Change a Job- Do's & Donts

When you should look for a change in the job

• When you start feeling that the current position you are holding in the company doesnt offer any future scope to grow
• When you start feeling that the managerial qualities which you have gathered in your past qualifications i.e MBA or Engineering or any other stream is not adequately utilized by the company & treating you as a mere dock boy
• When you start reeling your salary package CTC & feel you need a salary hike looking at the efforts you are putting to make your company grow
• When you get bogged down by sales to retail clients & you are not able to meet your sales target & look to change the sector. This type of situation mainly happens in Financial sector

Financial Do's & Dont's while changing your Job


1. Collect Form 16 from your Ex Employeer
The first & the foremost thing while changing your career is not forget collecting your Form 16 from your previous employeer at the end of financial year April of every year to make sure that you are not double taxed by both the employeers & also helps you in calculating the right amount of tax & helps in tax planning


2. Closing your Bank account with the previous employeer
Never ever forget to do this as holding multiple bank accounts with two banks is never advisable because of various reasons. The most important one of them is ofcourse being the bank charges levied to you every quarter for non maintenance of average quarterly balance (AQB). Your salary account would be converted into a normal savings account after 6-9 months. So it would no more be a zero balance account now. Different banks charges different amounts for non-compliance of AQB of Rs 10,000. HDFC Bank charges Rs 827 every quarter including service tax for non maintenance of average quarterly balance.


3. Tax Implications
If you are leaving your job in the middle of financial year & you dont declare your earlier deductions to your HR of new company which you have joined, the new company would use the same amount to calculate your tax liability. This may lead to double taxation


4. Invest Your Employee Provident Fund
I would always advise you to withdraw from existing EPF from your old company & invest in balanced mutual funds or invest in mutual funds (equity oriented) which in a long run give better returns than EPF returns of 8% 


I have added my viewpoint of do's & donot's while changing a job, if you have your viewpoints in same regard, you are most welcome to add a comment


If you like reading this article, also read

1. Best Mutual Funds in India
2. SIP in Mutual Funds
3. Dont Trade but invest for simple reasons
4. SIP in Mutual funds is the best

Regards

Mayank Gupta

mayankportfoliomanager@yahoo.com

SIP in Mutual Funds is the best

Mutual Funds in India has been the best option to get returns better than Fixed Deposits & SIP in Mutual Funds is the most suitable way to construct your Portfolio in a long run where you invest a fixed amount of money every month in different schemes of Mutual funds.

What is Systematic Investment Plan?

In simple language, SIP in Mutual funds means you instruct a Mutual fund company to debit your account with a certain amount and invest in mutual funds schemes where you intended to invest & in the process an investor is able to accumulate mutual fund units every month & build a big corpus in a long run.

How does a SIP helps??

1. You will never ever loose in a long run

Give me single instance where a mutual fund investor lost money in a 3 year horizon or a 5 year horizon when he invested in Equity mutual funds systematically. I know, there is no such instance. Lets take a real time example to explain this to help my readers getting a better view.

Example- Performance of HDFC Mutual fund, HDFC Top 200

Period	Total Investment Rs 5000 PM	Market Value	Returns (Annualised)
Last 1 Year	60,000	62,400	7.24%
Last 3 Years	1,80,000	2,66,666	27.41%
Last 5 Years	3,00,000	4,91,700	19.91%
Last 10 Yrs	6,00,000	31,40,850	31.15%
Since Inception 1996	8,75,000	80,44,000	27.04%

Also there is no Mutual funds in India which has given a negative return or NAV of Mutual Funds has never been negative if a investor holds on for 3-5 years. HDFC Top 200 Fund is the best performing funds in Equity Diversified Funds.

2. Helps you invest systematically

Lack of disciplined approach to investing hinders the financial goals of any investor. The retail investor always tries to buy in his own way & is always caught at the top when others are greedy. The solution to this problem is SIP where the investor invests every month without looking at the NAV of mutual fund. He instructs his banker to debit his account every month by such & such amount & I am sure he would be getting a NAV of mutual funds schemes at a much lower price than Lump sum Investment. 

3. Benefit of Rupee Cost Averaging 

It helps you take the advantage of Rupee Cost Averaging. It is the process of buying units of Mutual funds at regular intervals that may be monthly & accumulate in a long run without looking or considering the current NAV of the fund. For reading the detail about Rupee Cost Averaging, read this article

Rupee Cost Averaging takes you to become a Crorepati

4. Answers to the Famous Questions in Stock Markets?

 It helps you to take away from the famous questions which every investor has.

• What is the bottom of the market?
• Should I buy today or wait for further correction
• I will invest later on, the market has already run up too much
• I am waiting for a correction & when the correction will come you will not have the money to invest

After reading this article, you may Invest in SIP & Download SIP Calculator

Also read

1. Systematic Withdrawl Plan
2. Portfolio Advisory and Mutual Funds
3. Endowment Plan
4. Dont Trade But Invest for Simple Reasons

Regards
Mayank Gupta
Founder
mayankportfoliomanager@yahoo.com
http://www.wealthbazaar.in/

Number of Income Tax Payers in India

Population of India has crossed 120 Crores or more 1.2 billion.


Looking at the total number of Income tax payers in India, at present, there are 35 million tax payers in India which has increased from  28.4 million taxpayers in 2002 to 31.5 million tax payers in 2006 in India which is nearly 3-4% of the total population of India which is quite low as compared to the developed economies which have nearly 44% of the total population paying taxes out of the total population of 310 million.





The numbers mentioned above are for Income Tax payers only, but there are a lot of transactions happening  around the country in the form of indirect taxes especially Service Tax  


This huge gap between the India & United States tax payers is mainly because of the organised sectors & industry in US & online bank transfers happening over there as against people paying in cash to labour & agricultural workers who doesnt come under the tax bracket. This huge gap is expected to reduce in the coming years because of the expected orgainsed sector boom in India i.e Retail, Infrastructure, IT etc


I would also like to mention here about the advance Tax collection numbers which Indian Govt collect every year is close to 1000 Crores or 10 billion


If you like this article, kindly read

1. Dont Trade, But Invest
2. Personal Financial Planning in India 
3. Best Mutual Funds in India

5 Steps to make Money from Blogging

Some few months back, a lot of people in India & United States talked about global recession. A lot many people around the Globe lost their million dollar jobs but one thing remained unaffected that is Blogging. 


What is Blogging???
A blog is a website or a part of website in which a individual who is the owner of the blog writes articles on his area of specialisation & make it more interactive by allowing comments on his various articles & solving out visitors queries. The main earnings for any blogger comes from Google Adsense.


Yes , "There is blogging culture in India, United States" with the significant upliftment in the education system in the entire world esp. the Asian gaints & the growing popularity of Internet & because if these social networking sites like facebook, twitter, orkut people are getting use to Internet.


5 Steps to make Money from Blogging


1. Select a niche Topic
The first & the foremost thing to understand if you want to make money out of blogging is selecting a right niche which you have a passion for to 

• Write
• Read
• Listen

If you just select a niche just on the basis of what people around you are saying or doing or making million dollar money, believe drop the idea to start a blog. You will never succeed. So, if a aspiring blogger is a MBA in Finance, he should jump into writting tech blogs. 


2. Decieding on the name of the blog
Always try to have a keyword relating to your niche in your domain name & try to make your blog on wordpress as it is possible to have a better SEO on wordpress than on blogger. For Example, for a person who want to start up a blog on mutual funds, he may deciede www.mutualfundindia.co.in


3. Target Top Keywords of your Niche & SEO
This is very important tool which most of the bloggers fail to understand is the quality of keywords you use in your articles & especially in the articles headings. This may drive quality & targeted audience to your blog from search engines on a auto pilot basis. For example, If you are looking to make a blog on health tips, the keywords like diabeties , fever, hypertension, heart, gastro, gynae problems are to used in the articles strategically & if possible in the headline also. 


4. Write Quality Posts Only
My dear, donot blog just to write. If you write, write only quality. Quality is the king of blogging, not quantity. It is important because it will help you to gain more regular visitors & readers, and thereby creating long term relation with your blog. 
Secondly, it may also help to create backlinks. It is also very important for a aspiring blogger to update his blog everyday, may be twice atleast in the first year of the life of the blog. Believe it or not, it pays off because it takes atleast one year to build loyalty among your dear readers.


5. Monetize your blog with Adsense & Affiliate Marketing
Google is the best way to monetize your blog easily by placing ads on your pages of the websites which are related to your niche & when a visitor clicks onto your ad, you get paid even as high as 3-4$ per click, if your blog is in niche segement. But normally, it takes 6 months for Google to approve your adsense account. 
You may also go for affiliate marketing programmes which means promoting other companies products on your blog. Some of the affiliate marketing websites are

• www.clickbank.com
• www.shareasale.com
• www.paydotcom.com

It is quite possible to earn around 1500-2000 $ per month if you are able to attain your alexa ranking, a universal ranking method websites below 100000 which is not difficult if you write quality with passion

If you do this for 12-18 months with

• Passion
• Patience

You will succeed for sure & make money online in dollars.

I hope after reading this, you will strat up a blog & come back to read this after successful launching of your blog


If you like this post, you may also read this Post "Most Searched Keywords on Internet"
This would help you knowing, which are the Top keywords searched on Internet. According you must search Popular keywords for your niche in Google Adwords Keyword Tool

Regards

Mayank Gupta