Canadian Super Visa Insurance

A super visa allows a parent or grandparent of a Canadian citizen or permanent resident to stay in Canada for more than 6 months at a time. It allows them to stay for up to two years at a time and is valid for 10 years.

A requirements of being approved for a super visa is medical insurance in place from a Canadian insurance company with coverage for at least one year. This is what super visa insurance is.

The insurance must meet these requirements:

From a Canadian insurance company.
Valid for at least 1 year.
Coverage must be at least $100,000
The cost of the insurance can be high. A person in their mid-forties with no pre-existing medical conditions should expect to pay between $800 and $1,800 for super visa insurance. You can get more information on what to expect from the cost for super visa insurance in this guide.

The best way of finding super visa insurance is through a price comparison website – but remember it needs to be from a Canadian insurer.

More Risk, More Return: Is it true in Stock Market?

“Risk comes from not knowing what you are doing.”- Warren Buffet.

The essence of successful investing lies in the way an individual manages the risk. Gambling is just a synonym for speculation and when use guessing as pillar of your investment strategy you are bound to lose, incessantly. Making an informed choice based on the measurement of an investment option’s systematic and unsystematic risk is cardinal while investing in stock markets. But before we jump into the discussion of the correlation between risk and return, I feel that understanding the concept of risk in financial terms is fundamental and a topic of paramount importance.

What is risk?

Risk in financial terms is the difference between the investment’s actual return and the expected return by an investor. Risk portrays the probability and the magnitude of loss which comes hand in hand with the chosen investment product and the investment horizon of an investment. In the world of finance, risk is calculated by using standard deviation as a metric which measures the volatility or fluctuation in the price of an asset when it is compared to its historical averages in the given time frame for assessment.

Types of Risk?

There are certain situations in this world which you cannot avoid but there are other situations in which the risk associated with them can be mitigated by excersing the prescribed methodologies and measures. Here is the graphical representation of the two major types of investment risks along with their sub divisions.

Well, well, well!!!!! we will not be getting into the detailed explanation of each and every type of risk for the reason that it would derail us from the agenda of this article but we will definitely discuss the blanket types of risk which is systematic and unsystematic risk.

What is systematic risk?

Systematic risk refers to the undiversifiable/ market risk which has the potential to disrupt the entire global markets. It is a highly unpredictable and unavoidable kind of risk to a humongous extent. Systematic risk includes interest rate changes, inflation, recessions, and wars, among other major economic, geo-political and financial shifts in the world like ‘The Great Recession, 2008’.

What is unsystematic risk?

Unsystematic risk refers to a diversifiable type of investment risk which can be minimized and hopefully mitigated by proper asset selection and allocation in accordance with the prevailing sentiments in the target market. Unsystematic risk includes risks such as entry of a new market participant in a specific industry, launch of a substitute at a marginal shifting cost by a competitor or recall of a sold product from a customer due to safety or other major concerns and then providing them with compensation as done by Samsung after the launch of its smartphone labelled as “Galaxy S7” in 2016.

But Before that you must have a demat account. Do you think opening Online demat account is a herculean task? No, definitely not. Yes, they are complex, but our step by step guides make them easy like anything. Go on and choose a broker.

What are the financial ratios that can used to measure the risk-return trade-offs?

As you already discussed, standard deviation is used to calculate magnitude of risk associated with an investment product but it has some shortcomings like it only shows how annual returns of an investment is spread out which does not validates the consistency in performance in the future. We have two other ratios which can help you understand the risk associated with the investment option that you have chosen.

Sortino – It is a financial ratio which gives a realistic idea of the downside or the negative deviation associated with a company’s stock. It helps you to measure the amount of return that you will be able to generate on a per unit basis for the given magnitude of downside risk which can also be referred as a chance of avoiding large losses. A higher sortino ratio is always desirable.
Sharpe – It is a financial ratio which considers both upside and downside volatility and then arrives at a conclusion of a stock’s performance. Sharpe ratios is a statistical tool which predicts risk adjusted return on an investment. Higher sharpe ratio translates into higher return potential along with higher risk.
Mid-cap stocks have performed ravishingly throughout these years with a considerable amount of risk associated with them. There are various conclusions that can be drawn out from these graphs and tabular data but the one of utmost importance is that high risk gives no guarantee or validation of high returns. Look at standard deviation of small cap stocks, they are the highest in the pack but the return from US Mid-cap stocks and US large-cap stocks is the highest when risk is taken into the consideration.

Why aren’t the gamblers the richest?

There is a vanilla answer to this, ‘THEY ARE JUST SPECULATING’. Gamblers are the hardcore speculators. If you are into stock markets and you are making decisions based on mere assumptions, grapevines, pseudo talks and emotions then there is no power in this world which has the potential to protect from heavy, big, gigantic losses in the future.

Conclusion

Stock market is a blend of speculative risk (risk of potential gain or loss) and pure risk (the possibility of loss or no loss only). To magnify your returns, you need have a blend of risk averse and risk prone investment products in your portfolio. There is no such financial instrument which falls under the category of absolutely risk-free-investment in the world of stocks, even the treasury securities which are government backed carries a low magnitude risk of default.

As an add on from our side, here is the thorough segregation of financial instruments based on the level of risk associated with them.

Having a balanced portfolio is all you need for generating a decent amount of return with minimal risk. Risk profiling is another vital part of risk management and is a cardinal step in maximising returns for a portfolio. An individual needs to select his/her goals and the time in which they want to achieve them. Based on that we can select the asset class which has the potential to exude desired returns while keeping our risk appetite into consideration. For example, a young person can have aggressively invest in stocks and can even have a major part of their portfolio invested in financial instruments which portray the high risk-reward trade-off but a person who is about to retire must not construct their portfolio with small-cap or mid-cap stocks or with any other financial instrument which requires a long time horizon to appreciate in value and carries a risk of wiping out your investment corpus. Taking informed decisions which can further be translated into taking calculated risk is the heart of any investment strategy. Risk forms a negative correlation with return when you make an investment based on your emotions and not the basis of facts and figures which is available to you.

Instant INR Deposit and Withdrawal Option on Koinbazar

Koinbazar, India’s leading cryptocurrency exchange has introduced an instant payment option on our exchange. With this feature, you can easily deposit and withdrawal INR instantly from any bank in India securely by using NEFT/RTGS, IMPS within few minutes. We have upgraded our payment gateway functionalities to avoid any unsafe activities. Our main aim is to provide a user-friendly platform and a seamless trading experience for traders all over the world.

The major benefits of this feature are,

Automatic bank account verification
Instantly deposit funds into your account
No middlemen services
Secure payment gateway
Hassle-free trading experience
How to do Instant INR Deposit on Koinbazar?

Step 1: Log on to the Koinbazar website

Step 2: Build your profile

Step 3: Complete KYC verification

Step 4: Link your bank account

Steps 5: Once the bank details and KYC gets verified, go to “Funds” then choose “INR”

Step 6: Put the amount that you want to deposit on the Koinbazar wallet from your bank account.

Steps 7: Once money gets deposited into your account, start trading cryptocurrencies.

How to do Instant INR Withdrawal on Koinbazar?

Once your KYC and bank account gets verified, including the funds that you want to withdraw from the Koinbazar wallet to your bank account.

So signup now, complete the KYC verification process, link your bank account, deposit funds instantly, and start trading your favorite cryptocurrencies consistently without any interruption.

SIP or Lumpsum: Which Option Will Give Better Returns in Mutual Funds

Once you have chosen the best mutual fund to invest, SIP & Lumpsum are the two ways to grow your investments. An SIP is considered to be a good option for investment purposes. It is convenient, flexible and inculcates a habit of investing. In an SIP, a fixed sum of money will be deducted from your bank account and will be invested in the fund of your choice. Whereas in Lumpsum, you will need to time the markets. You will need to have a sound knowledge of the markets and be smart enough to make a call on when to invest to realize better gains.

Advantages of SIP & Lumpsum investment:

SIP – When you initiate an SIP, a fixed sum of money gets deducted periodically. So when the market is down, you get more units and vice-versa. This helps in cost averaging. You don’t have to time the markets at all. It’s perfect for people who have just started to invest or completely new to investing.

Lumpsum – If you wish you invest in lumpsum, you will need to be very good in timing the markets. If the markets are low, your investment can give you more units. You will need to just make a one-time investment unlike SIP where you periodically make investments.

Drawbacks of SIP & Lumpsum investment:

SIP – Starting an SIP is like opening an umbrella, even if it’s raining or not. Which means even when the markets are high you are still making an investment resulting in accumulation of fewer units as compared to when investing in low market.

Lumpsum – You will need to have a very good knowledge about the markets to make right decision to invest in lumpsum. If you invest and the markets go down, you will end up losing your wealth. Hence, a good knowledge about the markets and a foresight is needed when you choose to invest via lumpsum.

Regardless of which investing mode you chose; it is the selection of best mutual fund for SIP or lumpsum that play a crucial role. for long term risk adjusted returns. After selection of best mutual fund to invest in for a long term, you can initiate an SIP or make an lumpsum investment.