Losing a phone has become even more costly after the government’s push for a cashless society. Prime Minister Narendra Modi, while pitching for cashless transactions, has coined a new phrase - your mobile is a bank. If you really want to use your mobile as a bank, remember the costs of losing it are much higher. Earlier, if you lost your phone, there was the risk of misuse of personal data. Now, with most gadgets also carrying mobile wallet apps, there is an added risk of serious financial loss. A number of security solutions, available in form of external security software or in-built into the phone, can help you track the device, lock it & minimize the probability of misuse.
First, it should give you some satisfaction that if your device is of some recent vintage, someone stealing your phone will not be able to use it. Earlier, thieves would wipe the data on the phone (if it has a PIN), set up a new account & use it. But, if you own an Apple phone launched after 2014 or a phone with Android 6.0 Marshmallow or higher Operating System (OS), the server will ask the login information of the first account (with which the owner had initially set up the account). Only then, will it allow someone to set up a second account on the same device.
Track Your Device: Both Apple & Android have in-built features that allow you to track your device if it gets lost. In Apple, it is called “Find My Phone” and on Android “Android Device Manager”. When you log in through your Apple or Google account while setting up the phone, this feature gets enabled by default. After your phone is stolen, go online & type “Find My Phone” or Android Device Manager. Use your account credentials to log in. As long as your phone is on & is connected to the Internet, it will broadcast its location. Antivirus software for mobile phones also offer tracking features.
Keep A Password: The first stage of protection you should adopt is a PIN, pattern lock, or password for your mobile phone. If you don’t set up a PIN, everything that doesn't require a second level of authentication is available to anyone who gets possession of your device. If you lose your laptop but have logged out of your email or social networking account, the thief can’t access these. But, on mobile phones, most of these services don’t require a second level of authentication. Most mobile & net banking apps, require a login & a password every time you want to access these, hence safer. Set a PIN promptly, a strong one that cannot be guessed. Now-a days you can also deploy a fingerprint based feature on your phone.
Encrypt Data on Your Device: Even if you set up a PIN or password, the data on your phone is not protected. Hackers can bypass it and gain access to your files. To protect, OS developers like Google & Apple encrypt data. The encryption feature works using something unique on your device, such as its serial number & your PIN. Even if someone gains access of your files via a computer, they will not be able to open these. These will only open on your phone & with your PIN, password or pattern lock.
Enable App Locks: Some apps allow you to lock the apps on your phone & also encrypt the files produced by those apps. When you start an app, the security app will ask for a PIN. And when exit an app, it will encrypt the files stored within the app. Go to Google Play or iStore & type “encrypted file storage” to get the most popular lock-and-encrypt apps.
Source: Business Standard
First, it should give you some satisfaction that if your device is of some recent vintage, someone stealing your phone will not be able to use it. Earlier, thieves would wipe the data on the phone (if it has a PIN), set up a new account & use it. But, if you own an Apple phone launched after 2014 or a phone with Android 6.0 Marshmallow or higher Operating System (OS), the server will ask the login information of the first account (with which the owner had initially set up the account). Only then, will it allow someone to set up a second account on the same device.
Track Your Device: Both Apple & Android have in-built features that allow you to track your device if it gets lost. In Apple, it is called “Find My Phone” and on Android “Android Device Manager”. When you log in through your Apple or Google account while setting up the phone, this feature gets enabled by default. After your phone is stolen, go online & type “Find My Phone” or Android Device Manager. Use your account credentials to log in. As long as your phone is on & is connected to the Internet, it will broadcast its location. Antivirus software for mobile phones also offer tracking features.
Keep A Password: The first stage of protection you should adopt is a PIN, pattern lock, or password for your mobile phone. If you don’t set up a PIN, everything that doesn't require a second level of authentication is available to anyone who gets possession of your device. If you lose your laptop but have logged out of your email or social networking account, the thief can’t access these. But, on mobile phones, most of these services don’t require a second level of authentication. Most mobile & net banking apps, require a login & a password every time you want to access these, hence safer. Set a PIN promptly, a strong one that cannot be guessed. Now-a days you can also deploy a fingerprint based feature on your phone.
Encrypt Data on Your Device: Even if you set up a PIN or password, the data on your phone is not protected. Hackers can bypass it and gain access to your files. To protect, OS developers like Google & Apple encrypt data. The encryption feature works using something unique on your device, such as its serial number & your PIN. Even if someone gains access of your files via a computer, they will not be able to open these. These will only open on your phone & with your PIN, password or pattern lock.
Enable App Locks: Some apps allow you to lock the apps on your phone & also encrypt the files produced by those apps. When you start an app, the security app will ask for a PIN. And when exit an app, it will encrypt the files stored within the app. Go to Google Play or iStore & type “encrypted file storage” to get the most popular lock-and-encrypt apps.
Source: Business Standard
A systematic investment plan (SIP) allows disciplined investments (recommended in small amounts) at regular intervals (recommended monthly) to yield high returns over a long period of time. Rather than investing a lump sum amount (usually unaffordable for many) in an investment option, SIPs help to build wealth gradually without hurting your overall financial commitments. Not to forget, it accompanies the power of averaging and compounding which further makes it a smart investment option.
However, you might wonder why investors have mixed reviews about SIPs? There are some common mistakes that investors make and fail to extract the maximum advantage from SIP investment as listed below.
1. Deciding High Amount for Investing
Excited by the benefits of SIP, many investors commit high investment amount without calculating their present and future financial capabilities. If you are single at present, you might be able to afford a big amount, which might become difficult once you have a family.
What to Do?
Evaluate your financial condition (present and future salaries, expenses and contingencies) and set a realistic amount for monthly SIP investments.
2. Investing for 1 Year
Many investors try to reap the benefits of SIP through single year investments. Considering the volatile nature of market, it is an extremely small duration for the plan to work in your favor.
What to Do?
SIPs are the best investment option in fluctuating market scenario as they help you benefit due to averaging. Investing for a longer time period helps you benefit optimally from SIP investments.
3. Discontinue SIP in Falling Market
Market volatility drives the decision of many investors who usually discontinue their SIPs when the market falls.
What to Do?
The market mood should not influence your investment commitments in SIP. Due to investment being spread over different months of the year, the ill-effects of 'wrong investment time' are reduced considerably. Plus, when market sentiment is down, gain by getting more SIP units due to low price.
4. Choosing Dividend over Growth
Counting on the short-term profits, investors usually prefer taking 'dividend' option to withdraw a part of the earned SIP benefits regularly. It actually defeats the amazing power of compounding that SIPs are known for.
What to Do?
Allow the dividend to be reinvested to gain compounded wealth at the end.
5. Invest and Forget
Investors most of the times invest in SIPs and forget to monitor and renew it. Considering that every mutual fund is bound to perform differently, you should keep a watch on your investments.
What to Do?
Evaluate the investment portfolio frequently and replace the non-performing mutual funds by those with high probability of good returns.
Your hard-earned money should follow the right investment approach to grow. By avoiding these mistakes, you are empowered as a smart investor with the right insight for handling SIPs.
Source: www.timesofindia.indiatimes.com
However, you might wonder why investors have mixed reviews about SIPs? There are some common mistakes that investors make and fail to extract the maximum advantage from SIP investment as listed below.
1. Deciding High Amount for Investing
Excited by the benefits of SIP, many investors commit high investment amount without calculating their present and future financial capabilities. If you are single at present, you might be able to afford a big amount, which might become difficult once you have a family.
What to Do?
Evaluate your financial condition (present and future salaries, expenses and contingencies) and set a realistic amount for monthly SIP investments.
2. Investing for 1 Year
Many investors try to reap the benefits of SIP through single year investments. Considering the volatile nature of market, it is an extremely small duration for the plan to work in your favor.
What to Do?
SIPs are the best investment option in fluctuating market scenario as they help you benefit due to averaging. Investing for a longer time period helps you benefit optimally from SIP investments.
3. Discontinue SIP in Falling Market
Market volatility drives the decision of many investors who usually discontinue their SIPs when the market falls.
What to Do?
The market mood should not influence your investment commitments in SIP. Due to investment being spread over different months of the year, the ill-effects of 'wrong investment time' are reduced considerably. Plus, when market sentiment is down, gain by getting more SIP units due to low price.
4. Choosing Dividend over Growth
Counting on the short-term profits, investors usually prefer taking 'dividend' option to withdraw a part of the earned SIP benefits regularly. It actually defeats the amazing power of compounding that SIPs are known for.
What to Do?
Allow the dividend to be reinvested to gain compounded wealth at the end.
5. Invest and Forget
Investors most of the times invest in SIPs and forget to monitor and renew it. Considering that every mutual fund is bound to perform differently, you should keep a watch on your investments.
What to Do?
Evaluate the investment portfolio frequently and replace the non-performing mutual funds by those with high probability of good returns.
Your hard-earned money should follow the right investment approach to grow. By avoiding these mistakes, you are empowered as a smart investor with the right insight for handling SIPs.
Source: www.timesofindia.indiatimes.com
These myths paint an unrealistic picture about investing in mutual funds. For a fair understanding, investors need to have the correct information.
1. You Need To Be An Expert To Invest In Funds
Investors often avoid mutual funds because they don't know much about them. The common refrain is, "I don't understand them". It is a fallacy that you need to be an expert to invest in mutual funds. In fact, mutual funds are the best options for people who don't understand investments. The investment is managed by professionals and the individual doesn't have to bother about how to pick stocks or when to buy and sell them. The fund manager does all the research and analysis for you. A good mutual fund adviser can help you choose a scheme that fits your risk profile and is suitable for your financial goal and investment tenure.
2. You Require a Large Amount to Invest
The second most common myth is about the quantum of investment. Many investors feel that to earn meaningful returns, they need to put in a large sum in mutual funds. That's not true. You can start by investing as little as Rs.500 per month through SIPs and gradually increase your investment as your income rises. If your fund earns annualized returns of 12%, even a modest sum of Rs. 2,000 a month can grow to Rs.20 lakh in 20 years. If you increase the investment by 10% every year, the corpus at the end of 20 years will be almost double at Rs.39.5 lakh. So, don't avoid investing because you have a small surplus today. Regular investing and a disciplined approach can help you build a huge corpus over time.
3. Mutual Funds Invest Only in Equities
Investors who do not know much about mutual funds often assume that funds invest only in equities. If the volatility of the equity market has kept you away from investing in mutual funds, you need to know that 66% of the assets under management of mutual funds are in debt mutual funds (as of 30th September 2016). Equity mutual funds comprise just 32% of the market. So, if you want higher returns and better tax treatment than fixed deposits, but aren't comfortable with the risk that comes with equity mutual funds, you can look at investing in debt funds. There are also balanced funds that invest in both equity and debt, and funds that invest in gold. So, you have a wide array of schemes to pick from.
4. You Can't Go Wrong with Five-Star Rated Funds
Even though past performance is no guarantee of future returns, the star ratings of funds by mutual fund trackers such as Value Research and Morningstar provide some idea to investors. However, do keep in mind that these ratings keep changing. A five-star fund could become a three-star or two-star fund based on its risk-adjusted performance and volatility of its returns. Also, the ratings themselves are no guarantee that the fund will not underperform. Ratings need to be paired alongside performance to get a suitable idea about a fund's prospects.
5. Sips Mean You Will Never Lose Money
Systematic investment plans (SIPs) are the best way to invest in equity funds because they reduce the risk and average out the investment costs. But some investors also believe that SIPs mean they cannot ever lose money. Cost averaging simply means that when the market falls and NAVs come down, the SIP investor buys more mutual fund units and when the markets are up, he buys fewer units. The average cost of purchase is obviously lower than the highest price paid for a mutual fund unit. But this does not mean that SIP investors cannot lose money. So, make a realistic assessment of the risk you are willing to take before putting money in equity funds—whether a lump sum or through SIPs.
Source: The Financial Express
1. You Need To Be An Expert To Invest In Funds
Investors often avoid mutual funds because they don't know much about them. The common refrain is, "I don't understand them". It is a fallacy that you need to be an expert to invest in mutual funds. In fact, mutual funds are the best options for people who don't understand investments. The investment is managed by professionals and the individual doesn't have to bother about how to pick stocks or when to buy and sell them. The fund manager does all the research and analysis for you. A good mutual fund adviser can help you choose a scheme that fits your risk profile and is suitable for your financial goal and investment tenure.
2. You Require a Large Amount to Invest
The second most common myth is about the quantum of investment. Many investors feel that to earn meaningful returns, they need to put in a large sum in mutual funds. That's not true. You can start by investing as little as Rs.500 per month through SIPs and gradually increase your investment as your income rises. If your fund earns annualized returns of 12%, even a modest sum of Rs. 2,000 a month can grow to Rs.20 lakh in 20 years. If you increase the investment by 10% every year, the corpus at the end of 20 years will be almost double at Rs.39.5 lakh. So, don't avoid investing because you have a small surplus today. Regular investing and a disciplined approach can help you build a huge corpus over time.
3. Mutual Funds Invest Only in Equities
Investors who do not know much about mutual funds often assume that funds invest only in equities. If the volatility of the equity market has kept you away from investing in mutual funds, you need to know that 66% of the assets under management of mutual funds are in debt mutual funds (as of 30th September 2016). Equity mutual funds comprise just 32% of the market. So, if you want higher returns and better tax treatment than fixed deposits, but aren't comfortable with the risk that comes with equity mutual funds, you can look at investing in debt funds. There are also balanced funds that invest in both equity and debt, and funds that invest in gold. So, you have a wide array of schemes to pick from.
4. You Can't Go Wrong with Five-Star Rated Funds
Even though past performance is no guarantee of future returns, the star ratings of funds by mutual fund trackers such as Value Research and Morningstar provide some idea to investors. However, do keep in mind that these ratings keep changing. A five-star fund could become a three-star or two-star fund based on its risk-adjusted performance and volatility of its returns. Also, the ratings themselves are no guarantee that the fund will not underperform. Ratings need to be paired alongside performance to get a suitable idea about a fund's prospects.
5. Sips Mean You Will Never Lose Money
Systematic investment plans (SIPs) are the best way to invest in equity funds because they reduce the risk and average out the investment costs. But some investors also believe that SIPs mean they cannot ever lose money. Cost averaging simply means that when the market falls and NAVs come down, the SIP investor buys more mutual fund units and when the markets are up, he buys fewer units. The average cost of purchase is obviously lower than the highest price paid for a mutual fund unit. But this does not mean that SIP investors cannot lose money. So, make a realistic assessment of the risk you are willing to take before putting money in equity funds—whether a lump sum or through SIPs.
Source: The Financial Express
Among various financial products, Financial Advisors advise retail investors to take the mutual funds route
For long term wealth creation, investors have various choices. From investing through fixed income instruments to equities, to gold and real estate, investors can invest in one or a combination of these asset classes to create wealth. They can also invest directly or through indirect channels like mutual funds, NPS, post office savings instruments, etc. Financial planners & advisors, however, mostly vote for the mutual fund route when it comes to the issue of long term wealth creation by retail investors.
Advantages Of Investing Though Mutual Fund Route For Long Term Wealth Creation
For long term wealth creation, investors have various choices. From investing through fixed income instruments to equities, to gold and real estate, investors can invest in one or a combination of these asset classes to create wealth. They can also invest directly or through indirect channels like mutual funds, NPS, post office savings instruments, etc. Financial planners & advisors, however, mostly vote for the mutual fund route when it comes to the issue of long term wealth creation by retail investors.
Advantages Of Investing Though Mutual Fund Route For Long Term Wealth Creation
- Mutual funds are one of the low-cost investment products
- Tax savings through ELSS act as an accelerator for investors portfolio
- For a small fee, a mutual fund investor get the services of experienced fund managed team
- ELSS have the shortest lock-in among tax saving investment options
- High standards of regulations make mutual funds less risky instruments
- Gains from all equity mutual fund investments earned in over a year of investing is tax free
- Specified mutual fund schemes - Equity Linked Saving Schemes (ELSS), Pension Plans and some others, enjoy additional tax benefits
- The SIP route to investing in mutual funds inculcate investing discipline