HONEST CAPITAL

Peer-to-peer lending, the unique and new asset class on the Indian investment scene, is being considered by investors because of its higher returns at predictable risks. The emergence of P2P platforms has created several new investment opportunities for income-seeking investors, especially those who are ready to go an extra mile with their homework.  It is currently providing an opportunity to investors to earn a gross return of up to 18-26% per annum. Read on for a quick look at why P2P financing is stopping investors in their path. 5 reasons why investors are interested in P-2-P lending Higher returns  – The net returns (after deducting losses) falls in a lucrative range of 18% to 20% as per the Research and Analysis Report released by Faircent recently. Risks adjusted returns  – Like all other market based investments, such loans also take care of inherent risk elements. For instance, on an average, high risk portfolios would offer a gross return of 22.7% and a net r

What is Peer to Peer (P2P) lending? › Peer to peer (P2P) lending platform is a marketplace that connects individuals in need for credit with individuals and institutions willing to lend. Who can lend on a P2P platform? › Any Indian resident, above 18 years of age, with a valid bank account and PAN can lend on the platform. Any non-banking financial company listed by RBI or companies formed under the Indian Companies Act can also apply as lenders. How does P2P lending benefit lenders? › P2P lending helps lenders earn interest on the idle money which otherwise would not earn anything. Can a lender become an investor through P2P lending? › To become an investor, you can sign up and fill in the basic details about yourself and pay the registration fees through debit/credit card, net banking, etc. Your registration will be verified within 12-24 hrs. Once approved, you can log on to your account online and start lending. What’s the maximum amount and duration f

What is a Systematic Investment Plan? A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.). A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future. How does it work? A SIP is a flexible and easy investment plan. Your money is auto-debited from your bank account and invested into a specific mutual fund scheme.You are allocated certain number of units based on the ongoing market rate (called NAV or net asset value) for the day. Every time you invest money, additional units of the scheme are purchased at the market rate and added to your account. Hence, units are bought at different rates and investors benefit from Rupee-Cost Averaging and the Power of Compounding. Rupee-Cost Averaging With volatile markets, most investors remain s

When one talks about investments especially equity with a long-term horizon, it does not mean that once the investment is done the investor should forget about it for the next few years. Though it is the fund manager’s job to make sure that the fund outperforms the market, it is also in the interest of the investors who may like to know if the fund manager is doing so and also how the funds selected by the investors are aligned with the performance of the peer group. Like other things, you must have planned your mutual fund investments with your mutual fund advisor in order to meet your specific financial goals, therefore, a review will examine if things are going as per that plan and if some corrective action needs to be taken. Financial Goals keep changing Everyone has personal goals in their lives; these goals keep changing with time. As an example, you are 30 years old, married with no children. So you plan to purchase for yourself a single bedroom house by the age of 35. H

Shikha has been working for 5 years now. The reason behind her slender investments is saving some tax, and some, she is generous enough to give away to the government for the economic development of the country. As far as her economics are concerned, she believes travelling and shopping in the mall till her last breath, are the only possible avenues where her hard earned money should go. Shikha's investment summary: 2011 – Company EPF – Rs. 18,000 (She wasn't falling under a tax slab) 2012 – Company EPF – Rs. 25,000 (She joined the 10% league and paid some tax after the EPF) 2013 – Rs. 35,000 Bank FD in XYZ bank; Company EPF Rs. 28,000 (She paid Rs 9,000 in taxes) 2014 – Rs. 45,000 Bank FD in XYZ bank; Company EPF Rs. 26,000(She still paid Rs 18,000 in taxes) 2015 – Company EPF Rs. 26,000 (Since she got married, she had nothing left to invest; She paid Rs. 39,000 in taxes, as she entered the 20% slab this year) Shikha could have saved her entire tax liability over these

Why is it that people don't become wealthy? In a country like India, which has the right set of demographics, opportunities for business can be found in everyday life. Ours is a country, where a tea boy can rise to become the prime minister. Certainly, opportunities abound for those who set their eyes on achieving something big in their life. The question then arises is; Why there are so many people who are not rich, even though they desire to be? There are a majority of people who could have been much wealthier than what they are today. Why are there such a limited number of people retiring ­financially independent? Here are a few factors which can be the reasons as to why many haven't yet achieved the bank balances that they long for. SELF DOUBT : Let us begin by the one thing that kills most dreams than challenges do. It is self doubt. Most of us do not believe that we can be wealthy. An average middle class family person mostly would not be friends with someone who is