A Credit Card is one of the readily available and popular financial instruments, which offers the freedom of making purchases and paying bills, without having to pay upfront. Moreover, these cards offer a wide array of benefits, in the form of reward points, flyer miles, additional discounts, and brand-specific offers. However, if you want some additional lifestyle benefits from your card, your best bet is to invest in the Best Premium Credit Card in India. Not only do such cards offer benefits that are above and beyond those offered by regular cards, such as Lounge Access at Airports, but also entitle you to exciting redemption alternatives which can help enhance the quality of your lifestyle! Let us take a quick look at some of the leading premium credit cards available in India: SBI Card ELITE One of the most sought after SBI Credit Cards, the SBI Card Elite has been Continue reading
Personal Finance Concepts
Confirmation Bias – Understanding Behavioral Biases in Finance
Confirmation bias is the inclination to seek or make sense of news or facts in a way that validates one’s preconceptions. So, during the decision making process for psychologist they will refer to information that supports their decision more favorably. They will rarely give the obvious negative much consideration and since our beliefs and postulations are definitely prejudiced so the tendency to give more attention and weight to data that support our beliefs than we do to contrary data will subtly but gradually have a harmful effect. An illustration of Confirmation Bias A very real manifestation of this tendency can be observed in the virtual world. For instance, investors are increasingly turning to message boards or virtual communities to search, clarify, and exchange information before making investment decisions. The volume of discussion on such portals is so intense that it has become possible to sense stock sentiments from here. These Continue reading
Mortgage Loan – Meaning, Types and Approval Factors
Mortgage loan is a loan secured use to finance by real property. It is usually used with specified payment periods and interest rates according to the agreement of the mortgage loan made between the two parties. Mortgage loan also can know as amortized loan. Under legal agreement, the mortgagor (borrower) gives the mortgagee (lender) a lien on the real estate as collateral for the loan. However, the home loan and mortgage are often used interchangeably. So, the mortgage is really an agreement that makes the home loan work- the commercial bank would not lend you some hundreds of thousands of money unless they knew they could claim your home in the event of your default. Generally, the word mortgage is most commonly used to mean mortgage loan. Besides that, a mortgagor can obtain the financing to buy or secure against the property from a financial institution for instance, a bank, Continue reading
Five Reasons that Contribute to Non Compliance with Tax Laws
Non compliance of tax laws  can be said to be a failure, intentional or unintentional, of taxpayers to meet their tax obligations. This lack of compliance can be as a result of different factors as indicated below: A Rising or High Tax Burden: Individuals and organizations will tend to be non compliant to tax laws when the taxes are deemed to be high as compared with the cost of living. In such a case taxpayers will tend to avoid payment of taxes so as to have a sizeable amount of money to be used in the purchase of different commodities. Lack of Knowledge on Tax Laws: This point focuses on the unintentional failure of a taxpayer to comply to tax laws. An example would be a small or medium enterprise that does not know that it is required by law for their businesses to be registered and as such pay Continue reading
Market Timing for Investors
persoMarket Timing is a top down view of the stock market and its prospects.  Market Timing is an approach that attempts to determine when to be in the market, when to be out of the market and when to short (bet on a price decline by borrowing stock and selling with the hope to buy it back at a cheaper price and repay at cheaper prices). Market timing includes the following four components. Trends of interest rates: The future behavior of interest rates, i.e., the tightening or easing bias of the Central Bank. Interest rates are critical to market values for three reasons. Stocks are basically the present value of future earnings. An investor invests his money in an expectation of certain rate of return. The higher the general level of risk-free rates, the greater the expected rate of return and the lower the present value of future returns. Additionally, Continue reading
Primary Purpose of Taxation
Taxation is a means by which governments finance their expenditure by imposing charges on citizens and corporate entities. The main purpose of taxation is to accumulate funds for the functioning of the government machineries. All governments in the world cannot run its administrative office without funds and it has no such system incorporated in itself to generate profit from its functioning.  In other words, a government can run its administrative set up only through public funding which is collected in the form of tax. Therefore, it can be well understood that the purpose of taxation is very simple and obvious for proper functioning of a state. Taxes are charges levied against a citizen’s personal income or on property or for some specified activity. As such, one purpose of taxation is to increase in effectiveness and productivity of the nation as government is able to implement various socio-economic development projects such Continue reading