Monthly Archives: July 2018

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!