Prajna Capital

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• How to Find a Good Real-estate Agent?
• Mutual Funds: Past Performance is not just everything
• Mutual Fund Review: Birla Sun Life Government Securities Long-Term Plan
• Mutual Fund Review: HSBC Global Investments Funds
• Selling is a critical activity in investment process
• Do not pick a mutual fund based on the number of units you or NAV of the fund
• Mutual Fund Review: LIC Nomura MF Floater MIP - Plan B
• How to avoid rejection of your motor cover claims?
• All about General Insurance
• How to get Gold Loan?
• ICICI Prudential Mutual Fund has introduced the trigger facility
• Tips for a good Financial Planning

How to Find a Good Real-estate Agent? Posted: 22 Sep 2011 05:11 AM PDT India's real estate industry has always been beset by risk, and many unwary buyers and investors have burned their fingers as a result. When buying or selling in an unorganised real estate market, trustworthy advisors are worth their weight in gold because they can make the difference between time gained and time wasted – and between financial gain and substantial loss. When an experienced real estate agent guides a client through the intricacies of buying, selling or leasing property, he or she is basically ensuring that the client makes the right choices and is not taken advantage of. The wrong agent may, at best, lack the required competence – and, at worst, take the client for a very expensive ride. QUALITIES OF A GOOD REAL ESTATE ADVISOR A competent real-estate agent understands your requirements and is able to present clearly and impartially all available options that meet your needs. He maintains confidentiality, networks with other agents for your requirement and keeps your costs down. He listens to you, behaves ethically and does not try to rush you into a decision. He does all he can to get you the best deal possible – even if it means a lower or deferred commission – by pointing out to you the pros and cons of every option to help you make a better decision. He gives advice on the risks involved in every offer that are before you, informs you of the available risk mitigation strategies and helps you with the paperwork. He communicates clearly – he will not tell you that every offer is the best. He has exhaustive knowledge about the local market, general market practices, rules, regulations and legal aspects that he shares willingly and succinctly. He performs the task he has been appointed for with the client's best interest at heart. He is professional, aggressively follows up on a mandate and adheres to all expected processes. HOW TO LOOK FOR ONE? Check the real-estate agent's background, review his track record and get references from past clients. Evaluate his knowledge of the real-estate market and its offerings as well as his willingness to go the extra mile for you. Eliminate all prospective advisors who attempt to push you into a deal to make a fast buck or suggest unlawful shortcuts to legal procedures. When considering a real-estate advisor, be clear on what you require of him or her. If you are not sure, use his expertise and experience to identify and crystallise your objectives – are you looking for an ideally located and appointed home for actual use, or are you more interested in investment potential? Referrals from family, friends and colleagues are great sources for finding the right advisor. In the absence of such referrals, you can launch an initial search through newspaper ads and web listings. Interview at least two or three advisors in person and establish the person's local expertise and database depth before you take a decision. Finally, clarify all aspects of the fees and ensure that these are in line with the current market benchmarks. Your choice of a real-estate advisor has a direct bearing on the number of options you will have, the quality of information and the final price. By choosing the right advisor, you can save time and effort in finding the perfect home at the right price or selling your property at the best price possible.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online

Mutual Funds: Past Performance is not just everything Posted: 22 Sep 2011 04:41 AM PDT Many a times your agent / distributor / relationship manager tries to push you some mutual fund schemes by enticing you with a typical sales pitch…"Sir, this scheme has generated 20% returns in the past one year." And this sales pitch often gets louder when the market conditions have been favourable. Some of the agents / distributors / relationship managers have another unique way of luring you. They say, "Sir / madam this scheme has been awarded the best scheme award in the past by a leading business channel"... And hearing all these sales talks you investors very often get attracted and sign a cheque in favour of the respective scheme.   But please ask yourself do you hear these sales talks when the capital markets turn turbulent? Why is it so that your agent / distributor / relationship manager avoids talking to you during turbulent times of the capital markets and doesn't boast about returns generated by the respective funds or awards being conferred on them?   Remember dear investors, past performance may or may not be sustained in the future!   The capital market regulator – Securities and Exchange Board of India (SEBI), has also thus made it mandatory for mutual fund houses to mention at end of every marketing exercise a disclaimer which states, "past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments."   But despite such a disclaimer you still get enticed by what your agent, distributor or relationship manager boasts (about past performance and awards).   Please recognise that past performance will merely enable you to assess the historical returns of the fund over various time frames, but when you are judging how the scheme would perform in the future, a lot more research and analysis is required (which your agent / distributor / relationship manager may be incompetent to handle).   You need to delve deeper into the following critical points, because just studying past performance numbers in isolation would be meaningless:   1.               The risk you are exposed to The Net Asset Value (NAV) of a mutual fund scheme will never tell you as an investor how much risk you are exposed to. For instance in a rising market, it is not altogether difficult to clock higher returns if the fund manager is willing to take on higher risk (we have seen this on several occasions like the tech rally in 1999-early 2000, the mid cap rally in 2003-05, 2009-10 and 2010-11). Hence, the past performance numbers will prove to be incapable to show how much risk you are exposed to. So the next time you think of making any investment, remember that it must be evaluated based on the risk-return criteria. Evaluating any investment option based on any one of the two i.e. risk or return on a standalone basis may prove to be a fatal exercise. By doing this you might land up with a scheme which just doesn't suit your needs. 2.               Individual vs. peer performance Another reason why the past performance may not entirely represent a mutual fund's 'good showing' is because it does not take into consideration the performance of its peers. It is possible that a fund has performed reasonably well (across relevant parameters) by itself, but hasn't quite made the mark when compared to its peers. Remember, you should always compare an investment (be it a mutual fund, fixed deposit, unit-linked insurance plan – ULIP, among others) with its comparable peer group while assessing whether or not to invest in it. 3.               The reputation of the fund house Past performance fails to highlight the investment processes and approach followed by the fund house. It does not tell you whether the past performance is the result of: o                          Good fortune/luck o                          A star fund manager o                          A team-based investment approach that takes decisions based on well-defined processes rather than being dependent on a particular individual (like the star fund manager)   Before we move further, it's important that you are aware of the benefits of a team based investment approach. Always keep in mind that a team based investment approach is far more superior as compared to a single fund manager. Under a team based approach the mutual fund scheme is exposed to brilliance and expertise of many like-minded individuals. Whereas a mutual fund scheme managed by a single fund manager may not be able to sustain its performance in the future if one fine day the fund manager quits. Unfortunately, all this information is not revealed under the marketing campaign adopted by fund houses by way of the literature they print. It is something that can be learned only after constant interaction with fund houses and their investment teams. Past performance often ignores the change in investment mandate. Fund houses first talk of a star fund manager who was instrumental in sprucing up their performance. They get a lot of money based on this star fund manager's name and fame. The performance numbers that are advertised are attributed to the 'brilliance' of the star fund manager. But if the star fund manager quits, there is no guarantee that the mutual fund scheme will continue its good performance further. 4.               No Guarantee of future performance Of course, last but not the least, past performance is no guarantee of future performance. While this is adequately mentioned in the advertisements, we wonder why it needs to be advertised in the first place. It's a bit like advertising tobacco products freely with a small disclaimer on tobacco possibly causing cancer written in fine print at the bottom of the packet!! So remember, while investing always asses all the aforementioned critical points and take a holistic view. This will help you to invest your hard earned money in a prudent way and help you create wealth in the long-term.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online

Mutual Fund Review: Birla Sun Life Government Securities Long-Term Plan Posted: 22 Sep 2011 03:43 AM PDT   THIS open-ended scheme intends to generate returns by investing in central and state government securities. They carry a sovereign guarantee that insulates them from a default on principal and coupon payments. Given the continuous increase in interest rates by the Reserve Bank of India over the last one year to tackle inflation, short-term interest rates have increased substantially from the year ago period. However, when the rates begin their decline after peaking, gilt funds would benefit, as bond prices and yields share an inverse relationship. Thus, when government bond yields fall, these prices would rise and impact the gilt fund returns positively. The fund has outperformed its peer group over a one, two, three and five year time-frame. It has outperformed its benchmark (I-Sec Li-Bex) over two and three year time-frames. Over a two year period, the fund gave a compounded annual growth rate of 8.15 per cent as against 4.68 per cent of the benchmark and 3.18 per cent of the peer group. Over a three-year period, the fund returned 12.82 per cent annualised, as against 8.13 per cent of the peer group and 10.56 per cent of the benchmark, respectively. A sum of `1,000 invested in the fund from March 31, 2002 would have returned `2,025 as on June 30, 2011. A similar investment in the benchmark and the peer group would have returned `2,019 and `1,907, respectively. The fund has followed a dynamic strategy of managing interest rate risk in relation to the category peers. It was observed over the last 36 months, the average maturity varied from one day to 9.55 years. At the category level, the average maturity varied from two years to 14.5 years over the same period. Typically, longer duration (higher average maturity) government securities are marked-to-market whereas shorter duration securities are treasury bills, bought at a discount and redeemed at face value. As bond prices rise when yields fall, it benefits higher maturity government bonds that are marked to market. Vice versa, when yields rise, short maturity securities benefit as they are redeemed faster, thereby giving higher returns commensurate to the yields. It is important for investors to look beyond the returns while selecting funds. Thus, portfolio attributes play acrucial role in fund selection. In the case of gilt funds, Crisil mutual fund ranking methodology looks at liquidity, average maturity and asset quality, besides risk-adjusted returns. Crisil measures liquidity of the gilt securities based on three parameters – turnover of the security, the number of days for which it is traded, and the number of trades that took place for the security during the quarter. In the latest ranking of March, the fund is in the top cluster on all the parameters (both risk adjusted returns and portfolio-based). -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online

Mutual Fund Review: HSBC Global Investments Funds Posted: 22 Sep 2011 02:02 AM PDT   This is a new fund offering that invests in units of HSBC Global Investments Funds (HGIF) Brazil Equity Fund, which is a feeder route to investing in Brazil. If this is your first or only investment, you will be better of investing in funds available in India. Remember, tracking the performance of such funds is not easy and there also exists the currency risk that you face with such investments.   If you have a well diversified portfolio and understand all of these risks and still feel you can take such risks and are willing to take a bet on investments in Brazil; you can at best consider allocating up to 5 per cent of your allocation to this fund   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online

Selling is a critical activity in investment process Posted: 22 Sep 2011 12:51 AM PDT   ONE of the questions that investors have with respect to their equity mutual fund holdings is for what time period they should hold their investments and when they should sell them. There is no easy answer to this and the end result would actually vary with individuals, but it's important to check a few things before deciding on the time to divest holdings. No decisions are perfect, but when made in a proper manner, the chance of acceptance increases without much problem. Beneficial: Investors look at decisions beneficial for them. In the actual sense, any investment that results in a gain for the investor is beneficial as far as they are concerned. When it is for equity-oriented funds, then there is another condition that is also beneficial. There will be a lower rate of tax for the holdings that are long term in nature. If the holdings are maintained for more than a year, then the rate of tax on the investment will be zero and, hence, this will turn out to be beneficial on the net impact basis. This is the reason why the investor needs to consider the actual position of the holdings before they finalise a decision. Objective: Another factor that actually determines the holding period of the investment is the investor's objective. Investors need to consider whether their objective behind investment is actually being achieved. It could be that in a time period of three years or even one year, the objective for which the investment was made, has actually been accomplished. Then this should be the time when they can sell the investment. This is the best way by which the decision can be taken and, hence, this has to be understood and the necessary amount of comparison made when the decision to sell has to be considered. Change: A condition that can often trigger a decision to sell a particular investment is the condition with respect to the investment has changed. For example, an investor might want an exposure to large cap stocks, so they might have selected a specific fund that invests in this particular area. Now after some time, they might find that the fund actually holds half its portfolio in mid-cap stocks. This goes against the requirement of the investor. This change is not something that they can actually bear for this particular investment. This becomes one of the conditions when they should think about selling the investment and switch to some other area where their objectives would be better achieved. Slippage: There is also the situation wherein the performance of the fund could be slipping. Many investors act in haste and quickly sell off their investment when there are a few months of underperformance of the fund. This might not be the best way to go about the entire process because the fund could soon be on the path of growth and this could have been a temporary situation. That is the reason why investors actually need to watch for several quarters whether the poor performance is on account of some specific condition. If this is the case, then the way to remedy the situation should be checked and when things do not look too good, then the decision to sell the investment would be appropriate. Otherwise, if the situation is good, then they should give time to the fund to start performing again. The other thing that also needs attention is the likelihood that there will be deterioration in the investment's performance. Then this could become a reason why the investor would want to sell the investment.

Do not pick a mutual fund based on the number of units you or NAV of the fund Posted: 22 Sep 2011 12:13 AM PDT      Net asset value (NAV) is one of the main metrics used by investors while taking an investment decision on a mutual fund. Mutual funds invest the money collected from investors in the capital markets. Since the market values of securities change every day, the NAV of a scheme also varies on day-to-day basis.    The performance of a particular scheme of a mutual fund is reflected in its NAV. The NAV is the common denominator used to sum up the performance of a mutual fund. This measure is a key performance indicator for any mutual fund. It is the market value of the securities held under the scheme.    The NAV of a unit is the market value of securities held by the scheme divided by the total number of units in the scheme on any particular date. For example, if the market value of securities held by a mutual fund scheme is Rs 3 crores and the mutual fund has issued 10 lakh units at Rs 10 each to investors, the NAV per unit of the fund is Rs 30 (3 crores divided by 10 lakhs). Mutual funds are required to disclose their NAVs on a regular basis.    Many investors have the tendency to pick a scheme that is available at a lower NAV compared to one available at a higher NAV. Many a time, they prefer a new scheme that is issuing units at Rs 10, while existing schemes in the same category may be available at much higher NAVs. In reality, in case of mutual funds schemes, lower or higher NAVs of similar schemes of different mutual funds don't have much relevance. As against the NAV, you should choose a scheme based on its merits considering performance track record, dividend history, scrips in the portfolio, service standards, fund manager's track record, professional management etc.    For example, Scheme A is available at a NAV of Rs 10 and Scheme B at Rs 100. Both schemes are diversified equity-oriented schemes. If an investor has put Rs 10,000 in each of the two schemes, he would get 1,000 units (10,000 divided by 10) in Scheme A and 100 units (10,000 divided by 100) in Scheme B. Assume the markets go up by 20 percent, and both the schemes perform equally well and is reflected in their NAVs. The NAV of Scheme A will go up to Rs 12 and that of Scheme B to Rs 120. Thus, the market value of investments will be Rs 12,000 (1,000 multiplied by 12) in Scheme A and the same Rs 12,000 in Scheme B (100 multiplied by 120) too.    The investor gets the same returns of 20 percent on his investment in both the schemes. Thus, lower or higher NAV of a scheme and allotment of higher or lower number of units within the amount an investor is willing to invest, should not be the main factor for guiding the investment decision.    It is quite possible that a better-managed scheme with a higher NAV may give higher returns compared to a scheme which is available at a lower NAV but is not managed efficiently. An efficiently-managed scheme at a higher NAV may not fall as much as an inefficientlymanaged scheme with a lower NAV. Therefore, you should give more weightage to the management of a scheme instead of NAV. You may get more units at a lower NAV, but the scheme may not give high returns if it is not managed efficiently in the long run.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online

Mutual Fund Review: LIC Nomura MF Floater MIP - Plan B Posted: 21 Sep 2011 07:58 PM PDT Plan B will invest maximum 10% of the corpus in equity or equity related instruments rest same as LICMF Floater MIP - Plan A.   Floating Rate Fund - STP Objective: The investment objective of the Scheme is to generate consistent return by investing mainly in a floating rate instruments / fixed rate instruments swapped for floating rate return so as to minimise the interest rate risk for the investor. Options: The Scheme offers Investment under the Growth Option and Dividend option. Dividend option is having payout and reinvestment facility. Initial Offer Price: Rs. 10/- per unit. Minimum Investment: Rs. 5000/- and thereafter in multiples of Rs. 500/-. Nav Declaration: Nav calculated up to 4 decimal places and declared on all calender days. Easy Liquidity: Licmf Floating Rate Fund - STP provides investors with easy liquidity where investors can redeem their investments at Area office / business centres and other authorised centres. Repatriation Facility: NRIs, OCBs, FIIs and PIOs may invest in the scheme on full repatriation basis. (Investment will be governed by rules laid down by RBI/SEBI in this regard). -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online

How to avoid rejection of your motor cover claims? Posted: 21 Sep 2011 12:04 PM PDT   Any loss due to wear and tear is not part of the auto policy ANY modifications in the vehicle, which also increases risk, must be brought to notice of the insurer SIMPLY buying a car insurance policy may not necessarily ensure claim settlement in case of need. A large number of claims are rejected by insurance companies due to common but avoidable mistakes on the part of the customer. Don't forget to renew your policy on time. Despite being a customer of the insurance company for many years, even if you miss renewal by a single day, and unfortunately, a claim arises on that day, the company will reject your claim. Unlike life insurance policies, there is no grace period for motor insurance. These insurance contracts are only for a 12-month period. Apart from claims, you may also lose out on a `no claim' bonus if the vehicle is not insured within 90 days of expiry of the policy. Motor insurance cover risks against accidental damages to the vehicle. Any loss due to wear and tear is not part of the insurance policy. Wear and tear of parts, including tyres and tubes, are not covered. Any claims for such damages will be rejected. In case you make any alterations in your vehicle, such as fitting of CNG/LPG kit, inform your insurer, failure to do so may lead to claim rejection in the future. Any modifications done in the vehicle, which also increases risk, must be brought to the notice of the insurance company, or else, the company has a right to reject the claim. The company can also reject your claim if you are found driving under the influence of alcohol at the time of the accident. Another common mistake most people make while making a claim after the accident is delay in reporting it to the insurance company. All claims must be made within 10 days of accident. "Ideally, all complaints must be reported within seven days," said an official of a public sector insurer. If you read the policy documents carefully, you will find that there are some restrictions on auto insurance coverage. The vehicle must be driven for personal use only. If you are found using your vehicle as a cab, using your private car as a goods carriage or for racing and speed testing, your claim will be rejected. A proper driving licence holder must drive the vehicle at all times or risk coverage may lapse. In case, you intend to use your car as a cab, inform your insurer. The insurance cost for a commercial vehicle is different from that of private vehicles. In case you are buying a second-hand car, make sure that the insurance policy document has been transferred in your name. At the time of making a claim, name on insurance document and the registration certification (RC) must match or your insurance company can deny your claim. In case you feel you have not been treated fairly by the insurance company, you can approach the insurance company and file a complaint. If your insurance company fails to address your problem, you can also approach the insurance ombudsman. Recently, the Insurance Regulatory and Development Authority (Irda) launched an online integrated grievance redressal mechanism for policyholders, where they can make complaints online.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online

All about General Insurance Posted: 21 Sep 2011 11:44 AM PDT General Insurance covers anything other than the risk over the life of an individual. It most commonly covers the risk against health, motor, travel, household, fire and many more. Most general insurance policies are issued annually, that is the general insurance company provides the cover for a year which has to be renewed annually by paying a one time premium. A medical policy of an individual, for instance, is an annual contract. Whereas, in some cases the policy is provided for a short time span such as a travel insurance policy which covers an individual only during the duration of the travel. Major insurance policies that are covered under general insurance are: Health Insurance Health insurance policy, the most commonly of which is a mediclaim policy covers unexpected medical emergencies of an individual. Subject to the policy, it provides cashless facility by covering all hospitalization expenses along with pre and post medical expenses. It also provides tax benefit to the insured. Despite these facilities, every health insurance policy have certain exclusions which are covered only after the insured bears a waiting period. Motor Insurance Legally, every vehicle running on road should be insured. A motor insurance policy covers the damage to the vehicle and the third party during an accident. A comprehensive motor insurance plan covers the vehicle insured along with the third party that might suffer during the road accident. A motor insurance policy provide a cover to you and your family by a personal accident cover and also protects you from the liability towards the third party. Travel Insurance A travel policy covers the insured with the unheralded emergencies that may take place while travelling. These emergencies may vary from loss of luggage to the medical emergencies faced by the traveller. A travel insurance policy usually covers Medical expenses, accidental death or disablement benefit, delayed departure, trip cancellation and loss of baggage. Home Insurance It is a type of insurance that covers your most valuable asset, your house. It covers loss of home and its contents. A home insurance policy covers all your household components be it refrigerator, air conditioners or television sets. It protects your house from unexpected emergencies, keeping you safe. Despite the above, organisations get their goods, commercial vehicles, godowns, shipments, offices, laptops and many more covered under general insurance. FAQ'S Can I take two policies and get claims from both? In case an individual holds two policies, the claims raised would be shared by both the policies. Under no circumstances, a person can get more than the actual value of the bills against which a claim is raised. How much should I ensure for? Normally the sum assured should be the market value at the time of purchasing the insurance product. How do I pay the premiums? A general insurance policy usually is an annual contract where the insured has to pay the premium once in a year in order to renew the policy each year. Other than this, few policies are short term such as travel health policies, which require a one time payment and are valid for the duration of travel. Why are there different premiums for different people? Premiums, commonly referred to the payment made against purchasing a policy is usually different depending upon the sum assured. Higher the sum assured, higher would be the premium that a person would have to pay. Similarly, it also depends upon the age of a person in case of a mediclaim, and many other factors. How do I get my Claims? The claims are either cashless, as in the case of a health policy or the payment can be reimbursed by the general insurance company on production of bills paid by the policy holder.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online

How to get Gold Loan? Posted: 21 Sep 2011 10:07 AM PDT Gold is the ultimate tender. The yellow metal is considered to be one of the most liquid assets in the world. The reason for this is simple – it is accepted as a universal currency and finds a buyer in virtually any corner of the earth. So, when you do wish to borrow in case of an emergency, the yellow metal provides the easiest option. The traditional way of borrowing has been pledging your ornament to the jeweller and borrowing from him. The jeweller keeps the ornament with him and lends you a certain amount, depending on the valuation. Typically, he would lend you an amount equivalent to 50% of the value of gold you pledge with him and charge you a hefty rate of interest. The rate of interest could start from 30% and go to as high as 50%.   However, today there are several different options available to investors. Investors can avail gold loans from private sector banks such as HDFC Bank, ICICI Bank or even from NBFCs. Manappuram Finance and Muthoot Finance specialise in gold loans and claim to offer you quick loans with minimum documentation. All you need is either of these – a voter ID, passport, ration card or driving licence, and you could walk away with emergency cash needed. In fact, some NBFCs are also open on Sundays and claim to give a higher percentage of loan against ornaments. While banks would typically not give more than 75% of the gold value as loan, NBFCs' lending could go as high as 95% in case of highpurity gold. Gold loans are typically sanctioned against pledged gold ornaments. Based on its value, a personal loan is sanctioned on the basis of income and repayment capacity of the applicant. The interest rate could depend on the tenure and amount of loan. It could vary from 12% to 18% in the case of banks, while for NBFCs, it could even go up to 24%, depending on the scheme you opt for. There is no minimum period for the loan and, if need be, you can return the loan amount the very next day you took it.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online

ICICI Prudential Mutual Fund has introduced the trigger facility Posted: 21 Sep 2011 09:04 AM PDT   ICICI Prudential Mutual Fund has introduced the trigger facility under various open-ended fixed income schemes, with effect from September 7, 2011. Through this facility, investors can park their lumpsum investible surplus in fixed income schemes and can switch to specified equity schemes based on pre-defined trigger when the markets reach the specified levels.   The salient features of the facility include: 1. Investors will have the option to select the trigger from a set of triggers on the NAV of Transferee schemes or BSE Sensex values (in multiples of 100) for switching to equity Schemes. Trigger level will be based either on the fall in BSE Sensex Value or percentage drop in NAV of specified plan of transferee scheme. 2.The trigger option will be available under growth sub option of the transferor schemes. 3.The minimum application amount should be Rs. 20,000 for registering under this facility. 4.Trigger at 20% with depreciation in NAV of transferee schemes and switch into ICICI Prudential Target Returns Fund will be the default option under the trigger facility. Transferor Schemes (Retail/Regular growth option only)    Transferee Schemes       ICICI Prudential Liquid Plan   ICICI Prudential Dynamic Plan ICICI Prudential Short Term Plan   ICICI Prudential Focused Bluechip Equity Fund ICICI Prudential Income Plan   ICICI Prudential Discovery Fund ICICI Prudential Floating Rate Plan - Plan A & Plan B   ICICI Prudential Top 100 Fund ICICI Prudential Flexible Income Plan   ICICI Prudential Top 200 Fund ICICI Prudential Long Term Plan   ICICI Prudential Target Returns Fund ICICI Prudential Ultra Short Term plan   ICICI Prudential Equity & Derivatives Fund - Volatility Advantage Plan         ICICI Prudential Balanced Fund     ICICI Prudential Index Fund   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in IDFC Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in L&T Mutual Funds Online   Invest in Edelweiss Mutual Funds Online

Tips for a good Financial Planning Posted: 21 Sep 2011 08:27 AM PDT We value our health very much. We go for a comprehensive medical check-up regularly. But, do we take care of our financial health in the same way? Do we have blind spots that are built into the way that we naturally think, akin to the blind spots in a car mirror? Blind spots are follies that we should have known or should have realised or should have thought about, and which seem obvious in hindsight. It may be impossible to eradicate these blind spots, since they are embedded into the system. But, we can endeavour to minimise their influence. Here are a few tips. FOCUS ON PROCESS The need to focus on process rather than on outcomes is critical in investing. In investing, outcomes are highly unstable because they involve an integral of time. One needs to judge an investment decision based on its quality at the time it was made, rather than judge it by the outcome. Having a financial plan and a process to implement it would enable us to maximise our potential to generate good long term returns. Focusing on the process and its long-term benefits may not necessarily help you in the short term. There may be the pressure to change your process during sustained periods of under-performance. ALIGN INVESTMENTS TO GOALS Before investing, the questions you should ask are: What are these funds invested for?; what is the goal? This may sound simplistic, but the time frame of the goal determines investment allocation. To cite an example, prior to retirement, even if your portfolio is performing well, you may have to move certain part of your portfolio to fixed income funds as it would lend stability for your portfolio and help you meet your retirement needs. DIVERSIFICATION Risk means that more things can happen than will happen. We do not expect that our house will burn or car will meet with an accident, but it might. So we insure against the risk of fire or accident. We do not expect the stock in which we invest to decline in price, but it might. So, we do not put all our money into one stock. Diversification should be of the right kind and for the right reason. A portfolio consisting of different mutual funds investing in the same universe of securities, governed by the same regulation and subject to the same market pressure like purchase, redemptions, etc, will have equivalent risk as that of investing in a single fund. That is a classical example of "1/n strategy" — dividing one's investments evenly across various investment options available. The proportion invested in each investment option depends on the number of choices available. If there are three choices, say three new funds on offer, the investor will split his investments equally among the three choices. This is naïve diversification. Depending on how the choices are structured, individuals can end up taking too little or excessive risk. For eg, if two income funds are on tap, people can invest/allot a proportionate percentage to income funds. THE POWER OF AVERAGING Statisticians have discovered that the most reliable predictions of all were achieved by taking the average of the results from a number of different forecasting methods. The power of averaging works well for investment decisions and would enable you to eliminate the outliers. Be it diversification of securities by investing in mutual funds or diversification across time by investing through systematic investment plans, a disciplined approach to investing will help you achieve your goals. PROFESSIONAL ADVICE Whenever people think they know more than they do, they are under the influence of an illusion of knowledge. Information does make one knowledgeable but when the information is partial and uninformative, it leads to illusion of knowledge. Overconfidence in your abilities may lead to costly mistakes. Moreover, you may not have the necessary time to focus on your finances. Collaboration with a professional financial planner may help you identify your blind spots. FINANCIAL PLANNING IS BORING You should not look for any excitement here. It is dull like watching the paint getting dry. Perfect planning and preparation prevent poor performance. This may not make you superrich but it will enable you to gain more control of your financial fortune and ensure that your money plan grows steadily.

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