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Understanding SIPs (Systematic Investment Plans) and Their Benefits

SIPs have become one of the most popular investment options amongst Indian investors in recent years. SIP allows investors to invest small, regular amounts in mutual funds or other financial instruments. With an SIP, you can reap the benefits of rupee cost averaging and the power of compounding over time. Let’s understand how SIP works and why they make for smart investments.

What is SIP Investment?

The SIP full form is “Systematic Investment Plan.” It refers to periodically investing a fixed sum in a mutual fund scheme. SIPs allow investors to invest small amounts regularly, such as monthly or quarterly, to build a large corpus over time.

The key features of SIP are:

Fixed investment amount at regular intervals
Flexible investment tenure and intervals
Automatic debits from the bank account

How SIP Works?

An SIP allows you to invest a fixed amount at a regular frequency. For instance, you can opt to invest ₹5,000 every month in an equity fund for 5 years. The SIP process works as follows:

You select a mutual fund scheme you want to invest in
You decide the monthly/quarterly investment amount
You choose the SIP date and tenure
The fixed SIP amount gets automatically deducted from your bank account on the scheduled dates and invested into the mutual fund scheme.

The SIP investment keeps purchasing fund units at different NAVs (net asset values). Over time, units are accumulated based on the invested amounts.

SIP Investment Benefits

SIP investing comes with numerous advantages that make it ideal for retail investors. The following are the most prominent SIP investment benefits you should consider:

1. Power of Compounding

By investing at regular intervals over the long term, the power of compounding works in your favour. As the investment keeps growing, the returns start earning returns. Over 10-15 years, this creates a large corpus.

2. Rupee Cost Averaging

Since the market fluctuates daily, an SIP allows you to invest a fixed amount irrespective of the NAV. Investing the same amount through highs and lows means the average unit cost per unit is lower than for a lump sum investment.

3. Investor Discipline

SIP helps instil financial discipline by enforcing regular investing. As the amounts are smaller and automated, investors are less likely to postpone or skip investments. This ensures investing continuity and reaping the rewards over the long term.

4. Flexible and Convenient

You can choose SIP amounts and schedules that are convenient for you. Most funds allow SIP investments starting as low as ₹500 per month. SIP schedules can be monthly, quarterly, weekly, or daily. Investors can start, stop, or change an SIP anytime.

5. Diversification

One of the most important SIP investment benefits is that it allows you to diversify across asset classes and fund categories based on your financial goals, risk profile and investment horizon. Equity, debt, gold and international funds can all be purchased through SIP.

6. Lower Risk

As an SIP invests a fixed amount regularly, you don’t have to worry about market timing. During volatile markets, your SIP keeps purchasing units at lower values, lowering the average purchase cost. This reduces risk compared to lump sum investments.

How to Invest in an SIP Plan?

Starting a SIP is easy. Here’s how to invest in SIP plan in a few simple steps:

Choose a fund: Based on your investment objective, risk appetite, and investment horizon, select an appropriate mutual fund scheme to invest in.
SIP amount: Based on your financial capability, decide the monthly/quarterly amount you wish to invest. SIP installments can be as low as ₹500.
SIP date: Choose a convenient date. Most funds allow SIPs on any date that you prefer.
Tenure: Select the SIP tenure or period. Recommended is at least 5 years to benefit from compounding.
Submit form: Complete the SIP registration form, either online or in person, and submit it along with your KYC documents.
Track SIP: Login online to track your SIP performance and investments. Use this to monitor your investment progress.

Conclusion

SIP investing is ideal for new investors as it inculcates disciplined investing and helps build long-term wealth. By making small investments regularly, SIP allows your money to grow steadily over time.

Once your SIP investment corpus grows substantially over the years, innovative products like Fibe Loan Against Mutual Funds can help unlock its value. You can avail loans against your SIP investments through quick and paperless processing, without breaking your SIPs or liquidating the funds. This provides easy access to cash for varied needs while retaining the SIP’s benefits.

So, start harnessing the power of SIP investment to build long-term wealth!

FAQs

Is SIP better than FD?

Yes, SIPs are better than fixed deposits (FDs) in the long run. SIPs generate higher inflation-adjusted returns compared to FDs because they invest in equity mutual funds. However, SIPs carry market risk, while FD returns are fixed.

Can I withdraw SIP anytime?

Yes, you can withdraw or discontinue your SIP investment at any time by filling out an SIP cancellation form. The redemption amount will be credited to your bank account within 10 working days.

Can SIP go in loss?

Yes, SIP returns are not guaranteed. Your SIP can face losses due to market downturns. However, over the long term, SIPs have been proven to generate positive inflation-beating returns.

What is the 8:4:3 rule in SIP?

The 8:4:3 rule states that SIP should be invested for at least 8 years, for at least 4 years, and then start evaluating performance once every 3 years. This prevents investors from stopping SIPs too early based on short-term underperformance.

Can I skip a SIP instalment?

Yes, you can pause your SIP temporarily if you cannot pay any month’s instalment. However, skipping several instalments frequently can impact your investment discipline and compounding benefits.

Are SIP returns guaranteed?

No, SIP returns are not guaranteed as they depend on market performance. SIP only guarantees the discipline aspect of regular investing, not assured returns or profitability.

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.

Bank Account Number – How to Check Online?

Your bank account number is important in terms of taking care of your money and keeping track. You need it at various places like getting your salary, paying bills, sending money to someone, or setting up a plan to pay back a loan. Your bank account number is necessary for every money transaction you make.

Sometimes people forget where they put their bank account details and they do not know how to find their bank account number on the internet. The good thing is that now banks have many safe and easy ways for you to see your account information on the computer or phone.

In this guide, we will tell you how to find your bank account number, on the internet where you can find it and what you should do to keep your account details safe when you are looking at them online.

Bank Account Number of Digits

The number of digits in a bank account number varies from bank to bank in India. Here’s a general overview:

Public Sector Banks: Usually have account numbers ranging from 11 to 16 digits

Private Sector Banks: Commonly use 14-to-18-digit account numbers

Regional and Cooperative Banks: Typically issue account numbers with 10 to 12 digits

If you are unsure about the exact format of your bank account number, you should verify it directly through your bank’s official website, mobile banking app or customer support.

Importance of Account Numbers in Financial Transactions

Your bank account number is essential for carrying out secure and accurate financial transactions. Here’s why it matters:

Receiving Payments

Your salary, refunds, government benefits and other credits are transferred directly to your bank account using your account number.

Money Transfers

Whether you are using UPI, NEFT, RTGS or IMPS, entering the correct account number ensures your funds reach the intended recipient safely.

Bill Payments and Subscriptions

Utility bill payments, credit card dues, OTT subscriptions and automatic debits are linked to your bank account details.

Loan Repayments and Disbursements

Setting up NACH e-mandates for automatic EMI payments requires your account number and bank details.

Fraud Prevention

Using the correct account number helps reduce failed transactions and protects your funds from being transferred to the wrong account.

How to Find Your Bank Account Number Online

If you do not have access to physical banking documents, you can still check your account number online through several convenient methods.

Via Mobile Banking App

Most banks provide mobile banking apps that allow customers to access account details securely.

Steps to check your account number through a banking app:

Open your bank’s mobile banking app

Go to the ‘My Accounts’ or ‘Account Summary’ section

Your account number will be displayed along with account balance and branch details

Through Internet Banking

Internet banking is another reliable way to find your account number online.

Steps to check via net banking:

Visit your bank’s official website

Navigate to ‘Account Details’, ‘Profile’ or ‘Dashboard’

View your account number and related information

Via Bank SMS Service

Many banks offer SMS banking services for quick access to account details.

How it works:

Send a predefined keyword like BAL, ACCT or similar to the bank’s official SMS banking number

Use your registered mobile number

You will receive an SMS containing your account details and available balance

Aadhaar-Linked Bank Services

If your Aadhaar card is linked to your bank account, you can check the linked bank details through UIDAI services.

You can:

Visit the official UIDAI website

Use Aadhaar-enabled banking services

Verify which bank account is linked with your Aadhaar number

Where to Find Your Bank Account Number?

If you are unable to access online banking, you can still locate your account number using offline methods.

Bank Passbook

Your account number is usually printed on the first page of your passbook along with your name and branch details.

Cheque Book

Your bank account number is printed at the bottom of every cheque leaf.

Bank Statements

Physical or digital bank statements always contain your account number.

Debit Card Assistance

Although debit cards do not display your full bank account number, customer care can help you retrieve it after identity verification.

Customer Care Support

You can contact your bank’s official customer support helpline and verify your identity to get your account details securely.

Security Considerations While Checking Account Details Online

When accessing your bank account details online, it is important to follow proper security practices to protect your financial information.

Always use your bank’s official mobile app or website

Avoid logging into banking services using public Wi-Fi networks

Never share your OTP, PIN or internet banking password with anyone

Enable two-factor authentication whenever available

Log out after checking account details on shared devices

Avoid clicking on suspicious banking links received through SMS or email

Regularly update your mobile banking app for the latest security features

Verify website URLs carefully before entering login credentials

Conclusion

You need to know how to check your bank account number. This can save you a lot of time. Help you take care of your money better. You can do this in a ways: by using your mobile phone to do banking by using a computer to do internet banking by sending an SMS or by looking at your physical banking papers.

It is really easy and safe to get to your account details. You need your bank account number for everything you do with money. So, it is an idea to keep it somewhere you can get to it and keep it safe. If you do things the way when you do banking, you can protect your money from bad people who might try to take it.

If you want to be smart about your money, Fibe can help you. They can give you money when you need it with something called cash loans. They also have something called Loan Against Funds. This means you can get money quickly and easily.

FAQs on How to Find Bank Account Number

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

You can find your bank account number through your bank’s mobile banking app, internet banking portal or SMS banking service. You may also contact customer care using your registered mobile number.

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

To check your account number through SMS, send the designated keyword provided by your bank, such as BAL or ACCT, to the bank’s official SMS banking number using your registered mobile number.

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

Banks do not directly reveal account numbers solely through a mobile number for security reasons. However, you can access your account details through mobile banking apps, customer support or branch visits after proper verification.

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

If your Aadhaar card is linked to your bank account, you can verify linked bank details through UIDAI services, Aadhaar-enabled banking, or by visiting your bank branch with identity proof.

5. Can I check my account number through ATM?

Yes, some banks allow customers to view partial or complete account details through ATM services. You can also print a mini statement from the ATM, which may contain your account number.

6. Is the bank account number printed on a cheque book?

Yes, your bank account number is printed at the bottom of every cheque leaf in your cheque book along with the IFSC code and the cheque number.

MPIN Number: Full Form, Meaning, How to Set & Generate MPIN

This guide explains the mPIN full form, what an mPIN number means and why it plays a major role in UPI and mobile banking security. You will find step-by-step instructions to set, generate or reset your mPIN across net banking, UPI apps, ATMs and USSD codes in under five minutes.

An mPIN, or Mobile Personal Identification Number, is a 4 or 6-digit code that verifies your identity before you complete a mobile banking or UPI payment. It works like an ATM PIN for your phone, confirming transfers without you typing out full bank details.
That is why mPIN plays such a major role in security: even with your phone unlocked, nobody can move money out of your account without this code.

Here you will understand about the mPIN full form, what an mPIN number means, how to generate mPIN across every common method and how to keep it safe from fraud.

QUICK STAT

UPI processed 185.8 billion transactions in FY 2024-25, a 41% year-on-year jump, with its share of India’s total digital payment volume rising to 83.7%. (Source: RBI / NPCI data, FY 2024-25)

What is mPIN?

mPIN full form is Mobile Personal Identification Number, a 4 or 6-digit numeric code that verifies your identity during mobile banking and UPI transactions. Unlike a password, it is short by design and tied only to your registered device and mobile number. Before any payment goes through, the app asks for this code, confirming the person tapping Pay is actually you.

mPIN Meaning in Banking, Simply Put

In simple terms, mPIN meaning in banking refers to a personal lock on your digital transactions. Enter the 4 or 6 digits you set and the transaction clears in seconds, whether you are settling a UPI transfer, paying a bill or confirming a fund transfer through net banking.

What is mPIN Number?

An mPIN number is not a fixed code issued by your bank; you create it yourself when you set up mobile banking or a UPI app. Each account or UPI ID typically carries its own mPIN, so the code on one app can differ from another, even for the same account. Most banks use a 4-digit mPIN for basic mobile banking and a 6-digit option for UPI apps.

Switch phones, get a new SIM or reinstall a UPI app, and you will need to generate the mPIN number again via OTP, since it is device-linked rather than stored centrally.

What are the Key Uses of mPIN?

The mPIN protects banking and wallet transactions, bill payments, shopping and subscriptions. Here is where it is commonly used:

Mobile Banking: Authorising payments on apps like SBI YONO or HDFC MobileBanking

UPI Transactions: Approving transfers on Google Pay or PhonePe

Online Shopping: Confirming purchases on ecommerce sites via linked accounts or wallets

Bill Payments: Electricity, mobile, DTH and broadband payments

IMPS, NEFT, RTGS Transactions: Confirming customer identity for these transfer methods

IVR Banking: Confirming identity during phone-based banking

Wallet Transactions: Loading or paying from wallets such as Paytm or Amazon Pay

Subscription Renewals: Authorising recurring payments like streaming plans or SIP mandates

Why is mPIN Important For Security?

The mPIN keeps your account safe from unauthorised access. It acts as a second layer of security beyond your phone’s lock screen, keeping your banking details private even if someone has your phone.

Unlike passwords, your mPIN is not stored on servers in a form that can leak in a breach. Apps encrypt it and validate it against your device and SIM, so entering it wrong a few times locks the option temporarily instead of exposing the code. Banks never ask you to share your mPIN over a call, SMS or email; treat any such request as a scam.

WATCH OUT

Never share your mPIN, even with someone claiming to be from your bank. Regulated apps never ask for it over a call or message.

How to Generate mPIN: Step-by-step for Each Method

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 code
UPI Apps	Open the 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 card details and confirm
Bank Branch	Visit your branch and fill in the mPIN request form

How to Change Your mPIN?

Regularly changing your mPIN is a good practice for maintaining security. Here are the steps to change your 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 is, it. A few taps and your mPIN is updated.

Importance of mPIN in UPI Transactions

Your mPIN keeps everyday UPI payments safe, from ordering groceries and paying utility bills to booking movie tickets or splitting dinner bills with friends. Each entry verifies your identity and confirms the payment instantly, keeping your information private no matter how you pay.

PRO TIP

Set a 6-digit mPIN wherever your UPI app allows it. The extra 2 digits make it far harder to guess than a 4-digit code.

mPIN Vs Atm Pin: Key Differences

Aspect	mPIN	ATM PIN
Length	4 or 6 digits	Usually 4 digits
Where Used	UPI apps, mobile and net banking	ATMs and POS swipes
Linked To	Mobile number and device	Debit or credit card
Reset Method	OTP via app	Branch, ATM or net banking
Storage	Encrypted, device-bound	Encrypted on card network servers

Tips to Keep Your mPIN Safe

Never share your mPIN, including with bank staff or callers claiming to be support

Avoid easily guessed combinations like your birth year or repeated digits

Change your mPIN every 3 to 6 months

Do not save it in your phone’s notes app or write it on your card

Turn on biometric lock for banking apps alongside your mPIN

Log out of shared or public devices right after a transaction

Conclusion

The mPIN has made digital payments and wallet transactions both safe and easy. It adds security to everything you do online, whether shopping, paying bills, or sending money. Updating your mPIN regularly and never sharing it keeps your transactions protected.

Managing everyday UPI payments securely also means having the right payment tool in hand. The Fibe Axis Bank Credit Card supports UPI payments directly from your credit line, pairing cashback and purchase protection with the mPIN security you already trust.

FAQs On mPIN

1. What is the full form of mPIN?

Mobile Personal Identification Number, a 4 or 6-digit code that verifies your identity during mobile banking and UPI payments.

2. What is mPIN in UPI?

The code you enter to authorise a UPI transaction, confirming the person paying is the account holder.

3. Is mPIN the same as UPI PIN?

Not exactly. mPIN broadly covers mobile and net banking authentication, while UPI PIN refers specifically to the UPI app code, though the terms are often used interchangeably.

4. What happens if I enter the wrong mPIN multiple times?

Apps typically lock the option after 3 to 5 wrong attempts, and you then reset it using an OTP.

5. How frequently should I change my mPIN?

Every 3 to 6 months is a good practice.

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

No, you cannot recover it. Reset it using the methods listed above.

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

No, only on the number linked to your bank account.

8. I recently switched to a new phone. Do I need to reset my mPIN?

Yes, since it is device-linked, generate it again via OTP after switching phones or SIM cards.

What is XIRR in Mutual Funds and Why Does It Matter?

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.