Make Your Money Work For You
‘Just Keep Buying’, published in 2022 is a straightforward approach to personal finance that revels in debunking falsehoods and eliminating old cliches about money and personal finance. It delves into the psychology of money and presents a practical guide to making healthy financial decisions, including all-important subjects such as saving and making investments. The author, …
Bond funds can transfer corporate bonds to a separate account if the bonds they own fail to pay interest on schedule or are downgraded in credit. This separate account is known as the ‘side pocket’. We must exercise caution when an AMC sends a communication to the unit holders of one of its funds stating …
Despite increased knowledge of health insurance, many aspects of health plans remain poorly understood by policyholders. Let us try to understand the basic difference between the add-ons ‘top-up’, ‘super top-up’ and ‘Unlimited restoration’ in a health insurance policy. Firstly, a ‘top-up plan’ is an add-on coverage that supplements a health insurance policy. It provides additional …
The Finance Ministry recently penalized Public-sector Banks (PSBs) for improperly marketing products related to insurance. The Central Vigilance Commission has also warned against compelled insurance sales, claiming that the temptation of commissions from their sale might alter the overall quality of loans issued. While government bodies and its agencies are taking efforts to avoid mis-selling, customers …
When closing an FD for a sudden need or for any short-term requirements, there are a few economically viable solutions to consider. The alternatives should be designed to reduce borrowing costs and maximize the use of the FD, allowing you to obtain the lowest loan option if an emergency demands a short-term monetary commitment. In both …
We all are aware of Peter Lynch, the former manager of Fidelity Funds, and has been a prominent fund managers of his time, and his philosophies about stock investments are truly valid even now. In his books, Peter Lynch regularly looked into information regarding growth-oriented companies that capitalized on current market trends. When traditional criteria such …
A solid credit score is an important aspect of one’s credit history. A credit score is a figure that falls between 300 and 900. The score is better when it is closer to the upper end of this range. Credit score takes tremendous importance as it is one of the primary elements utilized by a …
It is critical to make sure that the wealth you acquire is available to the beneficiary when the funds are needed to achieve an important life goal. For example, parents who establish an education fund for their kid’s college education must ensure that the money accumulated in the fund is conveniently available when the child starts …
The Finance Act of 2023 removed the indexation advantage from debt mutual funds. It says that profits from funds having an equity proportion of less than 35% will be taxable as short-term capital gains (STCG), regardless of holding duration. Non-equity fund STCG is taxed at their respective slab rate. It is 30% plus surcharge and cess …
We understand that bank fixed deposits (FDs) are vital for goal-driven investments since they assist in controlling reinvestment risk. Reinvestment risk is the chance that an investor won’t be able to invest back the cash flows from an investment—like interest or coupon payments—at a pace that matches their current rate of return on the investment. Investors …