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How simple is it selecting the best funds from approximately 40 mutual funds and hundreds of schemes? It’s certainly not simple. Suppose we’re choosing a few. Is those funds going to be the best? Not Sure. So how do we select the best funds in this challenging and uncertain task? Therefore, don’t go to the Best. Select the right thing for you. Let’s see an instance for a better understanding of things. Consider that you went for Apparels shopping. You’re not just choosing what looks great. First, you’re looking for what kind of clothes you need. Whether formal or casual. You then choose your size. Then you see the one that looks best. The question then is whether or not the pricing is justified. Finally, you’re going for the one that’s right for you. This is how you’re shopping for the correct thing for you. The choice of the fund should be based on your goals, time horizon, risk appetite that informs you what asset allocation and categories to look for and then selec...

Picture this. You are on a surgical table, your insides open and the one performing the surgery on you is you! When you have woken from that nightmare, let's talk about doing something less scary, yet daunting no doubt -- investing your money. You have been working for some time now. The end of a financial year always reminds you that you can save taxes by making investments. So do banks and other financial institutions who nudge you to invest for a better tomorrow. You want to get better at managing and growing your money, you've probably even researched a bit about investing. You are at a crossroads and are wondering: *should I invest by myself or seek an advisor?* Here are factors to weigh in for each choice: *Do-It-Yourself* There is a lot to know. Let's face it. What we should do with our money is everybody's top concern. There is a lot of information out there on the Internet -- on blogs, videos and mobile apps -- about money management and investing. B...

A participant non-connected program that provides an enticing mix of security with economies is LIC's latest Jeevan Anand scheme. This combination guarantees financial security against death for the lifetime of the policyholder by offering lumpsum payment in the case of his survival at the end of the chosen policy period. The program also meets the credit unit's liquidity needs. LIC's new Jeevan Anand scheme is a member that provides a captivating mix of security and economics. That option provides financial security against death by making a lump-sum payout at the end of the preferred policy duration, for the lifetime of the policyholder. The system also meets the liquidity criteria of the credit unit. Features of the New Jeevan Anand Policy If the policy holder survives the policy, when the plan ends he receives a maturity benefit and the life cover stays in force This policy offers double benefit, once at the maturity of the plan and again on the death In the unfortu...

The Jeevan Umang Program of LIC provides your family with a mix of income and insurance. This arrangement allows for annual payments from the end of the premium period up to maturity as well as a lump sum at the time the policyholder matures or dies. Features of the LIC Jeevan Umang It is a combination of both regular income and Lumpsum payment. Offers an option to choose a premium paying term of 15 years, 20 years, 25 years or 30 years. It is a non-linked life insurance plan with profits. Offers life cover till the policyholder turns 100 years. Offers a loan facility up to 90% of the surrender value if the policy holder has paid the premiums for 3 years regularly and if the plan has reached a Surrender Value. The LIC Jeevan Umang Plan offers a simple reversionary bonus as well as final addition bonus if any. Benefits of LIC Jeevan Umang Plan Death benefit LIC will refund all premiums charged without interest to the applicant in the c...

In most urban middle-class households with children schooling has become a major cost head. Personal finance experts quickly point out that while schools are more costly than they were 20 years ago, daily salaries are enough to pay for schooling. The problem is to fund university research, usually postgraduate research or master’s. Although a large number of parents are conscious of the need to build a corpus for education, it is difficult for most parents to assess the cost of education for children. Two considerations make it difficult to quantify – firstly, it is a long-term goal and secondly, it does not know which path the child will select. “It is all about assumptions now. So you should be focussing on what you can afford now,” says Pankaj Mathpal , founder and CEO of Optima Money Managers. For example, if you think an engineering degree is a minimum you would be willing to pay for, start with it. If it costs Rs 10 lakh, then apply inflation to it. “Education costs in I...

A systematic investment plan (SIP) is an investment option provided to investors by many mutual funds, enabling them to invest small amounts on a regular basis, rather than lump sums. Investment level typically occurs regularly, monthly, or quarterly. Through SIPs, investors regularly debit a fixed sum of money through bank accounts and invest in a specified mutual fund. A number of units are assigned to the investor according to the present Net Asset value. Every time an amount is spent, the investors account earns more units. The strategy promises to free the investors by dollar-cost average from speculating on volatile markets. Since the buyer gets more units when the price is low, and fewer units when the price is high, the average cost per unit will be lower in the long run.  SIP appears to be encouraging responsible investment. SIPs are flexible; investors can stop investing in a plan at any time, or choose to increase or decrease the amount of investment. Retail invest...

Special needs children can present exceptional challenges for parents. One being, ensuring your child is financially secure and looked after you have left. As any parent knows it can be both rewarding and challenging to raise a family. Nevertheless, caring for a child with such needs requires a devotional degree and commitment that can be overwhelming at times. Parents may feel frustrated and alone as they seek information, understanding and the help they desperately need. Life insurance is one of the most stunning financial instruments available to you and your family. By far, life insurance is the best way to turn pennies into dollars when your loved ones are most in need of it. If you buy a term life policy or a full life policy, getting life insurance that is in place when you die is the secret to providing your family with financial security. How does a child with special needs use life insurance? Once that life insurance is acquired, the next step is to create a Speci...

Women today are more socially motivated and work hand in hand with their husbands to meet their needs and give their children a better future. Over two-thirds of India’s women are family breadwinners or co-breadwinners. But they are able to let the men in the family take over when it comes to their financial planning. Unfortunately, as far as the house ladies are concerned, the attitude towards money is still pretty much the same as it was decades ago. Working women need to know that if they share all other family responsibilities, they also need to come up with some smart financial planning that can help them protect their lives against uncertainties that can affect their financial status. In all facets of life, women have broken barriers-whether it’s the glass ceiling in the corporate world or international records in various sectors. In terms of investment, however, women in India have been rather hesitant to deviate from conventional forms of investment such as gold and bank...

A cash-back policy is a system that returns money at regular intervals. During the duration of the contract, this cashback is paid and is a proportion of the Amount Assured. Pay-outs for money-back are considered survival benefits. Such incentives will be accrued during the lifetime of the contract and the remaining Amount Assured will be compensated along with accumulated bonuses upon maturity. If the insured dies during the lifetime of the contract, however, the full Amount Assured will be paid regardless of the recovery benefits already accrued. This is the unique feature of the program. Some of Money Back Policy’s key features are: The Survival Profit is calculated as a percentage of the guaranteed total. During the lifetime of the program, longevity benefits are paid at regular intervals. When the benefits are paid, there is a set period. Every program has a different structure of payouts. Likewise, there is also no fixed percentage of Amount Assured char...

Identifying Risks If and when a risk becomes a reality, a well-prepared business can minimize the effect on earnings, lost time and productivity, and negative customer impact. To start-ups and existing companies, a key component of strategic business planning is the ability to identify that threats pose a threat to effective operations. Business risks are identified using different methods, but each identification strategy is based on a comprehensive analysis of specific business activities that may present the company with challenges. Under most business models, organizations face preventable, strategic and external threats that can be managed by accepting, transferring, reducing or eliminating them. Local Insurance Risks Find the complete details of Local Insurance Risks explained by Jayant Harde Identifying Risks Physical Risks Business Risks Building Risks Location Risks Physic...

What Is Insurance Coverage? Insurance coverage is the amount of risk or liability that is protected by insurance companies for an individual or entity. Insurance coverage, such as auto insurance, life insurance, or more unusual types, such as hole-in – one insurance, is provided by an insurer in case of unforeseen events. Understanding Insurance Coverage Insurance coverage helps people recover economically from unexpected events like car accidents or the loss of a family-supporting income-producing individual. Multiple factors also dictate the scope of insurance. For example, most insurers charge higher rates for young male drivers, as insurers find young men to be more likely to be involved in an accident than, say, a middle-aged married man with years of driving experience. It can be difficult to distinguish between contracts and insurance policies, and it can be hard to assess the difference between loan amounts and insured amounts. Nevertheless, in receiving the c...

There have been few developments in the last two years that have given direction to  the mutual fund schemes. It could be the re-categorization of mutual fund schemes by SEBI, the downward trend in midcap funds and small cap funds, to name a few. Mutual funds via SIP, following several such shifts, have always compensated investors in the medium to long term. There are several benefits of investing in mutual fund schemes by SIP. Mid Cap Mutual Funds A mid-cap fund is a pooled investment vehicle (e.g. a mutual fund or ETF) that primarily invests in mid-cap companies ‘ stocks, or firms with market capitalizations ranging from around $2 billion to $10 billion. As the name implies, a mid-cap company falls in the middle of large-cap (or large-cap) and small-cap companies. Classifications such as large-cap, mid-cap and small-cap companies are only approximations and may change over time. Mid-cap funds provide investors with a diverse portfolio of mid-cap firms. Mid-cap stock fu...

Aditya Birla Health Insurance (ABHI) is one of the newly launched health; insurance companies on the market. Through its financial services wing, Aditya Birla provides insurance services in various domains. However, Aditya Birla provides health insurance as a stand-alone service. Aditya Birla Health Insurance characteristics & benefits Aditya Birla Health Insurance also operates on the Indian market, offering multiple services to individuals, households, and groups at present. Some of ABHI’s key characteristics and advantages can be described as follows. Flexible plan options: Aditya Birla offers a range of plans based on customer requirements. Plans for individuals, families and groups are available. Specific benefits plans are available, including personal accident, critical disease, cancer, etc. Besides this, there are policies that provide community benefits. Multiple sum insured options: Depending on their requirement and affordability, consumers may pick ...

The dream of every parent is to make sure that their child gets the best of all. As parents, you’re concerned about your child’s little need, but schooling and marriage are the biggest concerns that you don’t want to compromise on anything. Only by taking a small step towards the future can you be concerned about these issues. Mutual Funds are an excellent way to invest in the future of a child. Before becoming an adult, many parents want to create a corpus for their child so it can be useful for higher education. We also funnel cash from piggy banks, small amounts earned as presents on occasions such as their birthday, win a race, do well in a sport, and so on to mutual funds. There are some mutual fund schemes on the market that provide returns that would provide your children with financial advantages for needs such as meeting wedding expenses, potential educational needs, etc. Its long-term capital appreciation would fall under the Hybrid or Balanced Mutual Funds category. Such ...

“Compound interest is the 8 th wonder of the world. He who understands it earns it and he who doesn’t pays it.” – Albert Einstein   Power of Compounding Albert Einstein rightly said that the world's 8th wonder is compound interest. Compounding is a very strong concept. This is because you still earn interest on the interest of your invested money. The investment value continues to grow at a geometric (always increasing) level than at an arithmetic (straight-line) rate. Over a period of time, the capital continues to accumulate. Compounding is also a phenomenon of a long-term existence. And in the long run, I mean 15-30 years. Investing early is as important as investing wisely. Just a small amount can quickly increase your earnings. Let's see how you can earn Rs 10 Cr from an Rs 15 K investment. 15*15*15 Rule Rs 15,000 SIP will give you the return of Rs 1 Crore at maturity at an estimated 15 percent CAGR for 15 years. You can get Rs 1 Crore with just an investment of Rs 27 l...

Stock Mutual Funds Stock mutual funds are like a middleman between you and stocks(also known as equity mutual funds): they pool shareholder money and invest it in a number of different companies. You can buy several stocks in a single transaction through a mutual fund instead of picking and choosing individual stocks yourself to build a portfolio. It makes mutual funds perfect for investors who don't want to spend much time studying and handling an individual stock portfolio — a mutual fund works for you. A simple portfolio of investments may include as few as two mutual funds. ➢ Need guidance? But the key to the argument of the mutual fund is that there are several types of mutual funds: active fund managed by a professional manager; index funds tracking a benchmark index such as the Standard and Poor's 500; and ETFs, which are a category of index funds — they typically track an index, but are traded as stocks throughout the day. ➢ How do fees impact returns? Were bi...

Life insurance companies have meticulous procedures in place to guarantee timely and smooth payment of the multiple advantages. However, did you think what happens when the policyholder does not claim an advantage when it is due? Or a situation in which the insurance company is not in a position to pay the advantages as the policyholder is reachable / untraceable, or rather a case in which the insurance company has not been notified of the life insured’s death. These may look like isolated incidents; however, you would be surprised to know that Rs 15,166.47 crore was unclaimed with 23 life insurers as of March 31, 2018, according to official data. Of this, Rs 10,509 crore was with India’s Life Insurance Corporation (LIC), and Rs 4,657.45 crore was with private insurance firms. Compared to this, the unclaimed quantity for the whole sector was Rs 4,865.81 crore for the year 2012-13. This is an annual 25 percent rise in unclaimed money from policyholders over the previous five years...

Diversification of the portfolio is the key to a moderate equity investor and a moderate risk profile must be taken into account. It is possible to consider multi-cap and diversified equity funds for the same purpose. Everyone wants to create a corpus that can be used to fulfill dreams or to overcome economic emergencies. Keeping this in mind, everyone seeks at strategically investing in order to reap beautiful advantages for them. Some of you may have the idea that mutual fund investment is a dangerous affair. But that’s not completely true. Indeed, there are countless choices in mutual funds such as equity, debt fund, and balance fund, all depending on the investor’s requirements and risk appetite. All these systems of mutual funds give yields based on the related risk factor. The capital market is like a sweet store, complete of arrangements for mutual funds, with sweets according to the appetite of everybody. In this article, for a moderate equity investor, we will understand...

One has to prepare for unplanned activities such as medical emergencies, hospitalizations in a world complete of uncertainties. People have become more conscious of the encouraging sign of health insurance and mediclaim insurance policies.  Recent trend in health insurance policy shows that high-value health insurance plans are being offered by health insurers. The Sum Assured is what distinguishes these plans from the periodic plans. In these health insurance plans sum assured goes up from Rs 1 crore to Rs 6 Crores which is well above Rs 2 lakh to Rs 5 lakh. Let's have a comparison of these policies ' merits and demerits. Deciding on the policyholder's health insurance coverage is a significant variable. Advantages of High-Value Health Insurance:  They Provide Comprehensive Coverage: Healthcare has advanced by leaps and boundaries with rapid advances in the field of science and medicine, but so have the medical cost of treatment.Some medical in...