If you have purchased BTC from Zebpay or Pocketbits, it is always safer to transfer the entire amount to your Coinbase account. If you do not have any account with Coinbase, I strongly recommend you to sign up with them. You will get 10 USD in your account by signing up with this link (only if you are from the US and trade 100USD Bitcoin with them). If you do not want it, you can directly head over to Coinbase.com.
Bitcoins has already been a success. It is now time for ETH to rise and it has been touching a new high almost every new day. 3 months back the price of ETH was below 6,000 INR. However, it is currently trading at 16,000 INR.
ETH vs BTC: Head to Head Comparison
Last 1 Month Comparison
BTC Last 30 Days Price: 1,00,000 to 1,63,000 INR
Ethererum was launched on May, 2015. Their blockchain went live on 30th July 2015. But it was only by 2016, Ethereum started getting notable media coverage.
It was spring, 2016. Visionaries saw ETH as the world computer that could transform the world. These visionaries had already seen the growth that you and I are seeing today. Seeing the enormous possibilities, they invested their money in ETH.
Investing in Bitcoins is a hot topic now. It is gaining a lot of traction in the Indian market. And why not, the price in BTC has almost doubled in less than a month. With the increase in the price of 1 BTC, people also started investing in other cryptocurrencies, which I will talk about in my later posts.
I have written a couple of answers on Quora on how to choose the best stocks in 2017 which you can read more about it here – Link 1.
A week back, when I was doing a research on finding some new stocks, I found some really interesting names that can get you some good money in short term and long term.
Most probably, you may not have heard about these stocks but their performance have been really great in the past and have been giving good results lately.
ICICI PPF Account opening is an easy and quick process. With benefits like complete tax exemptions on the returns and PPF being a long-term government initiated scheme, authorized banks provide PPF account opening schemes. ICICI Bank is one amongst those banks who have been given the authorisation by the Ministry of Finance to allow customers to open a PPF account.
General Benefits of PPF account
A Public Provident Fund Account has many benefits for an individual who has opened an account. The generalized advantages of the scheme are as follows:
- Good and almost constant interest rates.
- A beneficial long-term investment option for a smooth retirement.
- Low minimum initial investment.
- Complete exemption from Income Tax under Section 80C.
Eligibility Criteria to Open A PPF Account At ICICI Bank
There are few set norms regarding a PPF account for all authorized banks. ICICI bank also has the similar rules. They are as follows:
- Only Indian citizens can open a PPF account.
- An individual can have only one PPF account.
- A PPF account can be opened for a minor by parents or legal guardians. Grandparents cannot open a PPF account for a minor grand-child if they are not the remaining guardians.
Documents Required To Open A PPF Account At ICICI Bank
ICICI Bank requires certain documents related to opening a PPF account for individuals. These documents are to be submitted as a formality and proof while applying for initiating a PPF account. Given below are the set of documentation required for individuals who wish to open a PPF account.
For individuals having less than five years of transactions with ICICI Bank:
- Submission of a filled Form A (Form for PPF Application)
- Recent passport sized photographs
- One copy of your PAN card.
For individuals having greater than or equal to 5 years of transactions with ICICI Bank:
- Form A filled with required details.
- Recent passport sized photographs.
- One copy of PAN Card.
- Any residential proof document.
PPF Account Benefits for ICICI Bank Account Holders
There are certain benefits that can be availed by individuals who have opened a PPF account in ICICI Bank. They are as follows:
- Funds can be transferred easily to a savings banks account which is linked to PPF Account.
- Sends regular updates and instructions to ensure that an individual invests at the right time.
- An online portal is made available to view PPF account details.
Pradhan Mantri Jan Aushadhi Scheme was introduced to promote generic medicines that are available at affordable prices rather than the expensive ones frequently prescribed. Generic medicines are those who have equivalent effects and chemical composition as of their highly expensive substitutes. Thus Jan Aushadhi is a health plus social reform scheme which would enable all the citizens of India to avail medicinal help in the case of health deterioration. The scheme aims to benefit both the pharmacist and the customers.
Jan Aushadhi Scheme: Administration, Quality, Safety
The Indian Department of Pharmaceuticals is the main monitoring body of the Jan Aushadhi Scheme. This department has set up an administrative body separately to carry out all the proceedings of the scheme. The administrative body is known as the Bureau of Pharma Public Sector Undertakings of India(BPPI). BPPI is responsible for promotion, quality checking and supply of the generic medicines under the Jan Aushadhi Scheme.
As for the quality of medicines, it will be thoroughly tested under NABL certifications. The batches of generic medicines will be produced by private suppliers in a completely monitored manner to ensure the production safety. Moreover, the rigorous testing would also ensure that the generic medicines are as effective as their expensive substitutes. A website has been launched where customers can view all the Jan Aushadhi medicines that have been manufactured.
How To Open A Jan Aushadhi Store: Eligibility, Other Processes
A pharmacist needs to fulfill certain eligibility requirements to open a Jan Aushadhi store. An application will be accepted by the government only if it follows certain requirements. They are as follows:
- The applicant for opening a Jan Aushadhi store must be an individual capable enough to provide their property to set up the store. Leased or rented properties also fall under this category.
- When the application for Jan Aushadhi is made, the applicant must not be employed at any other organization.
- The applicant must secure a license for sale under a recognized and authorized body. In short, the applicant must possess a Retail Drug License.
- Applicants for a Jan Aushadhi store must have all their monetary statements updated for a duration of three years. Their financial accounts must be audited along with a transparent documentation stating their bank account details.
The above eligibility criteria being fulfilled, the State Health Department must be contacted to enable the procedure to commence a Jan Aushadhi store. Preferably these stores will be in proximity to hospitals and other health clinic facilities. To promote the sale of Generic medicines from these stores, the hospital doctors and other medical assistants will be instructed to prescribe those particular medicines.
How Successful has been Jan Aushadhi Scheme
The Government of India has extended a budget of 2 Lakh INR along with an extra 50,000 INR for hardware installment and other infrastructural developments. As per the set norms, the Jan Aushadhi Stores must sell a generic medicine at a discount of 16%. Also, the government has promised financial incentives to Jan Aushadhi Store owners based on the total number of generic medicines sold. The number of active Jan Aushadhi stores are 87 as of now. An entire updated list along with the locations have been provided in the official website of Jan Aushadhi Scheme. The timing for a Jan Aushadhi store is from 8 a.m. to 8 p.m.
The Jan Aushadhi scheme is flexible in every way. Thus if followed in a well-planned manner it would go a long way in helping the citizens of India as far as the sale of medicines is concerned.
To ensure a secure future for ourselves, we indulge most of our time in deciding the right kind of investment. An investment which has maximal return rate at low risk with an additional bonus of tax saving is given the greater preference. Here, we have compared PPF and Fixed deposits, two of the most common investment options, to find out which is a better investment option and why.
PPF vs Fixed Deposit: Tax Benefits
As far as tax benefits are considered both PPF and Fixed Deposit are liable to a tax deduction of INR 1.5 Lakh under Section 80C. Thus, when considering a scenario of PPF vs. Fixed Deposits, an informed choice should be made, reviewing all other factors.
Fixed Deposits vs PPF: Ease
People do not like to go with policies with complicated/complex account opening process. However, both FD and PPF can be opened online or at a bank with the same ease. Here, both of them score equal marks.
PPF vs. Bank Fixed Deposit: In Terms Of Lock-in Period
Fixed Deposits have a maturity period set by the beneficiary of the Fixed Deposit account. The duration or lock in period of fixed deposit can be anywhere between 5 to 10 years. PPF, on the other hand, has a fixed maturity period of 15 years. The sum invested in PPF is locked for 15 years and can only be withdrawn completely after completion of the time period. Fixed Deposit is more flexible in terms of offering the account holder an advantage to choose the duration of the investment.
PPF vs. Fixed Deposits: Initial Investment Amount
In the case of Fixed Deposit, there is no maximum limit for the initial investment amount. Banks and companies accept a large investment amount as per the present policy. The minimum amount needed to start a Fixed Deposit is 1000 INR.
PPF, on the other hand, is a limited investment amount per annum. The amount should not exceed a maximum of 1.5 Lakhs for PPF. The minimum amount that needs to be invested, however, is 500 INR per year.
PPF vs. Bank FDs: Rate of Interest
Fixed Deposit is either a Bank Fixed Deposit account or Company Fixed Deposit. The rate of interest on Bank Fixed Deposits depends on the beneficiary’s bank return rate. Thus, when investing in fixed deposits, there is a range of choices offered to an individual regarding different interest rate. Fixed deposits come with marginal or no risk factor.
When it comes to PPF, it is a government monitored investment. The return rate is fixed by the government for each financial year.
It is seen that the rate of interest offered by PPFs is slightly better than Fixed deposit returns. So, return wise, I would any day prefer PPF over any Fixed deposit scheme.
However, when it comes to time period/lock-in period, Fixed deposits are a better form of investment. You do not need to wait for 15 years to withdraw your amount.
PPF vs FD: Withdrawal Before Maturity
Fixed Deposits have a permanent lock-in period as set by the beneficiary of the account. So withdrawal before maturity is liable to a fine set by the bank you invested in. PPF is more flexible in this respect. It allows premature withdrawal to a limited amount after the 5th financial year onwards. Thus for emergency withdrawal before maturity, PPF is a better option.
PPF is more flexible in this respect. It allows a premature withdrawal to a limited amount after the 5th financial year onwards. You are even allowed to withdraw the entire sum deposited under PPF, but under certain conditions without paying any penalty.
If you have a good amount of saving, which you can use for any emergency period, you can go with PPF. Otherwise, you can split your investment in 1:1 ratio.
Should You Invest in PPF or Fixed Deposits?
For individuals having large monetary assets who want to go for a short term investment for a comfortable lock -in period, should consider fixed deposits. But an investor who wants to go for low risk, long term investment that will aid during retirement, should go for PPF. This is because the annual limit for investment set by the government will ensure that there is not a huge loss in case of interest rates falling. Plus, the withdrawal policy has also become more flexible from 2016. Not to mention, the return on maturity is high.
Since both Fixed Deposit and PPF are liable for similar tax benefits, investing in PPF or FD is equally advantageous in those terms.
My personal view on PPF vs FD: Invest 80 percent of your investment in PPF and remaining 20 percent in FDs.
ELSS is one of the best tax saving schemes that has been giving great returns from last few decades. However, a majority of the people who invests in ELSS does not get a good return. There can be many reasons, but mainly they commit five common mistakes which I have listed below. Avoid these mistakes while investing in ELSS, and get a return better than any other tax saving scheme is guaranteed.
1. Do not invest lump sum in the last three months
As per AMFI data, more than 50 percent inflow in ELSS accounts takes place in the last three months of the financial year, almost half of which comes in the month of March alone. Lump sum investments may not always help. Rather, one should consider systematic investments in SIP. To get better returns, one must consider investing when the markets are low. Plan your investment wisely.
2. Deciding looking at the short term performances
Do not make a mistake that most of the investors do. Do not decide in which ELSS you should invest look at the past few months or 1 year’s performance. This should not be your criteria for choosing the best ELSS to invest on. Rather, look at the past 3 to 5 years performances to decide where to invest. Follow Valueresearch’s website as they take into count many things including stability of the equities before rating them.
3. Are you biased towards Dividend based ELSS schemes?
We sometimes, looking at the dividend given, choose the ELSS schemes. We think, if a company offers more dividend, then our returns will be more. However, this is not always true. When a company pays a dividend, they are paying you a part of their profit which otherwise would have stayed invested. When they give you the money in the form of a dividend, the amount is no longer invested and you do not get any return out of it. You should rather see dividends as another way of profit booking.
So, the advice is: refrain yourself from dividend based ELSS if you are eyeing on a long term investment.
You may now think of investing in dividend reinvesting option. Don’t. Let me tell you why. Every time your dividend is reinvested, the lock-in period of 3 years starts and this keeps happening every single time.
4. Smaller funds = Less Returns
If you think smaller funds never give high yields then you are wrong. If you look at the performance of ELSS in the last ten years, you will notice that the Invesco India Tax Plan has given the maximum benefit. Despite being Asset Under Management value as only 320 Crore INR, this plan has given the best return. However, not many people could get the benefit from this scheme as they refrained themselves from investing in smaller funds.
By now, you may have realized smaller funds can also give you better returns. So do your homework before investing.
5. Lock-in = Maturity
Lock-in period is not your maturity period. So, when the lock-in period is over, do not think of redeeming the amount. Keep investing. You will get profit when you eye on a longer term. For a shorter term, the return may not be as expected.
Are you a risk taker? How good are you at taking a risk? How much loss can you bear? Or, do you like to play safe? What is your age? Based on the answers to these questions, we would be able to tell where and how you should invest your money in 2017.
Generally speaking, you can invest your money in the following way:
Invest in savings
The first most thing you should invest your money is in savings. You should atleast have 1.5 lakh in your bank account for any emergency needs.
Invest in land
Investing in land always has given unmatchable profits. Even today, post demonetization, the real estate market is still a gold mine for many investors. The land price has increased at an enormous pace, and it is expected to follow the same trend. Real estate is one such sector that will continue to grow exponentially from here on.
Invest in FD
Want to play safe? Invest in a Fixed deposit. Fixed deposit is the best-assured investment plan. Nothing beats fixed deposits when you want secured interests for longer terms. The best part about FD is that you will never be in loss. However, with the development of the country, the interest rate would keep on decreasing and will be lower than the current rate. You can invest 15 percent of your money in FD.
Also Read: Why you should invest in Fixed Deposit
Have you started investing in SIPs? If not, then start today. Keep long-term view in mind. If you are below 30, you can start 2-3 ELSS. The best thing about ELSS is that you will be able to save tax since it comes under section 80C of income tax act.
Invest in Share Market
This is the best way to earn without paying taxes on the profit. As of now, you need not pay taxes on the profit you are making, provided you sell your shares after one year from the date of purchase. Plus equity market has grown a lot in the last 20 years, as it continuous to do so even today. If you invest in right stocks, there are huge chances of making a good amount of money. But for that, you may need a good knowledge of stock market. Research, learn and invest. Please note, investing in stock market is risky. If you invest in wrong companies, you may end up losing all your money in no time. It is always better to consult a certified investor and take suggestions from him/her before investing.
Invest in Mutual Fund
Don’t you understand stock market? Or if you do not have much time to keep track of the market on a regular basis, you may invest in Mutual funds. Mutual funds are taken care of by investment bankers who understand the market; they buy shares of companies after doing comprehensive research. But again, mutual funds are risky too. Chances are there that you may lose your money. So, you must read the scheme related documents carefully before investing.
Also Read: Why you should invest in Mutual Funds
Invest in LIC
Did you invest in LIC? If not, you should invest some part of your earnings. And, investing in LIC falls under section 80C of Tax, so you don’t need to pay tax (subjected to terms and conditions). It is one of the mostly used Tax saving schemes in India
Invest in Health Insurance
Get a health insurance today. With mere 10000 INR a year, you can start a health insurance in India. If not used, you may lose the entire money. But if you think in longer perspective, you can save a lot with a proper health insurance policy.
Public Provident Fund
Public Provident Fund is one among the low-risk investment options that ensure excellent returns in the long run. It is completely tax-free and liable to tax deductions under the section 80C of Income Tax Act. The only disadvantage is that in PPF the amount gets locked up to 15 years after which it matures. But from the retirement point of view this will give good annuitized returns. Also since PPF is a government managed scheme the unpredictable trends of market rates post demonetisation are not applicable. Thus this scheme also offers a certain level of stability.