July 2021


Understanding what is mutual fund redemption and how to redeem

Mutual fund redemption is when investors want to sell their mutual fund units or holdings. If there is an exit load, investors need to pay it upon redeeming their units. As a result, they receive taxable capital gains when they redeem their units. Capital gains are taxed differently depending on the type of fund and the duration for which the amount was invested. Therefore, investors must evaluate all the costs associated with redeeming their mutual fund investments.

Online mutual fund redemption process

You, as an investor, have the option to either specify the units you want to redeem, the amount you want redeem, or if you want to redeem your entire investment in that mutual fund scheme. One way to redeem mutual funds is through an online process. You can visit the mutual fund’s official website.

  • Select online transactions
  • You will need to log in to the website using your folio number and your Permanent Account Number to access your mutual fund
  • The next step is to choose your plan and the number of units/amount you want to redeem
  • After that, you can confirm your transaction and complete the process

What are the other options to redeem mutual fund units?

You can redeem your mutual fund units using any of the ways listed below if the cause for redemption is clear and finalised.

  • Directly through your AMC: You could redeem your mutual fund using the asset management company’s (AMC) website if you invested directly with the AMC. Units can also be redeemed in person at the AMC office. You will get the amount by NEFT or a cheque delivered to the registered address once your request is processed.
  • Using a trading or depository account: If you purchased mutual funds using a demat account or a trading account, you can redeem your units using the same account. Following the completion of the procedure, an electronic payout (NEFT or IMPS) will be initiated in response to the redemption request. The funds will be sent to the same bank account to which your demat account is linked.
  • Offline via a distributor or an agency: Mutual funds purchased from several AMCs can also be redeemed through central systems. Download a redemption form and return it to the nearest CAMS office, filled out and signed.

When is the right time to opt for mutual fund redemption?

Investing in mutual funds can help you to achieve financial goals; however, there could be certain conditions that might make you exit a scheme before it earns attractive returns for you. A few of these conditions could be personal, wherein selling your mutual funds units is a wise call.

For conditions that solely depend on the market situation and the performance of the fund, it is likely that some professional guidance could go a long way in making your investment work well for you. This is where financial advisors step in with bespoke investment plans and timely alerts to aid your goal of short term or long term wealth creation, while taking into account your risk appetite.

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Personal Loan for the Unemployed in Singapore: Useful Tips

If you look at most loan deals in Singapore, they are targeted at employed persons, but what about the unemployed? Well, it does not mean that since you are not employed, it is impossible to get a loan. In this post, we take a closer look at personal loans for the unemployed to help you answer the main question, “How do you secure a loan?”

A Brief about Personal Loans

A personal loan is a type of credit given by a lender to a borrower in a lump sum and repaid in installments. It is a form of unsecured loan, implying that you will not be required to put forward collateral to get the loan approved. In Singapore, personal loans are offered by a wide range of lenders, from banks to licensed moneylenders and online lenders.

Therefore, whether you want cash to fund a major purchase or to further your education, do not hesitate to apply for a personal loan. The best way to do it is through Lendela, a licensed lenders comparison site.

Tips to Help You Secure a Personal Loan as an Unemployed Singaporean

Now that you know what a personal loan in Singapore is, here are some useful tips to help you secure it as an unemployed person:

#1: Make Sure to Have a Good Credit Score

As we mentioned earlier, personal loans in Singapore are unsecured. Therefore, lenders put a lot of focus on credit score to determine the creditworthiness of applicants. As an unemployed person, lenders will give the credit score more weight and are likely to approve your loan if your credit score is high. Therefore, you might want to start by improving your score using these methods:

  • Get your credit report and have errors, if any, fixed.
  • Clear outstanding debts.
  • Get a good credit mix.

#2: Demonstrate You Have a Reliable Income

In addition to a good credit score, lenders also put a lot of weight on your ability to repay. Like an employed person who can attach copies of payslips from the employer, you also need to provide proof of income. For example, if you run a business and get monthly income or you rely on rental income, it is what the lender wants to know. So, provide the necessary documentation so that the lender can make the decision about your application.

#3: Use an Employed Person to Serve as Your Guarantor

If lenders are still not convinced to give you a personal loan, consider using an employed person with a good credit score to help you secure a loan. This implies that although it is you who will get the money from the personal loan in Singapore, the guarantor commits to shoulder the burden if you default or become unable to pay. Therefore, you better stick to the agreed loan payment plan to avoid getting the guarantor into trouble.

#4: Apply Through Lendela

Different lenders in Singapore have varying conditions, and it will be a good idea to try several. For example, many online moneylenders might be willing to approve a personal loan, where conventional banks are likely to decline. Instead of working on tens or twenties of applications, you should consider working with Lendela.

With Lendela, you only make a short application, and they will forward it to different lenders. This means you are likely to get many lenders willing to work with you. Within a short time, you will be notified of the offers, have a look at them, and select the best personal loan for your situation.  Finally, start repaying the personal loan until it is completed.

If you are unemployed, you can get a personal loan in Singapore just like other employed persons. Just make sure that you have a reliable source of income, and the credit history is excellent.

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Best FD to invest in during 2021

A fixed deposit (FD) is a popular method of saving money used by risk-averse investors. FDs give assured returns after a predetermined period of time and the investor can calculate beforehand the total maturity amount that will be received by them. The interest rates offered by each bank, NBFC and post office are varied and determined by factors such as prevailing FD interest rates. The interest earned on the fixed deposit compounds over time. This compounding effect ensures attractive rates of interest on fixed deposits.

Best FD interest rates

A good rate of interest on a fixed deposit of three years is offered. Three-year fixed deposits yield much higher interest rates than one or two-year tenures. Here are the most attractive interest rates offered by various banks in 2021 for a three-year tenure-

Bank Regular interest Senior citizen interest
Bajaj Finance 6.50% 6.75%
Shriram City 8.84% 9.24%
Yes Bank (special rates) 6.50% 7.00%
Fincare Small Finance Bank 6.30% 6.80%
Mahindra Finance 6.30% 6.55%
Sundaram Finance 6.25% 6.75%
KTDFC 6.00% 6.25%
ICICI Home Finance 5.55% 5.80%
ICICI Bank 5.15% 5.65%

The total amount that you will receive upon the maturity of your FD depends on the interest payout selected by you. If you choose the monthly, quarterly or annual payout options, the FD amount will be credited to your savings account. In the case of the reinvestment option, your interest will be compounded with them and credited to your bank account along with the principal invested when the FD matures.


A fixed deposit is a sought after investment device as it provides assured returns irrespective of the economy. There is a sense of surety that the total amount will be returned to you upon maturity with interest. In fact, the use of compound interest ensures faster growth. For senior citizens, FDs are a safe and attractive option because Senior Citizen FD rates are higher.

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Some Smart Ways to Get Out of Debt and Realize a Successful Financial Future

Accumulated debts can shield you from achieving the financial breakthrough you are looking for regardless of the effort you put in. However, no matter the amount of debt, you can work towards getting yourself out of debt by readjusting your lifestyle and employing the right techniques and tools. Today, you can find several successful entrepreneurs who overcame the shackles of debt to achieve their financial breakthroughs. Most of them can attribute their success to smart strategies such as utilizing extra payments, maximizing the little cash they have, and keeping a positive attitude.

Here are a few tips that can help you get out of debt and achieve financial success.

Stop borrowing

When looking to get out of debt, it makes sense to stop borrowing. This means no more loans, credit cards, or any other kind of financial borrowing. You need to realign how you view money ad debt for you to overcome your debt problem. Continued borrowing means sinking deeper into debt. At this point, you need to start living within your means while slowly adjusting your lifestyle. At this point, you should not think about taking another debt to clear all your debts till you have an overlay of your current financial position.

Track your expenditures

Your expenditure is what is bleeding money out of your wallet. By tracking your expenses, you can understand and identify where all your money is being spent. When looking to manage your debt, it is prudent to make budget cuts, which can be difficult if you don’t how you spend your income. When tracking your expenses, be sure to include monthly bills, daily expenses, and even your debt payment obligations. You can keep notes, download a money app, keep receipts and create a budget worksheet to help you keep tabs on your expenditure.

Work some side hustle

You need to put your skills to work to earn some extra cash. In the digital era of today, people with coding or web design skills can easily find something to do on the side to bring in an extra paycheck. When it comes to side hustling, there are numerous opportunities you can take advantage of. You can either venture into second-hand clothes, setting your home as an Airbnb, or even working as a virtual assistant online. You can borrow a few leaves from Reed Hastings, the co-founder of Netflix.

Having incurred a large late fee at a video rental store, he put his skills to work creating Netflix. Over time Reed Hastings net worth has grown to join the ranks of billionaires.

Set up a budget

Having organized your expenditure and sought out an alternative source of income. It’s now time to set up a budget. When coming up with your budget, you should use your spending guide to come up with an elaborate budget encompassing all your needs. Since you cut most of your expenses when tracking your finances, you need a new budget that highlights your new expenditure. When designing a budget, it is best to strike a balance between a strict budget and livability to get out of debt. Don’t just leave it at the mental stage. Put it into writing, and be sure to include your financial goals and emergency funds within the budget.

Create a debt payment plan

Having put your finances to order, you now have to come up with a strategy to take care of the existing debt. You need to come up with a plan that maximizes your payoff schedule. One of the best and fastest ways of getting rid of your debt is through the snowball approach. This involves channeling all your debt payment funds to one debt at a time. This way, you can clear off your debts quickly. When choosing which debts to prioritize, find those with high-interest rates first.

Pay more than the minimum payment

To achieve financial success, you need to clear your debt as fast as possible. Aside from channeling funds towards clearing one debt at a time, you can opt to pay more than the minimum payment when servicing your debts. Any extra income earned from your side hustle can be used to make higher payments to bring you closer to a debt-free lifestyle.

Debts can become a major obstacle to your financial success. Without proper handling, these debts can sink you further into bankruptcy. It is advisable to either seek professional help or take charge of your own finances to get out of debt.

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How Does a Strong Economy Boost Financial Markets

Positive Strides in the Economy Boost Markets

When the economy is doing well, everyone is doing well. In a good, prosperous economy, the automotive sector, the finance sector, and the retail sector thrive. This is because there is a lot of money being exchanged and people are well employed. By all means, a strong economy means strong people and healthy lifestyles. This is what we should strive to attain as a society and by partaking in frequent business, we make this possible. Here are four effects of a strong economy.

The Automotive Industry Grows

One of the industries that prospers the most when the economy is booming is the automotive industry. When many people have jobs and very few people are unemployed, there are more people who are able to purchase vehicles. People who have money to spend often spend it on reaching their stock price target. Vehicles are quite an investment and can amount to thousands of dollars worth of commitment.

Therefore, even if someone chooses to do financing, they need to have a steady stream of income to support their purchase. This is why automotive vehicle purchases go up when the economy is doing well. When the economy is doing well, well-employed people are driving around in newer vehicles that they have financed or local dealerships.

This is a sign that there is a good economy in an area when there are fewer people on the buses and more people driving their own cars. The automotive industry appreciates this growth and it is all around good for all people involved.

The Real Estate Industry Booms

When the real estate industry booms, you really know that the economy is doing well. Real estate is worth a lot of money and even the commissions on a strong rental agreement with a company can amount to thousands of dollars. You will know that a region is thriving in an economic boom if many houses are for sale.

This is a sign that new buyers are coming in and the people who own the houses in the area want to sell their homes for more than they bought them. Economic prosperity is often accompanied by real estate success. Signs of real estate success are many houses for sale in an area and new buildings being put up.

Whether these buildings are commercial or residential, it is a sign that the real estate industry is thriving in the area and people are able to afford high-cost rentals, as well as expensive houses. This is a positive indication of a good economy.

Large Scale Marketing

How will you know that the economy is doing well? You will see a lot of large-scale advertisements. When news broadcasting stations are advertising for small companies via commercials, you will know that the economy is doing well. Additionally, if you see a lot of billboards being put up, that is a sign that the economy is booming.

This is because putting up a billboard and advertising on it is a very expensive feat and if the advertising companies have the money to do this, the economy is likely doing very well. Additionally, if companies actually have the money to pay the billboard fees in order to advertise their services or products, the economy is doing even better. When small businesses are able to generate the revenue that allows them to advertise on large media platforms like billboards, the economy is certainly thriving because even the little guy is making money.

Restaurants Opening

A strong economy boosts the fine dining industry. This is because those who have much expendable income will often dine out rather than cook at home. When they choose to dine out, they will frequent restaurants that are reputable for the quality of their food and impeccable service. This amounts to a strong demand for fine dining.

Fine dining is a luxury that is afforded by ample income. When many fine dining establishments are brought up in an area, you know that money is coming into the area. It means that those who have expendable income for the luxury of eating out are moving into the area and bringing with them their spendable money. This is a sign that the economy is boosting and it supports small businesses that specialize in quality dining.

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