What is Recency Bias? And How to overcome it? cover

What is Recency Bias? And How to overcome it?

Recency bias is a psychological phenomenon where a person can remember something which has happened to them recently compared to the thing that has happened to them a while back.

For example, to conduct a test to check this phenomenon, a person is asked to recall the name of the thirty people that they have met. Well, out of the thirty people, the person will easily tend to remember the names of the people that they have met recently compared to the ones that they have reached a long time back.

Recency bias is the main type of cognitive error that happens to the human brain. It is one of the errors which plagues a lot of traders and investors. It tends the human mind to remember the recent data that are happening in their lives and forget the ones that have happened a long while. With the help of this article, you will understand what causes this problem and how well you can overcome the problem of recency bias in your life if it is affecting you on the financial scale as well.

Why it is your enemy as an investor?

Recency bias is the description which tends to extrapolate the recent experiences that will happen to you in the future. When it comes to investing, recency bias is one of the biggest disasters that they can face. Because when investors try to invest, the recency bias skews the entire reality in front of them, and this is how their views can change from choosing something to selecting another thing.

For example, let’s say that an investor has been making a good average annual return in the last 5 years. However, in the last twelve months, his portfolio is not giving good returns. Here, because of recency bias, he might feel negative and may believe that the market and his strategies are not working in his favor anymore. However, this is not the complete reality.

Recency Bias example trade brains

Similarly, for a trader, let say that out of seven days, he made losses in the first four. Nonetheless, in the last three days, he made consecutive wins. Here, he may feel positive as he might be carrying more weight to his recent trades over the past ones because of the recency bias.

Moreover, many times, investors may tend to stay away from shares thinking that the stock market will fall because it has been falling recently. That is not the case which happens every time as the share market is not always the same. You can never put your trust in it based on recent behaviors.

How to overcome the recency bias?

If the recency bias is becoming a day to day problem then there are proven ways to overcome it. Here are some of them presented below.

— Don’t ever have a myopic view.

Get a grasp on the long term source and try to invest in the market that way. A myopic view means that you are constricting yourself to the four walls of the market, and you don’t want to try something new. You might fall when you are trying to invest somewhere, and there are gut-wrenching actions that might happen as well. But since recency bias helps you to build your views based on the latest outcomes, try to overcome it by thinking about the bigger picture in your life. Just try to expand your opinions as much as you can.

— Always try to work in with what you have in control.

Control all the asset allocation that you have. Try to stay away from the bad investments in your life. Setting realistic expectations is something that can put you down and bring false hopes in your life. Always try to remember the fact that recency bias feeds on the belief that you have in your life. Try to minimize the risks that you have built on your front. Use the thesis and help of the finance operators for your investment business if you have one. They will try to cut them down for you.

— Don’t ever try to get swayed with the latest performance.

As a smart investor, you should not ever try to get swayed with the latest performance or the numbers that are popping up in your life. You always have to understand that something in your life is just a temporary digit. Just like the numbers that you are making in the market to the points that you have scored, not always they will stay the same. So raising your expectation based on the higher numbers is a silly movie, and here is where recency bias plays a part in your life.

Also read: 5 Psychology Traps that Investors Need to Avoid

Recency bias is a brain illusion

Always try to understand that cyclicality comes with a lot of terrains. There is not a smooth road that you can take to success. If you are trying to get the best thing in your life then there are a lot of ups and downs that you have to face. But you should never determine the outcome or the results based on recency bias.

Recency bias is a brain illusion that happens when you see the latest issues. It is your very brain tricking you into thinking that the same will happen for a couple of other days, as well. Find appropriate assistance if you are finding it hard to let go. There is always assistance if you are trying to look for one.

1o best Mutual Fund books of all time

10 Best Mutual Fund Books Of All Time!

10 Best Mutual Fund Books Of All Time: Hello readers! Anyone not living under a rock most definitely has overheard a lot about Mutual Funds. All thanks to the frequent advertisements which pop up in between our television programs “Mutual Funds Sahi hai” with a quick disclaimer for two seconds. The most interesting fact is that with the advent of technology, they have even started appearing on social media platforms as sponsored posts.

In this era where financial awareness is growing in leaps and bounds, almost everybody is jumping into the bandwagon of investing in mutual funds to grow their money over time. Gone are the days when people used to park their money in savings accounts and would avoid the avenue of investment in the stock market.

What are Mutual Funds?

A mutual fund is nothing but a type of financial instrument consisting of a pool of funds accumulated from various investors to infuse in securities like equities, money market, bonds, and other financial assets. Mutual Funds are run by qualified fund managers who distribute the fund’s assets and strive to harvest capital gains on investments by the investors. A mutual fund’s portfolio is designed and maintained to match up to the aims of the investment as stated in the prospectus.

However, it is quite important for any individual or a firm to have an in-depth judgment about the global financial markets and its structure before investing in Mutual Funds. Risk is a part and parcel of  Mutual Funds because they are absolutely dependent on market conditions. Thus, everyone should be extra careful while staking their hard-earned money in it. Most of us are clumsy & lack sound knowledge when it comes to the assessment of risk before investing in the Mutual Funds. One needs to take a stern decision on the basis of their goals, time horizon & risk-bearing ability.

Well, does all these sound like a big deal? Undoubtedly, it is but don’t worry! We are here to enlighten you and fathom into the world of investments.

The first and foremost step in which you should partake in this regard is to concentrate on increasing your knowledge bank about the fundamentals of investing in Mutual Funds. As books are considered to be the best tool to enhance knowledge, we have compiled a list of 10 best mutual fund books in the forthcoming sections to help you in your investment journey.  Stay glued!

10 Best Mutual Fund Books Of All Time

1. Common Sense of Mutual Funds 

common sense on mutual funds

Author: John C. Bogle

Common Sense On Mutual Funds is considered to be a trustworthy and an ideal book for both the beginners and seasoned investors who are keen on digging deeper about Mutual Funds. The author who wrote the book was the creator of the world’s first index fund. It has received the highest of laurels in the investment community and continues to be a bestseller.

Key Highlights of the book:

  1. This book determines the mechanism of mutual fund investments in the swirling market conditions and provides a timeless piece of advice in reference to knitting a greatly diversified investment portfolio.
  2. The book has extensive explanations about the elemental structure of investments that are applicable to different market cycles.
  3. The common sense of mutual funds book discusses the regulatory and structural alterations across the global mutual fund’s industry in a lucid manner.
  4. The author has put the Index Funds under the limelight and has also highlighted the significance of adopting a long term strategy.
  5. The writing style is simple with a effective display of common sense and transparency.

2. Mutual Fund For Dummies

mutual fund for dummies by eric tyson

Author: Eric Tyson

Mutual Fund For Dummies helps any novice investors to scout through the various implications of Mutual Fund investment. The book was released in the year 1998 and is seen as a timeless asset for planning and implementing a successful investment strategy.

Key Highlights of the book:

  1. This book guides through regarding the identification of the efficiently managed funds to match your financial goals.
  2. It discusses the latest investment techniques that heighten your chances of success and prevents you from drowning into vicious investment traps along with illustrations about Sample Fund Portfolios.
  3. Mutual fund for dummies book also provides informative cues to maintain and assemble an investment portfolio while analyzing a fund’s performance at the same time.
  4. It grooms the readers and push up their confidence to strategically invest in the Mutual Funds and consequently earn sustainable long-term profits.
  5. The book has elaborated chapters based on Exchange-Traded Securities and Tax Laws impacting the fund investments.

3. Bogle on Mutual Funds

bogle on mutual funds

Author: John C. Bogle

Bogle on Mutual Funds is another magnum opus that has redefined our outlook towards finance and investments. This masterpiece is brilliantly crafted to make an addition to the existing concepts about investing in Mutual Funds.

Key Highlights of the book:

  1. This book has chapters that are completely dedicated to Passively Managed Funds and how they can reap higher returns.
  2. It points out the difference between different spectrums like stocks, bonds, money market, and balanced funds. Drawbacks regarding placing weighted bets on individual securities, sectors and the economy are also highlighted.
  3. As you dig deeper, the book evaluates the correlation between risks and returns on investments across mutual funds.
  4. The book has portions covering how low cost has a more reliable investment structure and techniques for choosing among the four fundamental types of fund funds.
  5. It also highlights the possible reasons for below-average performances of different funds and the common mistakes committed by investors. The author provides well-structured guidance on the importance of perseverance and persistence in the course of the creation of wealth ie. Via Mutual Funds.
  6. In addition, Bogle on Mutual Funds book also includes parameters for pinpointing misleading advertisements and to look for the hidden truth.

4. The Mutual Funds Book

the mutual funds book by alon northcott

Author: Alan Northcott

The author of the book has punched in some unique concepts with a major concentration on investment advice and Mutual Fund theorems.

Key Highlights of the book:

  1. The book has a detailed explanation of the pros and cons of investing in Mutual Funds and how to generate profits through investments based on the  “Minimal Risk And Maximized Returns” idea.
  2. In this book, you can read the comparison and evaluation of the risk associated with mutual funds investment against other types of financial investments along with avenues to compare various funds on an after-tax basis.
  3. Alan Northcott has also covered approaches to figure out the perfect time to sell any security and to liquidate the money invested in funds in his book.
  4. There are separate sections on easy strategies for allocating the assets across various classes of stocks such as small-cap, micro-cap, mid-cap, and large-cap companies.
  5. The book also explains disclosure of the important definitions like ratings, net asset value, share classes, plans and etc associated with the investing procedure along with the inclusion of a background of the economic history of mutual funds including their scandals.

5. Morningstar Guide to Mutual Funds

morning star guide to mutual funds

Author: Christine Benz

The Morningstar Guide to Mutual Funds by Christine Benz helps to emerge out of the dense mist with a well-defined volume of productive information. It’s a no-nonsense guidebook that should be found in every investor’s cupboard.

Key Highlights of the book:

  1. The book covers the importance of bond funds, index funds, and exchange-traded funds in a portfolio.
  2. You can find a clear explanation of crucial terms like expense ratios, fund charges and loads which are neglected in general.
  3. The author has covered the estimation of a fund’s risks and how to invest in active funds, and improve the odds of your success? Alongside this, the book also explains an analysis of the quality of a fund’s manager, and consecutive steps to be undertaken regarding any alteration.
  4. A few of the crucial sections on this book cover the pros and cons of concentrated and diversified funds, red alerts against chasing high returns in a sector and assessment of quarterly and annual reviews for keeping the portfolio on the right track.
  5. Christine Benz also explains the strategy of investing in underperforming sectors and riding on their waves during a revival.
  6. Finally, there’s also a section on the importance of rebalancing the portfolio periodically and creating an articulate temperament for standing strong during volatility.

6. The Mutual Fund Industry Handbook

the mutual fund industry by Lee Gremillion

Author: Lee Gremillion

The Mutual Fund Industry Handbook by Lee Gremillion has a noticeable and systematic series of data and knowledge. Such volumes of information will assist anyone with a keen interest in this industry. The book was originally published in 2005.

Key Highlights of the book:

  1. This book covers the interpretation of various functions executed in the day-to-day operations of the Mutual Fund industry including front-office functions, back-office functions, buying and selling process, settlement, custody, accounting, and reporting.
  2. A few of the clears pivotal concepts explained in the book are regulatory protection, liquidity, diversification & professional management.
  3. The author also describes the roles being played by transfer agents, distributors, custodial banks, investment advisors, fund managers, and several other external service providers.

Also read: 7 Best Value Investing Books That You Cannot Afford to Miss.

7. Mutual Funds for Wealth Building

mutual funds for wealth building

Author: John Mcquilkin

The book is solely for beginners and amateurs who have newly become aware of the financial markets. Mutual funds for wealth building by John Mcquilkin presents an exhaustive analysis regarding investing in mutual funds right from scratch.

Key Highlights of the book:

  1. The book covers the definition and introduction of Mutual Fund, benefits and Limitations of Mutual Funds, different types of funds along with hidden costs of a Mutual Fund.
  2. The author also covers detailed investing strategies for Mutual Fund to discover how to create wealth with Mutual Funds to upgrade the standard of living and fulfill goals.
  3. The best part is an explanation in layman’s language with an utmost easy format.

8. Beating the Street

beating the street by peter lynch

Author: Peter Lynch

First of all, let me give you an introduction to Peter Lynch, the author of this book if you already do not know him already.

Peter Lynch is an American Investor and a former fund manager.  He was the manager of the Magellan fund at Fidelity Investments between 1977 and 1990. During this period, Lynch averaged a 29.2% annual return on the investments. This return was consistently double than the market index and during this period of 13 years, the asset under the management which was originally $18 million in 1977 increased to $14 billion. He is one of the rare fund managers who gave a fairly good return to their investors for thirteen long years in a row.

The exclusivity of the “BEATING THE STREET” is that it imparts teachings to develop a winning investment strategy and provides advice regarding the agglomeration of a rewarding investment portfolio.

Key Highlights of the book:

  1. In this book, Peter Lynch explains the “Invest In What You Know” strategy for both the big and small investors.
  2. He covers lucrative suggestions about architecting a profitable investment portfolio, based on your own experience,  insights and do-it-yourself research. He also covers the operative methods of fund managers belonging to large fund houses.
  3. The author reasons why a bear cycle is a fantastic opportunity to haul up stocks at a rock bottom price left behind by panic-stricken investors and advantages of markets in faster-growing economies (EG: INDIA).
  4. Peter Lynch explains why over a long-time period, a portfolio of well-chosen equity mutual funds will always surpass the returns of a portfolio consisting of bonds and money market funds.
  5. Besides, Peter Lynch’s “20 Golden Rules” are a part of this book as well.

9. Ladder to Wealth Creation

ladder to wealth creation by vivek k negi

Author: Vivek K Negi

Financial freedom is the penultimate agenda for everyone during a lifetime. The aim cannot be achieved only by saving one’s money. The idle funds lying in the bank account must be put to use for compounding wealth. It’s a procedure of strategic planning and investment from a tender age. Hence, this book comes to our rescue and explains all the minute catches and tricks.

Key Highlights of the book:

  1. The book explains what are Systematic Investments Plans (SIPs) and how initiating SIPs from a young age generates huge corpus in the long run via the method of compound interest.
  2. The author covers the advantages of investing in meager amounts at regular intervals over a long period of time in different asset classes.

Also read: 3 Amazing Books to Read for a Successful Investing Mindset.

10. How to make a fortune through Mutual Funds: Hunt with the hounds

how to make a fortune through mutual funds ashu dutt

Author: Ashu Dutt

If you are keenly looking forward to investing in mutual funds and your foremost objective is to yield high returns, this book is a must-have for you! How to make a fortune through mutual funds by Ashu Dutt breaks some acclaimed myths surrounding the concept of Mutual Funds and has been written by one of Asia’s leading investment managers.

Key Highlights of the book:

  1. The language of the book is clean and can be effortlessly grasped by the beginners.
  2. The book covers the achievement of extraordinary returns from Mutual Funds by investing in the actively managed funds.
  3. Author Ashu Dutt does explain how mutual Funds singles out the elements of emotions in due course of the investment and advocates the strategy of investing at points of maximum pessimism and exiting during euphoria.
  4. The book has separate sections on Open-Ended versus Close Ended Funds, Investing in Cycles, Trends, and Rallies etc.
  5. In the book, you can find a detailed analysis of different funds like Active Equity Funds, Index Funds, ETFs, Income Funds, Gilt Funds, Commodity Funds, and Real Estate Funds.
  6. The author has also included the topic of how to pick the correct funds during various market cycles along with how to time your entries and exits in Mutual Funds. Overall, he has shared his hushed secrets of profitability.


It is quite important for any individual or a firm to have an in-depth judgment about the global financial markets and its structure before investing in Mutual Funds. The first and foremost step in which you should partake in this regard is to concentrate on increasing your knowledge bank about the fundamentals of investing in Mutual Funds.

As Books are considered to be the best tools to enhance knowledge, in this article, we covered the 10 Best Mutual Fund books of all time. In case we missed any best mutual fund books that you believe should be covered in this list, feel free to comment below. Also mention which one is your favorite mutual fund book. Cheers!

Are you ready for ‘Muhurat Trading’ this Diwali?

Muhurat Trading 2019: First of all, a very happy and prosperous Diwali to you and your family in advance. May this Diwali and the upcoming new years fulfills all the wishes that you wished for. Have a blast!

You might be ready for the Diwali- cleaned your house; bought diyas, candles, sweets & crackers, etc. But are you ready for trading this Diwali?

Don’t be confused. Yes, the stock market will remain closed on Diwali, i.e. 27th October 2019, during the normal stock market trading timings. However, stock exchanges will open for an hour in the evening for trading. This period of trading called ‘Muhurat Trading’ and this tradition has been followed in India since 1979.

As this trading is conducted on the day of Diwali, Muhurat Trading is considered auspicious and any trades conducted in these sixty minutes are believed to bring good fortune and prosperity. Moreover, this mahurat trading period is considered propitious for the upcoming year.

BSE and NSE will organize Muhurat Trading session between 6.15 PM and 7.15 PM. The pre-opening session will be held between 6:00 Pm to 6.08 Pm. Hence a normal trading will be conducted between these 60 minutes.

Pre-Open Session 6:00 to 6:08 PM
Muhurat Trading Session 6:15 to 7:15 PM
Duration 1 Hour

*Note: All trades executed in this Diwali Muhurat trading session would result in settlement obligations

Further, the exchanges will remain closed on October 28 on the occasion of Diwali Balipratipada.

Why Muhurat Trading?

Muhurat trading refers to the trading done on this auspicious day of Diwali. According to Indian tradition, Diwali marks the starting of the new year, and the trading done on this day is considered to bring prosperity and wealth throughout the year.

Further, it’s a very promising time to plan your investment for the upcoming year with your advisors/brokers to achieve your financial goals.

diwali sensex

Here are a few quick links to read more:

Once again, a very happy Diwali. And HAPPY INVESTING.

What is Corporate Governance? Principles, Examples & More

What is Corporate Governance? Principles, Examples & More

Hello readers! Today we are back with another intriguing topic from the core world of finance – Corporate Governance! Put your reading glasses on and stay glued!

In this era of globalization where information is just a tap away, we all are pretty much familiar with the names of top-notch companies like Coca-Cola, Starbucks, Asian Paints, ITC, Unilever, and etcetera! Over the years, they have continued to grow in manifolds in spite of the emergence of various substitutes. Have you ever wondered what could be the secrets behind the success and sustainability of these companies apart from their brand value and consistent sales? Well, let’s dive in without further delay!

In order to flag off the session on a lighter note, we will put forward an example on a micro-level.

In schools and colleges, the fests are held annually with pomp and glory! The responsibilities and tasks are carried out in a chained way. Preparations begin prior to one to two months and require proper governance!  The absence of a good governing committee would have led them to a path of big failure. Similarly, every company require sound corporate governance to grow and augment in the long run.

What is Corporate Governance?

Corporate Governance is the procedure by means of which a  corporation guidelines itself. In a nutshell, it is a process of administering a company like a monarchial state which installs its own customs, laws, and policies from the highest to the lowest levels.

In financial terms, Corporate Governance is the collaboration of well -defined rules, processes and laws by which functions and regulations of business take place. Most companies leave no stone unturned to achieve a high degree of corporate governance. It is the responsibility of the board of directors to build a  framework for corporate governance that syncs with the objectives and mission of the business.

In the last decade, corporate governance has gained immense and serious attention because of high-profile scams and criminal activity by corporate officers in power. Poor corporate governance can have an adverse effect on a company’s financial health and level of trustworthiness.

The structure and frame of the Corporate Governance comprise of the Board Of Directors, Management and Shareholders! Let us first understand each of their key roles in-depth.

The Structure of Corporate Governance

— Board of Directors

The Board Of Directors plays a pivotal character in commanding the company’s management and business blueprints to accomplish long-term value creation. The most important functions of the board are:

  • Determine the company’s vision and mission to guide and set the pace for its current operations and future development.
  • Monitoring/examining the CEO’s performance and overseeing the procedure regarding CEO succession.
  • Understand and take into account the interests of shareholders and relevant stakeholders.
  • Avoiding conflicts of Interest

— Management:

Chief Executive Officer (CEO) leads the management of the company. Important aspects like strategic planning, risk alleviation, and financial reporting falls under the umbrella of the management. An efficient team of management escorts the company with the determination of achieving the business strategies over a considerable time horizon and avoids focusing on short-term metrics.

— Shareholders:

Shareholders invest in a public company by purchasing its stock from the exchange via brokers and earn capital gains with a rise in the price of the stocks. However,  Shareholders are not embroiled in the day-to-day management of business affairs but enjoy the right to elect representatives i.e. Directors. They also receive a Quarterly/Annual Report which consists of information regarding investments and voting decisions.

Competent Corporate Governance needs crystal clear generosity and interaction between Board Of Directors, Management and Shareholders in accelerating a company’s performance. Efficient corporate governance shapes up a transparent bunch of rules and regulations in which directors, management and shareholders have aligned ambitions. The framework allows the board of directors to affirm fairness, accountability, and transparency in a company’s relationship with all stakeholders (management, financiers, customers employees, government, and the community).

Also read: What is a BCG Matrix? Explanation with Example!

Principles of Corporate Governance 

A company that follows the hardcore core fundamentals of good corporate governance will generally surpass other companies in terms of financial advancement. The core principles of sound corporate governance include Fairness, Accountability, Responsibility & Transparency. Let us discuss all these principles one by one.

corporate governance pillars

— Fairness

Fairness touches on the points of uniform and equal treatment of all the shareholders in reference to receival of considerations regarding shareholdings. The fairer the company appears to stakeholders, the more likely it is that it can endure in the league.

— Accountability

Corporate accountability is an act of responsibility and obligation to provide an explanation for the company’s actions and activities. Corporate Accountability includes the  followings:

  • Presentation of a balanced and simple analysis of the company’s orientation and prospects.
  • Responsibility for determining the character and extent of the adopted risks by the company.
  • Maintenance of  adequate risk management and internal control structure.
  • Setting up formal and unclouded arrangements for corporate reports and a suitable relationship with the company’s auditor.
  • Proper communication with shareholders regarding diversification, progress and financial reports at frequent

— Responsibility:

The CEO and Board of Directors are accountable to the shareholders on behalf of the company regarding the execution of responsibilities. Thus, they should exercise their authority with full responsibility. The Board of Directors is responsible for conducting the management of the business, appointing the suitable CEO, overseeing the affairs of the company and keeping an eye on the performance of the company.

— Transparency:

Transparency means a company should reveal an informative piece of data about their activities to shareholders and other stakeholders. It also includes the open-mindedness and willingness to divulge financial figures which are genuine and correct in reality. The unveiling of reports regarding the organization’s accomplishments and activities should be on time and strive for accuracy. Such steps ensure the investors’  access to transparent and factual data which finely mirrors the financial, environmental and social position of the organization.

Benefits of Corporate Governance

Here are a few of the major benefits of having good corporate governance in a company:

— A good corporate governance practice gives rise to a strict compliance culture. It is advantageous in multiple ways and is directly related to improved performances. Due to the existence of such a strict environment, all the members are bound to adhere to the work culture, establish proper lines of communication with the rest of the organization and are promptly responsive to any evidence when there is any signal of non-compliance.

— Marvelous Corporate Governance has instant access to information and excellent communication. Rapid access to information and good communication among the members of a company leads to the formulation of robust strategies. Such strategies include efficient allocation of resources, leveraging technology and etcetera.

— Good Corporate Governance can lift up a company’s influence and reputation. Strong schemes like strict fiscal policies and internal controls help to gain trust and reliability among stakeholders.  Such genuine practices also help the company to borrow funds at a lower rate than those with weak corporate governance because lenders will be able to have faith in an organization that is seen to be stable, reliable and able to mitigate potential risks In today’s volatile environment.

— Increasing cognizance and consensus about the importance of good corporate governance among investors results in more number of investments in companies that have a prosperous track record. It also shields investors from possible scandals and aids to raise capital efficiently by gaining investors’ confidence. Thus, there is a positive influence on the share price and helps in brand formation and development.

— In this age of globalization and liberalization, there is a positive correlation between an excellent Corporate Governance and inflow of Foreign Investment. According to statistics, studies imply that Foreign Institutional Investors (FII) take notice of well- managed companies and respond positively by infusing capital for investment in the capital market. In order to reap the full benefits of the global capital markets and attract long-term capital, it is extremely important to implement basic principles of good corporate governance which can be well understood across borders. The huge influx  of foreign investment will immensely  churn up the economic growth and will prove to be a priceless step in enabling the organization to stand against tough economic storms and back a company’s

— Demonstration of good corporate governance also enables corporate social responsibilities like environmental awareness, health, education, sanitation, and other social aspects.

— At times, good corporate governance can help ensure that officials of a company do not take unwarranted advantage at the expense of their shareholders. For example- of Insider Trading.

Insider Trading refers to trading inequities of a company by internal members (directors, managers,em­ployees) of the company based on the sensitive information which is unknown to outsiders. It is a scandalous activity that is committed by the officials of the company and is critically connected to the arenas of Corporate Governance. The wisest way of handling this problem is by pushing the companies to imbibe self- regulation and adopting preventive measures. Such prophylactic action sends off a signal regarding the exercise of self-regulatory practices and assurance of safety to invest in the company’s securities. Hence, Good corporate governance also reduces corruption.

— Good corporate governance also provides the elasticity to apply customized practices that fits the companies’ requirements and to alter those practices in light of ever-changing conditions, benchmarks, and standards.

Examples of Corporate Governance

Now, after the elongated discussion and explanation, let us understand the concept with two examples!


(Industry – Private Banking and Financial Services)

HDFC Bank identifies the significance of good corporate governance, which takes care of the long-term interests of shareowners and helps to win the public trust in the Company. Therefore, the Corporate Governance scheme is introduced to proffer a course and structure for managing and regulating the bank in accordance with the principles of superlative corporate governance policies.

HDFC  Bank was amongst the first four companies which earned a Corporate Governance and Value Creation (GVC) rating by The Credit Rating Information Services of India Limited (CRISIL). The bank has been successful in achieving a ‘CRISIL GVC Level 1’ rating for the last two consecutive years. This symbolizes that the bank has the potential to create wealth for all its stakeholders while preaching the highest degree of corporate governance practices. The Bank truly believes in transparent disclosures and the empowerment of shareholders for weaving value.

The chart shows the past 17 years of data from the year 2000. Going by the chart,  HDFC bank has generated huge wealth over the years and is known for its laurel worthy Corporate Governance.

hdfc bank share price

On the contrary, in recent times, there are several specimens that have grabbed headlines regarding massive failures of corporate governance. One such is the Punjab National Bank ( PNB) Scandal.

— Punjab National Bank (PNB)

(Industry: Public Sector Bank)

Punjab National Bank (PNB) scam was put up across all news channels for a scam size of size 12,000 crores. The fact that the main accused i.e.  Nirav Modi was able to siphon off funds without being suspected by investigating committees or, the income tax department points out to the mammoth loopholes in the governance. The existence of proper corporate governance in  Punjab National Bank (PNB) could have singled out the large scale scandal of this level.

PNB Share price

In the chart, it is clearly evident how te share prices started falling just prior to the announcement of the scam and went on a downhill journey since then.

Also read: 3 Past Biggest Scams That Shook Indian Stock Market


Let us quickly summarize what we discussed in this article. Corporate Governance is the procedure by means of which a corporation guidelines itself. In a nutshell, it is a process of administering a company like a monarchial state which installs its own customs, laws, and policies from the highest to the lowest levels.

In financial terms, Corporate Governance is the collaboration of well -defined rules, processes and laws by which functions and regulations of business take place. Most companies leave no stone unturned to achieve a high degree of corporate governance. The structure and frame of the Corporate Governance comprise of the Board Of Directors, Management and Shareholders!

A company that follows the hardcore core fundamentals of good corporate governance will generally surpass other companies in terms of financial  The core principles of sound corporate governance include Fairness, Accountability Responsibility, and Transparency. There is a multitude of benefits arising out of good governance which helps a company to ride on the waves of growth.

How Do Credit Card Companies Make Money

How Do Credit Card Companies Make Money?

There is a reason why credit card companies are always looking for their next best client. When people start using their service more, they can make more money based on the usage that is served to you from their side. There are around issuers who advance over millions of purchases made by their customers. And the return can come in billions to the credit card companies.

Credit card companies in India

Recently for the new age foray of digital India, the bank is always looking and scoping out credit cards for their users for the best of interest for their end. When it comes to India, there are mostly banks that issue the credit card to the people. So when it comes to publishing your new credit card, then the bank will be making money. From the bird’s eye point of view, it is like a charitable business here.

This means that when you are asking for a credit card, then the bank will issue the same for you. These credit cards are released from the source of the third parties which are offered to these banks. When it comes to issuing credit cards for the customers, then the bank issues it for the people and provides a credit for it. Then after the same, the customer has to pay the bill for the usage of the card.

Now, when it comes to making money, then the only major fees that the bank gets are by the interest, which is levied on the outstanding amount which is ready to repay. In case of delay of payment through your credit card, the bank will charge a collected rate of interest onto the same.

Anyways, there are also other sources through which the banks and credit card companies make money with the usage of these credit cards that are issued to your name. This will be later discussed with the help of this article.

How Do Credit Card Companies Make Money?

Here are how the credit card companies make more money and earn profit as well with the use of their business.


When it comes to the age of the digital period, then do you know who makes money these days? Anyone who can help your brand or company extend its reach. In this digital world, it becomes difficult for the common man to continue the source of his business, and this is why brand or marketing tie-ups are essential. For example, a lot of brands are spending more on their digital marketing because they need a better reach of the audience from all around. It can help them to gather the clients for their said work.

The credit card companies have direct access to the whole of the customer base, and it can influence the spending as well. Therefore what these credit card companies do is that they help for both types of brand promotion and the generation of sales. To reach new customers, it is a useful tool here. Plus, they get paid for the brand promotion that they are making from here.


For example, let’s take a look at the leading banks here.

As per the RBI data here, HDFC banks have issued around 12 million credit cards, followed by the SBI bank, which has issued around 8.7 million cards. Then comes the banks like ICICI Bank, the Axis Bank, etc. So when it comes to coming or gathering customers from all around, then HDFC Bank, SBI and ICICI bank has direct control over the same and over a crore of customers who have issued their credit cards.

So if the banks are paying around lakhs for winning over the customers with the help of their brand promotion, then they are getting the doubles in return through here. Brands are always ended up in marketing tie-ups with the credit card companies so that they can get cash backs on their set. On the other hand, there are two types of tie-ups that can be tried here. One is the low value, and the other ones are the high value. Plus, there are interest charges levied onto the same too.

Interest gathered onto the balance which is outstanding

It is a universal fact that credit card companies can make money based on the benefits which are charged on your balance amount. Among all form of credit facilities, the interest rate which is loaded onto your card is the highest, and they are even higher than the private lending that you have.

This means that when we are talking about the higher amounts, then we are speaking as high as 40-42% interest, which is charged annually and which is about 3-3.5 %, which is billed monthly here.

Credit Card Interest Rates in India Bankbazaar

(Image Credits: PaisaBazaar)

According to the facts and the stats which are provided by the credit card companies, around 60% of the people or the credit card holders do not pay their levied amount right on time, and this is when the interests on their credit can be charged to them. These customers are the primary source of income for these credit card companies out there.

The amount which is not paid by the customers is always termed to the absolute figure. This means that when we are talking about 60%, this does not mean that 60 people out of every 100 are not able to pay their amount. This means that some even have a higher outstanding than the other, and; this is where their interest is levied.

Also read: 10 Best Credit Cards in India [With Exceptional Benefits]

Cash advance charges also generate payment

Here is another way through which the credit card companies can charge in the amount and get the income for their source. Usually, the cash limit for the credit facility is around 20-40%. This cash limit comes handy in case of the emergency which can be met during the time of shortage of cash, etc.

So if you take an advance payment from the bank, then the bank will charge an interest rate of about the same from you on the amount that they are granting you. This is one of the costliest ways and one of the most prime ways through which credit card companies can make cash.

Merchant Fees

Another way from where a credit card makes money is merchant fees. Whenever the credit card user makes any payment using their credit card, the entire amount does not go to the retailer. The credit card companies charge a small fee as the percentage of the purchase amount for providing safe and secure payment transactions.

This charge is known as a merchant fee or swipe fee. This merchant fee can be anywhere between 1.5-2% of the transaction value and hence serves as a huge revenue source for the banks.

Although, the credit card user doesn’t have to pay any additional fee, however, the credit card companies take a portion of the profit from the merchants. Therefore, the merchant fee only affects the merchants. Anyways, some merchants may use a ‘credit card surcharge‘ in addition to the cost of products/services that they are selling in order to off-set the merchant fee.  This surcharge is waived if the customer prefers cash or debit card payment as the fees on the debit card is comparatively lower for merchants.

Annual and renewal fees

Now comes to the other charges which come with your credit card. When you are issuing credit cards from the bank, then there is an annual fee that you have to pay. And also, for the renewal fee, which means that you have renewed your credit card after it has been extended to a valid period.

These charges may be waived off by the banks if you’re an active spender and cross their pre-specified annual expenditure through credit cards. Anyway, these charges are usually given out through the customer whose value of spending is meager.

In other words, credit card companies will charge you a fee which you eventually have to pay on the annual or during the time of the renewal as well.

Also read: The Pros and Cons of Credit Cards in India

Closing Thoughts

As discussed in this article, you have found out that the credit card companies do have a lot of sources for their salary here. The credit card companies make money by charging interests on the customer’s delayed payment, merchant fees, networking and marketing with branks, annual and renewal fees, etc.

So if you don’t want to levy the heavy-duty and the charges for your late payment, make sure of the financial tracking that is happening with the help of your card. Take notes and understand your credit billing cycle as well so that you can figure out when to pay your fees and to keep the minimum as well.

image for Maslow’s Hierarchy of Needs

Maslow’s Hierarchy of Needs – Debunking the Whole Theory

So let us begin from the start about what is the theory behind the Maslow’s Hierarchy of Needs. As we all know, Human behavior is complex. And, to understand the basic of it, you need to dive into the deep level of science. Well, human behavior is the combination of both science and art, so here is an essential prime factor and explanation of it.

In the layman or the economic term, human behavior is based on wants that we generate towards the same kind or towards materialistic items. For example, if someone sees a dress at a store and it is pretty then their instant thought is to buy that dress. This type of human behavior is categorized into a section of wants.  

Maslow said and proved that human behavior is a series of complex happenings in the mind of an ordinary human being due to motivation. The main factor or the module of this explanation lies in the motivational factor, which rules human behavior.

A close look at Maslow’s Hierarchy of Needs

Maslow first introduced his needs theory in the year of 1943. This was published in a journal back then because people then never had smartphones or tablets. The weekly or the writing was published under the name of ‘Human Motivation and its Theory,’ and he even wrote a book about the same. This Maslow’s Hierarchy of Needs suggests that there are specific needs that arise in humans, and they can be categorized in the form of a pyramid.

The topmost of the pyramid is the one that comes at a high level. And the last part is the one which humans need the most or which cannot be delayed. While some of the people criticized his working theory on the needs of the human mind, he suggested that the cycle of life happens with the hierarchy which he has produced in his book.

Maslow did tell that he was always interested to know what made people feel happy, secured, anger, and this, in turn, raises the level of needs inside their mind. With all due respect, we know that the human brain is complicated and debunking it can be hard work but if we categorize ours wants to different sections that we have then it is going to be easy work for us.

As a humanist Maslow believed the same. He wanted to know what the self-desire that people wanted or which could also be counted as the self-actualization needs, which comes at the very top.

There are five different levels of the Maslow’s Hierarchy of Needs. The first starts with the self-actualization needs then it shifts down to the esteem needs. Then it goes down again to the belonging needs, then to the safety needs and later to the psychological one.

From the basic level to the complex one

Maslow's Hierarchy of Needs - Debunking the Whole Theory

When you understand Maslow’s Hierarchy of Needs, you have to realize that there are two types of needs that a human can have.

One is the basic needs like the need for safety and shelter. Or to have food when they wake up in the morning. And the next one is the complex where a human needs to understand his self-esteem. The self-actualization means that a human has to follow his full capacity so that they can only reach the top of their life. So it is sorted.

When it comes to the wanting of needs, then humans go for the basic at first and then they choose to select onto the complex at later.  

The pyramid, which is present for Maslow’s Hierarchy of Needs refers to the needs and what they relate to the mind of a human being. When a person progresses and has the safety or the necessities that they want, they move to the need of being loved. This comes in the middle where they rise, and this is where their self-esteem needs grow. This is when someone tries to question their behavior and attitude toward something. The topmost level of the pyramid consists of the actualization needs or the standard. This is where a human needs to understand his boundary and his limits to what he/she can achieve in their lifetime.

Breaking down the Pyramid

Here is how the requirements are broken down, which are present at the pyramid.

1. Psychological needs

These are the most common or the primary type of requirements that a man/woman can have. These are also known as the apparent needs which you have to get in your life to survive. Some of these needs include having the food to eat, a shelter, or a place to stay, the need to breathe and live. In the essential requirement of these needs, there are nutrition and air which are added here as well.

Maslow also included that the need for sexual reproduction comes to this point. This is because, for our population to grow and move forward, people need to mate with each other. And this is one of the most common or basic needs that they can have.

Also Read : The Butterfly Effect: This Theory Can Change Your Life

2. Safety needs

Coming to the next or the upper level of the pyramid, there lie the safety needs. This means that a human being in order to live should have a minimum safety in their lives. At this level, their need for security and safety becomes quite apparent. People who want to have control over their lives and the things that they are getting needs to have the safety needs issued here.

Some of the necessary safety needs are financial safety, health, and wellness safety and the security needs that they want from injuries and accidents. People need to obtain an excellent job so that they can be financially dependent and stand on their own feet. And they should have a basic safety on how they are living which matters to their well-being as well.

3. Social needs

The third one is called social needs. This means that in order for the average or an ordinary human being to live in society, they need to have a basic social need. These are the things that can satisfy the human mind. This need in Maslow’s Hierarchy of Needs helps a human to understand the meaning of being loved, respected, and accepted socially into a group.

Here are some of the breakdown of the needs. The need of being loved, the lack of having romantic attachments, having a healthy family, a group of friends, being accepted to community groups are everything that lies here in this need. To fight mental disorder such as depression or loneliness, social needs are the part which helps a human being. This is to feel being loved by their opposite sex or by their family members.

4. Self-esteem needs

At the fourth level, which comes for the Maslow’s Hierarchy of Needs, it is the self-esteem needs that are talked here. So what are they? Well, self-esteem is something which is a part of your day to day life. It is the need for being appreciated and have respect for the work that you do. When the requirements which are left at the bottom of the levels are satisfied. This is one need that appears inside your mind.

We, as an ordinary human being, need to be recognized by the others. We have a compelling need where our self-esteem and ego comes, and we identify them. Even though they are not the basic needs, they go and lies in the complicated part here. At this point, after you have complied with the basic needs. And, it becomes increasingly crucial for you to gain respect for the work that you do for others and even for yourself. This is an appreciation or needs that you want from others.

5. Self-actualization needs

The top of the pyramid lies for the self-actualization needs or the need to actualize your wants. At the peak, it lies, and it explains the conditioning of the human brain to attain the kind of desire that they have towards a sure thing.

For example, self-actualization needs mean that you realize what you are capable of. Maslow explained that this need means ‘it is loosely based and describes the full use of the human mind in regards to the talents, potentialities that it might have, etc.

Also Read : 5 Psychology Traps that Investors Need to Avoid


For the summarization of the entire Maslow’s Hierarchy of Needs, here is the essential thing.

  1. The human mind is the complex structure of our life. 
  2. There are two kind of needs which can happen inside our mind called the basic and the complex requirements.
  3. There are five needs that can occur inside us. 
  4. The first is the psychological need or the basic level of need used by people. 
  5. The second lies in safety needs like safety for financial issues and other guarantees. 
  6. The third is the psychological need which uses a human to function on the basis of emotions. 
  7. Esteem needs stand at fourth and that’s where the respect is marked.
  8. The fifth one is called the actualization need or when a person understands his/her entire potential.

The Maslow’s Hierarchy of Needs is a diagrammatic module of how our needs are categorized and based. The higher you move, the complex your need becomes. And mostly Maslow has said that the requirements are based on the income level of the people too. People who have reduced income are more opinionated towards the primary type of the lower level of the pyramid.

And those for the higher section of the society have an opinion for the higher base for the pyramid. There are potent motivators from all around which works for the people to enhance their needs as well.

What is derivative trading

What is Derivative Trading? Futures & Options Explained

Hello readers. One of the most frequently asked questions by Trade Brains’ readers is what is futures and options trading. In this article, we are going to cover this topic and discuss what is derivative trading along with explaining futures and options. Let’s get started.

What are Derivatives?

A derivative is a device whose monetary value is extracted from the value of one or more primary variables called bases. Here, the bases mainly indicate underlying assets, interest rate or indexes. These underlying assets further comprise equity, foreign exchange, commodity, or any other asset.

As the value of these underlying assets keeps fluctuating, these changes in value can help traders to earn profits from derivative trading. The most common types of derivatives are futures, options, forwards and swaps.

This evolution of the market for derivative products like Forwards, Futures, and Options dates back to the compliance of risk hesitant economic advocates to shield themselves against volatilities emerging out of ups and downs in asset prices. In other words, it acts as a hedging apparatus against oscillation in commodity prices.

Post-1970, financial derivatives majorly came under the limelight due to thriving fluctuations in the markets. Ever since they seeped into the picture, these products have gained quite a popularity and have reckoned for about two-thirds of total transactions in derivative products by 1990.

In the class of equity derivatives, Future and Options have acquired more eminence than individual stocks. The trend is especially prominent among institutional investors who are frequent partakers of index-linked derivatives. Financial markets are marked by an escalated amplitude of volatility but with the utilization of derivative products, it is viable to partially or fully shift the price risks by remanding the asset prices.

As equipment of risk management, these generally do not determine the inconstancy in the underlying asset prices. However, by tapping in asset prices, derivative products reduce the influence of fluctuations in asset prices on the profitability and cash flow scenario of risk-afraid investors.

Factors driving the Growth of Derivatives

In the last thirty years, the derivatives market has seen an exemplary advancement. A huge variety of derivative contracts have been introduced at exchanges across the globe. Some of the factors which are surging the cultivation of financial derivatives are:

  1. Elevated synthesis of national financial markets with the global markets.
  2. Considerable development in communication amenities and acute declination in their costs.
  3. Growth of more sophisticated risk management devices, providing economic agents with a variety of choices.

Derivative Products

Derivative contracts have diversified variants. The most basic variants are Forwards, Futures & Options. 

1. Forward Contract :

A forward contract is a customized contract between two individuals, where settlement takes place on a definite date in the future at the current pre-compiled price. Other contract details like delivery date, price, and quantity are negotiated bilaterally by the parties. The forward contracts are generally traded outside the exchanges.

On the expiration date, the contract has to be settled by the delivery of the asset. If the party wishes to counterpole the contract, it has to imperatively go to the same counter-party, which often results in charging higher prices. In certain markets, Forward Contracts have become standardized like in the case of foreign exchanges. Such standardization reduces transaction costs and increases transaction volumes.

For example, let us consider an exporter who expects to receive payment in dollars three months later. He is exposed to the risk of exchange rate fluctuations. Thus, utilizing the currency forward market to sell dollars forward, he can clinch on to a rate today and diminish his uncertainty.

2. Futures Contract:

A futures contract is an alliance between two parties to purchase or sell an asset at a stipulated time in the future at a specific price. Futures contracts are special types of forward contracts that are traded on exchanges. Future Contracts also facilitate the elimination of risk and provide more liquidity to a market participant. The terminology of the Futures Contract consists of Spot Price, Futures Price, Contract Cycle, Expiry Date & Contract Size.

For example, if you buy/sell a crude oil futures contract, you are agreeing to buy/sell a set amount of crude oil at a specific price (the price you place an order at) at some future date. You don’t actually need to take delivery of the crude oil, rather you make or lose money based on whether the contract you bought/sold goes up or down in value relative to where you bought/sold it. You can then close out the trade at any time before it expires to lock in your profit or loss.

3. Options  Contract:

Options are of two types namely, Calls & Puts. Calls give the buyer the authority but not the obligation to purchase a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the authority, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date. Unlike, Futures Contract, the purchase of an Option requires up-front payment. 

Also read: What Drives Stock Returns? (Divergence Analysis)

Participants in the Derivative markets

There are four broad categories of participants namely Hedgers, Speculators, Margin Traders, and Arbitrageurs. Let’s discuss each of them now:

1. Hedgers: Traders who aspire to secure themselves from the risk involved price actions generally participate in the derivatives market. They have been called hedgers because they try to hedge the price of their assets by undertaking an exact opposite trade in the derivatives market. 

2. Speculators: Unlike hedgers, Speculators look for opportunities to take on risk in the hope of making returns. These stark contrast in risk figuration and market views sets apart hedgers from speculators.

3. Margin Traders: Dealing with derivative products doesn’t require payment of the total value of the upfront position. Instead,  depositing only a fraction of the total sum does the work and is known as Margin Trading. Margin Trading results in a high leverage factor in derivative trade because, with a small deposit, one is able to keep a large outstanding position.

4. Arbitrageurs: Derivative instruments are valued on the basis of the underlying asset’s value in the spot market. However, there are times when the price level of stock in the cash market is lower or higher in comparison to its price in the derivatives market. Arbitrageurs tap the opportunities and exploit these blemishes and disorganization to their favor.

Arbitrage trade is a low-risk trade, where a parallel deal in securities is done in one market and a corresponding sale is executed in another market. Such a trade is carried out when the same securities are being quoted at different prices in two different markets.

For example, in the cash market, let us consider the price is quoting at Rs. 1000 per share. On the other hand, it is at Rs. 1010 in the futures market. An arbitrageur would purchase 100 shares at Rs. 1000 in the cash market and sell 100 shares at Rs. 1010 per share in the futures market, thereby making a profit of Rs. 10 per share.

Also read: The Stock Market Cycle: 4 Stages That Every Trader Should Know!

Summary: Derivative Trading

A derivative is a device whose monetary value is extracted from the value of one or more primary variables called bases. Here, the bases mainly indicate underlying assets, interest rate or indexes. Further, the asset can be anything from stocks, commodities, currency to interest rates.

The most common types of derivatives are futures, options, forwards and swaps. In derivative trading, the traders take advantage of the fluctuating value of underlying assets to make profits.

10 Best Credit Cards in India With Exceptional Benefits cover tradebrains

10 Best Credit Cards in India [With Exceptional Benefits]

10 Best Credit Cards in India in 2019 with exceptional benefits (Updated: October 2019)

Credit cards are everywhere. These days, they are used in almost all underlying operations like purchasing items from the store or even for your online sale as well. A credit card helps to shape you a good lifestyle, and since there is a fixed amount for which you have to take in the credit for, you can even stop yourself from the overspending habits that you have. They are the growing aspects of the economic market, and as we are towards the source of digital transactions, credit cards are becoming more and more efficient these days.

Moreover, Credit cards are instantly safe for you to use for any source of electronic payments since they are backed up by full security. As a matter of fact, credit cards are comparatively safer than debit cards.

However, since each and every bank is offering new credit cards with amazing rewards, which one to choose? In this article, we are going to discuss the ten best credit cards in India so that you can choose the one that suits you the best.

Why Credit Cards?

Credit cards are very similar to a debit card issued by a bank or a financial institution. However, credit cards let the cardholder borrow money from the financial institution to pay for goods and services. It imposes the condition that the cardholder must pay back the borrowed money after a certain period of time along with some interest as well as any additional charges if agreed.

The company issuing the credit card may also put up a line of credit (LOC) to enable the cardholders to withdraw money in the form of cash. The institution customarily presets the borrowing limits of the customer based on his individual rating. The borrowing limit can be set monthly, quarterly or annually, according to the profile and needs of the customer.

This mode of payment is one of today’s popular payment method for buying goods and services because of the following reasons:

  1. Purchasing Power: Credit Cards empower the holder to purchase locally as well as overseas also. They also let you purchase through phone, online and at stores, of course. Most of the credit cards, especially MasterCard and Visa, are accepted virtually anywhere.
  2. Shop now, pay later: Credit Cards make it very easy to buy on credit. For example, if you’re spending money on regular monthly expenses, it’s usually not a good idea to use your bank balance. Instead, you can buy through credit card and return the money to the bank by the end of the month. This way you have used the leverage instead of using your own money. Besides, credit cards are the best tool to help us track our expenses and hence it can help you in budgeting.
  3. Rewards: Mostly, all the banks and financial institutions who give credit cards offer various rewards and cashback on our day-to-day purchases. For example, if we book a movie ticket, there are numerous offers available from different companies. Some also offer benefits like ‘Buy 1 Get 1 ticket’, which results in the benefit of the customer only.

In addition, Credit cards can also act as emergency protection. In case of a medical emergency or unexpected event, one should maintain an emergency fund which must be equal to his/her six to twelve months of salary to keep him/her. A credit card can help you to fight with the unforeseen expenses.

Also read:The Pros and Cons of Credit Cards in India

10 Best Credit cards in India to choose:

Finding a sound credit card in India can be a tough job for you because you have to go through a lot of things. First of all, you have to take care of the facilities that you are getting from your card and even the bank through which it is being provided to you. Some of the credit cards are immensely useful for your shopping habits, and they come with excellent features, as well.

So here are ten of the best credit cards in India, which you need to check out right now.

1. American Express Membership Reward Credit Card

American express membership rewards card

Coming to the list of the top used credit cards in the Indian market, the MRCC is the top-rated one. It helps you to get reward points on your spending so that you can redeem it on your next purchase or issue. The annual fee for this card is Rs 1,000 plus GST. The renewal fee for this card is Rs 4,500 plus GST.

Current Offer (Till 31st December 2019)

  1. First-year fee: 0
  2. 2nd year Fee:1,500 INR* + applicable taxes

Eligibility Conditions:

  1. The applicant should be over 18 years of age.
  2. The applicant’s annual income should be of Rs. 6 Lakhs and above (in the case of Self Employed or Salaried).
  3. Good credit history and no payment defaults.


  1. You can get 4,000 points as a bonus on the first membership for this card.
  2. Earn up to 1,000 points as the membership reward points every month with this card.
  3. On payment of the annual fees by this card, you can get around 5000 bonus points.
  4. Redeem your reward, and you can get 18 karats and 24 karat gold collection from the program of the annex.
  5. Other benefits like zero lost card liability and others come as well.
  6. The Annual Membership Renewal fee of Rs.4500 will be 100% waived off if the total spends on American Express Credit Card in the immediately preceding membership year is Rs.1,50,000 and above.

Here’s a quick link to apply for the American Express Membership Credit Card!

2. Citi Premier Miles Credit Card

Citi Premier Miles Credit Card

If you want to save some money with the help of your credit card system in exchange for the other facilities like flights, international hotel/airline loyalty programs, then this is the one for you. The annual fees for this card are 3000, and the renewal fees are also the same.

  1. A welcome reward of 10,000 PremierMiles on the first transaction of at least Rs 1,000 with first 60 days.
  2. Spend around 1000 with this card, and you will get 60 days of insurance and 10000 bonus miles.
  3. Get an additional 3000 miles on your card anniversary every year.
  4. Earn up to 4 miles for every Rs 100 that you spend.
  5. Earn 10 miles for every Rs 100 on the transaction that you do with the airline world.

You can redeem your miles for flight tickets across 100s of airlines or attractive vouchers and merchandise from premium luxury and electronic brands on Citibank online catalog.

You can read more about the benefits and apply for the Citi Premier Miles Credit Card here.

3. HSBC Visa Platinum Credit Card

HSBC Platinum Credit Card

HSBC is a trusted source for online credit cards that has served over a million people from all around the world offering amazing discounts on movies, flights, restaurants and more. There is a zero annual fee for this credit card, which you can have for yourself. The renewal fee is also nil for this card.

Eligibility Conditions:

  1. The applicant should be aged between 18 to 65.
  2. The applicant’s annual income should be Rs. 4 Lakhs and above (in the case of Self Employed or Salaried).
  3. Current City of residence should be Bangalore, Chennai, Gurgaon, Hyderabad, Mumbai, New Delhi, Noida, or Pune
  4. Good credit history and no payment defaults.


  1. Nil joining and annual fees.
  2. On making the first transaction with this card, you will get a Rs 2,000 voucher from the clear trip and Rs 250 Swiggy voucher.
  3. Within 90 days of the card issuance, you will get 10% cashback up to Rs 2,000.
  4. Earn 3x reward points on the hotel telecom and another service that you want to use before the expiry.
  5. Get five times accelerated points towards the rewards if you make a purchase, and the total spending limit is above Rs four lakhs in an anniversary year.
  6. Get a movie ticket voucher worth Rs 500 on spending over Rs 50,000 in a calendar month.
  7. Air Miles Conversion on JetPrivilege and Singapore Airlines for booking flight tickets.

You can read more about the benefits and apply for the HSBC Visa Platinum Credit Card here.

4. Standard Chartered Manhattan Credit Card

Standard Chartered Manhattan Credit Card

The name might sound fancy to you, but this credit card comes with a lot of facilities for you to use anytime that you want. The joining fees for this card are Rs 999, which is the same as the renewal fees, as well.

Eligibility Conditions:

  1. The applicant’s age should be between 21 and 65.
  2. The applicant should have a stable monthly income.
  3. The applicant should belong to credit cards sourcing cities/locations of the Bank.


  1. When you make your first transaction with this card, you will get a voucher for 2000 from a book my show.
  2. Get 3x reward points for all the expenses that you have per Rs 150 spent.
  3. Get 5% cashback when you use this credit card at the supermarket. Enjoy multiple offers for this card that you want, like discounts on the traveling, dining, and other categories.
  4. Under the excellent life program, you can avail of offers as a discount on several purchases on Spicejet, Goibibo, Croma and other partners.
  5. The renewal fee of Rs 999 is waived on spending Rs 1,20,000 or more in the Year.

Here’s a quick link to apply for the Standard Chartered Manhattan Credit Card!

5. HDFC Regalia First Credit Card

HDFC Regalia First Credit Card

For all the HDFC bank users from all around, this credit card is handy and comes with multi-features for you. The annual and renewal fees for this card is Rs 999.

Eligibility Conditions:

  1. For Salaried: Age: Min 21 yrs & Max 60 Yrs, Income: Gross Monthly Income> Rs 40,000
  2. For Self-employed: Age: Min 21 yrs & Max 65 Yrs, Income: ITR > Rs 5 Lakhs per annum


  1. You can get complimentary priority pass membership on all the airport lounges.
  2. Earn up to 4 Rewards points on every 150 rs that you spend on your card.
  3. 1% fuel surcharge waived off on fuel transactions.
  4. On selected restaurants, you can get around a discount of about 40%.
  5. Users will get 7,500 bonus points every year on spends of Rs.6 Lac or more in each anniversary year.
  6. Convert your reward points, and then you can use it for the coverage of the air miles on your card.

You can read more about the benefits and apply for the HDFC Regalia First Credit Card here.

6. ICICI Bank Platinum Credit Card

ICICI Bank Platinum Credit Card

This ICICI bank platinum chip credit card is the one for you to use anytime you need it for. There are so many added discounts and offers you can get from here. There joining fee is Rs 199 and the annual renewal fee is Rs 99, which can be waived if you spend ₹ 50,000 or more annually on your Card.

Eligibility Conditions:

  1. The applicant’s age should 23 or above years of age.
  2. The applicant should have a stable monthly income.


  1. Make contactless payments by just waving at the card in front of the NFC terminal.
  2. Earn up to 1 Payback for every point on the purchase of 100 rupees that you make.
  3. Get two paybacks for every 100 rs that you spend on fuel.
  4. You can even avail of the 1% fuel surcharge waiver at the HPCL pumps.
  5. There are selected restaurants where you can opt for a 15% discount on your card.
  6. Redeem the reward points, and you can get the gift vouchers as you want.
  7. Lenskart – existing offer of Rs 500 off on purchase of Rs 3000 or more valid till December 31, 2019

Here’s a quick link to apply for the ICICI Bank Platinum Credit Card!

7. SimplyClick SBI Credit Card

SimplyClick SBI Credit Card

When it comes to the banking institution, then SBI is one of the chosen ones from the whole lot. The annual fees for this card are around 499 and the renewal fees are the same as well.

  1. Get Amazon.in gift card worth Rs.500 on joining as your reward gift.
  2. You can earn one reward for every 100 that you spent on it.
  3. Cardholders can earn e-voucher worth Rs.2,000 on annual online spends of Rs.1 Lakh
  4. Get 5x rewards on all the online spends.
  5. Get 10x reward for the online spend, which is partnered by SBI – – Amazon / BookMyShow / Cleartrip / Lenskart / Netmeds / Rentomojo / UrbanClap
  6. 1% fuel surcharge waiver for each transaction between Rs 500 & Rs 3000
  7. Spend 1 lakh in a year, and you can get your annual fee of Rs 499 reversed.

You can read more about the benefits and apply for the SimplyClick SBI Credit Card here.

8. American Express Platinum Travelcard

American Express Platinum Travelcard

If you are a travel enthusiast, with the help of this card, you can do a lot of things for yourself. For example, you can get through the make my trip offers and much more. The annual fees of this card are Rs 3,500, and the renewal fees are Rs 5,000, second year onwards.

Eligibility Conditions:

  1. The applicant should be over 18 years of age.
  2. The applicant’s annual income should be of Rs. 6 Lakhs and above (in the case of Self Employed or Salaried).
  3. Good credit history and no payment defaults.


  1. Get a welcome gift of about 5000 bonus from the use of the first transaction that you make with this card.
  2. Earn 1 membership reward point for the Rs 50 that you have made for the utility, bill payments, etc.
  3. On spending about Rs 1.9 lakhs with the use of this card, you will get a travel voucher worth Rs 7700.
  4. Further, on spending about Rs 4 lakhs with the use of this card, you will get an additional travel voucher worth Rs 11,800.
  5. Cardholders can also enjoy 4 complimentary visits per year to airport lounges across India.
  6. There are exclusive offers to making my trip here like the Taj Experiences E-Gift Card worth Rs. 10,000 from the Taj Hotels Palaces Resorts Safaris.

Here’s a quick link to apply for the American Express Platinum Travelcard!

9. Indian Oil Citi Bank Credit Card

Indian Oil Citi Bank Credit Card

If you are concerned with the rising price of the oil and fuel, then you need to go for this card. The annual fees and the renewal fees are Rs 1,000 for this card. This annual fee on the card is waived when you spend Rs.30,000 or more on your Card in a membership year.

  1. Get up to 71 lit of free fuel every year in the form of the fuel surge.
  2. Full waiver of the fuel surcharge (1%) on fuel purchases
  3. Earn four turbo points on every Rs 150 spent with your card (1 Turbo Point equals Rs.1 worth of fuel).
  4. Get two turbo points on every Rs 150 spent on your card on the grocery, and other supermarket pays too.
  5. The accumulated turbo points that you have will never expire.
  6. Cardholders will also get up to 15% savings across participating restaurants with your Citi credit card.

You can read more about the benefits and apply for the Indian Oil Citi Bank Credit Card here.

10. SBI Elite Credit Card

SBI Card Elite

This credit card is specially meant for those who believe in spending and saving at the same time. The annual and renewal fees of this card are Rs 4,900.

  1. Get a welcome e-voucher of about 5000 for an array of brands like Yatra, Batra, Hush Puppies, Pantaloons, Shoppers Stop.
  2. Get free movie tickets worth Rs 6000 in a year.
  3. On spending four lakhs in a year, you will get a bonus reward point of 10,000.
  4. Earn 5X Reward Points on Dining, Departmental Stores, and Grocery Spends
  5. Get 2 Reward Points per Rs. 100 on all other spends, except fuel
  6. Enjoy 2 complimentary Domestic Airport Lounge visits every quarter in India
  7. 6 complimentary Airport Lounge visits per year, outside India
  8. SBI Card ELITE also offers the privilege of the lowest Foreign Currency Mark-up Charge of 1.99% on International usage.
  9. Accelerate your reward earning when you get it with the use of the card on the grocery shopping and the other items.

You can read more about the benefits and apply for the SBI Elite Credit Card here.

Closing Thoughts:

These are the best credit cards in India that you can pick. If you do not have a credit card yet and you’re applying for the first time, Standard Chartered Manhattan Credit Card or ICICI Bank Platinum Credit Card can be a good choice for you.

Anyways, you do not need to have just one credit card. You can apply for multiple cards if you have got a strategy to get the maximum value out of them. Choose your credit cards accordingly and find out the ones which fit you the most, depending on your lifestyle and preference.

Why Credit Cards Are Safer Than Debit Cards cover

Why Credit Cards Are Safer Than Debit Cards?

When debating on the topic of why credit cards are safer than debit cards, you have to understand the logic behind both of them. There are often that you may ask yourself what type of card can be readily used for a safer purchase, and this is when you need to understand their benefits and the uses of both the cards. Some people end up confusing themselves since they cannot get to the point of which one to use for their day to day transactions.

First of all, Credit and debit cards are not the same cards that you can use

Each is a plastic rectangle-shaped card which helps you to pay for the service or the product that you have bought for yourself. In the modern age of digitalization, around every place have a credit or a debit card facility option here for you. Typically they both look the same, so some people undertake for the self-belief that both cards have the same purpose, and they are used for mere transactions.

Well, here so where they can go wrong. Credit cards are sometimes used, which can be heightened for the consumer to stay protected from the frauds. But there are some of the personal safety advantages that you can get from the usage of the debit cards as well. So with the help of this article, you will know which card you can use for a safer online or offline transactions.

The primary difference between credit and debit cards:

Although both of them will look alike in front of you, the credit and the debit cards have different purposes to them. You cannot undertake the function of both the cards based on their appearance. So here is the following thing which you have to understand.

Credit cards are equipped with a credit line:

This basically means that there is a fixed amount of money which you can try it borrow from the lender. After every charge that you make, the issuer pays the merchant the expected amount, and the amount that you can hire to your name is reduced from the all total sum.

So if you have a credit line of around 20,000 and you have got about 5,000, you will have 15,000 left to borrow from your issuer. The more you use your card, the less amount you will be left with from your issuer.

After the payment due period, there is an interest that is charged onto the 5,000 that you have applied for yourself. So unless you have paid in for the 5,000, the interest fee for the grace period will be charged on that basis. If you pay less for this month, then the amount will be rolled to the consecutive month. And if you have paid it al-together, then your amount will be charged back to 20,000. This is how a regular credit card works.

Also read: 10 Best Credit Cards in India [With Exploding Benefits]

For the debit card, there is no borrowing involved here:

This means that you don’t have to borrow any sum of money from your issuer to get to a transaction. So when you are using a debit card, you will be tapping into the fund of cash that you have in your bank.

After you have made the purchase there, the money which is deducted will be transferred from your account to the bank account of the merchant. This way, the amount will be paid to the merchant, and it will be deducted from your source.

Now there are a lot of banks out there who will charge you a negligible amount of interest on the purchase that you make. So with the help of your debit card, you will know how much amount is really in your bank. You can even add to it by checking it anytime that you want.

Why Credit Cards Are Safer Than Debit Cards?

Safety against frauds for Debit and Credit Cards

fraud transactions Why Credit Cards Are Safer Than Debit Cards

In India, both credit and debit cards are subjectively safes to use as there is an additional factor of authentication required to validate any transaction. For making transactions, you receive OTP on your registered phone number to confirm the transaction. Therefore, until and unless your cards and phone number are both hacked/stolen together, it is very difficult to make fraud online transactions.

However, withdrawing money from your debit card or credit card from an ATM doesn’t require OTP validation. And here, if your debit card is stolen along with your PIN, the fraudsters can withdraw a huge amount if you have got a lot of money in your bank account. This may generally happen if you are not aware of the transactions i.e. when your active phone number is different than the registered number. Here, you do not receive the transaction alerts from the bank via messages. Similar is the case when you do not care to read the transaction messages sent from your bank and hence do not block your card immediately in case of fraud or stolen.

On the other hand, if we look into the credit cards, there’s a limit on the withdrawal and it doesn’t depend on how much money you have got in your bank account. The fraudsters cannot withdraw cash more than this predefined limit.

Further, a major drawback in the case of fraud on a debit card is that you lose the amount from your bank account. Even if you raise a complaint to the bank, it may take months for the bank to refund that amount. This is because they need to verify and confirm the fraud activity. They may ask you if you’ve shared the Pin/OTP with any of your friends/colleagues etc. In the case of ATM transactions, getting the CCTV footage and verifying that the person wasn’t you is definitely not a fast process. And throughout this verification process, all you can do is to wait patiently to get back your money.

On the other hand, when the same happens against a credit card, you can raise a complaint and get appropriate reversals before the next credit card billing cycle. Moreover, as this money never belonged to you, it won’t hurt you economically and even if the investigation process goes for weeks, you can remain calm. Overall, in terms of fraud protection, we may conclude than credit cards are safer than debit cards.

Also read: 5 Things You Should Know Before Getting Your First Credit Card.

Credit And Debit Card Usage:

When you are using debit cards, you might check to see that they are not user or consumer-friendly over here, but you can use them for compelling other reasons which are presented.

First of all, if you don’t have an overwhelming debt to your name, then debit cards are the ones for you. By focussing on the expenses that you make for yourself with the use of your debit card, you can solve the financial crisis that you face. Debit cards let you use the amount that you have inside your bank and not more than that. If you apply for the amount which is over in limit, then it will be declined from the source.

Credit cards usage

Coming to the usage of the credit cards, they have a user-friendly base, and you can use them anytime by ensuring the right and even your safety as well. There are some clear, substantial advantages of using them. For example, if you want to go out for shopping then take your credit card with you. It is a preferred instrument since it helps you to have your way.

Plus, the internet trolls who are sitting every right now and then won’t be able to hack into your account and see how much amount you have left. Besides, when you are going in out for traveling, then credit cards are the key or the prime thing to use. They can be used for checking accounts, and you can always fall short of cash when you are outside. So credit cards are there to save you from the hustle or the worry that you might face by yourself.

Note: If you are yet to get a credit card, here is a quick link to check your eligibility and apply for credit cards online.

Final verdict

Well, we all know that you can use both these cards for your transaction habits. Like credit cards, it helps you to run the funds when you are in need of an emergency. Debit cards are used for you to save the fund in your bank and then use it carefully by understanding your expenditure limit. Certain people can get into a credit card debt if they have not paid out their expenses or the issues that they have made from their lender. In other words, if you want to never fall into a huge trap of expenses and debts surrounding you from all around, then debit cards are a go-to option for you.

Regarding consumer protection, definitely credit cards are safer than debit cards. From fraud transactions to creeps looking into your bank account, all can be lessened by using credit cards. Moreover, there are some of the awesome advantages that you can even get for yourself by the usage of these cards like cashback and rewards.

Final advise, having both at your disposal is an excellent technique, as well. This way, you can use the cards accordingly to the given scenario that you please to have.

The Pros and Cons of Credit Cards in India cover

The Pros and Cons of Credit Cards in India

The Pros and Cons of Credit Cards in India:

The nature of our society has been marked by different political, social, and economical changes through different modes and means. Out of these, the sea change brought about by technology has been very crucial. Technology has changed our outlook towards life- from communication to transportation to payments.

With the rise in the population of the Netizens today, the countries are on a ‘cashless’ spree. The e-commerce payment system has not only digitalized the whole process of transactions but has also made it convenient and easy. Some forms of e-transactions include ATM cards, Credit Card, E-wallets, Debit Cards, and Cryptocurrency, etc.

Out of all the modes of e-commerce payments, credit cards are the most common form. Credit cards are totally different from debit cards- a debit card is not a credit card. When we use a debit card, the money is being deducted from our checking account. On the other hand, when we use a credit card, we are basically borrowing money from the bank which is to be repaid later according to the directed time.

The Pros and Cons of Credit Cards in India

Credit cards allow us to make payments through borrowings against a credit limit. There are various advantages of using credit cards over debit cards. They can be summed up as:

Pros of Credit Cards in India:

  1. It helps one to go cashless. Not everyone wants to carry cash all the time. Moreover, withdrawing cash anywhere and everywhere is not feasible and convenient.
  2. There are a number of rewards associated with credit cards. Some banks provide discounts, cash backs, etc that are exclusively available on some credit cards.
  3. Buying expensive products and services is far easier from credit cards. A hefty amount is not spent at one go. You have to repay the amount in installments (EMI) with even zero interests.
  4. Credit cards have theft protection. If you lose any money or the card gets stolen, the liability is guaranteed by the bank. In contrast, if cash is lost or stolen, it is very hard to get the money back.
  5. Credit cards provide travel insurance against lost luggage, canceled trips, and even death. The coverage that one gets depends on the respective banks and offered terms.
  6. Credit cards help in the cheaper conversion of currency. Cards such as Visa or Mastercard can save up to 8% currency as compared to cash.
  7. Credit cards are the best tool to help us track our expenses. It helps us in budgeting and making effective plans.
  8. It saves money that is spent on buying extended warranties for maintenance and coverage. The advantage of extended warranties is free on purchases done on many credit cards.
  9. They are a whole lot safer to use. If you are a thrifty credit card user, you do not have to worry about excess payments and unreasonable interests. All you have to do is to repay your debts on time and maintain a good credit score.

Also read: 10 Best Credit Cards in India [With Exploding Benefits]

Pros of Credit Cards in India

Cons of Credit Cards in India:

While tallying up the pros and cons, we come at a point where we realize that no matter how common credit cards are, there are some cons that we should consider while issuing one—

  1. The threat of overspending always looms large. There are times when we tend to spend more than what is required. People go on buying their desires rather than their necessities, ending up in dire consequences. All we are left with are overburdened shoulders pressed by unthinkable amounts of debts. This vicious circle has led to the breakdown of many companies and business tycoons.
  2. Borrowings through credit cards are of the high cost. The interest charged is a little higher and it is never uniform. There is no guarantee that the rates will be constant. It can rise unexpectedly causing a huge cut in our budget and expenses.
  3. Not everyone can apply for a credit card. The requirements are just too many. If you have a low income or a weak credit history, you cannot get a credit card. In some cases, even if you meet all the requirements, you are not eligible for a credit card because it simply depends on the bank. The more connections you have, it is easier to get credit cards and loans.
  4. Maintaining a credit card is a little difficult. You not only need to have a good credit score so that the bank allows you to borrow, but you also need to pay the annual fees in order to carry on with your service with rewards. The annual fee for a few cards is high for no reason.
  5. If you are caught into the trap of overspending, misuse of funds, missed payments, you will suffer badly. You might find it difficult to get good rates for future payments or get overburdened by debts or even worse- due balances can get the bank file a lawsuit against you.
  6. The details and intricacies of credit card documents are not told properly. The statements are written in such technical words and small prints, it will be difficult to go through it. Those who do not put extra effort into actually getting it reviewed land up in some trap where the interest rates are duly high or the annual payments are increased successively without your knowledge. Therefore, getting your documents reviewed is very important.

Note: If you are yet to get a credit card, here is a quick link to check your eligibility and apply for credit cards online.

Bottom line:

By way of conclusion, we can point out that we may opt for a credit card but only keeping in mind the restrictions.

If we are ready to clear the debts on time, pay the interest on the overdue amount, maintain a high credit score and not overspend, then we should apply for it provided we meet all the requirements. Using credit cards/debit cards/ATM cards or any other means of e-payment is a sign of progress for any country, therefore, we should encourage cashless modes of payment as much as we can.

buying a car vs Ola or Uber ride

Buying a car vs Ola or Uber ride – Which is cheaper?

When you ask anyone – ‘Which is cheaper? Buying a car vs Ola or Uber ride?’, most of the people will have a different opinion. In this article, we have shared our thoughts.

At a press conference which happened in the last Tuesday, Finance Minister Nirmala Sitharam said that the millennial prefer to go through Uber and Ola rather than buying their Car. This is because the option is much cheaper and affordable for the current generation. 

According to the finance minister, it was said that the youth today would rather spend a load of cash on booking an Uber or an Ola other than paying long term EMIs for buying their vehicle. And this statement has created an uproar among the working individuals and even the mentioned names of the automobile/transporting service system since they reportedly said that they have nothing to do with the slowdown in the current industry’s plans.  

According to recent reports, it has been said that the makers and the top-level managers of the Maruti Suzuki have noted that the existence of the Ola and Uber has been there for the past seven years. During the peak time, there was no such slowdown in the current condition of the automobile business. They have said that they do not think that these services are responsible for the slowdown in the industry in any other way.  

A personal opinion shared by the people who use ridesharing plus a car

But have you given it a thought? Is it true that traveling via Ola or Uber will help you to cut down your costs more than paying the personal loan for your Car? As the service of Ola and Uber is growing in the market, some are wondering which might be easier to hail. Getting a car of your own is undoubtedly a cherry on the top, but somehow you have to understand that getting a vehicle is not the final thing that happens here. 

You have to take care of the loan and the EMI budget of your Car so that it can be done at the right time and paid off. It will help you to ease off your burden. This complex question is rising in the minds of the millennial, but we might help you to get an insight into the matter and take it sincerely. 

Owning a car is better for long term rides, sharing a ride will be good for the short term. It is a golden rule that you should learn from this article. 

Here is the main deal. If you have a car of your own, then you can take it for a ride at any time of the day that you want. Primarily they are needed when you want to travel and cover the long term.

Car ownerships might be affordable for people who drive typically medium to long-distance or about 20km. Whereas, the ride-sharing apps like Ola or Uber happens when you want to cover a short span of about 7 km. However, these findings are based on some back details as well.

The cost of the Car that you have depends on the on-road price of that car that you have bought, the fuel price that you have to pay for it. The maintenance charges are even varied here.

To explore this part of the question, take for example that Datsun Go is for Rs 3,50,000 – 5,20,000 and it takes about a 5-year car loan with a whopping amount of 10% of the rate of interest. Over that, you need to have six years of maintenance for that Car when the full cost is covered onto the same. There are some potential car issues which can happen here as well.

For the medium or long trips-owning, a car wins

buying a car vs Ola or Uber ride

For an individual who trips on the basis of the medium or the long trip wins here. We ‘have also found the fact that owning a car is about 44% cheaper than sharing a ride if you cover the long-distance or even the mediocre ones.

Short trip rides- the cabs win

buying a car vs Ola or Uber ride

Rideshare is in for short trips. We have found out that typically people who take journeys of about or less than 10 km wins on the Rideshare here. It becomes 24% cheaper for them. If your twice-daily rides are about for 7 km, which means one ride will time up for 15 minutes, the Rideshare or the app cab will win here. Due to the lower distance of your trip, the 5-year cost plan for your Car decreases by a rate of about 25%, and it can save a lot on the fuel consumption here.

However, in the current period, the cost of an Uber or Ola is becoming cheaper by 56%. It illustrates the fact of how you use it and how much consumption is made from your side.

Also read: How much does a Wedding cost in India? (For Average Indians)

Is Rideshare the right replacement for you?

The final verdict says that Rideshare is only a feasible replacement, for the people who want to have a shorter distance of their ride. If you are a typical short distance traveler, then the Rideshare will be a viable option for you. Of course, the cost consideration which is charged varies on your location and even the individual who is paying for the same.

If you have your Car, you can take it out on a trip if you want. You can even cover the longer distance if you wish to so with the help of your Car here. Of course, there are parking tickets you have to pay, regular maintenance of your vehicle, take your vehicle to the car wish, etc. But it will be an excellent option to invest in if you are an avid traveler.

Mainly if your place of work is situated far away from where you live, it is essential that you get a car of your own. If you use the Rideshare each and every day here, it will cost you a lot.

Additionally, you can even supplement ride sharing to motorbike ride-sharing apps like Rapido. They will cost you less. And also purchasing your motorcycle is a much cheaper option for vehicle ownership.

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