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Top 5 Mutual Funds Every Young Professional Should Know About

Starting your investment journey early can give you a solid head start. As a young professional, you have one big advantage – time. Since you’re at the beginning of your career, you also have a higher risk tolerance. That means you can take slightly bolder investment decisions because you have the time to hedge against short-term market ups and downs. Mutual funds can be a smart way to grow your money steadily while balancing risk and return.

But with so many options out there, it’s easy to get confused. Here’s a quick look at the top five mutual funds in India that can be a good fit for young investors.

1. Franklin Build India Fund

This sectoral equity fund focuses on infrastructure and capital goods, making it ideal for long-term investors who want to participate in India’s growth story.

Why it works:
• Targeted investment in infrastructure sectors that benefit from economic growth
• Suitable for long-term capital appreciation
• Managed by a reputed fund house
• 3-year annualised return: 27.5%

A strong choice if you’re looking to grow your portfolio with sectoral opportunities.

2. Aditya Birla Sun Life Medium Term Plan

This fund aims for income generation and moderate capital appreciation through a mix of corporate debt and government securities.

Why it works:
• Balanced exposure to mid-term debt instruments
• Suitable for investors with moderate risk appetite
• Provides relatively stable returns
• 3-year annualised return: 14.36%

Great if you prefer debt exposure with lower volatility.

3. SBI Magnum Gilt Fund

This fund primarily invests in government securities and is ideal for risk-averse investors who want safety with stable returns.

Why it works:
• Focused investment in government bonds
• No credit risk involved
• Suitable for conservative investors
• 3-year annualised return: 7.83%

Perfect for those who want safety over high returns or want to invest in low-risk options to balance their portfolios.

4. Motilal Oswal Midcap 30 Fund

An equity fund that focuses on high-growth potential mid-cap companies across diverse sectors.

Why it works:
• Exposure to mid-cap growth stories
• Higher return potential over the long term
• Sector diversification with a focused approach
• 3-year annualised return: 28.83%

Ideal for young investors who can take higher risks for better returns.

5. ICICI Prudential Infrastructure Fund

This fund invests in infrastructure-related sectors like construction, energy and transportation. It aligns well with India’s economic development trends.

Why it works:
• Good sector-specific growth potential
• Strong performance in economic expansion phases
• Long-term wealth creation opportunity
• 3-year annualised return: 28.22%

A great pick if you want to ride the infrastructure boom in India.

These top 5 mutual fund options cover a wide range of investment goals and risk profiles. You can mix and match depending on your comfort level and financial goals.

How to choose the right fund?

Choosing the right fund doesn’t have to be complicated. So if you’re wondering which mutual fund is best to invest in? Think of it like finding the right fit for your lifestyle and goals. Here’s how you can go about it:

• Start with your goal: Ask yourself why you are investing. Is it for something you need in a couple of years or something big a few years down the line? Your goal decides how long you should stay invested and what kind of fund you need.

• Think about risk: Since you’re young, you can take a bit more risk compared to someone closer to retirement. A little risk now could mean higher returns later because you have time on your side to ride out market ups and downs.

• Check how the fund has done in the past: Past performance isn’t a guarantee, but it gives you a fair idea about how the fund behaves during good and bad market phases. It’s like checking a track record before you commit.

• Look at the expense ratio: This is just a small fee the fund charges to manage your money. The lower the expense ratio, the better it is for you. This is because more of your money stays invested and working for you.

• Read the fund’s objective: Every fund has a goal of its own. Some go for steady growth, some chase higher returns and others aim to balance things out. Make sure the fund’s objective matches your goal.

Mutual funds offer a smart way to build wealth gradually. As a young professional, time and better risk-taking capacity are on your side. Use that advantage. Choose the right mix of funds, stay invested and let your money grow.

Having said that, if you ever need quick funds, you don’t have to break your portfolio. You can opt for a Loan Against Mutual Funds from Fibe. Within 10 minutes, you can get funds up to ₹10 lakhs credited to your account. The best part is that you can complete the application process from the comfort of your home. So your money keeps working for you, and you still get the cash you need when required!

FAQ

1. How do I start investing in these top 5 mutual funds?

Getting started is simple.

• Choose a fund that matches your financial goal
• Sign up with a trusted mutual fund platform or mobile app
• Complete your KYC (Know Your Customer) process
• Decide the amount you want to invest
• Make your first investment

That’s all and you’re good to go.

Everything you Need to Know about Short Term Capital Gain Tax on Mutual Funds

A mutual fund is a means by which individuals can pool their funds and a professional manages it. It unites like-minded investors with a common objective and invests in equities, debt instruments and other securities. The sole purpose is increasing investors’ money over time.

This investment avenue has really caught up in the last few years. However, as with every good investment, these have a certain tax aspect to them. Therefore, if you redeem your mutual fund units within a very short time period, you are liable to pay taxes on these gains. Knowing these short term capital gains tax brackets will guide you in making sound investment decisions.

What is Short-Term Capital Gain (STCG) Tax on Mutual Funds?

STCG on mutual funds applies when you sell equity or debt mutual funds within a specific holding period.

For equity mutual funds, STCG is applicable if sold within 1 year.
For debt mutual funds, STCG applies if sold within 3 years.

The short term capital gains tax brackets differ for equity and debt funds. Let’s see how they work.

How STCG Taxation Works

STCG taxation depends on the type of mutual fund and the investor’s total income:

Equity mutual funds

If you redeem the equity mutual fund units within 1 year, you’ll be charged 15% as a flat tax. If, for instance, you invest in units of ₹1 lakh and redeem them in six months for ₹1.2 lakhs, your short-term capital gain is ₹20,000. With 15% as tax, you’ll pay ₹3,000 and be left with a net gain of ₹17,000.

Debt mutual funds

If you redeem debt mutual funds within 3 years, the gain is treated as your income and taxed at your slab rate. Suppose you earn ₹12 lakh annually and receive ₹50,000 as short-term capital gain on debt mutual funds. Your overall income for taxation will be ₹12.5 lakhs. Suppose you are taxed at 30%. Your STCG tax would be ₹15,000. Naturally, being in a higher tax bracket will result in a higher tax outflow.

Exemptions and Deductions

Wondering if there’s an exemption STCG on mutual funds? Unfortunately, no exemptions or indexation benefits are available for STCG. But playing it smart can help reduce the tax burden.

Harvesting gains: Selling only up 1.25 lakhs, which is the tax-free limit and reinvesting.
Investing in tax-efficient funds: Holding investments for a longer duration to qualify for lower long-term capital gains tax.
Offsetting gains with losses: If you incur losses from other investments, you can set them off against STCG to reduce your taxable income.
Using tax-saving instruments: Investing in tax-saving instruments like ELSS funds (Equity Linked Savings Schemes) can help minimize STCG taxation in the long run.
Use Systematic Withdrawal Plans (SWP): Instead of selling all at once, an SWP can help you withdraw a smaller portion of your investment over time, reducing overall tax liability.

Why Did the Government Increase the Tax on Short Term Capital Gains?

The reason is simple, to encourage long-term investments and reduce market speculation. Higher taxes on short-term profits push investors to hold their investments for a longer period. This will eventually lead to a more stable financial market.

Another reason is to increase tax revenue from short-term profits made by traders and investors. This change is in line with the government’s larger financial policies to strengthen economic stability.

Knowing short term capital gain on mutual funds helps you save money. If you trade mutual funds often, tax impact matters. But what if you need quick funds and don’t want to sell your investments? There’s a smarter way to get cash without liquidating your portfolio. A Loan Against Mutual Funds with Fibe can save the day. You can get a cash loan against your mutual funds without selling them and incurring extra taxes.

At Fibe, you can borrow up to 80% of your mutual fund’s value. Get up to ₹10 lakhs instantly with a quick, hassle-free process. Access cash without selling your investments. The best part is that you can keep growing your wealth all while managing tax efficiently!

FAQs

1. What is the tax rate on short-term capital gains?

The short term capital gain on mutual funds depends on the type of mutual fund:

Equity mutual funds: Flat 15% tax (plus cess and surcharge) applies if sold within 1 year.
Debt mutual funds: Taxed at your income tax slab rate if sold within 3 years.

2. What is the exemption of capital gains tax?

There are no specific exemptions available for short term capital gain on mutual funds. Unlike long-term capital gains, tax on short term capital gains does not qualify for indexation benefits. However, you can offset STCG with short-term capital losses from other investments to reduce your taxable amount.

3. Why did the government increase the STCG tax rate?

The government raised tax on short term capital gains to discourage quick trades and encourage long-term investing. Higher taxes on short-term gains make frequent buying and selling less appealing, helping to stabilise the market. It also boosts tax revenue from short-term investments.

How to Analyse a Mutual Fund and Make Informed Choices

There’s no doubt about the credibility of mutual funds, they are one of the smartest and easiest ways to grow wealth. But simply investing and waiting for decades isn’t enough. If you want to maximise your returns, you need to analyse mutual fund performance regularly. Just doing this every few months can keep you ahead of the curve. That’s when you can truly expect your investments to be well aligned with your financial goals and risk appetite.

Analysing investments to track their performance might seem daunting at first, but once you understand what to look for, it becomes much easier. Read on to learn more about how to analyse a mutual fund effectively.

Key Factors for Mutual Fund Performance Analysis

Here are some key factors you can consider when analysing mutual funds performance.

1. Compare Fund Returns

To analyse mutual fund performance, you can start by comparing its returns over different periods. Try factoring in time frames for 1 year, 3 years, 5 years and since fund inception. Doing so will give a clear picture of how the fund performed during various market conditions. You can then take it a notch ahead and compare it with benchmark indices and similar funds to gauge its effectiveness.

2. Risk-Adjusted Returns

Not all returns come with the same level of risk. Some investments may give high returns but also carry higher risk. Others may offer slightly lower returns but with more stability. That’s where the Sharpe Ratio helps. It shows how much return a fund gives for the risk you’re taking. A higher Sharpe Ratio means better risk-adjusted returns.

3. Expense Ratio

The expense ratio is the annual fee charged by the fund house. A high expense ratio eats into your returns, making it crucial to choose a fund with a reasonable cost.

4. Fund Manager’s Track Record

The expertise of a fund manager plays a major role in mutual fund performance. Check their experience, past track record and tenure in managing the fund. A stable and well-performing fund manager is a good sign.

5. Portfolio Composition

Analyze mutual fund portfolio to see where your money is invested. Look at asset allocation, whether it’s invested in large-cap, mid-cap or small-cap stocks, debt instruments or a mix. A diversified portfolio can reduce risk.

6. Consistency in Performance

A fund delivering high returns for 1 year and underperforming the next isn’t reliable. Look for consistent performers instead of funds that just had a good short-term run.

7. Alpha and Beta Values

Alpha: Shows how much the fund outperforms the benchmark.
Beta: Indicates the fund’s volatility compared to the market. A beta of more than 1 means the fund is more volatile than the market.

Checking these factors can give you a complete analysis of how your fund is performing. Once you’re done with this step, you can then finetune them basis your goals.

How to Analyse a Mutual Fund Based on your Goals

Your choice of mutual funds should align with your financial goals:

Short-term goals (1-3 years): Consider debt funds for stability.
Medium-term goals (3-5 years): Balanced or hybrid funds could be a good option.
Long-term goals (5+ years): Equity funds offer better growth potential.

How Often Should you Review Mutual Fund Performance?

It is highly advisable to regularly review your mutual fund investments. Ideally, analyse mutual fund performance every 6 months to a year. It’s the perfect time frame to gauge the fund’s performance and align it your goals. However, avoid making impulsive decisions based on short-term fluctuations.

When to Exit a Mutual Fund?

Consistent Underperformance: If a fund consistently lags behind its benchmark and peers, it might be time to exit.
Change in Fund Management: A new fund manager with a poor track record could impact future returns.
High Expense Ratio: If the costs keep increasing without better returns, consider switching.
Change in Investment Goals: If your financial goals or risk appetite changes, reassess your fund choices.

A thorough mutual fund performance analysis is key to building wealth. Keep reviewing your investments and make informed decisions to secure your financial future. And if you ever need liquidity without selling your investments, consider a Loan Against Mutual Funds with Fibe. You can borrow up to ₹10 lakhs instantly. Within 10 minutes, you’ll have funds disbursed in your accounts. It’s one of the best ways to enjoy liquidity against your investments while still earning interest on your mutual funds!

FAQs

How can I compare mutual funds effectively?

Compare funds based on returns, risk-adjusted performance, expense ratio and consistency. Benchmark them against similar funds and indices to get a clearer picture.

How do I evaluate whether a mutual fund is performing well?

Look at its long-term returns, Sharpe Ratio, Alpha, Beta and consistency. If it consistently outperforms its benchmark with lower risk, it’s a good performer.

How often should I review my mutual fund’s performance?

Review your funds every 6-12 months to ensure they align with your investment strategy. However, avoid frequent switching based on short-term fluctuations and market scares.

Should I exit a fund if its performance declines?

A short-term decline isn’t a major concern. But if a fund underperforms for multiple years and has a high expense ratio, consider exiting.

How to Check Bank Account Number Online in 2025?

Your bank and account number is necessary for controlling your funds. Whether it is receiving your salary, making payments or conducting transactions. But, how to find account number when you don’t remember it can be tricky for most people.

Bank Account Number of Digits

The number of digits in a bank account number varies depending on the bank. Here’s a general breakdown:

Public Sector Banks: Typically, account numbers have 11 to 16 digits.
Private Sector Banks: These often use longer account numbers, ranging from 14 to 18 digits.
Regional and Cooperative Banks: Depending on their internal banking system, these banks issue account numbers with 10 to 12 digits.

But if you’re unsure about your bank account number of digits, it’s best to check directly with your bank.

Importance of Account Numbers in Financial Transactions

Your bank and account number is absolutely essential for making financial transactions. Here’s why:

Receiving payments: Your salary, government benefits and refunds are credited directly to your account through this number.
Transferring money: Whether online or offline, an accurate account number ensures that your money reaches the intended recipient.
Bill payments and subscriptions: Everything, right from your monthly bill payments, credit card payments and even subscriptions, involves your account number.
Loan repayments and disbursements: You need to set up the NACH e-mandate for clearing the EMIs on your loans automatically. Doing so will require your bank details.
Fraud protection: A correct account number protects transactions from fraud and gets them to the right account owner.

Where to Find your Bank Account Number?

If you ever have to check bank account number but don’t happen to know it, here are some simple methods to discover it:

Bank passbook: In case you have a passbook, simply open the first page. The account number will be printed along with your name and branch details.
Cheque book: Your account number is printed on every cheque leaf, generally at the bottom.
Bank statements: You can always spot your account number on bank statements.
Debit card: Debit cards do not show your account number on the physical card. But you can locate it by getting in touch with your bank’s customer care.
Customer care: Just call your bank’s customer support and verify your identity. They will happily assist you with your account number details.

How to Find your Bank Account Number Online

If you’ve lost physical documents, don’t worry. You can still find your account number, check online. While banks do not disclose account numbers directly based on a mobile number alone, here are a few methods you can use:

Via Mobile Banking app: Your bank will have a mobile app where you can check your account details. Just log in to the app and navigate to the ‘My Accounts’ or ‘Account Summary’ section. Here’s where you’ll find your account number displayed.
Through Internet Banking: If you opted for Internet Banking, you can easily log into your bank’s website. Just look for the ‘Account Details’ or ‘Profile’ section to find your account number.
Via bank SMS service: Many banks offer SMS services. All you have to do is send an SMS with the required keyword (as specified by your bank) to the designated number. Within no time, you’ll receive an SMS containing your account number along with your balance details.
Aadhaar-linked bank services: Log in to the UIDAI website and check which bank is linked to your Aadhaar.

Knowing your bank account number is as important as having your Aadhaar or driver’s license details. This number is required to carry out almost all financial transactions. So, always check bank account number and have it handy to access banking services smoothly.

If you’re looking for a better way to manage your money, Fibe can help. Get instant cash loans or access funds easily with a Loan Against Mutual Funds. Fibe offers smart financial solutions without any hassle!

FAQs on How to find Bank Account Number

1. How do I find my bank account number on my phone?

You can retrieve your account number through mobile banking apps, internet banking, SMS banking or by calling customer care. If you have a registered mobile number, you can also request your account details via SMS or by visiting the bank.

2. How can I check my account number via SMS?

How to check bank account number via SMS is pretty simple. Just send a designated keyword (such as ‘BAL’ or ‘ACCT’) to your bank’s official number from your registered mobile number. You will receive a message containing your account number along with other details like balance information.

3. Can I find my bank account number using my mobile number?

Banks do not disclose account numbers directly through mobile numbers for security reasons. However, you can log into mobile banking, contact customer support or visit your bank branch to account number, check online.

4. How do I retrieve my bank account number using my Aadhaar card?

If your Aadhaar is linked to your bank and account number, you can check account details through the UIDAI website, through mobile banking or by visiting your bank branch. At the branch, you may need to provide your Aadhaar card for verification before accessing your account details.

MPIN Full Form & Setup: How to Generate and Find Your MPIN

An mPIN, or Mobile Personal Identification Number, is a 4 or 6-digit code that verifies your identity and keeps your digital payments safe. It works like an ATM PIN for your phone, allowing you to confirm transactions without entering full bank details.

With UPI and mobile banking becoming the new norm, it’s important to keep your transactions safe. That’s where mPIN helps. So, what is mPIN? It’s a Mobile Personal Identification Number. A 4 or 6-digit code that lets you authorise payments securely. mPIN means you don’t need to enter your full bank details every time you send money. You can easily generate it through your UPI or mobile banking app in just a few steps.

Read on to understand what is mPIN number and why mPIN is a must-have for secure digital transactions.

MPIN Full Form & Meaning

mPIN full form is Mobile Personal Identification Number, which is a 4 or 6-digit code. It helps to verify your identity during mobile banking activities. Before making a payment or banking transaction, enter this code to make sure only you can complete it.
An mPIN makes banking easier by removing the need to remember account details or IFSC codes. It helps verify transactions quickly and keeps them safe from fraud.

What are the Key Uses of mPIN?

The mPIN is important for digital payments, protecting all types of banking and wallet transactions. Beyond banking, it also plays a role in bill payments, shopping and subscription-based payments, helping users manage everyday spends securely.

Here’s where it’s commonly used:

Mobile Banking: To authorise payments on apps like SBI YONO, iMobile or HDFC MobileBanking
UPI Transactions: To approve instant transfers using UPI apps like Google Pay or PhonePe
Online Shopping: To confirm purchases on e-commerce sites through linked bank accounts or wallets
Bill Payments: Used for electricity, mobile, DTH and broadband payments made through banking or wallet apps
IMPS, NEFT, RTGS Transactions: Online payment methods like IMPS, NEFT and RTGS use an mPIN to confirm customer identity
IVR Banking: To confirm user identity when making payments through phone-based banking

Why mPIN is Critical for Security?

The mPIN keeps your account safe from unauthorised access and fraud. As per RBI guidelines, it acts as a second layer of security. It ensures your banking details and payments stay private, even if someone has your phone or account information.

How to Set a New MPIN?

Setting or resetting your mPIN is simple and can be done through multiple methods.

Method	Steps
Net Banking	Log in, go to ‘Mobile Banking’, select ‘Setup mPIN’, verify via OTP and set your new code.
UPI Apps	Open your UPI app, go to ‘Settings’, ‘Set mPIN’ and enter your chosen 4 or 6-digit PIN.
ATM Card	Insert card, select ‘Forgot mPIN’, verify with OTP and create a new mPIN.
USSD Code	Dial *99#, choose ‘Generate mPIN’, enter your card details and confirm.
Bank Branch	Visit your branch and fill in the mPIN request form.

Here’s how you can set your mPIN step by step using different methods:

1. Generate MPIN Using Net Banking

Log in to your bank’s online banking site or app using your credentials
Go to the mobile banking and select ‘Setup mPIN’
Check your registered mobile number by entering the OTP
Choose a 4 or 6-digit mPIN and confirm it
After selecting the mPIN, you will receive a confirmation text message

2. Generate MPIN Using UPI Apps

Open your chosen UPI app
Sign in with your bank details
Go to the ‘Settings’ or ‘My profile’ option
Choose the ‘Set mPIN’ choice
Follow the steps on the screen (Vary from bank to bank)
Enter your new mPIN to confirm it

3. Set MPIN Using an ATM Card

Insert your ATM card into the machine
Enter your card PIN and select ‘Forgot mPIN’ from the menu
Verify your identity with an OTP sent to your registered mobile number
Type in your new mPIN and then confirm it

4. Set MPIN Using USSD Code

Dial *99# on your cell phone
Select the ‘Generate mPIN’ choice
Provide the last 6 digits of your bank card with the expiration date
Enter your preferred mPIN and confirm it

5. Generate MPIN At a Bank Branch

Go to your bank and fill out the form to request an mPIN
A bank employee will help you set it up

How to Change Your mPIN?

Changing your mPIN at intervals is important for keeping your online purchases safe. Here’s how you can do it:

Log in to your mobile banking app or UPI app using your current mPIN
Go to ‘Settings’ or ‘More’ and select ‘Change mPIN’
Enter your old mPIN and set a new one
Confirm using the OTP sent to your registered mobile number

That’s it, just a few taps and your mPIN is updated.

Importance of mPIN in UPI

Your mPIN is what keeps everyday UPI payments safe. You would need it for all kinds of digital transactions. Right from ordering groceries online, paying utility bills to booking movie tickets or splitting dinner expenses with friends.

Each time you enter your mPIN, the app verifies your identity and confirms the payment instantly. It keeps your information private, no matter where or how you choose to pay.

Conclusion

The mPIN has made digital payments and wallet transactions both safe and easy. It adds security to everything you do online. Whether you’re shopping, paying bills or sending money, updating your mPIN regularly keeps your transactions protected.

FAQs on mPIN Number

How frequently should I change my mPIN?

Changing your mPIN every 3 to 6 months is a good idea for better protection.

I forgot my mPIN. Can I restore my old mPIN?

No, you cannot recover an old mPIN. You can reset it using the ways listed above.

Can I get an OTP for mPIN generation on any mobile number?

No, the OTP for mPIN creation is only sent to the mobile number linked to your bank account.

XIRR in Mutual Funds: Meaning, Importance & Calculation

If you’ve ever invested in mutual funds, you’ve probably come across terms like CAGR, absolute returns and XIRR. While CAGR works well for lump sum investments, things get trickier when you invest through SIPs or make multiple withdrawals. That’s where XIRR (Extended Internal Rate of Return) comes in!

Read on to understand XIRR meaning in mutual fund, why it is essential and how it varies from a CAGR.

Understanding Mutual Fund XIRR

XIRR (Extended Internal Rate of Return) helps you figure out your actual investment returns, especially when money goes in and out at different times. Unlike simple return methods that assume regular cash flows, XIRR considers every investment and withdrawal, making it more accurate.

This is especially useful for SIP investors or anyone who redeems funds at different times. Since SIPs involve investing at multiple intervals, XIRR calculates the true annualised return by factoring in both the timing and amount of each transaction. It gives a clearer picture of how your money is really growing.

Why is XIRR Useful for Mutual Fund Investments?

Calculating profits in regular investments is easy. But with mutual funds, where you invest different amounts at different times — like in a SIP — it gets tricky. You can’t just take an average to figure out your returns.

Here, XIRR helps and gives you the actual return on your investment by factoring in when and how much money you invested.

Importance of XIRR in Mutual Fund Investments

Gives the real return – XIRR calculates how much you actually earn, considering when you invest.
Perfect for SIPs and lump sum – It works well whether you invest regularly or all at once.
More accurate than simple averages – It accounts for different investment dates and amounts.
Helps compare investments – XIRR makes it easy to see which fund or method gives better returns.
Shows true profit – Since investments happen at different times, XIRR gives a clear picture of your earnings.

Step-by-Step Process of Calculating XIRR

Figuring out your returns using XIRR in Excel is super simple. Here’s how you can do it with the easy steps listed below:

List Your Cash Flows & Dates

Enter all your transactions—use negative values for money you invest (purchases) and positive values for money you receive (redemptions).
Note down the exact dates for each transaction in a separate column.

Apply the XIRR Formula

Use this Excel formula:
=XIRR(values, dates, [guess])
Values: List of all cash flows (investments & returns).
Dates: Corresponding dates for each transaction.
Guess (optional): You can leave this blank; Excel will calculate it for you.

Check Your Result

Excel will give you the annualised return based on your cash flows and their timing.

Say you invested ₹5,000 on Jan 1, another ₹5,000 on Feb 1 and ₹5,000 more on Mar 1. Then, you got back ₹20,000 on Apr 1.
Just plug these numbers into the XIRR formula, and Excel will tell you your annual return rate.

Things to Keep in Mind When Calculating XIRR in Excel

Correct cash flow sign: Investments should be negative numbers, while redemptions or payments must be positive.
Handling dividend reinvestment: When reinvesting dividends, you don’t need to count the actual cash, so do not include it in your calculations.
Switches between funds: Treat switches as redemptions or investments based on the way. For estimates at the portfolio level, you can ignore changes.
Multiple SIPs: Track each SIP individually by noting the amount and date for accurate estimates.

Now that you know what XIRR means, it will become your go-to tool for figuring out the real returns on your mutual fund investments. Whether you’re investing through SIPs or making lump sum payments, XIRR helps you track your actual gains.

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Frequently Asked Questions (FAQs)

How is XIRR different from CAGR?

CAGR assumes that all purchases happen at the same time, while XIRR takes into account cash flows that occur at different times.

Is XIRR only applicable to mutual funds?

No, it can be used for any property with irregular cash flows, like stocks and real estate.

What happens if I miss a transaction in the XIRR calculation?

Missing transfers can give inaccurate results. List all investments, withdrawals,\ and their timings to ensure correctness.

ATM Withdrawal Limits: How Much You Can Withdraw Per Day

An ATM withdrawal limit is the maximum amount of cash you can withdraw from an ATM on any given day. Banks generally impose these limits to protect your funds. This threshold limit will keep losses to a minimum if your card gets lost or stolen. Naturally, each bank has its own per day ATM withdrawal limit based on account type and multiple other factors. This limit typically ranges from ₹10,000 to ₹50,000.

Read on to understand the factors and charges involved in cash withdrawals through an ATM.

Factors Affecting Your Daily ATM Withdrawal Limit

Every bank sets its own daily cap. Most banks have a set limit of around ₹10,000 per day. Others, especially for premium accounts, can go as high as ₹50,000. These factors affect your withdrawal limit:

The type of account you hold: Premium accounts or accounts with higher balances receive higher limits compared to standard savings or current accounts.
Your relationship with the bank: Your history with the bank matters. Long-term customers tend to enjoy higher limits.
RBI rules and guidelines: Regulatory bodies, especially the Reserve Bank of India, set certain guidelines that banks must follow. Banks need to comply with these regulations by balancing customer convenience with security concerns.
Logistical needs of your bank: Banks set withdrawal limits to control the cash flow through these machines. A higher limit could lead to more frequent large withdrawals, increasing the risk of cash shortages or ATM downtime.
Banking trends: From paying bills to transferring funds or checking balances online, there is a massive shift towards digital banking. This reduces your reliance on cash, lowering your withdrawal limit.

Next time you wonder, ‘How much i can withdraw from ATM?’, remember that the answer varies. It depends on your bank’s limits, RBI guidelines, and account type. Knowing this will help you avoid hassles during emergencies.

ATM Transaction Limits and Charges

In addition to the withdrawal amount, banks may also enforce ATM transaction limits. Many banks now permit only a limited number of free ATM transactions each month. This count includes cash withdrawals as well as non-financial transactions like balance inquiries or mini statements. Once you exceed this free transaction quota, which is 5 times a month, additional withdrawals may incur ATM transaction charges. These charges are ₹21 for each transaction and are designed to cover the increased processing costs and interchange fees.

Also Read: ATM Card & Annual Maintenance Charges

How to Avoid ATM Charges?

Avoiding unnecessary ATM fees is possible. You can use these smart strategies:

Use In-Network ATMs: Many banks partner with other financial institutions, letting you use a broader network of ATMs without incurring fees.
Bank on Digital Transactions: You need not visit the ATM multiple times. Simply consider paying bills, transferring funds, or checking your balance online or via mobile banking apps.
Opt for Card Payments: Wherever possible, swipe your card instead of withdrawing cash.

Can You Increase Your ATM Withdrawal Limit?

Yes, you can always get in touch with your bank to explain why you need an increase in your daily limit. They may offer you a temporary or permanent increase based on factors like your account history, customer relationship, and spending patterns.

Once you understand your ATM withdrawal limit and ATM transaction limits you can manage cash efficiently. It pays to plan ahead, so use in-network ATMs where possible, and consider increasing your limit to avoid unnecessary fees.

Instead of standing in ATM queues to withdraw cash, consider paying via Fibe Axis Bank Credit Card and clearing those bills online. Not only does this save time, but it also offers benefits like zero joining fee, up to 3% cashback on certain categories, and added perks such as fuel surcharge waivers. Simplify your financial transactions while adding rewards to your everyday spending with Fibe!

FAQs

Is it possible to withdraw ₹30,000 from an ATM?

How much money can take from ATM really depends on your bank’s withdrawal limit. If it falls around ₹30,000 then you can. However, if you have a limit that’s lower you’ll need to pay a transaction fee.

Why do banks set the ATM withdrawal limit?

Banks have these limits in place to protect you against the risk of financial loss. So if your card is misused or stolen you won’t face a huge loss. Apart from this, these limits also help manage the ATM network’s capacity.

How many free ATM transactions can I make in a month?

This varies by bank. Most of them allow a fixed number of 5 free transactions including both cash withdrawals and other services like balance checks. Once you exhaust this number, a transaction fee will be charged every time you use the ATM.

Can I increase my daily ATM withdrawal limit permanently?

Yes, you can request a permanent increase in the withdrawal limit at your bank. The approval would depend on your bank’s policies, your account history and your overall financial behaviour.

Are there additional fees for ATM transactions in other cities?

Again, this depends on each banks policies. But yes in most cases, using an ATM outside your bank’s network or in another city can lead to extra charges.

Cash Credit vs. Overdraft: Which Is Better for Your Business?

Running a business requires a steady flow of funds. Managing these rolling funds can be challenging. And trying to sort out your business’s short-term financing options can seem cumbersome at times. You might lean towards options like overdraft and cash credit for help. Both can help smooth out your cash flow when expenses come up, but they work differently.

What is Cash Credit?

Cash credit is basically a flexible loan that you can draw on as needed. Cash credit account meaning refers to a set-up where the bank provides you with a set borrowing limit. This credit is backed by your assets like inventory or receivables. You need to pay interest only on the money you actually end up using. It’s designed to cover your day-to-day business expenses, helping you manage the gap between receivables and payables.

This facility works best if your business has a predictable cycle of expenses. Since you know roughly how much you need to cover regular operations, cash credit can be a handy, low-cost option. You can enjoy lower interest rates on these because the credit is secured by your assets. You can use this tool to bridge the cash gap during slower business months. The best part is that you only pay for what you borrow.

What Is an Overdraft?

An overdraft is a bit different. It’s linked to your current account and you can use more cash than what’s lying in your account. This too comes with a certain limit. It’s more like your bank allowing you a little extra breathing room when your account balance dips below 0. This can be really useful if unexpected expenses arise.

These are convenient but come with higher interest rates and fees, especially if you use them frequently. Overdrafts are not secured by collateral. This is why the cost of borrowing tends to be higher. This option is more about having a quick, flexible backup plan when the need for funds arises.

Comparing the Two: The CC and OD difference

When it comes to the CC and OD difference, it all comes down to how structured each option is. Here’s a table showing the difference between each option:

Feature	Cash Credit (CC)	Overdraft (OD)
Structure	Fixed limit based on business assets	Flexible cushion from current account
Limit Basis	Determined by the value of pledged assets	Based on account balance and banking relationship
Usage	Clear threshold amount for use	Can be used as needed, up to the limit
Flexibility	Less flexible compared to OD	Highly flexible
Interest Payment	Only pay interest on the amount used	Interest accrues on the outstanding balance
Best For	Businesses that need structured short-term funding	Covering unexpected shortfalls
Risk	Lower risk due to defined limit	Higher risk if overused due to accumulating interest

It’s extremely important to understand the difference between overdraft and cash credit. This will help you decide which option suits your needs better.

Deciding What Works Best for You

In choosing between cash credit and an overdraft, think about your business’s cash flow patterns. Do you know your regular expenses well and have predictable gaps between income and outgo? If so, cash credit might be the more efficient and affordable option. But if your revenue is unpredictable and you sometimes need funds on the fly, an overdraft might be more practical despite its higher cost.

Both options offer a way to manage cash flow, but your decision should be based on your specific needs. Consider how often you face unexpected expenses versus planned ones. For planned outgoings, cash credit’s structured nature can provide peace of mind. For sudden needs, an overdraft offers the flexibility that might just save the day.

Now that you know the difference between overdraft and cash credit you can choose the one that fits how your business operates. Always look out for the lender’s credibility, interest rate charges and processing fees to bag the best deal. Lastly do not forget to check foreclosure charges if any. Once you’re aware of these costs you can opt for an option that suits your working capital needs and business model.

And while you’re exploring overdraft and cash credit, consider looking into options like the Instant Cash Loan from Fibe. You can get up to ₹5 lakh in just 2 minutes via a 100% digital process. A handy way to manage your cash flow without extra costs. You can even use the Fibe Instant Cash Loan EMI Calculator to estimate your monthly EMI before applying. An excellent way to assess affordability and keep your business finances in check!

FAQs

Which has a lower interest rate, cash credit or overdraft?

In most cases, cash credit offers a lower interest rate because it’s secured against your assets. Overdrafts, being less secured, often come with higher rates if you’re not cautious. It’s always a good idea to compare your bank’s specific offers to see what works best for your situation.

Is overdraft protection the same as credit?

Not exactly. Overdraft protection is like a backup plan to prevent your account from bouncing when your balance runs low. It’s not the same as having a dedicated line of credit like cash credit. Overdraft protection ensures you don’t face penalties for insufficient funds, but it’s not intended to cover larger, ongoing expenses.

What Businesses Fall Under MSME? Complete Industry List

The MSME sector touches almost every part of our daily lives now. They play a crucial role in boosting our economic growth. MSMEs contributed 45.79% of India’s exports up to May 2024. Apart from the exports’ heavy lifting, they also add diversity to our domestic markets by supporting innovation. They help fill gaps that larger companies sometimes overlook. For many, an MSME business idea might be the perfect stepping stone to entrepreneurship.

Read on to understand this in depth.

What is MSME Sector?

The MSME sector includes Micro, Small and Medium Enterprises. These businesses might be small in scale but leave a mighty impact on the markets. They not only drive innovation but also create countless job opportunities. It’s the ecosystem of businesses that make up a major chunk of our economy.

Here are the MSME classifications for manufacturing and service businesses:

Category	Investment in Plant & Machinery or Equipment	Annual Turnover
Micro	Up to ₹1 crore	Up to ₹5 crore
Small	Up to ₹10 crore	Up to ₹50 crore
Medium	Up to ₹50 crore	Up to ₹250 crore

What are the Different Types of MSME Businesses?

There are plenty of business types that fall under the MSME umbrella.

1. Manufacturing

From auto components to toys for kids, small manufacturing plants and factories produce everything. They start on a smaller platform and scale up as they grow over time. They bring innovation and personalised touches to everyday products.

2. Food Processing

Food is something we all enjoy, and MSMEs in the food processing industry do it exceptionally well. They create local flavours and specialities that reflect regional tastes. Right from pickles to papads and even sauces and dips, food processing is booming in India.

3. Textile and Garments

You can find multiple textile industries throughout the country. Right from boutique clothing lines to large-scale fabric production, MSMEs in this space are doing exceptionally well.

4. Information Technology

Many MSMEs are centered around the Information Technology sector, covering areas like web development, digital marketing, and app development. The best part? They offer innovative solutions at competitive prices, making technology more accessible for businesses of all sizes.

5. Retail and Trading

Retail MSMEs include everything from small shops to online stores. They serve local communities with personalised service and unique products. These businesses are great for consumers who prefer a personal touch over impersonal corporate chains.

6. Service Industries

Many MSMEs offer services rather than tangible products. These include everything from logistics and transportation to consultancy and repair services. Service-based MSMEs are essential in keeping our daily lives running smoothly. They ensure that we have access to essential services, no matter where we live.

7. Construction and Real Estate

Small construction companies and real estate agencies also fall under the MSME sector.

8. Health and Wellness

Lately, this sector has seen a boom, with many MSMEs offering fitness centres, organic food outlets and wellness clinics. This change is making health and wellness accessible to everyone.

The MSME sectors in India are incredibly diverse, spanning multiple industries and offering a world of opportunities. MSMEs like Clairvoyant India Pvt Ltd, Olimax Systems Pvt Ltd and Acewin Agritech Limited are leading the way with innovative solutions in their respective sectors. These companies highlight the sector’s dynamic growth and impact. You can even check the MSME-registered companies list online for a snapshot of just how varied this sector truly is.

The Road Ahead for MSMEs

The world of MSMEs might seem complex at first. But when you break it down, it’s all about small businesses doing big things. MSMEs are growing in importance every day. With digital tools and social media, even small businesses have a chance to shine on a global stage. They are agile and can quickly adapt to changing market needs. This makes them especially attractive to young entrepreneurs and startups.

If you’re looking for an MSME business idea, think about your strengths and what you’re passionate about. Whether it’s crafting, coding, or cooking, there’s a place for you in this sector. The key is to start small, learn as you go and gradually scale up.

Fibe Instant Cash Loan can come to your rescue when it comes to securing quick funds. You can easily get a loan of up to ₹5 lakhs in 2 minutes!

FAQs on Business that comes under MSME Sector

What are some examples of businesses that fall under MSME?

Small manufacturing units, food processing companies, textile workshops, local retail stores or even service-based companies offering logistics and consultancy-based offerings fall under the MSME companies list.

Can a startup be classified as an MSME?

Definitely, startups fall under the MSME bracket. But, they need to meet certain criteria related to investment and turnover set by the government. Many innovative startups begin as small MSMEs before scaling up.

Everything You Need to Know About Savings Accounts and How They Work

Idle cash lying in your home or office locker does not beat inflation. So, next time you get your annual bonus, make sure to deposit a part of it in a savings account. A savings account is a great option for making your money work for you. It’s safe, simple, hassle-free and keeps earning a little extra on the side.

What is a Savings Account?

Saving account meaning refers to a bank account where you deposit cash over time. Whenever you put in a deposit and hold the funds for a certain period of time, the bank adds a bit more to your balance as interest. This is one of the easiest ways to watch your money grow without making any complex investments.

How Does a Savings Account Work?

Now that we know what is a savings account, let’s see how they work:

Make deposits: Every time you save or keep aside some amount in your savings account.
Bank pays interest: This interest is like a bonus, it’s a small percentage of your deposit that adds up over time. Most banks offer 2.60% p.a. – 8.00% p.a.
Monthly or quarterly compounding: The interest you earn is compounded and that small percentage grows significantly over time.

That’s not it, the best part is that while your money is working for you, it’s not locked away. You can choose to withdraw or transfer funds whenever you need them. In most cases your funds are even insured up to a certain amount by government schemes, giving you peace of mind.

What are the Types of Savings Account?

There are a few major types of savings account options:

Basic Savings Account: Perfect for daily use. It has a low minimum balance requirement and offers standard interest rates.
High-Yield Savings Account: If you can maintain a larger balance and meet certain conditions, you can choose this option. Since they offer higher interest rates.
Student Savings Account: If you are a student this one’s for you. With lower balance requirements it’s perfect for young savers.
Senior Citizen Account: Like most investment instruments, savings accounts also have special perks, like higher interest rates or easier access features for seniors.

How to Open a Savings Account?

Follow these steps to open a savings account:

Research Your Options: Look for banks that offer the best interest rates. Check for additional benefits and processing fees.
Gather Your Documents: Keep your paperwork ready, you’ll typically need your KYC documents like ID, address proof and a passport-sized photo.
Apply: You can fill out an application form online or even visit your nearest branch.
Deposit Funds: There are a few banks that require an initial deposit to activate your account.
Start Saving: Once your account is active, you can start depositing money and watch your savings grow!

What are the Benefits of Opening a Savings Account?

Having a saving account benefits go well beyond just storing money. By opening a savings account in a trusted financial institute, you can:

Earn Extra Money: With interest, your money grows gradually without you doing extra work.
Enjoy Easy Access: With banking going digital, you can manage your funds easily with online and mobile banking.
Build Good Habits: Small savings go a long way, regular deposits will help you develop a strong savings ethic.
Feel Secure & Insured: Your deposits are protected, so you can feel safe about your money.
Track Your Spending: These days almost all banks provide digital and offline assets. They give you clear, regular statements, helping you keep an eye on your finances.

Things to Consider Before Starting a Savings Account

Here’s what you must look into before choosing an account:

Interest Calculation: Different banks calculate interest in various ways. Some use simple interest while others use compound interest. It pays to know the details, as it can make a difference over time.
Savings Interest Rates: Each bank also offers different interest rates on their savings account. Choose a bank that gives you higher interest rates.
Types of Savings Account: As we’ve discussed above, choose an account that fits your lifestyle and goals.
Digital Management: Go with an option that provides a robust online ecosystem. It will save you time and energy as you can easily track your savings, set up automatic transfers, and even schedule regular deposits from your phone.
Flexibility: Make sure you can withdraw whenever you need the funds. Savings accounts are supposed to provide instant liquidity.

A savings account is a smart way to keep your money safe while letting it work for you. Once you know what you need, you can choose the option that best fits your lifestyle. That said, if you require immediate funds to bridge monetary gaps, consider a Personal Loan with Fibe for hassle-free credit. With Fibe, you can get up to ₹5 lakhs at competitive interest rates, with minimal documentation and in just 2 minutes. Download the Personal Loan App or sign up on our website to apply in just a few clicks!

FAQs on What is Saving Account

How do you close a savings account?

To close your savings account, you can visit your bank’s branch or even use their online platform. You must remember to withdraw any remaining funds and clear any pending transactions before you finalise the closure.

Do I need to be over 18 to open a savings account?

Generally, yes. Most banks require you to be at least 18. However, there are student or minor accounts available for younger savers that are usually managed by a guardian.

Are there charges for an ATM card linked to a savings account?

Many banks offer a free ATM card with your savings account. That said, some might charge a small fee for extra services or additional cards. It’s best to check with your bank for the exact details.