Personal Finance Print

Your Money: Types of mutual funds and the risks they carry

Always go for a diversified portfolio that comprises equity, debt and gold asset classes in order to minimise your risks
It simply means the risk which may cause losses for an investor due to the poor performance of the market.

Equity investing: What’s your strategy in this volatile market?

Equity investors must book profits now, invest in dividend-paying stocks, tread with caution while investing in IPOs or NFOs and accumulate quality stocks on dips

YOUR QUERIES: LOANS: Planning to take a loan from app-based lender? Tread with caution

The threat to sensitive data should be kept in mind while going for such app-based loans. Look for large, known players in this market who have credibility and longer lending history.

The HFC’s floating rate criteria is not covered under the repo rate linked loans.

Embedded Value: Review your life insurance needs every 10 or 15 years

Such policies provide the child enough funds to continue education even if he loses his parents.

Financial planning: When should you use your emergency funds?

Once your financial position is stable, try to increase the amount you set aside and bring back the emergency fund to the previous levels

Precious Metal: Now you can invest in silver ETFs

Silver ETF will be one more tool along with gold ETF through which investors can participate in the commodity markets

While the introduction of silver ETF will expand the options available for investing in commodities through stock exchanges, investors must note that silver prices can be volatile.

Of home loans, EMIs and property insurance

The monthly payment for a borrower is not just the EMI. Borrowers have to get their homes insured too

The property acquired is the collateral for the loan. Unlike in India, where property prices usually go up steadily, in western countries it is an asset whose prices oscillate with economic conditions, just like stock prices.

Fewer new entrants to EPFO, ESIC in September

While the ‘number of new subscribers’ (not necessarily new jobs) under EPFO fell to 8,94,732 in September from 9,67,869 in July, the number of ‘newly registered employees’ under ESIC in Septem

While a gradual saturation of the formalisation process due to a focused drive in recent years may be a reason for the fall in number of new subscribers, net enrolment under EPFO has been on the rise since June to stand at 15,41,396 in September.

Your Money: What’s the ideal size of a term insurance plan?

The term insurance plan should provide comprehensive financial protection to your loved ones in case of your premature death

The insurer must be able to meet all the financial obligations adversely affected by the death of the policyholder, such as child’s education, medical expenses, and parents’ pension fund.

Bond markets: Invest in G-Secs with RBI Retail Direct Gilt

Rather than investing in government securities via insurance schemes or mutual funds, investors can directly invest in them through the newly launched scheme

Additionally, the probability of loss in value of these securities is much less compared to other asset classes such as residential or commercial properties, making them preferable security as collateral.

Your queries: mutual funds: Put 70% of fixed income portfolio in high credit quality shorter-duration funds

Put 70% of fixed income portfolio in high credit quality shorter-duration funds

For shorter holding periods, (up to three years), the gains are added to income and taxed at the marginal tax rate.

Tax Talk: More tax sops for expenses on education needed

Exemption can be claimed in respect of tuition fee of only two children of the individual and the payments must necessarily be made to a university, college, school or any other educational institutio

Stock selection: Are you falling for a pump-and-dump scam?

Pump-and-dump schemes usually target micro- and small-cap stocks or new asset classes such as cryptocurrencies which are relatively illiquid and thus easiest to manipulate

YOUR QUERIES: MUTUAL FUNDS: Go for gilt funds positioned around the medium-to-long term segment of the yield curve

Corporate bond spreads have narrowed significantly compared to their long-term averages; subsequent widening of spreads could present additional downside risk to investors. Hence, gilt funds also scor

To gain from a favourable tax treatment, investments in gilt funds should be at least over 3-year holding periods. For holding periods of over 3 years, the gains are taxed at 20.8% (including cess) post indexation of costs.

YOUR MONEY: Simple steps to building an emergency corpus

Similarly, if you live in a natural disaster prone zone, or have a history of careless driving, or find constant job relocation a reality, you will need to estimate the approximate expenses for rebuil

FIXED INCOME: Retail Direct Gilt Account: Should you go for it?

If you prefer do-it-yourself, have the wherewithal and bandwidth to execute and want to save on mutual fund expense charges, you can go for RDG

One in five withdrew funds from EPF accounts since Covid onset

According to the EPFO dashboard, there are around 6.69 crore members who paid their EPF contributions during the last one year.

epfo-pti-big-1

Your Money: Why option premiums can never be negative

Difference between option premium and intrinsic value is the speculative value of the option

Hence, both call and put options, whether European or American, entail the payment of a positive premium at the outset, by the buyers.

Mutual funds: ELSS lose shine; spotlight on sectoral funds

Investors move away from ELSS due to the poor performance of most of the funds as compared to large and mid-cap funds

You can invest a lump sum amount or invest every month through SIP. In fact, an SIP works best in falling markets when you can buy more units.

EPFO board to meet today, investment proposals on agenda

The CBT will also be apprised of the status of major defaulted and downgraded securities.

The CBT will also ratify extension of tenure of ETF manufacturer of SBI MF and UTI MF till December 31, 2021.

Insurance: How to ensure your claim isn’t rejected

Your health or life insurance document enumerates the terms and conditions of the policy contract. Strictly adhere to these to avoid any claim rejection

The policy holder should take the following precautions to avoid rejection of health insurance claims.

Your Money: Why debt collection needs to be smart & easy

When customers are empowered by digital experiences specific to their needs, the debt collection process is seamless and pain-free

It is time for the debt collections industry to go beyond digital by offering customers an intelligent personalised experience with a full range of access points and options to resolve debt on their terms.

YOUR QUERIES: MUTUAL FUNDS: Invest in staggered manner based on asset allocation approach

For deploying the additional corpus, you should evaluate your portfolio from an asset-allocation point of view and build exposure in line with your recom-mended asset allocation.

You should look to diversify your portfolio across two or more funds (depending on desired sub-asset class exposure and investable corpus) to reduce conc-entration to the calls of a single fund manager.

New age investing: Why cryptocurrency is the new investment fad?

Even though buying cryptocurrencies seems like a lucrative alternative investment, don’t forget they are extremely risky as they are not backed by any underlying asset

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