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Debt

Aditya Birla Birla Sun Life Dynamic Bond Funds

The investment objective of the scheme is to achieve optimal returns by aggressive portfolio management with high liquidity through investment in debt and money market instruments.

Aditya Birla Sun Life Dynamic Bond Fund is a debt-dynamic bond fund that belongs to mutual funds for Aditya Birla Sun Life. It was released on 08-Apr-2009 and now AUM of ₹2,536.35 crore. The Aditya Birla Sun Life Dynamic Bond Fund is benchmarked against the CRISIL 10-year gilt index as the primary index, and the secondary index is the Nifty Composite Debt Index.

The NAV of Aditya Birla Birla Sun Life Dynamic Bond Fund ended 0.02 (0.09%) at ₹22.137 yesterday.

The fund has been exposed in the top 3 holdings with the clearing company of India Limited, and The Aditya Birla Sun Life Dynamic Bond Fund is managed by Maneesh Dangi and Pranay Sinha.

Aditya Birla Birla Sun Life Dynamic Bond Funds basic details:

  • The fund manager(s) – Maneesh Dangi, Pranay Sinha
  • Launch date – 27-Sep-2004
  • Expense ratio – 1.4% as declared on 31-Jan-2020 (category average is 1.39%)
  • Benchmark – CRISIL 10 Year Gilt Index
  • Return since Launch: 7.82%
  • Riskometer: Moderate
  • Type: Open-ended
  • Assets: ₹ 2,536 Cr (As on 31-Jan-2020)
  • Risk Grade: Above Average
  • Return Grade: Below Average
  • Min SIP amount – ₹1000
  • Min investment amount (additional purchase) – ₹1000
  • Type: Open-Ended Fund. You can invest any time in this fund.

Dynamic Bond Fund: The fund has 97.67 per cent investment in bonds, of which 3.99 per cent is in government securities, 79.55 per cent in very low-risk bond investments.

Aditya Birla Birla Sun Life Dynamic Bond tax rate

If sold after three years from the date of purchase, then long term capital gains tax will be applicable. The current tax rate is (a) 10% of profit or (b) 20% of adjusted profit after index profit. No cess/surcharge is included. If sold three years before the date of purchase, short-term capital gains tax will apply. Any benefit will be added to your income and taxed at your effective tax rate.

Suitability:

Investors who want to invest for the long term but prefer lower-risk assets than equity funds.

Dynamic bond funds have the right to invest in bonds at any time. The fund management team decides whether to invest in bonds maturing in a few months or maturing several years later, where it plans to achieve maximum returns. They are, therefore, the most flexible type of debt fund available.

As most other types of debt funds, we think retail investors can avoid this too. In our opinion, debt funds only make sense for retail investors if they invest for three years or less. Liquid debt funds and short-term debt funds are more suited to that type of investment horizon.

Note: Dividends paid by MFS are levied at a rate of 25% (actually 29.12%, including surcharge and cess). While this tax is not paid directly by the investor, it is deducted from the dividend income before it is paid to the investor.

Categories
Debt

Find Out How Much You Can Save with Debt Consolidation

A debt consolidation calculator can help you determine how much you can save with consolidation.

When you have multiple sources of debt, consolidation may help you save money. You may even receive extra cash flow to help you deal with unexpected expenses. These options are especially helpful if some of your existing loans have high-interest rates. Debt can be managed and if you are feeling overwhelmed try speaking to an advisor from the National Debt Helpline.

Why Should You Consider Debt Consolidation?

The first benefit of debt consolidation is simplifying your repayments. When you use debt consolidation, your existing debt is combined and paid off with a new loan. Instead of needing to pay a home loan, a credit card bill, and a car loan, you can have a single monthly repayment.

A single repayment is more convenient than juggling multiple monthly repayments. This may also eliminate some of the stress related to your debt. You will know exactly how much you owe at any point, instead of needing to review multiple loans. You also don’t have to deal with multiple deadlines or late fees.

Debt consolidation may also help you get rid of delinquent debts and stop receiving collection calls. When you get behind on a payment, is it often easy to allow the payments to stop. This negatively affects your credit score and results in significant late fees and penalties. Debt consolidation gives you a fresh start with a single loan.

Consolidating your debt may also help you get a lower interest rate. Depending on your credit score when you obtained your loans, you may have high-interest rates on some of your debt. This is especially common with credit cards. Your new loan may offer lower interest rates, helping you save even more by reducing the total interest that you pay over the life of the loan. There is a wealth of information online regarding help with debt.

How Do You Use a Debt Consolidation Calculator?

When using a debt consolidation calculator to determine your savings, you will need to include the outstanding amount on your home loan, along with the interest rate and current monthly repayment. You can then include your other existing debt.

You have the option to consolidate debt from multiple sources, including credit cards, car loans, personal loans, and other types of loans. Enter the amounts that you owe, along with the interest rate and current repayment. When these totals are entered, save your progress to view your existing debt summary.

The summary includes your total existing debt and total monthly payments. You can then enter the current total debt, your desired interest rate, and the new loan term. The Lendi debt consolidation calculator will then calculate the results to let you know how much you can save each month.

How Much Can You Save with Debt Consolidation?

This example will help illustrate the potential savings. You have an existing home loan of $80,000 with a 4.0% interest rate and $500 monthly repayments. You also have $10,000 in credit card debt with a 6.0% interest rate and $300 monthly payments. Consolidating the credit card debt with the home loan and then refinancing with a 3.6% interest rate and a 20-year term can provide over $275 in savings per month.

Start entering the details of your debt into the debt calculator to see how much you can save.

Categories
Debt

Some Reasons that Keep You in Debt

Are you having any kind of debts? If you are, you may be not the one who has such debt. Nowadays, more than millions people in America are in debt. Whether you have credit card bills, student loans, mortgages or any other consumer debt types, it is such a general agreement that debts will continue to make us weigh down. Actually, if we don’t try to step forward to the debt freedom, you may end up getting in debt as always. If you analyze your habits towards finances, you may find that there is something that you do wrong and keep you in debt.

If you cannot be debt free, there may something that keeps you in debt. First of all, you may like wasting your money without thought it first. In this case, you may think that wasting money for fun is kind of rewarding yourself especially since you have worked hard to earn the money. Well, it is actually a quite bad practice that you should not do that as always especially if you waste it meaninglessly. If you keep in debt, you may do it too often and then choose such expensive purchases which then make you use your credit card too much.

Moreover, you may believe that cash loans will be always ready to help you. It should be true since cash loans are at your disposal right now, especially the one you find it online. Cash loans are actually a great idea if you are in emergency and need money as fast as possible. However, if you take cash loans to pay such fancy dinner with your girl/boyfriend even though you have also taken another debt before, it must bring you into so much chaos. You may have bad credit and you don’t even care about it. If you don’t seem to be aware about your own finances, especially about the cash loans you take, it will haunt you sooner or later. Creditors will set their eyes on you and will send notices of collection for you.

Furthermore, you don’t have a budget. It is also such a reason why you always end up in debt: you don’t have any budget in order to see the breakdown of your expenses. By creating such simple budget, you will be able to know where you overspend your money and where you can cut off to save more money for other important things you may face. If you don’t have one, you should begin with listing your income as well as your expenses.

In this case, if your income is smaller than your expenses, it means that you need to revise your budget and make it more balance so that you don’t end up in debt. Remember that you should not take something you cannot afford. The last, you may ever think that having debt is normal. It should be normal since you are not the only person in the world who has debt. However, this mentality can ruin your financial circulation. Therefore, you should change your mind about it and don’t take any debt for something meaninglessly.