Reasons Why You Should Budget Your Money

“A budget is telling your money where to go instead of wondering where it went.” – Dave Ramsey

Many a times people say they do not have money left for saving at the end of the every month. When you ask why they will say, man you do not know things are getting expensive or somehow some important expenses come up every month which eats up everything etc. You can see people despite having good income they struggle to save enough. Most of these people do not a have clear idea what their expenses are and the result is financial disaster.

That’s why budgeting is very important if you want to keep track your hard earned money and committed to your long term goals.

Budgeting will help you to:

  • Categorize and allocate expenses, which will help you to organize your spending and spending
  • Helps you to set your priorities
  • Helps you to understand where your bulk money goes
  • It will give a more control over your money
  • Keeps you focused on your financial goals and helps you to reach your goal faster
  • Alert you in advance if there is a potential problem
  • Helps you to decide whether you can take loan and how much

So, how to make a budget?

  1. Create a monthly Cash-Flow statement: Here you are going to capture all your income per month from all the sources and all your monthly expenditures. Below is an example:
Per Month Cash Flow Statement  
Income Amount
From my salary 60000
From my spouse salary 30000
From other source 10000
Total Income (A) 100000
Expenditure Amount
EMI 45000
Food 10000
Utility 5000
Entertainment 4000
Clothing 2000
Insurance 8000
Total Expenditure (B) 74000
Surplus (A – B) 26000

From the above cash flow statement you will be able to understand your money movements. This will give you a clear idea how much surplus you have each month and then you can plan your saving & investments accordingly.

2. Categorize income and expenses based on your cash flow statement:

You can categorize your income as follows:

  • Salary
  • Bonus
  • Part time work

You can categorize your expenses as follows:

  • Food : Groceries, Restaurant
  • EMI: Home, Car
  • Automobile: Fuel, Insurance, Maintenance
  • Household: Rent, Maintenance
  • Insurance: Life, Health
  • Kid: Activity, Education
  • Utilities: Water, Cable TV, Electricity, Internet, Paper, Mobile bill
  • Personal: Books, Cloths, Personal care, Gift
  • Entertainment: Movies, Party
  • Travel: Hotel, Taxi, Airplane

3. Create a budget spreadsheet: You can use the below example:

Item Budgeted This month Actual this month
Food 11000 10000
EMI 45000 45000
Automobile 5000 7000
Household 5000 4000
Insurance 7000 7000
Kid 8000 9000
Utilities 6000 6000
Personal 3000 2000
Entertainment 3000 2500
Travel 2000 1800
Total Expenditure 95000 94300
Income   110000
Surplus   15700

4. Analyze your budget regularly: Firstly you will be aware of your spending pattern. This will help you to discover any unnecessary expenditure, which can help you to achieve your goals. Also you will be able to analyze your debts so that you can prevent yourself to be in debt trap.

5. Improvise: You can always tune your budget. As you move forward in life, your requirements and priorities will be changing and hence based on these you should adjust your budget also.

6. Finally invest what you save: To beat the inflation you must invest and hence with your surplus money you should plan your investment properly.

Always remember the below formula:

Your Income – Saving/Investment = Your expenditure.

This means you should plan your budget such that first save/invest from your income and the left-out money you should use for your expenditures.

Tips on sticking to your budget:

  • Use cash: I know everyone is going digital, but if you use cash for all your expenditure it will help you to stick to your budget. When you use cash and you spend, you can feel that money is going out from your pocket, which is not the case with plastic money.
  • Reward yourself: Every end of the month when you have successfully executed your budget, you can give a treat to yourself. This will give you the boost to stick to your budget.
  • Self discipline: Use your credit card properly and pay the entire money every month on time. Withdraw cash as per your budget and spend as your plan.

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Personal Financial Portfolio life cycle:

Step 1: Awareness

Step 2: Present Financial Status

Step 3: Goal Setting

Step 4: Planning

Step 5: Plan Execution

Step 6: Plan Evaluation

Step 7: Financial Achievement

Step 8: Asset Transfer

Want to know why we FAIL financially!!!

“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to.”
“I don’t much care where –”
“Then it doesn’t matter which way you go.”
― Lewis Carroll, Alice in Wonderland

The above quote from Alice in Wonderland is very true in every aspect of our life. You see if you do not know where you want to go or what you want to achieve financially or what you want to be; then it does not matter which path you choose.

That’s why GOAL is very important, when you have a goal in mind it is easier to appreciate the benefits of what you are doing. And the absence of GOAL is directly proportional to “why we fail financially”.

“Setting goals is the first step in turning the invisible into the visible.” – Tony Robbins

Having goals make life great, it gives us a meaning, motivates and builds energy.

Most of the time we think we have our goal set such as “I want to be Rich”. “I want to be Rich” is a statement; you can also say it is a vision statement. It does not qualify as goal. It does not state “what is meant by Rich”, “how much assets you have to be qualified as a Rich”, it does not give us a reason or purpose behind this. Hence it is also important to know how to set a GOAL.

“Goals transform a random walk into a chase.” – Mihaly Csikszentmihalyi

First you have to create the “big picture”, what you want to do with your financial life and then separate these into little and little focuses. The best way to set your financial goal is to make your goals SMART.

       S            : Specific

      M           : Measurable

      A            : Adjustable

      R            : Realistic

      T            : Time bound

Specific: You should ask yourself whether your goal is specific or not. You should know why this goal, for whom is this goal  for, why do you want to achieve this goal, the purpose and benefits behind this goal? Hence the goals should be like:

I want to make 1 Crore as my asset within next 10 years.

“People with goals succeeded because they know where they’re going.” – Earl Nightingale

Measurable: Once you set your goal, you should start working on it. To understand whether you are working towards your goal or not, you should be able to measure it. That’s why the goals which can be measured are successfully achieved. For example if you want to save 2,00,000 for down payment of your car within 1 year, you can measure each month whether your savings are on track or you need to increase your saving or relax.

Adjustable: There are uncertainties in life, due to which your financial goals can get affected. That’s why the goals you set should not be so strict that you cannot adjust it. Let’s say you have a plan for long foreign vacation after 2years and for which you started saving towards this goal. But just before the vacation you came across some urgency for which you have no choice to use your vacation money.

Realistic: You just like that cannot set some random and unrealistic goals. The goals should be based on your ability so that you can really achieve your goal. You should always work on your earning ability so that you can achieve higher things in life, but while setting your goal you should be realistic.

Time bound: Without a timeline, it is impossible to plan and measure your goal. If you have a timeline set for your goal, it helps you to determine how much you have to save/invest each month and for how long. When you set a timeline, you bring discipline into yourself which makes you to succeed in achieving your goals.

Once you determine what you want your financial life to be after 1 year or 5 years or 10 years or even 20 years, it will definitely affect what you do today. In other way, the things you do today will determine what you will be after 1 year or 5 years or 10 years or even 20 years. Hence set your goal SMARTly, since it has a cost associate with today.

“Stay focused, go after your dreams and keep moving toward your goals.” – LL Cool J

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Personal Financial Portfolio life cycle:

Step 1: Awareness

Step 2: Present Financial Status

Step 3: Goal Setting

Step 4: Planning

Step 5: Plan Execution

Step 6: Plan Evaluation

Step 7: Financial Achievement

Step 8: Asset Transfer

7 Things to do after buying a Health Insurance Policy

You bought a Health Insurance, that’s great; as most of the people either thinks the insurance provided by their employer is enough or it is not required at all. Only buying a Health Insurance is not enough, follow below things just after buying your Health Insurance Policy:


  1. Check the policy document :

Immediately after receiving the policy document, verify all your personal details, policy term, sum assured etc are proper or not. Check for inclusions and exclusions that may have been overlooked while buying the Health insurance plan.

  1. Inform your spouse / all policy holders:

Inform your spouse/all policy holders about the Health insurance. Keep the policy document at a safe place which should be accessible to your spouse/all policy holders. Explain the claim procedure, whom to contact, what all documents are required etc.

  1. Do not forget/miss to renew your Health insurance

Put a reminder or set up ECS (electronic clearance system) to pay automatically, so that your policy is In-Force.

  1. Review your Health Insurance time to time

Time to time verify whether your present sum insured is enough as per your current requirement. Due to marriage, child or life-style changes we might have to increase sum assured or adding new member to the Health Insurance Policy.

  1. Create an Emergency Fund

Your Health Insurance policy will not be completely Cash-less. You have to pay for all the non medical expenses. Hence even through your Health Insurance Policy will cover you 100%, you have to always keep some liquid money for handling non medical expenses.

  1. Maintain a Offline Folder

Your offline folder should contain hard copies of following documents. Make sure you inform your spouse/all policy holders about this folder and ask them to take this folder in case of any medical emergency:

  • Printout/given hard copy of your Health Policy document, which should contain the premium receipt.
  • Photo copy of ID proof of all the members included in the Health Policy.
  • List of cash less hospitals tied up with your Health Policy Insurer.
  1. Last 3 years of policy document along with the premium receipt:

Sometime last 3 years of policy document along with the premium receipts are asked by the Third Party appointed by your Insurer at the time of claim. Hence better to keep these.

If you want to know the best way to buy a Health Insurance Click Here.

Why you should AVOID Mutual Fund NFO (New Fund Offers)?

When stock market is doing well, you will see Mutual Fund houses launching NFO’s (New Fund Offers). This is because more people invest when stock market is doing well and hence there are investors to whom mutual fund houses can sell these NFO’s.

What is NFO (New Fund Offers)?

NFO is the first time subscription offer for a new scheme launched by the mutual fund houses. The units are at fixed rate which is Rs 10 and can be bought during the subscription period.

What is Open-ended fund?

Open-ended fund is the one which you can buy even after the NFO’s subscription period and can redeem at any point of time.

What is Close-ended fund?

Close-ended fund is the one which you can buy only during the NFO’s subscription period and have to hold the units for the said period.

The Mutual Fund regulator SEBI (Securities and Exchange Board of India) always expresses sharp disapproval for NFO’s which are similar investment objectives from the same mutual fund companies.

Below are the reasons why you should avoid NFO:

  • There is no Track Record

Since NFO is new fund, there is no track record. It is very difficult to analyze and make a investment decision.

  • High initial expenses

Initial expenses of marketing and other expenses high in case of NFO’s

  • It is not cheaper

As the units are priced at Rs. 10, people think it is cheap and invest heavily for better return.  The fund collected from investors will be used for investing in equity/debts and NAV will be declared based on the performance.


It is always better to invest in existing mutual funds based on the investment objectives, past performance and other factors.

Download your EPF statement using UMANG Application

As you know UMANG (Unified Mobile Application for New-age Governance) mobile application is developed by Ministry of Electronics and Information Technology (MeitY) and National e-Governance Division (NeGD).

Now it is very easy to download your EPF (Employee Provident Fund) statement using this amazing application “UMANG“.

Follow below simple steps to download your E-PF statement:


Step 1: Open the UMANG application and select EPFO icon as below:

Step 2: Select Employee Centric Services as below

Step 3: Select View Passbook option as below

Step 4: Provide your UAN number and select option “Login”, you will get OTP in your registered mobile number.

Step 5: Enter the OTP which you have received

Step 6: Select the link which appears in your screen as below

Step 7: You will be able to see all the details of your E-PF account. Scroll down the screen to see the complete information

Step 8: Select the Download option to download your E-PF statement as below

Everything about investing via MF Utility

MF Utility is a “Transaction Aggregating Portal” which facilities to open “Common Account Number (CAN)”, which enable investor to invest in mutual funds by different AMC’s through a single account. MFU offers 24/7 information access includes Online Common Account Statement, Composite Portfolio information, Portfolio holding and scheme related information.

MF Utility (MFU) provides a whole lot of features to the Mutual Fund customers like (Source: ):-

  • Provides Common Account Number (CAN) facility to Investors
  • Facilitates KYC registration through KYC Registration Agencies (KRAs) for CAN creation
  • Provides standardization of forms, processes and MIS across the industry
  • Provides multiple modes of access and transaction submission options
  • Provides broad and neutral Points of Service (POS) footprint for enhanced coverage
  • Enables transactions through a common transaction form
  • Enables single payment for multiple scheme investments across various Mutual Funds
  • Accepts payments through various physical and electronic modes
  • Provides CAN based consolidated view of investments across the industry
  • Provides industry level alerts, triggers, reminders etc.
  • Provides a centralized complaint management and tracking system

What is CAN?


CAN (Common Account Number) is an industry level Folio allotted by MF Utility (MFU) to an investor. It is a combination comprising of the following:-

Number of Investors i.e. 1 or 2 or 3

Order of holding i.e. A; A&B; A,B&C; B; B&A; B,C&A; C; C&B; C,A&B; and so on

Mode of holding i.e. Single, Joint and Anyone or Survivor

Social (Tax) Status i.e. Individual, Company, Non-Resident etc.,

Using a CAN, the investors will be able to submit single request for multiple transactions in various schemes across Mutual Funds using a single form/payment.

Below are the AMCs with whom you can invest in mutual funds through MF Utility:

How to create a CAN (Common Account Number) Offline?

KYC (Know Your Customer) compliance is compulsory for CAN creation. MF Utility (MFU) facilitates KYC registration for investors along with creation of CAN. Download below forms from MF Utility Site:

  • CAN Registration Forms
  • KYC Registration Forms
  • PayEezz Registration Form

Filled forms should be signed and submitted along with the required documents at any of the MFU Points of Service ( ) or sent to the MFU Office ( at Thane for the purpose of opening CAN.

Submit necessary documentary proof as listed below for the information provided in the respective sections of the CAN registration form:

  •     PAN proof where PAN is provided
  •     Proof of KYC for all applicants
  •     Proof of Date of Birth for all applicants
  •     Proof of Bank Account for Bank Mandates registered under the CAN
  •     Proof of Depository Account for Depository accounts registered under the CAN
  •     Proof of Guardian relationship (in case of Minor applicants)

How to create an eCAN (Common Account Number) Online?

Eligibility criteria for an Individual investor are:


  1. are KYC compliant (other than eKYC) through any of the KYC Registration Agencies (KRA) / CERSAI (CKYC); (AND)
  2.  a. already have an active folio with any of the AMCs participating in MFU and are registering ONLY the bank account(s) which is/are already registered bank account(s) in any of the active folios held in the participating AMCs (OR) b. do not have any investments in the AMCs participating in MFU

can complete the process of eCAN registration completely ONLINE, by uploading the required document proof(s) through the link provided as part of the confirmation email from MFU and there is no need to submit any document physically/later.

Note: Make sure pop-up blocker is deactivated in your internet browser.

Step 1: Go to eCAN online form site here and select “New Form” as below:

Step 2:

Select “Choice of eCAN registration” from the drop-down and select “Completely Electronic”. Leave blank for “ARN / RIA SEBI REGN No” and “EUIN”. Select appropriate “Tax Status” such as “Resident Individual”. Next is “Holding Nature”, options are “Single”, “Joint” & “Anyone or Survivor”. If you are married and you wish to include your spouse as the second holder of all your mutual fund investments, it is better to choose “Anyone or Survivor” option. This will help you later financial formalities if you do not have any WILL. Hit Save and select Next.

Step 3:

Please fill all the basic details such as Name, DOB, PAN, Aahaar, Moibile number, E-mail. Update all the additional KYC details and FATCA details. Once done Hit “Save” and select Next. If you have selected “Joint” or “Anyone or Survivor” option then in the next step you have update the similar details for the other holders also.

Step 4:

Here you have to provide your Bank Details which you want to register under CAN. At max you can add 3 bank accounts under a CAN. Also select the appropriate “Bank Proof”, as you have to provide this proof once you submit the CAN request. Once done Hit “Save” and select Next.

Step 4:

Update the nominee details. Select “I Agree to the eCAN Terms”, “Save” and “Submit for eCAN”.

Upon clicking ‘Submit for eCAN’ you will be provided with validation errors/warnings, if any and you may have to rectify them and submit again. If there are no validation errors/warnings, the data will be accepted for further process and you will be provided with a PROVISIONAL CAN instantly.

If your eCAN request is successful you will get the following message. The proof documents can be uploaded immediately by selecting “click here to upload the proof documents” button.

You also will get the above confirmation via mail and you can upload the proof documents later also via the link provided in the mail. You should upload the relevant document proof(s) as stated in the email, in the respective image formats. The CAN will be approved and activated for further transactions, after necessary validations / verifications at the MFU office. In case the information / details / proofs / images (including signatures) either submitted by you / sourced by MFU from the KRAs / CERSAI / RTAs does not satisfy the requirements of “Completely Electronic” eCAN, the record will be converted to “Partially Electronic” eCAN and an email will be sent to the registered email ID of the Sole / Primary holder along with a pre-filled “eCAN Registration Form”, which needs to be printed and duly signed by all the holder(s) / guardian and submitted along with the necessary documentary proof(s), to a MFU authorized entity or a MFU Point of Service (POS) for further processing. The CAN will be approved and activated for further transactions, upon submission of the physical documents as stated.


What to do next once you  have Ssuccessfully submitted your “eCAN Application” and uploaded “proof documents”?

Wait for two weeks. If everything is fine then you will get a confirmation mail from MF Utility with subject “Allotment of Common Account Number (CAN)”. It will contain two attachments; CAN allotment letter and CAN registration summary.

  • If you do not get any confirmation from MF Utility within two weeks:
    • Call Toll Free: 1800 266 1415 number and ask for the status of your allotted CAN.
    • Write a mail to [email protected] and ask for the status of your allotted CAN.
  • You can also check what is the status of your CAN application form online:

Go to and provide the Primary Holder’s Mail Id which you have given while filling the eCAN form and select “Look Up” option. A verification mail will be sent with the verification code to the given mail id. Enter the verification code; this will lead to following screen. You can see “i” icon, select that icon; you will the current status.

What to do once you get the CAN confirmation mail from MF Utility?

Post allotment of CAN, you need to request for online access by sending an email to [email protected] after which you will be given an username and password. Once you have user name and password, login to

Important Note while creating your “Username” and “Password”: When asked for security question and answer, make sure you remember these information, as once you update there is no way to change these security questions & answers.

For SIP transactions you have to register PayEezz. So how to register PayEezz?

  • Download the PayEezz form from -> Forms -> PayEezz Form. Fill the form with your registered CAN number and your Bank Details. Where PayEezz is registered under an existing CAN, investors should submit a cancelled cheque (or a self-attested photocopy) with the name and account number pre-printed on the cheque along with the PayEezz form. If the cheque does not bear the sole/first/primary holder’s name, a copy of the passbook/bank account statement or a letter from the banker has to be submitted which indicates that the sole/first/primary holder is one of the account holders in the account.
  • PRN (PayEezz Reference Number) is the unique reference number allotted to each PayEezz registration. The same will be communicated to the investor/distributor upon successful registration of the PayEezz.
  • To get more information on PayEezz please check here .

How to buy mutual funds through MF Utility portal?

Note: Make sure pop-up blocker is deactivated in your internet browser.

Login to with your user name and password.

Once you are logged in you will land to your home page. If you have already invested via Mutual Fund Utilities, you will see your home page as below:

To invest in Mutual Funds Direct Plan, you have to select “CAN Transaction” option as shown in below picture. Here you will have 6 options:

Option 1 is Purchase:  You will choose this if you want to invest one time.

Option 2 is Redeem: You will choose this if you want to redeem few/all units from your existing mutual funds.

Option 3 is Switch:  You will choose this if you want to Switch from one fund to another fund with the same AMC.

Option 4 is SIP: You will choose this if you want to start a Systematic Investment Plan.

Option 5 is STP:  You will choose this if you want to start a Systematic Transfer Plan.

Option 6 is SWP:  You will choose this if you want to start a Systematic Withdraw Plan.

How to use “Purchase” Option to invest in Mutual Fund Direct Plan one time?

Step1: In ARN/Transaction Entry Details, select “Direct” option as below and “Proceed”.

Step 2:

In Transaction Details: Select AMC name, Folio number as “New”, select Scheme Name and Amount, then select “Proceed”.


Skip Depository AC details, select “Proceed”.

Step 4:

In this step you have to select the payment option and “Submit” your request.

What is CaRT?

As per information provided in MF Utilities site “Create and Retain Transaction (CaRT) is a facility where frequently ordered transactions can be created and retained as a template to be executed later whenever desired by a SINGLE CLICK. Every such CaRT template can be identified by an exclusive CaRT Name.

    If some funds are expected to be available for investment on a future date, a purchase transaction can be added to the CaRT to be placed later using this facility.

    If there is a future cash out flow, a redemption transaction can be added to the CaRT to be placed later using this facility.

For more information on CaRT, please click here

What is CaST?

As per information provided in MF Utilities site “Create and Schedule Transaction (CaST) is a facility where a Distributor / RIA can create and schedule a transaction to be executed on a defined future date to better manage future cash flow situations. For e.g.

    If some funds are expected to be available for investment on a future date, a purchase transaction can be scheduled to be executed on an appropriate date to utilise those funds using this facility.

    If there is a planned cash out flow (payments like EMI, rent, premium etc.) on a future date, a redemption transaction can be scheduled to be executed on an appropriate date.

Currently, the scheduled date of the transaction should not be beyond 5 years.”

 For more information on CaST, please click here.

How to use “Redeem” option?

Select your existing fund information, Redeem Option (All units or Specific Amount or Specific Units) and “Submit”.

How to use “Switch” Option?

Select your existing fund information: AMC, Folio No and Switch-Out Scheme. Now select the new Scheme “Switch-In Scheme”, you can select “All Units or Specific Amount or Specific Units” to switch. DO NOT select “Allot in Depository” from “Depository AC Details” and “Submit”.

How to use SIP option?

Note: For investing via SIP, you need to have PayEezz registered and the PayEezz reference number.

Step 1: Select “Direct” option in “ARN/Transaction Entity Details” and “Proceed”.

Step 2:

Select the AMC name, Folio number as “New”, Scheme Name, Amount (which you want to invest as per your selected Frequency), Frequency as “Monthly or Quarterly”, Instalment Date/Day (As per the option available, make sure the instalment start date and month is at least 15 days away from today). At last select the Start Date and End Date.

Step 3:

In the payment details there are two sections. In the first section “Current Dated 1st Instalment Details”, you have to provide all the details so that the first instalment will get paid. In the second section you have to select the PayEezz reference number.

When you sign SIP mandate you provide the tenure, such as 5 years/ 10 years etc in the end-date column. In case you leave this column blank then mutual fund house assume this SIP will continue till December 2099. This is called Perpetual SIP.” Select this Perpetual option as per your interest.

How to use STP option?

Select your existing liquid fund from where you want to do STP “STP-Out Scheme” and choose your “STP-In Scheme” and other details.

How to use SWP?

Select your existing fund information and “Withdraw Option”, “Amount”, “Frequency”, “Installment Date/Day”, “Start Date” and “End Date”.

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How to invest in Mutual funds Direct Plan?

Congratulation!! You know why Mutual Fund Direct Plan is better than a Regular Plan. You can read our article on the benefits of Direct Plan HERE.

Before you invest in Mutual Fund whether in Direct Plan or Regular Plan, you have to complete your KYC (Know Your Customer) formalities. SEBI requires investors to ensure compliance with the KYC norms when they initiate a transaction with any Mutual Fund house.

The Government has appointed the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) to establish a central KYC registry, which simplifies the process of complying to KYC procedures  —  and you need to do it just once; either with a bank, mutual fund, or an insurance company that you’ve invested in.

Get KYC done Offline:

You can visit CAMS-KRA website, download the KYC form and submit the same in pan India network of Customer Service Centers (CSCs). Customer service center locators are present in the website.

Get KYC Online:

  • You can visit CAMS eKYC site and avail the online facility. CAMS eKYC is a paperless Aadhaar-based process for fulfilling KYC requirements to start investing in Mutual Funds. SEBI has recently allowed Aadhaar-based KYC to be used for MF investments, for the convenience of investors. Investors completing KYC through OTP based CAMS eKYC are permitted to invest ₹50,000 Mutual Fund per year. KYC completion using biometric verification permits investments without any upper limit. Investors can avail Biometric CAMS eKYC at CAMS service centres.
  • This is the best way to get your KYC done without physically visiting to any place. This facility is provided by Quantum Mutual Fund House. Follow below steps to get your KYC done
    1. Visit and enter your PAN number. It also checks if your KYC is already verified.
    2. Enter your personal details along with your Aadhaar number and on the next page further details for Central KYC purpose.
    3. Upload self-attested scanned copies of your pan card and address proof. And for the signature, you need to sign on a plain paper piece of paper and place it in front of the camera and capture it.
    4. This is In Person Verification (IPV). Unlike the physical verification, here your live video is recorded through your device camera.
    5. In this step confirm all your information and submit it. Lastly, all you need to now is wait for 2 weeks while your KYC will be uploaded on Central KYC servers and will be verified during this time period. Further, you will also get a confirmation e-mail about your KYC Status. After the entire process is done, you will receive a 14-digit identification number- KIN (KYC Identification Number)

How to check KYC status?

Please check your KYC status HERE.

How to invest in Mutual Fund Direct Plans?

  • Respective AMC websites: Once you have decided in which fund to invest, you can visit the corresponding AMC websites and invest in direct plan. If you have selected multiple funds, you will need to register and invest in each fund house individually. This can be inconvenient if you have a number of schemes from different fund houses.
  • Mutual Fund Utilities: Mutual Fund Utilities ( is a shared platform of different fund houses. Here you have to create Common Account Number (CAN) and then start investing in different fund houses form a single account. As of Dec 2017 it supports 28 mutual fund AMCs and once you have an account with MFU you can invest across all these fund houses seamlessly.
  • CAMS & KARVY: Registrar and Transfer Agent are the one who handle transactions on behalf of mutual funds. There are four RTAs in India. CAMS, KARVY, Templeton RTA serves Franklin Templeton Mutual Fund and Sundaram RTA serves Sundaram Mutual Fund. Both Karvy & CAMS offer online investment through their website and Apps. Mutual fund AMCs supported by CAMS & KARVY are as below:

Axis Mutual Fund

Baroda Pioneer Mutual Fund

BOI AXA Mutual Fund

Canara Robeco Mutual Fund

DHFL Pramerica Mutual Fund

Edelweiss Mutual Fund

Franklin Templeton Mutual Fund

IDBI Mutual Fund

Indiabulls Mutual Fund

INVESCO Mutual Fund

JM Mutual Fund

LIC Mutual Fund

Mirae Asset Mutual Fund

Motilal Oswal Mutual Fund

Peerless Mutual Fund

Principal Mutual Fund

Quantum Mutual Fund

Reliance Mutual Fund

Sahara Mutual Fund

Taurus Mutual Fund

UTI Mutual Fund


Birla Sun Life Mutual Fund

DSP BlackRock Mutual Fund

HDFC Mutual Fund

HSBC  Mutual Fund

ICICI Prudential Mutual Fund

IDFC Mutual Fund

IIFL  Mutual Fund

Kotak Mutual Fund

L&T Mutual Fund

Mahindra Mutual Fund

PPFAS Mutual Fund

SBI Mutual Fund

Shriram Mutual Fund

Tata Mutual Fund

Union KBC Mutual Fund

What is NOT Direct Investment?

  • Demat Account.
  • Websites like, etc.
  • Banks, Brokers & Distributors.

Best online choice for investing in Direct Plan?

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Using IVR, Link Aadhaar to Mobile Phone Number for re-verification

Follow below steps to link your Aadhaar to Mobile Phone Number:

Step 1: Call the toll-free number 14546 from the phone number and you have to select you are Indian national or an NRI

Step2: Give consent to link Aadhaar with your phone number by pressing 1

Step3: Provide your Aadhaar number and press 1 to confirm

Step4: Here it generates the OTP and will send to the registered mobile

Step5: Enter the mobile number which you want to link with Aadhaar

Step6: Give consent to your operator to pick your information from UIDAI data base.

Step7: Now the IVR will mention the last four digits of your number to confirm, if the number is correct, you enter the OTP which you received in Step4 and press 1 to complete the Aadhaar-mobile number re-verification process.

Note: If you have another phone number, you can link that also by pressing 2 and follow the steps provided by the IVR.

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Why Mutual Funds Direct Plan is better choice than a Regular Plan?

Starting January 1, 2013 SEBI had mandated all fund houses to have two version of each scheme – Direct Plan & Regular Plan.

Before understanding what is Direct Plan and Regular Plan, let’s understand below terms w.r.t Mutual funds.

  • Expense ratio: This is the fee charged by the Mutual Fund Company to manage the Mutual Fund. It is the expense deducted each fiscal year for the fund; it includes management fees, administrative fees, operating costs, and all other asset-based costs incurred by the fund.
  • NAV: Net Asset Value is the sum total of the market value of all the shares held in the mutual fund portfolio including cash, less the liabilities, divided by the total number of units outstanding. The NAV of the scheme will change with every change in the Net Assets of the scheme.

What are Mutual Funds Direct Plan and a Regular Plan?

When you invest in Regular Plan, you invest through a distributor or an intermediary. In case of Direct Plan, you invest directly with the mutual fund house. When you invest via distributor or an intermediary, Asset Management Company (AMC) compensates them with a commission. The actual commission paid can vary across schemes and even across distributors. The mutual fund house does not directly charge you the commission, it gets paid from the fund and thus it affects the fund’s returns indirectly. Since in case of Direct Plan you invest directly with the fund house, they do not have to pay any commission to anyone and hence you can see the difference in Expense Ratio and in terms of return. Remember except expense ratio, everything else (portfolio, fund manager etc) is same for direct and regular plans. To understand better let’s take an example.

Let’s take Franklin India’s one of the equity funds:

Franklin India Bluechip Fund NAV (as on 22-12-2017) Expense Ratio Return 3 months Return 1 Year Return 3 Years
Regular Plan 462.34 2.23 5.82 % 28.68  % 11.02 %
Direct Plan 481.99 1.33 6.06 % 29.79 % 12 %

You can see there is a difference of expense ratio (2.23 – 1.33) 0.9 between the two plans, due to which there is a difference in 3 years return (12 – 11.02) 0.98 %.

If you are thinking 0.98% is a very small number then check this, 20,000/- every month invested in Franklin India Bluechip as SIP for 20 years:

Franklin India Bluechip Fund Invested per Month Invested for Expected Annual Return Future Value  


Regular Plan 20000 20 Years 11.02 % 1,71,82,462 23,89,086
Direct Plan 20000 20 Years 12 % 1,95,71,548

Yes there is a difference of 23 Lakhs 89 Thousand and 86 Rupees due to 0.98%. Hence you can understand which one is better, Direct Plan or Regular Plan.

SEBI Regulations for Mutual Fund Distributors:

Disclosure of Commission

In order to empower the investors through transparency in payment of commission and load structure, SEBI has, in the circular no. CIR/IMD/DF/21/2012 dated September 13, 2012, mandated that the distributors shall disclose all the commissions (in the form of trail commission or any other mode) payable to them for the different competing schemes of various mutual funds from amongst which the scheme is being recommended to the investor.

If you have already invested in Mutual Funds through any distributor, in your quarterly statement you will be able to see the actual commission paid by the corresponding AMC against the distributor.

Who should NOT invest in Direct Plan?

  • If you know how to choose mutual funds based on your goal but you are LAZY
  • If you think your distributor/broker is your financial planner and he/she suggested all the funds to invest via him/her for your goals. Interestingly you think he/she is doing it for FREE
  • You do not care how much return you get for your investments

Who SHOULD invest in Direct Plan?

  • Everyone, especially who is investing for long term. Take help of “FEE ONLY” registered Financial Planner/Advisor to choose the suitable funds and get the help of planner/advisor to invest in Direct Plan.
  • You care about your money and want your money to work for you.

How to switch existing mutual funds from Regular Plan to Direct Plan?

Switching an existing fund is same as Redeem from Regular Plan and Invest in Direct Plan. Hence all the “redeem” rules are applied in case of “switch” also; rules are such as Exit Load, Capital Gain Taxes etc. It is better for you to first stop all your regular plans and immediately start your direct plans. Wait for the time period to be eligible for exit load exemption on your stopped regular plans and then request for Switch to Direct Plan.

Important Notes:

  • All types of mutual funds can be switched except Exchange Traded Funds.
  • ELSS fund schemes that have a lock-in period, you are eligible to move to Direct Plans once units complete their lock-in period. Your investments into direct plans will have a fresh lock-in of 3 years.
  • Debt funds, the expense ratio of the regular plans is not too high hence the difference in returns is lower. Hence it is better not to switch debt funds from Regular to Direct plan.

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India’s First Cyber Safe Insurance Policy by Bajaj Allianz

On November 2nd 2017 Bajaj Allianz has launched ‘Bajaj Allianz Individual Cyber Safe’ policy, a cyber-protection product for individuals, which provides coverage to customers who fall victim to threats such as cyber-attacks, cyber extortion and cyberbullying.

As you can see more and more people are doing digital transactions on daily basis, cyber risk are also increasing. People are victimized of E-mail Spoofing and Phishing. Important data are getting lost due to Malware.

Announcing the launch of the cover, Tapan Singhel, MD and CEO of Bajaj Allianz General Insurance said, “In an increasingly connected digital world, the amount of personal data being generated, transmitted, and stored on to various digital devices is growing at an exponential rate. The critical nature of this data and the complexity of the systems that support its transmission and use, have created a gamut of cyber risks. Therefore, with cyber-attacks and threats becoming more sophisticated and prevalent, at Bajaj Allianz we identified the need for a cyber-Insurance cover for Individuals.”

He further adds, “With this cyber insurance cover, Bajaj Allianz has reinforced its commitment to provide innovative new-age risk solutions to our retail customers. This offers them a coverage against various cyber-attacks and threats, hence protecting their reputation, potential data breaches and losses in case any vital, financial or sensitive information is stolen or misused.”

Benefits of ‘Bajaj Allianz Individual Cyber Safe Insurance Policy’ are:

  • Covers identity theft, cyber stalking, phishing, cyber extortion, media liability, social media cover, etc.
  • Provides cover against financial loss, defence cost, prosecution cost, IT theft loss, restoration cost, etc.
  • Sum Insured ranges from Rs 1 Lakh to Rs 1 Crore, can be availed by individuals above 18 years

For more information please contact “Service (General Insurance)” from