In 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 po

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 subscripti

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 p

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

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. I

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

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 succe

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 wit

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 celeb

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 th

Remember the 2004-2006 period, where not just DIYers but also amateurs, first-timers made money in the stock market IPOs. Well, those signs of temptation and overconfidence have not faded since. IPOs have been commonly perceived as get-quick rich options by retail investors. Even last year post the March crash, as the stock markets soared, a lot of IPOs fared well. Retail investors need to stay cautious though. Let us understand certain hard facts about an IPO first. An IPO

Heard of the famous FAANG stocks? The acronym stands for the famous 5 companies – Facebook, Apple, Amazon, Netflix and Google. With technology driving the global growth, more so amidst Covid times, every investor wants to have a piece of them in their portfolio. The FAANG stocks have outperformed the broader S&P 500 index for this year. But should you invest in them, or for that matter in the global markets to chase high returns? Before you jump the gun, you should know that

Today, parents are bombarded with many investment options to plan for their children’s future. In insurance, you will find specific child insurance schemes. They are similar to traditional insurance policies which provide life cover and time frame for maturity. In banking, you will find savings account options for kids. Likewise, there are also dedicated mutual fund schemes to plan for a child’s future. They aren’t difficult to identify as the scheme is likely to have the te

“*Shatayushi Bhava” – A blessing or a curse. A few years back I had written an article on the increasing life spans of Indians and whether we should consider this as a blessing or a curse. Blessing because we get to live longer than our ancestors but at the same time it could be a curse if that increased life span is spent in ill health and financially weak. *Shatayushi- One who lives for 100 years. Gerontologists (Scientists who study life spans) all over the world have writ

Covid19 has changed the world – the way we work, the way we do business and interact with people. The pandemic has triggered a new work environment – the virtual office. This new work revolution has given a boost to a lot of freelancing jobs in India and abroad, especially in the skilled services sector. With employees facing pay cuts or even losing jobs, freelancing has become a good option to supplement their income. It is a win-win situation even for companies as they str

As per a Bloomberg report, nearly 56 per cent of individuals have availed the moratorium facility proposed by the RBI in March 2020. Anyone having a loan with banks and NBFCs could avail this benefit and did not have to make any repayments for the moratorium period. The benefit is extended till August 2020. The objective is to provide relief to those borrowers who could be facing a liquidity crunch due to the lockdown impact on jobs and business income. While this may provide

These trying times have taught us to slow down and self-reflect on many things in our life. It has signalled to act on certain tasks which we may have procrastinated for a really long time. Like for e.g., people are taking some time out to declutter their homes. It is actually very therapeutic. It is like decluttering our minds because we then have to focus on lesser things. Less is more! This virtue can be extended to our financial life. This lockdown presents an opportunit

In the event of Covid19 crisis and the subsequent lockdown, the RBI announced a three-month moratorium on loan repayments 2 months ago. Anyone having a loan with banks and NBFCs could avail this benefit and did not have to make any repayments for the months of March, April and May. Now this relief has been further extended by the RBI till August. 2020 The objective is to provide relief to those borrowers who could be facing a liquidity crunch due to the lockdown impact on jo

When a crisis occurs and something as enduring as the current Pandemic, stock markets can be really cruel. The scale and speed of the fall could be severely harsh wiping off even 10-year average returns in a brief period. It is natural to feel anxiety, confusion and fear about our investments. I am sure there would be many investors who have vowed never to invest in the stock markets again. There would be majority who have sold in this falling market. But there has been cris

Covid-19 is one of the worst humanitarian crisis mankind has faced in recent times. Under a lockdown, we all are facing fear and anxiety in the wake of uncertainty. However, this ironic situation of a lockdown can also be viewed through a positive lens. It has taught us many things – to slow down and reflect, appreciate nature, optimise resources, value relationships, etc. And, there are financial lessons to learn as well. First and foremost: Emergency Fund: The primary thi