Tuesday, April 21, 2009

Codicil ; what is codicil under succession act ?

"Codicil" is an instrument made in relation to a will and explaining, altering or adding to its dispositions and shall be deemed to form a part of the will. Accordingly, a codicil has to be executed and attested just as a will.
(According to the section 64, Indian Succession Act)

In the event if the will has been properly made in Law, The testator may want to make some changes in the will, He can cancel earlier will or make a fresh will incorporating the desired changes or he may alter some parts of the existing wills suitably by way of CODICIL. Such a codicil will form part and parcel of the existing will. A Codicil to be valid must be executed and attested in the same manner as a will. It is supplementary document to the will and cannot be independent by itself.

following are the characteristics of CODICIL
  • It is an instrument made in relation to a will
  • It explains, alters or adds to the dispositions of a will
  • It shall be deemed to form part of the will
  • The testator may want to change the name of the executor by adding some other names via codicil
  • The testor may want to change certain bequests by adding to the names of the legatees or subtracting some of the names, perhaps due to the death of the beneficiaries or the Executor. This can be done by making a codicil.
  • The Codicil must be reduced to writing.
  • It must be signed by the testator and attested by two witnesses.

Friday, April 17, 2009

FICO Credit Score; How does it work ?

How does Fico credit score works ?

When any one gives you a credit or a credit card they looked at a parameter or a score card and its called Fico credit score. It is an indication of your credit risk at a particular point in time. In other words, it is calculated on the basis of the latest gist of information enclosed in your credit report when the score is requested. When your fico credit score is high, that means you are a low risk to them.

Fair Isaac Corporation computes the mathematical formula which arrives to your fico credit score. People who have a high fico credit score are because they pay the bills on time. They go for a credit line increase only when needed. They apply for and open new credit accounts only when there is a requirement. They do not max-out credit cards.

The Fico credit report is regularly updated with new information from your creditors. So your fico credit score two weeks ago is probably not the exact score a lender would get from the consumer reporting agency today. Fico scores range from 300 to 850. For a Fico score to be calculated on your credit report, the report must contain at least one account which has been open for six months or more. Also the report must contain one account which has been updated in the past six months.

There is no such thing as a good fico credit score. It is hard to say what a good score beyond the context of a particular lending decision. Fico scores are considered on the basis of your payment history, length of credit history, amount owed, any new credit and types of credit in use. The higher your fico score, the lower risk are you to the lender or the creditor.

Everybody should work on to improve there Fico Credit Score !

Thursday, April 16, 2009

Credit Score ; How to improve it ?

Credit score how to boost them up ?
Following are the ways in which you can improve your credit score

1) The most important thing to boost your credit score is to be punctual with your payments.

2) Review your credit report and rectify any errors you come across regularly. One error or discrepancy in your credit report could impact it negatively and has a possibility to ruin your credit history. So in order to boost your credit score, take conscious steps to monitor your credit report as frequently as possible.

3) You could also enroll with a credit monitoring service which automatically monitors your credit file every business day and alerts you of any untoward change on your credit file.

4) Close any accounts that you do not need or use. The benefit is that this reduces your amount of available credit and can help boost your credit score in the bargain.

5) Don’t let anyone make any inquiry on your credit report unless there is a total requirement for doing so. Increasing number of inquires on your credit report has an inbuilt tendency to ruin it.

6) Credit scores are dynamic. They are based on your current credit report which means that it changes every time your credit report changes. Although the change may be negligible, it could be much more glaring also. Boost your credit score by reducing the balance on credit cards to least amount of your available credit.

7) If ever a loan from a bank is denied because your credit score was low, you will be presented a list of reasons for that low score. You can review the reasons along with your credit report and take necessary steps to boost your credit score.

8) You can also turn your score upwards by taking alternative measures to make your credit card payments on time. There are alternatives like auto pay (direct debits), online payments or payment over the phone. Normally banks charge a certain fee for this service but the payment gets posted on the same day. This means that even if you make the payment on the due date, you can have the peace of mind that you have not gone past due. Conscious efforts on the part of the credit card holder to make the payments on time and consistently, is seen as an improvement. This surely will save you from succumbing to a default rate.

9) The notable thing is to get credit or ask for a credit line increase only when you need it. It is a different thing when you are trying to set up your first credit. Use your available credit line carefully and be regular with your payments.

10) The best thing is to keep on saving bit by bit every month and invest in Mutual funds or other appreciating assets rather then live on credit to credit and keep on paying interest.

ALWAYS PROMOTE DEBT FREE LIFE AS FAR AS POSSIBLE.

Wednesday, April 15, 2009

Credit Card Debt - How do I come out of it ?

Credit Card Debt - How do I come out of it ?
Majority of American population is addicted to the plastic money and the addiction has turned them to victims of the credit card debt. It is one thing to use the credit card and enjoy the frills and the instant gratification which comes along with it, but it is tiresome to pay the price for it later. To get out of credit card debt and still use the credit card wisely is more of a mental thing.

You just need to change your attitude and develop some amount of self control.

1) Use your available credit line carefully and make your payments on time. Your payment history makes a lot of difference; you stand to improve your credit score dramatically if you do not miss a payment.

2) The first thing to get out of the credit card debt is to be punctual and consistent with your payments.

3 ) Try and pay more than the amount of minimum due. The credit card companies use smart business tactics when they ask you to pay only a small percent, the minimum due of the amounts owed by you. When you pay just the minimum amount due, the credit runs for a longer period, which means more finance charges, late fees and more revenue for the credit card companies.

4) You can also get out of credit card debts by taking alternative measures to make your credit card payments on time. There are alternatives like auto pay direct debits, online payments or payment over the phone. There is a possibility of a fee for a payment over the phone but it is worthwhile because it will not show as a late payment in your account and ruin your report unnecessarily.

5) Conscious efforts on the part of the credit card holder to make the payments on time and consistently, is seen as an improvement. This surely will save you from succumbing to a default rate or being delinquent.

6) Review your credit reports and rectify any errors you come across. One single incident of identity theft or discrepancy in your credit report could ruin your credit history. So in order to boost your credit score, take conscious steps to monitor your credit report as frequently as possible. You could also enroll with a credit monitoring service which automatically monitors your credit file every business day and alerts you of any changes not initiated by you.

7) Close any accounts that you do not need or use. The benefit is that this lowers your amount of available credit and can help maintain your credit score in the bargain. Don’t let anyone make any inquiry on your credit report unless there is a total need for doing so. Increasing number of inquires on your credit report has an inherent tendency to spoil your credit ratings because they imply that you are in dire need of credit. Your intention should be to carry only one or two credit cards with balances paid in full.

8) The notable thing is to get credit or ask for a credit line increase only when you need it. It is a different thing when you are trying to set up your first credit.

9) Consolidating your accounts to reduce your payments is another alternative which could work to your advantage. Unless you have maxed out your credit line, you could combine your debt from other credit cards, onto one of your credit cards with the low interest rate and pay it off.

10) You could call the credit card company and ask them to help you with the transfer of funds.
When you have to pay off your credit cards, start off by paying from the one which has the lowest rate first, and then proceed to the next one with a slightly higher rate. You could call up the credit card company and tell them the rate of interest rate is high, and that you would like to negotiate for a lower interest rate. If you have been a faithful customer, the credit card company would give you better options or even offer you a credit card with a lower interest rate. But then, you will have to call up the credit card company and ask them to lower the interest rate. They would want to retain you as their customer and would not like if you switch to another competitor and they would do everything in their capacity to keep you happy.

Use your credit card wisely and Debt should be out of the window for your hassel free future.

Monday, April 13, 2009

Credit Report for Free

Every Consumer Reporting Agency (CRA) has to furnish free credit reports, when voluntarily requested by you once in a year As per the amendment to the Fair Credit Reporting Act.

Your credit report contains information relating to your payment history, the amounts owed by you, your residential address, how consistently you pay your bills, whether you have been sued, or if you have filed for bankruptcy. All this information reflects your FICO (Fair Isaacs Corporation) score, which is a snap shot of your credit risk. A high FICO score means you are a low credit risk to the lenders. The top three nation wide credit reporting agencies are Equifax, Experian, and Trans Union. These as well as the other CRAs sell the information in your credit report to creditors, lenders, mortgage companies so that they could evaluate your application and take a decision whether to extend the credit to you or not.

Free credit reports are useful for a variety of reasons. One of them is well, because it is free. Secondly, if you have to buy something prestigious like a home or a car, or if you have to apply for a job, then most of the lending organizations and company refer to your credit score and credit report. So it helps if you have fair, accurate and up to date information about your credit status in your credit report.

A free copy of the credit report will be provided to every American citizen. To order your copy of a free credit report you could go to the website, www.annualcreditreport.com, the only authorized source for your free annual credit report from the three nationwide consumer reporting companies. You could also call their toll-free number, or write an application and request for your free copy. You could call at 877-322-8228, or fill in the Credit Report Request form and mail it to

Annual Credit Report Request Service,
P.O. Box 105281,
Atlanta, GA 30348-5281.

To get your free credit report, you have to provide personal details like your name, address, phone number, Social Security number and date of birth. If you have relocated in the past two years, you need to give your last address as well. You may have to also give information like the mortgage payments you are paying or the debt amount you have to clear.

As you are aware that identity thefts are on the rise. It is very easy for anyone to access your credit file or fraudulently apply for a credit card in your name. After that the criminal could even do balance transfers in your name, ask for a credit line increase and process address changes without your knowledge. Not only do you have to bear the brunt of paying a hefty bill for no fault of yours, but you also spoil your credit ratings. So it is better to be safe than sorry. So as a security measure, you get your free credit report only when you apply for it. If you get an email or a pop up ad, asserting that it is from the three top credit rating agencies and would give you a free credit report, please ignore it because it could probably be fraudulent. You must not give any sort of personal and credit information because none of the three credit reporting agencies or their website will ask for your personal information, unless you voluntarily ask them for a free credit report.

A free credit report is also provided when your application for credit line increase is declined. You will get a letter from the company giving you the reason for the decline along with the phone number of the credit reporting agency. You have two months from the date of receiving such a letter, to contact the credit reporting agency and asking for a copy of the free credit report. This happens in reasons when your application for a job or insurance is declined as well. Even in cases when you see a discrepancy in your credit report or if you feel that there is an identity theft being committed on your credit card, you could apply for a free credit report from a credit reporting agency. You also have the right for a free credit report if you are unemployed and would take up a job within the next 60 days. Under no other circumstance do you get a free credit report, other than the no-cost credit report which you get annually from the top three nation wide credit reporting agencies.

You could order one report at a time from the three CRAs or you could even ask for all the three reports at a time. However, it is sensible if you ask for the three reports over a course of time in the year, because the information is up-to-date and accurate, and also you can keep a check on any kind of untoward activity on your credit file. If you are credit conscious and would like to completely guard any kind of identity theft in your credit card accounts, then you could enroll with a credit monitoring service. This service automatically monitors your credit file every business day and alerts you of any kind of changes in your account which is not initiated by you. There could be a free trial period for you to try the automatic monitoring system. You also receive a copy of a free credit report along with the automatic credit monitoring system.

It's always is wise to be updated with your credit report at least once in a year.

Wednesday, April 8, 2009

Simple Investment Strategy ; It works most of the time

Many people do the work of selecting stocks and they dont know when to buy a stock when to sell a stock and most of the time sell the stock when it is about to rise and they buy the stock when it is about to fall.
Here is one of the simplest investment strategy if you want to make better returns then your FDs.

Investing in the following ratio
1) 50% in NiftyBees (Exchange Traded Fund and underlying asset is Nifty) LARGE CAP
2) 25% in JuniorBees (ETFund and underlying asset is BSE 100 stocks) MID CAP
3) 25% in GoldBees or Gold ETF or Debt Fund

Now when the market rises you can sell equity and buy debt it is called rebalancing the portfolio and when market falls you can buy equity and sell debt and again rebalance it to original ratio.

This is most simple and easy to follow strategy you can rebalance either every month or when the market is very volatile you can see if the ratio are out of order by more the 10% then you can rebalance them.

Many people in the age group of 20 to 35 years can follow the ratio (50,25,25)for Long term investment, however if you are nearing to retirement then you should have ratio (20,5,75)

Most of the peopl can have there version of the ratio according to there risk taking capacity as well are there goals.

Thursday, April 2, 2009

Best performing Mutual Funds for the period of 1/04/2008 to 31/03/2009

Top performing Diversified equity Mutual Funds for the Financial year ending on 31st March 2009

1) Franklin Asian Equity
2) UTI Dividend Yield Fund
3) Birla SL Dividend yield
4) UTI Contra Fund
5) Sahara Growth Fund

Top performing ELSS Tax Saving Mutual Funds for the financial year ending on 31st March 2009

1) UTI Long term Advantage S2
2) HSBC Tax saver Equity Fund
3) Reliance ELSF series 1
4) Reliance Tax saver ELSS
5) Can Robeco Equity Taxsaver

This funds have performed much better the the average broader market. The average broader market returns were -37.9 % for sensex and -36.2 % for Nifty for the period 1/04/2008 till 31st March 2009.

Wednesday, April 1, 2009

Top performing mutual funds for the month of march 2009

Top performing ELSS Mutual Funds for the month of March 2009

1) JM Taxgain Fund
2) Bharati AXA Tax Advantage Fund
3) Reliance ELSF Series I
4) Birla SL Tax Relief 96
5) ICICI pru Tax plan

Top performing diversified Equity Mutual Fund for the month of March 2009

1) Templeton Equity Income
2) Principal Emerging BlueChip
3) Templeton Growth Fund
4) Principal Global Opportunity Fund
5) Kotak Global Emerging Market