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

    Please share if you like