The article on the real interest rate charged by credit cards (Query Corner) helped clear many of my doubts. Could you please tell me about the different types of credit cards available and the best one to opt for?
— Dinesh J., e-mail
We are glad you found the story useful. There are numerous types of credit cards and it will be difficult to list all of them here. Also, there is no one card that can be considered the best. The choice will depend on your needs and requirements. So if you are a frequent flier, you can opt for a co-branded card by that particular airline.
What is the difference between large-cap funds and diversified equity funds? Both these terms have been used interchangeably in Money Today. For instance, sometimes you refer to BNP Paribas Select Focus as a largecap fund, and at other times, you refer to it as a diversified equity fund. Please clarify.
— Sandeep Kumar, Amritsar
Large-cap funds are those that invest in stocks of companies with large capitalisations. These could be from the same or different sectors. Equity-diversified funds invest across sectors. These funds may invest in large caps, mid caps or small caps across various sectors. BNP Paribas Select Focus is an equity-diversified fund that invests in large-cap stocks. So it could be described using either term depending on the context in which it is being referred to.
It was a pleasure reading the article on Pulkit Gaur (Sold on Robots). The story mentioned that he is looking for a venture capitalist. We are a Kolkata-based company and would like to fund him. Could you please send me his details? Also, continue highlighting the Indians who are shaping the country’s future.
— Vinay Chugh, e-mail
We are glad that you are willing to promote an entrepreneur like Gaur. We shall be happy to facilitate it and shall soon send the required information.
I tried to calculate the EMI of my loan by using the formula suggested by you in the letters section. But it does not seem to work. Could you please explain it in greater detail?
— S. Parthiban, e-mail
Consider the following example to calculate the home loan EMI (paid at the end of a month).
Home loan: Rs 20 lakh
Interest rate: 12% p.a.
Tenure: 20 years
EMI: Home Loan/A
where A = 1-(1+i)-n/i
‘i’ is the monthly interest rate. Here, i is 12% divided by 12, which is 1%.
‘n’ is the tenure of home loan in months. In this case, it will be 240 months.
A = [1-(1+0.01) ^ (-240)] divided by .01, which equals 90.82. Dividing the amount of home loan, which is Rs 20 lakh, by 90.82, gives you an EMI of Rs 22,021.
You can also use online EMI calculator on our Website.
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