tag:blogger.com,1999:blog-36924097841565515092024-03-04T22:23:26.722-08:00INVESTMENT SOLUTIONS(A Complete Basket of Investment Products)INVESTMENT SOLUTIONShttp://www.blogger.com/profile/14257091667993229329noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-3692409784156551509.post-65942792623209202862024-01-29T13:40:00.000-08:002024-01-29T13:42:58.579-08:00STOCKS MOVEMENT LINKED ON AYODHYA RAM MANDIR<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8Z9p_NzLXFhh0N-4cAta6TIvUOq6pqemYyLZiR0c8UNS8vDtmPaN2lmQsuR0Vxu4NcWEZL4VhqtRzNxXMn3EscAVmtJ90tnDu-IQfIlMkULBcyXxAfE5RsE9W_rjshVszqblkR9LTgKcG4lRuR5veHP6tuxq5uR0bX-di6GzjXyetKAT-EczJ6-NPZ0gL/s6250/ram%20mandir%20blog%20(1)_page-0001.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="6250" data-original-width="3375" height="975" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8Z9p_NzLXFhh0N-4cAta6TIvUOq6pqemYyLZiR0c8UNS8vDtmPaN2lmQsuR0Vxu4NcWEZL4VhqtRzNxXMn3EscAVmtJ90tnDu-IQfIlMkULBcyXxAfE5RsE9W_rjshVszqblkR9LTgKcG4lRuR5veHP6tuxq5uR0bX-di6GzjXyetKAT-EczJ6-NPZ0gL/w527-h975/ram%20mandir%20blog%20(1)_page-0001.jpg" width="527" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUg3w5Xm16py1sT1WokT4khcIb7s4i4HtyWMcgvy9KqWb-n7WaydAmUmlhdfPlwBcXtCaJ-iNkaWd40zHleJJbTUPLJB2KfA6__vUfYwQERIQWy1lnMKwzhG2OfoIb8uzzthuNpfaQeL334QkiUq5U9PTDZvLztS4Gnbxeaq2ebIp_lMkh_i0NvMkxJgDV/s6250/ram%20mandir%20blog%20(1)_page-0002.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="6250" data-original-width="3375" height="1004" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUg3w5Xm16py1sT1WokT4khcIb7s4i4HtyWMcgvy9KqWb-n7WaydAmUmlhdfPlwBcXtCaJ-iNkaWd40zHleJJbTUPLJB2KfA6__vUfYwQERIQWy1lnMKwzhG2OfoIb8uzzthuNpfaQeL334QkiUq5U9PTDZvLztS4Gnbxeaq2ebIp_lMkh_i0NvMkxJgDV/w543-h1004/ram%20mandir%20blog%20(1)_page-0002.jpg" width="543" /></a></div><br /> <p></p>INVESTMENT SOLUTIONShttp://www.blogger.com/profile/14257091667993229329noreply@blogger.com0tag:blogger.com,1999:blog-3692409784156551509.post-71974418299353561442019-10-24T13:28:00.002-07:002019-10-24T13:29:01.613-07:00Choosing Health Insurance <div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="color: red; font-family: "arial"; font-size: 10pt; letter-spacing: 0pt;">How to choose the Best Health Insurance Policy?</span></b><span style="color: #757575; font-family: "arial"; font-size: 10pt; letter-spacing: 0pt;"><o:p></o:p></span></div>
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<span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">Health Insurance is designed to take care of one’s healthcare expenses, in case the person </span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">faces any sort of medical emergency, be it an illness or an accident that has led to hospitalization(Policies generally cover OPD expenses also). The insured either has to pay such expenses out-of-pocket</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"> </span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">& is later reimbursed by the insurer or the insurance company settles the </span><span style="font-family: "calibri";">bill directly with the hospital.</span></div>
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<span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">You should pay heed to following points before choosing a health insurance policy:</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"><o:p></o:p></span></div>
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<span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"><b><span style="color: red;">Pre & Post Hospitalization Coverage:</span></b> When one falls sick, one usually consults a physician and</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"> </span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">gets relevant investigations done for proper diagnosis. The physician may initially prescribe</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"> </span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">certain medications. In spite of this treatment, if the condition of the patient does not improve the</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"> </span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">physician advises the patient to get hospitalized for further management of the disease. Such</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"> </span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">medical expenses incurred before hospitalization are called Pre-Hospitalization Expenses. During</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"> </span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">hospitalization, a major part of the treatment is complete but some part of the treatment extends</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"> </span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">beyond the hospitalization. It may involve follow-up visits to the doctor, medicines to be taken or</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"> </span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">follow-up investigations to be done. Such medical expenses are called Post-Hospitalization Expenses.</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"> </span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';">A good policy will cover 30 days for Pre Hospitalization expenses & 90 days for Post Hospitalization expenses.</span><span style="font-family: "calibri"; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: SimSun; mso-spacerun: 'yes';"><o:p></o:p></span></div>
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<span style="color: red;"><b><span style="font-family: "calibri"; letter-spacing: 0pt;">Premium</span><span style="font-family: "calibri"; letter-spacing: 0pt;">: </span></b></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;">W</span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;">e should compare the premiums of health </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">insurances offered by</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;"> </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">different insurers for a certain sum of coverage. We can easily get this </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">data from</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;"> </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">many online health insurance comparison websites. We can save some amount </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">of money through this comp</span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">arison.</span></div>
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<b><span style="font-family: "calibri"; letter-spacing: 0pt;"><span style="color: red;">Bed Charge Coverage</span></span></b><span style="font-family: "calibri"; letter-spacing: 0pt;"><b><span style="color: red;">:</span></b><span style="color: #222222;"> It means the amount of money that is covered for each day</span><span style="color: #222222; font-family: "arial";"> </span></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;">of your stay at the hospital. You should inquire about whether the policy covers Single<span style="font-family: "arial";"> </span></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;">Private Room. Many policies provide coverage only if you stay at general ward. Some<span style="font-family: "arial";"> </span></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;">polices cover till triple or twin sharing. It is generally seen that better the quality of the<span style="font-family: "arial";"> </span></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;">room, better is the quality of treatment. General ward may not provide the same quality<span style="font-family: "arial";"> </span></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;">of treatment as that provided by Single Private Room. Your policy should cover Single<span style="font-family: "arial";"> </span></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;">Private Room or atleast Twin Sharing.</span><span style="color: #757575; font-family: "calibri"; letter-spacing: 0pt;"><o:p></o:p></span></div>
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<b><span style="color: red; font-family: "calibri"; letter-spacing: 0pt;">Claim Settlement Ratio:</span></b><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;"> <span style="font-family: "calibri";">It denotes what is the probability that your insurer will actually</span><span style="font-family: "arial";"> </span></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;">pay you if you file a claim. It is one of the most important factor while choosing a policy. </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">Generally we select the policy which<span style="font-family: "arial";"> </span><span style="font-family: "calibri";">is the cheapest. But many a times such policies reject </span></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">our claims. That turns out to be a complete waste of our premium money</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;"> </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">and also faith. So </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">always select among the Top 5 policies according to % Settlement Ratio.</span></div>
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<b><span style="color: red; font-family: "calibri"; letter-spacing: 0pt;">Tie-ups with Hospital:</span></b><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;"> <span style="font-family: "calibri";">Check if the hospitals near your residence are empanelled under the </span></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">insurance company from which you</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;"> </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">are to buy the policy. Doing so makes it easier to avail cashless hospitalization as and when the need arises. Cashless hospitalization</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;"> </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">can be availed only at empanelled network of hospitals ie hospitals with which the insurer has tied up. The essence of cashless hospitalization</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;"> </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">is that the insured individual need not make an upfront payment to the hospital at the time of admission. Otherwise if you have to make payment</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;"> </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">by yourself first, then reimbursement of that amount may take a long time. You will have to physically submit the bills and prescriptions which will</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;"> </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">be verified by your insurer. This process can take 2</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;">–</span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">3 months. You may face money issues during this interval. So always check whether your policy</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;"> </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">has tie-ups with maximum number of hospitals especially in your city of residence. You will thus have to make no payment in case of hospitalization</span><span style="color: #222222; font-family: "arial"; letter-spacing: 0pt; text-indent: 0pt;"> </span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt; text-indent: 0pt;">and entire expenses will be directly borne by the insurance company.</span></div>
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<b><span style="color: red; font-family: "calibri"; letter-spacing: 0pt;">In-House Claim Settlement:</span></b><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;"> <span style="font-family: "calibri";">Try to choose those insurers whose claim settlement is not done by 3rd Party Administrators. Some insurers give contract</span><span style="font-family: "arial";"> </span><span style="font-family: "calibri";">to 3rd party to verify claims (For eg: to check whether the person has actually got admitted, whether the paperwork is complete). Many a times it is seen</span><span style="font-family: "arial";"> </span><span style="font-family: "calibri";">that such 3rd party agencies harass people during claim settlement & even sometimes reject the claim citing incomplete documentation. The more the</span><span style="font-family: "arial";"> </span><span style="font-family: "calibri";">number</span><span style="font-family: "arial";"> </span><span style="font-family: "calibri";">of claims that get rejected, the more these agencies get paid. So, it is better to choose those insurers whose claim settlement is done in house.</span></span><span style="color: #757575; font-family: "calibri"; letter-spacing: 0pt;"><o:p></o:p></span></div>
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<b><span style="color: red; font-family: "calibri"; letter-spacing: 0pt;">Mentioning Pre-Existing Diseases:</span></b><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;"> <span style="font-family: "calibri";">Never fill your insurance form in a hurry. Do not forget to mention your pre-existing diseases. Doing this may increase</span><span style="font-family: "arial";"> </span><span style="font-family: "calibri";">your premium amount by a little, but it maximizes the chances of your claim getting approved. If we do not mention our pre-existing diseases and it gets</span><span style="font-family: "arial";"> </span><span style="font-family: "calibri";">detected during treatment, our claim will get rejected.</span></span><span style="color: #757575; font-family: "calibri"; letter-spacing: 0pt;"><o:p></o:p></span></div>
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<b><span style="color: red; font-family: "calibri"; letter-spacing: 0pt;">Top-Up & Super Top-Up Plans:</span></b><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;"> <span style="font-family: "calibri";">It is often noted that rising healthcare costs render the cover(sum assured) insufficient. Many people thus have to purchase</span><span style="font-family: "arial";"> </span><span style="font-family: "calibri";">two policies. For them, these plans come as saver. These top-up plans will cover expenses if bill crosses the sum assured. Top-Up plan will cover additional expenses only for once during the policy period. Super Top-Up plan will cover additional expenses for multiple times during the policy period. So, it is better to</span><span style="font-family: "arial";"> </span></span><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;">go for Super Top-Up plan in case you need these kinds of plans.</span><span style="color: #757575; font-family: "calibri"; letter-spacing: 0pt;"><o:p></o:p></span></div>
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<b><span style="color: red; font-family: "calibri"; letter-spacing: 0pt;">Conclusion:</span></b><span style="color: #222222; font-family: "calibri"; letter-spacing: 0pt;"> <span style="font-family: "calibri";">So, while choosing your health insurance plan you should first shortlist Top 5 policies according to %Claim Settlement. Cross out those (if any) who</span><span style="font-family: "arial";"> </span><span style="font-family: "calibri";">do not have Tie-Ups with hospitals in your city of residence. Then cross out those (if any) who do not have In-House Claim Settlement. If are still left with multiple choices then decide according to low premium and bed charge coverage. If you frequently fall ill you should select higher OPD Coverage by paying a little extra</span><span style="font-family: "arial";"> </span><span style="font-family: "calibri";">with the base plan. You may choose Super Top-Up if you feel that you need a higher amount as coverage.</span></span><span style="color: #757575; font-family: "calibri"; font-size: 10pt; letter-spacing: 0pt;"><o:p></o:p></span></div>
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INVESTMENT SOLUTIONShttp://www.blogger.com/profile/14257091667993229329noreply@blogger.com0tag:blogger.com,1999:blog-3692409784156551509.post-17522360756885970782019-10-15T12:02:00.001-07:002019-10-15T12:16:21.938-07:00SIP Mantra: Start Early, Invest Regularly, Stay Invested.<div dir="ltr" style="text-align: left;" trbidi="on">
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDpGTsuYYiSzv3NJkUUciZ_sqAYuRDrdP2EvnLMtRRnYZpbuQX8YGJZZKp3iiUQ43y56Fk6yrq2j6DmF0GQ1IYqrXD6eLHYf3p_U6IEZIAYHXpTqw788cHRNmhRontg00R3Y940zDbGupR/s1600/hdfc+equity+fund.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="900" data-original-width="1600" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDpGTsuYYiSzv3NJkUUciZ_sqAYuRDrdP2EvnLMtRRnYZpbuQX8YGJZZKp3iiUQ43y56Fk6yrq2j6DmF0GQ1IYqrXD6eLHYf3p_U6IEZIAYHXpTqw788cHRNmhRontg00R3Y940zDbGupR/s400/hdfc+equity+fund.jpg" width="400" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><h2>
<b><span style="font-size: small;"> SIP Mantra: Start Early, Invest Regularly, Stay Invested.</span></b></h2>
</td></tr>
</tbody></table>
<br /></div>
INVESTMENT SOLUTIONShttp://www.blogger.com/profile/14257091667993229329noreply@blogger.com0tag:blogger.com,1999:blog-3692409784156551509.post-34559418891067722302013-02-13T09:52:00.001-08:002013-02-13T09:53:24.092-08:00Details On Rajiv Gandhi Equity Savings Scheme <div dir="ltr" style="text-align: left;" trbidi="on">
The Finance Minister recently approved the operational features of the Rajiv Gandhi Equity Savings Scheme (RGESS), and I felt it was a surprisingly complicated scheme which really doesn’t offer any great benefit to investors.<br />
<br />
<strong><span style="color: red;">Who is eligible for RGESS?</span></strong><br />
<strong></strong><br />
The intent of this scheme is to bring new people into equities and that means if you have ever bought any shares or traded in derivatives then you are ineligible for the tax benefits under this scheme.<br />
They are going to look at new investors on the basis of the PAN number so you are only eligible in this scheme if there have been no prior equity or derivative transactions in the Demat account linked to your PAN number.<br />
Your taxable income should also be less than Rs. 10 lakhs in order to be eligible for this scheme. If your taxable income is more than that then you don’t qualify for this scheme.<br />
<strong></strong><br />
<strong><span style="color: red;">How do you get the tax RGESS benefit?</span></strong><br />
<strong></strong><br />
In order to get the tax benefit, you have to invest in one or more of the following:<br />
<ol>
<li>Stocks listed under the BSE 100 or the CNX 100</li>
<li>PSUs that are categorized as Maharatnas, Navratnas or Miniratnas</li>
<li>FPO of PSUs mentioned above.</li>
<li>IPO of PSUs whose turnover is not less than Rs. 4,000 crores in the last three financial years.</li>
<li>ETFs and mutual funds who have RGESS securities as their underlying.</li>
</ol>
The maximum that you can invest for the purpose of this tax benefit is Rs. 50,000 and you can do so in installments in the financial year.<br />
<br />
<strong><span style="color: red;">What is the tax benefit under RGESS?</span></strong><br />
<strong></strong><br />
You get to deduct half of the money invested under RGESS from your taxable income and thereby reduce your tax liability. So, if you invested Rs. 50,000 in eligible securities under this scheme then you can deduct half of that – Rs. 25,000 from your taxable income, and if your tax rate is 20% then you save Rs. 5,000 (20% of Rs. 25,000) from your taxes.<br />
<br />
<strong><span style="color: red;">Is there a lock in period under RGESS?</span></strong><br />
<strong></strong><br />
There is a three year lock in period under RGESS which is further broken out into an initial blanket lock in period of 1 years which means you can’t trade in your RGESS securities within one year of claiming the tax benefit.<br />
After the initial one year, you can trade in your securities provided you maintain a certain investment level. This investment level is dependent on the value of your shares at the time of the sale.<br />
So, say you invested Rs. 50,000 at the beginning, and at the time of the first sale, the value of your investment is still Rs. 50,000 then you will need to show investments worth Rs. 50,000 in 270 days out of the 365 or 366 calendar days.<br />
However, if your investment was worth only Rs. 25,000 when you initiated the sale then this is the amount you will need to maintain for the 270 days.<br />
If your investment appreciated and is now worth Rs. 1,00,000 then you will only need to maintain investments worth Rs. 50,000 to be compliant with the scheme.<br />
If you fail to do any of this then the tax benefit will be withdrawn however I’m not quite sure how they are going to implement this or even the initial blanket lock in period for that matter.<br />
<br />
On the whole, the government has put in place a very complicated system of RGESS, which is likely to be a non-starter from day one, as the pain of complying with the formalities is more than the pleasure of saving a maximum amount of Rs5,000 from the scheme. - <br />
<a href="http://www.investment4solutions.com/">www.investment4solutions.com</a></div>
INVESTMENT SOLUTIONShttp://www.blogger.com/profile/14257091667993229329noreply@blogger.com1tag:blogger.com,1999:blog-3692409784156551509.post-43395974989630637562012-05-08T09:29:00.000-07:002012-05-08T09:31:31.444-07:00When investing money for a year which is a better option - fixed deposit ,FMPs or MIP ??<div dir="ltr" style="text-align: left;" trbidi="on">
<strong><span style="color: #ff9900;">Fixed deposits:</span></strong> Better than savings account are
the other investment options like bank fixed deposits schemes. One can invest in
a FD with varying maturities. <br />
<br />
If he needs certain amount of money after
1 year, he can invest in for 1 year FD for that much amount and for other amount
can have FDs of different maturity. <br />
<br />
This will help him meet the
liquidity needs and also earn interest. He can go for the regular returns
options like the quarterly or half-yearly payout options. Else, he can choose
interest re-investment option. <br />
<br />
However, remember that interest income
earned in FD and savings account is taxable.<br />
<br />
<div align="justify" class="style3">
<strong class="style5"><span style="color: #ff9900;">FMPs:</span></strong> Fixed Maturity
Plans (FMPs) are income/debt schemes giving a fixed return over a period of
time. They are actually similar to fixed deposits in banks. The maturities
offered were varied, going from one month to three years. They are close ended
schemes, which are open only for a fixed period of time during the initial
offer. While the money is locked, FMPs give the investor an option to exit,
which is subject to an exit load as per the funds regulations. <br />
<br />
While
similar to FDs, there are certain differences. While the returns on FDs are
assured, returns on FMPs are indicative as there is a possibility of the actual
returns deviating from what has been indicated to investors at the time of
investing. The instruments are held till maturity, thus not getting affected any
interest rate fluctuations.<br />
<br />
The schemes have low credit risk as
investments are mainly done in AAA or P1+ rated instruments with a short-term
maturity profile. Further, it has minimal liquidity risk as they invest in
short-term instruments, which give them adequate liquidity. Also the churning
cost is very low as the instruments are held till maturity.</div>
<br />
<div align="justify" class="style3">
Taxation of FMP depends on the investment option.
In the dividend option, investors have to bear the Dividend Distribution Tax. In
growth option, returns earned are treated as capital gains- i.e. if investments
are held for less than a year, than the interest income is added to the
investor's income and is taxed at the marginal rate of tax. <br />
<br />
As for
long-term capital gains, the tax liability is computed using two methods i.e.
without indexation (charged at 10% plus surcharge) and with indexation (charged
at 20% plus surcharge) and). The tax liability will be the lower of the two.
<br />
<br />
<strong>FMP Yield:</strong> 9.30%<br />
<strong>Tenure of FMP:</strong> 370
days<br />
<strong>Indexation rate (assumed):</strong> 5.00%<br />
<strong>Long term
Capital Gains tax rate:</strong> 22.66%<br />
<br />
<strong>The benefit of indexation
for a FMP investor </strong><br />
<br />
<strong>Amount invested
(assumed)(Rs):</strong> 100,000<br />
<strong>Cash receivable on maturity; total
interest @ 9.30%(Rs):</strong> 109,513.24<br />
<strong>Indexed cost(Rs):</strong>
105,000.00<br />
<strong>Taxable income(Rs):</strong> 4513.24<br />
<strong>Tax
payable(Rs):</strong> 1022.7<br />
<strong>Post tax return (assumed):</strong>
8.30%</div>
<div align="justify" class="style3">
This 8.3% is more than the 6.25% to 6.5% offered by FD's </div>
<div align="justify" class="style3">
<br /></div>
<div align="justify" class="style3">
<strong class="style5"><span style="color: #ff9900;">MIPs:</span></strong> They are
hybrid instruments that invest some portion (around 5% - 20%) in equities and
the balance in debt and money market instruments. <br />
<br />
It provides monthly
income to investors depending upon monthly, quarterly, half-yearly and annual
options selected by the investors. MIPs aim to provide investors with regular
payouts in form of dividends.<br />
<br />
However, it is not mandatory for the funds
to declare dividends and is subject to availability of distributable
surplus.<br />
<br />
While there is growth option to available in MIP, the return
will not be in form of dividend but capital appreciation. Some portion of the
funds is invested in equities. This provides impetus to the returns while
retaining the safety from the debt investments. <br />
<br />
It is like icing on the
cake and would generate higher returns than the debt fund, albeit with a little
higher risk. MIPs are launched with the objective of giving monthly income to
investors. MIP is better for investors who are nearing retirement. MIP's appeal
to conservative as well as risk taking investors.</div>
<div align="justify" class="style3">
</div>
<div align="justify" class="style3">
<strong>Risk in MIP's:</strong> The debt portion
is influenced by the interest rates. When the interest rate falls, the NAV rises
as price of bond increases. When interest rate rises, NAV falls. At such times
the equity portion of the fund helps to maintain the returns.<br />
<br />
While
equity portion makers it more risky than the pure debt fund, they are better
than the balanced fund where investment in equity is to the extent of 40% to
50%. And with Indian markets expected to do good in the long term, MIPs would
stand to gain.<br />
<br />
On the tax front, they are better than FDs as dividends
are tax free in the hands of investors, while interest on FDs is taxable.</div>
</div>INVESTMENT SOLUTIONShttp://www.blogger.com/profile/14257091667993229329noreply@blogger.com1tag:blogger.com,1999:blog-3692409784156551509.post-65302773071696530142012-05-07T09:49:00.000-07:002012-05-07T09:49:25.842-07:00SCIENCE OF SIP<div dir="ltr" style="text-align: left;" trbidi="on">
<table border="0" cellpadding="0" cellspacing="0">
<tbody>
<tr><td class="indextexthead"><span style="color: blue;"><strong>What is SIP and how does it work</strong>:</span></td></tr>
<tr><td class="indextext">What is SIP and how does it work: Just like recurring account, in SIP investor commits fix amount on a regular basis. In fact SIP is more convenient and investor friendly than recurring deposit. Investor can start SIP in any of the mutual fund scheme. In this investor can decide a particular day of the month on which he/she wants to make investment. Once day is decided and mentioned in the application form, fixed amount gets debited from the account on that particular day and equivalent numbers of units get allotted to investor based on that day's NAV.</td></tr>
<tr><td class="indextext"> </td></tr>
<tr><td class="indextexthead"><strong><span style="color: blue;">Why SIP : Automatic Market Timing & Rupee Cost Averaging:</span></strong></td></tr>
<tr><td class="indextext">The biggest advantage of SIPis you can time the market automatically, as irrespective of market level, you keep investing on a regular basis. This allows you to take advantage of rupee cost averaging as you can buy more units when market is down and fewer units when market is up.</td></tr>
<tr><td class="indextext"> </td></tr>
<tr><td class="indextext">As it is clearly evident through SIP, your average cost of holding units comes down compare to average NAV.In this example, if an investor invests Rs.1000 per month for 12 months he accumulates 1186.79 units in volatile market. His average cost of holding these 1186.79 units comes to Rs.10. 11131 compared to average NAVof Rs.10.1625. This logic holds true in any type of market condition.</td></tr>
<tr><td class="indextext"></td></tr>
<tr><td class="indextexthead"><strong><span style="color: blue;">Disciplined Investing:</span></strong></td></tr>
<tr><td class="indextext">Important secret of wealth creation is start investing early and take advantage of power of compounding. It's not important how much you start with, but what is important is to start early and start investing small amount on a regular basis. SIPis best suited for this objective.</td></tr>
<tr><td class="indextext"> </td></tr>
<tr><td align="center"><img height="249" src="http://www.careinvestmentsonline.com/images/adv.jpg" width="539" /></td></tr>
<tr><td class="indextext"> </td></tr>
<tr><td class="indextexthead"><strong><span style="color: blue;">Can be done with small amount:</span></strong></td></tr>
<tr><td class="indextext">In investment world it is said that 'you don't have to be Wealthy to be an Investor but you definitely need to be an Investor to become Wealthy.' Sothe crux of the point is no matter how small your investment is, you should never shy away from investing. Through SIP, you can start with as little as Rs. 100 per month. With these small drops you can create an ocean for yourself in long term.</td></tr>
<tr><td class="indextext"> </td></tr>
<tr><td class="indextexthead"><strong><span style="color: blue;">Scores over traditional recurring deposit:</span></strong></td></tr>
<tr><td class="indextext">Compared to traditional recurring product which yields 8 percent p.a. one can expect around 15 percent return from his/her SIP investment. This can go long way in terms of wealth creation over a period of 10to 15 years.</td></tr>
<tr><td class="indextext"> </td></tr>
<tr><td><table bgcolor="#cccccc" border="0" cellpadding="0" cellspacing="1"><tbody>
<tr><td bgcolor="#ffffff" class="indextexthead2" colspan="3"> How about monthly investments to grow your money ? </td></tr>
<tr><td bgcolor="#ffffff" class="indextext">Suppose you start investing in a diversified equity mutual fund through a Systemtic Investment Plan at age </td><td bgcolor="#ffffff" class="indextext">35</td><td bgcolor="#ffffff" class="indextext">40</td></tr>
<tr><td bgcolor="#ffffff" class="indextext">Your monthly investment </td><td bgcolor="#ffffff" class="indextext">Rs. 5000 </td><td bgcolor="#ffffff" class="indextext">Rs. 5000 </td></tr>
<tr><td bgcolor="#ffffff" class="indextext">You stop investing at age </td><td bgcolor="#ffffff" class="indextext">60</td><td bgcolor="#ffffff" class="indextext">60</td></tr>
<tr><td bgcolor="#ffffff" class="indextext">Your total contribution </td><td bgcolor="#ffffff" class="indextext">Rs. 15 lakhs</td><td bgcolor="#ffffff" class="indextext">Rs. 12 lakhs</td></tr>
<tr><td bgcolor="#ffffff" class="indextext">Assuming compounded annualised returns from the fund of 15%, your savings could grow to </td><td bgcolor="#ffffff" class="indextext">Rs. 1,37,82,803.88 <br /> (over 1 crore 37 lakhs) * </td><td bgcolor="#ffffff" class="indextext">Rs. 66,35,367.20 (over 66 lakhs) * </td></tr>
<tr><td bgcolor="#ffffff"> </td><td bgcolor="#ffffff"> </td><td bgcolor="#ffffff"> </td></tr>
<tr><td align="center" bgcolor="#ffffff" class="indextexthead" colspan="3">A difference of just 5 year can lead to a wealth difference of Rs. 71 lakhs ! </td></tr>
</tbody></table>
</td></tr>
<tr><td align="right" class="footer"> </td></tr>
<tr><td align="right" class="footer">* Past preformance may or may not be sustained in future </td></tr>
<tr><td class="indextexthead"> </td></tr>
<tr><td class="indextexthead2"><strong><span style="color: blue;">SIP - The Mantra for Wealth Creation:</span></strong></td></tr>
<tr><td class="indextext">It is true that these are challenging times for investors. Equities are down for 2008 and many of the equity related investments over past 1 year are showing negative returns. But one should look at broader picture. We are witnessing correction in equity market after seeing sustained Bull Runfor last five years. SENSEX that was trading at 3390 at the beginning of 2003 had touched 20800 in beginning of Jan 2008. We have seen more than 60per cent return in equity market in last two years. So it is but natural that market stops for breather. Equity markets are like running a marathon race not about running 100-mt races. In 100-meter race one needs to be fast and furious but in marathon steady runner wins the race. So in equity market if we want to make money for next five to ten years, these kinds of healthy corrections are welcome as it provides great opportunity for investment when market goes through this kind of consolidation phase and then again start its upward journey to scale new highs.</td></tr>
<tr><td class="indextext"> </td></tr>
<tr><td class="indextext">So question that arises in retail investor's mind is: Is this a good time to invest or market will correct further? Where market will go from here on? What kind of return I can generate in next six months to one year if I invest today? Honestly speaking there-is no clear answer to these questions. We strongly believe equity market is not for short term but it is the best avenue to create long-term wealth and more so for a growth economy like India where corporate profitability is only likely to go up in coming years which will automatically translate into higher SENSEX valuation.</td></tr>
<tr><td class="indextext"> </td></tr>
<tr><td class="indextext">But Volatility is an inherent part of equity investment and retail investors can ride this volatility and make it work in their favor through Systematic Investment Plan route. We all are familiar with recurring deposit of post office or banks and majority of us must be investing or must have invested through this recurring deposit route in our life. SIPis nothing but modern version of recurring deposit.</td></tr>
</tbody>
</table>
</div>INVESTMENT SOLUTIONShttp://www.blogger.com/profile/14257091667993229329noreply@blogger.com0tag:blogger.com,1999:blog-3692409784156551509.post-56739649853954603332012-04-25T12:39:00.002-07:002012-04-25T12:45:31.602-07:00Gold may touch $7,000 per ounce before end of uptrend<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCVmd4R2OxiytAtBJtvy8zU2Ai9tDiLl7kcrLSgL9wv7iLnoxDrfQWyQnywxl85b_b0mMxtMaHrOMSuS4RKZK-NyJamcS7f7n0pjcaJOxSVaJ4CVpnhAWD3BwTA8OD_IUDIKoqWZeckkZ6/s1600/go;d.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCVmd4R2OxiytAtBJtvy8zU2Ai9tDiLl7kcrLSgL9wv7iLnoxDrfQWyQnywxl85b_b0mMxtMaHrOMSuS4RKZK-NyJamcS7f7n0pjcaJOxSVaJ4CVpnhAWD3BwTA8OD_IUDIKoqWZeckkZ6/s1600/go;d.jpg" /></a></div>
<span style="font-size: 10pt;">According to Bank of America Analyst MacNeilCurry, gold prices would need to double in
less than a year to show the kind of extreme momentum that would signal the end
to the long-term cyclical uptrend. "Until we see price action take some kind of
massive speculative blow-off, where prices effectively double in a year or less,
I have to maintain a long-term bullish bias." </span><br />
<br />
<span style="font-size: 10pt;">The technical strategist added that gold's price could
double in a shorter time frame, and that he was watching momentum most closely
for indication of the kind of speculative fluctuations that would signal an end
to the secular bull trend. </span><br />
<br />
<span style="font-size: 10pt;">"That
says to me, we'll probably see a move in gold, before all is said and done, to
between $3,000 to $5,000 (per ounce) and potentially $7,000 per ounce," he said.
</span><br />
<br />
<span style="font-size: 10pt;">Using Elliott Wave counts on a
logarithmic chart dating back to 1969, Curry's analysis points to a long-term
target for gold at $6,081 per ounce. Gold has met an initial wave target at
$1,801 an ounce, but momentum is much too subdued to doubt the uptrend, he said.
</span><br />
<br />
<span style="font-size: 10pt;">For example, gold's recent
fluctuations have transpired amid very low volume. Friday's was the lowest so
far this year. The chartist identified an intermediate price goal at $2,982
channel resistance, but warned, "The risks are to the upside."
</span><br />
<br />
<span style="font-size: 10pt;">The second major signal necessary
to predict the cyclical uptrend was over is extremely high volatility. "If you
go back and look at daily price highs at long-term tops across commodities, you should see daily ranges at high
prices of about 10 to 15 percent, potentially 20 percent." </span></div>INVESTMENT SOLUTIONShttp://www.blogger.com/profile/14257091667993229329noreply@blogger.com0tag:blogger.com,1999:blog-3692409784156551509.post-24251832716024298372012-04-24T12:48:00.006-07:002012-04-24T12:48:51.338-07:00India can give 10-15% return in FY13: Foreign brokerages<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="color: blue;">Although </span><a href="http://www.moneycontrol.com/news/fii-view/clsa-cuts-sensex-target-to-19000_693992.html"><span style="color: blue;">CLSA</span></a><span style="color: blue;"> has cut its target for the </span><a class="bD_15arlink" href="http://www.moneycontrol.com/sensex/bse/sensex-live" title="Sensex"><span style="color: blue;">Sensex</span></a><span style="color: blue;"> to 19,000 from 20,000, it still maintains its "overweight" rating on the index. </span><br />
<span style="color: blue;">While the foreign brokerage firm has turned less bullish on the market due to adverse macro developments over the past few weeks, it still expects 10-12% market returns over the next one year, helped by valuations.</span><br />
<span style="color: blue;">Meanwhile, last month, </span><a class="bD_15arlink" href="http://www.moneycontrol.com/commodity/gold-price.html" title="Gold"><span style="color: blue;">Gold</span></a><span style="color: blue;">man had set a March 2013 target of 6,100 for the </span><a class="bD_15arlink" href="http://www.moneycontrol.com/nifty/nse/nifty-live" title="Nifty"><span style="color: blue;">Nifty</span></a><span style="color: blue;"> index. That means around 15% upside from the current levels. Goldman Sachs had upgraded Indian stocks to "marketweight" from "underweight".</span><br />
<span style="color: blue;">However, </span><a href="http://www.moneycontrol.com/news/fii-view/neutralindiabuydips-strategy-credit-suisse_694285.html#toptag"><span style="color: blue;">Sakthi Siva of Credit Suisse</span></a><span style="color: blue;"> is neutral on India at this point in time. "We tend to favour markets that are in the cheapest four club. India actually joined the cheapest four club on January 3 and we upgraded India on the back of that call. But fortunately or unfortunately, India then put on about 25% in US dollar terms. So, as a valuation model it has since dropped out of the cheapest four club," she elaborates. </span><br />
<span style="color: blue;">Siva’s call is not to chase the rallies and buy the dips. "Every time there is a market correction or a dip, we are happier to recommend buying on those dips," she adds.</span><br />
<strong><span style="color: red;">Challenges: </span></strong><br />
<span style="color: red;">Goldman says oil prices remain "the most significant risk" to its "positive" view on India. Also, policy inaction can hurt the market sentiment. Global uncertainty is another concern that India has to deal with. The concerns in Europe will also probably persist for a while.</span><br />
<span style="color: red;">Given all these challenges, it is prudent to be cautious.</span></div>INVESTMENT SOLUTIONShttp://www.blogger.com/profile/14257091667993229329noreply@blogger.com0