A growing number of women are looking at achieving financial independence. From owning gold to investing in fixed deposits, derivatives, and, shares, women have now ventured into different types of investment. Everybody needs a well-balanced investment portfolio which could be a combination of these options in order to grow. HDFC Bank has just the right tool to empower women financially. Here’s a look at a special product, “Whizz Plan — A plan created for the Women of Today!”
To understand the benefits of Whizz Plan better, let’s break down the different investment options available:
Equity shares:
Investors can buy units of equity shares to own a part of the ownership of the company. You can get returns in the form of profits, stock price appreciation or dividends. You can trade in shares in two ways — intraday and interday (also called delivery-based trading). Intraday trading is when you buy and sell the shares during the same day itself, but interday trading is when you buy shares with the intention of long-term investment. You can invest in shares either directly or through mutual funds.
Derivatives:
A derivative security is one whose value is based on or derived from the value of another asset. Bonds, market indices, stocks, commodities, currencies, and interest rates are the most common types of underlying assets. Derivatives are traded as future contracts, forward contracts, options, or swaps. Forwards and futures are contracts where an asset is bought or sold at a predetermined price for a future date. However, futures are traded on exchanges in a regulated manner, and forwards are unregulated, which may be negotiated between the interested parties. An ‘option’ is a right, but not an obligation, to buy or sell a financial asset at a predetermined price on a specific date, whereas a swap is a contract between two parties to exchange financial instruments.
Fixed Deposit investments:
A Fixed Deposit needs you to invest a large sum of money for a set period of time at a predetermined rate of interest. You will be paid a lump sum plus interest at the end of the term. Banks and non-banking financial companies (NBFC) both offer this service at various applicable interest rates.
Bonds:
A bond is a loan made to the bond issuer by the bond purchaser, or bondholder. A bond, like a loan, pays interest on a regular basis and repays the principal at the maturity date. You can invest in bonds by directly buying bonds from the issuer or you have an option to invest in them through mutual funds. Investment bonds offer more tax benefits than FDs, despite the fact that FD interest rates are higher.
An ideal combination of these different investment tools helps in building a suitable portfolio. At HDFC Securities, you get to invest in all the different instruments via the Whizz Investment Plan. The plan is specially made for resident women customers. There are many Whizz Plan benefits:
Zero brokerage applied on equity intraday transactions for 3 months
Zero brokerage for the period of 3 months or ₹5 lakh delivery volume, whichever is earlier
Zero interest on the payment of derivatives margin (against collateral)
Zero tension about research support required for making informed decisions
Zero cost on same day payout of up to ₹5 lakh
With the benefits in pocket, however, keep in mind a few other points about the scheme. Wherever free volume / zero brokerage on ETF conditions apply, a brokerage fee of ₹0.01 will be charged per order/trade. Once the free volume has been used up or the validity period has passed, the discounted brokerage rate will apply. However, at the end of scheme validity, standard brokerage rate will stand applicable on the transactions.
As a woman, you can “whizz” away your financial worries by taking up the Whizz Value Plan that will ensure financial freedom that too with no paperwork, no account opening charges and zero stress, simply with a Demat Account. Just visit HDFC Bank website and take your first step towards empowering your investment goals !
Click here to open your Demat Account now!
Read more here about the Flashh Scheme for the Youth of India.
*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in securities market are subject to market risks, read all the related documents carefully before investing.