financial goals - VSRK Capital

January 24, 2022

Wedding Finance Planning You Should Be Doing Now Before Proposing

You’ve had all your life to dream about your perfect wedding, and it’s normal to want the absolute best. Everyone starts that way—at least until their dreams run straight into the brick wall of their budgets. Questions such as “how to keep your finances in order before getting hitched?” or “how much to spend on an engagement ring?” are not the most fun to think about, particularly when you feel so deeply in love, but they are some of the most important questions you have to ask yourself before proposing. It’s not just about how many people attend or how nice a cake is served at your reception, it’s also about how much the wedding itself will cost and how it impacts you and your partner’s long-term financial goals. If you plan to invest in a house, start a family, or take an extended vacation after the wedding, keeping a close eye on your wedding expenses is essential. While it’s okay to go over your budget a little bit for that perfect dress or venue, you should try hard not to cross into irresponsible spending territory. You want your wedding to be a memorable day for all the right reasons; not something you’ll be paying off for years to come. Financial strain is one of the most common reasons for divorce. Start your wedding on the right foot by doing your research and planning how to balance your dream wedding with your financial plans as a couple. In this article, we take a look at three questions you must ask yourself before planning your wedding.

How Much Can You Spend?

Before anything else, you have to nail down a budget. If you don’t, it’s easy to get lost in the wedding planning process and, before long, your dream day becomes a budgeting nightmare. Your spending plan should be a combination of two things: an overall budget for how much money you can spend on everything from invitations to flowers, and a separate line item budget for each major section of your wedding. For example, you might decide that, given a wedding budget of $30,000, $5,000 is the most you can spend on food and catering, while another $1,000 has to go towards decorations for the reception hall. Spend some time thinking about what elements are really important to you so that when it comes down to making final decisions you won’t be tempted to spend more than you can afford. It’s also useful to identify family and friends who want to help with the wedding costs. While you don’t want to rely on them for everything, a little help from your parents and siblings can go a long way towards easing some of the financial pressures. Be sure not to expect anything without asking first. These conversations can be awkward, but they’re necessary to prevent even more awkward conversations later on. It’s better to know how much others can chip in at the outset, rather than finding out they can’t help as much as you were hoping for down the road.

What Can’t You Live Without?

Once you have a ballpark figure for how much you can spend on your wedding, it’s time to start planning and making decisions. No matter what financial guidelines you set for yourself in advance, some costs are inevitable when getting married. If you’ve decided that certain elements are non-negotiable for your wedding day but don’t fit in with your chosen budget, then it’s time to make some cuts elsewhere! This is the time to be ruthless. If you are working with a limited budget, you’ll have to make hard decisions. What matters more to you? Your bride’s wedding dress or the reception? Do you value professional photos more or a live band? It’s okay to change your mind along the way, but having a clear idea of what you want from the start will keep you from going over budget when it comes time to cut costs. Once you have your plan in place, start saving up. Don’t wait until the last minute to sort out financing—even if you’re paying for everything yourself, it’s important not to get caught off-guard and find yourself scrambling at the eleventh hour!

Does Everything Make Sense?

Now that you know how much you can spend and which parts of your wedding are non-negotiable, you can begin to plan exactly what kind of wedding you have. Do your research and look out for any hidden costs. Don’t be afraid to make changes if you feel they don’t make sense for your budget. Check everything against your budget and revise as necessary. Once you’ve finalized your plans and budget, it should all start making sense! A few small tips that can help you plan the perfect wedding while remaining financially responsible are:

Stick to your budget as much as possible and avoid using your credit cards
Open a separate banking account for your wedding expenses
Watch for any special wedding deals and discounts

Creating a spreadsheet might also help you keep track of your wedding plans and make sure that you’re staying on budget. You’ll be able to see exactly how much money each element costs and which parts of your wedding are most important to you. At the end of the day, it’s about taking a realistic look at what matters to you most when planning your perfect wedding. Don’t forget to have fun along the way—two people in love getting married should be something special, no matter how much money you have! Even though it’s hard to know where to start when you’re faced with a big, overwhelming project like wedding planning, getting organized early on will make things less stressful in the long run. Keep these tips in mind and you’ll be able to handle any curveballs along the way!

October 27, 2021

Should I Invest in an IPO

Many new and existing investors have been disappointed for unable to subscribe to the much talked Zomato IPO, a first by a Food Tech startup? One has not been able to grasp the opportunity because of the question that should one invest in an IPO or Buy after its listing on the Exchanges?

Huge liquidity in the economy and a horde of investors to invest given Indian businesses a raise of Rs.27.5 crores through an IPO in 1st half of 2021. Various Indian businesses are lining up for an IPO in the next few months boosted by the IPO stocks successfully listed in 2020. Gearing as much as 400% since listing in many cases and the uptrend of the stock market inject investing in an IPO an exciting opportunity for investors. With Zomato’s successful listing, there are some big names going public before the end of the fiscal year. Here are a few reasons to consider investing in the IPO.

Enjoy the first come first serve advantage. Investing in an IPO, one gets the opportunity to buy shares of a business with a high potential to grow at a lower price. The IPO is a chance to make a short-term profit and increase your wealth in the long term. What’s more, the share prices may rise sharply after listing on the stock exchange.

Fulfill your long-term objectives. Equity investments are likely to offer high returns in the long term. When investing in an IPO, one must wait for momentous gains. The amount earned in a few years will help fulfil financial goals. And, if you’ve managed to pick a worthy, you will near to buy your dream home.

The prospectus includes transparent information about the company, its valuation, the number of shares offered to the public and the price per share. As an investor, one has access to real information. However, once listed, share prices vary based on dynamic market changes and the best price stockbrokers can offer.

Buy at a bargain price and earn big later as the IPO price band is usually the lowest a business offers to the public. In some cases, companies offer their shares at discounted prices, which is why many investors invest in an IPO. If you miss out on the investment, the stock prices may rise sharply, and you may find it hard to buy.

Does this mean that IPO is always the right choice? VSRK says, it is not always peachy-keen, as there can be an IPO that failed and did not offer the returns investors expected for each successful IPO. If one is not afraid of the wait and watch the play, then waiting for the stock to list on the exchange would be just your cup of tea. In such cases, buying when the shares are cheap makes perfect sense, but investing when prices vault-up means paying more for unworthy.

October 21, 2021

Resolving Misconceptions about Tax Saving Mutual Funds (ELSS)

Equity Linked Savings Schemes funds are one of the best tax savings schemes available without any question of doubt. Let’s give a brief look at how ELSS funds have steadily outperformed other tax-saving investment options. These equity-linked schemes offer tax benefits under 80C of the income tax act. These schemes also give investors the higher ROI with the option of short lock-in periods, all the while compiling a long-term corpus to meet financial goals.

With the growing interest over the years, ELSS has become an interesting investment avenue. As the coin has two sides, unfortunately there are various myths attached to the scheme. ELSS is looked upon with a certain degree of apprehension due to some of the myths which are demystified in the column below.

MYTH 1: Can invest only ₹1.5 Lakhs

This is of the biggest myth about ELSS funds. In reality, one can park as much funds as one likes with availing ₹1.5 Lakhs of tax benefits under 80 C of the Income Tax Act.

MYTH 2: 3-year Lock-in Period

The fact says although one can’t withdraw parked money before the lock-in period, & can remain invested for as long as one wants. After the fulfillment of the 3-year lock-in period, one don’t necessarily need to withdraw funds.

MYTH 3: Short Term Investment

The 3-year lock-in period doesn’t make ELSS a short-term investment option. ELSS can be judicious to remain invested for 5+ years to enjoy the power of compounding.

MYTH 4: ELSS are Risky Schemes

Investing in equity linked mutual funds is highly risky and should be avoided. The fact states, due to its equity nature, indigenous risks are aligned with. Seeing on the brighter side, the risks doesn’t matter considering the returns in the long-run.

MYTH 5: Demat Account is Necessary

One does not need a Demat account to invest in ELSS. If you have a Demat account, you can very well use it to make investments. However, this can also be done through VSRK.

MYTH 6: Low NAV Funds are Cheaper

The reality check says, low or high NAV has nothing to do with the scheme’s performance. If 3 funds with different NAVs gives 18% returns, anyhow, the portfolio will go up by 18%.

MYTH 7: Infused Dividend adds to Gains

In reality, a NAV falls as the dividend is distributed. A consistently outperforming fund may not declare a dividend and may handsomely reward in the long run with its performance.

MYTH 8: Surmounts are “Safe Avenues”

Investors buy last year’s outshining funds, may be the fund may subsequently cease to exist now. VSRK suggests to study the performances over the last 3 – 5 years before investing.

MYTH 9: ELSS is too Complex

ELSS is simple mutual fund scheme which has a 3-year lock-in period with an amount as little as 500INR, which makes it easy and affordable for anyone.

Conclusion

ELSS is not any different. As with everything investments, associates inherent risks which require graceful pre-planning. Never fall for the myths discussed above, may one miss a great investment promising a plentiful return.

September 27, 2021

I for IPL or I for Investments

After witnessing depressing COVID-19, everyone is glancing with high hopes for a change and entertainment this IPL. Cricket is a religion for a country with diverse population over 1.38 billion. The excitement is pretty much tangible everywhere be it stadium, streets, or homes. Cricket teaches some valuable & relatable investment lessons as well.

“How much do a team needs on the board to win the match” is a process that goes through captain’s mind? And which is very important to make a tough fight. Determining winning score is equivalent to setting and accomplishing financial goals. Smart, Measurable, Achievable, Realistic, and Time-bound are the factors considered to set financial goals. Every keen player keeps a watch on his opponents’ moves. Similarly, keep a watch on your opponents which are real inflation and the volatility.

To win a match, the selection of right team players is vital. Similarly, while investing, every investment avenue has a role in the portfolio. The investment avenues must be chosen considering age, risk appetite, objectives, financial goals, the time horizon before goals shake, and the risk-return feature of the investment avenue.

The cricket enthusiast knows that the strategy changes from one cricket format to the other. Similarly, while addressing financial goal/s, one need to recognize investment objective; the risk appetite; and the time left (balls left) to achieve the foreseen goals.

A good head-start sets the direction of the game and works in favor of the team to win the game. In the same way, the sooner one starts the process of saving and investing, a big corpus can be built advocated by the magic of compounding.

Pacing up the innings as the match unfolds, maintaining the required run rate always. Similarly, for your investments to roar, the earlier one starts saving and investing regularly, systematically, and prudently; with more investment time horizon you can compound wealth better.

Just being a good player is not enough. Following the rules is equally important. In investing, the market factors and volatility provokes. One should be disciplined for the long-term particularly in equities to overcome volatility, and potentially earn decent returns.

Cricket is full of highs and lows. Any captain keeps a ‘Plan B’ to win the game.
Similarly, if any unforeseen financial emergency occurs, one must have a backup plan. Therefore, building an adequate contingency reserve is necessary to deal with emergencies.

Keeping a target, the scoreboard and run rate to defeat the opponent team, and plans a strategy. Reviewing the investment portfolio to ensure whether you are on track to accomplish the goal. Further, it will help to serve in the interest of long run financial wellbeing.

The way the winning of a team can be attributed to preaching command of the captain. Similarly, seeking an efficient advisor who spoon-feed their clients in creating a robust financial plan with a holistic approach.

Cricket is a sport played with a passion to win. With the same passion, focus on accomplishing your financial goals by making prudent decisions. Believe in the magic of compounding and invest for the long-term, a sure-shot formula to win.

September 4, 2021

WHAT NEXT WHEN MARKET TOUCHES 17K

The Indian equity markets have ended on a record high. The 30-share Sensex rose 514 points to end at 57,852 while the 50-pack Nifty settled at 17,234, up 158 points. This has led to many of the readers and investors wondering, what next?

It’s simple really! VSRK has always maintained that successful investing depends more on ‘Time in the market’ as opposed to ‘Timing the market’. While valuations and prices are absolutely significant, it is more important for investors to spend time with high-quality businesses than time their ups and downs. Around 50 stocks that have rallied over 500% in the last few years bear testimony to this.

The questions still remain unanswered: Is the market going to rise further or is it going to fall? One should be a pessimist and wait or cheer up and invest right away?

Waiting for a market correction to start investing would result in a loss of opportunity. This is the only reason why one should get going ASAP. If one will wait for some correction, surely will stay dwell. Therefore, one should invest. Even at a market high, the markets are only going to go higher in the long-term orientation. One can expect a few jerks on the way, but the general market course is going to be largely upward-looking. But remember, Investing should be played for a long-term.

Step #1: Avoid the temptation of booking profits!

Equity as an asset class is habitual of giving superior returns in the long term due to the power of compounding. VSRK insists & helps in cutting the losses short and riding on winners. This selling rule is deeply embedded in our policy. You should always have an investment plan and remain disciplined.

Step #2: Asset allocation is important

The fact remains intact that market volatility affects your portfolio’s asset allocation. It could be possible that your portfolio is composed only of small-cap or mid-cap stocks. In up trending market, a concentrated portfolio may increase chances of loses. One should diversify when the markets are really high. Diversification means flexible market capitalization. The best way to keep your portfolio up to date is by utilizing an active investment strategy such as VSRK.

Step #3: Get rid of under-performing investments

When you initially constructed a portfolio, markets must have been quite different. Now that considerable time has elapsed, chances are that the valuations have changed. The reasons that made you buy those particular stocks might no longer exist. The market leaders might have changed ranks. In such a situation, sticking to laggards can result in losses. So, use this time to review your entire portfolio and weed out stocks that don’t seem valuable anymore.

Step #4: Invest according to a proven investment strategy

It is rightly said that a plan without a strategy is merely a vision. Investing in accordance with a strategy can help you achieve your various financial goals and understanding your risk appetite will keep you away from making impulsive or ill-informed investment decisions based on greed and fear. VSRK is a smart investment strategy that is complete with selling rules and can help you invest in accordance with your risk appetite.

Step #5: Consult your Investment Advisor

The art of investing includes doing the basics of investing right i.e. knowing how much to invest for your goals, where to invest, understanding your risk appetite, proper asset allocation and re-balancing, investing systematically and remaining disciplined in your plan irrespective of market conditions.

An investment advisor can not only help you understand your financial objectives but will also help you curate your equity portfolio in order to achieve those objectives. An advisor will act as a guiding light in navigating your way through the volatility of financial markets.

All said and done, market highs and market lows shall come and go. The volatility shouldn’t bother long-term investors. You should always aim to keep an eye on your goals and invest in a systematic manner. VSRK would be delighted to assist you in your investment journey so that you can fulfil all your financial goals.

August 31, 2021

Power Play your Investments; every Dot Ball is a lost opportunity

We never get unlimited chances to procure all the things we want, nothing is poorer than missing an opportunity that could have changed our life. This is entirely what materialize with our Earning phase of subsist.

When anyone starts earning, one has the least or no bounded expenses because of the fewer responsibilities at that age. This gives a big reason that an individual should start investing in the best spacious way he/ she can. To think and execute on the thought of investing is primarily vital then comes the procedure to opt for various amazing avenues with same or different investing amounts. After being conclusive about investing, the first thing comes to mind is who to choose for support and whom to trust with your hard earned pesos.

VSRK is the name one can trust upon. At VSRK, we do not sell products, we advise solutions with provision of incredible riches services since 2013. The tailor-made investment plans at VSRK are according to your financial goals & investment style.

The earlier the investments, the documented concept of compounding starts horsing around and helps you attain all financial goal and finally retire wealthy. VSRK shall step ahead on the illuminating path of wealth creation confidently if clear understanding is made for financial goals, risk tolerance and investment strategies.

There are ups and downs in the market due to the feature of volatility in the buzz. Fervid investments or disinvestments during span of short-term volatility barely clinches in the long run. Verifiable examples show, it takes long for the market to retrieve losses and bridge gains.

Every SIP delayed will harvest a whooping dent in the Retirement Party Day. Missing a single month’s SIP is simply giving dot balls to your earning life. Batsmen are enlightened for not bowling blindly and miss wickets. They stake calculated Risk and strip benefits. One should try to escape the EMI web and credit obligations. Scoring fast in the initial overs allows batting teams to tackle quality wicket-taking bowlers carefully and not take the risk.

Hence, investing in the initial years of earning helps one easily take over the charge and obligations of unexpected expenditures in the middle-age say kids’ education, owing residence etc.

Cricket lovers know well when a batting team tally huge in Power play, the overall will be a win-win situation. Methodically, whenever the elementary investment is towering, the overall corpus tends to gigantic. It not only makes the investor financially independent but makes them retire rich and die wealthy.

Like in cricket, no batsman enter the ground without the necessary protection. Similarly, VSRK has the team of experts to help the investor not only to stay on the financial ground for long but also to score high returns.

August 13, 2021

6 Reasons Why We Need a Budget ?

Judiciously spending your earnings is the quality of a wise and smart financially-sound person. But sometimes, you commit mistakes regarding your expenditure, which leads to a financial loss. The solution to this problem is setting up a budget for your income. A Budget is a common word we know what it means. A Budget is an estimation of your income and expenditure. It creates a way to decide how much to spend and for what purpose. By creating a budget, you formulate a plan for spending your income. It is indispensable for your financial stability to ensure a steady income and check all your expenses. We have tried to enlist some reasons why you need to prepare a budget for yourself.

1.Helps to figure out your goals:
Establishing a budget helps you to keep an eye on long-term goals and work on them. If you aimlessly lose your money now and then, you will end up with no savings and no financial security. If you want financial security for yourself and your family, you should maintain a budget.

2.Ensure optimum spending:
Budget controls your pocket. It stops you from being extravagant in your spending. Also, it ensures you do not spend money that you do not have. People often spend higher than their earnings and owe it all to credit cards. People who overspend often fail to realize the overspending until they are in debt. However, if you create a budget and stick to it, you will never find yourself in such a situation.

3.Helps to lead a happier retirement:
It is good that you spend your money on the limit, follow a proper budget & you will be debt-free, but something more is as necessary as these habits. It is your future you need to spend wisely today but equally essential to save it for the future. A budget can help you to do that. You should also include investments that will lead you to a happy retirement life ahead.

4.It prepares you for emergencies:
Life is unpredictable and full of surprises, a few sweet and some bitter ones. Emergency encompasses situations like sickness, hospitalization, accident, lay off, divorce or death of someone in the family. This situation leads to financial urgency, which is the reason why you should have an emergency fund. Your money or budget must contain an emergency fund that includes a minimum of four to six months’ living expenditure. It will ensure you don’t suffer from debts after a life crisis.

5.Throws lights on your spending habits:
Forming a budget encourages you to take a complete look at your spending habits will realize you are wasting your money on the material you don’t even need. Do you need four pairs of slippers/ or 15 shirts of the same color? A Budget makes you rethink your expenses and focus on a financial goal.

6.Helps in making you burden-free:
How many nights have you spent thinking about paying the bills, how to deposit your child’s education fees number of people who lost their peace over these tensions allow their money to make them a puppet. When you form a budget wisely, you will never have to lose your sleep over financial issues.

These were a few key points, several more advantages of making a budget and strictly following it. You can ensure financial security today and the future by strictly following the above suggestions.

February 5, 2021

5 Things You Should Know Before You Start Investing

Investment is not a one-step process but an entire series of steps taken to reach the financial goal. It encompasses making various financial decisions and finding the right investment alternative while minimizing any associated risks. Investing is affected by a large number of factors, so it is crucial to keep in mind some financial aspects. Today we will talk about five things you should consider before you leap.

Know Your Investment Goals
Every person who is desirous of investing should have a stated purpose of investment. It could be anything like buying a house, new car, child education and marriage or planning retirement. You should know what you want to save your money for and especially how much you want to save. Your investment goals are a crucial factor to decide the investment alternatives.

Know Your Financial Condition
Any investor, whether she is a billionaire or a new associate in a law firm, has some financial limitations. It is necessary to know how much would you be able to invest in the said period of investment. The purpose of investing funds would be to generate sufficient returns to help you achieve your financial goals, whatever they are. So, it is necessary to know how much investment you would be able to support and where you can cut corners.

Know the Importance of Emergency Funds
One of the main reasons why investments fail is that people consider their investment as emergency funds. However, this is never the case. For example, when you start a fund for buying a new house, then that money is being kept aside for buying that new house only. Now, what people do is that whenever they face any financial emergency, they break these funds, thereby hampering the investment cycle. Such acts lead to lower accumulated wealth. These emergencies, as the name suggests sprung anytime and you have no control over them. So, it is always advisable to consider an emergency fund. It would safeguard you in case of any mishap.

Know Your Asset Allocation
There are various investment avenues available in the market. You can invest in precious metals like gold & silver, stocks, bonds, mutual funds, real estate or a combination of all of the above. You may or may not want to invest in all of them. Each of them has its risks, rewards and characteristics. Therefore, you should be well aware of the investment avenues you have selected. Knowing each kind of investment avenue helps you to create a diversified portfolio and enhances your chances to reach your financial goals.

Know Your Risk Appetite
When someone wants to invest his money, there are majorly only two things in his mind. First is the reward and second is the associated risk of investment into that avenue. Every person has a different risk appetite depending upon his age, financial situation, priorities, etc. You should identify the level of risk you are willing to take to achieve your financial goals. This factor is one of the main aspects when you choose your investment avenues. People who have a high-risk appetite go for equity funds; they are risky but give good returns to its investors. Debt mutual funds are safer but provide low returns and are suitable for people with low-risk appetite. Hybrid mutual funds are known to yield better returns than debt funds and are less risky than equity funds, so they are suitable for moderate risk-takers.