Growth or Dividend pay-out- which to choose!!

There is a saying that ‘Ignorance is the biggest mistake of mankind’! every word is so true, let’s consider the example of the biggest asset that we have- money. We all know that it’shard to earn and even hard to save, yet we make the grave mistake of analyzing the info available and researching and end up cribbing.

Most of us are aware of mutual funds, heard about them. But in reality, we don’t have much info about why each of them is different and why is that our funds aren’t earning like any other pro? Why? Let’s chuck that ignorance and open our minds and eyes rot the info available and make the most.

The main aim to invest in mutual funds should be your goal at the end and your risk capability. If you know these 2 factors, then we are here to help you. In mutual funds, each fund has its own pro and cons, yet few of them are the best ones in terms of returns and are appreciating in the initial capital more than any other fund.

There are 2 options in mutual fund investment, one is the growth option and the next one is dividend pay-out. Here we explain; what’s the difference which will make in your end capital amount.

Growth option:

This is one of the most sought options, as the name says it gives you growth in the longer term. When talking about any investments, we always look for a longer term. It must be for a longer term, beyond 3 years, to see any change in your capital. So, always have a long-time period to allow your money to grow. Growth period doesn’t give you any short-term earnings but concentrates on your capital appreciation. Here you’re NAV increases, and also the number of shares per unit.

Dividend Pay-out:

This option as the name says you get a pay-out every monthly or quarterly. But, the point here is, this type is suitable for only short-term investments. If you are looking to invest only for a year, then you can choose this option. Here, the capital appreciation is very low to moderate, and gain dividend.

This type is good for senior citizens and families who need a steady income for the invested capital and also a decent appreciation in capital.

We hope this will help you in choosing the right kind of fund according to your needs.





What you must know about salary negotiations

We have all been in a situation like this as an employer or an employee we either seek salary negotiation or have to sit through one. My friend, Lenny has been on the board of a staffing agency and he claims that he has seen it all!

Possibly so, with a career spanning a decade and a half in the same industry, I am sure he knows what he is saying. He claims to have seen quite a lot of people sit through this most uncomfortable of sessions. Some of them coming out impressively well but most of them cut a sorry figure.

So, we get talking about this one evening:

Honestly, I never quite realized the importance of salary negotiation before I had Lenny explain to me the importance of this one aspect of job seeking which has the capacity of letting the employee have or not have complete work satisfaction.

Lenny was a matter of fact trying to push the envelope saying that more than the job interview, more than the actual acceptance of job and making the first impression, what is more, important is how you carry forward your terms of engagement with the company you want to join. Stressing the importance of a salary negotiation further he also points out that the exercise helps both the parties appreciate each other’s role in the company and also helps them appraise each other, which is a positive thing!

Everyone makes the same mistake”:

If there is one thing that everyone who is seeking a job does is that he prefers to silently accept the terms as given to him in writing by the company choosing not to argue or even debate the pros and the cons. This can be understood in the light of the facts that the employee

  1. May not want to come across as acting pricey;
  2. May not want to put off the interviewers by asking them about the remuneration package just yet;
  3. May want to accept the job first even before he opts for someone else.

There is absolutely no stigma in negotiating your salary:

Lenny spoke about the fact that a lot of youngsters seeking jobs at big conglomerates think that they would come across as snooty and egotists if they suggested a figure or negotiated for better perks. However, this is absolutely not the case. The employers are more than happy to hear what the employee thinks he deserves.

In the end, it is not what you deserve but what you ask for that you get! Lenny says with a wink!

Assessing Your Risks In 4 Simple Steps

The financial market is more alert than ever before because of the various regulatory bodies that are on the prowl to take note of companies and business owners that might be potential targets for risks. Every financial organization must have a thorough understanding of their risk profile and how the risks can be mitigated. Considering the fact that the finance industry is highly volatile and is prone to a good deal of risks, marching ahead without a proper risk assessment is a huge mistake.

Here are 4simple steps that you could follow in order to assess your risks while there is still time.

  1. Risk identification

The definition of risk varies from one person to another and also from one field to another. The common factor with all kinds of risks associated with a business is the fact that it encompasses everything that inhibits your efforts to reach your target. If there are factors in your business that negatively impact your work environment, the image of your company, the quality of your products and services, then all those factors will be considered as risks. So, the first step in risk assessment is risk identification.

  1. Risk library

Restricting yourself to identifying and analyzing the risks is not enough. One needs to have a risk library that will initiate and guide the entire process of risk assessment. A risk library is a conversation starter, wherein, the potential risks and discussed and awareness is created. Everyone involved in the company’s financial sector and otherwise is made aware of what to do and how to do.

  1. Mark risk owners

A company is divided into various sectors and risks are associated with each one of them. It is practically impossible for a business owner to view all risks in detail which is why he or she must mark a risk owner for a particular category and let him or her to the groundwork. He or she can also be given the responsibility of initiating risk controls so that Lion’s share of the work is done before you are required to intervene.

  1. Identifying the controls

Not all control measures work everywhere. In order to minimize your risks significantly, it is required to identify the control that is exclusive to the category in question. Reading investment guidelines properly is an efficient way to minimize risks associated with Equity. These are market risks and require a different set of guidelines that apply to environmental risks; hence, the categorization.

Introduction to Microfinance


We hear that a lot of new businesses have made an entry and lot of them have vanished just like that! There are many reasons behind it, one of the main reasons we found out was lack of financial support. Finances play a vital role in shaping the business of any kind. Without a proper support of finance, be the best of talent can’t be showcased and cant is brought to the world, and all of it goes in vain.

So, how do any small businesses thrive in the initial days? How do they fund their innovative idea? How is it possible for them to sustain the expenses and go forward with ideas to lead the business? Though family and friends are an option at the beginning, it can’t be always and can’t be full too; no matter how hard, one need a strong back power to help financially. So, what’s the solid option to become free, emerging businessmen or businesswomen?

Small business ideas are helped and financed by microfinance options in the suburban areas, like using the help of co-operative banks, smaller banks, and small fund houses. This small chain of financial service groups falls under the category of microfinance.

So, what exactly is microfinance?

For all those, small business entrepreneurs, this is one of the biggest fund house, that can help in getting your small capital for your start-up business, which the main big banks don’t consider and don’t bother to cater. This is mainly to support and encourage the smaller group of people with no capital, or very less capital but with talent and skill to come up with their business.

How to get help?

You can apply for this financing option by applying at several affiliated banks or organizations. Certain larger banks too, now, give microcredit to small-scale businessmen. Approaching an organization, that takes care of the microfinancing that also is non-profit organizations.

What does it cover?

Microfinance covers all your financial needs like a business in small scale, housing (smaller level), healthcare, insurance and few others.

Why is it helpful for small-scale businessmen?

There is no collateral required to be submitted as a deposit for your business finance or loan, considerably lesser interest rate, a short period of the loan, small amounts. Hence it’s very much suitable for emerging businesses.

How to proceed?

One needs to open a savings account in the respected small organization, and then proceed with loans or other needs and start their business journey.