Personal Finance Print

Equity investing: Using momentum indicators to invest in stocks

Momentum indicators can be used by stock market investors to detect long-term buy or sell signs

Equity investing: Basic rules of investing in the stock market

Any beginner in the stock market should start with blue-chip stocks as the risk is lower for such stocks, compared to mid-cap or small -cap companies

Your Queries — Loans: You can prepay home loan every year to reduce loan tenure

Any additional repayment either in bulk or in parts will reduce your interest burden. However, check with your bank if it will accept multiple repayments in one financial year.

Tax talk: Rejigging perks and allowances to meet remote working needs

Employers can increase the variable pay component including allowances which you can claim on a reimbursement basis. While considering the options to restructure compensation packages, employers shoul

Allocate a sizeable portion of your retirement funds in equity MFs to beat inflation and make your money grow

A few investments that retirees should avoid are those that come with high risk such as real estate, direct stocks. It is better to spread the investments across so as to keep the risks in control.

If one takes a Voluntary Retirement Scheme (VRS) around age 50, nearly four decades of life are still ahead.

National Pension System: Now subscribe to NPS via video KYC

The video customer identification process will not only help expand the reach of NPS but will also help in speedy account closure and other services

In order to make NPS popular, PFRDA has introduced OTP-based authentication for paperless onboarding in June.

Donald Trump or Joe Biden: Gold prices set to go up

Whoever wins, a big economic stimulus is on its way. This will weigh on the dollar and fuel gold prices

This will increase deficits further and thereby weaken the dollar and push up gold prices.

Embedded value: Align policy term with rising life expectancy

A life insurance policy has to fulfil the needs that arise not only due to premature death but also due to prolonged existence

The term of a policy is the duration for which a buyer of a policy seeks to obtain risk cover for protection of his or her loved ones or for meeting financial liabilities.

Smart investing: Time to rebalance your investment portfolio

Investors can look at some profit booking and move money from equities to debt or gold to rebalance their portfolio

The profits booked from equity can be invested in fixed income securities and even gold to rebalance the portfolio.

Health Insurance: Keep track of the waiting period in insurance plans

All comprehensive health insurance plans come with different waiting periods for different coverages and it may vary for every insurer

Apart from this, many insurers apply a two-year waiting period on certain specified illnesses such as cataract, hernia and knee replacement.

Your Money: Invest your surplus money to create wealth for the long term

Lumpsum investing can prove to be quite useful, especially if you are not sure of being able to make monthly SIP payments consistently for the long term

Before starting a SIP, an investor must consider his future earning potential.

Income Tax: Employee incentive is part of taxable salary and fully taxable

Since the loan was sanctioned to you before the aforementioned period, you shall not be entitled to claim deduction under Section 80EEA.

Gratuity in case of employees of state/ Central government or local authority is fully exempt from income tax.

Smart Consumer: Spend or save? Finding the perfect balance

Adopt the 50:30:20 rule by allocating 50% of your income to essential expenses, 30% to buying things you want and 20% to savings for the future

Rather than thinking of spending and saving as an all or nothing, mentally allocate a portion of your income to both.

Your Money: Five credit options to finance your festive spends

However, with multiple credit options available to choose from, selecting the best and most suitable one may prove to be a tedious task.

Credit card issuers offer pre-approved loan to select existing cardholders with consistent bill repayment history.

Loans: Don’t wait for SC verdict, pay off moratorium dues as soon as you can

Irrespective of the verdict from the Supreme Court, from the financial cost point of view, it would be better to pay off the full/part of the EMIs overdue.

The principal is anyways payable by you, so go ahead with as much as you can pay.

Life insurance: How to calculate returns on insurance policies

Calculating the present value of all negative and positive cash flows in an insurance plan can reveal the actual returns on your insurance policy

When you pay an amount or a premium, it represents a negative cash flow (outflow) while calculating the IRR.

Your Money: What makes investors chase certain stocks?

Advisors and investors are not judged by the quality of their decisions but by their investment outcomes.

Saral Jeevan Bima: How this new product will make life insurance simple

Saral Jeevan Bima will be offered by all insurers as a standard individual term life insurance policy but the price may vary

ESIC extends deadline till June 30 next year for workers to avail the unemployment benefit

Under the scheme, unemployment benefit is paid to the workers covered under ESI Scheme. The benefit under the scheme can now be availed till June 30, 2021.

It is also launching an awareness programme to help the workers in distress.

Irdai asks life insurers to launch Saral Jeevan Bima from January 1

However, insurers have the option of offering sum assured beyond Rs 25 lakh under Saral Jeevan Bima with all other terms and conditions remaining the same.

The minimum sum assured will be Rs 5 lakh and the maximum sum assured would be Rs 25 lakh.

PFRDA to roll out pension scheme offering minimum assured returns to subscribers in FY22

However, FY21 is going to be a challenging year due to Covid-induced fall in equity and debt market. In aggregate, 80% of the NPS corpus is invested in debt (G-secs and corporate bonds) and 20% in equ

Health insurance: Now renew Corona Kavach & Rakshak policies

For Corona Kavach individual policies, insurers can offer migration to any other indemnity based health plan

Corona Rakshak is a fixed benefit policy which gives lumpsum benefit of 100% of the sum insured if the policyholder tests positive for Covid-19 and requires hospitalisation.

Mutual funds: How DIY investors should select funds

Choose funds based on consistent performance across market cycles and not just a single period. Complement this with qualitative analysis which will give insights into how a scheme is likely to perfor

However, these could at best be starting points for the analysis of mutual funds.

Irdai allows renewal, portability of Covid-specific products

At the time of launch, it was specified that lifelong renewability, migration and portability are not applicable to these products.

The regulator has also said during the renewal, sum insured may be allowed to be changed by the policyholder.

Non-life insurance industry’s gross direct premiums clock 4.41% fall

Market participants are of the opinion that in the last few months, premiums in health insurance have increased for the whole industry.

insurance sector, IFSCA, GIFT IFSCA, economic growth

Your Money: Plan a special festive fund and keep an eye on deals

Plan your expenses based on your budget, like if you want to buy an Ultra High Definition TV or a smartphone, try to find out which particular model would fit your budget and if there are any discount

The festive season is also the time when most retail stores and e-commerce websites come up with shopping deals.

Your Queries: Loans| You may not be able to close car loan before one year

As far as all of the residents coming together to complete the construction is concerned, it is a good idea to make use of your sunk funds.

I hope you have sought legal recourse to recover your money from the builder.
Income Tax Calculator, Budget 2019, How to Calculate Income Tax


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