Yes, your age at the time of purchase affects the return that you earn in investment and insurance combo products such as traditional life insurance plans and ULIPs. Everything else being same, lower the age at the time of purchase, better will be your returns. It is best to understand this with the help of examples. Let’s first start with a traditional plan. How your age … [Read more...] about With Traditional Life Insurance plans and ULIPs, your Age affects the returns
SBI cut interest rate of saving bank account from 4% p.a. to 3.5% p.a. in July 2017. After SBI, a few other banks have followed suit and cuts savings bank interest rate to 3.5% p.a. What should you do? Relax. There is nothing you can do. Learn to live with it. Frankly, resisting this change may not be worth your time. In the informal discussions, I was part of, people … [Read more...] about Savings Account interest cut to 3.5% p.a. What should you do?
Is IRDA trying to solve a wrong problem? Recently, I read excerpts of a speech from an IRDA member at a summit organized by CII in an article. I will copy a portion of the article below. //////////////////////////////////////////////////////////////////////////////////////// India is one of the lowest commission paying countries in the world, said Nilesh Sathe, Member … [Read more...] about The Bizarre Commission logic by IRDA
If you read personal finance section of business newspapers or personal finance magazines, you will realize the mis-selling is rampant in Indian financial services sector. Product suitability is conveniently sacrificed to earn high commissions. Poorly structured upfront incentive structure is one of the foremost reasons behind mis-selling. Sales target or income pressure is … [Read more...] about How Written or E-mail communication with Banks and Financial Institutions can help?
Last week, I came across an advertised from SBI Mutual Fund in ET Wealth where the AMC extolled the virtues of Systematic Withdrawal Plan (SWP) from an equity mutual fund. Through an illustration, SBI AMC tried to demonstrate how a SWP from an equity fund is a better choice than fixed deposit for regular income. One of the excerpts in the ad was “Traditional Saving … [Read more...] about How SBI Mutual Fund is misleading Investors through its Advertisements?
As online banking, electronic transactions and debit or credit cards find greater acceptance, the room for electronic banking frauds also grows. RBI has come out with a circular that details the scope of customer liability in case of an unauthorized transaction. It is a welcome and a long-awaited move from the banking regulator. The regulator had come out with draft … [Read more...] about What is your Liability in a Credit Card or Online Banking Fraud?
Karthik, a good friend, forwarded an article from ColloborativeFund.com titled “The Reasonable Formation of Unreasonable Things”. The article talks about how market bubbles and crashes are inevitable. And that bubbles are a result of shortening investment horizons. And that volatility is needed if you need big returns. The article made a lot of sense to me. By the way, the … [Read more...] about How Traders and Investors have different expectations and how it affects markets?
Last week, the interest rate for PPF, Sukanya Samriddhi Scheme, Senior Citizen Savings Scheme, NSC and other small savings schemes were cut by 0.1% p.a. Let’s look at what the rates are. Latest Interest Rates for PPF and other Small Savings Schemes I am copying a snapshot from Ministry of Finance notification dated June 30, 2017. Here are the latest interest … [Read more...] about Interest rate for PPF and other Small Savings Schemes cut by 0.1%. What should you do?
One of the first questions that many have on their minds while short-listing a life insurance policy is whether insurance company will pay up if the policy holder dies. The greatest worry is if, after so many years of paying premium, the insurance company will reject the claim and leave your family high and dry in times of such emotional stress. No surprise many trust … [Read more...] about Claim Settlement Data of Life Insurance Companies: Hides more than it Reveals
LIC Jeevan Umang is a non-linked participating whole life traditional life insurance plan. The meaning of whole life is almost literal. The plan matures when you turn 100. Let’s look at at some salient features of the plan and how LIC Jeevan Umang makes for an insurance and investment product. Salient Features of LIC Jeevan Umang Policy Maturity: At the age of 100 years (I … [Read more...] about Review: LIC Jeevan Umang