How much gold should you have in portfolio in economic downturn?
Gold, as an asset class, is a hedge against inflation and provides diversification when equities are not doing well. It does not have cash flows like equity and debt assets. That said, historically, gold has proven to have a store of value.
The users need to be careful that the amount they spend on credit cards or through other credit instruments, should not exceed their paying capacity.
When asked if they use credit cards, many people in India – especially those who are 40-year old or older – would say, “We don’t survive on borrowings.”
However, the same persons would pay their newspaper delivery men, maid servants, milkmen etc at the end of every month, oblivious of the fact that they read the newspaper and avail the services of the maid servants, drink milk etc on credit every month.
- Rising Joblessness: EPF sops for industry, workers to be extended by 6 months
- ESIC to cover casual, contractual employees of municipal bodies
- Your Money: Know how dividend income is taxed
Similarly, a credit card allows a user to buy goods and services on credit, payment for which is made at a later date – usually a fixed date every month following the end of every credit cycle – called the due date.
If the entire credit card bill is paid within the due date, the users don’t have to pay any interest on the amount spent through credit cards. So, the users need to be careful that the amount they spend on credit cards or through other credit instruments, should not exceed their paying capacity.
The perception towards credit, however, is changing fast with hosts of innovative Fintech companies offering attractive products that, if used judiciously, would make one’s life easier.
How digitisation is changing the saving and investment behaviour of individuals
How to make your money work for you in 2021: Here are top 12 deposit schemes for conservative investors
Moving money from your bank savings account into one or more of these will yield relatively high returns and will help you meet your long-term goals as well.
Moreover, with the tech-savvy younger generation lapping up such products, ‘credit’ is fast becoming an acceptable word in India.
As a result, more and more people now don’t hesitate in buying products using the innovative credit instruments, instead of solely relying on their savings.
“The perception around credit has changed tremendously over the years in India. While most Indian families relied on savings for big household purchases, they were averse to the idea of credit. However, things have changed with millennials acquiring purchasing power,” said Raghuvir Gakhar, CEO, PC Financial.
“With the advent of technology and options of easy EMIs, credit card payment options, credit is perceived completely differently today if compared to the early 2000s. Today the new-age financial revolution driven by FinTech players is focusing on the changing trends in consumer credit,” he added.
“An increasing number of people are applying for credit online through their mobile phones now. Hence, FinTech firms are leading the trend of availability and accessibility to unsecured credit, which will unlock the true potential of the average Indian consumer,” Gakhar further said.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
- How Fintech players are changing the way credit is perceived in India
Rise in health insurance renewals – Rush towards wellness products
Consumers are now using their wellness points during the health insurance renewal to avail discounts on the premium.