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Karlee Ferry

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Mutual Fund vs SIP: Know Which Is The Best Investment Option You

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Being an investor, you must have always wondered which one is better: a SIP or a mutual fund. In this article, we will tell you all about sip vs mutual funds so that you can make an informed decision about your next financial investment. SIPs and mutual funds are high-risk investment options that also allow higher returns in the long run. While a mutual fund is an investment instrument, an SIP is a component of mutual funds and is the investment method. To find out which investment option is best for you, read on.

What is a Mutual Fund?

In mutual funds, money is pooled by an asset management company consisting of experts and professionals from individual investors and then reinvested in various companies. It is a high-risk, long-term scheme where the individual gets to decide their risk tolerance and, depending on their financial objectives, can invest in equity funds, debt funds or hybrid funds, and more. 

Benefits of Mutual Funds

  • The biggest advantage of mutual funds is that the assets are managed by professionals and experts who analyze and invest in suitable companies. 
  • A mutual fund offers several payment methods, including one-time lump sum payments and regular investments, making them a viable option for people with large amounts of money ready for a one-time investment and for people who want to invest small amounts regularly. 
  • Investors can manage risk by investing in various industries and companies, allowing investors to diversify portfolios. The risk associated with one asset class is offset by the risk associated with the other, allowing investors to avoid losing their entire investment if one of the assets experiences a rough period.
  • The minimum tenure of mutual funds is one day, and the maximum tenure is limitless. 
  • For expert investors, mutual funds allow them to find customized investment plans according to their investment needs.
  • Mutual funds are high-impact investment schemes.

What is a SIP?

A SIP or a systematic investment plan lets you regularly deposit small amounts of money in any mutual fund scheme. The first important aspect while understanding the difference between SIP vs mutual fund is that SIP is a component of mutual funds. Beginners and salaried personnel often prefer it since it allows for regular staggered investment and can be a viable long-term investment option. Starting a SIP is extremely simple and eliminates the need to monitor interest rates since the investments are made regularly.

Benefits of SIP

  • The biggest advantage of SIP is the tax benefits people get when investing in SIPs for over a year. 
  • SIPs are beginner friendly since they are easy to start, and one can track their assets according to their convenience. 
  • SIP offers periodical investment options like weekly, monthly, or quarterly and is thus preferred when income flow is consistent, aka salaried investors.
  • Since the SIPs are in open-ended funds, it lets you withdraw and deposit money whenever you want. 
  • SIP allows you to profit through rupee cost averaging. When the market is down, you can purchase more units and increase your purchasing value. Similarly, when the market is high, you can purchase fewer units. 
  • The tenure for SIPs is a minimum of one day and a maximum of three to five years.
  • SIP is a low-impact investment method.

Conclusion

Based on the benefits above, it becomes apparent that both mutual funds and SIPs offer a high return on investment yet are also risky. The final decision to invest in SIP vs mutual fund depends on the investment method that aligns with your financial goals, investment objectives, asset allocation, and risk profile. 

 

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In Business

How to Keep Customer Engagement Sky High With Dynamic Customer Conversation

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In the past, marketing was a one-way affair. You would make your pitch and hope that customers would take the bait. Today, however, things are different. Marketers have learned that there’s real power in two-way communication — in listening to what your customers want and responding to them quickly and appropriately. The idea is called conversational marketing and it can help you build stronger relationships with customers who might otherwise leave for greener pastures or forget about you entirely. This article will explain how conversational marketing works, why it works so well, why some marketers are still skeptical, and how you can use this strategy to increase your customer engagement.

Customers like to be heard, and they like to be acknowledged

When customers engage with your brand, they want to feel like they are being heard. Customers want to know that their needs and opinions matter. Most of all, customers want to feel valued and respected by the companies they do business with.

To make sure that you are keeping customer engagement sky-high, your brand must be able to keep up with the changing ways in which customers communicate with businesses today. 

Conversational marketing works because it acts as a magnet for low-hanging fruit

Using conversational marketing is a great way to reach people who are already interested in your product or service. And why wouldn’t they be? If you’ve got something good going on with your brand, then odds are that others are already talking about it and sharing thoughts about what makes it so great. These conversations form the foundation of this type of engagement strategy – they’re where people start to share their ideas and experiences around what makes your product special, which creates an environment that fosters engagement.

This also means that it will be easier for you to engage with them because they’re already interested in what you have to offer. You won’t have to spend time convincing someone who isn’t already interested in making the switch from their current provider. Instead, all you have to do is provide them with easy access through email campaigns or tools like Intercom’s messaging features.

Use conversational marketing to nurture customers through the long term

Next, you want to use a conversational marketing tool to nurture customers through the long term. This will help your customers find the right product, solution, and answer. At this stage in their journey, you can use conversation marketing tools to allow them to engage with you in a natural way and gain access to the information they need at exactly the right time.

Give each customer a highly personalized experience

When you provide customers with personalized, relevant experiences at every touch point along their journey, they will feel like they are getting the very best service. And when you listen closely to what they have to say and act on it, you build trust and loyalty that lasts for years. This is conversational marketing in action—and it’s an approach that makes customers happier than ever before.

If you can’t bring yourself to mention sales directly, try a softer sell

Like most things in life, there is no one-size-fits-all approach to conversational marketing. However, it is recommended to use personalized messages and tailor them to each customer’s needs at different points in their journey. This way you can nurture customers through the long term while also making sure they always have relevant information handy.

Conclusion

Conversational marketing offers a whole new world of possibilities, and it’s up to you to explore them. The best thing about this strategy is that it has no set path. It can be as simple as sending a customer an automated message that thanks her for her loyalty or congratulates her on reaching a milestone—or it can be complex enough to include live chat sessions with your team members or customized ads based on what your customer likes to buy from other companies in their industry. It all depends on where you draw the line between traditional marketing messages and those personalized touches that make customers feel like they matter most at all times during their interaction with you.

 

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In Business

Best Renovations for Your Investment Property

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If you have invested in property, you may be tempted to leave it as it is and hope that house prices will increase soon. However, there are many improvements that you can make to your investment property that can increase its value and ensure that it is a comfortable and desirable space for any tenants you choose to rent out the space to. Here are some of the best improvements that you can make to your investment property. 

Basement Conversion

Many basements are dark and damp spaces that serve no purpose in a house but to chill and store food and unwanted possessions. To raise the value of your investment property, you should consider converting this basement into a unique and exciting space for the next owners of the house to use. For instance, you could consider transforming your basement into an additional living space or entertainment room. This can be an excellent option for multi-generational families and those who entertain guests often. The basement can then be filled with televisions, video game consoles, and traditional gaming tables like pool tables. This can help your house appeal to modern families. 

Fireplaces

When you are looking to improve your investment property, you should also consider investing in a few fireplaces. These fireplaces can help to warm each room and can add a little bit of elegance and sophistication to the space. These are features that are now desired by home buyers to both heat the house and create a warm, inviting atmosphere, and these are especially sought-after in older homes that would have originally contained these features. You should consider investing in fireplaces for your investment property from companies like stonewoods.co.uk. Start by checking out their showrooms to give you an idea of what you could work for your home. They will be able to make the process of installing your fireplace much easier. 

Create New Bedrooms and Bathrooms

The more essential rooms your property has, the more it will sell for. You should transform any spare rooms in the property into bedrooms and bathrooms that can accommodate large families and ensure that no one must wait for hours each morning to get washed. You should install modern furniture and fixtures into these bedrooms and bathrooms and try to ensure that they are as spacious as possible so that the space appeals to those living within it. However, you should not create more bedrooms and bathrooms in your investment property for the sake of it, and you should consider whether there is room and whether the bedrooms and bathrooms will be practical before you decide to make any lasting changes to the layout of your property. 

When you have invested in property, you may want to make the most out of this property by updating it and ensuring that it will reflect the needs of the modern families who may live there. From creating new rooms to installing essential features, there are many changes that you can make to ensure that you get a big return on your investment.  

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In Finance

13 Genius Hacks to Get the Most Out of Your Debit Card

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  1. Get a cash advance.

If you need cash in a pinch, your debit card can be a lifesaver. Most cards will allow you to take out a cash advance at an ATM, and you can often do this without incurring any fees. Just be sure to repay the amount as soon as possible to avoid high interest rates.

  1. Use a debit card instead of a credit card.

If you’re trying to avoid debt, using a debit card instead of a credit card is a smart move. Debit cards don’t come with the same high interest rates as credit cards, so you’ll save money in the long run. Plus, you’ll be less likely to overspend if you’re using your own money instead of borrowing from a lender.

  1. Avoid foreign transaction fees.

If you’re traveling abroad, one way to save money is to use a debit card that doesn’t charge foreign transaction fees. These fees can add up, so it’s worth doing some research to find a card that won’t penalize you for using it outside of the country.

  1. Get cash back with your purchase.

Some debit cards offer cash back rewards when you make purchases. This can be a great way to save money, and it’s usually easy to find a card that offers this perk. Just be sure to read the fine print so you know how much cash back you’ll earn and if there are any restrictions on where or how you can get it.

  1. Pay bills with your debit card.

Paying bills with your debit card is a great way to avoid late fees and keep track of your spending. Many companies will allow you to set up automatic payments, so you never have to worry about forgetting to pay a bill again. Plus, you can usually get a discount on your bill if you use your debit card to pay it.

  1. Use your debit card to save money on groceries.

If you use your debit card to pay for groceries, you can often get a discount. This is because many stores offer loyalty programs that give you points or cash back when you use their cards. Just be sure to keep track of your points so you don’t overspend.

  1. Get discounts at gas stations.

Many gas stations offer discounts to customers who pay with their debit cards. This is usually a percentage off per gallon, so it can add up to a big savings if you fill up often. Just be sure to check with the station ahead of time to see if they offer this discount.

  1. Use your debit card to get a hotel discount.

If you’re looking for a way to save on your next hotel stay, try using your debit card. Many hotels offer discounts to customers who pay with their debit cards, so it’s definitely worth considering if you’re looking to save some money. Just be sure to check with the hotel ahead of time to see if they offer this discount.

  1. Get cash back at restaurants.

Some restaurants will give you cash back when you use your debit card to pay for your meal. This is usually a small amount, but it can add up if you eat out often. Just be sure to ask the restaurant ahead of time if they offer this perk.

  1. Use your debit card to buy lottery tickets.

If you’re feeling lucky, you can use your debit card to buy lottery tickets. Just be sure to check with your state’s lottery commission to see if this is allowed.

  1. Get a discount on movie tickets.

Many movie theaters offer discounts to customers who pay with their debit cards. This can be a great way to save money if you enjoy going to the movies. Just be sure to check with the theater ahead of time to see if they offer this discount.

  1. Use your debit card at the library.

If you have a library card, you can often use it to borrow books, movies, and other materials. Just be sure to return them on time so you don’t accrue any late fees.

  1. Get cash back when you shop online.

If you shop online often, you can usually get a percentage of your purchase back in the form of cash back. This is a great way to save money, and it’s easy to find a card that offers this perk. Just be sure to read the fine print so you know how much cash back you’ll earn and if there are any restrictions on where or how you can get it.

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In Finance

Top Things You Must Know About Option Strike Price

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Choosing the right option strike price is one of the most crucial decisions to make while options trading. It is basically the price at which you can exercise an options pattern. Besides choosing the expiry date, this is the most crucial part of options trading. In this blog, we will discuss some of the most important things to consider when picking the option strike price. Keep reading!

Things to Know When Choosing the Option Strike Price 

Following are some important considerations regarding the selection of option strike price in options trading:

  1. Identify the Right Market 

 When it comes to trading options, there is a range of markets you can choose from. These include commodities, forex, and indices. Besides, you also need to consider the time horizon for your option. You can either choose monthly or weekly. 

2. Choose the Right Options Strategy 

The right options strategy will determine how, when, and for what strike price you’ll exercise an options trade. There are several things to consider here, such as how your options are priced, and the difference between purchasing or selling calls and puts. 

3. Take Into Account Your Risk Tolerance 

Your risk appetite directly affects the option strike price. It is no hidden fact that options markets are highly volatile and you will need to get familiar with the Greeks before starting your trade. The reason behind this is simple, they are among the key factors that affect the value of options. Apart from this, implied volatility also plays a huge role in calculating the risk involved in options trading. Note that implied volatility offers an estimated value of the expected volatility of an option based on the changes in the current price. Implied volatility directly impacts the price you pay for the option’s premium. The higher the implied volatility, the higher will be the premium.  

4. Analysis is Very Important 

Once you know your risk appetite, you should proceed further by performing some technical as well as fundamental analysis on the market you’re planning to carry out your options trade. This can greatly help in understanding why market prices are the way they are at present. Plus you also get an idea as to whether or not your option trade will result in profit or loss. 

5. Choose Your Option Strike Price By Working Out the Options Value 

Determining the value of an option is undoubtedly one of the most crucial but difficult parts of options trading. Note that there are two types of option values: time value and intrinsic value. 

 

Intrinsic value is nothing but an inherent value of an options contract. It is calculated as the difference between the strike price of your option and the current price of the asset underlying it. Time value on the other hand is the extra amount of money that a buyer is willing to pay over a certain intrinsic value. Buyers usually do this when they believe that options will see a hike in value before their expiry date. 

 

In a nutshell, intrinsic value comes into the picture only for options that are in the money. This is because the options that are out or at the money don’t have any kind of inherent value associated with them. 

Time value, on the other hand, is calculated as the difference between intrinsic value and the option premium. Moreover, the option premium is the sum of time value and intrinsic value. 

 

So, for choosing an options strike price, you need to consider all the factors we have mentioned above. You need to carefully select your strike price after analyzing the volatility of your target market. Once all of these factors are considered, you can start trading your options by opening an account. 

 

 

 

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