£3k to invest in July? I’d buy a FTSE 100 index fund

first_img Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Investing in a FTSE 100 index fund is a great way to get started in stock market investing. If you have £3k ready to invest and are not sure where to put it, that’s understandable. The stock market is a volatile place right now and confusing for beginners to stock market investing. That’s why I find index funds appealing because they limit risk and give you a piece of many stocks rather than one or two.Why choose a FTSE 100 index fund?A FTSE 100 index tracker fund allows you to own a piece of the entire index, rather than its individual constituents. So instead of buying individual stocks, such as when the AstraZeneca or BP share price looks to be a bargain, you can own all of them. This collective investment reduces risk because you follow the ups and downs of the entire index, rather than risking the volatility of individual companies. It also diversifies your investment because the FTSE 100 index includes many sectors such as energy, finance, aerospace, and pharmaceuticals, to name a few.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Index investing follows a passive investment strategy. An active investment strategy usually involves a fund manager choosing specific stocks they believe will beat the index over a certain period. Actively managed funds tend to cost more than passive investments because they require more effort to set up and monitor.  What return can I expect from an index fund?Nearly half the FTSE 100 constituents have slashed their dividends this year since the coronavirus outbreak and earnings cover remains low. This indicates the likelihood of further dividend cuts as the year goes on. Despite this, analysts expect the FTSE 100 index to realise a 3.6% yield for 2020.For income investors, the dividend was the attraction to many individual stocks. Without it, investing in specific stocks looks less appealing and index funds may be the preferred option.A 3.6% yield may seem low compared with single stocks offering yields as high as 10%, but it is more than many bank accounts offer. Plus, in a time of volatility and uncertainty, many investors prefer to opt for lower gains in return for reduced risk.I think index funds are a great way to dip your toes in the stock market without going too deep. But if you are new to stock market investing, you need to keep in mind that even index funds are not risk-free. Research how to invest in index funds and take your time with your investment decision. The value of your investment will fluctuate with the index, but historically the FTSE 100 has always risen after a market crash, to surpass previous lows. Examples of FTSE 100 index funds you might like to consider are the iShares 100 UK Equity Index Fund or Vanguard FTSE 100 index Unit Trust. If I had £3k to invest in July, I would happily buy one of these. Our 6 ‘Best Buys Now’ Shares Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997”center_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. £3k to invest in July? I’d buy a FTSE 100 index fund Kirsteen Mackay | Saturday, 4th July, 2020 Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. See all posts by Kirsteen Mackaylast_img read more

Section 4(5) Of Gratuity Act Applies Only When There Are Options For The Employee Under The Act & Under Contract With Employer : SC

first_imgTop StoriesSection 4(5) Of Gratuity Act Applies Only When There Are Options For The Employee Under The Act & Under Contract With Employer : SC LIVELAW NEWS NETWORK30 April 2020 10:34 PMShare This – xIn a notable judgment in the field of gratuity law, the Supreme Court held that Section 4(5) of the Payment of Gratuity Act, 1972 will apply only when there are alternative options for the employee under the Act and under the terms of contract with the employee.The Court also held that the employee must taken either of the packages completely, and there cannot be any “combination” of terms…Your free access to Live Law has expiredTo read the article, get a premium account.Your Subscription Supports Independent JournalismSubscription starts from ₹ 599+GST (For 6 Months)View PlansPremium account gives you:Unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments.Reading experience of Ad Free Version, Petition Copies, Judgement/Order Copies.Subscribe NowAlready a subscriber?LoginIn a notable judgment in the field of gratuity law, the Supreme Court held that Section 4(5) of the Payment of Gratuity Act, 1972 will apply only when there are alternative options for the employee under the Act and under the terms of contract with the employee.The Court also held that the employee must taken either of the packages completely, and there cannot be any “combination” of terms under both the alternatives.This was in the case BCH Electric Limited vs Pradeep Mehra, where a bench comprising Justices U U Lalit and  Sanjiv Khanna set aside the findings of the Claim Commissioner under the Act, which were approved by the Appellate Authority and also both the Single Bench and the Division Bench of the Delhi High Court.The issue was whether the employee, Pradeep Mehra, was covered under the gratuity scheme formulated by the company in 1979, or under the terms of the Act.In 1979, the company had framed a gratuity scheme for those employees who were not covered under the Act. In 2012, the employee resigned from the company after 12 years of service. He raised a gratuity claim of Rs.1,83,75000/.The company took the stand that he was entitled to gratuity amount of Rs 10 lakhs only, as per the upper limit fixed by Section 4(3) of the Act.Contending that the gratuity scheme of the company had no upper limit, the employee approached the Claims Commissioner. The Claims Commissioner referred to Section 4(5) of the Gratuity Act, which states :”Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer”.Based on this, the Claim Commissioner ruled that the employee was entitled to the more beneficial terms of the scheme of the company, which had no upper-limit.Though Company took the matter to the Appellate Authority, and later to the High Court, the ruling of the Claims Commissioner was not disturbed.In the appeal before SC, C U Singh, Senior Advocate, submitted that the gratuity scheme of the company were meant for those employees who did not come under the ambit of the Act as per their wage-bracket as existed in 1979. Since the respondent was covered under the Act, there was no scope for applying the company’s scheme with respect to him. It was therefore submitted that the upper-limit under Section 4(3) of the Act will apply.It was further submitted that in terms of law laid down by the SC in Beed District Central Cooperative Bank Ltd vs State of Maharashtra (2006) 8 SCC 514 and Union Bank of India and others vs. C.G. Ajay Babu and Another (2018) 9 SCC 529 either the statutory provisions or the contractual scheme can be followed and not a combination of both the elements. In response, J.P. Cama, Senior Advocate for the respondent submitted that since Section 4(5) of the Act has been given overriding effect over other provisions of the Act, and as such, all that the respondent needed to show was that the appellant had a scheme for its employees (contract) and that it did not prescribe any ceiling and that such a scheme would be protected by Section 4(5) of the Act.At the outset, the Court noted that the scheme was not meant to apply to the employees who were in the wage bracket of the respondent.”The Trust Deed and the Scheme were executed and formulated in the year 1979 when the wage-bracket was a definite parameter for an employee to be covered under the Act. The intent of the Trust Deed and the Scheme has to be understood in that perspective. The idea was not to afford to the employees who are covered by the provisions of the Act, a package better than what was made available by the Act, but it was to extend similar benefit to those who would not be covered by the Act”, the bench noted.Therefore, it was not a case where the employee had the alternative options of the contractual scheme and the statutory scheme, as the respondent was not at all covered under the company’s scheme.”…for Section 4(5) to apply there must be two alternatives, one in terms of the Act and one as per the award or agreement or contract with the employer”, the bench observed.Further, referring to Beed District Central Cooperative Bank Ltd, the bench stated that an employee cannot choose a combination of the scheme of the employer and the scheme under the Act.”This Court laid down that an employee must take complete package as offered by the employer or that which is available under the Act and he could not have synthesis or combination of some of the terms under the scheme provided by the employer while retaining the other terms offered by the Act”, the judgment authored by Justice Lalit observed.On these grounds, the SC ruled that the HC was in error in upholding the directions of the Claims Commissioner. The company was held entitled to apply the upper-limit under Section 4(3) against the respondent.Click here to download judgmentRead Judgment Subscribe to LiveLaw, enjoy Ad free version and other unlimited features, just INR 599 Click here to Subscribe. All payment options available.loading….Next Storylast_img read more

Playing for new IPL team is like leaving old house: Raina

first_imgMumbai, Apr 5 (PTI) Suresh Raina, who willlead the new IPL team Gujarat Lions, says playing for a new team has a lot of challenges since it is like leaving behind the comforts of an old home. “Its like leaving a house after living there for eight years. That makes a lot of difference. I had played eight years in IPL. I have learnt a lot of good things from the seniors with whom I have played,” said Raina without naming his old, suspended franchise, Chennai Super Kings, at a promotional event for Gulf Petrochem. Raina said his new franchise had quite a few match-winners like all rounder Dwayne Bravo, who was part of recently crowed World T20 champions West Indies, and retired former New Zealand skipper Brendon McCullum. “We have match-winning players in our side. Dwayne Bravo is there. Brendon McCullum is there. That shows how much experience we have in dressing room. We are all looking forward to it. Now its a chance for a lot of youngsters to play for Gujarat (franchise). You see Gujarat did not have an IPL team before. Its a very good opportunity for the Gujaratis,” said Raina with 3699 runs from 132 games is the highest cumulative run-getter in the league. The left handed player said the Lions were lucky to have Bravo, his old CSK teammate, in its ranks. “I met him in Bombay (Mumbai) and I am very happy. I am lucky to have him in my team.” Referring to the World T20 championship, in which pre-tournament favourites India came a cropper against Bravos team in the semi final at the Wankhede Stadium here, Raina said ups and downs were part of sports. “We did really well as a batting unit. We also did really well as a bowling unit barring a few games. Its part and parcel of sports, some you win, some you lose. But I am happy for the West Indies. They played really well in the World Cup. They know the conditions. They know each and every player and how to prepare themselves in IPL.” “Just go there and smash (the ball). Its just what I had done with my old team and with the Indian team,” he retorted when asked for his goals in the IPL. PTI SSR NRB AT AT BASadvertisementlast_img read more