You just received your annual bonus. You also run a home loan. You have 2 options. Use the bonus (or any lump sum) amount to repay the loan. OR Invest the amount and potentially earn better returns than the home loan interest rate. What should you do with your bonus money? Like everything in personal finance, there is no black and white answer to this … [Read more...] about Got surplus? Would you Prepay or Invest? What does the data tell us?
You are regularly pitched an insurance product by your relationship manager or a sales agent. And nothing confuses you more. You are clueless about how to evaluate the product. There are fancy tables and illustrations. There are emotional “what-ifs.” The keywords like “bonuses” and “loyalty additions” give the impression that the insurance company is doing you a favour. … [Read more...] about Being sold an insurance product? How to figure out what’s being sold?
You are NOT comfortable with the low interest rates on your bank fixed deposits. Rightly so since you would not have seen such low FD interest rates ever in your life. Low interest rates hurt even more when you rely on interest income to fund your monthly expenses. You are desperately looking for solutions to enhance your income without taking too much risk. You come … [Read more...] about What are Covered Bonds? Should you invest?
Annuity plans are the only investment products from insurance companies that I do not dislike. Annuity products can serve a purpose in your portfolio that no other investment product (mutual funds, stocks, bank fixed deposits) can serve. And what is that purpose that no other product can serve? Ensure/Guarantee an income stream for life. LIC has launched a new … [Read more...] about LIC Saral Pension Plan (862): A New Immediate Annuity Plan from LIC: Review
The recent Covid-19 crisis tested the adequacy of health insurance covers for many of us. What seemed like robust health cover proved to be inadequate, at least in some cases. The employer cover of Rs 3 lacs and private health plan of Rs 5 lacs seems woefully inadequate now. Doesn’t it? Two questions: What is an adequate health cover then?How do you enhance your health … [Read more...] about Health Insurance: A Big Base Plan Vs. A Small Base Plan + Super Top-up plan
Which is the best way of investing in gold? Physical gold, Jewellery, gold ETFs, mutual funds, or Sovereign gold bonds? Let us leave out physical gold and jewellery in this post and focus on financial investments in gold. In this post, let us compare the various features of gold bonds and gold ETFs (and gold mutual funds) and assess which is a better choice. #1 … [Read more...] about Gold ETFs Vs Sovereign Gold Bonds
Exchanged Traded Funds (ETFs) and index funds are low-cost ways to build a diversified equity portfolio. Both are passive investments. Both try to replicate (and not beat) the performance of a benchmark index. For instance, both Nifty 50 ETF and Nifty 50 index fund will try to replicate the performance of an index fund. This is achieved by holding the constituents in the … [Read more...] about ETFs vs. Index Funds: Which is better?
The Reserve Bank of India has released the calendar for the Sovereign Gold Bond Scheme, 2021-2022 for the first 6 months of FY2022. The Bonds will be available for subscription in 6 monthly tranches from May 2021 to September 2021. For the tranche that is now open for subscription (May 17- May 21, 2021), the subscription price is Rs 4,777 per gram. For an online … [Read more...] about Sovereign Gold Bonds 2021-2022: Should you invest?
Ever seen a lion eating grass? No, right? No lion eats grass. Similarly, there are no equity funds that are NOT volatile (risky). All equity investments are volatile. That is the nature of equity investments. Just like a lion cannot stop being a carnivore, the equity investments will not stop being volatile. You can tame a lion but still cannot make it eat grass. … [Read more...] about Finding a Safe Equity Fund is same as Finding a Lion that eats grass
The Covid-19 pandemic has affected everyone adversely. Each one of us likely knows someone who passed away or has had a near-death experience due to the pandemic. Untimely demise of a friend/family member/colleague also puts our own mortality into perspective. While you must take precautions and avoid getting infected, you must think through the various “What ifs” … [Read more...] about How to Keep Family informed about your Investments and Insurances?