Does your existing life insurance policy cover your future household expenses, your children’s education & marriage goal and your outstanding liabilities? How much cover is adequate for you? More »

Is your PPF and EPF savings enough for your survival during retirement? How much money would you require during retirement years? More »

How much are you saving every month, every year? Is it getting invested in the right financial products? Is it sufficient to meet all your financial goals? More »

Are you dependant only on your employer for health insurance coverage? Do you have a personal individual health insurance policy? More »

Do you have enough liquidity to meet any contingencies like medical situation, loss of job, etc? More »

 

How can a Woman kickstart her career again after Maternity Break?

It is a hard fact that women through the journey of marriage and motherhood have to bear the brunt of a major part of household responsibilities and family expectations. Practically speaking, in most cases, a mother cannot have best of both the worlds, a great full-fledged career working at least 12 hours AND at the same time be a great parent devoting ample personal time to the child too. But in today’s times, a woman need not totally give up her career either. Those extended maternity breaks need not turn them into full blown stay-at-home moms.  If a woman perseveres, she can find a middle way out.

Can SIPs in equity mutual funds help to avoid losses?

Advertisements with the tag line ‘Mutual Funds Sahi Hai’ have become popular among retail investors. Such awareness programs are run by Association of Mutual Funds of India (AMFI) and individual fund houses to educate retail investors. Investors now know that one does not need a huge lumpsum amount to invest in the stock markets. Even small amounts as low as Rs.500 can be invested in mutual funds on a regular basis to create long term wealth through SIP (Systematic Investment Plan).

How do Direct plans in Mutual Funds make a difference to your long-term returns?

The regulations in the mutual fund industry have evolved over time and in the best interest of investors. After the abolition of entry load in 2009, the SEBI introduced zero-commission, i.e., direct plans in 2013. This means that you as an investor can directly buy mutual funds from the fund house with no distributor/broker/agent in the picture. Thanks to the internet and the various digital platforms available today, it has become even more easier now to buy mutual funds directly online.

4 Ratios which can give a quick idea about your present Financial Health

It is amazing how certain subjects we dread or find boring in our primary school days become interesting later on in life. Maths was not really my most loved subject in schooling years. As I started working, I realised I was using many of the concepts in my daily job. One of the most extensively used was ratios. Ratios help compare two or more numbers. I used it to analyse company balance sheets in my earlier job. In fact, knowingly or unknowingly, we all take help of ratios in our daily lives. Be it measuring in probabilities, in proportions while cooking, interpreting health diagnostic reports, etc.

Similarly, ratios can be used in your personal finance lives too. Ratios are a beautiful way to interpret your personal finances. It will give you some rough idea about where you stand financially.

Lending money to Friends and Relatives? Think about these points first

Amidst our hundreds and thousands of Facebook and Whatsapp contacts, it all boils to a handful of people who truly matter in our lives. Friends and relatives with whom we have forged strong ties since ages. But even with these loved ones, things can become awkward, especially when it comes to money. It can be a sticky situation when friends/relatives ask for money. It could be even someone from your business community. You may harbour a life principle not to get into such a precarious position at all and keep money and relations separate. Or you may contemplate to lend but fear relations can sour in the future.

As William Shakespeare popularly quotes: Neither a borrower or lender be, for loan often loses both itself and friend.

When should you not buy Life Insurance?

Many a times, what we do not do is more important than what we do. Similarly, understanding something which is not, can give insights into what that something actually is. This thought process can be applied to life insurance which is the most misunderstood concept in the personal finance world and bought for all the wrong reasons. So, instead of writing on the usual life insurance topics of why to buy, how much to buy and when to buy, I thought of penning down about when not to buy life insurance. I am hoping if you really understand when is it unnecessary to buy life insurance, you will be able to comprehend its genuine need. If you do not own a car, you do not need auto insurance. Similarly, in certain situations, life insurance is not required or some people may outlive the need for insurance in their lifetime.

How you can create a separate Vacation Fund for frequent getaways

There has been a marked change in the way Indians are holidaying in recent years. Instead of one big break, you will observe that many couples frequently undertake multiple short trips. This is unlike the earlier generation which waited till retirement to plan an international trip or travelled just once in a year. Be it an adventure trip or just relaxing in a resort, a weekend trip is a perfect way for the current generation to unwind. These short trips are undertaken 2-3 times in a year. Planned within a month, the cost of these short trips start from Rs.10,000-15,000, each. If one stays in a more than decent resort, the cost can go up to Rs.30,000-35,000 for a usual family of four. If planned further from the home city and in another state for 4-5 days, the cost can go up to Rs.60,000-70,000 or even more.

The one crucial thing that you should NOT ignore while selecting an Equity Mutual Fund:

Investors lay a lot of emphasis on past returns and star ratings while selecting an equity mutual fund. Some do-it-yourself investors (DIYers) also consider investment objective, fund size, expense ratio, fund house, fund manager, etc. But there is one crucial factor that investors usually ignore in fund selection. In a scheme document or a fund advertisement, the one thing that is always mentioned is “Mutual funds are subject to market risk”. Yes, it is the RISK FACTOR that investors do not consider at all in selecting a fund. You must be knowing that higher the risk, higher the returns. What do you think is better & preferable – 18% returns with acceptable risk or 20% returns with very high risk? Do you know how much risk is your mutual fund taking in generating an X% of return for you?  How will it perform in a falling market?

Is your Mutual Fund performing well? How do you evaluate?

With the rising stock markets, the value of your equity mutual fund must also be going up. Assume your mutual fund has clocked 15 per cent annualised returns. On the face of it, 15 per cent returns look good, as it has obviously beaten inflation. But is this enough? How do you interpret this 15 per cent? Analysing it in isolation is not very helpful. Performance must be viewed on a relative basis. Here is how you can evaluate your mutual fund performance.

The Snowball Effect: Compounding your Wealth to Riches

In all my years of experience in the financial planning profession, I can surely tell that the science behind getting wealthy is very elementary. There is no secret to getting rich. Getting rich is not just confined to people who are earning high incomes or doing business or investing in properties or taking bets in stock markets, commodities, foreign currency, etc. Even an individual with average income can become rich. Let me show you how and prove with numbers.