SEBI mandated rationalization and categorization of mutual fund schemes in October 2017. With this rule, all the existing mutual fund schemes had to fit in one of the categories specified by SEBI. There was an additional rule of only one fund per category per AMC. This resulted in many existing MF schemes getting merged in a new scheme. From an investor’s perspective, this is … [Read more...] about How to calculate capital gains and returns? (After MF scheme mergers due to SEBI Categorization)
You are aware that it is difficult to get a loan if you have a poor credit score. Your credit score is a measure of your repayment ability. A poor credit score implies poor repayment ability/intent. Therefore, banks/NBFCs may not be as keen to lend to borrowers with a low credit score. You have a poor credit score but need a loan. What will you do? Fortunately, there are … [Read more...] about 6 Loans you can get despite a low credit score
When we plan to take any loan, we usually try to shop for the lowest rate of interest. That is a good strategy since the interest forms the biggest component of cost for any loan. However, interest cost is not the only cost that you need to bear to service a loan. There may not many other charges with different names. Some charges may be expressed as a percentage of the loan … [Read more...] about While finalizing a loan, do not just look at the interest rate
Sukanya Samriddhi Scheme or Sukanya Samriddhi Yojana (SSY) was notified in December 2014. The scheme is part of the Beti Bachao, Beti Padhao Scheme The scheme offers attractive guaranteed interest rates. The Government sweetened the deal by making Sukanya Samriddhi Account part of Exempt-Exempt-Exempt (EEE) tax regime. The motive of the scheme is to encourage the savings in … [Read more...] about Sukanya Samriddhi Yojana Account Rules: Complete Information
LIC Single Premium Endowment Plan (Table no. 817) is a single premium non-linked participating life insurance plan. It is not a new plan. The plan has been around for a long time. A reader asked me to review the plan. So, here we go. LIC Single Premium Endowment Plan (Table no. 817): Review Minimum Entry Age): 90 days Maximum Entry Age: 65 years Minimum Age at … [Read more...] about LIC Single Premium Endowment Plan (817): Review
Many of us have more than one health insurance policies. And I receive a number of queries over e-mail and as comments in my blog post about discontent with claim settlements for two policies. Many have a grievance that the insurers did not settle as they expected and they had to pay the balance from their pockets. I had done a post on pros and cons of having multiple health … [Read more...] about How claim is settled in case of multiple Health Insurance plans?
PFRDA increased the maximum age of joining under National Pension System from 60 to 65 years. Here is the link to the circular. The joining age has been increased for All Citizens model (including Corporate Sector NPS). No such provision for Government sector NPS. Please understand investors were already allowed to continue their existing NPS accounts until the age of 70. It … [Read more...] about If you are a Senior Citizen, should you invest in NPS?
Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched in May, 2017 to provide a long-term income option for senior citizens in the country. This assumes importance in the wake of low interest rate scenario we find ourselves in. Fixed deposits are getting renewed at lower rates. This poses problems to those senior citizens who rely on interest income to meet regular … [Read more...] about All you need to know about Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Senior citizens are soft-targets for mis-selling. Why? First, they may not be comfortable researching the financial products or may not have requisite skill/ resources to understand the product before buying. How many are comfortable researching a product online? Secondly, they may lack the physical and mental strength to get justice if they realize they have been mis-sold a … [Read more...] about 5 reasons why Senior Citizens should avoid Life Insurance Products
If you purchase a product that provides poor/inadequate returns, you will get poor returns. If you purchase two of those products, you will still get poor returns. Or is there a chance that you can get good returns? There is no chance. 2+2=4, and not 5 (unless you believe in magic) Therefore, if you bundle two or more low return traditional life insurance plans, you will … [Read more...] about Stay away from LIC Retire and Enjoy and other bundled products