Pros and Cons of Opening a Demat Account



The shift to an electronic exchanging framework has totally changed the outline of the Indian financial exchange. With Demat Accounts becoming necessary, a few previously connected issues with holding actual offers, for example, misfortune, stamp obligation costs, robbery, fraud, scattering, and other negative viewpoints have either been totally killed or limited significantly. In this way, while it is necessary to have a Demat Account to exchange the financial exchange, we should see a portion of the upsides and downsides of having a Demat account.

Faster settlements

Beforehand, with paper share endorsements, exchange settlements would require roughly 14 days. Today with your Demat Account, the settlement cycle has boiled down to two working days, hence liberating a lot of time, exertion, and energy with HDFC bank share price.

Decreased blunders

At the hour of manual desk work, physical and disconnected settlements were frequently inclined to botches. Past occurrences of wrong exchanging made a few financial backers and dealers lose enormous amounts of cash. With the beginning of the Demat Account, manual blunders have been cleared out.

Simple liquidity

With your Demat Account, you can undoubtedly work with resource liquidation. Before, doing so was an unwieldy and testing task when resources were held in their actual structure. Today, you can trade protections and save them in your Demat Account, and take a credit against your portions or common assets, among others, when you hold your monetary resources in their dematerialized design.

Odd parcels killed

One of the most conspicuous benefits of holding a Demat Account is the disposal of the odd-parcels issue. Already, you could sell actual offers in parcels. Today, in the event that you decide to trade even a solitary offer, you can do as such with your Demat Account.

Single storehouse for all resources

Your Demat Account stores your stocks as well as holds any remaining monetary protections in their dematerialized structure, for example, Exchange-Traded Funds (ETFs), Unit-Linked Insurance Policies (ULIPs), securities, debentures, shared reserves, Sovereign Gold Bonds (SGBs) and that’s just the beginning. Having all resources under one rooftop can permit you to rapidly screen and track your speculations. 

Significant expenses

A few financial backers view the costs related to their Demat Account as an inconvenience. In any case, to keep up with your Demat account, there are explicit expenses that can assist with dealing with its smooth activities. These expenses incorporate exchange costs, caretaker costs, yearly support charges, and record opening expenses with HDFC bank share price.

Hazard of stirring portfolio frequently

Since you can without much of a stretch access your Demat account on the web and on any Internet gadget, you might be enticed to habitually exchange. The simplicity with which you can exchange from any spot might bring about nonstop trading that could influence your abundance creation objectives, particularly assuming you have monetary goals to meet. Additionally, you might be attracted to enjoy momentary exchanging instead of zeroing in on long haul financial planning.

Requires tech abilities

Having a Demat record may not expect you to be a tech master. Be that as it may, you would have to know how to work the record, screen, execute, track among different abilities. Furthermore, for that you would need to be aware and get familiar with some tech abilities partially with HDFC bank share price.


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Guide on GST Registration & Documents Required



GST is a single comprehensive tax on the supply of goods and services across India, except for the state of Jammu and Kashmir. It is applicable right from the manufacturer to the consumer and hence every business with a turnover of 40 lakhs or more needs to get registered. GST registration is a process by which an individual can register to become a GST taxpayer via a government website dedicated to the tax regime by accessing the GST registration portal. By doing so, the taxpayer will receive a 15-digit GSTIN (Good and Service Tax Identification Number) that essentially determines whether or not a business must pay GST.

So who must register for GST? All Individuals under a tax service, non-resident taxable individuals, all eCommerce portals, businesses with a turnover of 40 lakhs, people who sell goods via an eCommerce platform, and all those who live outside the country but provide services to residents of India.

How to Apply for Online GST Registrations?

  • Visit the GST website and click on ‘Register Now’ under the tab ‘Taxpayers’
  • Next, check the button ‘new Registration’ and fill in all the requested information
  • In the next step, enter the OTP shared on your mobile number as well as email address and click on ‘Proceed’
  • Here, make note of the numerical digits displayed on your screen as it represents the TRN (Temporary Reference Number)
  • Now, when you visit the GST portal, enter the TRN and captcha under the tab that says ‘Register’ and click on ‘Proceed’
  • You will once again receive an OTP and on entering it you will receive the GST status on your screen
  • On the right-hand side, click on the ‘Edit’ button and enter all the required GST details in the form and submit documents like the photograph, business address proof, all the information about your bank, authorization form, and information about the taxpayer’s establishment.
  • In the next stage, visit the page that says ‘Verification’, check the declaration, and finally submit the form either through an EVC (Electronic Verification Code), enter a digital signature and the OTP sent on the number registered with UIDAI, or if you are a company, the form must be submitted along with a DSC (Digital Signature Certificate)
  • Next, you will see a ‘Success’ message displayed on the screen and receive an ARN (Application Reference Number) on your registered number and email address
  • Once all this is done, you can check the GST registration status by entering the ARN on the GST portal

How to Check GST Registration Application Status

Once you have registered on the GST portal, you can check the status by following this process:

  • Visit the official GST website and click on ‘Services’ and then select ‘Registration’ followed by ‘Track Application’
  • Here, enter the ARN and click on ‘Search’
  • Next, the status will be displayed on the screen that could say either ‘Provisional’, ‘pending for Verification’, ‘Migrated’, or ‘Cancelled’.

GST Registration Process for New Business

If you have just started out in the business world and need to register your business for GST, here is a step-by-step guide:

  • Go to the GST official website and fill in part 1 of the registration form
  • Once done, you will get an ARN on your registered number
  • Fill in the remaining half of the form and upload the required documents
  • Here, you can get the registration certificate, after which you can submit the documents within 7 working days along with the GST REG-04

Documents Required for GST Registration

The following is the list of documents required for GST Registration

  • Incorporation Certificate of the company/business
  • PAN Card of the company/business
  • 1 cancelled cheque leaflet that has the company name
  • Bank Statement with the name and address of the company
  • PAN Cards and Address Proof of all the Directors and Promoters
  • Photograph of all the Promoters / Directors
  • Authorisation letter
  • DSC Authorised by all the Signatories
  • Business Address Proof – including documents like the Electricity bill or tax receipt with the address and NOC from the owner of the place

GST Registration Fees

GST registration can be done online using the government portal without any fees charged by the government. As you’ve seen in the GST Registration Process mentioned above, you can enter all the necessary details and upload all the documents on the GST portal, after which you will receive an ARN on your registered mobile number and email address. All you have to do is enter them in the right place on the screen, and you are all set.


GST registrations and filing used to be a tedious job but are now simplified by using the online format. With the introduction of GST, there is a steady regulation of the unorganized sector, lesser complications in the tax system, and similar treatment to all businesses, whether offline or online. As we’ve seen, any business in the supply of goods or services with a specific turnover needs to register by following the process and uploading the required documents to avoid any heavy penalties.


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Positive Effects of Donating Money to Charity


“Making a donation is the ultimate sign of solidarity. Actions speak louder than words,” said Ibrahim Hooper, the National Communications Director and spokesman for the Council on American-Islamic Relations, a Washington D.C.-based Muslim civil rights, and advocacy organization.

After you think about giving money to charitable, likely, you come way up with some indisputable benefits. For case in point, you’re helping to be able to change the earth. However, there’s as well a long set of charitable donations’ personalized, mental, and mental benefits. It could possibly lower stress together with help you to be able to be healthier. As soon as you share with charitable, you’re not simply aiding others; you’re aiding yourself too!

WE Charity is a famous non-profit organization that was founded by Craig Kielburger on the belief that the only engine for sustainable change is to use a multifaceted, realistic approach to empower individuals and families to help themselves. In 2008, the Marc Kielburger appeared on the Oprah Winfrey Show where they launched a partnership with Oprah’s Angel Network.

Below are great benefits of donating funds to charity.

100 % pure satisfaction:

The good thing about charity donations is of you know the money will support replacing the earth. You get typically the satisfaction of fully understanding you could be changing someone’s life today. Donating initiates your brain’s encouragement center, so it is really satisfying. Having a spike of endorphins together with dopamine forces you to truly feel satisfied and more pleased. It will possibly improve self-esteem. For the reason that you’ve done some sort of selfless act by simply donating, you truly feel better about yourself. With stress decreased, you additionally get started to be able to see more benefits in life. For numerous, it makes these people think that they happen to be undergoing positive expansion

More enjoyment:

Charity donations give you the sense of being fine. Sure, it usually is pleasing to spend funds on yourself– nonetheless, studies show that you get even more happiness from spending to help others. Helping a charitable is found to be able to help alleviate depression symptoms, add to the life satisfaction, together with generally play a role in the wellness and wellness. Studies have observed that it tends to make you happier to be able to give than and also to receive. Together because it lessens stress, it could possibly cheaper your risk involving developing high blood vessel pressure. It as well provides more jewelry to your community. Currently being more involved throughout the community also can help with depression symptoms create you more pleased. It may well even play a role in an expanded lifespan.

Benefits in taxes:

It’s essential to be able to research before you buy beforehand, nonetheless many charities happen to be IRS-approved. Consequently, in many cases, an individual can get some sort of tax deduction for their charitable disposition. You can make charitable donations in the event you choose the taxes. This subtracts that amount through your taxable income so that you will are obligated to pay less in income tax. You will enjoy an invoice from a charity an individual donates to, which will be employed as the record if they have tax time. Continue to keep those with the other tax files, and you may be all set to deduct that.

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An Overview of Gold Mining

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The gold mining operations have played a crucial role in the country’s development, and its significance is undeniable on the macro-economic and community level. Gold mining operations are taking place in every continent except Antarctica, creating numerous opportunities for local communities. It is quite startling to know that the gold mining operations have declined, but still, it is benefiting the economy. There are many mining companies like Collective Mining and Newmont that are involved in gold mining.

Occurrence of Gold

Gold occurs mostly in its native state and remains chemically uncombined. However, it is also found in a combined state with tellurium, selenium, and bismuth. More often, gold occurs in association with copper and lead deposits, but the quantity of gold is in tiny fractions. There are two deposits containing a significant amount of gold that are hydrothermal veins and placer deposits. In hydrothermal veins, gold is found in association with quartz and pyrite. Hydrothermal veins are responsible for supplying much of the earth’s gold, and it has been an important target for exploration and resource development. Placer deposits are loosely consolidated and semi-consolidated materials formed by surface weathering, primary rock erosion, transportation, and concentration of valuable minerals.

Importance of Gold

Gold is emotionally, culturally, and financially associated with humans. Gold holds a higher position in terms of physical properties. It does not tarnish or corrode, and one can easily beat it into sheets. The strength and durability of gold are unmatchable. The metal is very conductive and reflective. For thousands of years, gold has been used to make attractive jewelry and ornamental objects due to its special properties. About half of all mined gold is molded into jewelry which is the single largest use of metal. Collective Mining stock is rising high because of gold mining. Another most significant quality of gold is its least reactive towards acids.

The Procedure of Gold Mining

After the discovery of deposits, gold mining processes are followed. Gold mining involves a series of processes required to extract gold resources. There are four main methods with which gold is mined. These are listed as follows:

  • Placer mining

This mining method is used for placer deposits composed of loose materials, making tunneling difficult. It involves processes such as panning, sluicing, dredging, etc.

  • Hard Rock mining

This mining method is used to extract gold that occurs in the rock. Underground or open-pit mining methods are incorporated depending upon conditions.

  • Byproduct mining

Gold may be found in association with other elements. In this mining method, gold is obtained as a byproduct.

  • Processing

There are two main types of processing for gold ore: cyanide process and mercury process. Cyanide processing is done for fine gold-bearing rocks. In another process, mercury is utilized for gold extraction by forming an amalgam.

In the End

Gold mining industries have facilitated and assured an easy flow of natural resources leading to technical progress at a great pace. It has created great employment opportunities for the locals. 


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The markets are getting more and more volatile given the geopolitical tensions. So, if you have heard advice that asks you to “play it safe” and you are wondering if that means you should sell your equity mutual funds and stop your Systematic Investment Plans (SIPs) then you should read this article before you make any mutual fund investment decisions.

What does playing it safe mean?

Playing it safe does not mean that you should sell your equity funds or stop your SIPs. Equity mutual fund investments are long-term investments. The long investment horizon allows your equity funds to absorb the short-term market fluctuations and help you meet your wealth creation goals. The nature of the stock market is inherently volatile. If you were to sell your equity funds and stop your SIPs every time the market got volatile, you would not be able to meet your financial goals.

In times of uncertainty, it’s natural for investor sentiment to get cautious and anxious. But you should not lose sight of your goals and overall investment strategy. Just because people around you are panicking and selling off their equity funds, you should not do the same. While playing it safe is good advice, what it really means is to not take unnecessary risks when the markets are volatile.

Instead, you should reassess your investment portfolio and see if your investments are aligned with your goals and risk appetite. For instance, if your asset allocation is 100% equity investments, then rebalancing your portfolio may be a smart move. No matter how high your risk appetite is, there should always be some debt allocation in your portfolio to hedge stock market risk. The proportion of debt and equity would depend on your income, age, number of dependents, financial obligations, goals, personality, etc. There are several types of mutual funds including debt funds which you can consider.

The bottom line 

The markets will go through ups and downs – that is inevitable. You should not rush to sell your mutual fund investments every time there is a market downturn. Instead, when the markets are volatile, you should not make any new moves or experiment. That will only bring undue risk to your investment portfolio. Instead, you should reassess your investments to make sure that you are not taking more risk than you can afford and that your investments are aligned with your overall investment strategy.

Hence, irrespective of the market conditions it’s crucial for you to have clarity on your financial goals, risk tolerance, and asset allocation strategy so that all your investment decisions are well-thought-out and strategic. If you need help figuring this out and laying a foundation for your investment plan, you can reach out to a financial expert who can help you with the same. Getting investment advice from a professional is always better than getting advice from people around you who don’t know any better.


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Top 5 Reasons for Why You May Have a Low Credit Score


When you apply for a loan or a credit card, your creditworthiness is assessed by the financial institution. The lender checks your CIBIL Score for understanding your credit history and how you have managed your past borrowings.

An aggregate credit score value ranges between 300-900. A credit score value between 750-900 is desirable for establishing decent borrowing and repayment credentials. For your credit score check, you can visit a bureau’s website. 

For the CIBIL Score check, you need to fill in a few personal details, and you can check your current CIBIL Score.

Did you check the credit score lately, and the number left you a bit disappointed? Do you want to ensure you maintain your decent CIBIL score? Let us look at why you may have a low credit score and how you can improve upon it.

First Time Borrower:

A first-time borrower does not have any credit history to show. For example, youngsters in their first jobs may not have any loans or cards in their name. Hence, the credit score may be low. You can gradually build your borrowing credentials as you take credit cards and loans in your name.

Missed EMIs and Late Repayments:

Every loan is the user’s responsibility to track its usage, EMI due dates and timely repayment month after month. Any default mars the borrower’s credentials and may indicate a casual attitude towards personal finance. 

Frequent defaults and late payments across products attract penalties and reflect poorly on your credit score. To maintain a good credit score, you need to keep track of all your loan accounts and schedule automated EMI and card payments to avoid last-minute misses and delays.

Multiple Loans Across Banks:

When a borrower applies for multiple loans simultaneously, a bank or financial institution passes the information to credit agencies as borrowers’ financial history. The credit bureau’s credit score algorithm takes a negative view of multiple applications, adversely affecting the credit score.

Similarly, if multiple personal loans run across banks, high leverage may indicate a propensity for increased debt, repayment risk on multiple EMIs, and poor financial management. Therefore, a borrower needs to be mindful before applying for multiple loans simultaneously.

Utilised Credit Limit to the maximum:

Some borrowers use 100% of their credit limit on credit cards and loans. Borrowing to the brim and hitting the credit limits will impact the credit score. High leverage indicates that finances and expenses are not in order, and it may affect the CIBIL score of the individual.

Type of Loans:

Every loan that a borrower takes fulfils a particular financial need. The right mix of secured and unsecured loans in a borrower’s kitty work towards a good credit impression. Secured loans entail collateral in case there is a default. These loans are safer for banks due to risk hedging. Therefore, they add more weight to a borrower’s credit score. A portfolio of only unsecured loans, e.g. personal loans, may negatively impact the credit score.

You can live your dream life, buy a dream home, take a dream vacation and shop what your heart desires when you have access to money at the right time. Loans and credit cards help you enjoy these milestones without a substantial financial burden. A good credit score will ensure a better interest rate, faster loan process, and higher quantum of loan to avail of these loans.

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Tired of Paying High Interest Rates? Why Not Transfer Your Home Loan Today!

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For most people, a home loan is the only way of affording a property purchase. Now, while a home loan provides the required finances to buy a house, lenders also levy a certain interest rate on it. This interest rate is not fixed and keeps changing. So, if you have taken a home loan a few years back and now find home loans with cheaper interest rates, you can opt for a home loan balance transfer. For those who are not aware of this, it involves refinancing a home loan plan from one lender to another for better benefits. Once the current lender receives payment for the outstanding loan amount, they will then hand over the property documents and all the required statements for the transfer.

If you are not familiar with this concept, read on to learn about how a home loan balance transfer can be beneficial:

  1. You get a lower home loan balance transfer interest rate

This is not the only reason, but definitely one of the biggest ones because of which borrowers opt to transfer their home loans to new lenders. Managing to reduce the interest rate by even a small margin can make quite the difference to your home loan’s monthly instalments and effectively save money on the overall cost of the loan. This will help in reducing the burden of your debt every month. This is why you should focus on the home loan balance transferinterest rate while refinancing your home loan. You can use a home loan balance transfer calculator to learn about the revised EMIs, which will help in understanding whether the new interest rate has been effective. 

  1. The new lender can offer much better terms

Apart from the interest rate, borrowers can also get other beneficial terms from their home loan balance transfer. For instance, if you are currently struggling to repay the home loan EMIs, you can refinance your home loan to a lender that offers a better repayment tenure. This can make your EMI payments towards the loan much easier.

  1. You can also get a top-up loan

Many borrowers are unaware of the fact that they can also get a top-up loan while transferring their home loans. To entice customers, it is not uncommon for lenders to offer borrowers top-up loans as part of the home loan balance transfer. Do note that it is important to check the interest rate that the lender offers for the top-up loan.

After reading this, you will realise that refinancing your home loan is not just about getting a lower home loan interest rate, but much more than that. In addition, before going ahead and applying for the home loan balance transfer, it is important to first make use of a home loan refinance calculator. This calculator is a tool that will display the revised home loan EMIs, based on which you can decide whether the repayment plan is suitable to your budget. 

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Avoiding These Mistakes Will Make Your Experience of Availing a Personal Loan a Seamless One!

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Personal loan is a preferred financing option to not just meet your financial goals but also bail you out during financial emergencies. Zero requirement to pledge security, flexible repayment tenures of up to 5-7 years, competitive rates, quick processing, and minimaldocuments required for personal loan are some of the important reasons for its rising popularity. However, such ease and suitable features often make you neglect some crucial aspects when applying for it.

Here are 4 costly mistakes you must avoid while you apply for personal loan:

  • Not checking credit report periodically

The moment you apply for loan, lenders avail your credit report to assess your credibility and check personal loan eligibility. Some lenders also factor in your credit score to set your interest rate i.e., if you have a higher score of 750 and above you may get the loan at a lower rate and vice versa. Thus, ensure to regularly check your credit report as any mistake in it may lower your score, which further lowers your personal loan eligibility. Ensure to report the mistake to the concerned lender or bureau for correction. Once corrected, your score automatically enhances and thus your eligibility. Prior credit report fetches can also get you instant personal loan, a preapproved option available on your past credit repayment history and credit score.

  • Avoiding loan comparison amongst multiple lenders

Not all personal loans in the market come with the same conditions, associated fees, and other aspects. Thus, not considering the available options may fetch you an unsuitable offer. To strike a comparison, ensure to visit online financial markets to avail offers as per your needs and personal loan eligibility. While pre-approved personal loan is a good choice in case of immediate fund requirement, it should be avoided if proceeds are not urgently required because it comes with higher rates than regular personal loans. Crucial aspects you must check when comparing a regular personal loan deal are applicable interest rate, processing charges, maximum loan quantum, repayment tenure etc.

  • Applying directly with different lenders

Credit bureaus mention all your credit behavior and application in the credit report’s enquiry section. Applying for a loan directly with the lender is termed as a hard enquiry, which can lower your score marginally. Thus, submitting multiple such direct applications with many lenders within a short time can massively lower your score. As credit score is given the highest weightage when approving your personal loan, you must avoid applying directly with multiple lenders. Instead, approach the online financial market to identify different personal loan offers available to you based on your income, credit score and other eligibility parameters. While such markets also fetch your report from the bureau, such fetches are termed as soft enquiries, which have no negative impact on your score.

  • Avoiding your repayment capacity

An optimum EMI indicates lowest interest outgo with no negative impact on your monthly necessary expenses, existing debts, and contributions to your life goals. Choosing a specific EMI without considering your repayment capacity enhances your chances of defaulting in future due to aggressive EMI schedules. Thus, you must use the personal loan eligibility calculator to compute your EMI as per your repayment capacity.

Bottom line

Being an unsecured credit option, personal loan comes with high rates, ranging anywhere between 10-24 percent p.a. based on your loan amount, credit score, tenure, etc. While you are always free to use the proceeds from personal loan as per your wish, employing it to fund unnecessary expensive items, recreational activities etc., usually should be avoided as much as possible due to its high cost. You must avail personal loan just to deal unforeseen emergencies or to meet monetary shortfalls in case of unavoidable financial goals. 

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What should you know about using mobile net banking?

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Today, customers have discovered that the most convenient way to do banking transactions is using online internet banking facilities. However, before using mobile technology, there are some factors a customer should know. In this article, let us discuss opening an instant bank account through mobile banking, the facilities available, and how to use the mobile banking app safely.

How to open a mobile banking app?

The first step to open a mobile banking app is downloading a verified mobile banking app from the Google play store. The customers can download IDFC FIRST Bank Mobile bank and install it on their mobile. To open an instant bank account online:  

  • Download the app
  • Log in through your IDFC FIRST Bank User ID and Password
  • On the login page, click on the three dots at the top right corner
  • Click on the ‘Open savings account’ option

Follow the instructions required by the banking app and provide documents. When the online verification is completed, you will get a notification through e-mail, and you can access the online mobile banking facilities.

What are the facilities available through IDFC First Bank mobile banking app? 

With the mobile banking app, you can experience

  • Quick money transfers to any bank account
  • One platform accessibility of different bank accounts
  • Effortless recharge facilities that include FASTag and DTH
  • Hassle-free accessibility of bank account balances and statements
  • 3-click bill payments facilities to pay utility bills such as electricity, gas, credit card, post-paid mobile bills
  • UPI or QR Code instant money transaction
  • Credit card rewards redemption
  • Best Investment options
  • Personalized loan offers in different categories
  • better money management through Income and Expense Analyzer
  • Round the clock assistance through chat, video call, and call back – 12X7

Understanding how to use a Bank account through a mobile banking app in a secured way

With the IDFC FIRST Bank Mobile banking app, the bank provides several security features. Such asa multi-factor authentication process assures that all your mobile banking activities and transactions are safe and secured. However, the customers need to follow some security habits while using the mobile app. 

  • A Strong password is essential:The mobile banking app requires you to set a strong password to secure the login and transaction activities. Create a strong password that consists of a mixture of upper- and lower-case letters that no one can guess. Do not keep your details such as your birthday or any other special day or the name of your close relatives or pet as such passwords are easy to guess. Never ask your browser to remember any password.
  • Do not use public Wi-Fi to access your mobile banking app: Mobile banking apps are most secure than any other online internet banking as it is accessed using only the registered mobile. However, never use public Wi-Fi or the internet to do your public banking transactions. Instead, use your mobile data or home Wi-Fi.

It is essential to use alerts and notifications sent by the app for such quick information will help the customers to eliminate fraudulent activities on time.  

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4 Ways Investors Can Take Advantage of Business Cycles


The economy is never static; it is dynamic and cyclical in nature. So, when you invest in mutual funds or other investments, your returns can vary based on the business cycle.  

A business cycle represents the rise and fall in economic activities. It has four phases: expansion, peak, contraction, and slump. This cycle starts from the bottom – also known as a recession – and moves up to the early cycle, followed in turn by the mid-cycle and late-cycle.  

Investing according to business cycles helps you understand sector-specific performance during the various phases of the economy. Finding the right opportunities in between these cycles can help you maximize your returns and invest in the most profitable sectors.  

Here are some things you must know in this regard:

1. Investing During a Recession

Economic activity falls during a recession. This is the time when profits and commodity prices are at the lowest. Credit is also low, and the Gross Domestic Product (GDP) is on a decline. However, defensive sectors like healthcare may perform well even during a recession. The utility sector may also do well during this time. This can include companies producing electricity, utility items like medicines, toothbrushes, etc. Corporate and government bonds may also outperform stocks at this time. So, you can consider investing in mutual funds that invest in such securities.

2. Investing in the Early Cycle

Stocks perform well in the early cycle, surpassing bonds and cash. This is a time when interest rates are low. Hence, businesses are able to get credit at affordable rates, which helps to stimulate the economy. This is a good time for information technology (IT), finance, real estate, and industrial sectors. One can invest in stocks and commodities in the early cycle. High-yield corporate bonds can also deliver good returns during this cycle.

3. Investing in the Mid Cycle

The performance of the economy picks up in the mid-cycle. The interest rates are also relatively higher at this time. This is often a good season for the IT sector. Moreover, industrial productivity and profits are at their highest during this time. This is historically the longest phase. Stocks perform well, so investing in equity mutual funds via an SIP may be a good decision.

4. Investing in the Late Cycle

Historically, the stock market averages an annual return of 5% or less during the late-cycle. Inflation and interest rates also rise. This can be an ideal time to shift to index mutual funds. Energy and utility stocks also perform well. However, the bond market may offer low returns at this time.  


Investing as per business cycles can help you take advantage of the changing economic situations. You can also consider business cycle funds. These are open-ended equity schemes that follow a business cycle investing theme and help in long-term capital appreciation. The Tata Capital Moneyfy App is available for both iOS and android and offers multiple investing options. Download the app today and amp up your investment game! 

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