July 2021

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.

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.

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.