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Intestate Succession Intestate succession is the legal process that determines who inherits a person's assets when they die without a will. Here are some key points to understand about intestate succession: The laws of intestate succession vary by state and country. In general, spouses and children are the first in line to inherit assets in an intestate estate. If there are no surviving spouses or children, parents or siblings may inherit the assets. If there are no surviving relatives, the assets may go to the state or government. Intestate succession can be a complicated and time-consuming process, and it is often recommended to create a will to ensure that your assets are distributed according to your wishes. Testamentary  Succession Testamentary succession is the process of transferring property or assets after a person's death based on their will or other legal document. This legal process ensures that a person's assets are distributed according to their wishes and can help avoid disputes or confusion among family members. Some important considerations to keep in mind when planning for testamentary succession include selecting a trustworthy executor, creating a comprehensive and clear will, and reviewing and updating the will as needed to reflect changes in circumstances or preferences.

What are Credit Ratings? Understanding Credit Ratings Credit ratings estimate the likelihood of an entity, whether that be a company or government, fulfilling its obligations to repay principal and interest on the due dates. These ratings are provided by independent agencies that are not involved in the investment instrument, which ensures that they are impartial when assessing credit risk. Credit rating agencies in India must obtain a license from SEBI and meet strict criteria and procedures to maintain compliance. Currently, only six rating agencies, specifically CRISIL, ICRA, CARE, India Rating, Acuite and Infomerics, are approved by SEBI. Understanding the Rating Scale Credit ratings are an assessment of the credit risk that is associated with fixed-income securities such as corporate bonds and securitized debt instruments (SDIs). These ratings are divided into two main groups: Investment Grade and Speculative Grade. The higher the rating, the less risk of default associated with the instrument. For a better understanding of CRISIL rating scale, please refer to the table below: Investment Grade: Understanding Investment Grade Ratings When an investment receives a rating above 'BBB-', known as an Investment Grade rating, it indicates that the investment carries a relatively low level of credit risk. This suggests that there is a strong probability that the issuer will fulfill its financial obligations by making timely interest and principal payments. Non-Investment Grade: Understanding Non-Investment Grade Ratings When an investment is associated with a higher level of credit risk, it is classified as a non-investment grade rating. Any rating below ‘BBB-’ is considered non-investment grade. Take a look at the table below, which displays the average constant default rate (CDR) for various CRISIL rating categories over a two-year period: Average CDRs for ratings on structured finance instruments (FY 1993-2023)-Annual static pools Source: CRISIL: Avg, CDRs for ratings on structured finance instruments (FY 1999-2003) The Importance of Credit Ratings for Investors Credit ratings are a critical tool for investors, providing an easy way to compare different investment opportunities. By providing a single score that encompasses all aspects of credit risk, investors can effectively evaluate their options. Consider the following tips when using credit ratings to make investment decisions: For lower risk, opt for a higher credit rating For lower credit ratings, expect higher returns to offset the risk We offer corporate bonds and SDIs are credit-rated by SEBI-approved agencies, providing investors with a range of choices rated AA to BB, with returns of 10-16% according to the risk-taking ability of the customer. Are you looking for any of the debt instruments, please Contact Us for available and suitable options for your risk appetite, tenure, expected returns.

Buying a house in a neighborhood can be daunting because you don't know what to expect from living there. However, there are some methods that can help you evaluate the condition and the atmosphere of a neighborhood. Talk to the people. A friendly and cordial conversation with the neighborhood residents can help you understand the current state of affairs. They are more likely to share honest and realistic information if they find you amiable. Besides, they have a better assessment of the situation as they live there. Visit the place day and night The time of day can affect how a neighborhood looks and feels. In the morning, everything might appear normal and pleasant. However, the best neighborhoods to buy a home are those that are also calm and secure at night. This is important for your own safety and that of your family. Therefore, you should inspect the area during both day and night before making a decision. Proximity to your workplace The distance between your home and your workplace matters. Choose a location that is close to where you work. Even though many people now work from home or follow a hybrid model, you should think about the future as well. You might change jobs someday and need to commute again. Independent House (Villa) Vs Apartment When it comes to choosing between a villa and an apartment, there are several factors to consider. Here are some of the differences between the two: Price: Villas usually cost more than apartments. The market value and the registered value of the properties often differ significantly. This is especially true when you build your own house on a land you buy. When you buy a pre-built villa or apartment, these differences are usually smaller. Customization: Villas offer more scope for customization than apartments. Since villas are independent residences, they can be designed to meet the specific needs of the owner. Apartments, on the other hand, have a fixed layout and design. Amenities: Apartments offer more amenities than villas. Most apartment complexes come with facilities such as swimming pools, gyms, and clubhouses that are shared by all residents. Villas, on the other hand, offer more privacy and exclusivity. If your budget allows, villas in a community could be a more appealing option. Maintenance: Villas require more maintenance than apartments. Since villas have their own gardens and outdoor spaces, they need to be maintained regularly. Apartments, on the other hand, have common areas that are maintained by the management. Location: Villas are generally located in quieter areas away from the hustle and bustle of the city. Apartments, on the other hand, are usually located in prime locations close to schools, hospitals, and shopping centers. Ultimately, the choice between a villa and an apartment depends on your personal preferences and budget. If you value privacy and exclusivity and don’t mind spending more money on maintenance, a villa might be a good option for you. However, if you prefer convenience and access to amenities and don’t want to spend too much money on maintenance, an apartment might be a better choice. Important aspects to consider while purchasing or constructing: The benefits of having empty space in a community. Living in an apartment with some vacant land around it has an advantage over living in a crowded community. If the builder decides to add more towers or renovate the existing ones, the apartment owners can enjoy a longer lifespan of their property at a low or no cost. On the other hand, if the apartment is in a densely populated community, all the residents have to agree and pay for the reconstruction, which may be difficult depending on their financial situation at that time. When your children get older, you may require more space to park your bicycles or extra vehicles. It is important to plan ahead and ensure that you have enough parking space for additional car or bike etc. The number of bedrooms in a house should depend on how many people live along with you, such as parents, children, etc. If you choose a villa, you may have the option to build an extra floor, but this is not possible with apartments. It is not about today, it is in future as well. There is a higher appreciation for Independent House or Villa over apartment as there is higher square feet of land over apartments. Land is an appreciating asset while the building or construction is depreciating asset. Financial Aspects Buying a house requires a significant amount of money for the down payment. You should have at least 35% of the budget in your hand before you start looking for a house. Typically, you need to pay 20% of the total property value from your own pocket, while the banks can fund the remaining 80%. You also need to register the house in your name, which involves paying about 10% of the property value as registration fees to the government. Furthermore, you should reserve at least 5% of the budget for interior design. Home Loan / Loan for down payment If you are slightly short of down payment, you can consider taking a gold loan. But it is not a good idea to go for personal loans to fund the down payment, as it will increase your monthly commitment without any tax benefits. Financial Institutions for Loans PSU Banks: Overall loan eligibility is lower in PSU Banks over private banks and NBFCs. Example, if the net salary is Rs 100,000, then the general eligibility for home loan is 50,00,000 rupees. Private Banks: Overall loan eligibility is slightly higher in private banks over PSU Banks. Example, if the gross salary is Rs 100,000, then the general eligibility for home loan is 50 Lakh rupees. Service is generally better in Private banks over PSU Banks. NBFCs: NBFCs are generally more lenient in providing loans. They provide to customers with lower CIBIL score and fund higher amount than PSU and Private Banks. But the interest rates are comparatively higher than PSU and Private banks. Loan Type If you can keep some cash in your bank account, you may want to opt for SBI Max Gain or similar loan products that let you deposit cash in a linked account. This will reduce the interest you pay on the loan by the amount and duration of your deposit. This type of loan may have a slightly higher interest rate, but you can easily offset it if you deposit at least 1% of your loan amount in the linked account. How to Save or Invest Money for Down Payment Depending on the tenure you have to purchase the house, you can choose various options: Purchasing in less than a year: Consider investing the money in P2P Lending products or Fixed Deposits or Debt Mutual Funds like Liquid Funds. Purchasing in 3 years: Consider in investing in Mutual Funds like Balanced Advantage Funds Purchasing after 5 years Consider investing Large Cap or Large plus Mid Cap funds as they bring in stability and good growth in the invested value. Investing through SIP brings in more discipline and helps you buying your new home faster. Purchasing after 5 years Consider investing mid and small cap funds as they bring in best returns in long run. Investing through SIP brings in more discipline and helps you buying your new home faster. Please do not consider investing in any insurance products for purchasing your dream home. Insurance products covers risk but may not give you best returns like Mutual Funds. There is no need of risk cover for purchasing a house but you definitely need better returns. If you still have any further clarifications or personalized guidance, please do not hesitate to Contact Us

Focus of this article is on explaining P2P Lending Product as an alternative investment. Peer-to-peer (P2P) lending has become a popular investment opportunity in recent years, offering individuals the chance to earn potentially higher returns by lending money directly to other individuals or businesses. P2P lending is a regulated investment option In India, P2P lending platforms are regulated by the Reserve Bank of India (RBI) under the Master Direction on P2P Lending issued in 2017. This regulation requires P2P lending platforms to adhere to certain standards and regulations, including credit scoring and verification of borrowers, and disclosure of information about loans. The regulation also requires P2P lending platforms to maintain a certain level of capital and to have a risk management framework in place. P2P lending offers a range of investment options for lenders P2P lending offers a range of investment options for lenders, including short-term and long-term loans, secured and unsecured loans, and loans to individuals and businesses. This allows lenders to choose an investment option that aligns with their investment goals and risk tolerance. Additionally, many P2P platforms offer auto-investment tools that allow lenders to automate their lending process, making it easier for them to invest in multiple loans and diversify their portfolio. P2P lending can offer higher returns than traditional investment options P2P lending can offer higher returns than traditional investment options, such as fixed deposits and bonds. This is because P2P lending allows individuals to earn interest on their investments directly from borrowers, rather than relying on the interest paid by financial institutions. Additionally, P2P lending allows individuals to earn interest on their investments even when interest rates are low, as the interest rate charged on loans is determined by the risk involved. In conclusion, P2P lending is a regulated investment option that offers a range of benefits for both lenders and borrowers. P2P lending platforms adhere to regulatory standards and implement measures to protect lenders’ interests, such as credit scoring, verification processes, and loan recovery procedures. P2P lending is not limited to high-risk borrowers; it serves a diverse range of borrowers, allowing lenders to choose investments that align with their goals and risk tolerance. While there are risks involved, P2P lending can offer higher returns than traditional investment options, providing an accessible and convenient alternative for investors. With proper understanding and research, P2P lending can be a rewarding investment avenue for individuals seeking attractive returns on their investments. Focus on differences between P2P Lending Vs Fixed Income Peer-to-peer (P2P) lending and fixed income investments are two popular investment options that offer attractive returns to investors. Both have their own unique benefits and drawbacks, and choosing between the two depends on an individual’s investment goals, risk tolerance, and financial situation. In this blog, we will compare P2P lending and fixed income investments to help you make an informed decision. P2P Lending: P2P lending is a form of investment where investors lend money directly to borrowers, bypassing the need for intermediaries such as banks. P2P lending platforms connect borrowers and lenders and offer a variety of investment options, such as secured and unsecured loans. Investors are able to earn returns by charging interest on their loans. Pros: Attractive Returns: P2P lending can offer attractive returns compared to traditional investment options. Returns on P2P loans are typically higher than savings accounts and fixed deposits and can range from 8–24%. Diversification: By investing small amounts in multiple loans, investors are able to spread their risk across a large number of borrowers. This helps to mitigate the risk of default and ensure stable returns over time. Transparency: P2P lending platforms provide detailed information on the borrowers, including their employment status, income, and credit history. This allows investors to make informed decisions and choose loans that match their investment goals and risk tolerance. Cons: Risk of Default: P2P lending carries the risk of default, which can result in the loss of some or all of the invested capital. To mitigate this risk, investors should diversify their portfolios and choose loans carefully. Lack of Guarantees: P2P lending is not backed by government guarantees, so investors bear the risk of default. Regulation: The P2P lending industry is regulated by various government bodies to ensure that platforms operate in a fair and transparent manner. However, as the industry is still relatively new, there may be some regulatory challenges and risks that investors should be aware of. Fixed Income Investments: Fixed income investments refer to investments that pay a fixed rate of interest over a specified period. Examples of fixed income investments include bonds, fixed deposits, and government securities. These investments are considered to be low-risk and are popular among investors who are looking for stable and predictable returns. Pros: Predictable Returns: Fixed income investments offer stable and predictable returns, making them a popular choice for risk-averse investors. Guaranteed Returns: Fixed income investments are typically backed by government guarantees, which means that investors are protected against the risk of default. Low Risk: Fixed income investments are considered to be low-risk investments, as they offer stable and predictable returns. Cons: Low Returns: Fixed income investments offer lower returns compared to other investment options, such as stocks or real estate. Limited Flexibility: Fixed income investments typically have limited flexibility, as they require investors to hold their investments until maturity. Inflation Risk: Fixed income investments are vulnerable to inflation risk, which means that the returns may not keep pace with the cost of living. In conclusion, both P2P lending and fixed income investments have their own unique benefits and drawbacks. P2P lending offers attractive returns, but carries the risk of default. Fixed income investments offer stable and predictable returns, but offer lower returns compared to other investment options. Investors should carefully consider their investment goals, risk tolerance, and financial situation before choosing between P2P lending and fixed income investments. It is also important to seek professional advice before investing, to ensure that your investment portfolio is well-diversified and aligned.

10 Key Elements to Consider If you're a credit card user, it's crucial to understand the statement you receive at the end of your billing cycle. Things to look for on your card statement. Summary of Account Details Your credit card statement account summary contains all the transactions you made during the previous billing cycle, including any fees, charges, and interest applied to the past due balance. Additionally, the statement provides important information such as the statement close date, credit limit, and days remaining in your billing cycle. Remember that any transactions completed after the statement close date will appear on your following billing statement. If you want to review these transactions, simply sign into your net banking account or digital wallet. Credit Limit Availability Understanding Credit Card Limits and How to Manage Them A credit card limit is influenced by several factors, including your credit history. If you are a first-time user, your credit limit will likely be lower. The bank sets this limit, and the cardholder must comply with it. Depending on the terms and conditions, some providers allow customers to exceed their limit. However, to avoid falling into debt traps, banks typically advise cardholders to stay within their specified limit. It is important to use less than 40% of your credit limit. If it is less than 40% credit utilization is considered healthy. Due Date for Payment Understanding Your Credit Card Bill Statement Your credit card bill statement holds crucial information, including the payment due date. This deadline is when fees must be paid to avoid late payment charges. However, it's important to remember that paying on the last day could lead to issues if you pay by check. Processing may take up to three business days, costing you interest and late payment fees. To prevent this, make sure to verify the final payment date and pay as early as possible. Outstanding Balance Total Amount Due and Avoiding Additional Fees When reviewing your Credit Statement, it's important to differentiate between the minimum and total amount due. The latter includes service fees, penalty payments, interest, late fees, carryover amounts from previous billing cycles, and other charges. To prevent incurring extra charges such as interest or prepayment penalties, meticulously review your Credit Statement. Minimum Payment Requirements Making Sense of Minimum Payments on Your Credit Card Bills To avoid a late payment fee when you're unable to pay the full amount due, credit card issuers allow you to make a small payment. You can choose to pay a minimum amount each month rather than the entire amount owed. Although this sum is usually only about 3% to 5% of the overall amount, it should only be used as a last resort if you're unable to pay the full amount due and want to avoid falling behind on payments. Bank Fees Understanding the Factors That Contribute to a Higher Credit Card Bill Have you ever looked at your credit card bill and wondered why it's higher than you expected? This can happen due to various bank fees, such as late payment penalties, interest charges, foreign exchange markup fees, and cash advance fees. To avoid unexpected bank fees, it's important to keep a close eye on your account and be aware of any additional charges. Grace Period Understanding Credit Card Payment Due Dates and Grace Periods Credit card companies typically set the payment due date between 20 and 25 days after the billing cycle ends. This period is commonly referred to as the "grace period" when paying credit card bills. It's important to note that if a cardholder fails to pay the amount owed within three days following the final payment due date, banks may charge a late payment fee as per RBI regulations. Interest will accrue from the payment due date onwards but will not be compensated within the grace period. Late Payment Notification Late Payment Warning on Your Card Statement Your card statement will include a late payment warning, which will urge you to make at least the minimum payment to avoid incurring a late payment fee. The warning will also explicitly state the amount you will be charged for late payment. Earning Rewards: Points/Cashback Maximize Your Credit Card Rewards Most credit cards offer cashback or reward points on nearly every purchase. Your statement also reflects the amount of cashback or reward points earned in the billing cycle. To ensure you don't miss out on redeeming your reward points, keep track of your rewards cards and their validity. Details of the Transaction Key Steps to Review Your Credit Card Transactions It's vital to review your credit card statement as soon as you receive it. The statement provides a comprehensive list of all transactions made during the billing cycle up until the payment due date. As a credit card user, it's your responsibility to carefully examine the details and ensure that there are no errors. This practice can help you identify your spending patterns and save money in the long run. In summary Understanding Your Credit Card Statement Your credit card statement provides a comprehensive overview of all transactions made on your account, within a specific timeframe. Apart from displaying your account balance, minimum payment due, statement balance and due date, it also outlines any interest, payments, credits, and charges you've accumulated. Credit card companies usually release the statement once a month, shortly after your billing cycle ends. By regularly reviewing your credit card statement, you can stay on top of your finances and make informed decisions. Please make sure you are not applying for Credit Cards or Loans too frequently.

Invoice discounting can be a lucrative and secure alternative investment option for those seeking to diversify their portfolio. By purchasing invoices from businesses at a discount, investors can earn a return on their investment when the invoices are paid in full. This can provide a steady source of income and a hedge against market volatility. Additionally, invoice discounting can be a low-risk investment strategy as the invoices themselves serve as collateral. With the potential for high returns and minimal risk, invoice discounting is a compelling option to consider for those looking to expand their investment portfolio. If you are considering invoice discounting as an investment option, there are a few key factors to keep in mind: Due diligence: Before investing, it's important to thoroughly research the company or platform offering the investment opportunity. Look for a track record of success and transparency in their operations. Diversification: It's wise to diversify your portfolio across multiple investments to minimize risk. Consider investing in a variety of industries and businesses to spread your risk. Contract terms: Carefully review the terms of the investment contract, including the discount rate, payment terms, and any fees involved. Make sure you understand the risk and reward potential before investing. Exit strategy: Have a clear plan for how and when you will exit the investment. This can help you avoid any unexpected losses and ensure that you realize your desired return on investment. Overall, invoice discounting can be a lucrative and secure option for those looking to diversify their portfolio. By doing your due diligence and carefully reviewing the investment terms, you can minimize risk and maximize your potential returns. How invoice discounting works and how each counterparty benefits Invoice discounting is a financing solution that allows businesses to get immediate cash flow by selling their outstanding invoices to a third-party at a discount. Here's how it works and how each counterparty benefits: The business (seller) sells their outstanding invoices to a third-party (factor) at a discount. The factor pays the business a percentage of the invoice value upfront, typically around 80%. The factor then collects the full amount of the invoice from the customer (buyer) when it's due. Once the customer pays the invoice, the factor deducts their fee and returns the remaining amount to the business. Each counterparty benefits in the following ways: The business benefits by receiving immediate cash flow to fund their operations and cover expenses. They also save time and resources by not having to chase down customers for payment. The factor benefits by earning a fee for their financing services. They also assume the risk of non-payment from the customer, which can be beneficial for businesses with a high risk of bad debt. The customer benefits by being able to extend their payment terms, which can improve their cash flow and help them manage their finances more effectively. Here are some risks investors should be aware of when considering invoice discounting: Default risk: If the debtor defaults on payment, the investor may not receive the full amount invested. Concentration risk: if the investor invests heavily in one debtor, the risk is higher if that debtor defaults. Interest rate risk: if interest rates rise, the return on investment may not be as attractive. Operational risk: if the invoice discounting provider fails to manage the process effectively, there may be delays or errors in payments. Regulatory risk: Changes in regulations or legislation could impact the viability of invoice discounting as an investment option. Please reach out to if you are looking to invest in Invoice Discounting.

Outsource your Stock Market Entry / Exit decisions to professionals How do Balanced Advantage Funds work? They Increase or decrease the allocation to equity-based pre-defined criteria* *Each fund house has its own in-house research-backed criteria and asset allocation strategy Why outsource the market entry/exit decision to BAF? Choosing the right Asset Allocation is not easy Keeping up with the markets is difficult How to decide – “When to enter and when to exit? It’s full-time work that needs significant resources Fund Houses take a systematic, research-backed Asset Allocation approach Elimination of psychological barriers Tax efficient as they are taxed as per Equity Oriented Funds Investors are recognizing this category Nifty 18K in Oct 2021 to 18K in May 2023 ICICI Prudential BAF Performance BAF Advantages: Automatically move between equity to debt & debt to equity Convenience and Simplicity Potential for favorable risk-adjusted returns Tax Efficiency "Like the diverse brushstrokes of artists, each Mutual Fund has its own unique approach to Dynamic Asset Allocation, crafting a variety of investment strategies guided by the skilled hands of their fund managers“ Would you like to understand if this suites for your requirement? And which fund is better for you? Click on "Contact Us" menu and request for a call back.

A sound investment strategy can aid you to increase your wealth and could secure your family’s financial future. ULIPs (unit-linked insurance plans) and mutual funds are both attractive investment vehicles for investors looking to create wealth in the long-term. However, comparing mutual fund investments with ULIPs is like comparing oranges with apples. Let’s understand the difference between ULIPs and mutual funds. What is a mutual fund? A mutual fund is a financial vehicle wherein an AMC (Asset Management Company) manages the money of several investors. The collected funds are further invested in different securities such as bonds, stocks, and money market instruments, etc. The performance of your mutual fund scheme is directly proportional to the performance of these underlying securities. Mutual funds are pooled investments that are managed by professionals known as fund managers. It is similar to boarding a flight, wherein the pilot takes all the passengers to a particular destination. In this instance, the pilot is the fund manager, the airport is the mutual fund scheme, and the passengers are the investors. Fund managers are mutual fund experts who have in-depth knowledge about the complexities and volatilities of the financial markets and make appropriate asset allocation decisions. What is a unit-linked insurance plan? A unit-linked insurance plan, or ULIP, is a combination of investment and insurance. ULIPs are insurance policies that offer an investor the potential to create wealth while simultaneously providing them with the security of a life cover. Under ULIPs, a part of the premium goes towards providing the investor with a life insurance cover. These charges are called mortality charges. The rest is pooled and invested in debt or equity instruments or a combination of both to help create wealth in the long-term. Difference between ULIPs and mutual funds To gain some perspective on ULIPs and mutual funds, you must first understand the difference between the two investment products. Following are some of the significant differences between mutual funds and ULIPs. 1) Investment objective A mutual fund is a pure investment product that offers the sole benefit of creating wealth and has potential to generate reasonable returns in the long-term. On the other hand, ULIPs are primarily an insurance product with the added advantage of being a market-linked investment. 2) Return on investment The returns on ULIPs can be dynamic as they invest in equity, debt, or a combination thereof. The returns on mutual funds vary too depending on the type of scheme opted for and can range from low to high. There is no guarantee of minimum returns in mutual funds 3) Lock-in period As ULIPs are insurance products, insurers define lock-in period of generally 5 years for these investments. Investors cannot redeem their investments before this lock-in period is over. On the other hand, most mutual funds, especially open-ended mutual funds, do not have a lock-in period, except for ELSS funds, which have a lock-in period of 3 years to be able to provide tax benefit under 80C (section limit of 1,50,000) 4) Transparency Recent regulatory amendments by the IRDAI have made ULIPs quite transparent; they now provide upfront information on fund allocation. In the case of mutual funds, fund houses are mandated to provide a detailed report of the mutual fund investments. Financial markets’ regulator SEBI has advised fund houses to provide detailed information on asset allocation, portfolio holding, active fund manager(s), fees charged, etc., w.r.t different schemes. 5) Taxation Tax on mutual funds: LTCG (long-term capital gains) and STCG (short-term capital gains) tax of 10% and 15% (plus applicable surcharge and cess) , respectively, is levied on equity funds depending on the holding period. For debt mutual funds, LTCG tax is levied at 30% (plus applicable surcharge and cess) after indexation, while STCG tax is levied according to the investor’s income tax slab. Equity-Linked Savings Scheme (ELSS) funds qualify for a tax deduction of up to Rs 1.5 lac under Section 80C of the IT Act, 1961 Tax on ULIPs: Returns on ULIPs are tax-free under Section 10(10D) of the Income Tax Act, 196. 10(10D) basically says, if the sum assured is less than the 10 times of annual premium, then 10(10D) is not applicable. Especially, if an insured charged with additional loading while issuing the insurance policy, then the returns are taxed. 6) Expense Investing in mutual funds incurs professional management fee as well as operational fee, collectively referred to as an expense ratio. Some mutual funds also charge an exit load, i.e. a charge for leaving the scheme. When it comes to ULIPs, the charge levied includes premium allocation charge, fund management charge, administration charge, mortality charge, etc. 7) Risk cover Under ULIPs, nominees are compensated for the sum insured in case of the policyholder’s untimely demise. However, in the case of mutual funds, the investments are transferred to the nominee. 8) Risk cover Under ULIPs, nominees are compensated for the sum insured in case of the policyholder’s untimely demise. However, in the case of mutual funds, the investments are transferred to the nominee. 9) Charges in Mutual Funds vs ULIP Following charges may be applicable in ULIPs and Mutual Funds ULIPs: Switching Charges: If you are switching the invested amount from one fund to another fund, there could be charges levied Fund Management Charge (FMC): The daily unit price is calculated allowing for deductions for the fund management charge, which is charged daily. This charge will be subject to the maximum cap as allowed by IRDAI Mortality Charge: Every month we levy a charge for providing you with the death benefit in your policy. This charge will be t a k e n b y c a n c e l l i n g u n i t s proportionately from each of the fund(s) you have chosen. The mortality charge and other risk benefit charge are guaranteed for the entire duration of the policy term. Partial withdrawal charge: This will be levied on the unit fund at the time of part withdrawal of the fund during the contract period Policy Administration Charges & Premium Allocation Charges are levied during discontinuation period Discontinuation charges may be applicable if premium payments are discontinued. Mutual Funds: Exit Load: When investors exit a mutual fund scheme within a specific period from the date of purchase, an exit load is levied on these individuals. AMCs impose an exit load on investors to discourage them from opting out of a mutual fund scheme prematurely. Moreover, this fee allows fund houses to reduce the volume of withdrawals. Generally, fund houses charge an exit load of around 1% on redemption value. It is common for the fund houses to charge exit load if you as an investor redeem the units within a year. While there is no exit load is charged post one year of investment in the same scheme. Expense Ratio This charge is synonymous with mutual fund fees and charges for most investors. Expense ratio is an annual fee, which is expressed as a percentage of a fund’s daily net assets. It is charged by an asset management company for managing an MF scheme. Therefore, it covers all the costs of managing and running a mutual fund scheme. Such costs include sales and marketing expenses, administration fees, distribution fees, fund manager’s fees, etc. The expense ratio is calculated by evaluating a scheme’s total expense incurred and dividing this figure by an AMC’s total assets under management (AUM). Mutual funds are the ideal investment choice under the following circumstances: If someone wants to invest for a short- or long-term goal If someone wants to build your wealth If someone is looking for reasonable returns on investments If someone believes ELSS returns are better even after LTCG and want to have less lock-in period. ULIPs are the ideal investment choice under the following circumstances: If someone is looking for a tax-saving investment under 10(10D) If someone is seeking a life insurance policy If someone wants to invest for a long-term horizon. ULIP vs. mutual fund The following table provides elaborates on mutual funds vs. unit-linked insurance plans: The aforesaid table is shown for illustration and understanding purposes only. Investments in mutual funds relatively carry higher risks. There is no assurance or guarantee of minimum returns in mutual funds Which is better? Mutual fund or ULIP? The decision to invest in mutual funds or ULIPs solely lies with the investor. Before investing in any instrument, an investor should analyze their financial needs. The right investment option is one that aligns with the investor’s financial goals, risk profile, and investment duration. For instance, if investments needs to be liquid, one can consider investing in mutual funds as ULIPs have a minimum lock-in period of 5 years. Of course, not all mutual funds are liquid, and tax saving mutual funds (ELSS funds) have a lock-in period of 3 years. On the other hand, if someone is looking for insurance as well as wealth creation, one can consider investing in ULIPs. In a nutshell, the primary aim of ULIPs is to insure the investor’s life, while the primary goal of mutual funds is wealth creation. Choose wisely, happy investing! The information given here is neither a complete disclosure of every material fact of Income-tax Act 1961 nor does it constitute tax or legal advice. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme

#healthinsurance #healthinsurancetypes #healthinsurancefeatures Health insurance is a medical insurance policy that offers financial coverage for medical expenses when policyholder is hospitalized. The health insurance plan ensures cashless treatment, reimbursement of medical expenses & day-care hospitalization along with comprehensive coverage for pre & post hospitalization expenses etc. Types of Health Insurance Plans: Individual Health Plans It offers a good number of benefits and additional coverage such as cashless hospitalization, compensation, and daycare assistance. It comes with add on covers that will help you to enhance your health insurance plans. It will be good for you as an individual. Family Health Insurance Plans It is the ultimate and the best plan which will cover you and your family at one single plan and against a single amount of premium. The sum insured should be taken as per your convenience as it will be divided equally among all. It will give you benefits, and you can track each and everything at a single plan. Some companies provide either one time or unlimited restorations of sum assured. Top-up Plans If someone has individual / family health insurance plans, you can enhance the coverage using top-up plans. They provide very high coverage for nominal price. The higher the base cover (also called as deductible), lower the top-up plans premiums. Top-up plans are activated only after deductible amount is fully spent from base insurance plan. Senior Citizen Health Plans It provides coverage above the age of 60. It covers the hospitalization expenses, in-patient covers, OPD expenses, and daycare expenses, etc. And gives you the tax exemption under Section 80D.Generally,these policies have co-payment (certain % of the money is paid by the policy holder) unless specified. Critical Illness Plans It offers the lump-sum amount in cases where the insured is diagnosed with critical illness problems such as kidney failure, heart-related problem, cancer, paralysis, etc. It carries huge benefits to cover the income loss or additional expenses that can not be covered by any insurances. Personal Accident Plans It offers insurance coverage in case of an accident that leads to partial or full disability or sometimes to death. It covers the hospitalization and bears all the medical health expenses. A fixed amount of benefit is given to his or her family. Benefits One should know the limits, sub-limits, waiting periods, inclusions and exclusions, co-payment conditions while buying a product. • Cashless Hospitalization It is the most appreciated thing while you get an insurance policy from the insurance provider. It provides cashless treatment in the network hospitals. • Less premium high coverage It is a good and a plus point that insurance helps you in getting a high coverage and a high sum insured with a low amount of premium policy. • Financial assistance One can easily get financial assistance if he or she has the coverage and have the insurance policy. It will be helpful and can save your hard-earned savings to get collapsed. • Transfer your risk You can easily transfer your risk from yourself to the insurance company. • Tax benefits You can get the tax benefits under your health Insurance plans under the section 80D. So check some of the health insurance-related plans with us and you can get the best one. It is good and important to buy a health insurance policy and we are always there to assist you regarding the same. Important Features to Consider: Age Lock Feature Unlimited Recharge 10X boost of un-used Sum Assured Higher Pre and Post Hospitalization Expenses Consumables Cover Health Check-up from 1st Year Cover BP and Diabetes from Day 1 No Co-Payments No Limits and Sub-Limits Best Service

Choosing the right type of life insurance policy is one of the most important requirements for a comfortable, hassle-free life. Not only does a life insurance policy guarantee that one’s dependents will be well looked after even if they are no longer around, but it can also contribute to building a substantial corpus to fulfill their future financial goals. Life insurance is an arrangement between the insurer which assures of compensation for loss of life in return for the payment of a pre-determined premium. There are different types of life insurance policies in India. One can choose a life insurance plan based on their unique individual requirements. Read this article to learn about different types of life insurance and their benefits. Tax Benefits Insurance plans benefits extend beyond just life cover, especially when it comes to the tax advantages they offer. There are quite a few tax benefits of having life insurance. The premiums paid for life insurance plan are eligible for tax deductions under Section 80(C) of the Income Tax Act, 1961. Tax benefits are according to your tax slab. However, this is not all. If one opts for health riders such as a critical illness cover along with their term plan, tax benefits under Section 80(D) of the Income Tax Act will apply to the rider premiums paid towards the rider. Additionally, the lumpsum sum assured paid out as a death benefit in a term insurance plan is exempted from taxes under Section 10(10D) of the Income Tax Act. This also applies to the sum assured paid out on the riders added to an insurance plan. All these are the tax advantages of an insurance plan. Different types of life insurance coverage are: Term Insurance Term insurance plan is the simplest form of insurance, which in case of a policy holder’s demise, ensures that the family gets the sum assured. It offers risk coverage for the duration of the policy term. The Sum Assured is paid to the beneficiary who is nominated by a policy holder. This is paid out as a lump-sum amount, or a combination of lump sum and monthly amount based on the plan chosen. In general term insurance cover should take care of your family living expenses in your absence after clearing all the debts / loans. Ideal way to invest the money coming out of term insurance is to invest in Annuity plan either immediate or deferred option depending on cash flow at the time of demise. Important riders: -> Double Accidental Death Benefits -> Income on Permanent Disability -> Critical Illness Cover, Waiver of premium. Payment options a) Regular Pay: Choose to pay till end of the term also called as Regular premium. b) Limited Pay: Choose to pay in single, premium, or limited premiums or till you turn 60 years of age. Example: if you are taking term insurance cover up to 75 years of age and your retirement age is 60 years, it is difficult to pay the premium after retirement, in these scenarios you can choose to pay using limited premium payment options. Whole Life Policy Whole life insurance is a type of life insurance that offers coverage right until the death of the policyholder. In this policy, you can opt for either a participating or non-participating policy, as per your financial needs and risk appetite. Though the premiums for participating whole life insurance are higher in comparison, dividends are paid out at regular intervals to the policyholders. The premium rates for a non-participating policy are lower, but the policyholder generally cannot avail the benefits of regular dividends. Endowment Policy Endowment policy is type of life insurance policy which acts as, both, an instrument for insurance and saving. These plans aim to provide maturity benefits to the life insured, in the form of a lump sum payment at the end of the policy tenure, even if a claim hasn’t been made. It is the most suitable types of life insurance for people looking to get maximum coverage alongside having a sizable savings component. They help the policyholder inculcate the habit of savings, even while providing financial security to their family. Money Back Policy Being one of the best types of life insurance policies, a money-back policy offers policyholders a percentage of the total sum assured at periodic intervals in the form of Survival Benefits. Once the policy reaches maturity, the remaining amount of the Sum Assured is handed over to the policyholder. However, if the policyholder dies while the term is ongoing, their dependents are given the entire Sum Assured without any deductions. Annuities and Pension In return for a lump sum, an insurance company gives you an annual income for the rest of your life. This is great if you live to a ripe old age and can take advantage of the income. Annuity plan either immediate or deferred option depending on cash flow at the time of investing. Annuity plans are the only products that provide lifetime guaranteed returns. Payouts either monthly, quarterly, half-yearly or yearly with or without Return of Purchase Plan. You can choose to have your spouse or kids as joint life to get the pension. After the demise of 1st annuitant, 2nd annuitant will start getting the pension. You can choose to give the initial invested money to 3rd person (nominee) after the demise of 2nd person. This is possible only if you choose Return of Purchase Plan option. Different companies have different entry age to invest in Annuity plan. Returns out of Annuity plans are taxable unless specified. ULIP Unit Linked Insurance Plan or ULIP is a type of life insurance product that offers dual benefits of investment and life insurance. Among the different types of life insurance policies available, ULIPs enjoy a high amount of popularity owing to their versatile nature. A portion of the premiums paid is directed towards ensuring insurance coverage, while the rest of the premium is invested into a bouquet of investment instruments, which can include market-backed equity funds, debt funds and other securities. ULIPs are extremely flexible instruments since investors can easily switch or redirect their premiums between the different funds available. They are also touted as having an edge over other market instruments in terms of tax-saving benefits, since their proceeds are exempted from LTCG (Long Term Capital Gains).

Careful planning can always help reach your financial goals. It may seem like hard, but doing so can prepare you for a more comfortable life when you decide to stop working and start enjoying your retirement. You may make change as needed but remember to stick to the plan so that you can achieve your milestones without delay and achieve your goals exactly you made them when you were younger. >Age plays a crucial role in financial planning. As soon as you start earning, you need to understand basics of financial planning. Identify short-term and long-term goals. Understand and identify priorities depending on age and life stage. There are many financial instruments in the Indian market. It is recommended to take the help of professional financial planners. Your 20s would be your first foray into the professional world, which means this is the time when you’ll start earning your own money. It’s also an excellent time to set your financial goals and decide on your approaches to accomplish those milestones. This may be exciting times since you’re earning your own money and you’d want to spend it on things you probably don’t need / exciting, while you keep aside some budget for your basic needs and adequate partying it is important to start saving on priority. You need to pay back your educational loans as soon as possible in case of any. Start building good credit history that helps you get home loan etc at best interest rates. When you save / invest in financial products it is important to understand insurance products are generally age based. For the same benefits, you will pay less when you are younger and gradually pay more as age grows. You need to understand the insurance needs for various goals like family security, kid’s higher education, kid’s yearly education and retirement. Generally, insurance products are needed for the goals that need to be secured even when you are not around for the family due to unforeseen events in life. In our view, once kids are born education must continue irrespective of bread winner is alive or not. At least basic education should be insured while you continue to invest in higher return investments for best possible education (like best B-Schools, Medicine, International education) for kids. Even for retirement, there are few suitable products that you can consider for some part of your retirement need and keep exploring and understanding on various ways to diversify your investments for retirement. In India marriages are considered grand event for life. Spend lot of money on clothing, ceremonies, food and hosting friends, relatives, and well-wishers. It is important to plan for marriage and honeymoon expenses instead of getting into debt trap by taking loans and using credit cards for these expenses. Try and spend within available budget and savings rather than taking loans and using credit cards. 30s are when things get serious and expensive life events happen. People get married, have kids, and buy a home. These significant milestones mean that even if your earnings grow, you may find it challenging to figure out how to save for retirement or avoid getting into debt. An excellent way to deal with this is as your salary increases, you figure out ways how to live below your means and save whatever extra you make from raises and bonuses. Remember, a home is one of the largest investments you’ll make in your lifetime and paying off a mortgage can reach up to 30 years. Raising children is another big investment that requires careful financial planning to be able to attend to their needs. Keep in mind that it gets more expensive as they grow older and when you start providing for their education. It is important to make sure, you have 6 months earnings / savings as emergency funds to be able to manage job risks / income loss / any unforeseen expenditure that come across. It is also important to make sure you keep aside your yearly commitments by saving them in low risk and high liquid debt instruments. Fixed Deposits / Recurring deposits are not ideal as the returns are considered as income attract higher taxes. Please talk to us how where to park these funds aside while they are available to liquidate any time and generate good returns. Now that you’ve started a family, some or even all may be dependent on your income, so it’s important to complete your life insurance policies and start creating a will. Getting life insurance in 30s if not 20s allows you to lock in a lower rate while you’re still young and healthy. Never leave your insurance needs to 40s. Once you reach 30, it’s time to increase your contributions for your retirement fund. If you started at 10% in your 20s, you could increase it to not less than 15% of your income. Middle age is when you’re more established in life, Income is at lifetime peaks and your finances should be able to reflect that. This will help you aim for more critical milestones in life. Hopefully, your debts are kept at the minimum. This includes car loans, credit card bills, home loans, and other consumer debt, which allows you to focus on other essential aspects, such as your kids’ college education. identify where to enrol them, so you have an idea on how much to spend on tuition. Another great goal to work on at this age is to have twice your annual income saved in your retirement accounts. You can augment this by finding other sources. You can do this by starting a small business or perhaps take on freelance projects that fit your skill. As soon as you enter 40s, it is important to make sure you have adequate and best health insurance plan. People generally expose themselves to health issues due to stressful work, responsibilities at home and social pressures. Taking health insurance while you are healthy helps avoiding loading and policy declines. You should make sure to diversify your investments into multiple financial instruments like Gold, Stocks, Mutual Funds, Bonds, Debentures, Retirement Plans, Real Estate and other structured products and alternative investments. Time flies fast. And when you’re close to the end of your professional life, it’s where everything starts to slow down, so take the necessary measures to max out your retirement contributions to help prepare you for retirement. Meet your financial advisor to help you figure out which options that work best for you. It would be ideal to pay off your mortgage to give you more financial freedom, which you should take advantage of for your retirement. By this time, it would be best to have saved around four to five times your annual salary for a more comfortable life as a retiree. Start to identify ways to earn your pension through various options like Systematic Withdrawal Plans, Annuity Plans, Guaranteed pension products, rental income, Provident Fund, Public Provident Fund and National Pension Scheme etc. Being a senior citizen is the time when all your savings and smart planning should be paying off. You can fine-tune your retirement goals according to your preferred lifestyle as you enjoy the rest of your days. You can consider downsizing your home or move to a smaller house to lessen your expenses. Finalize your will in case you wish to alter a few details. If needed, you can make other significant changes as you transition towards retirement. Review your life insurance policy to make sure everything is in place. Look into long-term care if you deemed it suitable for yourself and your spouse. Ideally, this should be in place before you need it. Conclusion All this may seem daunting, but you’ll have to step back and look at the bigger picture to help you put things into perspective. Keep in mind that there is no cookie cutter way to achieve success, so you don’t have to be discouraged if you passed these milestones. What you can do is take a moment to think about where you are and how your finances are doing, so you can make the necessary adjustments. The key is to always make deliberate choices when it comes to your finances. You should also be aware of these milestones, so you can never lose track of your financial goals up until you settle comfortably into retirement.

If you're feeling uncertain about your finances, you're not alone. Many people struggle with financial uncertainty at some point in their lives. Here are some reasons why you may be feeling uncertain about your finances: You're not sure how to create a budget that works for you. You're living paycheck to paycheck and don't have any savings. You're in debt and don't know how to pay it off. You're not making enough money to cover your expenses. You're going through a major life change such as a divorce or job loss. You're worried about retirement and if you'll have enough savings to live comfortably. You're not sure how to invest your money wisely. No matter what your financial situation is, there are steps you can take to improve it. Seeking advice from a financial professional or creating a plan to manage your money can help you gain more control over your finances and feel more confident about your financial future. Take a moment to consider these important questions for yourself: Does your current advisor? Align your current investments with your goals? Plan for emergency funding? Conduct a product comparison study? Provide any fixed / secure alternative earnings? Ever suggested products like NCD, MLD, Bonds etc? Do you know all the Financial Products? Do you know products beyond FDs, Insurance, Stocks, Mutual Funds and Real Estate? Do you know there are products that you can earn 8% without locking your funds? Do you know you can invest in Real Estate with minimum investment? Do you know how to plan for these important goals and life stages? How do you plan for children's higher education? How do you plan for annual education of children? How do you plan your child marriage? How do you plan for retirement? How do you protect your family in your absence? How to plan to buy a house or a car or to a foreign trip? Do you have these questions around stock market? Is the stock market always at risk? Is there a safer investment opportunity? Are F&O/derivatives suitable for me? Are there other options besides stocks and mutual funds? Do we need gold as an investment? Do you know the following about Life Insurance? Do you really need insurance? Which insurance products do you need(do not need)? How to determine time period and coverage? How to determine adequate cover? Do you know the following about Health Insurance? Difference between base & top-up plans? What is unlimited restoration of SA? Does your plan include cover consumables? Are there any limits, sub-limits in your policy? Difference between Corporate & Personal health insurance? Can I pay the premium of my entry age even if my age increases? Connect with our experts to get these questions answered for you.