Vrid

We're thrilled to announce a major update to our app. We've been listening to your feedback and have added some incredible new features to help you manage your finances more effectively. These features include mutual funds tracking for select funds, detailed spending habits insights, daily & weekly summaries with reminders, budgeting, blog and more. At Vrid, our primary goal is to build the Smartest Personal Finance Management App. We are still in the early stages of the app. And we would like you to be part of the app in the initial stages and help us improve it. Build it with your likeness. Start taking control of your finances with Vrid today! Download the app and embark on your journey towards financial freedom. Download now - https://lnkd.in/gE8c4kga Note - Vrid requires SMS reading permissions for seamless transaction tracking. The app never reads any confidential messages, such as OTP and messages received from personal numbers. We value your privacy and assure you that your data will be handled with the utmost security and confidentiality. #personalfinance #investing #money #tracking

Should You Use the Stable Money App to Invest in Fixed Deposits? Is it Safe, Convenient and Reliable? 🤔 Investing in FDs has long been a favourite among Indian investors seeking a safe and reliable way to grow their savings. With banks offering fixed returns, minimal risk, and flexible tenures, FDs are often the go-to choice for risk-averse individuals. But as times change, so does the way we invest. Gone are the days when you had to visit a bank to open an FD. Now, with just a few taps on your phone, you can invest from the comfort of your home. Enter Stable Money, an app designed to streamline the FD investment process. 👉 What is the Stable Money App? Launched in 2022, Stable Money is a digital platform that enables users to invest in FDs across multiple banks without ever setting foot in a branch. The app aims to simplify fixed-income investments by offering a marketplace for comparing FD rates, investing, and managing all your deposits in one place. Instead of checking with individual banks for FD rates, Stable Money merges them, allowing you to pick the best option and invest directly through the app. It also integrates with partner banks, so you don’t need to open multiple accounts to diversify your investments. Once registered and KYC-verified, you can seamlessly invest in FDs offered by various banks. 🔒 Safety First: Is Your Money Secure with Stable Money? When it comes to investments, especially for risk-averse FD investors, safety is paramount. So, how does Stable Money stack up in terms of security? 🔹 Bank-Backed Security: It's crucial to understand that when you invest through Stable Money, your FDs are still with regulated banks, not with the app itself. This means your investments enjoy the same level of institutional security as they would if you invested directly with the bank. 🔸 DICGC Protection: Just like traditional bank FDs, your deposits made through Stable Money are protected by DICGC up to ₹5 lakhs. This insurance applies per bank and depositor. 🔹 Regulatory Compliance: Stable Money operates under the guidelines set by the Reserve Bank of India (RBI). The app adheres to strict KYC norms, ensuring that only legitimate investors can use the platform. 🔸 Data Security: In the digital age, data privacy is a significant concern. Stable Money claims to use bank-grade encryption to protect user data and transactions. However, as with any digital platform, users should remain vigilant about their personal information. While these safety measures are reassuring, it's worth noting that the app itself is relatively new. As with any FinTech platform, there's always a potential for unforeseen security challenges. Users should stay informed about the app's evolving security measures and any reported issues. We invested in FDs through Stable Money to check whether it’s convenient and reliable. Check out what we found in our blog. Link in the comments. #fixeddeposit #investments #money

Alpha Index Funds Explained: Are They Worth the Risk? How Are They Different from Momentum Index Funds? 👉 What Are Alpha Index Funds? Alpha index funds differ from the regular index funds most people are familiar with. While a traditional index fund simply tracks a broad market index (like the Nifty 50 or Sensex 30), an alpha index fund tries to do something more ambitious in passive investing—it aims to outperform the market, also known as generating "alpha." ⚡ In investment terms, alpha is the measure of excess returns generated over a benchmark index. For example, if an alpha index fund outperforms the Nifty 50 by 2%, that 2% is the alpha. 👉 How Are Alpha Index Funds Formed? An alpha fund is typically formed using a strategy called factor-based investing. This involves selecting stocks based on specific characteristics that have historically led to superior performance. 🔹 Jensen's Alpha: This is a key metric used to form alpha funds. It measures the excess return of an investment relative to its expected return based on its risk level. Stocks with positive Jensen's Alpha are prioritized for inclusion in the fund. 🔸 Selection Process: For example, the Tata Nifty 200 Alpha 30 Index Fund selects the top 30 stocks from the Nifty 200 Index based on their Jensen's Alpha scores. This means that only those stocks that have consistently outperformed their benchmarks are included. 🔹 Ranking Stocks: The selected stocks are ranked according to their alpha scores. Only the top-performing stocks are included in the fund. 🔸 Regular Rebalancing: The fund is typically reviewed and adjusted quarterly to ensure it stays aligned with its strategy. 👉 Historical Performance: Alpha Index Funds vs. Broader Index Funds Let’s get to the burning question—how have alpha index funds performed compared to broader index funds like the Nifty 50 or the Sensex 30? Over the past 10 years, the Nifty 200 Alpha 30 has returned 25.2% annually, whereas its benchmark Nifty 200 has returned only 14.6%. 🤯 ⚡ That means if you had invested ₹1 lakh in the alpha index 10 years ago, it would have grown to around ₹9.5 lakhs. The same amount in the Nifty 200 would have grown to just ₹3.9 lakhs. So, yes, historically, alpha investing has shown convincing performance. However, it’s essential to note that past performance is not indicative of future results. And while alpha index funds have shown the potential for higher returns, they are also more prone to short-term fluctuations. Read more about the risks of investing in alpha index funds, how they are different from momentum index funds, when you should invest in them and when to avoid them in our blog. Link in the comments. #mutualfunds #investing #alpha

Where Should You Invest for Your Short-Term Goals? Here Are the Top 5 Essential Short-Term Investments 👇 Are you sitting on some extra cash and wondering where to park it for the next 1-3 years? Maybe you're saving up for a big purchase, like a car or a dream vacation. Or perhaps you just want to make your money work harder while you figure out your long-term financial goals. Whatever your reason, you're in the right place. We're diving into the world of short-term investments - perfect for those under 3-year goals. We'll break down your options, compare them, and help you figure out which one might be right for you. 👉 The Short-Term Investment Landscape When we talk about short-term investments in India, five options often come up: 🔹 Fixed Deposits (FDs) 🔸 Debt Mutual Funds 🔹 Arbitrage Funds 🔸 Equity Savings Funds 🔹 Conservative Hybrid Funds But how do you choose? Well, we'll be looking at each option through three important lenses: Safety: How secure is your money? Liquidity: How quickly can you get your hands on your cash if needed? Post-tax returns: What's left in your pocket after the tax “tai” comes knocking? Before diving into the specifics of each investment option, it’s essential to understand what short-term investments are. Typically, these are investments that you plan to hold for a period of less than three years. ⚡ The primary goal of short-term investing is to preserve capital and maintain liquidity while not losing money to inflation. Let's dive in! 👉 1. Fixed Deposits (FDs) Fixed Deposits are like the daal-chawal of Indian investments - simple, familiar, and gets the job done. 🔹 Safety: FDs are among the safest options out there. Most FDs are offered by banks, which are regulated by the RBI, ensuring that your money is in safe hands. Even if a bank fails, the DICGC offers insurance cover up to ₹5 lakh per depositor. 🔸 Liquidity: FDs have a fixed tenure, usually ranging from 7 days to 10 years. You can break an FD before maturity, but you'll face a penalty of around 0.5%-1% of the interest. Some banks offer sweep-in facilities that improve liquidity. 🔹 Post-tax returns: The pre-tax returns on FDs are fixed and generally range from 6% to 7%, depending on the tenure and bank. However, the interest earned is fully taxable according to your income tax slab. This means if you fall under a higher tax bracket (30%), your effective return could drop significantly. 👉 Suitable for: 1. Investors looking for guaranteed returns with minimal risk. 2. Senior citizens who get slightly higher rates. 3. Those who are in the lower tax brackets. 4. If you need money at a fixed point in the future, like for a short-term goal, FDs can offer predictability. Read more about debt mutual funds, arbitrage funds, equity savings funds, conservative hybrid funds and which are the best investment options based on your investment time horizon and tax situation in our blog. Link in the comments.

What Are Momentum Index Funds? Should You Invest in Them? 🤔 Have you ever watched a cricket match where a batsman starts hitting sixes and fours, and suddenly it seems like they can do no wrong? That's momentum in action. Now, imagine if you could apply this concept to your investments. Enter the world of momentum index funds – a fascinating investment strategy that's gaining traction in India. Momentum index funds are mutual funds that invest in stocks that have been performing well recently. The idea is that stocks that have been going up will continue to go up, and stocks that have been going down will keep going down. ⚡ These funds aim to capitalise on this momentum by buying the stocks that have been rising and selling them once they start to lose steam. It's like creating a team with the in-form players, hoping their excellent form continues. Currently, the Nifty 200 Momentum 30 Index is the most popular momentum fund in India. It selects 30 stocks from the Nifty 200 based on their momentum score and rebalances the portfolio regularly to ensure it holds the highest-performing stocks. 👉 How Have Momentum Index Funds Performed Historically? Now, you might wonder – does this strategy actually work? Let's look at how momentum funds have fared against the broader market. Over the past 10 years, the Nifty 200 Momentum 30 has returned 23.3% annually, whereas its benchmark Nifty 200 has returned only 14.6%. 🤯 That means if you had invested ₹1 lakh in the momentum index 10 years ago, it would have grown to around ₹8.1 lakhs. The same amount in the Nifty 200 would have grown to just ₹3.9 lakhs. So, yes, historically, momentum investing has shown convincing performance, but it comes with certain caveats. 🔹 Outperforming Broader Indices: There are periods where momentum index funds have outperformed broader index funds (Nifty 50, Nifty Midcap 150, etc.). For example, in bullish markets when the economy is growing rapidly, and investors are optimistic, momentum stocks tend to ride the wave and deliver higher returns compared to the broader index. 🔸 Underperformance in Volatile Markets: On the flip side, momentum funds underperform in highly volatile or bearish markets. When the market sentiment changes rapidly, high-flying stocks can quickly fall out of favour, and this affects the momentum funds negatively. In such periods, broader index funds may hold up better. For instance, during the COVID-19 pandemic, momentum stocks initially dropped faster than the broader market. However, in the subsequent recovery, many momentum stocks also rebounded sharply, sometimes outpacing broader index funds. ⚡ Thus, while momentum index funds have shown the potential for higher returns, they are also more prone to short-term fluctuations. Read more about the risks of investing in momentum index funds, when should you invest in them and when to avoid them in our blog. Link in the comments. #mutualfunds #momentum #investing

How Can You Protect Your Finances During a Recession? 😱 Imagine the economy is like a big, bustling market. During good times, everyone's buying, selling, and making money. But sometimes, this market slows down. People start buying less, businesses struggle, and jobs become harder to find. That's what we call a recession. In technical terms, a recession is when a country's economy shrinks (or "contracts") for at least six months in a row (two consecutive quarters). But for us regular folks, it means things get a bit tougher financially. 🤔 But how does this impact you? Let’s break it down with an example. Imagine you work for a company that manufactures mobile phones. When people have money, they buy new phones, and your company is doing great—profits are high, and salaries are paid on time. But what happens if the economy enters a recession? Consumers will tighten their wallets, maybe postpone buying a new phone, or stick with their old one for a while longer. This decrease in demand means your company may cut costs, and that could translate to layoffs, salary cuts, or even job losses. This is just one way a recession can affect your life directly. 👉 How Does a Recession Affect Your Finances? Let’s dig a little deeper into how a recession can affect your personal finances: 🔹 Job Loss or Pay Cuts: One of the most immediate effects of a recession is the increase in unemployment. Companies may lay off employees to reduce expenses or impose pay cuts to stay afloat. Remember how many people lost their jobs during the 2020 pandemic? That's what can happen in a recession. 🔸 Rising Cost of Living: Even though inflation often slows down during a recession, some essential items might still become more expensive due to supply chain disruptions or production slowdowns. You may find your grocery bill increasing even as your salary reduces. 🔹 Investment Losses: The stock market tends to take a hit during recessions. Stock prices may drop significantly, reducing the value of your investment portfolio. If you have mutual funds, stocks, or even property, the chances are high that their value will decline during an economic downturn. 🔸 Difficulty in Getting Loans: During a recession, banks and financial institutions become more cautious with lending. It becomes harder to qualify for loans, and if you do get one, the interest rates may be higher, making borrowing costlier. Now that we’ve painted a clear picture of how a recession might affect your financial situation, remember: recessions are a normal part of the economic cycle. They come and go. The key is to be prepared. ⚡ So, let's talk about how you can protect your finances when the economic weather gets stormy. Read 10 steps to protect your finances during a recession in our blog. Link in the comments. #recession #personalfinance #money

What If There Was No Inflation? 🤔 Imagine walking into your favourite chai shop and ordering a steaming cup of masala chai. You reach for your wallet, ready to pay the usual ₹10. But wait! The price tag now reads ₹12. Sound familiar? This, my friend, is inflation in action. Inflation annoys us all and makes us wonder - what if inflation simply didn’t exist? Let’s explore this idea - what if there was no inflation? 👉 What is Inflation? At its core, inflation is the general increase in prices of goods and services over time. Inflation affects everyone. If your salary stays the same but prices go up, you can't buy as much with your money. But if your salary increases along with inflation, you can maintain your standard of living. This showcases how inflation quietly chews away at the purchasing power of our money. But what causes this persistent increase in prices? 👉 Several Factors Contribute to Inflation 🔹 Demand-Pull Inflation: This occurs when the demand for goods and services exceeds their supply. Think of a popular new smartphone model that everyone wants. If there are more buyers than available phones, prices will naturally go up. 🔸 Cost-Push Inflation: If the cost of producing goods increases (like higher raw material or labour costs), businesses often pass these expenses on to consumers through higher prices. 🔹 Monetary Inflation: When the government prints more money without a corresponding increase in economic output, each rupee becomes less valuable, leading to higher prices. Now that we've got a handle on what inflation is, let's explore an intriguing question: What if there was no inflation at all? 👉 A World Without Inflation: Economic Utopia or Hidden Nightmare? Imagine waking up to a world where prices never change. Your morning chai always costs ₹10, your favourite biryani remains priced at ₹99, and movie tickets stay frozen at ₹150. Your salary from 10 years ago would still have the same buying power today. Sounds perfect, right? 👉 The Appeal of Zero Inflation 🔸 Predictable Costs: In a world without inflation, businesses and consumers would find it easier to plan their finances. You could save for a car, a house, or a vacation knowing exactly how much it would cost in the future. 🔹 Stable Wages: With no inflation, wages would remain constant, and the purchasing power of your salary would stay the same. There would be no need for annual salary hikes just to keep up with rising prices. Now, at first glance, a world without inflation might seem like an economic paradise. Who wouldn't want stable prices and the ability to plan for the future without worrying about rising costs? But as we peel back the layers, we'll discover that this seemingly ideal scenario comes with its own set of challenges and complications. In our blog, you will read more about the hidden downsides of zero inflation and whether inflation is necessary. Link in the comments. #inflation #money #personalfinance

What is the Core and Satellite Portfolio Strategy? Is it effective? Should you use it? 🤔 If you're just starting out on your investment journey, you might find yourself overwhelmed by the sheer number of strategies available to build a well-rounded investment portfolio. One such strategy, which is both effective and popular among seasoned investors, is the Core and Satellite Portfolio Strategy. This strategy allows you to balance risk and return while keeping your portfolio diversified and aligned with your financial goals. In this post, let’s break down what this strategy is all about, how it works, what assets you should consider for core and satellite investing, and the benefits and drawbacks of adopting this strategy. 👉 What is the Core and Satellite Portfolio Strategy? The Core and Satellite Portfolio strategy is an asset allocation approach that divides your investments into two distinct parts: Core and Satellite. It combines the benefits of passive and active investment strategies. The core of the portfolio is typically made up of low-cost, passive investments that track major market indices. This component aims to provide stable returns with minimal volatility. The satellite portion, on the other hand, consists of actively managed investments that seek to outperform the market, offering the potential for higher returns. 🤤 Imagine you're making the perfect pizza. You start with a solid base – that's your dough, sauce, and cheese. This foundation is crucial, right? But then comes the fun part: adding toppings that give your pizza that extra zing! That's exactly how the Core and Satellite strategy works for your investments: 🔹 The Core: This is your pizza base. It's the largest chunk of your portfolio (usually about 70-80%) and consists of stable, low-risk investments that form the foundation of your wealth. 🔸 The Satellite: These are your toppings. The remaining 20-30% of your portfolio is allocated to potentially higher-risk, higher-reward investments that aim to boost your overall returns. 👉 What Assets Should Be Part of the Core and Satellite Portfolio? Understanding the market, financial products, your risk profile and goals is crucial when selecting the right assets for your core and satellite portfolios. Read more on the assets to be part of the core and satellite portfolio, how the core and satellite strategy work practically, the benefits and drawbacks of this strategy, and when you should use this strategy in our blog. Link in the comments.

Have you ever felt lost in the maze of personal finance? You're not alone. Many Indians struggle to understand the basics of managing their money effectively. But what if there was a guide that could simplify these complex concepts and set you on the path to financial freedom? Enter "Let's Talk Money" by Monika Halan 📕 Let’s discuss whether you should read this book and whether this book acts as a comprehensive roadmap designed to simplify complex financial concepts and provide actionable steps. 👉 Why should you care about this book? 🤔 🔹 It's written for Indians, by an Indian: Most personal finance books in the market are written from a Western perspective. But Halan's book is tailor-made for the Indian context. It considers our unique financial landscape, cultural attitudes towards money, and the specific challenges we face. 🔸 It speaks your language: Forget the jargon and complex terms. Halan breaks down financial concepts into simple, everyday language that anyone can understand. It's like having a friendly chat about money with a knowledgeable relative. 🔹 It's practical and actionable: This isn't just theory. The book is filled with real-life examples and step-by-step guides that you can immediately apply to your financial life. Now, let's explore the major points covered in the book and how they can kick-start your personal finance journey. 👉 7 Major Points Covered in Monika Halan's Let's Talk Money 🔸 Understanding Your Relationship with Money Halan starts by helping you examine your attitudes and beliefs about money. Many of us have inherited unhealthy financial habits or misconceptions from our families or society. By identifying these, you can change your mindset and develop a healthier relationship with money. This self-reflection is crucial. It's the foundation for making better financial decisions. Once you understand why you behave the way you do with money, you can make positive changes. 🔹 Creating a Solid Financial Plan The book introduces the concept of a "money box" – a simple yet effective way to organise your finances. This helps individuals track their finances better and instils discipline in spending and saving. By allocating funds to specific purposes, such as an emergency fund or investment accounts, readers can create a clearer picture of their financial health. This system gives you a clear structure for managing your money. It ensures you're not just earning and spending, but also saving, investing, protecting yourself from financial shocks, and giving back to society. Check out the other 5 major points discussed in the book and our thoughts on whether this book stands out from other books or not in our blog. Link in the comments. #money #personalfinance #books

Budget announcements are always a mixed bag of expectations and surprises. For many of us, the key question is: how will these changes affect our day-to-day finances? 🤔 The Union Budget 2024 has dropped, and boy, does it have some surprises in store for our personal finances! It has introduced several significant updates, particularly in areas like capital gain taxes, asset holding periods, indexation, etc. Let's break down the major updates that could affect your hard-earned rupees, shall we? 👉 1. Capital Gains Tax: A New Playing Field Let’s start with something you might have heard a lot about - capital gains. Basically, it’s the profit you make when you sell an asset like stocks, property, or gold for more than you bought it for. And yes, the government always wants a piece of that profit. Remember how we used to juggle different capital gain tax rates for various assets? Well, the government decided to simplify things – but not necessarily in our favour. The Big Change: A uniform 12.5% tax rate on long-term capital gains (LTCG) for all assets and a 20% tax rate on short-term capital gains (STCG). What it means for you: 🤔 🔹 Equity and equity mutual funds: The LTCG tax jumps from 10% to 12.5%. And STGC tax jumps from 15% to 20%. Ouch! 🔸 Debt mutual funds: No change here, both LTCG and STCG are taxed at slab rate. 🔹 Gold and real estate: The LTGC tax rate has been reduced from 20% to 12.5%. STCG is taxed at the slab rate. The silver lining? The ₹1 lakh exemption on equity LTCG has been increased to ₹1.25 lakh. So, your ₹1.25 lakh of profit every year from stocks and equity mutual funds remains tax-free. 👉 2. Holding Periods: The Long and Short of It The holding period is the duration for which an investment must be held to qualify as a long-term capital asset. The budget has changed the holding periods for certain assets: 🔸 Gold: 24 months (down from 36 months) 🔹 REITs/InvITs: 24 months (down from 36 months) Basically, the Government has laid out a simple rule. Investment in all the listed assets including stocks, equity mutual funds, bonds, Gold/Silver funds & ETFs, REITs/InvITs, etc will be considered long-term if the holding period is over 12 months. And investments in all the unlisted assets like physical - real estate, gold, bonds, and stocks will be considered long-term only if the holding period is over 24 months. What's the big deal? 🤷♂️ Well, these changes affect when your gains are considered "long-term" and eligible for that 12.5% tax rate we just talked about. Shorter holding periods mean you might pay higher short-term capital gains taxes more often. Read more changes to indexation, the new tax regime, National Pension Scheme (NPS) and Sovereign Gold Bonds (SGB) in our blog. Link in the comments. #personalfinance #budget #money