This category contains articles explaining concepts in economics and finance. It also contains articles explaining the broad economic trends and their implications for selling life insurance
The latest issue of The Financial Kaleidoscope the official Newsletter of National Securities Depository Limited (NSDL) is devoted to frauds in the financial sector. We bring you a synopsis of the same (for the full version please visit https://nsdl.co.in/publications/nest.php ). The newsletter is revealing in what it mentions and also what it does not mention.… Continue reading Frauds in the Financial Sector
I am reproducing a typical advice by a financial advisor below. This appeared in Mint 27 February 2020. A Question Question by a reader of the newspaper: Currently my net worth is around Rs. 5 lakhs. I invest Rs. 3,000 each in Canara Robeco Emerging Equities, Aditya Birla Sun Life Frontline Equity, Kotak Mahindra Emerging… Continue reading Money Does not Grow on Trees
“I have land, gold, and a lot of other investments. The next few generations are taken care off. I do not need life insurance”. How often have we heard of this statement from rich people? And how often have we failed to convey to them the need for life insurance? It is a given fact,… Continue reading Do HNIs need Life Insurance?
We have pointing out in this Blog that life insurance endowment is the best long term savings option for long term financial needs. One of the principal reasons for this is that it is low risk (not necessarily low returns). The question that arises next is that bank fixed deposits are also low risk, then… Continue reading Bank Deposits Are Not for Long Term Planning
High risk investments are not suitable for long term needs. The risks of not getting your money for the planned need is very high. Long term needs are ideally met by low risk investments.
A Rent Past Experience It will be worth recalling a recent experience of the introduction of a new financial product for retail investors. Every now and then, there are new avenues of investments for the retail investor. A few months ago it was the Alternate Funds which were aggressively sold. The Alternate funds also called… Continue reading Bonds of State Governments
In the Budget for 2020, the Finance Minister has provided 2 options for tax payers. The Minister has provided the option of continuing with the regime of tax exemptions that tax payers were used to all these years, and pay a higher rate of income tax. If a tax payer opts out of the option… Continue reading Budget 2020: Tax Exemptions – To Take or Not To Take
Recently I received a mail from a financial advisor that I should invest in corporate bonds for high returns and the advisor gave a few options for investment. One of the options I am reproducing below. Subsequently in this article I shall show you how the information is mis-leading. The promotional Email informationEarn 11.50% Fixed… Continue reading How Financial Advisors Fool You
One of the concepts that we hear in the market is that it is better to buy term insurance for one’s insurance needs and invest in mutual funds to get higher returns. There is nothing wrong to offer term insurance to a customer who wants insurance but does not want a savings plan along with… Continue reading Term Insurance + Mutual Fund vs Endowment
The e-paper Live Mint reported on 4 Sept 2019, that the average interest on Public Provident Fund (PPF) for the period Financial Year 2014 to 2019 was 8.21 %. In the same period Live Mint reported that Large Cap mutual funds earned 7.79 % Multi Cap mutual funds earned 8.57 % ELSS schemes earned 8.53… Continue reading 5-Year return on Mutual Funds
