It’s no secret that securing a home loan can be a complicated and sometimes stressful process. There are several things you’ll need to keep in mind and prepare for if you want to increase your chances of being approved for a loan. Here are a few things to keep in mind:

Check your credit score and report

When you’re ready to buy a home, one of the first things you’ll need to do is secure a home loan. Part of the process of securing a loan is ensuring that you have a good credit score and report. Your credit score is a number that lenders use to determine your creditworthiness – in other words, how likely you are to repay a loan. 

A good credit score means that you’re more likely to be approved for a loan with favorable terms. Checking your credit score and report before you apply for a home loan can help you be prepared and increase your chances of being approved. It can also help you identify any potential red flags that may need to be addressed before you apply for financing. 

One such potential red flag is your employment history. It is one of the factors that lenders look at when they check your credit score and report. This is because your employment history can give them a good indication of your financial stability and ability to repay a loan. If you have been unfairly dismissed from a job, this can negatively impact your credit score as it will show up on your report. Similarly, if you have worked for a series of different employers, this can also lead to a lower credit score. 

Consulting firms often review employment histories as part of their credit checks, so it’s important to be prepared to explain any gaps in your employment history. Lenders typically like to see a stable employment history as it indicates that you are less likely to default on a loan. So if you’re looking to improve your credit score, it’s worth trying to maintain steady employment.

By checking your credit score and report, you can be one step closer to achieving your homeownership goals.

Save for a down payment

Once you’re all set and background checks are done, it may be time to save up and get that down payment secured as soon as possible. A down payment is the amount of money you’ll need to put towards the purchase of your home, and it typically ranges from 3-20% of the total cost. 

While it may seem like a daunting task to save up such a large sum of money, doing so will help you in the long run. Having a larger down payment will give you more negotiating power when it comes time to purchase your home, and it will also help you to avoid paying private mortgage insurance (PMI).  

“By making a larger down payment, you’ll be able to show lenders that you’re a responsible borrower. Having a down payment can help you get a lower interest rate on your loan. In addition to improving your credit score, saving for a down payment can also help you reduce the amount of money you need to borrow.” a Brisbane property expert adds. 

So, if you’re planning on buying a home soon, start setting aside some money each month for your down payment. You’ll be glad you did when closing time comes around.

Shop around for the best deal

When you’re just starting to look for potential lenders, it pays to shop around for the best deal. There are a wide variety of home loans available and each one has its terms and conditions. 

“Fixed rate home loans and first home buyer loans are just two examples of the wide range of options available when it comes to securing a home loan. Fixed rate home loans tend to have lower interest rates, making them a good option for those looking to save money on their repayments. First home buyer loans often have special features such as lower deposit requirements, making them an attractive option for those looking to get into the property market.” a top real estate advisor from Moonee Ponds remarked.

By shopping around, you can compare interest rates, fees, and other features to find the loan that best suits your needs. This process will also help you to understand the different types of loans available and what they entail. When you’re armed with this knowledge, you’ll be in a much better position to negotiate a great deal on your home loan. 

So if you’re thinking of buying a home, don’t just go with the first loan you’re offered – make sure you go around for the best deal first. 

Understand the costs involved

When securing a home loan, it’s important to be aware of all the costs involved. This includes the monthly mortgage payments, insurance, property taxes, and repairs/upgrades. By understanding these costs upfront, you can better prepare yourself financially for the loan.  

You’ll be less likely to experience any financial shocks down the road once you know these from the inside out. Furthermore, understanding the costs involved can help you negotiate a more favorable rate with your lender. 

So, if you’re thinking of taking out a home loan, make sure to do your research and understand all the associated costs. Doing so will put you in a much better position to successfully secure a loan that meets your needs.

Know what you can afford

Before you begin shopping for a home, it’s important to know how much you can afford to spend. This will help you avoid overextending yourself financially and getting in over your head.  

One way to figure out your budget is to get pre-qualified for a mortgage loan. This way, you’ll know the maximum amount you’re able to borrow before you start looking at homes. Once you’ve found a few properties that you’re interested in, it’s time to get pre-approved for the loan. This process is more in-depth than pre-qualification and will give you a firm commitment from the lender. Getting pre-approved will also give you an idea of what interest rate you can expect to pay on your loan.  

Knowing how much you can afford before securing a home loan will help the entire process go smoothly.

Conclusion

Securing a home loan can be a daunting task, but it doesn’t have to be. By following these tips, you can make the process much easier and improve your chances of success.

The post How to Secure a Home Loan: The Ultimate Guide appeared first on Adclays.

Before we begin, it’s worth clarifying that the regulatory standards in the British financial services sector are world-leading. The Financial Conduct Authority appears to have a reasonable remit and sufficient power and budget to enforce existing UK legislation and protect UK consumers. 

That being said, any complex system of regulation can be improved. UK consumers are increasingly falling victim to financial crime, including investment scams. At the same time, a new generation of youthful investors are taking up investing as a hobby and potentially they are unwittingly overstepping their risk tolerance by blindly following trading tips sourced from social media and online discussion forums.

What are the current issues?

Losses of investments to fraud are on the rise. As the invested household wealth increases, so does the attractiveness of British pension pots and investment accounts to sophisticated criminals. 

With most financial transactions now being conducted online, it’s never been easier for criminals to commit a financial crime behind the relative anonymity of the web and launder the proceeds. 

Recent legislation such as the 2020 update to the Money Laundering Regulations and the Bribery Act have worked to make it harder for criminals to disguise the proceeds of digital theft and convert it into spendable currency.

This hasn’t deterred the criminals who stole £63m of investment assets via social media in the 12 months to May 2021. When all sources of fraud are considered, more than £2.3bn of money was lost to scams (including banking scams) in 2021. That’s up from £1.2bn in 2012. 

What can be done to protect consumers?

To help curb unauthorised access to customer accounts, stockbrokers should enforce a system of two-factor authentication on their accounts. This simple system sits ontop of an existing login approach, requiring customers to enter a security code sent to their mobile phone or email address to provide additional proof that it’s really them signing in. 

Such security protocols make it much harder for criminals to access an account, because it requires them to have two sets of usernames & passwords to force their way into an account (provided the details are not the same between the stockbroker account and email account of course).

Stockbrokers could also limit the range of investments available to consumers who have self-identified as being relative beginners to investing. A common investment scam is known as the ‘pump and dump’ scam, in which the scammers place adverts and make cold calls to convince the public to buy the shares of a cheap (and usually bankrupt) company, known as a penny stock. 

The co-ordinated activity of buying by the public causes the price of the shares to rise, at which point the criminals can exit their investment and make a profit at the public expense. After they dump the shares and cease the marketing efforts, the price of the shares will likely fall back (or below) their original starting position, resulting in losses for anyone unlucky enough to have bought during the contrived rise.

Stockbrokers can protect consumers from these scams by preventing users from buying penny stocks unless they have passed various assessments such as a questionnaire which establishes that the user is fully aware of the risk of penny stocks and pump & dump scams. 

What are UK stockbrokers doing right?

For balance, it’s worth setting out the highlights of the industry and what stockbrokers are doing well. 

Fees and charges are possibly a highlight for retail investors. Fees have fallen significantly, particularly over the last five years thanks to new ‘zero-commission’ entrants into the UK market. These have added downward pressure on fees, which means that the cheapest stockbrokers sometimes charge nothing to buy or sell shares or funds. These rock-bottom fees compare to charges which typically reached £10 – £15 earlier this century. 

Stockbrokers are explaining their fees and charges clearly to consumers. All brokers usually have a dedicated public page which sets out the charges for trading, holding assets, dealing in foreign currencies and performing administrative tasks within their account (such as closing, transferring securities and so on). 

This combination of low and transparent fee structures is leading to a market in which investors are finding it easy to compare and contrast the offerings of different providers to reach a logical conclusion of which stockbroker would be right for them.

No longer is a financial adviser required to pick out a platform for an investor – all of the information needed is available online to those with the background knowledge and desire to do it themselves.

The post Could the Regulation of British Stockbrokers Be Improved? appeared first on Adclays.

What Are Instant Payday Loans?

Instantaneously, payday loans allow you to foot your bills and expenses. So whether it is the holiday season, more bills, or even medical expenses, if you cannot cover all of them through your monthly paycheck, using payday loans to protect you, for the time being, is the best solution. 

Payday loans are also called short-term loans, allowing you to repay the short sum of money you borrow from lenders within a short period. Payday loans give you a window into safely accessing financial support at competitive interest rates and APR. 

What You’ll Need to Get an Instant or Fast Payday Loan?

Unlike conventional loans that string you through a grueling process, quick Fast Payday Loans have an easy-to-complete application process that allows you to safely seek the approval of reputable lenders in the industry within no time. 

You can easily apply through their website’s application process by perusing sites that offer credible deals, competitive interest rates, and reasonable APR. By simply submitting some mandatory documents, your profile will be shared with a vast network of lenders, and depending on the lenders’ choice, you will be offered various deals and quick pre-approvals for your loan. 

How to Apply For an Instant Payday Loan? 

Gather All Necessary Documents 

The first step to securing a safe Quick Payday loan with no hard credit check is ensuring you have all the relevant and necessary documents. To be eligible for a Payday Loan, you must have a checking account. Furthermore, you should be able to provide some proof of income before you submit your application. Aside from this, evidence that you are 18 years of age is also necessary. 

Fill Out an Instant Payday Loan Application 

Having gathered all the relevant documents, applying for a quick payday loan is the following process. To apply for a payday loan, simply go to the WeLoan website, and you can find the option to apply for a Payday Loan immediately. The website will take you to an easy and quick application to fill out. 

Submit Your Instant Payday Loan Application 

As and when you submit your application, your profile will be forwarded to different reputable lenders that assess your application as worthy of approval.  

Receive Your Funds 

After seeking a quick approval, you will have the time to look at the stipulations of the repayment period. Then, having mutually agreed on terms, the lender will supply the funds to your account on the same day or the following business day. 

What Precautions Should I Take When Taking Out an Instant Payday Loan? 

The Lender 

A vital part of getting a Payday Loan is getting a reputable lender. More often than not, people get loans from just about anyone in a state of urgency. This can prove to be highly detrimental in the long run. Therefore, making sure that the lenders you borrow from follow the authorities’ regulations and are not using hidden charges to seek more money from you in the total cost is essential. 

Make sure that you seek the right lender for your payday loans. Unfortunately, several lenders and platforms can end up hiking your total cost by concealing hidden charges; being aware and immune to such tactics is vital. 

Lending Time 

When you apply for a quick Payday Loan, expecting immediate results is normal. However, not every website you use may give you speedy answers. This is because lenders will look into your profile and conduct basic checks before determining your fit for lending the amount sum. After approvals, a reputable lending platform will disburse your amount within 10 minutes. 

Approval Rate 

Choosing a lender with a high approval rate will maximize your chances of getting a quick payday loan. An approval rate is usually dependent equally on both parties. If you fail to submit the correct information at the right time, there will automatically be hindrances to your quick approval. Therefore, try to submit an application quickly to seek fast approvals.

When Should I Apply for an Instant Payday Loan?

If you are facing any unplanned expenses or urgently need emergency funds, you will need quick aid to remedy the situation. An instant payday loan can help you take care of these unexpected and unforeseen expenses that are inevitable in most circumstances. 

Whether it is car trouble or emergency repairs that cannot be put off, emergency medical bills, any serious problem to the house such as flooding or roofing, delayed salary, or even funeral expenses. 

All these expenses can make it difficult for someone to live paycheck to paycheck. 

Benefits of Payday Loans With or Without Credit Checks

Quick Application Process 

The best part about payday loans is that the application process is quick and does not take the majority of your day. 

Instant or Quick Approval Decision 

Another great advantage of a Quick payday loan is that you do not have to worry about long application processes that drag on for days. 

Safe and Secure 

With a trusted platform to host all your queries and complaints, Payday Loans allow you to seek financial support in real-time without many issues. 

You Don’t Need Good Credit 

Finally, the biggest obstacle to obtaining loans is your credit. However, when you apply for Quick Payday loans, you do not have to worry about your bad credit.

The post What Make You Qualified to Apply for a Payday Loan with No Credit Check appeared first on Adclays.

Larger monthly payments appear to be a frightening and dissuasive feature of a short-term loan. However, don’t be put off by the larger fees. Short-term loans might be a very smart alternative and make sense financially. Mentioned below are some of the benefits of short-term loans that you must know. 

a). Lower Interest Rate – When it comes to short-term loans, interest rates are not less always. Moreover, the lenders might charge high-interest rates in the absence of a security asset. However, there are so many lenders in the UK who are providing these short-term loans at a low-interest rate these days. All you need to do is, spend some time to find such lenders. 

b). No More Stress: Paying high interest to lenders can be extremely stressful, especially for a longer duration. You will not have this kind of problem in case of a short-term loan, as you clear it as soon as possible.

c). Predictable: It is a little difficult to predict your future finances. Hence, it is better to choose short-term loans over long-term loans. A short-term loan is easy to plan. 

d). Own Your Property Sooner: If you have a mortgage, paying off the principal faster with a short-term loan will allow you to own your property sooner.

e). Quick Funds: If you are looking for quick funds then short-term loans would be your perfect choice. Moreover, it takes very little time to process. 

f). Easy Loan Application Process: Applying for a short-term loan is really easy. All you need to do is, find a lender online and submit the application form online. 

g). No Collateral: Certain types of short-term loans usually don’t require collateral. This means you need not worry about anything now. 

There are so many lenders who are offering short term loans in the UK nowadays. Besides, some of them provide the loan at a great ROI, while some provide the loan to their clients at a lower ROI. There are some fake sites too online, which might take all your information stating that they will provide you a loan. If you choose such sites, you might land trouble because your bank account and credits could be at risk. Choose LoanPig if you are looking for short-term loans. 

The main advantage of choosing LoanPig is, if they are unable to provide you loan, they will find a lender for you, which means you can save your time. 

Choose a lender online to avail yourself of a short-term loan within no time, easily, without stepping out of your home!

The post Top Benefits of Short-Term Loans that You Must Know About appeared first on Adclays.

Bake for charity

In order to be a little bit different, you could bake for your favorite charity. Either hiring a local hall or just setting up stalls in your garden or at a community gathering so that people can purchase your wares can raise a lot of money, especially if you are good at baking and enjoy it.  

Holding a coffee morning in order to sell your cakes, biscuits, and other desirable nibbles may also be something to look into, and even more so if you bake a large fancy cake and raffle it off. This could be very profitable, especially if you get others, friends and family involved.

Engraved bricks

Using engraved bricks as a way to raise money for your favorite charity is another fun way to get others involved, especially children. Engraved bricks are not just for words alone but can also have designs and basic drawings engraved into them. Therefore, you may find that it is an idea to get the local schools and kinder gardens involved so that they too can have their bricks on display, and your charity will receive the benefits from it.

Bricks are available in different sizes, and although you can use them as commemorative gestures for your charity, they can also be used for all different types of messages and even be given as presents to celebrate the birth of a baby, a wedding, anniversary, or a special birthday.

Sponsored event

You can always fall back on the old faithful sponsored event, whether it is a sponsored swim, run, walk, drink, dance or even bar crawl! There are usually loads of people not only willing to take part but also to sponsor others to do the task in question.

These can be great fun to take part in, but you do have to have some organizational skills to pull it off and a good few weeks’ run-ups to give yourself time to get it all sorted.

Your chosen charity may be able to provide you with a PDF sponsor form so you can print off as many as you need, but if they do not, there are basic sponsor forms available online that are charity nonspecific. You just have to add the correct amount of fields for the tasks that you want to be performed as well as a few other details such as name, contact details, when the event is going to take place, etc.

The post Novel ways to fundraise for your event or charity appeared first on Adclays.

A Liquid Fund – What is it? 

When you get a clear picture about a liquid fund, its features, and the pros it has for investors, you will automatically have a basis to decide on for your investment. So, to get on with a definition of a liquid fund, it is a kind of mutual fund that invests your money in debt instruments. The goal is to generate returns for the short term and give investors as much less risk as possible. The majority of the best liquid funds tend to invest in debt instruments such as commercial paper, treasury bills, government securities, and the like. Liquid funds have short maturity periods, up to 91 days. As their name aptly suggests, the best liquid funds offer investors a great deal of liquidity, and still manage to protect the initial capital invested. 

Short maturity periods in liquid funds reduce market risks in terms of fluctuations in interest rates, and hence, investors stand to make higher gains. In case your money is just lying in a savings account, liquid funds can help you grow wealth.

Two Critical Features of Liquid Funds

The best liquid funds in India today offer investors liquidity and a safe haven to guard their principal amounts. Moreover, investors get to grow their wealth. These are the primary features of funds that investors base their investing choices on:

• High Degree of Liquidity

In case you wish to redeem units from a liquid fund, you can do so quickly and conveniently. Additionally, funds are redeemed in a day or two. This is the main reason why they resemble the liquidity aspect of money that remains in a savings bank account. 

• High Degree of Safety

Liquid funds invest your wealth in instruments of debt. With such instruments, your initial capital stays protected and you earn risk-free returns too. 

Corporations, firms, and businesses habitually invest in liquid funds as they ensure capital safety and liquidity. These are essentials that companies require, as well as investors too. In contrast, your wealth placed in a current bank account earns no interest whatsoever. In fact, your money loses value due to inflation. 

Selecting the Best Liquid Fund

The main purpose that liquid funds serve is to offer investors a short-term option for investment. Typically, if you are an investor who does not know where to park your capital, or is in between investments, you can opt for one of the best liquid funds out there. You will not consider investing in a liquid fund for the long term. If you wish to invest in a good liquid fund, you may compare the returns of several liquid funds on the market, and consider the following: 

• The AUM of a Liquid Fund

Assets under management (AUM) are crucial when you wish to opt for a mutual fund. Experts and analysts will tell you to find out the size of the AUM before you invest, as the AUM is the measure indicating any fund’s cash flow. This is true for liquid funds too, as a significant amount of AUM gives any liquid fund a cushion to withstand any factors that may weaken it.

• Credit Ratings of the Best Liquid Funds

High credit ratings of funds tell investors that funds are creditworthy and secure enough to invest in. If the fund holds a Triple A (AAA) rating, that means that the fund lends to borrowers with high creditworthiness. It also means that the fund will give investors returns in a timely fashion. 

• Expense Ratios

Liquid funds have expense ratios that are computed based on the expenses levied to manage the fund. If these are high, they are prone to cost you more as an investor, eating into any potential returns you may make. Therefore, choosing a fund with a low ER (expense ratio) is advisable. 

• Do Some Homework

While choosing the best among liquid funds available today, investors must do their homework and background research well. As with any kind of investment you opt for, choosing the best liquid funds entails a process of studying various funds on the market and their historical performance. You would do well to evaluate the fund managers’ success rates too, as this reflects the performance of the fund in question. 

Better Safe than Sorry

Going into any investment without studying the parameters to base your choices on is a bad idea. If you consider certain metrics to plan your investments, you are assured of making the right moves where your capital allocation is concerned. After all, investing should translate to you gaining returns and being protected to a large extent. 

The post Parameters To Select Best Liquid Fund For Investing appeared first on Adclays.

According to the analysis, the NFT market will keep growing at 34.3% per year from 2022 to 2028. The study also says that the amount of money spent on NFTs in the area will go from $3.42 billion in 2022 to $18.22 billion in 2028.

In the United Arab Emirates (UAE), there are more events with NFTs, like the contemporary art fair Art Dubai, which has NFTs. According to the research, the market for non-financial instruments (NFIs) in the UAE is expected to keep proliferating over the next few years. 

This prediction is backed up by the fact that many cutting-edge NFT marketplaces have been set up in the country in the last year. People in the UAE can now buy, sell, and trade things that are not money more quickly because of this invention. You can also read about bitcoin and its advantages before investing your money in trading.

From NFT-based startups to cryptocurrency exchanges, more and more people are getting involved in the UAE NFT industry. Because of this, the value of NFTs is going up, and so is the number of trades that use them. Over the next few years, this trend is likely to keep growing. 

The United Arab Emirates has always been interested in new technologies, taking NFT with both feet. The country’s postal operator made NFT stamps to honor the National Day of the federation and the 50th birthday of the postal operator.

Big businesses are getting into the business of non-fiat currencies so they can take advantage of the growing global market and grow faster. This happened after Dubai, and Abu Dhabi said that cryptocurrency-related activities and businesses are now legal in the United Arab Emirates.

In April, for example, Emirates Airlines said it would enter the metaverse and NFT sectors. The company wants people to have a better time flying in the metaverse by giving them more services and digital items to collect. The NFT and the metaverse projects have already started to be built, and they should be up and running in the next few weeks. 

Non-fungible tokens, or NFTs, could grow significantly in Africa and the Middle East over the next few years. “Non-fungible tokens,” or “NFTs,” are digital assets that can only be used once. A blockchain, a type of distributed ledger, keeps track of them. They can prove ownership of art, collectibles, virtual land, and many other things. 

There are many ways that the non-fiction publishing business can grow in Africa and the Middle East. One is that more and more people want to use blockchain technology in the area. More projects and plans are being made in Africa and the Middle East that use blockchain. This could make it easier for NFTs to grow in the world.

The fact that many young people are in the area, and that number is growing, can also help the NFT business. Many young people in Africa and the Middle East are tech-savvy and interested in digital assets. This could make the market for NFTs grow.

Cultural things could also affect how well the NFT business does in the area. Some of these cultural factors might be: For example, there have been art and collectibles markets in Africa and the Middle East for a long time. By using NFTs, collectors can buy and sell things in a new and different way.

In Africa and the Middle East, the NFT market will grow greatly. This is because more people are learning about how useful they can be and how great the area is for using this technology.

The post NFT industry in Africa and Middle-East poised for rapid growth appeared first on Adclays.

What this review aims to do is:

• Highlight the main benefits of the platform
• Point out any possible downsides
• Explain more about how SpotInvest works
• Put the core features and functions under the microscope

Read on for all the essential information regarding SpotInvest and the service it offers.

Who Is the Average SpotInvest User? 

Let’s start with a big one: who is SpotInvest actually aimed at? There is no specific customer in mind since the platform aims to be as inclusive and adaptable as possible. That said, the average SpotInvest member is someone with some prior knowledge of how digital investing works who wants a more accessible, versatile, and convenient space to manage their portfolios. 

Beginners are welcome, and there is plenty of support available, but the person who can benefit most is someone looking to take their trading journey to a higher level and build their confidence and competence as an investor. 

Pros and Cons 

 Pros 

• Flexible investing tools that adapt to every market
• Consistently flawless performance and connection across the platform
• Professional-grade report tools and analytics
• Works on smartphones and tablets
• Secure transactions and strict privacy protocols

 Cons 

• Fewer features available on the mobile version
• Unavailable in some locations

 The Must-Know Details 

Here is a more detailed insight into important elements of the SpotInvest platform.

 Costs and Fees 

SpotInvest is a paid platform with monthly subscription options. There are several tiers, which vary in account fees and commissions. The lowest tier is a great entry-level subscription for someone who wants to test the waters, but it does come with fewer investment options and higher withdrawal charges. On the other end of the scale, the most expensive account option carries no additional charges, has full access to everything the platform offers, and personalized account support. 

Investment Options 

There is no shortage of choice with SpotInvest, with investment possibilities ranging from precious metals to blue-chip company stocks and everything in between. It has an impressive FOREX department and also dabbles in crypto trading. 

Reputation and Reliability 

Trust is a big deal in this industry, and transparency goes a long way. SpotInvest is a highly respected platform because of its honest, open approach to digital trading. Rather than promote unrealistic goals and expectations, it focuses on the true nature of the investment industry and encourages people to use the tools provided to learn how to make the best, most intelligent financial choices. 

General Performance 

Speed and connection strength are fairly consistent across the board, and all the tools do pretty much what they say on the tin. The overall user experience is positive, from the aesthetics to the finer details of account management. 

Although there are no guarantees of success, SpotInvest limits risks by providing a near flawless interface for people to get to know the markets and learn how to navigate them. Seeing the big picture is a lot easier with a broker that performs consistently at this level. 

Deposits and Withdrawals 

SpotInvest accepts payments via bank card or bank transfer. Both options have no charge and clear almost immediately. The alternative option is to connect a digital wallet and make a deposit in a supported cryptocurrency. 

Withdrawals are just as easy, although there is a small fee on most account options. Users can choose between fiat and cryptocurrencies when removing funds.

Final Thoughts 

In a nutshell, SpotInvest is an exceptional platform and is definitely worth serious consideration. It is powerful, accessible, versatile, and extremely efficient- all while encouraging people to get serious about their opportunities and make the most of them. 

Becoming a member is fast and simple. Visit the official website for more information and see how SpotInvest could change everything. 

The post SpotInvest Review: No Fuss Digital Trading with an Online Broker You Can Trust appeared first on Adclays.

The most recent example of this is the strengthening US Dollar. However, this growing strength only poses one question, “is it a good time to sell Dollars?” 

Well, to find out the answer to that, you first need to understand what caused this sudden growth in strength. 

How Have the Dollars Strengthened?

There are two major reasons behind the USD gaining such immense importance. These are:

• Fed’s Recent Declaration 

The most prominent reason behind US Dollars becoming this strong is the new interest rate policy introduced by the Federal Reserve. 

The central bank has raised its rates about three times, lying between 1.5% and 1.75%. This is a drastic hike from its initial target interest rate of 0% to 0.25% during the beginning of the year. Moreover, it does not wish to stop there and has assured to raise it even more. 

This decision to raise interest rates has bolstered the US’s status as World Reserve Currency. On the other hand, the other developed countries have shown little to no progress, including the European Central Bank. 

• International Investors 

Another driving force here is the current behaviour of international investors. They are choosing the US over other developed countries not just because of this rise in the rate but the volatile situation of other prominent countries as well. 

The recent war in Ukraine is one of the most significant catalysts for this. Russia controls the natural gas supply across Europe that its residents use to heat homes and power factories. 

However, after its aggressive actions, it is not certain if Europe will continue to get natural gas or if the supply will get considerably constrained. Should the latter happen, it would cause a substantial adverse effect on economic growth. 

The US has made complete use of this unprecedented situation and placed itself as a reliable currency in front of international investors. This has improved its value so much that it is now almost in parity with EUR. 

US Dollar & Euro Parity

In the second and third week of July 2022, US Dollar completely changed its value across the international currency board. When the market closed on 19th July, one could purchase a Euro for just $1.02. Now USD to EUR almost has a 1:1 exchange rate; you can look at it as a straight 15% discount from the previous exchange rates. 

Apart from being at parity with EUR, USD has also almost closed the gap between its differences in value with the GBP. And as far as currencies like Yen, Yuan, Won, etc. are concerned, the American currency has completely overpowered it. 

While this has both its pros and cons, US citizens would mostly benefit from it. 

What Does This Mean for US Citizens? 

This increase in value brings forth two significant advantages for the citizens of America, as it has made two things substantially cheaper. 

• Travelling Internationally 

There can be no better timing than this for the US Dollar to gain strength. The world is facing severe economic inflation, making it difficult for individuals to travel across countries as they used to. 

However, that is not the case for US citizens. The newly strengthened USD offers them significant purchasing power overseas. This is because the US’s economy does not noticeably influence foreign countries. 

A strong Dollar would fetch a good exchange abroad right now when converted into local currencies.

This is a great time to travel to European countries as you would get an almost equal amount when converting Dollars to Euros. Even if you are not travelling to any of the Eurozone countries, you would still get a substantial amount when buying foreign currency against your USDs in other European countries.  

For example, when travelling to the UK, you would get more Sterling Pounds (GBP) for your Dollars than in recent years. 

This is why now is the best time to sell your Dollars and travel abroad using countries local currencies. 

• Importing Goods 

The cost of imported goods would be significantly low if the exporter country’s currency value is lesser than the USD. Hence, this is a great time to make international purchases. 

This is especially great news for American car enthusiasts as most of the major vehicle exporting companies are European. Moreover, as Euros are now in parity with USD, one has to pay a lot less for luxury cars as compared to a few months ago. 

This price drop is not limited to vehicles, and other European novelties will also become more affordable for Americans. 

Is it a Good Time to Sell Dollars for Foreigners?

While it is clear that Americans would gain substantial profit by selling USD right now, how will it affect non-US citizens holding Dollars? 

The answer to this lies in the long-term effects of this drastic hike in value. Economists are predicting a sharp fall in value just as it has increased. This would happen because Americans would show more interest in foreign goods (due to the reasons mentioned above), raising their demand tremendously. 

On the other hand, a strong USD would mean expensive local items, which would considerably decrease their desirability. As a result, the US export industry would have a huge setback unless there is an eventual equilibrium in value.   

So, if asked, “is now a good time to sell Dollars for foreigners?” the answer is yes. However, as no one knows how fast the drop in value will take place, it is best to make the most out of the USD you have when you can. 

If you possess USD and are holding onto it to sell it at the best possible moment, now is your time. Take advantage of the strengthened value and sell Dollars for your local currency. While Euro is at almost parity, if you belong to a non-EU European country like the UK, you can make even more GBP or other currencies against the Dollar in your possession.

The post Why Now is a Great Time to Sell Your Dollars appeared first on Adclays.

If a recession hits even the major economies, production and consumption will slow down, and that will have a direct effect on your investment as the markets will slow down. So, which funds can you invest in 2022 for stable returns in these volatile markets? If you are wondering about such questions, then here are two blue chip funds you can consider. One is Axis bluechip fund direct growth, and the other one is Mirae asset emerging bluechip fund. 

Let’s take a look at both the funds separately. 

Axis Bluechip Fund Direct-Growth

As of the 12th of august, this fund is an equity fund that invests around 87% in equities and especially in the large-cap stocks of domestic companies. There is around 75% of the AUM of this fund in the large-cap stocks, and thus bluechip funds are considered to be large-cap funds usually. The fund also has a small percentage of mid-cap stocks which is around 3.25%. The fund’s top holdings include ICICI Bank Ltd., Bajaj Finance Ltd., Avenue Supermarts Ltd., Infosys Ltd., HDFC Ltd., and others.

The returns offered by the fund since inception are around 15.64% which is higher than the category average. If you look at the 5-year returns, then it is 15.44%, while the category average is 12.58%, which means, again, Axis bluechip fund direct growth has the upper hand. 

If you take a look at the risk ratios of the fund, then you will find that this fund has a lower beta than the category average. The fund’s beta is 0.84, while that of the category is 0.86. The standard deviation is also low at 19.63, while the category average is 19.7. Both these indicate that the fund gets less affected during volatile markets. 

The expense ratio of the fund is 0.52 if you are opting for the direct plan and the exit load is 1% only if 10% of the investment in the fund is redeemed within 12 months. 

This fund is suitable for people who can stay invested in the market for at least 4-5 years as that would help them earn a good and fairly higher return from the investment. The risk factor involved in this fund is also moderate, so for investors who do not want to take very high risks but want to invest in equities, this fund can be a great option for them in this volatile market.

Mirae Asset Emerging Bluechip Fund

The next fund that you can consider is the Mirae asset emerging bluechip. This fund has 98.74% of its AUM in equities and equity-related investment instruments out of which 43.84% is in large-cap stocks, 24.62% in mid-cap stocks, and 8.47% in small-cap stocks. As the name suggests, this fund not only invests in the bluechip companies which are already there but also in the emerging bluechip companies, so the investment in mid-cap and small-cap is quite significant. The top holdings of the fund are ICICI Bank Ltd., HDFC Bank Ltd., Axis Bank Ltd., Infosys Ltd., and others. 

As of the 12th of August, the returns of this fund since inception were around 20.65%, while the category average is 16.27%. The 10-year return is way higher than the category average. The 10-year return of the fund is around 23.57%, while that of the category is 15.89%. 

While the returns are high, the fund has a bit more risk factors involved compared to the Axis bluechip fund mentioned above. The beta is 0.98 while the SD is 21.36, both higher than the category averages. This suggests the high volatility factor in the fund. However, the fund offers better risk-adjusted returns. 

The expense ratio of the fund is around 1.69%, while the exit load for the direct plan is 1% if redeemed within 1 year. 

Why are Bluechip Funds Great Investment Options?

During volatile markets, companies that have a strong financial standing, brand value, and large market capitalization do not get affected like mid-cap or small-cap companies. This is why investing in blue chip funds can be a great option during 2022 when the markets are so uncertain. 

Final thoughts

So, you can choose Mirae asset emerging bluechip fund if you are ready to take a little bit of risk for higher returns, or you can invest in Axis bluechip fund direct growth, which offers fair returns at a moderate risk level.

The post The Top Blue-chip Funds of 2024 appeared first on Adclays.