties. You may be healthy now and paying a premium for life insurance may seem to be an added financial burden, but if you suddenly fall ill, you may not be allowed to buy a life insurance policy. Therefore, it is imperative to buy one early on in your life because it remains in force if your health deteriorates later on. Insurance companies allow you to attach certain riders or benefits to your existing or new policy which enhances the quality of your insurance.

7. Gives you peace of mind. Death is unavoidable. In the face of tragedy, the least you can do for your family is to secure their financial future. Even if it is a small policy, you know that you've done all you can to help them tide over difficult times.

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Will Writing

A will or testament is a legal document that expresses a person's wishes as to how their property (estate) is to be distributed after their death and as to which person is to manage the property until its final distribution. A Will can not only state your wishes regarding the distribution of your property, assets and belongings, but could also extend to the care of any minor children.

The testator, a person who makes the Will, must do so of his/her own free will, must be of sound mind, above 18 years of age on the date of making the Will. A will can be made with respect to movable/immovable property, over which the person has complete ownership, and which the person desires to be carried into effect after his/her death.

Will Writing is the first step towards ensuring a smooth succession, and helps to avoid disputes or conflicts amongst the family after the death of the testator. Will writing is governed by the applicable personal law of the testator.

Why writing a Will is important?

Writing a will is especially important if you have children or other family who depend on you financially, or if you want to leave something to people outside your immediate family. A will can help reduce the amount of Inheritance Tax that might be payable on the value of the property and money you leave behind.

Most of us do not have a Will and do not realize the financial chaos that our loved ones could be destined for in case of an unforeseen event. Will writing ensures that your hard-earned movable/immovable property is distributed to your dear ones (beneficiaries) as per your wish after your death.

Many of us refrain from writing a Will because we are of the notion that our property and assets will be passed on automatically to our spouse or children without any dispute. This is not so true in every case. This simple step will also help to take care of any disputes that may arise in your absence. Also, thinking about one’s death is not pleasant and thus best avoided. Though it is not pleasant to think about one’s mortality, preparing for a future devoid of conflict for your loved ones should be enough cause for you to write your Will without any delay.

We, at Chetan Financial Freedom, can help enable you to secure the lives of your loved ones by making informed decisions, especially financial ones, to avoid conflicts at a later stage. This includes making everyone aware about the importance of writing a Will.

Our Will format is simple and easy to follow, drafted by experienced legal experts and will help you write your Will in a systematic manner.

Interested? Leave the work to us? Call us to know more.

Tax Saving Bond

This investment option is ideal for conservative investors who want to invest without high risk, as tax-saving bonds are mid to long-term investment tools and come with a minimum lock-in period of 5 years.

While every taxpayer would like to save taxes, not every taxpayer is comfortable with the high risk of investment options that are eligible for tax deductions. Thus, to make sure that even risk-averse investors have several options to choose from, the Indian government has introduced many different types of investment plans, schemes, bonds, and more.

One of the most popular of them is tax-saving bonds. These are government-backed bonds that generate fixed interest income for the investors and are also eligible for tax deductions.

A special provision for tax saving bonds is offered, under Section 80CCF of the Income Tax Act. Under this, the investor gets the benefit of tax deductions up to Rs. 20,000. This way your taxable income gets reduced by Rs. 20,000 in a year. This deduction under section 80CCF is over and above tax deduction under section 80C that offers investors tax benefits up to Rs 1.5 lakh. Note that, the interest earned through the bond is taxable.

How Can You Save Tax with Tax-Saving Bonds?

Under Section 80CCF of the IT Act, the tax-saving bonds have special privileges that allow investors to reduce their income tax liabilities by up to Rs. 20,000 in a financial year. In other words, if you have already used other deductions and exemptions but still looking for ways to reduce your tax liabilities, you can reduce the same by up to Rs. 20,000 by investing in these tax-saving bonds.

The interest you earn from tax-saving bonds are not tax-exempt. Only the initial investment amount of up to Rs. 20,000 is eligible for a tax deduction in a financial year.

What is the Interest Rate and Maturity of Tax-Saving Bonds? The interest rate varies between the bonds. For instance, the 8% Savings Bond was a very popular tax-saving bond for investors in the 0% to 20% tax bracket. In 2018, it was replaced by the GOI 7.75% bond.

The Savings Bond had a maturity of 5 years. But the new GOI bond has a maturity of 7 years.

How to Invest in Tax-Saving Bonds? Call us to know more.

Corporate Bond

A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as ongoing operations, M&A, or to expand business. The term is usually applied to longer-term debt instruments, with maturity of at least one year. Corporate debt instruments with maturity shorter than one year are referred to as commercial paper.

Types of corporate bond funds:

There are broadly two types of corporate bonds a mutual fund invests in:

  • Top-rated companies which have incredibly high CRISIL credit ratings. These are generally top public sector companies and Navratnas
  • Companies having a slightly lower credit rating of AA

Benefits:

Corporate bond funds are debt funds that lend at least 80% of their money to companies with the highest possible credit rating. This rating is given only to companies that are financially strong and have a high probability of paying lenders on time.

  • Ideal for the money you don't need for 2-3 years
  • Funds in this category tend to deliver better returns than Bank Fixed Deposits of similar duration
  • Holding them for 3 or more years will give you tax-efficient returns as they qualify for indexation benefits

Interested? How to Invest in Corporate Bonds? Call us to know more.

Life Insurance

Why Life Insurance?

As at every life stage, everyone has a set of primary needs that requires sufficient funds to fulfill them. This is where life insurance comes into the picture- as it offers tailor made products to cover every aspect at different stages of life.

Life insurance is a must have for everyone. It is no more a luxury but a necessity. Hence it’s very crucial to have a complete understanding of what value a life insurance policy can bring into your life and that of your loved ones.

A life insurance policy is actually a contract with an insurance company. A lump sum amount is provided, in exchange for premium payments, known as the death benefits, to the nominees or beneficiaries upon the death of the insurer.

Benefits of Life Insurance

  • In case of an unfortunate event, you and your family are protected with a high risk cover

  • On event of sudden demise of a family member, leaving the dependents grief-stricken. During such situations they should not have to face financial worries. An adequate life cover ensures that one’s family is well taken care of in case of such incidents. The insurer pays up the bereaved family the sum assured along with any bonus or profits, as applicable

  • Tax Benefits - Under Section 80C of Income Tax Act, investments made in certain specified instruments are subject to tax rebate. Moreover, Section 80C is an effective way by which a salaried person can reduce his/her tax liability.

  • You can avail loan facility as per policy provisions to meet any emergencies. The loan amount can be taken in a percentage of the sum assured of your life insurance

  • Certain policies that offer money back benefits allows assured returns/income benefits which helps keep your family secure with regular and timely payouts. This income helps in meeting certain regular expenses like rent, bills, loans, etc.

  • Allows to meet specific expenses. As per your life stage and risk appetite, you can fix and meet all your financial goals whether it is your child’s education, wedding expenses, buying dream home or your retirement- all taken care of

  • Your money is invested in life insurance is safe and returns are paid back on time. It also fetches good returns as the money is returned to the policyholder/beneficiaries as sum assured either on completion of the policy term or death, whichever is earlier.

While choosing a life insurance, our subject matter expert will help you to map your needs and goals and help you buy the right option that suit you the best.

General Insurance

Insurance is an integral part of any sound financial planning but most people miss out on this aspect unless it’s a legal obligation, like motor insurance. Moreover, life insurance still enjoys little space in long-term planning but general insurance like a health insurance plan or something as important as a home insurance policy is done away with. This is basically due to lack of information and awareness. Here, we attempt to turnaround this very situation.

What is General Insurance?

A policy or agreement between the policyholder and the insurer which is considered only after realization of the premium. The premium is paid by the insurer who has a financial interest in the asset covered. The insurer will protect the insured from the financial liability. Having the right insurance cover gives you peace of mind as it provides financial support in case of contingencies.

General Insurance is basically a contract where the insurance company promises to pay an agreed amount of money to the other party, i.e. the person being insured, on the occurrence of a stated loss other than death. So it won’t be wrong if we say that any insurance contract that doesn’t come under the ambit of life insurance is termed as general insurance. There are multiple types of insurance policies such as health insurance, motor insurance, and travel insurance which one can choose to secure his/her valuables like home, vehicle, etc.

Importance of General Insurance

While a life insurance policy takes care of your family and loved ones when you’re not around, general insurance helps in leading a life which is risk-free. Below are few points elaborating the importance of general insurance:

  • To avoid car damage expenses – whenever there is an accident, fire or natural calamity, its repercussions could prove very costly

  • To cover hospital bills – any medical exigencies cost a lot of money

  • To secure property - to secure your property from unforeseen risks such as loss due to natural calamities, theft or fire incidents, to name a few

  • To secure business

We cater to our client’s needs for all kinds of General Insurance requirements which include:

  • Health Insurance

  • Motor Insurance

  • Travel Insurance

  • Home Insurance

  • Crop Insurance

  • Commercial Insurance

Interested? Call us to know more.

Health Insurance

Health insurance is the insurance which protects from any health emergencies & incurred hospitalization expenses. In this busy and hectic life everybody should have a health insurance policy which can be very useful in emergencies.

Ever increasing cost of Medical Treatments is becoming a formidable challenge. A good Health Insurance Cover for each family member has become most essential in today’s scenario. We can guide you to obtain a suitable Health Insurance Cover. We make sure our clients get the best suited online and offline Health Insurance products and also make sure there is continuous and full support in times of Claim Settlement. Bajaj Allianz, Aditya Birla Health Insurance and Religare Health are some of the leading brands we are partnered with.

Why do I need Health Insurance?

Hospitalization and treatment cost at hospitals have become very expensive. A hospitalization bill, even for simple illness like malaria can also run into lakhs. Cost of medicines and treatment have become un-affordable for many. Hence it is highly recommended to have health insurance for all members of the family as it provides the much-needed financial relief during the hospitalization so that you can focus on the health of your family member and hospitalization cost is taken care by your health insurance policy.

Benefits of individual health insurance:

There are many advantages of having individual health insurance policy. Take a look at some of the major benefits listed below:

Coverage for medical expenses: It protects you to a financial crisis when you are facing a health issue in life. It relieves you if the burden of the medical expense so that you can focus of recovering well.

Cashless Claim Service: Cashless hospitalization facility offered by health insurance companies, under an individual health policy, allows an individual to avail medical treatment without paying for the same to the hospital.

Hospitalization Daily Allowance: Some insurance companies pay a specific allowance to the insured for each day he/she spends in the hospital. If you are the primary earning member in your family, such an allowance proves to be very beneficial at the time of emergency.

Tax Benefits: The premium paid on a health insurance policy is eligible for deduction under Section 80D of the Income Tax Act. The amount of deduction available is up to Rs 15,000 for individuals or Rs 20,000 for senior citizens (aged above 65 years). Additionally an amount of Rs 20,000 is also available for exemption towards premium paid for dependent parents.

Interested? Why wait? Call us to know more.