A top-up loan basically allows you to avail a loan amount on the value of the property of the home you are paying a home loan for. You can avail a maximum top-up loan of about 60% of the property’s market value. The usual loan tenure is about 10 years and is offered only a… Read More »
Managing a budget for your household is more than just keeping track of all the expenses for the month. It is a chart of how much income there is, how much will be spent, and what can be saved. The idea of the budget is to broadly plan for living within your means. A budget… Read More »
The minimum premium size of the new ULIPs has increased. Previously, a unit-linked pension plan could be bought for a premium of Rs 500 a month. The minimum monthly premium for LIC’s pension plus scheme, launched after September 1, is Rs 1,500. However it still does not work as a pure insurance product due the… Read More »
Standard deviation steps in where average failed. It gives you an idea about the rating of the quality for the average. It can be defined as the difference between the numbers used in calculating the average and the actual average. It is an indication of how accurately the average represents its parent numbers.
Historically, gold has been the perfect hedge for inflation. This is based on data from the year 1800 AD. But in terms of absolute returns gold has fared rather poorly giving returns at only 0.8% above inflation. Real estate and shares beat gold squarely on the capital appreciation front. Real estate and shares have given… Read More »
In the present tax code, if you have invested in long term savings products like PF, gratuity fund, pension fund etc, then you can claim a deduction of Rs 1lakh from being taxed. Now with the introduction of new tax code, you can claim a deduction of an additional Rs 50,000 for tuition fees of… Read More »
While deciding between the companies operating in the same sector, examine the rate at which the EPS of these companies has changed during the final two quarters and compare this difference with the rate of change of EPS during the last 3-5 years. If the EPS has shown an increase, it would mean the company… Read More »
What is your purpose in investing? Are you saving for a short-term goal like buying a car or for long-term goal like retirement plan? How comfortable are you with taking risks? Answering these questions is important to prepare the correct plan for your finances. Unfortunately, not many spend time answering these questions.
What is the volatility of the fund? Remember in most instances funds with high returns tend to be more volatile. E.g. funds with mid-cap exposure and sector funds tend to be more volatile, but also offer higher returns. Also some fund managers tend to churn the portfolio in order to give higher returns, thus making… Read More »
Don’t let the money that you save lie around in your bank account. Keep a certain amount for an emergency and invest the rest in the best options for investment. You have to educate yourself about the options available. Try to increase your investments steadily every month.