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Backpacking Essentials for a Trekking Trip to the Hills

What should I pack for a trek? How will I carry my backpack to the hills? Which hiking accessories are essential? Should I buy the hiking accessories in advance? If you are planning a trekking trip to the hills and have these questions, we have you covered.

Here is a complete list of backpacking essentials for your trekking trip.

The Critical Tools

There are five crucial trekking equipment for hillsessential for navigating the paths well – a map, compass, altimeter (an instrument to measure any location’s altitude), GPS device, and a PLB (personal locator beacon). You can also carry a headlamp to keep your hands free for other activities like climbing or cooking and sunglasses for trekking during the day.

The Trusty Water Bottle

You should pack plenty of water without fail to stay hydrated throughout. Trekking is exhausting, and your body dehydrates quickly because, in cold temperatures, you don’t realize that you’re sweating continually and losing water. Thus, frequent sips from your water bottle will keep you fresh and ensure a smooth hiking experience.

Additional Read:  How Can Personal Loan Help You Finance Your Trekking Trip to the Mountains?

Carrying a Knife

On hiking trips, knives often prove to be one of the most vital trekking accessories, as you can use them for lighting a fire, preparing food, first aid, repairs, or even self-defence! A Swiss Knife is a popular choice amongst many trekkers as it’s like a multi-purpose toolset and always comes in handy while hiking.

Flashlights

Flashlights or torches are a lifesaver when trekking during the dark or even returning from a day’s hike amidst the hills. When you are a kilometre or two away from your camp and stuck in the pitch-black path, a torch can prove helpful to navigate properly and get to your camp safely. Hiking lights must be high-quality and durable. If you are worried about the expenses, finance your accessories with a travel loan.

Snacks and Munching Items

When trekking, you lose energy rapidly and often without anticipating. For such cases, it’s best to carry a small bag of munching items and snacks like some chocolates, dry fruits, nuts, biscuits, or even energy bars. They take less space and are convenient to carry as well.

Hand Sanitizers

Hand sanitizers are a staple since the pandemic started. Similarly, when it comes to trekking, your hands repeatedly come into contact with dirt or unwanted spots while climbing. Using hand sanitizers will keep those germs away and not compromise your personal hygiene during your trip.

A Basic First-Aid Kit

A basic medical kit is a must-have when backpacking for treks. It can include antiseptic lotions, burn creams, bandages, ointments for bruises, bandaids, etc.

Additional Read: Boost Your Adrenaline by Doing These Adventure Sports

Parting Thoughts

When you are heading out for a trek, the essentials mentioned above should be on your hiking checklist.

If a financial crunch is spoiling your exciting travel plans, turn to Tata Capital. Our personal loan offering provides flexible EMIs, overdraft facilities, collateral-free funds, and extended tenures. What’s more, fulfil our easy personal loan eligibility and access funds in no time. Visit Tata Capital’s website and start planning your trek today!

Are Digital Lending Platforms a Reliable Way to Get Funds for Your Business?

The world is quickly progressing into the digital domain. Everything from paying utility bills to transferring money between bank accounts is being done online. Likewise, the lending ecosystem has also undergone a paradigm shift. Digital lending platforms have, in recent years, emerged as the next big thing in the FinTech space.

Many small business owners and entrepreneurs are already turning to digital lenders for borrowing SME loans. But are such platforms reliable? Let’s find out.

Digital lending vs traditional lending

1. Minimal paperwork:

We are all aware of the endless paperwork that greets us every time we apply for a loan from traditional lenders. You need to fill forms, attest documents, submit photocopies, provide references and a lot more to initiate the loan process.

Digital leaders, on the other hand, keep documentation to the bare minimum. All that is required to get a loan approved digitally is a stable internet connection. The rest happens with your authentication without the hassle of loads of paperwork.

2. Quick loan processing:

Traditional lenders often take 6-7 working days to process a business loan. In contrast, the processing happens quickly via digital lending. You can upload the scanned copies of all the necessary paperwork on the lender’s website and authenticate essential details using secure channels.

Additional Read: Business Loan Industry Trends for the Last 5 Years

3. Convenient loans:

Unlike traditional lending, applying, processing, and loan disbursal is a user-friendly process with digital lenders. You can apply for the loan from the comfort of your couch at your convenience!

4. Handy tools:

Many digital lenders host resources like business loan EMI calculators to help borrowers get accurate EMI estimates and budget their finances well. You can compare the best deals available online and pick the lender of choice. Further, you can also track every stage of your loan process online. Traditional lenders rarely provide such tools.

5. Superior privacy:

Privacy is of utmost importance when it comes to matters of finance. You always need to be careful of the paperwork when entering your bank. But as you can apply for a digital loan from the safety of your home, you don’t have to worry about somebody else getting a glimpse of your personal and financial details. Moreover, all the digital avenues are entirely safe and encrypted to ensure maximum security of operations.

6. Access to multiple lenders:

Digital lending solutions allow borrowers to contact various lenders at once, compare the business loan interest rates, and choose the best loan deal. This is not always the case with traditional lending. You have to visit multiple financial institutions and go through the hassle of filling numerous forms to get all the necessary information.

Additional Read: Trends Transforming Online Business Lending

Clearly, digital lending solutions are leading the way for convenient business finance. Not only are they reliable, but also incredibly seamless and accessible to even small business owners.

Apply for business finance online!

Get quick and easy access to competitive business loans at Tata Capital! Enjoy minimal documentation, quick processing, attractive interest rates, and flexible loan terms. To know more, log on to our website or contact us today!

An Ultimate Guide for a Solo Female Traveler

With changing perceptions, increasing financial independence, and a desire to explore the world on their own, more and more women are opting for solo trips for women. However, experiences of travelling alone can vary significantly for females, as compared to their male counterparts. 

When planning solo travel for women, there is a lot to consider. Whether finding great solo travel destinations, learning some essential safety tips, or investing in some travel safety gear, solo travel for women involves a lot of things to take care of.

Thus, here are some solo travel tips for women that can come in handy for those voyaging the world independently.

#1. Pick the right destination

If this is your first solo female trip, consider a destination within your own country or choose a locale whose language you are familiar with. This will keep you comfortable throughout your journey and ensure that you can communicate with the locals for necessities like asking for directions, etc.

For the best solo trip for women, you should pick your destination keeping your intent in mind. Whether you want to go on a trek, explore the city’s nightlife, participate in adventure sports or just want to visit the destination for no specific purpose, knowing why you are visiting a place will help you plan better.

Additional Read: Things to Keep with You if You Are Solo Tripping

#2. Avoid overpacking

Don’t overpack and increase your backpack’s weight unless you can manage heavy weights easily. However, this is especially important if you’re planning a cross-country or cross-city trip, as travelling from one place to another with heavy bags can be challenging.

#3. Bring the hygiene products with you

You can find toothpaste and shampoo everywhere, but as a solo female traveller, you may not be as lucky when it comes to feminine hygiene products, especially if you rely on a specific type and brand. Yes, tampons and pads can be a bit cumbersome on a long journey, so having them on hand is quite comforting.

#4. Research and book in advance

Although a solo female trip comes with a fair bit of spontaneity, you don’t want to go in completely unprepared. Read up about the culture, weather, tourist spots, popular restaurants and eateries, etc. Don’t leave anything for the last minute. Research well and book your accommodation in advance. Also, keep your accommodation details like address, route and phone number handy on a piece of paper.

Safety comes first when it comes to solo trips for women. One thing to keep in mind is not compromising on accommodation and picking an unsafe hostel or shabby hotel. Stay safe by booking a decent place with good customer reviews. You can always take a travel loan to finance your vacation.

Additional Read: A Perfect Guide to Europe for Solo Travellers

#5. Prepare a schedule

Solo travel for women can be easy if followed by a schedule. As a solo female traveller, you can decide to organise everything in advance to limit the unexpected as much as possible. 

A rigid plan prevents mishaps, fortuitous encounters, and last-minute alterations; it also leaves no room for improvisation, which can get monotonous for some who are on a solo trip for women. 

However, for some individuals, having this predetermined structure that organises the journey and guarantees a smooth schedule is indeed comforting.

#6. Be in contact with your friends and family back home

Every solo female traveller should give their loved ones a regular location and plan updates. It’s easy to get overwhelmed by everything you’re doing and forget to update your family back home. Not only is it not particularly safe, but it will probably worry everyone you love.

#7. Keep the essentials safe

Your essentials on a solo trip include cash, cards, passport, tickets, and other important documents. Carry them safely within your bag, and don’t forget to keep a few extra copies. While visiting a secluded spot, make sure that your essentials are safely concealed.

#8. Explore yourself as a solo women traveller

A solo trip for women is the perfect opportunity to get out of their comfort zone and do things they wouldn’t normally do. As a solo women traveller, you should do something you won’t normally do, like going on an intense motorbike or just wandering through the alleys of the city you visit. It’s the best way to find yourself and know who you are. 

Join tours, book outdoor adventures, meet new people, and discover things that are off the beaten path as a solo woman traveller.

Summing up

Solo travel is not just another vacation. It can be a thrilling, fun-filled, empowering experience. With solo travel, you get to do things your way, mingle with the locals and make unforgettable memories. This solo female traveller guide should help you start your journey with the right do’s and don’ts.

Solo travel is a chance for you to get to know yourself and the world better. So, whether it is a quick getaway or a month-long trip to conquer your bucket list, finance your travel goals with Tata Capital’s travel loan.Book the safest ride to the destination and pack the best travel gear without worrying about the funds. Avail personal finance for travel with us at zero collateral and attractive personal loan interest rates. Visit our website today!

Amazing Altar Ideas for Having a Cheerful Destination Wedding

Got your personal loan for wedding approved, and planning your destination wedding now? Why not put some money into a gorgeous altar that’ll wow the guests at your wedding? Check out these splendid altar ideas for turning your upcoming destination wedding into a fairytale!

Flower arches

Beautiful flower arches have always been one of the best altar wedding ideas. When it comes to destination weddings, especially outdoor ones, these arches are incredibly handy. They can help block out the sun while the bride and groom are exchanging their vows. What’s more, a grand floral arch can complement just about any background – be it a beach, a plush garden, or anything else!

Tropical white curtains

If your destination wedding is on a beach, go for a tropical set-up of a white-curtained tent. The accompanying white floral arrangement and the surrounding greenery will surely make your wedding a spectacular event. You can also swap out the florals to match your preferred colour palette and floral design.

Watercolour altars

One of the latest marriage altar trendsis using abstract watercolour paintings as the altar backdrop, and we’re all for it! You can set up a large watercolour painting or a few smaller ones together, creating an abstract yet modern background.

And the best part? You can use it later as a backdrop for your wedding pictures or even hang it as home decor!

Flower walls

If you’re having a contemporary style destination wedding, why let the altar run behind? Go for a flower wall instead of the traditional arrangement, where your florist can arrange beautiful flowers into a spectacular wall – the perfect backdrop to get married in!

Additional Read: 5 Captivating Wedding Themes

Lavender displays

Given how pretty and sweet-smelling lavenders are, they will make an excellent addition to your list of destination wedding altar ideas. Get a lavender-covered wooden structure or arch, creating a stunning display of natural woods, corresponding florals, and mesmerising lavenders. This will be a beautiful way of embracing your location’s natural surroundings, just with a mere pop of colour!

A ribbon statement

Florals and greenery aren’t the only accompaniments of a gorgeous arch. Make a striking statement by choosing vibrantly coloured ribbons to decorate your arch and create a stunning altar. This is an even better option for destination weddings as the ribbons slowly swaying amidst the breeze will make for a picture-perfect background.

Paper flowers

Looking for something modern, dynamic, and fresh? Hop onto the paper flowers wave that has been the go-to wedding decor items for ages! With various colours, sizes, and shapes to choose from, decorate an arch with multiple paper flowers for an out-of-the-box altar your guests will love to see. 

Additional Read: Top Picks for a Destination Wedding

Turn to Tata Capital!

If you’ve got your eyes on a beautiful altar but your budget is stopping you from getting it, let us help! Tata Capital’s marriage loan offer speedy access to funds, along with affordable EMIs, collateral-free financing, overdraft options, flexible tenures, and more!

If that’s not enough, our attractive personal loan interest rates will surely put a smile on your face. To know more about our financing options, visit our website today!

All You Need to Know about Student Visa’s for Higher Studies Abroad

Congratulations on being accepted into an overseas university! You are now one-step away from achieving your dream of higher education: securing your student visa. In this article, we will guide you on all the things to know about student visas.

Getting started with your visa application

Visa application bureaus receive hundreds of applications daily, and verifying and processing each application takes time. While most are sanctioned quickly, some applications can take up to six months for processing. If your visa application has missing information, it may take longer. Hence, start researching for your visa application process right away.

Types of student visas for higher studies

Depending on the policies, various countries have different types of student visas. For example, the USA issues three kinds of student visas, while Australia offers seven. Besides, in some countries, universities handle the bureaucratic process of visa application. This means that you have to apply for your visa through the university. Thus, conduct extensive research on which kind of visa you will require.

You can also contact the embassy or the university for any clarification regarding the application process.

Additional Read:  5 More Things to Consider Before You Opt for Education Overseas

Visa application process and fees

While the visa application process varies across countries, typically, it requires filling the application form, providing all the necessary documents, paying the fees, and a face-to-face interview with the destination country’s visa authorities. The interview is usually conducted in the embassy situated in your home country.

The visa application process can be offline or online. To increase your chances of securing the visa, allot extra time and attention to the application form. Fill in the information with as much detail as possible. Double-check your contact details, the documents attached and the information provided.

Most visa applications require a substantial fee. If you are funding your higher studies with an education loan, consult with your lender if the loan covers the visa fee. Moreover, review the fee payment instructions on your embassy’s website and opt for online, in-person (bank), or mobile payment.

Visa Application Documents

The set of documents required for visa application is specific to your destination country. However, the standard requirements include a valid passport, visa application fee receipt, university acceptance letter, and filled application form. You must also provide proof of funding for the duration of your stay, your medical report, and your intention to return home.

Additional Read:  The Top Countries That Grant Visa on Arrival

Final thoughts

By conducting research and enquiring with the proper authorities, you can ensure quick approval for your visa application.

Finance your overseas education with Tata Capital

Funding your higher education has never been easier. Tata capital offers personal loan interest rates starting at 10.99%. Need a flexible tenure? We provide an extended term of up to six years.

Need a high loan amount? We provide a personal loan amount of up to Rs. 25 lakhs. With an easy loan eligibility criterion, quick processing, and zero-collateral funding, we ensure that your academic dreams are never compromised.

Contact your nearest branch or visit the Tata Capital website for more details.

All you need to Know about Fixed Interest Rate Home Loans

If you are stepping into the real estate market for the first time or searching for your ideal home, you should consider taking a home loan. It is a convenient way to finance a property without burning a hole in your pocket and exhausting your savings.

When applying for housing finance, you will come across terms like fixed and floating rates of interest. It is crucial to understand these loan terminologies and what they entail before applying for the loan, as it can help you make an informed choice. Read further to learn about fixed interest rate home loans in detail.

What is a fixed interest loan?

As a potential borrower seeking housing finance, you will have to choose between two different types of interest rates. The interest rate determines how much EMI you’ll be pay over the loan tenure, making it a vital factor to consider.

In a fixed interest loan, the interest rate remains the same, meaning your EMI amount will not undergo any changes throughout the repayment tenure. In fact, fixed home loan interest rates are immune to market fluctuations. Even if there is a massive drop or downward trend in the Indian economy, your interest rates will not change.

Additional Read: Some Factors That Impact Home Loan Interest Rates

Fixed vs floating interest rates

Floating interest rates in housing finance change according to the market scenario, meaning they may increase or decrease during the loan tenure. In contrast, fixed interest rates are a safe choice because they remain constant and provide stability.

Floating interest rates are beneficial as they get adjusted according to the financial trends. Hence, it is better to choose floating interest rates if you are well-versed with real estate knowledge and expect a fall in the rates over time.

However, if you require a sense of security and certainty in your monthly EMIs, a fixed rate of interest is perfect for you. Right from the time of application, you will have a clear idea of your EMIs. This will help you plan monthly finances and follow a budget efficiently. Thus, you will have a certain measure of predictability about your monthly repayment obligations and the interest outflow.

Additional Read: Floating Vs Fixed Interest Rates: Which one to opt while buying a house?

Need help financing your dream abode? Contact Tata Capital!

Although both interest types have their merits and demerits, it is essential to base your decision on your financial condition and budget constraints. Once you have made your choice, you must turn to a trusted lender such as Tata Capital to have a hassle-free application process.

We have a vast network of over 100 branches nationwide and offer both offline and online banking services. If you need assistance in purchasing a house, we can provide you with attractive house finance offerings. Simply log in to our website to check your home loan eligibility and calculate your monthly instalment amount using our home loan EMI calculator.

So, why wait? Apply for a home loan with Tata Capital and realise your dream of owning a house without difficulty.

7 Pre-Wedding Photoshoot Locations To Check Out In India

When it comes to pre-wedding photoshoots, choosing the right location is key. With a picture-perfect background to accompany you and your special someone, you can create the perfect lifelong memory.

From palaces and monuments to resorts, there are many prewedding shoot locations to choose from in India. Each has its own unique visuals and offerings. However, too many choices can leave you overwhelmed and tired. 

So, here are seven destinations in India for a majestic pre-wedding photoshoot that’ll leave everyone staring at your wedding album!

Jodhpur’s Taj Umaid Bhavan Palace

The first one on our list of pre-wedding photoshoot locations is in the royal city of Jodhpur. The Blue City is well-known for its temples and palaces. If you want your pre-wedding photoshoot location to be royal and chic, this is the place to be, especially its Taj Umaid Bhavan Palace. This magnificent hotel is a stand-out location with lush green palace gardens, majestic domes, and the golden Chittar sandstone that will make your photos look regal and romantic. The Palace also features friendly staff and changing rooms to help you during your photo shoot.

And you don’t need much else to click unique, and memorable pre-wedding photographs.

Udaipur’s Oberoi Rajvilas

Next on our list of pre-wedding photoshoot locations is Oberoi Rajvilas in Udaipur. While Udaipur is widely known as the City of Lakes, it doesn’t shy down when it comes to grand architecture. An excellent example is the Oberoi Rajvilas, one of India’s most luxurious hotels, located at Udaipur’s Pichola. A beautiful location accompanied by old charm, this offers a gorgeous setting for your pictures. Overlooking Lake Pichola, the hotel features vast hilltop forts, mesmerizing palaces, temples and will undoubtedly result in a fairytale photoshoot!

So, if you’re unsure of your prewedding shoot location, allow us to suggest that this place should make it to your list!

Agra’s Taj Mahal

There has never been a bigger declaration of love than the one the Taj Mahal signifies. When it comes to pre-wedding photoshoot places, the Taj Mahal in Agra remains unrivalled. Built as a symbol of undying love, it is considered the most scenic and romantic background for pre-wedding photos. Its white marbled mausoleum makes it a unique location to capture your precious moments. And its sprawling gardens give you enough site options within the site as well. 

While many will settle for pre-wedding shoot locations in Mumbai, you can get some truly unique pictures at this magnificent heritage site. 

Goa’s Park Hyatt Resort and Spa

Goa is filled with beautiful pre-wedding shoot spots. If you are looking for a luxurious location, its Park Hyatt Resort and Spa can be your pick. This lavish five-star hotel offers a romantic ambience with a tropical touch for the best backdrops. The Pre-wedding shoot locations in Mumbai have been overused and are slowly losing their charm. Travel a little further and click cool beachy photographs that will leave everyone wanting more!

If you’re stressing about financing the photoshoot here, a wedding loan can easily cover the costs!

Hyderabad’s Taj Falaknuma Palace

The next destination on our list of prewedding shoot locations is one few haven’t heard of. A preferred spot for celebrities’ stays and weddings, Hyderabad’s Taj Falaknuma Palace is one of the best sets for pre-wedding shoots. Its Nizami charm, complemented by modern architecture, can provide a royal backdrop for your photographs.

Its palatial aesthetics and royal ambience will add all the sparkle to the special milestone in your and your spouse-to-be’s life. 

Delhi’s Humayun Tomb

There are many pre-wedding shoot locations in Delhi but none come close to this one. The Mughal architecture and symmetrical gardens make Delhi’s Humayun Tomb the ideal location for your pre-wedding moments. The monument features an old-world charm with its majestic double domes and red sandstone, perfect for a historical photoshoot.

You can click some truly memorable photographs at this iconic pre-wedding shoot location in Delhi.

Rishikesh’s Lakshaman Jhula

The last one on our list of pre-wedding photoshoot locations is Rishikesh’s Lakshaman Jhula. It is just the place for those looking for offbeat scenic locations. Surrounded by picture-perfect mountains, crystal-clear waters, and white sands, it’s a romantic destination that will offer stunning pre-wedding photographs. So, get your wardrobe packed and your photographer booked to click stunning pictures that will last you a lifetime!

Wrap Up

Pre-wedding photoshoots are an excellent way of creating memories of togetherness. In the midst of the wedding planning hubbub, these offer an excellent excuse to get away and spend some quality time with your loved one. Enjoy each other’s company while a photographer captures these moments for you to look back on. But as lovely as this might sound, your next worry is financing it. But not to worry!

If you need financial help to fund your dream photoshoot, consider Tata Capital’s personal loan. Avail of wedding finance of up to Rs 25 lakhs. Get an extended tenure of up to 72 months and enjoy a smooth borrowing experience with us. We offer easy personal loan eligibility terms and attractive interest rates. To know more visit our website and apply for a loan today!

How Vaccine for 18 Plus Will Turnaround the Economy

Few things in life are as important as one’s health. The coronavirus pandemic has brought this to light yet again after its onset in 2020.

Recently, India recorded a record high of 2.73 lakh cases in a single day. But the end of the long, dark tunnel is finally visible. Starting May 1, 2021, all Indians above the age of 18 will be eligible to receive a shot of the COVID-19 vaccine!

This bodes good news for both the Indian economy’s and the population’s health. Let’s see how.

A panacea for the rising COVID tally

The third phase of the world’s largest vaccination programme will, in Prime Minister Narendra Modi’s words “ensure that maximum numbers of Indians are able to get the vaccine in the shortest possible time.”

Here’s how the Government of India plans to take down the coronavirus tally –

  • Industrial establishments, private hospitals, and state governments can directly buy vaccines from manufacturers. This will enable a faster vaccine rollout, thereby reducing the pressure on healthcare infrastructures. As a result, the manufacturing sector is likely to see a boost.
  • Vaccines will now be provided to state governments and in the open market at pre-declared prices, making it easier for the private players to procure vaccines directly.
  • Other than government channels, imported fully ready vaccines (like Russia’s Sputnik-V) will also find more use.

Through this liberalised and accelerated vaccination drive, all stakeholders have been given the flexibility to customise the immunisation strategy to meet local demands. Meaning, anyone aged 18 or above can get immunised sooner rather than later.

What does this mean for our economy?

A shortage of healthcare services has dealt a major blow to both public and economic health. So, first and foremost, the vaccination will lay the groundwork for eliminating the fear from the masses – who can finally re-join the workforce. Following this, participation from different demographic segments will fast-track economic recovery.

Additional Read: What Is The Average Recovery Time For Global Market Downturns?

India has one of the largest proportions of young people – over 36% of the population lies in the 20 – 44 age bracket (Census figures). The move to vaccinate all persons above the age of 18 means the working age population will be able to safely return to work. As a result, consumption patterns will see a boost, breathing life into all sectors of the economy.

Particularly for India’s informal economy, Phase-III of the vaccination drive will set sails for the sector’s employment recovery. Once the infection fears subside, many daily workers will also return to work from their native places. Speedy immunisation will ensure they can return to work and go back to their livelihoods.

India Inc. is ready to bounce back

Some of the most badly hit industries by the second corona wave are travel, textile, FMCG, real estate, consumer durables, and retail. To put things in perspective – in just a month, the retail industry has experienced a 50% drop in revenue. In just a month, airline companies have witnessed a fall of 13% in passenger demand.

All of these industries also employ crores of Indians. With a majority of our population vaccinated, employees can finally start going to work. Naturally, buyer demand will also increase as the economy’s wheels set in motion.

Travel and tourism has been one of the worst hit industries around the world. With our large-scale vaccination drive, a new ray of hope has emerged. Millennials, who make the bulk of business and leisure travellers, will start taking vacations and work trips yet again. After more than a year of being locked up at home, they are eager to step out and travel. Many who’ve been working from home will likely return to their cities of work. For airlines, hotels, and other travel players, this means it will soon be business as usual.

Additional Read: How COVID-19 impacted businesses

India’s services sector was already picking pace and expanding output in February, thanks to the roll-out of Covid vaccines. With the third phase of vaccination, we’ll see business confidence soaring even higher as economic activity will grow.

This vaccination drive is also brining a whole new set of opportunities for our manufacturing sector. As Covid cases fall, we are expected to see renewed investor confidence for manufacturing in India! Our highly skilled working population will prove to be instrumental in helping manufacturers bounce back from the pandemic. Finally, Indian startups and SMEs that employ and serve crores of young people, will also experience the positive effects of a large-scale vaccination drive.

Good times are in the offing!

A vibrant economy means our populace, both rural and urban, is soon going to intensify consumption across the board. While demand for FMCGs will be the first to amplify, we’re also going to witness a rise in demand for white goods and consumer durables. Once our working age population is free from the distress of a pandemic, it won’t be long before demand for gadgets, electronics, and other lifestyle products reverts to pre-pandemic levels.

Many in the 18+ age bracket had plans to get married in the past year. While some did, it was certainly not with the quintessential pomp and show of our weddings. So, once restrictions are lifted and it becomes safe for our populace to gather in large numbers, we are going to see a surge in wedding celebrations. In fact, we may even see more and more people choosing exotic destinations and locales to mark this event, which has seen muted celebrations in 2020.

The road to recovery

Our government’s expedited vaccination efforts are directed towards one goal – to avoid more lockdowns and enable a speedy recovery. A faster vaccine rollout will be the modus operandi for India to give its economy a much needed booster shot.

Yet, we cannot overlook how the pandemic-induced disruptions have stretched our budgets thin. So, if push comes to shove, fortunately, personal loan can still be your ray of hope with Tata Capital. Especially in such uncertain times of medical and other emergencies, loans present a necessary aid to countless individuals and businesses in India.

Here’s to hoping the worst is behind us and we’re looking at a bright, new future ahead!

Should You Invest in Balanced Advantage Fund Now?

When stock markets rise, we see investors making a beeline for equity. When markets decline, buyers typically hold on and refuse to sell. For effective long-term financial planning, it’s crucial to stay open to taking risks while aiming for fixed returns. That’s where Balanced Advantage Funds (BAF) come in.

Investors putting money into the balanced advantage category through systematic investment plans (SIPs) receive improved SIP returns on their investments. The figures are higher than large-cap, multi-caps, large and mid-caps, small-caps, and mid-cap funds.

Since investment choices differ depending on risk capacities and financial goals, let us take a look at how the balanced advantage category works and why you should invest in it.

What Are Balanced Advantage Funds?

Balanced advantage funds are also referred to as dynamic asset allocation (DAA). These are hybrid funds that dynamically manage their exposure to debt and equity instruments. The category was created based on new norms from the Securities and Exchange Board of India (SEBI) and is free of any minimum exposure limits or caps from the same.

While equity investments provide market-linked returns, debt instruments offer fixed returns. Since the fund can shift allocation between the two asset classes based on continually changing market valuations, when the markets rise, your funds move to debt instruments. Meanwhile, if the stocks decline, debt securities ensure a steady income.

The dynamic nature of these funds is attributable to in-house models based on which the fund house makes allocations across different instruments. Furthermore, these funds maintain market exposure to equity derivatives for leveraging equity tax treatment and hedging when stocks are overvalued.

Additional Read: What kinds of investors should opt for mutual funds?

Why Should You Invest in Balanced Advantage Funds?

Here’s a guide to understanding the benefits of investing in balanced advantage funds today.

Equity Growth

Balanced advantage funds usually manage an equity allocation between 30% and 80% as per the market conditions and the price-earnings ratio. In doing so, DAA funds invest predominantly in stocks and other equity-related instruments to boost long-term capital appreciation. It leads to greater wealth generation, and investment in equities also allows investors to beat current inflation.

Debt for Stable Returns

 When equity valuation is high, fund manager reduces exposure from equity and increases exposure in debt. Exposure to debt acts as a cushion in volatile equity markets. Depending upon investment strategy of each fund, the fund can tactically take duration and credit calls to benefit from higher YTM and price fluctuations, which also further contributes to fund’s performance.

Diversified Portfolio

Since this is an open-ended fund for income distributions and capital gains, the dynamic rearrangement of assets between fixed income and equity allows you to diversify your portfolio. Using arbitrage opportunities and equity derivatives strategies, you can make pure equity investments and simultaneously manage debt securities. By offering a mix of debt, arbitrage, and equity, the product is best suited for retirement planning and can perform well even in flat markets. Besides, after considering your risk profile, you can blend the scheme with large-funds and debt funds for further diversification. 

While the allocation between debt and equity is instrumental in determining the fund’s performance, a diverse portfolio has its benefits. With a well-diversified portfolio of securities, DAA funds can offer better risk-adjusted returns.

Additional Read: Investing in International Funds for Portfolio Diversification

Conclusion

If you are a new investor unwilling to withstand present-day market volatility, balanced advantage funds are ideal for you. Yes, these asset allocation funds can serve as risk-adjusted solutions. You can not only invest in debt instruments and diversify but also generate income at lower equity risks.

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What Is an AT1 Bond, and What Are SEBI’s New AT1 Bond Rules for Mutual Funds?

The Securities and Exchange Board of India (SEBI) recently imposed regulations on mutual funds (MF) investments across additional tier-1 (AT1) bonds. The circular kicked up a storm in the banking and MF sectors. The Ministry of Finance (MoF) requested SEBI to withdraw the restrictions since the changes could hamper banks’ fund-raising plans and disrupt mutual funds investments.

After the MoF intervened, the market regulator decided to ease the valuation rules on AT1 bonds ushering in relief for MF investors. If you are wondering what these new regulations are and how do they affect your mutual funds’ investments, here’s all you need to know.

What are AT1 Bonds?

Additional tier-1 bonds are unsecured bonds with no pre-determined maturity date. Here, tier 1 comprises a bank’s core capital, disclosed reserves, and equity. AT1 bonds, clubbed under perpetual bonds, offer a call option which means their issuers; usually, banks, can repurchase them from you. Besides, if banks face bankruptcy or run short on capital, they can dismiss the principal amount and not pay interest.

Financial institutions issue these bonds to fulfil their capital adequacy requirements. CAR is an assessment of a bank’s capital and its risk-weighted assets. Capital adequacy norms were formulated under the Basel III accord of 2009 after the credit crisis of 2008. It states that banks must maintain a capital adequacy ratio (CAR) of at least 8%. However, in India, Reserve Bank of India (RBI) norms mandate that India’s public sector banks maintain a CAR of 12% and scheduled commercial banks require maintaining a CAR of 9%.

In perpetual debt instruments, mutual funds are the largest investors holding more than Rs 35,000 crore, over one third, of the outstanding AT1 bond issuances worth Rs 90,000 crore. For investors, the eternal tenure of these bonds and the call option lead to an increased risk but also fetch greater yields than other debt securities.

Additional Read:  How RBI Bonds Score over Fixed Deposits?

What Are SEBI’s New AT1 Bond Rules for MF?

In a directive, SEBI stated that MFs must value these perpetual-tenured debt instruments as 100-year bonds. It means mutual funds would operate on the assumption that banks will redeem AT1 bonds in 100 years. Besides, the statutory regulatory body limited the MFs’ ownership of AT1 bonds at 10% of a scheme’s assets. According to the circular, SEBI expected the changes to take effect from April 1, 2021.

However, after the Finance Ministry asked the regulator to review these regulations, SEBI amended the valuation norms. As per the latest circular, the residual maturity of Basel III AT1 will remain unchanged at 10 years until March 31, 2022. The regulator didn’t withdraw its regulations but deferred the implementation by two years.

Owing to the high-risk appetite of AT1 bonds, SEBI will increase the maturity tenure to 100 years from April 2023. The expiration date will be counted from the bond’s issuance date.

Impact on Mutual Funds

Currently, mutual funds treat the call provision date as the maturity date on AT1 bonds. If these perpetual-tenure bonds become 100-year bonds, it increases the risk since they will develop into ultra-long-term financial instruments. Besides, it could accelerate market volatility in the bond valuations.

As bond prices rise, bond yields fall. Thus heightened risk will lead to escalated bond yields, and a higher yield will, in turn, reduce the net asset value of mutual funds schemes holding the AT1 bonds. Due to SEBI’s relaxations, mutual funds will not experience panic redemptions and losses. Furthermore, since these debt instruments are not liquid, mutual funds investors cannot immediately sell their bonds to meet the redemption pressure. But the relaxing norms will ensure an orderly liquidation of additional tier-1 bond holdings.

Additional Read: Top things to know about Corporate Bond investments

Wrap Up

The move from SEBI can serve as a risk-mitigation solution to decrease portfolio risk in debt mutual funds portfolios. However, potential redemptions due to the regulations can lead to panic selling of mutual fund bonds and increase the bond yields.

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