Paisa Bazaar https://www.paisabazaar.com/learn Compare & Apply Wed, 16 Aug 2017 13:45:43 +0000 en-US hourly 1 https://wordpress.org/?v=4.7.2 Top 6 Credit Cards That Offer Amazing Cashback https://www.paisabazaar.com/credit-card/articles/17238-top-6-credit-cards-that-offer-amazing-cashback/ https://www.paisabazaar.com/credit-card/articles/17238-top-6-credit-cards-that-offer-amazing-cashback/#respond Wed, 16 Aug 2017 06:39:52 +0000 https://www.paisabazaar.com///17238-/ Cashback is one of the hottest trends nowadays, especially among online wallets. But did you know that credit cards have been offering this benefit, since the beginning? While only a few credit cards in India offer direct cashback, a number of them provide the facility of easily converting reward points into statement cash credit. The […]

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Cashback is one of the hottest trends nowadays, especially among online wallets. But did you know that credit cards have been offering this benefit, since the beginning?


While only a few credit cards in India offer direct cashback, a number of them provide the facility of easily converting reward points into statement cash credit. The rate of cashback offered also varies for different credit cards. Some offer cashback on all purchases while others give extra benefits on select spending like those at supermarkets or departmental stores. Whatever the case, cashback and reward-point-cash-credit are always better than the reward points that can only be redeemed in limited ways- after all who doesn’t like a credit on their monthly statement.


Here’s a list of the top 6 credit cards that give you superb cashback-
 

1- SBI Elite Credit Card

If you love a branded lifestyle, you will love SBI Elite Credit Card. The card offers exclusive benefits under SBI’s ‘Shop and Smile’ rewards program that is tailor-made to match the lifestyle preferences of its cardholders.


Welcome Bonus- With SBI Elite Card, you get a welcome e-gift voucher worth Rs.5,000. Choose from an array of lifestyle and travel brands including Marks and Spencer, Pantaloons, Shoppers Stop and Yatra.


Cashback Rate- SBI Elite Credit Card allows you to pay the outstanding amount on your statement with reward points, 4 Reward Points equal to Re. 1 in cash.


Rewards and Redemption- You can earn 2 Reward Points for every Rs.100 spent on your credit card. Earn 5 times more on departmental store, dining and international spends. Redeem your Reward Points on gift vouchers, electrical appliances, accessories, lifestyle products and much more. You can also earn 10,000 bonus reward points on spending Rs.3 Lakhs & Rs.4 Lakhs in one year; 15,000 bonus points on achieving annual spends of Rs.5 lakhs and Rs.8 lakhs respectively.


Other Perks- This credit card provides you complimentary Silver Membership to Club Vistara. You are eligible for Priority Pass Program that provides access to over 1000 airport lounges worldwide. Cardholders will also get exclusive concierge service for gift delivery, customized holiday packages, travel, movies & hotel reservations.
 

2- Citibank Cash Back Credit Card

If you love direct cashback more than redeeming reward points towards travel and dining, this credit card is perfect for you. Citibank Cash Back Credit Card lets you earn while you spend with its huge cashback benefits throughout the year.


Cashback Rate- You can enjoy 5% cashback on paying phone bills and booking movie tickets through your credit card. If you use Citibank Online Bill Pay facility to pay your utility bills, you can get another 5% cashback. All other spends qualify for 0.5% cashback. Cash credit in the above three categories is capped at Rs.100 per month for each category.


Redemption- The cashback is accrued whenever you use your credit card and it is reflected directly in your monthly statement as cash credit. Note that cashback is only offered in multiples of Rs.500. You can also calculate the amount you save through cashback using Citibank Savings Calculator.


Other Perks- Citibank Cash Back Credit Card is a contactless card which means that you can make payments simply by tapping the card on the POS terminals that accept contactless cards. Other dining, travel and easy EMI benefits available on Citibank credit cards will also be applicable on the Cash Back card.*
 

3- Amex Gold Charge Card

It rains rewards on American Express Gold Charge Card so it is best for those who like to splurge. Since it is a charge card and not a credit card, it offers greater flexibility in spending with no ‘pre-set limit’; spending limit depends on your financial habits and credit history. The card also charges an annual fee of Rs.1,000 (plus taxes) for the first year and Rs.4,500 (plus taxes) second year onwards. Features that make it a great cashback card are-


Welcome Bonus- Amex Gold Card offers 4,000 Bonus Membership rewards points on using the Card 3 times within the first 60 days. You can further earn 1000 reward points on completing 6 transactions each worth Rs.1000 or more. Cardholders can also get 5,000 Membership Rewards Points upon First Year Card Renewal on the payment of Annual Membership Fee.


Rewards and Redemption- You can earn 1 reward point for every Rs.50 spent on your card except for Fuel, Insurance, Utilities and Cash advances. These reward points can be redeemed under the 24k and 18k gold redemption categories-
 

  • 24k- Once you have 24,000 reward point balance, you are eligible to redeem it under the 24k category. The offers include Good Earth Gift Card worth Rs.13,000, MakeMyTrip Holiday Voucher, FitBit Alta Fitness Tracker and Amazon Gift Card worth Rs.11,000.
  • 18k- 18,000 reward point balance makes you eligible for the 18k redemption category which includes a WelcomHeritage Luxury Stay, Tanishq Voucher  and Bose Soundlink Color Bluetooth Speaker.

Cashback Rate- The reward points can also be redeemed as statement credit. 24k redemption category allows a cash credit worth Rs.10,000. Under 18k category, you can redeem the points for Rs.7,500 cash credit.


Other Perks- Some other privileges are also offered by Amex Gold Card such as discounts on MakeMyTrip, 20% off every time you dine at select restaurants, zero lost card liability and two supplementary gold cards without any additional charges.
 

4- HDFC MoneyBack Credit Card

This credit card by HDFC offers great perks for the shopaholics in the form of high reward points which can be redeemed as cashback against the outstanding amount. Here are a few features that make it a great addition to your wallet-


Cashback Rate- You can pay your outstanding amount with Reward Points on HDFC MoneyBack Card. 100 reward points equal to Rs.20 of cash credit.


Rewards and Redemption- You can earn 2 reward points on every Rs.150 spent on your card and the online spends are eligible for 100% more rewards. One must note that EasyEMI, e-wallet loading transactions, fees and charges and cash advances do not qualify for rewards. If a transaction is converted into SmartEMI, rewards will be reversed. Cardholders can redeem their reward points for exciting gifts, air miles and more. Reward points are only valid for 2 years from the date of accumulation and minimum 2,500 points are required for redemption.


Other Perks- There is zero liability on fraudulent transactions made on your HDFC MoneyBack credit card in case it is lost and you immediately report the loss. Also get 1% Fuel Surcharge waived off on fuel transactions and enjoy revolving credit on your credit card at nominal interest rate.
 

5- IndusInd Pinnacle Credit Card

Tailor-made for those with refined tastes, IndusInd Pinnacle comes with exclusive travel and lifestyle privileges. The card lets you earn higher reward points which can be redeemed as Cash Credits to pay off the outstanding amount on your card. Some important benefits of this credit card include-


Welcome Bonus- You can choose from a range of handpicked welcome gifts from-
 

  • Jet Airways- Avail 100% discount on base fair and airline fuel charge for a one way journey.
  • Oberoi Hotels- Make your hotel stay memorable and cheaper through IndusInd using your credit card welcome bonus
  • Genesis Luxury Vouchers- Enjoy a luxury retail access to 14 international brands through these luxury vouchers

Cashback Rate- This credit card allows you to convert your reward points into cash credit to pay off the outstanding amount at an exciting rate of Re.1 for 1 reward point. However, one should note that a maximum of 25,000 reward points can be redeemed in one statement cycle for Cash Credit option.


Rewards and Redemption- Cardholders can earn 1 Reward Point for every Rs.100 spent on a POS terminal and 2.5 Reward Points for every Rs.100 online spends. Online travel and airline transactions are excluded from e-commerce category for the purpose of earning rewards. You can choose from a range of other redemption options including Oberoi Hotels & Resorts Stay vouchers, Genesis Luxury Vouchers, Airline Miles and Indus Moments.


Other Perks- Customers can avail exclusive Pinnacle Concierge facility for flight booking, entertainment and sports boking, hotel reservation and more. Also, get access to 600+ lounges across the globe with a complimentary Priority Pass. Get access to VIP events like Art fairs, Biennales and important museum shows across the globe. Other benefits are also offered such as Buy one Get one on movie ticket booking on BookMyShow, complimentary golf games and lessons and an exciting array of lifestyle rewards.
 

6- Standard Chartered Manhattan Platinum Credit Card

This card provides you huge cashback on hard-to-avoid purchases like groceries from departmental stores and supermarket spends, giving you all the more reasons to use it. Some attractive benefits offered by this card include-


Cashback Rate- Enjoy 5% cashback on credit card spends in departmental stores and supermarkets like Food Bazaar, Big Bazaar, Reliance Fresh and more. Earn up to Rs.500 as cashback every month and Rs.150 per transaction. To be eligible for cashback, you must spend Rs.1000 or more per transaction.


Rewards and Redemption- Earn attractive reward points with you Manhattan Platinum Card. Enjoy 3-times more reward benefits when you pay for airline ticket reservation, dining, hotels and fuel. You can choose from a range of exciting redemption options for your reward points. Minimum 500 reward points are needed to avail redemption.

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Last Date to Link PAN with Aadhaar Extended to August 31 https://www.paisabazaar.com/financial-planning/news/17214-last-date-to-link-pan-with-aadhaar-extended-to-august-31/ https://www.paisabazaar.com/financial-planning/news/17214-last-date-to-link-pan-with-aadhaar-extended-to-august-31/#respond Mon, 14 Aug 2017 09:43:18 +0000 https://www.paisabazaar.com///17214-/ The last date to link Aadhaar number with Permanent Account Number (PAN) has been extended by the Central Board of Direct Taxes from August 5 to August 31, 2017.   Earlier, the Central government had made linking the PAN with Aadhaar No. mandatory if you are filing your Income Tax Returns or carrying out a […]

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The last date to link Aadhaar number with Permanent Account Number (PAN) has been extended by the Central Board of Direct Taxes from August 5 to August 31, 2017.
 

Earlier, the Central government had made linking the PAN with Aadhaar No. mandatory if you are filing your Income Tax Returns or carrying out a bank transaction worth over Rs. 50,000.
 

From an interview with a senior IT Dept. official, PTI reported that as per the department’s records, by August 5th more than 9.3 Crore citizens had linked their Aadhaar with PAN and that this no. is expected to grow with the deadline extension.

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How to Download Your e-Aadhaar Card https://www.paisabazaar.com/financial-planning/articles/17209-how-to-download-your-e-aadhaar-card/ https://www.paisabazaar.com/financial-planning/articles/17209-how-to-download-your-e-aadhaar-card/#respond Mon, 14 Aug 2017 08:15:48 +0000 https://www.paisabazaar.com///17209-/ A downloaded copy of Aadhaar or e-Aadhaar, from the UIDAI portal, is as a valid as the original Aadhaar card. If you have applied for Aadhaar but have not received the original card at your address, you can download e-Aadhaar from UIDAI website. But before this, you must check the application status to make sure […]

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A downloaded copy of Aadhaar or e-Aadhaar, from the UIDAI portal, is as a valid as the original Aadhaar card. If you have applied for Aadhaar but have not received the original card at your address, you can download e-Aadhaar from UIDAI website. But before this, you must check the application status to make sure your Aadhaar Number is generated.


How to check the status of your Aadhaar?

Follow the steps given below to check the status of your Aadhaar-


Step 1- Visit https://resident.uidai.gov.in/check-aadhaar-status


Step 2- Enter the ‘Enrolment ID’ received at the time of application. The ‘Enrolment ID’ consists of the ‘Enrolment Number’ and the ‘Date and Time Stamp’ in the format- dd/mm/yy:hh/mm/ss. Make sure you enter all the numbers correctly.


Step 3- Enter the Captcha Code and then click on ‘Check Status’.


If your Aadhaar is generated, you can either download your e-Aadhaar or get the 12-Digit Aadhaar Number on your registered mobile number.
 

How to download Aadhaar?

The process to download your e-Aadhaar is easy and free of cost. Just follow the steps given below-
 

Step 1- Go to the official website of UIDAI and click on ‘Download Aadhaar’.
 

Step 2- If you know your 12-digit Aadhaar Number, click on Aadhaar next to ‘I have’.
 

Step 3- Give the required details like Full Name, Pin Code and your registered Mobile Number.
 

Step 4- Fill in the Captcha Code.
 

Step 5- Click on ‘Get One Time Password’. This will send an OTP to your registered Mobile Number.
 

Step 6- Fill the OTP received in the box provided and click on ‘Validate & Download’.


If the OTP filled by you is correct, the digital copy of your Aadhaar will be shown. It is a Password protected PDF file and the password is the pin code of your area as mentioned in your Aadhaar. You must make sure that your computer system has Adobe Reader installed in it; otherwise you might not be able to open the file.


In case you do not know your Aadhaar number, you can download it by using your UID or Enrolment ID. If you don’t know either of these, there is still a way to download it but for that your mobile number must be registered with your Aadhaar.
 

How to know your UID Number?

To download your Aadhaar, you will need the Enrolment ID also known as UID. Follow the steps given below to retrieve your UID-
 

Step 1- Go to the UIDAI Official Website. (https://resident.uidai.gov.in/find-uid-eid)
 

Step 2- On the left panel, select ‘Enrolment ID’ below the ‘You want to retrieve your lost’ line.
 

Step 3- Fill in your personal details like Full Name, Email and Mobile Number. Make sure that you have provided the same mobile number and email that was registered with Aadhaar.
 

Step 4- Fill in the Captcha Code.
 

Step 5- Click on ‘Send one time password’.
 

After this, an OTP will be sent to your registered mobile number. Use this OTP to fill in the box given on the right panel and click on ‘Verify OTP’. If the OTP is correct, you will get your UID which you can later use to download your e-Aadhaar.


One can also use the mAadhaar mobile application and carry Aadhaar everywhere. You must first link your mobile number to your Aadhaar to make use of this facility. The app can be downloaded from Google Play Store. To start with the application, you will get an OTP on your registered mobile number for verification. Once you’re in, the app will require some basic profile details and you will also have to set up a password. This password will be needed every time you log in.


After your information has been synced, you can use it for a lot of purposes, such as-
 

  • Secure your authentication by locking your biometric data
  • Instead of SMS based OTP, generate Time Based One Time (TOTP) password which is more secure
  • Share the eKYC data using NFC, QR code, Bluetooth, email, etc.


So, whether you need to submit Aadhaar with an online form or a printed copy for offline purposes, the UIDAI official website has you covered.

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How to Locate Aadhaar Enrolment Centres Near You https://www.paisabazaar.com/financial-planning/articles/17201-how-to-locate-aadhaar-enrolment-centres-near-you/ https://www.paisabazaar.com/financial-planning/articles/17201-how-to-locate-aadhaar-enrolment-centres-near-you/#respond Mon, 14 Aug 2017 08:10:55 +0000 https://www.paisabazaar.com///17201-/ Now that the government has made Aadhaar mandatory for financial transactions and filing Income Tax Return (ITR), it has become a ‘must have’ document for everyone. If you still have don’t have an Aadhaar, you must visit an enrolment centre and apply for it immediately.   How to Locate Aadhaar Enrolment Centres?   Currently, there […]

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Now that the government has made Aadhaar mandatory for financial transactions and filing Income Tax Return (ITR), it has become a ‘must have’ document for everyone. If you still have don’t have an Aadhaar, you must visit an enrolment centre and apply for it immediately.
 

How to Locate Aadhaar Enrolment Centres?
 

Currently, there are more than 25,000 Aadhaar enrolment centres across the country. To make access to these centres  easier for the people, the UIDAI has asked public sector and private sector banks to set up Aadhaar Enrolment facility in at least one out of 10 branches. If this is implemented, there will be 12,000 more enrolment centres soon.
You can easily find Aadhaar Enrolment Centres near you by visiting the UIDAI website – https://uidai.gov.in/
Go to the ‘Aadhaar Enrolment’ section under ‘Aadhaar Online Services’ and follow the steps given below.
 

To search by Area
 

UIDAI offers you the option to search for Aadhaar Enrolment Centres by state.
 

  • Select your state from the drop down list.
  • Next, select your district from the list.
  • Choose your sub-district, if any.
  • Move to the next selection- Village Town City (VTC). Select the area for which you need the information.
  • Put the captcha code and click on ‘Search’.
     

To search by Pin Code
 

You also have the option to search for Aadhaar Enrolment Centre by Pin Code. Just put the Pin Code of your area in the box provided, put the captcha code and click ‘Search’. The list of all enrolment centres coming under the purview of that Pin Code will appear on the screen.
 

To search by Name
 

To make it easier, UIDAI has also offered the facility to search for the Aadhaar Enrolment Centres in your area by writing the name of the locality in the box provided. Just put the area name, captcha code and click search. Make sure that you spell the locality name correctly.
 

The list of Aadhaar Enrolment Centres will include the following information-
 

  • Registrar Name/Agency Name
  • Complete Address of the Centre
  • Contact Person Mobile Number               
  • Last Update Date (DD/MM/YYYY)            
  • Centre Type      
  • Total Enrolments in last 30 days
  • Location on Map
     

When you visit the enrolment centre, make sure you have all the necessary documents of identity and address verification.
Here’s the list of documents that are accepted as valid ID and Address proof-
 

Identity Proof
 

Documents that work as identity proof include Passport, PAN Card, Ration/ PDS Photo Card, Voter ID, Driving License, Government Photo ID Cards/ service photo identity card issued by PSU, NREGS Job Card, Photo ID issued by Recognized Educational Institution, Arms License, Pensioner Photo Card, Freedom Fighter Photo Card, Kissan Photo Passbook, CGHS / ECHS Photo Card, etc.
 

Address Proof
 

Documents that work as address proof for Aadhaar application include Passport, Bank Statement/ Passbook, Post Office Account Statement/Passbook, Ration Card, Voter ID, Driving License, Government Photo ID cards/ service photo identity card issued by PSU, Electricity Bill (not older than 3 months), Water bill (not older than 3 months), Telephone Landline Bill (not older than 3 months), Property Tax Receipt (not older than 1 year), Credit Card Statement (not older than 3 months), etc.

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Indians Prefer Net Banking Over Mobile Wallets: Report https://www.paisabazaar.com/financial-planning/news/17166-indians-prefer-net-banking-over-mobile-wallets-report/ https://www.paisabazaar.com/financial-planning/news/17166-indians-prefer-net-banking-over-mobile-wallets-report/#respond Fri, 11 Aug 2017 13:28:43 +0000 https://www.paisabazaar.com///17166-/ According to a recent report on retail banking report submitted by ET Wealth, Indians opt for net banking as their preferred payment mode over credit and debit cards. As per the report, 33% of urban internet users prefer net banking, 25% prefer to use debit card in order to make online transactions, 23% prefer credit […]

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According to a recent report on retail banking report submitted by ET Wealth, Indians opt for net banking as their preferred payment mode over credit and debit cards. As per the report, 33% of urban internet users prefer net banking, 25% prefer to use debit card in order to make online transactions, 23% prefer credit cards and only 8% prefer cash on delivery. As far as mobile wallets are concerned, only 5% urban internet users prefer them to make online transactions.
 

After the government announced demonetization of Rs. 500 and Rs. 1000 notes last year, there was a huge surge in transactions on mobile wallets. Though transactions through mobile wallets have increased by 9 times in the last two years, the recent report shows that there is still a long way for mobile wallet.
 

Experts believe that with the launch digital payment apps like UPI (Unified Payment Interface) and BHIM (Bharat Interface for Money), it is the onset of another era in the field of digital payments.

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PF Account will be Transferred Automatically on Job Change Soon https://www.paisabazaar.com/financial-planning/news/17132-pf-account-will-be-transferred-automatically-on-job-change-soon/ https://www.paisabazaar.com/financial-planning/news/17132-pf-account-will-be-transferred-automatically-on-job-change-soon/#respond Fri, 11 Aug 2017 11:00:58 +0000 https://www.paisabazaar.com///17132-/ From next month, your PF account will be automatically transferred when you switch your job. According to a report in The Times of India, if you have a verified Aadhaar card, your PF account will be transferred without any application, if you change your job and even move to anywhere in the country.   Premature […]

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From next month, your PF account will be automatically transferred when you switch your job. According to a report in The Times of India, if you have a verified Aadhaar card, your PF account will be transferred without any application, if you change your job and even move to anywhere in the country.

 
Premature account closure is one of the major challenges faced by the Employees’ Provident Fund Organisation (EPFO). The automatic transfer of PF accounts on job change is one of the measures that will help EPFO to deal with the issue.
 

"Now we have made Aadhaar compulsory for enrolment. We don't want accounts to be closed. The PF account is the permanent account. The worker can retain the same account for social security," Chief Provident Fund Commissioner V P Joy said said, according to the report in the daily.

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WhatsApp to include UPI-based transactions in its latest update https://www.paisabazaar.com/financial-planning/news/17057-whatsapp-to-include-upi-based-transactions/ https://www.paisabazaar.com/financial-planning/news/17057-whatsapp-to-include-upi-based-transactions/#respond Thu, 10 Aug 2017 09:53:03 +0000 https://www.paisabazaar.com///17057-/ WhatsApp, the Facebook-owned mobile messaging platform, is working to provide the feature of instant money transfer to its users, based on the UPI platform. According to WABetaInfo, a blogging website, WhatsApp will include bank-to-bank money transfer in its new version “2.17.295”.   Under the Google Play Beta Program, the app is mentioned as “WhatsApp Payments: […]

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WhatsApp, the Facebook-owned mobile messaging platform, is working to provide the feature of instant money transfer to its users, based on the UPI platform. According to WABetaInfo, a blogging website, WhatsApp will include bank-to-bank money transfer in its new version “2.17.295”.
 

Under the Google Play Beta Program, the app is mentioned as “WhatsApp Payments: the immediate bank to bank transfer with UPI”. However, the official WhatsApp Payments android app is still under development.
 

UPI was launched by the National Payments Corporation of India (NPCI) in 2016. It is currently regulated by the Reserve Bank of India (RBI). Users can transfer funds instantly from one bank account to another with the help of UPI.
 

As per media reports, Whatsapp has been in talks with NPCI and many banks to become a part of their initiative. Mobile messaging applications like WeChat and Hike Messenger already support UPI-based transactions.
 

UPI has already facilitated 10 million transactions by June 2017 which is 10 times more than that was done by August 2016. UPI was supported by 21 banks when it started operations and now more than 50 banks have enabled transactions based on this platform.

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7 Advantages of Investing in Mutual Funds https://www.paisabazaar.com/mutual-funds/articles/16985-advantages-of-investing-in-mutual-funds/ https://www.paisabazaar.com/mutual-funds/articles/16985-advantages-of-investing-in-mutual-funds/#respond Thu, 10 Aug 2017 07:30:10 +0000 https://www.paisabazaar.com///16985-/ When it comes to generating savings and making investments, there are plenty of schemes out there for you to choose from including mutual funds, fixed deposits, stocks, and bonds, etc. Among these, mutual fund investments have emerged as one of the most popular routes in recent times. These schemes are often classified on the basis […]

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When it comes to generating savings and making investments, there are plenty of schemes out there for you to choose from including mutual funds, fixed deposits, stocks, and bonds, etc. Among these, mutual fund investments have emerged as one of the most popular routes in recent times. These schemes are often classified on the basis of their potential risk and this usually corresponds to the expected rate of return. Low-risk schemes offer lower but relatively consistent returns while high-risk investments have the potential of providing higher returns to the investor.
 
Thus, on the one hand, you have equity stock investments that represent high risk- potentially high return investments, while on the other hand you have fixed deposits that represent low risk-low return investments. Fortunately, modern day investors have the choice of investing in mutual funds of various types, which provide a unique balance of potentially high returns, while being considerably less risky than stock investments in the long term.
 
Mutual funds have gained substantial popularity in the past few years, buoyed by their consistent performance at least partially due to the liquidity-driven rally in equity markets not just in India but also globally. Thus whether you are a novice or an experienced investor, you can start investing in mutual funds today and watch your wealth grow steadily if you are in for the long haul. In fact, as per historical records, equity mutual funds have provided average annual returns of around 15% in the medium to long term.
 
Here are the top 7 advantages of investing in mutual funds to help you decide in favour of investing in these schemes.
 

Superior Diversification

 
If you invest directly in equity stocks, you can manage to be invested in a limited number of companies till you run out of investment capital. When you put your money in mutual funds, you immediately gain access to a much wider range of stocks that provide much greater diversification than an individual investor’s portfolio. Thus your mutual fund account potentially grants you access to hundreds of stocks without the need to select and purchase them individually. This higher degree of diversification reduces exposure to a particular sector and thereby reduces the overall volatility of the investor’s portfolio.   
 

Professional Management and Oversight

 
It can be tough to run your business or do justice to your day job while monitoring the performance of your stocks unless of course you are closely associated with the financial markets. In case, active portfolio management is not your forte or you are a stock market novice, take the safer route and make your equity investments through an equity mutual fund. Mutual funds are professionally managed by fund managers who have years of relevant financial market experience and they are supported by a team of subject matter experts who help pick investments and strategies that help maximize profits for the scheme’s investors.
 

Mutual Funds


Flexible Investments

 
It is not essential to invest huge sums of money in mutual funds. It is possible to start with a single investment of as low as Rs. 500 and then increase your investments at a later date. However, if you want to capitalize on the performance of the mutual fund in the long term, you may consider making larger investments. You also have the option of choosing between 2 different investment styles – lump sum and SIP investments. In the case of a lump sum, you pool your capital and invest in the form of a large single investment at an opportune moment. A SIP is a smaller investment made at regular intervals, usually a month, over a period of time in a mutual fund of your choice. The SIP route is ideal for investors seeking a disciplined approach to making mutual fund investments.  
 

Tax Benefits

 
Investments in a type of equity mutual funds – the Equity Linked Savings Scheme (ELSS) qualify for tax deduction benefits of up to Rs. 1.5 lakhs under Section 80C of Income Tax Act 1961. Moreover, if you invest in equity mutual funds, you can get tax-free returns in the form of zero long term capital gains when you hold your units for a year or more from their date of allotment. Short-term capital gains on equity funds are, however, taxable at the rate of 15% of the total gains from the investment. In the case of debt funds, you are liable to pay both short term and long term capital gains whether you take indexation benefit or not.
 

Higher Liquidity

 
One of the biggest reasons why mutual funds remain a hot favourite amongst all kinds of investors is that an investor can get in and out of the market with relative ease. This is especially true in the case of debt funds many of which have zero entry and exit loads and can be redeemed easily as and when you need them. Moreover, a few fund houses also have unique schemes that allow benefits such as instant redemption and debit card withdrawal of your mutual fund investment in case of emergencies. This is a contrast to popular fixed rate alternatives such as fixed deposits that have high premature withdrawal charges.  
 

Low Transaction Charges

 
When investors buy multiple securities to diversify their investments they are liable to pay separate securities transaction charges for each transaction. This can add up to a substantial amount and impact the investor’s returns negatively in the long term. In comparison, when you buy mutual funds, the investor gets the same or greater level of diversification without having to pay multiple securities transaction charges. In the case of mutual fund fees such as securities transaction charges as well as all fund management charges are represented by the fund’s expense ratio, which is much lower than the cumulative individual securities transaction charges that an individual is liable to pay.
 

Transparency of Investments

 
Some novice investors shy away from mutual fund investments because they are ignorant of the fact that mutual funds are strictly regulated and highly transparent. Mutual funds are subject to numerous regulatory requirements that are designed to make sure that they operate in the best interest of the investors. The fund houses or Asset Management Companies (AMCs) are regulated and closely monitored by watchdogs such as the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI). As per current mandate, fund houses are required to publish data regarding all of their funds as well as distribute their fund information freely for the benefit of various user groups including existing and prospective investors, analysts, etc. This feature is not available as of now with any other investment route ranging from PPF and EPF to ULIPs and NPS.

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Aadhaar May Soon Be Mandatory for Mutual Fund Transactions: ET Report https://www.paisabazaar.com/mutual-funds/news/17019-aadhaar-may-soon-be-mandatory-for-mutual-fund-transactions/ https://www.paisabazaar.com/mutual-funds/news/17019-aadhaar-may-soon-be-mandatory-for-mutual-fund-transactions/#respond Thu, 10 Aug 2017 06:45:44 +0000 https://www.paisabazaar.com///17019-/ Aadhaar, the UIDAI issued biometric identity card, may soon become a mandatory requirement for key financial transactions such as share trading and mutual fund purchases according to a recent report by the Economic Times. This change proposed by the market watchdog SEBI (Securities and Exchange Board of India) and the Government of India is designed […]

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Aadhaar, the UIDAI issued biometric identity card, may soon become a mandatory requirement for key financial transactions such as share trading and mutual fund purchases according to a recent report by the Economic Times. This change proposed by the market watchdog SEBI (Securities and Exchange Board of India) and the Government of India is designed to curb illegal practices such as conversion of black money to white through the equities market. As per current rules, PAN is the only compulsory proof required for trading in shares, while Aadhaar may be used for eKYC (electronic KYC) purposes by individuals seeking to invest in mutual funds.

 

According to ET sources familiar with the development, the decision is being taken after the Government realized that PAN information by itself is not sufficient to resolve the issue of tax evasion through stock markets. The report also mentions that top SEBI officials have informally contacted a handful of securities market intermediaries to seek out their opinions with respect to implementing this change. This report comes on the back of a recent clampdown on tax evasion through shell companies by SEBI and RBI, which seems to have spooked D-Street this week.

 

Incidentally, the suggestion of using Aadhaar as a mandatory requirement for share market investors has been around a while with many brokerages championing the cause. According to some brokers, some unscrupulous individuals have multiple PAN, which allows them to create multiple DEMAT accounts that can be used to evade taxes or convert undisclosed income into white money. The introduction of Aadhaar and its biometric database as a mandatory requirement would help curb or even eliminate such illegal practices. If a decision in favour of this change actually happens, it could potentially change India’s brokerage landscape and significantly impact the stock trading industry as a whole. 

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How to Enrol Children For Aadhaar? https://www.paisabazaar.com/financial-planning/articles/16960-how-to-enrol-your-children-for-aadhaar/ https://www.paisabazaar.com/financial-planning/articles/16960-how-to-enrol-your-children-for-aadhaar/#respond Wed, 09 Aug 2017 11:42:48 +0000 https://www.paisabazaar.com///16960-/ Aadhaar, today, has become an invaluable document these days. Along with being a valid and widely accepted identity and residence proof, it has also become mandatory to conduct financial transactions. While most adults in the country have enrolled themselves, parents can also get their children part of the Aadhaar process to save themselves from future […]

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Aadhaar, today, has become an invaluable document these days. Along with being a valid and widely accepted identity and residence proof, it has also become mandatory to conduct financial transactions. While most adults in the country have enrolled themselves, parents can also get their children part of the Aadhaar process to save themselves from future hassles."
 

Things to Know About Aadhaar for Children

Let us go through a few points that you should know before you apply for your child’s Aadhaar:

  • Your child is eligible for Aadhaar once he attains one year of age.
  • No biometric data is collected in case the child is below 5 years of age. Fingerprints and other biometric details may change completely in case of small children. Thus their biometric data is not collected initially.
  • When the child becomes 5 years old, his biometric details such as fingerprints, iris scan and photograph is taken and linked with his Aadhaar. Aadhaar number once assigned does not change even in case of children.

After the child attains 15 years of age, his biometric data is taken once again and this data remains permanently attached with the Aadhaar.
 

aadhar card minor

 

How to Apply for Aadhaar for Children?
 

For Children below 5 years of Age
 

  • Go to Aadhaar Enrolment Centre and fill the Aadhaar Enrolment Form. Enclose your Aadhaar card and your child’s birth certificate. Take the original documents as well for verification purpose.
  • If the child’s age is below 5 years, no biometric data will be recorded and only photographs will be required.
  •  The child’s Aadhaar will be linked with your UID. The child will have to provide his biometric data that include fingerprints of all ten fingers, iris scan and photograph once he becomes 5 years old.
  • In this case, it is mandatory for parents to have Aadhaar card.
  • The card issued for minors below 5 years of age is blue in colour.

 
For Minors above 5 years of Age
 

  • For children above 5 years of age, parents have to enclose the birth certificate and the school’s identity card or a bonafide certificate on the institution’s letterhead along with the Enrolment Form.
  • Your child’s fingerprints, iris scan and photograph will be taken at the Aadhaar Enrolment Centre. These details will be updated again when the child turns 15.
  • Parents will have to furnish their Aadhaar card as well.
  • If at a later stage in life, when fingerprints and other biometric details do not match, the applicant can get these details updated.

Documents Required for Minor Aadhar Card

There are not many documents required for their kid’s Aadhaar enrolment. Guardians have to provide the following four documents to get their child enrolled with Aadhaar:

  • Birth certificate of the child
  • Aadhaar card details of the child’s parents
  • Address proof of the child’s parents
  • Identity proof of the child’s parents

Why Children Need Aadhaar?

Aadhaar can be very useful for your child even if he has not turned 18. Below mentioned are a few benefits of having Aadhaar card:

  • Identity Proof – Aadhaar is used as a proof of identity by people of all ages. Minors can also avail this facility to establish their identity in railway and flight bookings, school admissions, etc. It can also be used to get other government documents made such as the voter ID card, driving licence, PAN card, etc. once the person attains 18 years of age.
  • For opening a minor bank account – Aadhaar can be used for opening a minor bank account for your child. Most banks today open bank accounts by accepting Aadhaar as the proof of identity and residence. The child also has to provide ID proof and birth certificate but if birth certificate is not present, Aadhaar can be used in its place. However, the guardian’s Aadhaar is mandatory for opening a minor bank account.
  • For investing in mutual funds – Aadhaar can also be used for mutual fund investments. Normally, the birth certificate of the child is required but many funding companies accept Aadhaar as well.

For Government subsidies – The government has made it compulsory for children to have Aadhaar card for mid-day meals across the country. Many government scholarship schemes also require students to furnish their Aadhaar when they apply for them.

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