Friday, December 30, 2016

BHIM is here, New UPI app, work in both smartphones and feature phone

How to  use #BHIM App? 

The work is in progress, amidst the demonitisation spree, the e-wallets, credit cards, net banking and all modes of cashless transaction has a new and potent competitor, ruther I would call it a peer. Government with much fanfair, has launched its new UPI app, #BHIM.

I got a glimpse of it. Here you go with the step by step process.

Step 1. download the NPCI APP #BHIM. from your google play store (Android handset)

Step 2. Register your passcode. choose any 4 digit of your choice

Step 3. choose your bank
Step 4. set up account - The app automatically detects your bank account details. You have to just confirm with your debut card details.

Step 5. key in the details and set up your UPI PIN. 
You are good to go.

For people who don't have a smart phone or don't want to use the app just yet, your solution is *99#. The USSD code detects your account and gives you 4 options to confirm your bank account. And there on you can't transact easily, including fetchinh your account balance and seeing mini statement. 

Hold on! there is more information in store about the app, which I want to share with you.

1. It works like your debit card , not credit card. So, using other mode of transactions are not getting obsolete.
2. It has a spending limit of 10 thousand per transaction and daily limit of Rs. 20 thousand.
3. I can see 33 banks are supporting this app, including most of the major banks. 

4. You can even remind for payments using the app

My point - Great initiative by Indian Government towards financial inclusion and penetrating rural India will be swift on #cashless or #lesscash journey. However, savvy users have many more options which are equally or more rewarding as well as convinient. So, BHIM is going to have its peers running paralally with it in this country with immense diverse population. Welcome aboard #BHIM. You will definitely have a good journey with us. 


Wednesday, December 28, 2016

10 ultimate new year resolution to save money, be healthy and grow rich

It is not exactly the stuff you expect me to write on. But friends this is a holiday season, and I took a break from usual mutual fund, insurance stuff. The year gone by was eventful in many ways. Year of break-ups, Brexit, Tata sons, Trump, demonetisation, cyclone Vardha, not to forget the surgical attack! Most of the event made me sad! Never mind. I am determined to make a cheerful begining this year. And, I just can’t wait sharing those ideas to keep myself busy, with you all. Some money saving, some investment towards a truly rich life.

Second income
1.To pool is cool – I am a bit lazy to be a mumbaikar! But nevertheless canning it everyday is not disreable for your pocket nor a good choice. So, I have decided to use pool cab/share cab to share my ride and save some money. Dude, it’s eco-friendly too!
2. Save and then spend – Saving money is the most difficult thing to do is what I also agree. So, put the MUTUAL FUND SIP date fixed exactly next day to your salary. So that you can’t see the money in your account, consider it as an mandatory expense.

3. Don’t be in hurry – keep calm and enjoy life –Every action may not yield immediate result. Learn to be patient. Similarly, don’t judge your investment a and be restless for profits. Relax.

4. Redesign old clothes, accessories, furniture – The wardrobe cannot stay same for lifetime, however, we can always do some redesigning of your existing clothes and give a fresh look. It will renew your existing cupboard, you may need to buy fewer clothes. You may do similar by refurbishing your furniture, bed and sofas. 

5. Share your Pizza – If you cannot give up junk food, at least eat less! Always order when you have a company to share, splitting the bill may not be cool all the time, but sharing food is always!

6. Take up a hobby – Don’t get the feeling of getting bored creeping in you. It’s never made to take up a hobby. It will keep you fresh and happy. It will give your creativity a much needed outlet. Starting from knitting wool, baking cookies, pottery Painting, photography or writing poems. Do what your heart says. You will be a happier person.
7. Do a health check-up – This is for peace. You have the responsibility of your well being. Don’t wait for symptoms. Include a yearly health check-up in your diary. It gives you an upper hand over possible ailments. Stay healthy. Blood donation is also one way of keeping track of your health. It also serves a good social purpose.

8. Donate to your house-help – Philanthropy  has been always been a topic of discussion. Why not start at home? Either than looking out for NGOs, share your old clothes, extra groceries, books and furniture to them? It will enhance your goodwill than anything else. Do for somebody who is so closely associated with your daily life.

9. Window shopping is a good therapy – apart from feel good, my aim is to help you all save money (joking) but window shopping is real stress buster, if you haven’t planned a free day. Stop from Amazon or PayTM, but do pay visit to bear by shopping mall for some lone outing or with friends.

10. Enjoy 2017. A new year, a new beginning. Start a fresh. 

Wish you all a great year ahead 

Wednesday, December 21, 2016

Reliance Home Finance NCD issue, opens on Dec22, to invest or not?

#Reliance Home Finance, a fully owned subsidiary of #Reliance capital is set to make its maiden offer of secured and unsecured debentures on Dec 22, 2016.  

Year 2016 has seen an huge upsurge in Debenture issues by corporates, which were lapped up by investors. Following demonetisation spree and government’s endeavour to bringing down interest rate, corporate bonds appear to be a lcurative option . While lower interest rate should mean a positive move for the over all economy in the long run, the fixed income category is expected to see low return.

My take - 
The company has been growing consistently over last 5 years and has ability to pay the interest on the loan. However, the business is particularly interest rate sensitive and dependent on the growth of housing sector. 
NCD offers higher return, it comes with a higher risk. The secured NCD didn’t recieve the highest credit rating. Unsecured NCD, by nature is not backed by any security or assey making it a high risk investment. Conservative investor should avoid the unsecured NCD completely.
The retail investor can however look at some exposure in secured NCD category.

What is NCD and what makes it so attractive 
NCD is a fixed income instrument. Apart from taking bank loans, Corporates and NBFCs raise money through issuing debentures. It is a financial instrument issued by corporates to support their business needs. There are two type of debentures, convertible debentures and non-convertible debenture. Convertible debentures are unsecured bonds and can be converted into equities or stocks at a future date as specified by the issuer.

NCD is financial instrument used for taking loan from the financial market. It cannot be converted into equity shares of the issuer in a future date, hence it offers higher interest rate. The NCD offers atleast 1.5 – 2% higher interest than any fixed deposit by a reputed bank and company deposits. NCDs come in both secured and unsecure form, secured #NCDs are backed by assets. Unsecured NCDs entails higher risk. 

Added Edge
1. What makes it more attractive is, in the falling interest regime, the bond prices may surge, hence the value of the funds. 
2. No TDS deducted on the demat form of investment (physical form does) 

Points for the new investors
1. Once you come to know about a new NCD offer, check with your stock broker for online application.
2. Like any other IPO, it has a NCD comes with opening and closing dates
3. NCD offers coupon rate. Coupon rate is the interest rate paid on a bond by its issuer for the term of the security. For example, if a NCD issue comes with a face value of Rs. 100 and coupon rate 10%, the interest earned will be Rs. 10 per annum. However, in the tenure if the NAV price falls or surge, it will have no impact on the interest pay out, it will continue as Rs. 10 per year throughout the tenure. Hence, coupon rate is fixed on the offer price and continue through maturity  
4. Check for the credit rating allotted by #ICRA, #CRISIL, #CARE (triple A rating Suggest good financial health of the issuer, double A may give higher coupon rate, triple A ensures safety of your capital) 
5. NCDs are also traded on stock exchanges. Apart from the new offers, investors can also buy exiting NCDs through stock exchanges, however, one need to be double careful and seek guidance from financial planner.   
6. Interests are generally paid through direct credit, RTGS, ECS and NEFT mode. It may offer monthly/ quarterly/ annually/ cumulative options. 
7. Tax – The investment is taxed at short term (less than a year) and long term (debt investment more than a year are taxed at 10%) depending on the holding period. The interest will be taxed as per the tax bracket of the investor.
8. This is as liquid as a bank fixed deposit. However, there is no penalty fee for pre-mature withdrawal of this investment
9. Additional Features – Some NCD public issues offer special rate of interest to Senior citizens or to shareholder.

1. It’s #liquidity is as good as any fixed deposit in bank, which has a specific tenure but can be withdrawn any time. However, FD may charge a penalty fee on interest accrued.. but incase of NCD, there is no penalty. 
2. If it is compared with company fixed deposit, company deposits (a popular instrument in the senior citizen segment with 0.25- 0.50% extra interest)comes with various conditions for pre-mature withdrawal, for eg – lock-in periods, penalties etc. 
3. NCDs come with Rating from #ICRA #CRISIL #IndiaRatings #CARE which gives a clarity to the investor on the risk involved, higher the rating, lower is the risk (AAA being the highest category, followed by AA, A, A-, BBB and so on)
4. Incase of bankruptcy, NCD holders get preference over shareholders

1. Incase interest rate increase, the value of the NCD may fall, sometimes even below the Face Value. 
2. The low credit score of instrument indocates lower epayment of interest and the actual amount capacity of the borrower.
2. Though, the instrument can be traded on the exchanges, one may not find a buyer for NCDs if the trade volumes on bourses are low. 
#reliance not #mymoneystreets

Tuesday, December 20, 2016

Bajaj Allianz is all set to bring an ultimate inclusive term insurance plan for all

Term insurance is making its place in India with its own right. The beauty of the pure insurance product has charmed the savvy Indian investors and steadily catching up with all. 

What is a term insurance ?
Term insurance is the purest form of life insurance with no strings of savings or investment attached to it. It is known for providing a lump sum benefit incase of unfortunate death of policyholder. It is an ultimate protection plan for the claimant.

Who should buy term insurance policy? 
Term insurance is one of the most important financial instrument for every earning individual who has dependants to look after. The tenure can vary from 10 to 40 years. However, generally the cover is extended till upto 70 years of age.

Affordable premium for high coverage 

The benefit which make it most attractive to the younger generation is it’s low-cost pricing. The pricing is extremely affordable compared to the other forms of life insurance with a high monetary coverage for the policyholder ensuring unforeseen situation doesn’t cause financial distress. It’s best to buy the insurance policy early to lock-in a low premium for the entire term. With every passing year, the premium cost increases, entering early has it’s own advantage. So, with increased age of the policy holder, premium increases significantly. Two other important factor which affects the premium are the lifestyle of the policyholder (smoking/drinking habits) and nature of profession, individual with life risk exposure in the job, will fetch higher premium.

What do we expect from a friend? To be flexible, helping and being around through ups and downs and sail through the #IfsOfLife. This product aims to be just that. This product aims to protect you and your family like that best friend, who will help you in sail through all tough times.

What is so special about the new product by Bajaj Allianz Life Insurance company?
Looking at the growing interest on term insurance plans, Bajaj Allianz has designed an inclusive product which will not only provide death benefit but also extend a caring hand incase of critical illness or permanent disabilities.

Isn't it great if an insurance product is committed to you for life, like your best friend, staying around and helping during the toughest phase of your life. Many a times it is not untimely death, but a critical illness or permanent disability caused by an accident which leaves the family morally and financially down and distressed. This product will be an answer to these unforeseen circumstance. And all these can be done with few clicks! Starting from choosing the right protection amount and tenure, term, and additional benefits which is a flexible choice. It also will encourage the buyers to do a thorough check on inclusions and exclusions.

Bajaj Allianz, a joint venture between Allianz SE, the world’s leading insurer, and Bajaj Finserv Limited an established name in the life and non-life insurance segment. It has done an extensive research to develop the insurance plan keeping in mind the changing lifestyle of the progressive Indians. The gen Y is now aware and accept the concept of pure insurance and increasingly opting for term plans which offers adequate cover at rational pricing. 
I am eagerly waiting for the launch of the new life insurance product by Bajaj Allianz @BajajAllianzLIC, on 23rd of December 2016 in Mumbai. #IfsOfLife

Monday, December 19, 2016

Top 10 common exclusions in health insurance policies

Often I hear from family and friends that '#health insurances plans are bad, as they don't pay'. It gets very difficult to reason with them as they themselves have gone through some bad experiences on claim settlement under #health insurance policies.

With growing healthcare cost, #Health insurance has become unavoidable part of financial planning. It helps us plan for unforseen medical emergencies. Not only financially, health covers acts as an emotional support system. So, it is prudent to check few medical insurance options before finalising a health cover which suits your needs and fits well with medical history of the family. All health insurance products have different sets of offerings, sub-limits and exclusion clause. Here, in this article my idea is to share some of these common exclusions in the health insurance policies.
When you decide to buy a health cover, it is an agreemeent you are about to sign based on mutual trust, that you are disclosing correct information about yourself for an agreed premium, and in return, the insurance company is bound to help you with financial support based on agreed terms and conditions. You may take the cover from private health insurer or public insurer. Check the contract twice or more to confirm on all the details.

Top 10 common exclusions in health insurance policies

1. Complete exclusion on diseases - There are certian diseases which are permanently excluded from the lists. Diseases which are sexually transmitted like HIV infection or AIDS, and others. Diseases caused by alcoholism, drug abuse etc. This is applicable for individual insurance as well as group health policies

2. Pre-existing conditions - Health Insurance companies have clause set for treatments on pre-existing diseases. It also dont cover pre-existing bodily injuries of accidents. It can very from 1-4 years depending on the insurance company and the particular policy in question.

3. Sub-limits on expense heads - Though the insurance company is liable to pay upto complete sum-assured of the insurance policy, certain expenses like room rent, doctor fee, medicine expenses may come with a cap of certain percentage of the sun assured. For example, if any policy has a cap of Rs. 2000 on room rent per day, and the actual rent paid is 4000, the policy holder has to cough up the extra Rs. 2000, even if the total treatment cost is below the sun assured.

4. Hiding medical/family medical history - this is considered to be breach of trust by the insurance company. If any existing disease or medical history undisclosed in the policy contract, insurance company has the authority to completely reject the claim settlement application.

5. Alternative treatments - ayurveda/homeopathy/Unani- Though IRDA is taking more inclusive approach towards the alternative based on growing demand on Homeopathy, ayurveda etc, still many insurance policies don't provide for it or come with cap on the expenditures.

6. Pregnancy and childbirth - Insurance as a financial product is designed for emergency/un-prepared events, pregnancy doesn't come under that. Hence, insurance policies don't cover pregnancy, miscarriages, child-birth untill otherwise specified. Few policies do cover this with a higher premium and a minimum waiting period of 2 years.

7. Cosmetic surgery - Any cosmetic corrective surgery etc is not covered by insurance companies.

8. Injuries during war, neuclear radiation - The insurance company protects itself againstassive losses arising from major threatening situations like war/ public agitation related injuries etc.

9. Treatment for weightloss/gain, and other corrective dental or eye surgeries - surgery or treatment related to weight loss is gaibs are excluded for  the list. Any corrective dental surgery or are surgery unless from accidental injuries are not covered under health insurance.

10. Injuries related to proffesional or hazardous sports - injuries caused in proffesional sports are not excluded from the cover.

Depending on your comfort-level you may buy online health plan or opt to call your financial advisor.

#Health insurance being one of the top three priorities in #financial planning, it deserves a certain amount of attention from the policy holders more than just financial security.
#health insurance #financial planning 

Wednesday, December 14, 2016

Woman Entrepreneur who dared to follow her dreams and dig into her Savings to build her Business

Investing right can help you follow your dreams, the following interview just reiterates that.

Few stick to their jobs, few take breaks and few daring souls follow their dreams to be an entrepreneur! While writing on various aspects of personal finance, One day I felt that a first hand account of financial planning would be better absorbed by all than any gyan session. So, I planned to interview some Women Entrepreneurs, who left their settled jobs, used their own savings to start new ventures and continued the journey through ups and downs and business cycles. It is not only about managing money or registering growth numbers, it’s also about taking that first step and trusting one's ownself. This would be a monthly interview series dedicated to budding Women Entrepreneurs around us. 

This is a story of lively Gunjan Varma, a loving daughter, a doting sister, a pretty wife and a caring daughter-in law, who started her career as Marketing Trainee at DNA in 2007, fresh out of Symbiosis Institute of Management Studies and launched her own business after 5 years, “Something Else” in 2012, now established in North and Western India.

Tell us about your journey from DNA to Something Else
Gunjan: I completed my MBA from Symbiosis Institute of Management Studies and joined DNA Newspaper in 2007 in Corporate Sales and Print Innovations, Mumbai. I moved to Fever 104 FM at Delhi post that as Manager, Corporate sales in Radio. Both these jobs gave me a small company environment even though they were backed by established Media Houses. 

I made an inter sector and function move with Citibank. I joined them as Acquisition Marketing Manager for their S&D Division. The move from Sales to Marketing & Planning and Media to Banking was quite a feat but wasn’t as smooth. I had a team of 10 Sales Managers aligned to me with 15-20 Sales Executives under them. My profile was to create “Sales opportunity Points” for these sales executives on a daily basis through various channels. It was a heavy task but over a 2.5-year period, our division broke-even with the help of an amazing and hard-working team. During this time I had good exposure on Sales & Promotions and to vendors and chanced upon the idea of Gifting which culminated in to “Something Else”. Now, 4 years on, we plan to look at new avenues in to gifting with our Handmade and Handicraft products, Collaborations with various other partners and Consulting. 

How did your seed funding come along ?
Before taking the leap, i worked in the corporate sector for 5 years which helped me gain experience and also save. I used my personal savings from here to start my venture and boot strapped it. Its only now that i am seeking external funds. 

Who were your pillars of strength during trying times?
My parents have been the reason for where i am today professionally and otherwise. They have always supported me in my decisions and stood by me in good and tough times. 
I am fortunate to have met my husband, Kaustav, who changed my perceptions, broke mindsets and made me experience love and life. He is also my strongest critique which pushes me to get better at my game. Along with that, i am lucky to have a few close friends/mentors who just emerge from nowhere whenever i need them in life. 

Tell me more about "Something Else"  What do you offer?
Something Else is a #corporate gifting firm operational in Delhi and Mumbai catering to clients across India. We have a strong vendor base in North and West India and a steady stream of regular clients.

Our products range from Office Desktops to Promotional Products to Electronic products to Luxury Items and Gourmet Hampers to Handicrafts to Merchandise. 

Are you insured
I do have Health Insurance and a ULIP. I personally do not believe in Life Insurance
Do you invest? What are the avenues?
I started investing early on in life, which i feel is was a smart move i made courtesy my dad. I started my PPF account with in a year of starting work. It is a safe long term 15 year investment which gives best returns and tax saving. I also invest regularly in SIPs, Mutual Funds, Bonds and Fixed Deposits. 
For my company, i utilize Liquid Funds which i can access within 24 hours.
What are your long term goals? House/cars/vacations? 
I would like to have enough disposable income to live comfortably and be able to travel for atleast 15-20 days, twice a year. We also plan to have a cafe/ retreat in the hills somewhere in the long term. I also want to do philanthropic work for a few causes close to my heart.
Are you saving/investing for it? How?
I have been saving in various financial instruments but the key is to not just save more but rather create more wealth. I believe in creating multiple sources of income, both passive and active. My company currently is my active source of income. I am trying to create other sources through Writing, Public speaking and investing in property. 

Any message for the women investors?
Do thorough research from all sources, talk to people and get all facts together to form an opinion about any financial instrument before investing. A lot of times we tend to put our full faith in recommendations by people without fact checking ourselves. 

#womenentreupreneur #somethingelse #financialplanning #giftingideas

Sunday, December 4, 2016

How to have a #second source of income? It can be enjoyable too

I keep attempting ways to share the benefits of saving, investing, spending smartly, I just realised there are other ways of generating #second source of income too apart from investing. The way is simple! to just follow your dreams, hobbies and passion. Not only it can earn you a pocket money, sometimes much bigger than that, but can definitely bring in a sense of joy, rejuvenation, recreation which can boost your self confidence. It can work wonders to your daily mundane life! I have collated some of it through my personal experience and first hand experience of friends and acquintances, who made use of these interests. Few of them started as a hobby and continued, few, made it their main proffesion and way of living.

1. Hobby classes - Does it remind you of the leaflets inserts in your daily newspapers? about cookery, baking, pottery, mehendi tattoos and learning English speaking in just 4 classes? yes I am talking about those classes, which are popular in summer holidays. If you love baking, cooking, or any activity which can be taught in few classes and with minimum material and spending. Plan it in the next vacation season. Go print those leaflets

2.  Private tutions -This is a hobby which is nurtured and driven by real passion for it as this is a long term commitment. If you really like a particular subject and having a knack for teaching, you may advertise for it and teach in your free hours over week and weekends to kids or college goers.

3. Blogging and vlogging - A real passion driven hobby it is. Apart from flair of writing, clicking videos, one need to have interest for expressing his/herself in an engaging manner. Monetizing a blog/vlog requires a long term commitment and patience.

4. Photography - This subject is easiest to capture (if you are good at it, ofcourse!) you can build a portfolio on your own by clicking your favourite subjects. For example, if you like wedding photography, make a portfolio of photographs you click on weddings and start out with sharing your work in your network.

5. Painting - Many people don't have the patience or guts to make it a full-time proffesion, yet you can start out again, and making ir your #second source of income. There are network of amature painters, galleries to help out.

6. Entertainment - like playing guitar? piano or a stand comedian? you can earn your way through enjoying weekend evenings by networking and reaching out to the right people and showcasing your talent by teaming up or going solo.

7. Crafts - Like decorating wedding gifts? or love making your own sling bags? why don't you just make samples and start out by sharing it in whatsapp and Facebook groups?

8. Chocolate/bakery/catering - This can be a perfect distresser for weekends. If you have a good networking skill, you can take orders for home bake cookies, cakes, ice-creams. If you are well equipped with infrastructure and helping hands, you can take small weekend party/gathering orders for meals and more.

9. Investing - Like saving, investing? buy high dividend paying stocks, also can opt for dividend paying mutual funds. It will generate you some extra income in regular intervals.

10. Hospitality@home - If you have a big home and can spare extra room or two, you can list yourself in airbnb and other sites to host paying guests for short period of time. If you like cooking, your friends and family goes gaga about your skills, you can also organise paid lunch gatherings over weekends by doing small bit self marketing in your network as well as social networks like facebook, Twitter etc

The above mentioned concepts of earning #second income are easier said than done.These hobbies need nurturing and good networking. The better networking skills pay off. So, keep in touch with like minded people and showcase your talent whenever you get an opportunity. Every effort towards these are worth it, if it makes you happy. Stay happy, stay cool.

#second income #extra income #mymoneystreets

Saturday, December 3, 2016

Top reasons for claim rejections in term insurance policies

LIC with highest #claim settlement ratio above 95%, smaller private players faired at about 76-80% only. As the premium for #term plans of private insurance players for #term plans are much lower, so is their #claim-settlement-ratio. The insurance companies blame it on the #policy holders.

Have you ever bought an ice-cream without checking the flavour?

Have you ever done a haircut without a mirror in front of you, giving the scissor and your head to your hairdresser without discussing which look you want and took a beauty sleep when you were getting a new look?

Do you ask your vegetable vendor to chose vegetable for you or you chose yourself?

Do you simply walk-in at a 5star restaurant and order a meal without looking at the menu?

If most of the answers are in negative, I would like to know, do you look into the documents and terms and conditions while buying an insurance policy? If you are nodding your head in affirmation, it is a much bigger concern compared to any of the topics discussed above.

There are about 10% of all death claims in term plans get rejected mostly because of callous attitude of the policyholders, putting the near ones in a bigger mess after death. While choosing right amount, right insurance company with high-claim settlement ratio is important, it is equally important to go through the documentation and complete the necessary processes to obtain the insurance contract papers.
Top 5  reasons for rejection of #death claims

1. Dependence on insurance agent – The insurance agent gets a commission when he sells a policy, for him it is just another deal. He may be your best friend’s brother, but still may not be well aware of minute details which needs to be filled in the form, a small human error in date of birth/profession/annual income/source of income can cost your family members thee policy amount additional to the emotional trauma of life loss

2. Hiding personal details – Nobody is a fool here, certainly not the insurance claim settlement officers. So if one hide about nature of profession (with life risk) like in mining/fire-fighting will take no-time to decline claim incase of accidental death at work. Many a times to hide a small additional premium policyholder hide their lifestyle habit of smoking/drinking, it will cost

3. Not utilising the free-look period –there are many fine prints of inclusions and exclusions in a insurance policy document. To enable policy holders to take informed decision, the insurance policies have a feature of free-look period of 15-30 days, within which policyholder can  cancel his policy citing dissatisfaction and opt for any other policy. Policyholder is reimbursed the premium after deduction of minimum processing and medical test charges incurred by the company. This is the best way to be sure of what are you buying as a guarantee for your loved ones after your death.

4. Improper nomination – Life insurance Policy is a very long term investment. Many a times policies are bought by unmarried individuals, they nominate their parents as nominee, as time passes by, gradually nomination needs to reviewed after marriage or death of parents, so that settling claim doesn’t suffer due to ignorance in documentation work.

5. Policy lapse – Keeping your policy alive is solely your responsibility. Pay your premium timely. Generally, insurance companies have a grave period of 15-30 days after the air date, failing which, your policy is considered to be lapsed, and no chance of #claim settlement

6. Suicide/missing person case – This area has little less to do with the adhering to policy rules, but one must not now out noticing this part of the agreement. Incase of suicide within first two years of policy, many insurance company can simply reject the claim. Missing person claim is one more painful thing to handle for the family members. Often in calamities or terrorist attacks, many deceased persons cannot even recognised or the deadbody is simply buried beyond recovery, in this cases, insurance companies follow the list shared by government. If the policyholder’s name doesn’t reflect in the list, insurance companies will follow 7 year rule. Under this rule one cannot claim settlement untill 7 years and within these years, the family members have to keep the policy alive by paying regular premiums.

The point here is about taking informed decision and doing a  periodic review of the insurance policy to avoid inconvenience in future. Stay happy. Stay alert.

#term insurance #claim settlement #insurance policy #life insurance

Thursday, December 1, 2016

Ladies, Yes you can buy mutual funds, check which one suits your needs

    This article is dedicated again to the beautiful ladies often puzzled between the investment options. The point is not that which product is right. Every product has a certain objective and investment philosophy attached. Every individual is different and so are their investment requirements. Few of us need to keep extra cash in hand, few of us are planning a trip abroad after 2 years, and few are saving for child's higher education. For every stage of life we have certain area to focus on. For these goals, one need to invest in the right investment vehicle.

    Financial awareness important for women

    #Mutual fund as an investment vehicle is an easy answer for all these worries. For every time horizon for our investment, there is a category of mutual fund.

    Mutual fund caters to investors of all risk appetite. From a fresher at a job to a middle aged employee, retired pensioner to a small retailer.

    Mutual fund has schemes designed which manages wealth depending upon the risk profiles of diverse set of investors with various time horizon for investments.

    For example, an investor who wishes to get fixed returns like bank deposits on his investments and has a investment horizon of less than one year can opt for debt funds like - liquid funds, ultra short term funds. These funds have very low risk and manages to offer better return than savings account and short term deposits. These funds invest in money market instruments, ultra short term government securities etc.
    An investor with time horizon of 1-3 years can invest in short term debt funds, dynamic bond funds. These funds are also low-risk products and offers higher return compared fixed deposits of banks of the similar tenure.
    An investor who has a medium term horizon 3-5 years can opt for balanced/hybrid funds which are debt centric. But also have some exposure to equity giving it better capital appreciation with a limited market risks. Investor with over 5-7 years horizon can look at equity based hybrid funds.

    Where the downside risk is mitigated by the debt portion and opportunity to take advantage of the upside of equity markets.

    For an young investor or any investor has a long term goal, pure equity mutual funds - like Large-cap funds are the best option to begin with. Over long term equity mutual fund is expected to give much higher inflation adjusted and risk adjusted returns.

    Why we are obsessed about ELSS mutual funds 
    5 reasons of choosing mutual funds over direct investments

    1. Individual good quality share comes at high price, where in mutual fund SIP can start with as low as Rs. 500 for monthly instalments
    2. Buying and selling direct equities within a year attracts capital gain tax, and high brokerage, mutual fund managers can keep transacting at any point of time, investors don't need to pay any taxes of he holds the equity scheme units for more than a year.
    3. Investment in mutual fund is manged by a experienced research and find management team which is difficult doing at individual level.There is a guideline defined in the asset allocation capping exposure to individual companies as well as sectors.
    4. Mutual Fund team has a risk mangement team in place which assures the quality of the investment and proper due-diligence to mitigate various risks which also enable fund managers to manage funds and sell risky security at right time.
    5. Liquidity - Mutual funds can be easily bought and sold online over few clicks and the payout is 1-3 days, making it convenient for investment.

    #Mutual funds #equity schemes

    Sunday, November 27, 2016

    Note of Rs.500 are still useful

    Issuing fresh guidelines on the banned Rs 500, and Rs 1,000 currency notes on Thursday, the Narendra Modi government has stopped the exchange of old notes over the counter at banks from Friday. People will now can only deposit notes in their accounts and then withdraw new currency either through cheques/withdrawal slips or ATMs.
    “There will be no over the counter exchange of old Rs. 500 and Rs. 1000 notes after midnight of 24.11.2016,” said the government in a statement.
    But, the people can still exchange their old Rs500, Rs1,000 currency notes at the Reserve Bank of India (RBI). The RBI on Friday clarified that it will allow exchange of old Rs 500 and Rs 1,000 notes at its counters up to the limits applicable per person. No last date has been set for such exchanges.
    In another significant step, the government has extended the use of old Rs500 note at petrol pumps, government hospitals, and some other public utilities until 15 December. But the Rs1,000 note will no longer be accepted by these utilities.
    Here is the list of utilities and services which will still accept the old Rs500 notes:
     Petrol pumps and toll plaza.
     School fees up to Rs2,000 per student in central government, state government, municipality and local body schools.
     Fees in central or state government colleges.
     Pre-paid mobile top-up to a limit of Rs500 per top-up.
     Purchases at consumer cooperative stores such as Safal or milk booths such as Mother Dairy outlets operated under authorisation of central or state governments with identity proof up to Rs5,000 at a time.
     Payment of current and arrear dues to utilities will be limited to only water and electricity and only available to individuals and households.
     Government hospitals for medical treatment and pharmacies for buying medicines with doctor’s prescription.
     At railway ticketing counters, bus ticket counters of government or public sector undertakings and airline counters at airports for purchase of tickets.
     Use at international airports for arriving and departing passengers up to Rs5,000.
     Purchase of LPG gas cylinders.
     Payments towards on-board catering during travel by rail.
     Purchase of tickets for suburban and metro rail travel.
     Purchase of entry tickets monument maintained by the Archaeological Survey of India.
     Payments towards fees, charges, taxes or penalties, payable to central or state governments including municipal and local bodies.
     Payments towards utility charges including water and electricity, but no advance payments.
     Payments towards court fees.
     Payments towards purchase of seeds from designated state-run outlets.
     Payments at crematoria and burial grounds.
     Foreign citizens will be permitted to exchange foreign currency up to Rs5,000 per week. Necessary entry to this effect will be made in their passports. The Reserve Bank of India will issue further guidelines in this regard.

    #500 #1000 #demonitisation
    News source -

    Saturday, November 26, 2016

    Did you know about more than 100 rewards for going cashless!

    Here at #mymoneystreets I am committed to bring to you best way of utilising your money. This post is an dedication to demonitization. 

    Demonitisation, banning of Rs. 500; 1000,bank queues, ATM lines, limit on withdrawal etc have become part of our every conversation in last 15 days. Our daily habbits of tendering loose cash for every transaction has become a difficult task, and if you have some notes of Rs.100 on you, you are no less than a local celebrity. Amidst all this, there has been a huge and consistent shift happening towards the way we pay for our bills. With no loose cash to spare, people had been cutting down on unneccesary expenses, forcing it empty retail stores, restaurants, leisure activities. But it cannot continue forever. Thanks to the first movers like #paytm #ola, now numerous retail and B2b businesses opening door for #cashless transactions.

    I was astonished to see the local and nationwide convenience offers and discounts spread accross newspapers, Facebook, Twitter, e mailers, messages to promote products and services.
    In this post I have listed down more than woo offers running and few might have closed as well just for your reference. Make the best use of it.

    Shopping online 
    Amazon - Offering 15% off on buying Amazon cards as well as other products. Use code -CASHLESS
    JABONG - 25% OFF on payment through debit card/ credit cards on purchase over 999
    MYNTRA - 25% off on purchase over 1299 on payment by debit card/ credit cards
    Flippant - Offering 10% discount
    Pizzahut - Offering 1 on 1 free for online transactions. - offering Rs.200 off on online payments
    Snapdeal - Offering 10% instant discount on all card transaction. They have come up with other deals as
    Homeshop 18 - Offering discount on products ranging from kitchen, clothes, homeware, appliancesetc, upto 60% off -offering upto 60% discount.2
    Fine jewellery by Sneha Rateria - 15% discount on everything. Code - NOV15
    GETMYCOUCH.COM- offering upto 15% extra discount on shopping cashless. 
    missamore- offering 15% discount on paying through PAYUMONEY
    FABULER.IN - fashion website offers 10% discount on cashless payment. CODE - FBSAVE10
    JUNKD.IN - online accessories portal offering 10% discount on all online orders
    CODE - CASHLESS - Offering 15%. USE CODE - FNPFEST15 - Offering discount of extra 10% on online payment - e-commerce portal for organic products offering discounts and cashbacks - Offering upto 60% off on #cashless sales drive 
    offering 5% discount on all purchase. CODE - CASHLS
    Jazzmyride - online shop for crazy car accesories offers extra 5% off
    Krafts kart - discount of 80% on imitation earrings
    Dealstantra - offers 15% off upto Rs. 300
    Crispydeal - Flat 25% off on grocery

    Government initiative to boost cashless payments 
    Homeloan repayment relief for 60 
    IRCTC - No fee in debit card payments till 31st Dec. 
    No transaction fee in debit card/ credit card for merchants

    PAYTM For consumers - wallet limit increases to 20,000 from initial 10,000
    PAYTM for merchants - New version of the app allowing small merchants to accept payment through credit card /debit card
    mycashlesswallet- ewallet offering upto 40% discount/
    JIOMoney app - Offering 10% cashback at Reliance Fresh and Reliance Smart stores
    Freecharge - NO Collison, nil charges for funds transferring to bank
    Mobikwik - partners with NHAI for toll colloection
    Mobikwik - Offering upto Rs200 of on recharge and bill payment
    Airtel money - Offering 5% cash discount on all utility bill payment
    Times cards - (debit/credit) Offering upto 30% off on movies, dining, travel, shopping etc
    SBI card Elite offering discounts and benefits at Shoppers Stop, WestSide, M&S

    Electronic special 
    Google Pixel - HDFC BANK credit card/debit card offering 7000/- discount
    DELL PC offering interest free EMIs

    Future group announced 5% additional discount on cashless transaction
    Spencers - offering discount on cashless
    Reliance Fresh - Offering discount on cashless payments
    Asmi diamond jewellery - announced 10% additional off on digital payments
    Hilite Mall @Kalikut offering 10% discount
    Tommy Hilfiger - Offered discounts
    Benetton - offered discounts
    Marks&Spencer's - Offering additional cashback of 10%
    Pepe offering 5% discount on cashless
    PUMA - Accepting cheque payments from loyal customers
    BIG Bazaar - CASHLESS transaction rewarded with 5% additional discount
    Ocean Fruit Water - Paytm cash Rs. 20/-
    Admyrin - An online shop for women offering 10% extra #cashback

    Pharmeasy offers 20% off on all medicines
    Oxysquare - a platform for doctors, offer 50% discount ondoctor consultation fee
    Apollo pharmacy - FMCG - 5% pharma 10% appollo products 15% discount using IDFC cards
    Netmeds - Free medicine delivery and 20% off

    FOOD and restaurants -  
    Zomato offering 15% discount  offering Rs.250 off on orders above 1500 and Rs.500 off on orders above 2500
    Didz app offering discounts on restaurant and pub deals
    Mealskart offering discounts and cashback
    Dineout card offering cash back of 20%
    Gourmet Delight - shop for farmfresh produce, cheese etc offer 10% discount on cashless transactions
    Niche cafe bars - Flat 25% off
    Veggie 24*7  - 10% discount
    Crownit - get extra 20% discount when you pay with crownit
    Swiggy - online food aggregator offering Rs. 75 off on first bill above Rs. 1500.
    Nature's Basket - Rs.55 cashback on #rechargeadda
    McDonald's offering frozen coke on cashless transactionsp
    Hyderabad restaurant "Chutney's" offered 25% discount to customers who paid Rs. 100 notes
    Dunkin Donught offered 25% off on debit/credit card payment
    Foodelite online offering 10% discount


    Mercedes Benz - Offering 3 years insurance + 3 years maintenance + 3 years buyback
    Maruti Suzuki RItz - cash discount of 35,000 and exchange 
    Maruti Suzuki Celerio - Cash discount of 25,000 and 10,000 exchange bonus
    Maruti Suzuki Swift desire - cash discount and exchange bonus
    Wolkswagon offering 0 zero down payment. Exchange benefit 10,000 and loyalty benefit 10,000
    Hyundai Verna - Offering 0 downpayment
    Hyundai EON offering 0 down payment
    Hyundai i10 offering 0 down payment offer till30th Nov
    Mahindra SUV Rs.101 down payment for Newgen Scorpio,KUV 100, NEW AGE XUV 500, Bolero, TUV300 offer till 30th Nov 
    HONDA Cars- zero down payment till 31st Dec
    HERO Scooters - Available on Rs. 5000 downpayment. HDFC bank also offering 100% finance
    Bajaj Bikes - zero downpayment offers

    OLA- offering Rs. 100 off through OLA MONEY.
    OLA letting customers pay through credit card/debit card
    OLA offering 150 off on HDFC cards
    OLA has launched post paid s
    MERU offering 25% cash back upto Rs. 150

    Leisure and Miscellaneous
    PVR Cinema offering 35% off on fnb on mobile app
    PVR Cinema offering 20% off on first app transaction
    PVR Cinema waived convinience fee on online tickets
    CINEPOLIS - Offering 30 % discount on online ticketing
    Bookmyshow offering Rs. 150 off on movie tickets
    Flat pebble - an online portal for personalor  events, offering discounts upto Rs. 2000.
    SNAPMINT - A digital lending market place for education, shopping, personal loan, tied up with Edify Furniture and Vijay sales for interest free EMI
    QuikrHomes - launched cashless managed rentals
    Imagica, theme park- offering host of benefits on cashless transactions
    Option pass - Free shopping pass for good, grocery, clothing, flights, hotels at offering upto 25% additional savings
    Multiplexes waived parking fee initially
    Timesavez offering 15% discount on cleaning services

    YATRA.COM offering upto Rs. 1000 discount on HDFC debit/credit cards
    Makemytrip offering flat Rs. 800 discount on flight bookings
    Jetairways -offered all inclusive fair of Rs.999 for your days till 19th Nov.
    Airasia - Big sale week offered fair from 999 till 20th Nov 
    Airvistara - Offered travel from Rs 999 for 3 days ending with Nov
    SpiceJet - offered spicecash award

    These offers won't last forever, so hurryup and make most of this #cashless #fest

    Thursday, November 17, 2016

    Money goes digital - how do I do online transactions

    Online transactions are easy, safe and convinient. There is no tension of getting theft or losing money in the crowded market place or in a hospital. It is accepted every established shops, cinema hall, jewellery shops, hospitals even can services.

    It wasn't any different day for Rajiv, he woke up, looked at his mobile, checked the news app, freshenup, got ready and booked an UBER cab, today he had got Paytm offer, so paid by it. He got down right at the office door, he found many people gathered in groups discussing #demonitisation. Though he wanted to share his views too, but he was running late and wanted to have breakfast at office cafeteria, he had a full plate chole nature and paid by his preloaded card and entered his desk. His work was going smooth with occasional interruption with the demonitisation of currency, suddenly a reminder popped up! it was his fiance's birthday and he had forgotten it. An idea struck his mind, he checked and found an online offer on cake and bouqet, he paid through credit card and ensured a delivery to her office within 1 hour making it a real big surprise for bday!
    Day passed by and he managed very well with cards, net banking,credit cards, pre paid card hardly disturbing his daily routine.

    But this is not the case with all of us. It's high time we understand the benefit digitisation of money and ease of using it. 

    How do we get at ease with digital transactions

    There are atleast 6 broad category available to make most of your money digitally.

    1. Net banking - Most of the time it is sheer inertia or misconceptions to create a net banking account attached to your existing savings account more than fear of online money theft. This has become all the more convenient with the launch mobile applications in the same. One can use it for checking balance, create fixed deposits, recurring deposits, transfering money to other accounts, pay utility bills, credit card bills, buy mutual funds, insurance and even apply for #IPO. For transactions, one can opt for #NEFT #RTGS #IMPS options available in the website itself. These secured transactions with password and security check through mobile varification.

    Debit card - This is the oldest form of plastic money. Very common yet less used in transactions other than withdrawing money from ATM. With the ATM PIN, one can use it for online transactions as well as at merchant counters i.e. shopping, dining, movie tickets everything. 

    Credit card -This mode exist as long as debit cards, but this is a tricky one. This is not your money, this is a short term loan which attracts very high interest on non payment in he stipulated time. This is a good mode if one uses responsibly. 

    Online wallets 
    This segment is picking up in India. This wallets can be loaded with money using netbanking and can de used in small amounts.The best part about the online wallet is transaction gateways are not exposed to the bank accounts, hence safer. These are like actual wallets and money can be transfered to anyone with the same online wallet. #Paytm #MPesa are some example of e-wallets. There are some charges attached when you transfer the wallet money to your own account.

    UPI - It is government's answer to e-wallet.It is an interface through which account holder of one bank can transfer/receive money to someone having account in same/different bank through smartphone. Multiple bank accounts can be linked to a single cell phone. The transaction takes place through virtual address hence, no requirenent of bank details There would be no need to enter bank details.Transaction can be authorised by entering either Aadhar card number or mobile phone number. It can be used for shopping, Bill payments etc.

    Prepaid cards - It is nothing but your own money loaded in the card, can be used like a debit card, howeve unlike your debit card it is not attached to your savings account

    Sunday, November 13, 2016

    Women! Be financially aware, even if you are non-earning member

    Financial freedom hidden in 10 questions

    It's been a common feature with women friends across, they are updated with the latest accessories, dresses, perfumes, best hobby classes for their children, best smartphones, best discount shopping sites, best restaurant apps, deals for everything under the sun and the moon! But, ask her about what is she doing with her hard earned salary? the reply will be simple - let it go please, my husband takes care of all that.

    Great! if your husband is sharing this great responsibility, even better if he is independent and not influenced by the brokers and insurance sellers, but isn't it high time that you give financial planning a chance or do atleast some basic transactions to get a perspective of things? What if you need to make some financial choice in his absence?

    In this post I request all women out there my full time working friends, full time home maker, part time bakers, yummy mummies, aunts and the cute little freshers at work, you all do the hard work of earning money, saving it, managing it as well as spending smartly, you all have the basics of home budgeting on your fingertips, isn't it necessary to look at your future goals and actively take part in financial planning hands on. I know and understand that things are easier said than done, so we can always take small steps toward a it.

    If you are not hands-on, ask your partner/ father/son these 10 QUESTIONS

    1. Do you have a contingency fund? where do we look in emergency?
    2. How are we saving for future education of our children? what is the investment vehicle? would the investment yield adequate return? What are life goals and time frames- buying property, child education, child marriage, vacations etc
    3. Are you a working women, do you have a term-insurance plan?
    4. if you are a non-earning member why you require a life insurance? in this case it is an unneccessary expense.
    5. Does your aging parents, you, your children have health insurance?
    6. Do you use credit cards? what are the due dates? Are you aware of the charges it attracts as penalty on delayed payments?
    7. What are the EMI dates for home/personal loan repayments?
    8. What are the regular/ monthly investments through mutual funds, reccuring deposits, insurance premiums, PPF contribution etc.
    9. Which asset to liquidate first and when? In simple terms which fund to withdraw first from the various investments you have made?
    10. Do you know how to invest in mutual funds, fixed deposits, recurring deposits, paying insurance premiums, buying health insurance online?

    If you have affirmative answers for the 10 questions above, you are well aware of many things in financial management and well equipped to take informed financial decisions.

    If you see scope for improvement, which we all have, we all are human beings, work on it. Do write to me incase you would like me to elaborate on specific topics. In my next post, I will explain the easy way to invest and track your mutual funds.

    Stay good. Stay healthy.

    #empowered women #financially aware, #financial independence, #moneymanagement #financialfreedom

    Friday, November 11, 2016

    Don't evade tax, save tax! there is nothing like a relaxed mind and happy soul!

    There are many way of looking at a single topic. The currency exchange is definitely tedious with the limit on transactions and long cues. But we salaried and tax payers need not worry much, it i just the currency crunch and loose change crisis, which will eventually solve and change our currency management habbits.

    As law abiding taxpayers of India, we can take some learnings from the situation and do some introspection. You may say, I am paying taxes on salary, goods as well as services, then what kind of introspection we need to do?

    We create the blackmoney pool with our hard earned taxed money

    1. To avoid paying high amounts of taxes on gold jewellery purchase, often encourage cash transaction paving a way to make the whole white money into black by the jeweller

    2. To stay away from high fee and taxes we partner with real estate developers to transact in part cash

    So, basically our fear of paying taxes create the option for creation of black money.

    Apart from avoiding these transactions in future, we should take Tax saving instruments
    seriously to get higher, less taxed or complete tax free returns. Apart from the 80c instrument, there are many investment instruments which are tax efficient.

    • Debt Funds - More efficient for the hiher tax bracket segment
    • Equity - Return on equity shares as well as mutual funds investments n long term (more than 1 year) period is cmpletely tax exempted, whatever the amount is.
    • Dividend on equity, equity mutual funds are tax free in the hands of the investors
    • D-mat Gold - Handling cost, making charges are nil, making it much efficient investment compared to the physical gold. So, it is advisable to go for gold ETFs, or the sovereign gold funds
    #save tax #black money #invest in Equity mutual funds

    Be a smart investor, stay clutter free, there is nothing like a relaxed mind and happy soul!

    Thursday, November 10, 2016

    The 17 special and secured features of the new Rs. 2000 note

    The new #Rs. 2000 is in circulation. Here we welcome it with all love and respect. Chances are nil that the note is a fake, as it is just 2 days old, however, there is no harm in understanding the special and security features to get to know the new denomination.

    Here's introducing the new Rs. 2000


    1. see through register with denominational numeral 2000 can be seen when the note is held against light.

    2. Latent image with denominational numeral 2000 which can be seen when the bank note is held at 45 degree angle at the eye level

    3. Denominational numeral 2000 in Devnagri

    4. Potrait of Mahatma Gandhi in the centre

    5. Micro letters 'RBI' and 2000

    6. Colour shift windowed security thread with inscription '' भारत", RBI and 2000. Colour of thread changes green to blue when the note is tilted

    7. Guarantee clause, governor's signature with promise clause and RBI emblem towards right

    8. Mahatma Gandhi potrait and electrotype (2000) watermarks

    9. Number panel with numerals growing from small to big on the top leftside and bottom rightside. 

    10. Denominational numral with the Rupee symbol, Rs. 2000 in colour changing ink (green to blue) on bottom right

    11. Ashoka Pillar emblem on the right

    For visually impaired 

    Intaglio or raised printing of Mahatma Gandhi potrait, Ashoka Pillar emblem, bleed lines and identification mark

    12. Horizontal rectangle with raised print on the right

    13. Seven angular bleed lines on left and rightside in raised print

    14.  Year of printing of the note

    15. Swachh Bharat Logo with Slogan

    16. Language panel towards the centre

    17. Motif of Mangalayan - reflecting country's first venture in the interplanetary space.

    Source - Advertisement by Ministry of Finance

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