The well known investment option is gold. Along with gold the other good option is diamond. If you are confused about gold investment or diamond investment then you can read this blog. Check the sections and then know about it.

You will get good outcomes by deciding the right investment option. Check out the sections below and then find out which one is best.

Factors that are important for choosing the investment

The factors that are important for deciding the right investment are shared here. The factors can be checked below and then you can consider them.

1. Liquidity is an important factor and it is to be considered. The liquidity of gold is much easier as compared to diamond. Some specific things are to be considered while liquidating the diamond.
2. Value of both gold and diamond is good. The value is to be considered while deciding the investment. Diamond has more value when it is compared to gold although gold also holds great value.
3. Inflation and economic factors are also to be checked. By knowing about the market trends you can decide which investment is good.
4. The safety concerns are also important. The guidelines and safety measures  can be checked and then the decision can be made.

These are the important factors that are to be paid attention to. Make the best decision by looking at these factors. 

Gold investment and its perks

We will start discussing the gold investment and why it’s important. The main perks of investing in gold are shared as follows.

• It’s good against inflation as the value is for the long term. Market risks are usually safe in gold investments.
• The purity of gold is good and its safety concern is good too. It can not be created artificially.
• By investing in gold you can wear it on special occasions. The designs are  great and it’s useful.
• Liquidating the gold is very easy as compared to diamond. 
• Knowledge regarding gold is easily available.

These are the perks that tell why investing in gold is good! You can invest in it wisely. Although some demerits of investing in gold include storage issues, tax related issues, etc. 

Perks of investing in Diamond

The perks of investing in Diamond are many. Check the merits and then know why it’s good to invest in it. 

• The durability of diamonds is good. One can keep them for longer time periods.
• Diamonds are beautiful and they look good. Investing in it can make you feel pretty. The look of diamonds is rare.
• The investment is good even when the economy is not good. 
• One can store it easily and then use them as per accordance. 
• The value of diamonds is great. 

These are the perks of investing in diamonds. Some demerits of it are -it’s difficult to resell diamond as compared to gold, the maintenance of diamonds is difficult. 

Right way to invest in gold

Investing in gold can be done by checking these ways. The methods that are mentioned here can help you in making the right choice. The right ways to digital gold investment here-

• Jewelleries are one of the best ways to invest in gold. You can buy gold bangles, necklaces, rings, chains for investing in gold.
• Digital gold is a safer option to invest in gold. One can invest in digital gold for getting good outcomes.
• Gold bonds are also great to be considered. Choose gold bonds by choosing the right time period.
• Store physical gold in safe space. 

Always try to invest wisely in gold for getting good outcomes. Now you can explore the right ways to invest in diamonds.

Right ways to invest in diamonds

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The right way to invest in diamonds can help you in getting benefits. The best ways to invest in diamonds are as follows.

• You can diversify your portfolio by adding coloured diamonds in it. Invest in coloured diamonds.
• Diamond stocks are also good and you can select them. Pick the right diamond stock and then get outcomes.
• Jewellery of diamonds is good too. Collect the best one and then use it accordingly.
• Some diamond companies can also be considered for investing in diamonds.

These are the right ways of investing in diamonds and one can do it. Pick the right diamond stock and invest in it. 

How to choose between gold and diamond investment

The right way to choose between gold and diamond investment is discussed here. Know about the right investment by reading points below.

• You can invest in gold if you are fond of gold jewellery. Wearing gold is good although you can choose to invest in diamonds if you like diamonds more.
• Liquidity is easy for gold as compared to diamonds. Choose gold for good liquidity.
• Consider gold funds and diamond stocks and then choose the one that is more profitable.
• Get the help of a professional and learn about market trends before choosing the investment. 

Both gold and diamond investments are good at their places. You can choose the suitable one on the basis of their features. Pick the right investment and then get good outcomes. Get in depth knowledge and then make a decision. 

Conclusion

Gold and diamond investments are great and they both have good merits and demerits. You can read this blog and then you can choose the right investment option. Gold has easy liquidity and has many methods of investment. Diamond has good stocks to invest in. Learn about the methods of investing and then decide the good option. One can decide the best option so the best results can be seen. Get the important and necessary information so that you can make the right choice. Professional help can help you in many ways. Start investing now and then get good future results. Choose the right stocks and plans for accurate outcomes.

 1. Get an Idea about the Demat Account 

A Demat account in a form of an account in data, which holds shares and other securities in an electronic format. As a result, buying, selling, holding investments become easier as it does not involve physical certificates. 

Demat account doesn’t require literacy and even an illiterate person can also open a Demat account. This is followed by another kind of identification and authorization that must rely on other media, which will be described in detail. 

 2. Picking a Depository Participant (DP) 

A depository participant (DP) is a financial intermediary such as a bank or stock broker who is registered with the depository and offers Dematerialised services. Because of this, one should hire a qualified DP that sensitivity the problems that are faced by the illiterate persons. They should be patient and should have the ability to give individual attention. Prominent DPs in India include banking institutions such as HDFC, ICICI & SBI and stock brokers such as Zerodha, Angel One and Upstox. 

It is preferable to go for an auditor DP that has a branch or agents on the ground to facilitate in the paperwork

 3. Documents Required in order to Open a Demat Account 

Hitherto, illiteracy is not a bar to open the Demat account but they are required to produce some documents. The basic documentation includes: 

• Proof of Identity: This is may be Aadhar card, PAN card, Voter ID, or passport. 
• Proof of Address: It can be electricity bill, water bill or gas bill or bank statements or ration card etc. 
• PAN Card: For entering into a Demat account the Permanent Account Number (PAN) card is compulsory. 
• Photographs: Passport size photographs are necessary and they should be recent ones for the account opening form. 

If the individual does not have the PAN card he can apply one since it is essential for any financial transaction in the country. 

4. Assistance for Signing Documents 

Another which illiterate persons encounter is the fact that they cannot sign any documents. However, there are several alternatives: 

Thumb Impression: An illiterate person while filling the application form can offer his thumb impression instead of the signature. Someone like notary or the bank official will countersign this and also the thumb impression. 

Witness Signature: A literate person within the attainable reach of the applicant for instance a family member, a friend or even a bank personnel can witness the document by putting his signature at the same place where the thumb impression of the applicant has been made. 

Biometric Authentication: A few of the DPs incorporate biometric authentication for the Aadhaar linked account openings and thus no signatures or even thumb impressions are required. This makes it easy especially to the illiterate people due to the development that has been made on the technology. 

 5. Nomination Facility 

In case of an illiterate person, it is preferable that the person named the nominee of their Demat account. A nominee is a person who will become the owner of the securities in case if the account holder dies. This affords them an extra measure of protection, and guarantees that their investments are transferred to the next of kin without much legal complications. 

The nominee can be a family member or any other person of the patient’s trust. In order to open the account, they have to submit their identity proof, photographs and proof of relationship with the account holder. 

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 6. Explaining Investment Basics 

Since an illiterate person may have limited knowledge of financial terms and concepts, it’s crucial to provide them with basic education on: 

• What a Demat Account Is: Simplifying it further for the layman to understand, it says that it actually has shares and securities electronically and as a wallet has money. 
• Stock Market Risks: Stating also that buying stocks can be risky and may even lead to loss of money put in the shares. 
• Long-Term Investments: Emphasizing the need to treat stocks as long term investment instead of making decision on market swings in case of short term loses. 

It is hoped that other family members, or qualified people responsible for managing the financial situation should get involve just for the purpose of making it easier to explain these concepts. 

 7. Digital Assistance and Accessibility 

There is always this saying that technology has a way of evening the playing ground. In spite of this, many financial institutions have presented multilingual support to a large extent in their apps and website in form of audio or voice control even if the person is illiterate. 

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Here are some options that might help:

• Telephonic Support: DPs offer a telephonic support where the representative offers to take the person through the account opening process in their language of choice. 
• Video KYC (Know Your Customer): Certain DPs provide a video KYC process where the applicant goes through a video call for him or her to be verified. In doing so, the DP representative can also share how the procedure works in layman’s terms. 

 8. Last but not the least, the Power of Attorney (PoA) Option. 

For the people who may not effectively manage their accounts on their own, it is advisable to give Power of Attorney (PoA), that is, a legal authority to someone trustworthy. A PoA holder can also exercise trade on your behalf, purchase or sell securities to enhance the account’s operation. 

 9. Periodic Monitoring and Communication 

Due to this it is recommended that an illiterate person sits down every now and then to go through his or her account and also follow the movements in the market. To avoid keeping the accountant in the dark the DP or an assistant should offer brief on the account, any dividend or any action taken. This makes sure that the particular person is updated about his or her investments. 

For more information about – What is Digital Gold Investment?

Conclusion 

To open a Demat account especially for an illiterate, it is very much possible providing the illiterate person will be getting the right direction. Equipped with these documents, thumb impression and a relative or friend’s support they can venture into the stock market and build their investments. Through proper selection of a competent DP and using technology on easy processes, people with illiteracy challenges can be allowed to invest in these markets hence having a brighter and more secure financial hope in the future. 

At the end the tale is inclusive one of helping all, the illiterate as well as the literate utilize investment opportunities. 

If you have ever been in such a situation, which of course most of you reading this article without a doubt have been, do not fret. There are some of the methods that can be used when one is trying to get back the money sent to the wrong UPI address. The following points in this guide will also explain to you the procedure and precautions which must be taken for not facing such problems in future. 

Step1: The first step that one needs to take is to remain calm and have to look at the transaction details. 

If, for instance, you have made a mistake of sending money to the wrong UPI address, you have to look for the following aspects. At times, because of small typing mistakes or some problems in writing the beneficiary’s name or UPI ID. 

 It is also good to confirm if the money has indeed gone to the wrong person. Take the UPI app that you used for transaction and see whether the transaction status is complete. If the status is “pending” or is “processing,” then there could be a possibility to cancel the transfer. 

Step 2: Contact the Beneficiary It is recommend that you contact the beneficiary to allow him or her prepare for the offer as explained below. 

In the process of making this transaction, if it has completed the other close step is to talk to the person who received the money by mistake. This is most effective if the person on the receiving end is a friend or willing to obend an ear. There is certainly a lot of trust in people and those who see that this is some kind of mistake would return the money. 

Transaction confirmation message or the UPI app will help to find the contact details of the beneficiary. Politely recount the episode and ask them to refund the money. 

Step 3: Contact Your Bank or The UPI Service Provider 

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In case the recipient does not respond or you cannot reach him/her or her account, next step is inform your bank or the UPI service provider. Each UPI transaction is corresponding to the bank account and your bank will have the record of the transaction. 

You should inform your bank’s customer care through a phone call or personally go to the branch and report it. Provide them with the following details: 

Details of time and date of the transaction 

UPI reference number 

The amount transferred 

UPI ID of the person to whom the money was sent by mistake 

It contains many details such as the UPI ID number, and bank account details. 

Every bank has its own procedure of complaints handling in terms of grievance redressal mechanism and they will advise you on how to do this. You also might be required to complete a formal dispute form in order to start an investigation. The bank on the recipient’s end will endeavor to reverse the money via the sender’s bank, having been advised of the fraud. 

Step 4: File a complaints with NPCI 

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There is also the National Payments Corporation of India (NPCI) which runs the UPI and it also has the ability to settle disputes regarding transactions made through UPI. In case your bank fails to address the concern the matter can be taken further to NPCI through a complaint. 

You can raise a complaint through the NPCI website by providing the following details:You can raise a complaint through the NPCI website by providing the following details: 

Transaction ID 

Billing identification number of the sender and the receiver 

Time of the transaction and date 

Amount of money transferred 

NPCI will look into the matter or the transaction and if they found it to be wrong then they will tell the bank in charge of the transaction to issue a refund. 

Things to do to Avoid Sending Money to Wrong server UPI Address 

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While mistakes can happen, there are ways to minimize the risk of sending money to the wrong UPI address: 

• Double-Check UPI Details: It is advisable that before finally confirming the transaction,just cross check the UPI ID or the beneficiary details to confirm their authenticity. Sending money to the right person is not guaranteed since small mistakes may send the amount to a different person. 
• Use QR Codes: Using the QR code to get to a new page does not allow for typing mistakes to be made either. Some of the UPI apps provide the consumer the choice of utilizing QR codes for a more precise payment. 
• Save Beneficiaries: To avoid making the wrong entries, especially when making the frequent payments, it is advisable, to begin with, to save the recipient’s UPI ID in the contact list. 
• Send a Small Amount First: If you are sending money to a new recipient send a small sum first to ensure all the details match. 

Conclusion

Transferring money to the wrong UPI id is quite a nightmare, but the good news is that you can get your money back if you act fast enough. The best course of action is to move fast, get in touch with the receiver and then negotiate with your bank or the NPCI. However, if the error is real, then most of the cases are cleared in the favor of the sender to some extent taking a considerable amount of time. You should always be very careful when doing any business involving UPI transaction, especially when entering the details, to prevent such experiences in future. 

Thus, this blog will describe the CPR concept in details giving this information on its calculation and application in such trading field. 

What is called as CPR in Trading?

CPR refers to Central Pivot Range that is a set of 3 significant price levels derived from the preceding day trading range. These levels are used to determine the possible support and resistance zone in the current day’s trading. CPR assists traders determine whether the market is bullish, bearish or neutral and this in a way influences their decisions. 

CPR is more applicable in the determination of short term price trends and the likely points of reversal, making it most effective within the day period. Therefore when dealing with the price level within CPR, the trader is able to make the right trades at the right time more accurately. 

How is CPR Calculated? 

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There are 3 ways to calculate the CPR, one is the Pivot point, the top central point and the bottom central pivot. Let’s have a look at their formulas and ways to calculate the pivot points.

Pivot Point (P): 

P = (High + Low +Close)/ 3 P = 3High + Low + Close 

The Pivot Point is the middle point in the range, and it becomes a basis of quotations in relation to the day’s trading. 

Top Central Pivot (TC): 

TC=(Pivot Point+High) ÷2 TC=2 × Pivot Point + High 

This level acts as a resistance level or mark the end of the range and is also referred to as the limit level. 

Bottom Central Pivot (BC): 

BC= (Pivot Point + Low) / 2 BC = 2 Pivot Point + Low 

This level acts as the lower support level to form this level as remaining at its lowest level. 

All these three levels put together make up the CPR that traders apply in determining key price points. 

Ambiguity of Students in writing CPR Levels 

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CPR can tell a price story, including tendency in direction and, the possibility of breakouts, as well as where the market may encounter subtle buy or sell force. Let’s break down how to interpret the CPR levels: 

• Narrow CPR: A narrow CPR means that the trend day is possible, or there is a breakout. It has also turned out that when the three levels of CPR – P, TC and BC – are closer to one another, it may mean that the price action is preparing for a large movement in either direction. This is the conditions most traders usually wait for to trade with breakout. 
• Wide CPR: A wide CPR indicates a sideways or ranging type of market in which the price has the tendency to fluctuate between its supports and resistances. In such situations though, traders in particular use range bound techniques whereby they buy at lower levels and sell at the upper end of those levels. 
• Price Opening Above CPR: If price opens above the CPR then the indication is that of an upward trend known as bullish sentiment which may mean that traders may be anticipating for a higher price. In this case CPR becomes a support zone. 
• Price Opening Below CPR: If the price opens below the CPR there is bearish signal. Sellers might search for potential entries thanks to the fact that the CPR is going to be a resistance point most of the time. 
• Price Trading Around CPR: When the price is near the CPR it details the fact that the market is in a state of flux. In such an occurrence, the trader should wait for the CPR to be violated clearly above or below for the next course of action to be taken. 

Application of the CPR in Trading Strategies 

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1. Breakout Strategy 

Of all the trading strategies which we have discussed today, the most commonly used one is breakout trading where CPR is often used. For trend reversals traders wait for the price to go above the Top Central Pivot (TC) or below the Bottom Central Pivot (BC) replacing the previous trend. In a breakout scenario they set their stop loss orders usually below the BC for longs and above the TC for shorts. 

Bullish Breakout: If the price rises above the TC with good momentum, oil traders can take a long position in anticipation of the prices to rise further. 

Bearish Breakout: However, if the price goes below the BC with good volume, traders should look forward to shorting it in the future. 

2. Reversal Strategy 

CPR is also used for the purpose of finding out how these markets may be reversed in the future. The other kind of pivot is the Top Central Pivot (TC) or the Bottom Central Pivot (BC) and if the price gets to them and bounces then the trader can take advantage of this kind of move as it usually forms bearish or bullish candlesticks. 

For example: 

Bullish Reversal: In case the price rises to the BC, then leans back in creating a bullish candlestick pattern, then this could be viewed as a buy signal. 

Bearish Reversal: When the price touches the TC line and fails to penetrate it and instead creates a bearish pattern then one might consider selling. 

3. Intraday Trading 

CPR is a rather effective tool in intraday trading helping determine critical price levels within a trading session. Indeed, if a trader is able to track the movements of the CPR price he or she can easily identify the direction of the market and make the appropriate trades during this period. 

Moreover, when using the CPR it can be used in conjunction with other technical tools such as moving averages, Bollinger Bands or RSI to provide signals for entry/exit. 

Conclusion 

CPR is perhaps one of the most useful tools for trading that can help a trader to get insight into the market and determine the levels of the price which might be crucial for a definite breakout. No matter whether you are trading with the direction of the trend or on the contrary, using the Central Pivot Range can deliver very helpful information to you and help with your trading decisions. It is therefore important to adopt the use of CPR in your trading plan so as to improve your chances of being right about the direction to take, how to minimize risk and make better trades. 

Fixed pay is given to employees once every month and variable pay depends on the performance. You can check out the features of fixed pay or variable pay in next sections. 

Let us share the insights upon fixed pay and variable pay. The best explanation will help you in deciding that which is better for you.

Fixed pay and its features

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The features of fixed pay are shared here and you can learn about them. The features are written below-

• This amount is given to employees in a month. A particular date is set and then the payment is transferred.
• In this form of pay the amount is given irrespective of the performance of the employee.
• If the employee has broken the rules and regulations of the company then the amount may be affected by it.
• It is good as employees have a fixed amount of earnings at the end of every month and it makes it easy for them to manage their expenses. 
• It provides security to the employees.
• In this mode the employees who put more effort are hard to notice and then it impacts their efforts. 

The fixed pay method helps employees to plan their expenses in the required amount of money. It is a very traditional method of paying employees. 

The features of variable pay

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Features of variable pay are also to be known. You can check out the features that are mentioned here. Know about them by checking them below.

• In this the employees are paid according to the performance. 
• Targets are given to employees and they have to meet them. It’s important for the employees to meet the targets. 
• In this mode the employees are motivated and it leads to better performance.
• This can impact the environment of the work. In this everyone may try to compete with each other. Friendly work environment is not maintained.
• Employees in this company don’t have any security. If the company is getting impacted in terms of losses then it directly impacts the employee too.

The unpredictable nature of variable pay impacts the employee and their income. In this the main emphasis is given to the performance.

Merits and demerits of fixed pay

Fixed pay comes with merits and demerits. The merits and demerits of fixed pay are shared here and you can check it out.

• One can get compensation if the work done is good.
• A secure payment is obtained in fixed pay.
• A good work environment is achieved.
• One can manage the expenses in a specific amount of money.

Demerits of fixed pay.

• It’s difficult to figure out who is putting in more effort than others.
• Inflation is impacted due to this.
• If performance bonuses are not considered then it can impact the employee.

After checking the merits and demerits of this you can know whether it’s good for you or not!

Merits and demerits of variable pay

Variable pay is also known for its merits and demerits. You can check out the merits and demerits by reading the points.

Merits of variable pay.

• If the performance of the employee is good then it can be very beneficial for the employee as it leads to a good increase in pay. 
• The best performer is easily identified and it’s appreciated for hard work too.
• The employees remain motivated. 

Demerits of variable pay that you need to know.

• In this a very unfriendly work environment is created as everyone tries to compete with each other.
• If the company goes through loss then the employees are affected.
• It is not a secure mode as the amount varies.

These are the merits and demerits of variable pay. It gives some advantages and some disadvantages to the employee. 

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Which pay is best for employees?

Variable pay and fixed pay both have their own merits and demerits. One needs to choose one according to one’s own interests. If you are someone who wants to be appreciated according to performance and are not bothered by variability then variable pay is the best option for you. 

Moreover if you like to have a fixed amount of pay and you want the same amount every month then fixed pay is good. It helps give security to the employee. Decide the one that suits you and then proceed with your work. 

Role of pay in the performance of employees

Be it fixed pay or variable pay, both play an important role in the performance of employees. Employees and their performance can be enhanced with help of the incentives given. If they are awarded with help of good pay then they might perform better as it will motivate them.

Companies that reward their employees are considered more productive than the others where the awards are not given. It’s best to work on all these areas so that better results can be obtained. If the employees are happy then it will definitely give good results. Fixed pay or variable pay can be decided accordingly. After considering the merits or demerits of the fixed or variable pay one can decide which one is better. Choose the one that is good for all of your needs. 

Conclusion

Fixed pay is the amount of money that is given at the end of a month to the employee. Variable pay is the performance based amount that is offered to employees. These both have different merits and demerits. One can know everything about fixed pay or variable pay in this blog. Features, merits and demerits all are included in this blog. Read this blog and then know which method of payment is more beneficial for you. You will get all the insights by reading this blog. Explore the best option and then carry on with the right one.

One needs to choose a safe and secure money transferring platform. UPI and IMPS both are used for money transfer. These methods ensure safe transfer of money. The insights upon both the payment methods is given in this blog.

You can check out this blog and you can know which payment platform is best for you. Get proper insights on digital payment methods and then decide the good one. Read the sections below.

Differences to know between UPI and IMPS

UPI and IMPS both are different and unique platforms through which your money can be transferred. You can know the difference between them by reading the points below.

• The transaction limit for UPI is Rs 1 lakh per day and the limit for IMPS is Rs 5 Lakh per day. You can see that the limit is higher for IMPS and you can transfer more money in IMPS.
• The use of UPI is done by many people and it is quite popular. IMPS IS also used but it is not that popular.
• The convenience of using UPI based apps is great. One can easily use the apps. Whereas the IMPS is less convenient and the process takes time.
• The transaction charges are also included in IMPS but in UPI the charges are not included. 
• In both the methods you can get access to payment 24/7. 

These are the main differences and you can now easily understand how one platform differs from the other one!

Merits and demerits of IMPS that you need to know

Now you have a clear idea about the differences in IMPS and UPI, it is necessary to understand the merits and demerits of the same. So let us start talking about the merits and demerits of IMPS.

The merits of IMPS are shared as follows.

• You can use this method anytime, anywhere. It gives instant transactions.
• A good banking network allows secure payments. Via IMPS you can make safe payments.
• After fulfilling the required information one can proceed towards transaction.
• It is easy and a fast method.
• The limit of transactions is also higher. It is up to Rs 5 lakh per day.

The demerits of the IMPS are shared as follows.

• Some banks may charge transaction charges.
• It is not used widely as UPI.

You can see what are the merits and demerits of IMPS. Now you know why to use it and why you should not! Now let us discuss the same about UPI.

Merits and demerits of UPI payment method

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Merits and demerits of UPI are also to be known. Check out the merits and then demerits of UPI and decide why you should choose it.

Merits of UPI are shared as follows.

• UPI is well known for its ease and convenience. One can easily make the transaction with the help of an app.
• The QR scanning further makes the process easy. 
• This platform is more secure than the other one.
• Within a short time span one can make the transactions.

Demerits of UPI are-

• For the transactions one needs a smartphone and people who don’t have access to it can not take advantage of UPI.
• The limit of transaction per day is only Rs 1 lakh.

The merits and demerits of UPI tell why you should prefer it and why you need to avoid it. Make the right choice by considering the one platform that is good for your needs.

Why are digital payment platforms being used?

Nowadays everyone is making digital payments. The process of digital payment makes things easier and it leads to the cashless era. There are many perks of using digital methods . Check out the points below.

• Digital payment makes things easier and convenient.
• The security of the transaction is also good.
• One can get access to the transaction anytime, anywhere.
• One can stay cashless as the popularity of digital payment is on peak and everyone is having access to it.
• It is very time saving and that is why it’s preferred.

You can see how great the digital payment methods are. One can use them without

any worries. Choose the platform by checking its features. You will get good outcomes by doing so. 

UPI or IMPS: Which one should you opt for payment?

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Between the UPI or IMPS you can choose the one that is suitable for you and your needs. If you want to make small payments and you want to do them instantly then you can proceed with UPI. UPI will help in making good payments in a faster way. 

If you want to do some business related transactions in a large amount at a time then IMPS is best for you. It has a greater limit of transactions. You can use it easily and securely for payments. You can make the payments without any worry. The use of IMPS or UPI is totally a choice of yours. Both the payment platforms are now being used and everyone is taking advantage of it. You can also get help from it and you can make payments.

Be cashless and take the benefit of digital payments. Doing online shopping with a digital payment method can help you in getting cash back too. Choose the platform accordingly.

You may also check out – What is Digital Gold Investment?

Conclusion.

UPI and IMPS both are the digital payment methods that help in doing the transactions safely. You can choose the platforms according to your needs of transaction. Nowadays UPI is more commonly used than IMPS. Both of them come with their own merits and demerits. This blog has covered all the points regarding IMPS and UPI.  Read the blog and then you decide which one to choose. The convenience of using,  ease, time utilised,  etc are some of the factors that are to be considered while making a decision. Read the complete blog and check which one is better for you and your needs. Start doing cashless payments and switch to digitalisation!

Angel tax comes into play in the case of start ups. When the investment of the investor exceeds the fair market value then one has to pay angel tax to the government. This tax is paid to prevent cases  of money related fraud.

The Government of India wants to boost the growth of startups in India and that is why the angel tax is now going to be abolished from the upcoming year. Let us share insights about it in the next section.

Demerits of angel tax in India

As mentioned earlier, angel tax is imposed in order to stop money laundering. Along with this merit there are many demerits of angel tax in India. Check out the drawbacks of angel tax in India.

• Investors who are looking to invest  for the first time fail to collect a lot of money.
• Lots of money is lost by paying angel tax.
• Non resident investors are not eligible for deduction of this tax.
• Investors need a great sum of money to start their business.

These are the  drawbacks of angel tax in India. Investors feel.it difficult to afford all this money and thus the start ups go through issues. 

Angel tax rate in India

The angel tax rate in India is decided on the basis of rules and regulations. The tax is levied at a rate of 30 percent if the investment received is higher than the fair market value. Income tax department needs the angel tax from the respective company or firm.

Exemption from Angel tax

The exemption from angel tax can be enjoyed if the criterias are being fulfilled. You can check out the main criterias that are required to be fulfilled for exemption from angel tax. The criterias are shared as follows.

• Share premium of the company should not exceed Rs 25 crore. The maximum capital is to be maintained.
• In case of individuals who are Non residents, the turnover of their company should not be more than  Rs.100 crores in the last  year.
• The net worth of the investor should not be more than Rs.2 crores from the last few years. It is an important criteria.
• The startup can enjoy the benefit of not paying tax in the starting of three years.

These points tell how you can be eligible for the exemption of not paying angel tax. Note these points and then get good outcomes. 

Non residents investors and exemption from angel tax in certain cases

Also, consider the link – Tax Implications of Stock Market Investments

Now it is said that non resident investors in specific fields are exempted from angel tax. The certain areas where provision of angel tax is no more required are shared as follows.

• Central banks’ investments dont need angel tax.
• Sovereign wealth funds are also exempted from this.
• Multilateral agencies are also covered in this.
• Organisation where the indirect or direct involvement of the government is present, angel tax is exempted for them.

Now they can invest freely for the best benefits. You can also study more about the new rules on angel tax. Check out the sections that are shared here.

New rules for angel tax

New rules have been proposed for the angel tax. You can check out the regulations and then you can get to know how they work. Check out the new rules and regulations that are shared as follows.

• E verification will now be continued. The verification of investors will be done easily and the long term process for the same is now replaced.
• The turnover value is now exceeded to Rs.100 crore and more.
• One can even be exempted from angel tax if the net worth of the company is Rs 250 crore and more.

The new rules bring great changes in the lives of people. They help to empower the startups in India. The finance minister of the nation has made changes in order to boost up the process of start ups. Now from the upcoming year 2025-2026 the angel tax is going to be abolished. It further creates many opportunities for young investors.

The impact of new rules of angel tax

Note – Tax Implications of Stock Market Investments

The regulations made by the government have opened many gateways  for young investors. One can check the following points to understand how great the impact is.

• Startups can now be done easily. The business requirements and other criterias will be fulfilled by them.
• The business model will be created easily and one can work according to it.
• The tax exemption gives them better investment opportunities and enables them to enjoy the opportunities.
• Better funding can be helpful for them.
• Great returns can now be taken and enjoyed.

All these are the positive impacts of the new rules regarding angel tax. New investors can now step towards the best outcomes. The next year will provide a lot of relaxation and relief to  all the  investors. Investors can start their preparation for investing rightly. 

Angel tax direct or indirect varies on the type. It is now abolished by the government in order to promote the future of startups. From last year the issues of angel tax were noticed but now they are resolved. So if you were tense about the taxes then now you can stay stress free.

You may also read our latest post – The Best Investment Plans in India for the Middle Class

Conclusion

Angel tax was given by the startup owners. The tax was given if the value exceeds the fair market value. Many rules and regulations are now changed with regard to angel tax. It was imposed to safeguard the money laundering case. From the upcoming year the angel tax is going to be abolished. One can invest without any worry. If you are a young investor then you can take advantage of it. Get the right information and start investing. You will get the best outcomes by getting the best information. Check out the blog on angel tax and then get good information.

What does the Upper and Lower Circuit represent?

The meanings of “upper circuit” and “lower circuit” are features implemented in the stock market to control the flapping of the stock prices. They are in effect price ranges approved by the stock exchange within which a given stock can transact in a given day. 

• Upper Circuit: The highest that a stock can trade at within a particular day to be permitted to continue trading. If a stock reaches it’s upper circuit, it implies that there is a limit on the number of points the price of a certain stock can move up to on a specific trading session. 
• Lower Circuit: The lowest permissible price level which may be traded in the stock exchange for a certain day. If it gets to the position whereby the stock is at the lower circuit, it then means that it has reached the lower most level under which it cannot trade for that particular trading day. 

Both of these mechanisms are meant to afford equilibrium and reduce volatility within the stock market, which is often brought about by swelling speculation, information release or change in the attitude towards the market. 

What Is the Purpose of having Upper and Lower Circuits? 

This is the main role of upper and lower circuits so as to maintain high unpredictable swings in the stock market. Lack of control of such flounders often precipitates wrong decisions by investors, panic in the market or incurring severe losses. They act like a ‘circuit breaker’ and suspend trade whenever the prices rise or drop to certain specified levels to enable investors or traders to take informed decisions. 

Here are some of the key reasons why these circuits are in place: 

• Market Stability: Price limits therefore basically mean that the hasty and rapid fluctuation of price in a particular stock is controlled by the stock exchanges. This keeps the general market in check and ensures that investors especially those in the retail segment are not exposed to high volatile prices. 
• Prevent Manipulation: Upper and lower circuits protect shareholders from the manipulations of spinning in which some traders may manipulate the prices up or down. 
• Time for Reflection: When the stock reaches either of the circuits, the trading of the particular stock may be suspended to afford investors to touch base and consider news or events that may cause them to make uninformed decisions. 
• Regulatory Compliance: Most stock exchanges around the globe especially the NSE and BSE in India or NYSE and NASDAQ in the United States are by the rules and regulation of the regulatory authorities to put in place circuit breakers to help in the control of the flow of shares and protect the investors. 

What is the Mechanism of Upper and Lower Circuit?

More to the point, the upper and lower circuit levels are fixed by the respective stock exchange as per the previous closing price affected in a stock. They are often defined in respect to the closing price of the stock of the preceding trading session. For example for a given stock that closed at $ 100 the previous day the upper circuit limit is 10% then the upper circuit for that particular day will be $ 110, the lower circuit will be $ 90. 

Check out our latest post – Long-Term vs. Short-Term Investments: Which Strategy is Right for You?

Circuit Levels 

Classification of stocks in the stock exchange is normally done depending on volatility, liquidity and market capitalization. Accordingly, different circuit levels may be set for different categories of stocks: 

• 5% Circuit: In the case of those stocks, which are either very much risky and / or thin-traded. 
• 10% Circuit: For moderately volatile stocks he will have to wait until the volatility either reduces or the price again goes up. 
• 20% Circuit: Specifically, it is applied to less speculative, and more openly traded stocks. 

Some of these stocks may experience a trading suspension which may last for a few minutes to even a few hours depending on the exchanges rules or the size of the movement. For instance, the NSE has put in place circuit limits that include 10%, 15% and 20% for Nifty 50 index in India. When the index goes high or low to such levels, the trading is suspended for a certain number of minutes. 

Effectiveness of Upper and Lower Circuits for the Investors

Read more – Tax Implications of Stock Market Investments

The concept of upper and lower circuits is important to the investor most importantly for the short-term trader. Here are some of the impacts: 

• Limited Liquidity: When any particular stock reaches its upper or lower circuit then the companies have very less floatation. For instance, it is logical to state that if a stock has reached it upper circuit then it might be rather difficult to look for sellers who are willing to sell the stock at such a price. Likewise, if a stock comes down to its circuit filter, it can be difficult to locate a buyer for the stock. This may results in positions being locked until the market is open again. 
• Market Sentiment: Meanwhile, the upper circuit is considered as a bullish signal while the lower circuit as a bearish signal. However, this is not ends with this because such movements can often be achieved through speculation instead of solid grounds. 
• Trading Opportunities: To the experienced traders they may find upper and lower circuits as an opportunity for trading. For instance, if the trader expects the stock to go up to its upper circuit, he is free to buy on anticipation of selling after the price has risen a bit. On the other hand they might short sell a stock that is expected to sink to the lower circuit. 
• Risk of Losses: As much as circuits serve to limit losses and protect the investors, they are actually circuits the opposite for retail investors. Even in cases where a stock reaches its lower circuit for several consecutive days, there could this mean a lot of loses in case the investors cannot sell. Likewise, the stocks making upper circuits can fetch a capital which could be helpful at other place. 

You may also check out – What are the best Indian stocks to buy?

Conclusion 

The upper and the lower circuit are essential to ensure that prices within the market are kept constant least they go higher or lower than the probably set limits. They saves investors from fraudulent activities and stock market crash, offer a buffer period in volatile markets, and offers an orderly trading mechanism. To the stock market investors, it is crucial to get a basic notion of how such circuits operate, for which reasons, and with what consequences. 

Mr Patel also went on to explain that the challenges and opportunities that the hitting upper or lower circuits pose to investors can be contained through education, diversification and proper risk management.

1. Nature of Ownership 

Shares: 

A share is a form of investment where one is invested on company ownership. For instance, when you buy shares you are actually a shareholder this is so because you own a part of the company. Shareholders are counterparts to the company and they own a part or portions of the company’s stocks. In this case, the concept of ownership means the degree of ownership that is invariably determined by the number of shares owned. 

Debentures: 

On the other hand, we have debt securities which include the debentures. When you buy debentures, you are actually giving out a loan to the business in question, hence making it a form of indebtedness. Total, you are not an owner in the company when you take a debenture with you as a debenture holder. Instead, you consider yourself as a secured party because you are a creditor with an interest in the company’s assets and the company is in turn legally bound to pay back the principal sum with interest. 

Key Difference: 

The shareholders are the company’s equity holders who are entitled to the claim of the company’s earnings and also on its properties. 

Thus debenture holders areóthe creditors of the firm who have a charge on the assets of the firm, but do not have ownership rights. 

2. Risk and Return 

Shares: 

As a general rule, the investment in shares is more risky compared with the investment in debentures. Facilities held through share also have the ability to change in value due to operations of the firm, general market conditions and even economic forces. On the one hand, shareholders can obtain high income in the form of dividends and increase their capital, on the other hand, they are subject to the risk of losing their invested funds, if the company’s performance is low or the company becomes bankrupt.

Debentures: 

Debentures, on the other hand, affords lesser risk to its holders, Debentures returns on investment are fixed and received in the form of interest regardless of the proficiency of the company. In fact, even when the performance of a company is weak it is mandatory for it to pay interest on debentures. But the yields of debentures are relatively lower compared to potential yields of shares of stocks. 

Key Difference: 

Stocks have high returns but with even higher risks as compared to other securities. 

Debentures offer relatively stable, but lower, returns with less risks than an equity interest. 

3. Rights and Privileges 

Shares: 

All shareholders have some privileges because they are owners of the business entity; These include: 

Voting Rights:This is in reference to the shareholder rights whereby common shareholders are entitled to have a say in major organizational issues like the appointment of the board of directors and various corporate management decisions. 

Dividends: Some of the returns that shareholders may get include dividends which are part of the company’s profits that is distributed among shareholders. However, dividends are not fixed and are paid from the organization’s profits as per the decisions of the management. 

Residual Claims:On the occasions of liquidation, shareholders come with the last priority in gaining access to the company’s remaining tangible resources after all creditors have been paid. 

Debentures: 

Debenture holders, unlike shareholders, are creditors and therefore there are limited rights given to them. In connection with the borrower, their rights are mainly linked to the repayment of the debt. Key rights include: 

Interest Payments: Particularly, debenture holders are accorded a fixed amount of interest and are payable whether or not the business made profits. 

Principal Repayment:The terms of debentures include redemption at par value at the end of the debenture period for repayment of the principal amount to the debenture holders. 

Priority in Liquidation: With regards to liquidation, it is important to note that debenture holders enjoy a higher ranking than shareholders with regard to the amount and priority of the corporation’s assets due to them.

Key Difference: 

The major benefits of shareholders are the right to vote, potential dividend receipts, and residual claims to assets. 

Debenture holders do not have any voting rights but they can receive fixed interest payments and it has been seen that they have the right to claim the company’s assets in case of its liquidation. 

4. Income Generation 

Also, read our latest post – Understanding the Basics of the Share Market: A Beginner’s Guide

Shares: 

The income for shareholders primarily comes from two sources: Dividends and capital gains. There are two main types of distributions which we have to differentiate: Dividends are the part of the company’s profits distributed to shareholders periodically, usually monthly or quarterly. Capital gains include changes in the value of the shares over time and this will enable shareholders to dispose of the shares at a higher price than what they paid. 

Debentures: 

Debenture capital earns its money by way of interest, which is usually specific and payable at specific times (for example annually or semi-annually). The interest rates are fixed at the time of issuing the debentures and the income received through them is in fact not a profit. The principal amount is also to be paid at the maturity date which is not the case with shareholders at any given time. 

Key Difference: 

The two ways through which shareholders are able to make their returns are by means of dividend and capital appreciation. 

Debentures receive interest in a fixed amount and therefore are considered as sources of revenue. 

5. Tax Implications 

Shares: 

Dividends as well as any gains from shares are also subjected to taxes. dividends are usually treated differently to ordinary income tax and capital gains are taxed on a basis of holding period being either short term or long term gains. 

Debentures: 

Even the interest received on debentures is paid after tax has been deducted. But this is subject to the normal tax rates as other forms of income and there are no zero percent taxation like in the case of dividend income or capital gains from investments held for over a year. 

Key Difference: 

Dividends received by the shareholders are also subjected to taxation and with much preferential rates in case of capital gains. 

On the same note, the holders of Debentures are subjected to tax on the interest income received on their Debentures at the normal tax rates.

Read more – Dividend Investing: Portfolio for Passive Income and Passive Income Strategic Planning

6. Convertibility and Flexibility 

Shares: 

It can be mentioned that shares are usually non-immutable and it means that they cannot be exchanged for other types of securities. However, the concept of the share can also be segmented into classes like preferred shares and others with features such as conversion to common share under certain times. 

Debentures: 

While some debentures are fully paid, they may be fully paid with provision on the holder’s side to exchange them with shares in the company at a specific rate after some time. As for this feature, debenture holders are provided with the capacity of capital gains in case of excellent performance of the company’s shares. Convertible debentures also contain both the security features of a debenture and the potential for the growth of an equity. 

Key Difference: 

Most shares are non –convertible although there can be some special attributes in the preferred shares. 

There are secured debentures that enable the companies to become convertible debentures that give the option of converting them into share capital. 

You may also check out the link – What are the two classes of stock and stock market- a detailed discussion

Conclusion 

Thus the key difference between share and debenture holders considers the nature of the investment made by each of them. It is the major investor who has full control of the company through the voting rights of shares that they own has the direct equity interest in the firm’s profits and assets, potential high returns though with higher risk taking. Like any other debt financing, the debenture holders have a fixed income and relatively lesser risk compared to the equity shareholders but no controlling rights or the possibilities of a large appreciation in their investment.

Many benefits of gold investment are present which makes it popular. You can also get the best results by investing rightly. This blog is for those who want to invest in gold. If you are also interested in gold investment then you need to check this blog.

Go through all the sections of this blog and know how you can get superb results. Invest in gold for great outcomes. The sections below will solve all of your queries. 

Reasons to invest in gold

If you are thinking of investing in gold then that’s a very good thing. Investment in gold can be great. The main reasons to invest in gold are shared as follows.

• It is a very good method of saving money.
• Investing in gold requires less maintenance. You can get benefits in low maintenance.
• The stability is good in gold investment. 
• It is good for future generations too. 
• There are plenty of options to choose from while investing in gold.

All these are the reasons to invest in gold. Make sure that you are choosing the right method of investment. Get the best benefits by investing nicely. 

Also, consider the below link- The Best Investment Plans in India for the Middle Class

Different ways of investing in gold

Investment in gold can be done in various ways. You can check out the methods of investments. The main methods are discussed as follows.

1.Purchase physical gold- Investing in gold by purchasing it in physical form is a nice thing. You can buy gold coins, gold bars, gold jewellery , etc. This can be used later according to need. Shop for great and pure quality of gold for good investment. Best gold will give you the best results. Insurance of gold is to be done.

2.Gold ETF- Gold exchange traded funds can be helpful too. In this you do not have to buy physical gold. The gold assets are used by many people. It just behaves like funds. It has great liquidity and is useful too. You can add gold in your portfolio. Track the gold price movements and then obtain best results.

3.Gold mining stocks- Gold mining stocks are very important. Find out a good company that can be used for mining stocks. This ensures good results. Risk is included in this but it’s worth considering. You can choose the gold mining stock for best outcomes.

4.Digital gold- Digital gold can be very beneficial. Many sites offer this investment opportunity. You can save the digital gold in digital lockers. Withdrawal of cash can be taken anytime. People have now started investing in digital gold for best benefits.

There are many ways of investing in gold. You can invest in gold in many different ways. Choose the method that suits you. If you are willing to explore the best methods then gather the best insights for superb outcomes. Make investments rightly and then get good results.

Which gold investment is good: digital or physical?

Digital or physical gold investments are the two options that can be chosen. You can choose the one that is helpful for you. Check out the features of digital and physical gold investment.

• Storage- Physical gold comes with issues related to storage. Digital ones can be stored easily.
• Counterparty risk- The counterparty risk in physical gold depends on the platform and most of the time it is zero. In the case of digital gold it depends on the funds.
• Trade- Physical gold is not traded and digital gold can not be traded as well. 
• Purity- The purity of the gold depends on the source of the seller in case of physical gold. In digital gold the purity is great.
• Investment- In physical gold it varies and in digital cases it can be as low as Rs 1.

You can now determine whether the digital gold is good for you or the physical gold. Take the right decision and then get the best results.

Read more about – What is Digital Gold Investment?

Risks associated with gold investment

Some risks are also present in gold investment. You need to know about the risks associated with gold investments. The risks are shared as follows.

1.Digital gold requires the best regulation. Only limited options are present of digital gold. One needs to choose wisely.

2. Market risk is associated with gold investments. One needs to know about the market risks before investing in gold. It’s best to know about the market so that you can invest accurately. Keep an eye on market trends and then get good results. 

3.Different instruments have different risks. Read about the investment options nicely and then get good results. Manage risks effectively.

4.If you invest at the right platforms then the risk can be managed. Diversification can also help in managing things. Do proper research for saving time and effort. Look for the safest options and then enjoy the gold investment opportunities. 

All these are the main things that you need to consider while investing in gold. Take the right steps to save yourself from risks. Invest in gold and then achieve good results. For your future generation you can start investing now. Do proper research and then get good results.

Check out – What is Digital Gold Investment?

Conclusion.

Investing in gold can be helpful for you. You can make right investment choices by researching properly. Check out this blog and then discuss how you can invest in gold. This blog is a perfect guide for you. Take proper steps and action while investing in gold. Choosing pure quality of gold is required. Read this blog and get detailed information about it. You will reap many benefits by investing in gold. Do not skip any section and then see how greatly you can obtain results. Take your investment to another level by gathering the best information. Take help of a broker or any other professional while investing in gold.