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How To Optimize Your Fixed Deposit As An Investment Tool

When you have an investment portfolio, you can’t be opinionated about investment tools. You should consider the pros and cons of each and make the best use possible. For example, there are several finance professionals who may suggest that fixed deposits are not beneficial. It is true that they have much lesser returns on investment than other investment tools like mutual funds. However, if you are building an investment portfolio, you would need to make some investments in low risk tools too as all high risk investments may not turn out to be profitable. There are other ways in which this product is helpful though.

• Invest for emergencies: Most people cannot anticipate every kind of emergency. For such situations, the safest, most rewarding & ideal investment would be fixed deposits . It offers higher returns than a savings account. While it is much lower than mutual funds and stock market, it has the highest form of liquidity besides a savings account. So, it continues to grow till you need it. If you plan to save and invest for this purpose, you must ensure that:

I. This is the best interest rate possible. Invest the right amount for the right period to earn the highest returns possible.

II. Ensure that the premature penalty is zero or very low since you use this financial tool to protect yourself against emergencies. Premature withdrawal penalties vary with every financial organization.

You must ensure that you opt for the best combination of the above factors for your investment. There are different ways to invest in this product, which are:

• FDs for low-risk investment: If you are a HNI (High Net-worth Individual), you are definitely in a position to take the risk. You have a substantial support system in place to protect you against major financial threats. Most retail investors, though, can’t claim to have this. So the question is can you risk losing it? If your answer is no, then high risk investment tools like the stock market or mutual funds may not be right for you. Fixed deposits, on the other hand, might be the most suitable choice instead. This low-risk low-gain tool is guaranteed to provide assured returns.

• Invest as a gift: While there are a few mutual funds that allow you to invest on a minor’s behalf, a FD is still a much better way to invest. If you find a good fixed deposit scheme that offers:

I. Best interest rate for the possible long term

II. Reinvestment of the annual returns option

Then you can easily invest in such a Fixed Deposit and nominate the child as a beneficiary to ensure that the said minor can use it for his/her education or wedding expenses.

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The ideal conditions for the implementation of a bionic prosthetic arm

Amputations are extreme measures, performed mostly when a patient’s life is at stake. Incurable infections, Cancer, and accidents can enforce the pain and suffering of enduring an amputation. Today, bionics is the most potent remedy for the physical and mental ordeal of an amputee. But the limitations are pretty defined in the case of bionic implementations. The bionic systems rely on the Electromyogram output of residual limb muscles for commands. An amputation resulting in the absence of relevant muscles also renders the amputee ineligible for wielding a bionic enhancement. Additionally, the psychological and neurological aspects of an amputee’s health determine the nature of future impact a bionic arm might leave.

This article will try to discuss the limitations and ideal parameters for the implementation of a bionic enhancement.

Length of the residual limb

The length of an amputated limb determines the state of residual muscles. The onboard computer of a bionic prosthesis receives commands from those muscles and executes them according to its hardware capabilities. Improper length and quantitative aspects of residual muscles might render a patient ineligible for accessing the blessings of a bionic prosthesis.

Motivation

The willingness to take up the challenge of welding and maintaining a bionic arm is fueled by the motivation of contributing in day to day life. The process of gaining and maintaining the enhancement is a story full of challenges and without fairly strong motivation the journey is next to impossible. The frustration of losing a limb can often manifest into strong and unyielding motivation for wielding a bionic enhancement.

Physical conditions

There are no specific guidelines regarding the optimum physical condition of the wielder of a bionic prosthetic arm. But, in order to effectively wield a bionic arm a fair amount of fitness is expected from the amputee. Additionally, the presence of any osteological or neurological disorder should be dealt with beforehand, so that unwanted permanent damages can be avoided. During the calibration process, sustained fitness is important for the effective completion of the process. Which is generally followed by a rigorous training and awareness program.

Psychological and neurological conditions

The calibration process of a bionic prosthesis depends on the neuronal health of an amputee. Genetic disorders like Parkinson’s desease or ALS render the effective application of a prosthesis almost impossible. Additionally, the presence of tremors and seizures hinders the process of calibration even more.

Prosthetic limbs are known to alleviate phantom limb pain and phantom limb related frustrations. But an abnormal kind of phantom discomfort can worsen after gaining a bionic enhancement. Hence, a holistic psychological and neurological assessment is strictly recommended before even thinking of wielding a prosthetic arm.

awareness

A bionic arm packs an array of sophisticated technology like really sensitive sensors, a powerful microcomputer, and hi-tech hardware parts. The maintenance of this tech assembly is very much important for extracting the optimum performance. As the bionic prostheses are directly responsible for the motor experience of an amputee an extremely small glitch can pave the path for severe illnesses.

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5 Factors Affecting Home Loan Interest Rates

Many first time borrowers are hastily impressed by the interest rates advertised in newspapers and television ads. However, most people don’t get their home loan at those advantageous rates. There are a few factors to bear in mind to get the ideal home loan rates possible for your brand new home.

• Credit history

This factor is all about financial standing. It allows the lenders to see your repayment ability, which is one of the most important factors. The smart thing to do before you apply for a home loan is to improve your credit history. Get rid of those credit card debts and personal loans. There are a number of things that you can do to show yourself as a reliable candidate for a home loan. Hence, you should take all the necessary steps to let these factors work in your favour.

• Nature of employment

Since your income is the means of repaying your EMIs, the nature of your employment is essential to your lenders. If you’re working in a smaller organization, you may come across as a less reliable candidate as compared to someone working for a public sector bank or a government job since their income is considered more consistent. Thus, your organization, years of experience and appraisals affect your credibility and repayment ability. If you compare a professional to a SME business owner with the same income, a professional is sometimes deemed more credible. You can certainly make this bias work in your favour. Today, most employees are job-hopping only for a 5 to 10 percent increment in salary. You can either choose to work with a more established organization or apply for a loan along with a co-applicant, who is working in a reputed organization.

• Your lender and home loan market

Many banks and housing finance companies are offering home loans today. There is a huge market and substantial competition. So it makes sense to apply to several organizations and let the competition work in your favour. If you get an approval from more than one organization, you are in a good position to negotiate and get the best possible housing loan interest rates .

• RBI

There are some factors that affect your home loan rates considerably; however, these factors are not under your control. The Reserve Bank of India has several rules and regulations that affect rates for all kinds of loans such as SLR (Statutory Liquidity Ratio) Rate, Repo Rate, Cash Reserve Ratio (CRR), etc., which you need to be aware of.

• Economy

The economy of India can also affect interest rates significantly. It is possible, though, to anticipate the possible changes to an extent and use them to your favour. So, make sure you use these factors where you can.

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