SMALL INVESTORS FORUM

 Alert Citizens Forum is pleased that its efforts and follow up to provide relief to the small depositors have now borne full fruit. Last year, the Finance Minister first announced the increase in Bank Deposit Insurance from Rs 1 lakh to Rs 5 lakhs. Now, this year, in a relief to depositors of stressed banks, the Cabinet on July 28,  cleared amendments to the Deposit Insurance Credit Guarantee Corporation (DICGC) Act, which will enable customers to have access to their deposits up to Rs 5 lakh within just 90 days, if their banks go bust and are placed under moratorium. The Cabinet also approved amendments to the limited liability partnership (LLP) Act to decriminalise a dozen offences and enable such entities to enjoy the same benefits as large companies—a decision that is expected to help hundreds of start-ups, among others. Briefing reporters, finance and corporate affairs minister Nirmala Sitharaman said the DICGC (amendment) Bill will cover 98.3% of depositors and 50.9% of...

 Depositors in stressed banks to get insurance money within 90 days of moratorium: The fresh amendments to the DICGC Act will provide huge relief to depositors in stressed banks.  The Union Cabinet on Wednesday cleared amendments to the Deposit Insurance Credit Guarantee Corporation (DICGC) Act, bringing relief to depositors in stressed banks or financial institutions that have been placed under a moratorium. At a press briefing, Finance Minister Nirmala Sitharaman said, “The Deposit Insurance Credit Guarantee Corporation Bill, 2021 has been cleared by the Cabinet today.” “Under DICGC Bill 2021, 98.3 per cent of all deposits will get covered and in terms of deposit value, 50.9 per cent deposit value will be covered. Global deposit value is only 80 per cent of all deposit accounts. It only covers 20-30 per cent of the deposit value.” As per the fresh amendments to the act, depositors in stressed banks that have faced regulatory action must receive insurance on their bank depos...

To many people, Mutual Funds can seem complicated or intimidating. We are going to try and simplify it for you at its very basic level. Essentially, the money pooled in by a large number of people (or investors) is what makes up a Mutual Fund. This fund is managed by a professional fund manager. It is a trust that collects money from a number of investors who share a common investment objective. Then, it invests the money in equities, bonds, money market instruments and/or other securities. Each investor owns units, which represent a portion of the holdings of the fund. The income/gains generated from this collective investment is distributed proportionately amongst the investors after deducting certain expenses, by calculating a scheme’s “Net Asset Value or NAV. Simply put, a Mutual Fund is one of the most viable investment options for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Benefits o...

  Do’s and Don’ts In The Stock Market Let’s introduce do’s and don’ts of investing Most of us have our own perception of investment based on our experiences, but also tend to be confused with the opinions given by others. Knowing the do’s and don’ts of the stock market would help us turn really as a smart investor. The do’s and don’ts in the stock market are 1. Slow, steady, and boring wins the race It is best not to panic over information about stocks on the media. Being slow and steady with looking at the activities that your money is to be used for would ensure that you invest in ventures that are good, useful and profitable. Reading good books on the personal finance will help you in taking right financial and investment decision. In addition, finding good financial advisors would help you get advice regarding stocks and mutual funds, along with entrusting the custody and management of your funds to them. All this may seem too boring andi tme consuming, but it is better to be c...

THE DOS AND DON’TS OF INVESTING If you’ve ever been curious about investing and didn’t know where to start, you’ve likely pondered a variety of questions from what types of stocks to buy to how much money to invest to who to ask to guide you along the way. Though it may seem complicated, investing doesn’t have to be difficult at all. Investing your money is critical to reaching your savings goals. With an experienced and trusted financial advisor by your side, investing can be an exciting and smooth process. To help give you some confidence when it comes to investing, here are our team’s suggested do’s and don’ts for investing beginners. WHEN IT COMES TO INVESTING, DO… 1. EDUCATE YOURSELF. You won’t likely make money from stocks if you don’t take the time to research a company before investing. Study a company’s core values, financial statements, and management, as well as any other beneficial information that gives insight into its investment potential. Even more, don’t go it alone. C...

  (Image is for representative purpose only. Courtesy: Motilal Oswal) In today’s day and age, people invest their savings into various market-linked instruments for a specific tenure and maximize the returns with minimum risk involved. The reasons for making investments are aplenty – some investors invest their money to avail of long-term financial security, whereas others need to maximize their savings to achieve their life goals. Irrespective of the investment options you choose, the decision must be based on your risk appetite, financial goals, investment horizon, and liquidity needs. For this reason, smart investors are always keen to identify and invest in various types of savings plans, which enable them to multiply their money with minimum or no risk involved quickly. Each of these investment plans carries returns and risks, which are directly proportional to each other. In other words, the higher the risk involved, the better will be the chances of returns.  When we ta...

What is the meaning of Investment : Why Investing is Important ? Investing is allocating money towards assets in the hope of making your future better. Investments are made with the view of earning returns, which grows your amount invested to a higher sum.  1. Why Should You Invest? Investing is essential to achieve your goals. It is the only way to make your future better. By making investments, you are also saving and accumulating a corpus for a rainy day. Apart from that, making regular investments forces you to set aside a sum regularly, thereby helping you instil a sense of financial discipline in the long run. 2. Impact of Inflation and the Importance of Investing Inflation, in simple terms, is a surge in the price of materials and services. It decreases the worth of your money and reduces your purchasing power. When there is a rise in the inflation rate, you buy fewer things with the same amount of money. You have no control over the inflation rate. If you are to stay ahead ...