RBI Hikes CRR , Repo Rate and Reverse Repo Rate

The Reserve Bank of India on Tuesday increased the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 5.75 per cent to 6.0 per cent.

India's central bank also decided to increase the repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 5.0 per cent to 5.25 per cent with immediate effect.

The bank also increased reverse repo rate under the LAF by 25 basis points from 3.5 per cent to 3.75 per cent with immediate effect. Bank Rate however was left unchanged at 6.0 per cent.

As a result of the increase in the CRR, about Rs 12,500 crore of excess liquidity will be absorbed from the system.

Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with the Reserve Bank of India. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.

Some of the expected outcomes of the hike in key rates by the Reserve Bank of India are:

(i) Inflation will be contained and inflationary

Read Full Article----->

Charges levied in ULIP Policies

Are you aware of all kind of charges you pay in your ULIP? Many people do this mistake, by listening to the magical words of insurance agents, However you note that Your insurance agent is so humble just because his earnings and commissions are totally dependent on the policy sale to you. Just for your information, whichever policy charges highest, pays highest commission to agents and hence they pitch in the same policy to you .

However all charges are not the same in all the policies and even 2 policies from the same life insurance company may have different charges. Hence We at http://www.assettreat.com make an effort to educate all its readers about various charges being charged in the ULIP policy.

Please compare the below mentioned charges before

Read Full Article----->

Handy Information on ELSS(Equity Linked Savings Scheme)

Most of the tax saving instruments that fall under Section 80C is saving oriented with returns after adjusting for inflation. The exceptions are the ULIPs (Life and pension funds) and the ELSS (Equity linked savings scheme) mutual funds.

The basic advantage of opting for ELSS as compared to the ULIPs is the frequency—mostly a single investment or a monthly investment for a year—and term for investment, for getting good returns. 

The handy guide to ELSS mutual funds

1. What is an ELSS?

ELSS is a mutual fund that has to invest a minimum of 80 per cent in equity shares. The balance 20 per cent can be in debt, money market instruments, cash or even more equity.

There is a 3 year lock-in period for the ELSS mutual funds. Post the 36 months, the funds remain invested and work like any other open-ended mutual fund.

2. What are the advantages? 

It is an established fact that in the long run

Read Full Article----->

Myths and mistakes in Finacial Planning

One myth about financial planning is that it is only required if you are wealthy. However, It makes more sense for financial planning if you don’t have enough wealth and you lead a tight budgeted life. It also makes sense to some extent that we hire a professional Financial Planner help. Here are some common thoughts we all have which we all need to rethink and add that element in our financial planning.

•           I don’t Need Financial Planning as I don’t have enough money

This is the biggest misconception we all have. Mind it that if you have enough money, then you need wealth management but if you don’t have enough you for sure need financial planning. Financial planning is a tool for wealth creation as well as managing your expenses, health Insurance cost,

securing the life cover whereas wealth management is only about managing and growing your wealth. Once you become wealthy, then only wealth management will work for you whereas financial planning will work for you always.

Read Full Article----->

Have a PF account:Access it online

Here is some good news for everyone who contributes towards provident fund from your salary with Employees Provident Fund Organisation (EPFO) of India. Going forward, salaried people would no longer have to go through the tedious and rather long process of knowing the details of their PF account. Every bit of information related to Provident fund that you may want to track would be just a ‘click’ away in the very near future!

This would be a great tool to about 4.5 crore PF subscribers in

Read Full Article----->