E-learning - How is it beneficial?

E-learning from end to end the web world has opened up a lot of opportunities for the people. There are more than a few benefits associated with e-learning. For students it acts as boon in getting knack of easier said than done topics as well as saving time. For teachers e-learning helps in learning the right skill required to teach students. Many schools nowadays are turning up the web world and teaching students online which has changed the entire spectrum of teaching methods.

The Education/Tools that e-learning provides surpass all other forms of learning methods. This medium of e-learning has made studying very easy. One can study at their own set time and place. There is no limitation of time in addition to people can even learn while on move. The mobile devices help in learning while traveling to places. It is acting as a boon to people who cannot attend classroom lectures to hectic work schedule. In many institutions and colleges good attendance is the first criterion to sit for exams.

The online medium has eliminated all these issues of attendance due to the flexibility of choosing one’s own desired time to study online. The online Teaching methods are unique and help in understanding the texts easily. Many schools are adopting this method of education/tools to make learning fun among children. E-learning thus has made it easy for people to pursue studies while working. Further the online learning is economical and one learns while they earn. Any one can pursue studies with the online methods of learning. There are no hard and fast rules of learning through online medium. These are truly convenient and help teachers, students and all other people who use e-learning of education.

Financial Planning Academy (FPA) demonstrates and supports a professional commitment to education in the field of Financial Planning. We want candidates to be thoroughly prepared for the CERTIFIED FINANCIAL PLANNER^CM (CFP^CM) exams and clear them with the highest grades and in good time.

Through i-LEARN you can pursue the CERTIFIED FINANCIAL PLANNER^CM (CFP^CM) course studying at home, your work place or even at a coffee shop!

Just log on and access the topics for all 6 modules, practice your concepts with the question bank, discuss your queries with other students, CFPs and Professors and evaluate yourself by attempting the real time exams.

We wish you all the best!

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Life Insurance Plans - Term v/s The Rest

When a financial planner suggests you to buy life insurance, it usually means buying a term plan. Any other endowment plans or ULIP plans are to be stayed away from, no matter how much money they offer at the end of the term period. However, why do we consider a term plan to be the right choice for you as opposed to several other plans which offer maturity returns and other attractive features? Even With the recently announced Budget, the laws have been changed to promote term & high risk cover plans.  We at Fpguru.com will give you a clear understanding of the same by comparing the several kinds of plans with a term plan.

Efficient coverage at low premium - A term plan is the most simple and the most effective way to insure your family against any financial difficulties in the event of an early demise. It provides you a fixed cover for a fixed term for a minimal amount of premium. However in the event of outliving the term, you receive nothing. Since your main aim of purchasing an insurance policy is to provide a cover for your family to replace the lost income, a term plan provides you with adequate cover at a very nominal amount of premium.

There are several other complex plans which offer you a fixed cover upon death along with a certain sum of money paid to you at the end of term. This is possible because the premium paid by you is directed towards two ends. A small part goes for the insurance cover. The rest is invested. On the invested amount there are charges as well. That is why these plans like ULIP’s & Endowments charge a very high rate of premium and correspondingly provide inadequate coverage or returns.

Simplicity vs Complications – A term plan is simple and easy to understand. A fixed premium, a fixed duration and a fixed coverage! You cannot go wrong. The many other plans available in the market are a mixture of one or more plans put together making them very complex. Avoid complexities because, in finance, simplicity rules! What you can understand, is what you must go for!

Returns – A term plan provides nil returns in the event of an individual surviving the policy term, whereas an endowment plan provides you a maturity value & a ULIP gives you market linked returns.  However, you must not forget the amount of premium you pay each year in order to achieve these returns.

E.g. In order to buy an endowment plan of Rs 2,00,000/- the yearly premium can amount to nearly Rs 16,000/- whereas you can purchase a term plan of Rs 25,00,000/- for just around Rs 8,500/-appx.

We believe that insurance and investment must strictly be kept aside. Instead of paying a higher premium, for earning nominal returns, purchasing a term plan for your insurance needs and subsequently investing the remaining amount of money can earn you better returns. Hence, if you purchase a term plan with premium amount of just Rs 8000/- or so, you can avail a cover of Rs 25, 00,000/- and also invest the amount of funds that you have saved by not purchasing an endowment plan, i.e. nearly Rs 8000/- to earn a higher rate of return in the market.

Tax Benefit – According to the existing rules, you can avail a tax benefit on the sum assured received, provided the sum assured is 5 times the premium amount. However, with the new Budget the rule changed to ‘the sum assured being 10 times the annual premium paid’. This has made many investment cum insurance plans taxable. Money back policies especially have lost their tax-saving sheen.

Ease of purchase – A term plan is very easy to purchase as it is easy to understand. It can now be bought at the click of a button on the internet.

However, do make sure your family is aware of your online purchase of a plan as it can help save them trouble at an unexpected future date.

Ease of functioning – A term plan is easy to operate. You pay your premium amounts each year and you receive coverage for another year. Owing to the nominal amounts of premium payable, it makes it easy to maintain a term plan as opposed to other expensive plans. In the event of an individual losing his source of income, he may still be able to continue paying his premium and avoid losing his insurance coverage.

A term plan is also easy to discontinue. In an unexpected turn of event, wherein an individual feels, he does not need life insurance anymore; he can simply stop paying the premium amounts to discontinue his policy, thereby offering complete ease of functioning. A term plan is simple and sticks to the basic purpose of insurance that is providing adequate cover for a nominal amount. Hence we strongly suggest a term plan for all your insurance needs. It simply cannot be replaced!

Source: fpguru.com

Financial Planning Academy secures the 2nd position as an Education Provider

It gives us great pleasure to inform you all that FPA has been able to secure the 2nd position as an Education Provider, across India, for the month of February, 2012. 

Link http://on.fb.me/GFc8KU

Benefits of CFP certification:

• You earn money by increasing your product offering to your client.
• Your expertise and creditability as a Financial Planner is instantly communicated.
• Your career and professional development opportunities are enhanced.
• You become a coach and problem solver.
• Your clients are more satisfied.
• Your professional standards reflect your enhanced social status.

Financial Planning Academy - CFP Course Program

What will be costlier and cheaper - Budget 2012 is out

Yesterday (16th March 2012) budget was declared for many of the items and activities. Following is a list of what will be costlier and which ones will be cheaper following the Budget 2012-13.

Items and activities became Costlier are as follows: 

>Two-wheelers, cars, commercial vehicles. 

> Refrigerators, air-conditioners, washing machines, watches. 

> Soaps, cosmetics, homecare items. 

> Cigarettes and bidis. 

> Packaged food items. 

> Pan masala and chewing tobacco. 

> Unbranded precious metal jewellery. 

> Imported luxury vehicles. 

> Imported bicycles and bicycle parts. 

> Imported digital still cameras. 

> Imported gold bars and coins of certain categories, platinum. 

> Imported cut and polished coloured gem stones. 

> Air travel, eating out at restaurants and hotel stays. 

Not all the items became costlier as the Budget has also made some items and activities cheaper. 

Cheaper: 

> Mobile phone parts. 

> Branded silver jewellery. 

> Branded garments. 

> Imported LCD and LED TV panels of over 20 inch. 

> Matches. 

> Footwear below Rs 500. 

> Adult diapers. 

> Soya protein food products. 

> Probiotics. 

> Writing instruments. 

> Imported medical equipment.

Management Tip: Measure the money you're making

1) Growth

Growth in sales is usuall, but not always, a positive sign. Look for year over year growth but remember that it has to be profitable and sustainable.

2) Cash generation

Cash allows companies to stay in business. Cash generation is the difference between all the cash that flows into the business and all the cash that flows out. Investigate where the cash is generated, how it's used, and whether enough is coming in.

3) Return on assets

A company's return on assets is its net profit divided by the average value of its assets during a given period of time. This measure shows you how well your company is using its assets to make money.

Do you measure the money you are making?

How to deal with a fund manager's exit

When a highly regarded and influential person at the helm of a company's affairs leaves, it no doubt creates a flutter among its stakeholders. Having steered the ship for so long, his departure rings alarm bells and raises questions regarding the future of the company. Similarly, the exit of a reputed manager of a mutual fund is bound to raise some eyebrows.

When the person who has consistently created wealth for your fund leaves, seeds of doubt will surely get planted in your mind: How much of an impact will it have on the fund's performance? Will the new fund manager be able to carry on his predecessor's good work?

Over the past couple of months, at least seven different fund houses have effected changes in the stewardship of their respective mutual fund schemes (see graphic New managers take over the reins). While some have merely reshuffled responsibilities among team members, others have seen their fund managers vacate their post, requiring them to be replaced by another.

These include UTI Mutual Fund, Fidelity Mutual Fund, ICICI Prudential Mutual Fund, Taurus Mutual Fund, IDBI Mutual Fund, Tata Mutual Fund, Principal Mutual Fund and Escorts Mutual Fund. Is there a cause for worry if you are invested in any of these schemes or can you safely ignore this development? If you find that your trusted fund manager is moving on, here is how you should tackle the situation.

Do not jump ship - Though many of us rely on the reputation and brand of the fund house when selecting a particular fund, there are some who assign more importance to the individual behind the fund. Have you invested in the fund based on the fund manager's track record?

In such a case, seeing your fund manager leave will probably make you question your investment. Some of you may be considering an exit from the fund.

Actively managed funds are usually more dependent on the fund manager's ability to execute key decisions at the right time. However, there is no need to press the panic button simply because a star fund manager has left.

While there have been instances when a fund manager's exit has caused a dip in the fund's performance, there is enough evidence to the contrary also. The question investors need to ask is, how crucial is the fund manager to the fund's performance?

Contrary to beliefs, mutual fund schemes are often run by teams and not merely by an individual. There are usually processes in place which remain constant throughout the life of the fund, that is, the core philosophy remains unchanged.

So, when a particular fund manager leaves, the next in line can simply fill his shoes without requiring any change in the security selection processes. This ensures that the fund performance doesn't get affected. The fund house pedigree matters more than the individual. 

How to get the best deal when home loan rates begin to fall

With three banks, Union Bank of India, Central Bank of India and Bank of Maharashtra announcing their decision to lower home loan rates, it is almost certain that we are heading towards softening of interest rates. Some more banks may soon announce rate cuts, while some may wait for the Reserve Bank of India to slash its policy rates, before taking a final call.

The disparate rates, in the meanwhile, are going to cause a lot of confusion among home loan customers. If you have been waiting to switch over to the lender with lower rates at the first opportunity, it may be time to act in the next few weeks. Meanwhile, you can pore over your existing loan agreement to understand the clauses to avoid complications later. Follow the same exercise with the new lender too. Here are a few points that can guide you through the maze.

Some banks have completely done away with the fixed-rate schemes. However, some of them did offer fixed home loans in the past with interest rate as low as 7.5-8%.

The catch, of course, was that these rates would be reset every three years and subsequently linked to the rates prevailing at that time. If you have taken such a loan a few years ago, your EMI must have zoomed to unmanageable levels by now.

Gold prices crashing - What to do? Buy or sell

Gold hit a near six-month low by losing Rs Rs 920 to Rs 28,140 (1st march) per 10 grams, due to brisk selling by stockists after the metal recorded a steep fall in international markets.

Selling pressure gathered momentum after the yellow metal in overseas markets suffered heavy losses, sparking a major sell-off in the local market here, pushing it down to a level seen on September 7 last year, traders said.

Similarly, silver paired all the gains it made in yesterday's trade by losing Rs 2,200 to Rs 58,300 per kg, as speculators offloaded their position for month-end settlements on the Multi Commodity Exchange.

The trading sentiment in gold dampened as in global markets it fell by USD 100 to trade below to hit the USD 1,700 an ounce level on signs that the Federal Reserve will refrain from offering more monetary stimulus to boost the US economy.

Some useful tips: 

- Hold your existing asset, don't be in hurry to sell.

- Try investing more in the market (Gold market).

- The market will be unstable for some time facing fluctuations in the Gold prices.

- Don't let this changes affect your decision and try holding your asset. 

What would you prefer holding existing gold (asset) or selling your gold (asset) or investing more in Gold ?