Traditionally, spending within your means is the best way to manage your finances and remain financially healthy. By understanding some of the fundamental principles about credit and banking, you will be able to make better, more informed financial decisions. You will also be in a better position to plan your financial future while still enjoying the occasional indulgence.
At MasterCard, we believe that it is important to keep in mind that managing your credit facility responsibly will help you build a better financial future. Read on for some smart tips that will assist you in enjoying financial flexibility and to avoid debt.
Remember that a credit card is not the same thing as free money.
Charge only what you can afford to pay back – avoid living beyond your means.
Pay charges back in a timely fashion, in order to avoid interest charges on the remaining balance.
If you change your address, it is important to notify your credit card issuer to make sure your account statements are delivered promptly. This will help you avoid fees for late payments.
Always check your monthly statement and call the bank if there are any disputed entries. Your monthly statement itemizes your purchases, which also allows you to track your spending patterns in order to eliminate unnecessary spending.
If you have questions, call your issuer. The number can be found on your card and on your billing statements.
Sunday, July 12, 2009
3 Easy Steps for Analyzing A Mutual Fund
Step 1: Find out whether the scheme matches one’s investment objective. It is important that the scheme’s philosophy matches your investment philosophy. For instance, if your investment style is conservative, the fund manager’s investment approach should be conservative or vice versa. Or, if you prefer to invest in growth stocks, your ideal choice would be investing in equity growth funds.
Step 2: After identifying a fund compare the same with its peers or relevant benchmark. For example if your equity fund (index) has given a return of 20% find out how much Sensex has given in the same period. Also compare this fund’s performance with other similar equity funds investing in similar companies.
It is very important to find out the right category of the fund. For example if the fund invests only in mid caps, its right benchmark will be BSE Mid Caps and right peers will be funds that also invest only in mid caps and NOT those which invest in large caps or small caps.
Step 3: Moreover, analyze the performance of fund over a longer period of time i.e. how much return the fund gave in the last 5-yr, 1-yr and 3-months. Simply do not go by its performance in the last 1 month or the last 3 months. Prepare a small table (given below) to analyze the historical returns. These data are publicly available and does not require much effort to collect.
Step 2: After identifying a fund compare the same with its peers or relevant benchmark. For example if your equity fund (index) has given a return of 20% find out how much Sensex has given in the same period. Also compare this fund’s performance with other similar equity funds investing in similar companies.
It is very important to find out the right category of the fund. For example if the fund invests only in mid caps, its right benchmark will be BSE Mid Caps and right peers will be funds that also invest only in mid caps and NOT those which invest in large caps or small caps.
Step 3: Moreover, analyze the performance of fund over a longer period of time i.e. how much return the fund gave in the last 5-yr, 1-yr and 3-months. Simply do not go by its performance in the last 1 month or the last 3 months. Prepare a small table (given below) to analyze the historical returns. These data are publicly available and does not require much effort to collect.
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