Incisive articles baed on data and facts
Direct plans have been a part of the Indian mutual fund industry from Jan 1, 2013. It won’t be wrong to expect that all those who wanted to switch from regular plans to direct plans would have done so. Interestingly, a recent question in Quora indicated that people are still considering the big switch. In
Unit Linked Insurance Plans (ULIPs) have always been aggressively positioned in India. The recent (re)introduction of Long Term Capital Gains (LTCG) Tax on equity has added another dimension to the promotion of ULIPs. In this illustrative post, we look at how Equity mutual funds still provide better post-tax returns due to their flexibility and choice.
A thread in Quora asked for a list of worst financial mistakes that a person in 20’s can make. The brief answer lists 4 such mistakes. The source of the list is the classic article in JagoInvestor Buying products only for “saving tax” Waiting for the “right time” to invest Getting high on debt,
While it is an unfortunate fact that not many Indians plan for their retirement, there is a more worrisome fact. Even among the few who do plan their retirement, a large majority do it the wrong way by choosing one of the various pension plans. In this short article, we see the major disadvantages of
Systematic Investment Plan (SIP) is growing in popularity every month. A good percentage of mutual fund inflows is through SIPs. It is so popular that many new investors think that SIP is a product or plan, rather than a simple investment arrangement. A large number of calculators exist to help one with planning a SIP.
New Fund Offer (NFO) is done by a mutual fund house when they launch a new scheme/fund. Investopedia describes NFO this way: What is a ‘New Fund Offer – NFO’ A new fund offer (NFO) is the first subscription offering for any new fund offered by an investment company. A new fund offer occurs when a fund is launched,
Often, new products from LIC are widely promoted. This has been the case with the new Single Premium Annuity Plan – Jeevan Shanti. This is billed as a non-participating, non linked plan – which has to be the case with annuity plans. A key feature of the plan is the deferred annuity option. In this
Summary An ‘Annuity’ is a (financial) product that provides a steady, periodic income, over many years, to the buyer. This part of annuity makes it similar to a pension. Probably due to this, annuity plans are popular in India. In this short article we consider the factors of annuity and look at who it is