A Comprehensive Guide of SMSF Home Loan

An ever-increasing number of Australians are seeking to take more control and be engaged in their superannuation. With more than 1/3 of their entire superannuation pool of funds within this area, the Self-Managed Super Fund (SMSF) seems to be getting ideal retirement planning for many Australians. An SMSF home loan truly allows you to take your fate in your command and enhance your retirement savings in the manner you think will be best for your future.

What do you understand by SMSF home loan?

An SMSF aims to give yourself more power over your super, the amount you pay into it, and where and how much of it spent. It is a private superannuation fund that you can handle yourself, instead of dealing with a superannuation provider.

Factors to take into account before considering SMSF home loans

Cashflow effect: Money and stocks are usually regarded as more liquid assets since they’re generally simple to get and move around. On the other hand, home or property regarded as non-liquid an asset you can get; it’s inflexible, hard to market and hard to get into the equity or value in it.

Expenses: Investors tend to be put off SMSF home loan because of the wide assortment of costly spending associated with them. It can take a group of lawyers, accountants and several other parties to make sure everything is trustworthy and on schedule, which isn’t cheap. Expenses include Upfront charge, Advice charge, Legal charge, Stamp duty charge, Bank charges.

Benefits of SMSF home loan

An SMSF can be cheaper to deal with as compared to other retail super funds.
Resources within the SMSF home loans are secured from creditors if a person dies bankrupt.
Member has flexibility and control on what their superannuation fund has been spent in.
Asset and resource protection may be an integral concern for Australians, particularly business owners, and superannuation may be a structure that secures an individual from bankruptcy and legal action.
Are You thinking of investing in home loans in Sydney, Australia? Then consult our home loan brokers at Your Finance Advisor to get assistance in your financial decision.

Your Finance Advisor is an Australian most trusted and prominent finance advising company. Our skilled and trained team of home loan brokers expertise in securing the best possible guarantor home loans in Australia for our potential customers that suits their lending needs.

The reliable and dependent team of Your Finance Advisor has been working in this sector for the last several years. It has a great experience in advising the customers about eligibility criteria and highlights of the SMSF home loans in Australia and assisting them to get the best solution for applying to the loan.

Everything you need to know about Liquid Funds

A Liquid Mutual Fund is a debt fund which predominantly invests in liquid money market and debt securities which are of shorter duration maturity of upto 91 days. Asset allocation in Liquid fund consists of:

Treasury Bills (T-bills),
Government Securities (G-secs),
Commercial Paper (CP),
Certificates of Deposit (CD)
Collateralized Lending & Borrowing Obligations (CBLO).
Liquid funds don’t have any lock-in period and provide low interest rate risk in the debt fund category. Some Liquid funds also provide redemption within 24 hours of the business day.

How do they work?

The primary focus of liquid funds is to provide a high degree of liquidity & safety of the capital for investors. Since liquid fund portfolio is invested in for short duration (91 days), it has low sensitivity of interest rate movements, making liquid funds less volatile and provide steady returns.

How much returns do Liquid Funds provide?

Liquid funds are a good alternative against savings account deposits and tend to provide better return than fixed deposits. Even though the returns are not guaranteed but are less risky than equity funds.

Who can invest in Liquid Fund?

Anyone who has surplus cash can park their idle money by investing in a liquid fund which lets you earn slightly higher returns and better liquidity. Liquid funds are said to be an entry point to invest in mutual funds. It also allows you to switch from liquid fund to other category of mutual funds of your choice.

Other traits of Liquid Fund

Unlike other funds, Liquid Funds generally have a lower expense ratio. They are preferred by most debt investors, as it helps in maximizing their gains. Since portfolio maturity is of a shorter period, liquid funds invest and hold the security until maturity. Thus, the fund does not incur expenses due to excessive buying and selling of securities.

Since liquid funds fall in the category of debt funds. They provide tax indexation benefit which helps long term investors to cope better with inflation when subjected to capital gains tax.

Liquid funds are used by many investors to create an emergency fund as they are highly liquid. Ideally, they are designed for investors with a 3-month investment horizon. Wealth managers suggest liquid funds as a suitable parking ground when you have a sudden influx of cash, which could be from a huge bonus, or selling of real estate property and so on and so forth. Investors looking out for opportunities in equities and long-term fixed income instruments can also park their money in the liquid funds until a favorable opportunity arises in the market.

Liquid Funds do not charge any exit loads after 7 days from the date of investment. The exit load amount gradually reduces from the first day to the 7th day from the date of investment. It offers growth & dividend options.

In dividend option, one can choose daily, weekly or monthly dividends depending on their investment horizon & principle amount. Redemption requests in these Liquid funds are processed within one working (T+1) day. Since today it’s become easier to invest in Mutual Funds, individual investors may choose Liquid funds as an effective short-term investment option over their savings bank account.

ESG Investing: Explained & Simplified

If you’ve started to become environmental friendly and value certain ethics and principles, then you’d want your investments to follow the same values as well. That’s where ESG investing comes in.

What is ESG Investing?

ESG investing means investing in companies that contribute to better people, planet & profits, without sacrificing investment returns. ESG factors may include non-financial parameters that does have a material impact on a company’s long-term financial health.

ESG encourages companies to look beyond traditional parameters and measure sustainability. Companies are evaluated on quantitative and qualitative parameters. ESG factors cover a wide spectrum of aspects that may not be part of financial analysis, yet may have financial relevance. This might include how corporations respond to issues such as climate change, water management, health and safety policies, supply chain management, treatment of minority workers and whether they imbibe a culture of innovation & trust.

Let’s understand thefull form of ESG funds

E – indicates a company’s exposure to environmental issues such as energy conservation, pollution control, climate change, carbon neutrality, treatment of animals, water management, etc.

S – Social, includes companies’ ability to attract and retain skilled manpower at a socially responsible manner incorporating an inclusive workforce irrespective of gender, race or color. Other socially responsible initiatives could include providing the locals with access to education and medical facilities and avoiding product liability issues.

G- indicates a well-run company with strong governance, how does it interact with shareholders, how does the management drive leadership and bring effective adherence to policies and procedures, while fostering integrity, honesty and transparency at all levels.

Why should you make an investment in ESG? Investors can grow their corpus by investing in companies that take care of environmental, social and governance factors:

Companies who care about such values resonate with consumers and investors,
have lower costs and improved operational performance,
create sustainable value and
Enjoy corporate longevity.
For companies that do not incorporate ESG parameters they:

End up losing their customer base,
Fail to attract/retain good talent,
Run the risk of facing litigation and regulatory actions etc.
Therefore, ESG investing reduces your exposure to risk and contributes to growth over the long term.

ESG Investing is Responsible Investing You experience a sense of personal satisfaction when you choose to buy organic vegetables from the local vendor as compared to buying vegetables that look nearly half as fresh from a supermarket. Similarly, when you invest in companies that are sensitive to ESG parameters, you feel empowered to invest in companies that reflect the fundamentals that you believe in.

In coming times, corporate India will have to follow stipulated norms and regulations or provide extensive disclosures on adherence to responsible business practices.

ESG criteria broadens the ecosystem of how participants interact with each other. For instance, on the social side, it identifies companies that have built a sustainable relationship with employees, suppliers, communities and investors at large; and have built a strong reputation with the potential to generate more business. A significant proportion of a company’s valuation is tied to intangible environmental and social and governance parameters that material impact on its financial outcome.

Energy Management Consultants Enabling Conservation

Today, optimizing energy consumption is one of the biggest challenges faced by companies and industrial facilities across the globe, with energy prices constantly rising. Not only are we facing the pressure of increasing prices, but increased energy usage is also leading to devastatingly negative impacts on the environment.

Companies today are being held more answerable for their role in environmental impact. Effectively managing and reducing energy consumption will help companies save money and help in alleviating climate change, making energy management the need of the hour. One of the most compelling reasons for saving energy is the reduction in the cost to a company – many organizations have reportedly saved up to 20% of their energy cost by managing their energy consumption effectively.

Management refers to inspecting, planning and optimizing the operational processes of business units to reduce their environmental impact. It is imperative to include energy monitoring in the organizational structure, so that it can be implemented across the entire organization to create maximum impact. Integration and coordination can ensure the fulfillment of a strategy. Energy monitoring is the source of saving energy within your organization.

Conversations regarding the importance of energy conservation are taking place at the global level – the global need affects price of energy, carbon emissions, greenhouse gas emissions and country legislation’s, all of which create convincing reasons why you should prioritize energy conservation within your organization.

Energy management consultants will look into resource conservation, environmental safeguarding and cost-efficiency, while developing the energy tactics for a company. Consultants provide management services that encourage companies to lower energy costs and reduce greenhouse gas emission, taking a small leap forward in environmental conservation. Consultants will also help companies identify savings opportunities for energy, enabling them to reduce their carbon footprint.

Comprehensive management planning is the process of continuous improvement in energy efficiency, without compromising on your core business productivity. Management consultants will help you to determine and analyze your power consumption patterns and find solutions for savings, by showcasing the cost-benefit analysis for your company. Energy management consultants will also instruct staff and relevant stakeholders to maintain and enhance the energy program that they have derived for the company. They will conduct due diligence and independently evaluate the execution of the program, to ensure that the company meets its goals of energy efficiency, thus becoming safer, more environmentally friendly and productive in terms of optimizing capital and operating costs.

An energy strategy should now be integrated into the overall strategy of any company, without affecting the business productivity and output. By developing a comprehensive strategy, a company will have the opportunity to mitigate risks and save costs, thus giving them an edge over business rivals. If you have set energy as a priority in your business, consultants will play an important role in helping you achieve your energy conservation and efficiency targets.

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