Blog
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Want to port your Health Insurance policy? Key points to keep in mind
- December 1, 2021
- Category: Insurance
No CommentsIn 2011, IRDA came out with regulations regarding portability to protect the interests of consumers. As per the portability guidelines, any insured person if not satisfied with his/her existing health policy can switch to another insurer of choice. The insured will get all the accrued continuity benefits in waiting periods provided there are no lapses in policy renewal. The right reasons to port: The primary consideration under which most people port their health insurance policy is low premiums. This factor however solely should not rule the porting decision. If there are too many inhibitory clauses in the policy which prevent […]
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Should you invest in a mutual fund NFO?
- October 30, 2021
- Category: Investments
Since the stock markets are doing well, it is not just IPOs (Initial Public Offer) that are flooding the markets. Mutual fund houses are launching new fund offers (NFOs) as well to capture investor’s attention. NFOs are nothing but new schemes launched by mutual fund companies to expand their business. During the NFO subscription period, an investor can buy the mutual fund units at a fixed rate of Rs.10. After the NFP window closes, the fund units are available for subscription as open-ended funds. The question is should you consider putting in money in an NFO? Are they risky? Let […]
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Things you should know about your Employer Health Insurance
- September 30, 2021
- Category: Insurance
Many corporates offer group health insurance to their employees to secure their well-being. If associated with any organisation as an employee, you are by default covered if the employer is offering group health cover. Many of the group policies cover not just employees but also their family members. Here are a few benefits of a group health insurance plan: Advantages: No waiting period: Unlike a personal health policy, most group health insurance plans do not have waiting period. Waiting period is the time span after the purchase of policy during which an insured cannot claim any hospitalisation expense from the […]
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Should you consider NFOs of index funds based on just cheap cost?
- August 30, 2021
- Category: Investments
Index funds are fast gaining popularity in India. These funds track a stock market index like the NSE Nifty 50, BSE Sensex, etc. For e.g., a nifty 50 index fund will have all the stocks of Nifty 50 and in the same proportion. Thus, if the market moves up by 10 per cent, the index fund value also goes up in the same proportion and vice versa. The investors hence do not have to worry about the performance of the fund manager and whether the fund will underperform or outperform the market. Since the fund manager doesn’t take any active […]
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How to safeguard your family against rejection of life insurance claim and understand settlement?
- July 29, 2021
- Category: Insurance
Adequate life insurance cover taken can ease the financial burden of a family to a great extent. However, the responsibility does not end in just taking a life cover. It is imperative that the bread earner and the family is aware of certain issues relevant to the claim settlement process in an unfortunate event. This has become more relevant in the present times amidst the pandemic situation. Foremost being the situations under which an insurance company can reject a claim. It is imperative that the family of the deceased knows the type of deaths that are not covered in a […]
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How can your family access all key financial information after you are gone?
- June 17, 2021
- Category: Financial Planning
Covid19 has taught us some financial lessons the hard way. The fragility of lives has induced people to think about the financial preparedness of their families in the event of any unfortunate situation. Preparedness here implies not just the wealth – the financial assets accumulated for the family. It is also about how the family is able to access all the key financial information with less effort or hassle. As the main bread earner, if your family depends not just on your income but also on your ability to manage personal finances, think about how they will access all the […]
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Sovereign Gold Bond Scheme: Is it suitable for You?
- May 20, 2021
- Category: Gold, Investments
Continuing with its issuance of sovereign gold bond (SGB) scheme, the RBI opened the window for next tranche of subscription from 17 -21 May 2021. These will allow investors to invest in gold in digital form with certificate issued against grams of gold. For individual investors, the minimum investment is equivalent to the price of 1 gram of gold and maximum investment is equal to the value of 4 kg of gold. A holding certificate is issued in the name of an investor upon successful purchase of the gold bond. You can also find the detailed schedule of subsequent issues […]
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The most important factor for the Compounding Magic to work
- April 26, 2021
- Category: Financial Planning, Investments
In all my years of experience in the financial advisory profession, I can surely tell that the science behind getting wealthy is very elementary. There is no secret to getting wealthy. Getting wealthy is not just confined to people who are earning high incomes or doing business or investing in properties or taking bets in stock markets, commodities, foreign currency, etc. Earning big money is a skill, but managing that money well is even a bigger skill. Even an individual with average income can become wealthy. Let me show you how and prove with numbers: A common Analogy to Compounding […]
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What should one aim to be – Rich or Wealthy?
- March 14, 2021
- Category: Financial Planning
People hear inspiring rags to riches stories many times. But there are also stories where people have gone broke, really broke. Yes, it is true. Take the case of Bollywood film stars. They earn crores, own big houses, drive swanky cars, travel in private jets, wear branded clothes and accessories. They enjoy all the luxuries in the world. It is difficult to imagine that they can ever get into any financial trouble. Heavy debt and financial mismanagement have landed many celebs in financial soup like Bhagwan Dada, AK Hangal, Bharat Bhushan, Amitabh Bacchan, etc. We nowadays hear stories of even […]
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Follow the Golden Rule of Investing – Diversification
- February 11, 2021
- Category: Investments
Imagine a farmer growing only one crop a year, say wheat. This implies that his agricultural income is dependant on only one crop. Now suppose if something wheat-related went wrong like inconducive weather, or pest nuisance or unfavourable wheat market. The farmer is in real trouble. Overreliance on just one crop exposed him to a lot of risk. Had he diversified his crop-base to some millets, some rice plantations, etc, his income would have been protected to an extent. In the world of investments, portfolio diversification is similar to farming. It helps to effectively protect the downside in investments. Let […]