Most of us have to take home loans to purchase a house. Home loans come in multiple variants. One of the popular home loan variants is a Home Saver Loan. A prominent example is the SBI Maxgain Loan product. In this post, I would briefly touch upon how home saver loan products work and what are the things that you must keep in mind if you have already taken such a loan. How … [Read more...] about Things to keep in mind if you have SBI MaxGain Loan
You start with a certain asset allocation mix. At regular intervals, you bring your portfolio to original asset allocation mix. Let’s say you have Rs 20 lacs to invest. You have two asset classes Equity and Debt. You invest Rs 10 lacs in Equity and Rs 10 lacs in Debt. Asset allocation of 50:50. During the next 1 year, Equity gives 20% returns while Debt gives 5% … [Read more...] about What is Portfolio Rebalancing? How it helps?
For many of us, when we think about investments, the focus is mostly on returns. Not unfair. Everybody wants adequate reward for the risk taken. However, when you think in terms of financial goals or financial planning, return is not the only part of the equation. Let’s look at the equation for compounding. A = P * (1+r)^n Where P is the amount invested, r is return … [Read more...] about Financial Planning and Investing more
LIC has recently launched a new participating LIC Navjeevan plan in March 2019. It is a non-linked participating traditional life insurance plan. Regular readers will know that I am not a big fan of traditional life insurance. You get low life coverage and poor returns. By the way, this has nothing to do with LIC. Such plans from private insurers come with similar issues … [Read more...] about LIC NavJeevan Plan: Why the plan is structured this way?
As investors, we like to compare different investment products while making an investment choice. Most of us compare different products on their returns. We look at 3-year, 5-year, 10-year returns. We look at rolling returns for various horizons. That is good. However, we must also look at the way the performance is reported. You may not get what is reported. In this post, … [Read more...] about Mutual Funds, ULIPs, NPS, PMS: How is return performance reported?
Investors have different levels of risk tolerance. Some don’t bat an eyelid even if their portfolio nosedives by 25-30% while others worry even if their portfolio is down half a percent. The first category of investors are likely experienced investors while the second category have a low level of risk tolerance. How should such investors with low risk appetite or tolerance … [Read more...] about How to invest if you have low risk appetite?
Moving abroad for employment or planning to shift back to India permanently? How will your income be taxed? Can you continue holding NRE deposit and continue to get tax-free interest? Well, everything begins with finding out whether you qualify as an NRI or a resident. And this may not always be easy. To add to the confusion, the definition of Non-resident is different under … [Read more...] about Who is NRI as per FEMA and Income Tax Act?
If you are new to equity markets, you may have some discomfort with volatility. If you are closer to retirement or you are making a lumpsum investment, this discomfort is quite justified too. You can lose a lot of money and put your financial well-being in danger. However, if you are a young investor, volatility should not concern you too much. Let’s try to understand … [Read more...] about If you are a young investor, volatility can be your friend
You have decided to invest in mutual funds. You have selected the best mutual funds for you. You have also decided whether you want to invest lump sum or through Systematic Investment Plans (SIPs) or STPs. There is one decision that you are yet to make. Which investment option to select? Growth or dividend or dividend re-investment? In this post, we will discuss the … [Read more...] about Mutual funds: Growth or dividend? What should you choose?
In an earlier post on claim settlement ratio, I had delved into claims data of health insurance companies for FY2018. In this post, let’s look at the claims settlement ratio for the life insurance companies for FY2018. Understanding claims settlement data for life insurance companies is relatively easier since the insured event (death of the insured) is quite crisp. There … [Read more...] about Claims Settlement Ratio of Life Insurance Companies (FY2018)