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| Posted: 10 Jan 2013 03:21 AM PST Call 0 94 8300 8300 (India) Whether you are prepaying the loan or paying the last instalment of the housing loan, ensure you have arrived at the right closure.
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| How you can benefit from critical illness insurance? Posted: 10 Jan 2013 01:49 AM PST Call 0 94 8300 8300 (India)
OVER eight lakh Indians are affected by cancer every year, nearly five crore suffer from coronary heart disease and almost one lakh patients are diagnosed with kidney failure each year. Industry know how indicates that the total health expenditure in India is worth Rs 3,00,000 crore. Hospitalisation spends accounts for Rs 1,00,000 crore. As opposed to that, the current level of health insurance premium is worth only Rs 6,000 crore. This means majority of India does not have an insurance cover and this is the bitter truth. Making matters worse is medical inflation estimated 15 per cent per annum. The financial impact of this phenomenon are in three areas first, potential loss of savings where your hard earned money could be wiped out, especially as one comes down the income strata, second, potential loss of income especially in cases where the breadwinner of the family is self employed and is unable to go to work due to the illness and third, potential ad-hoc expenses One aspect is rising costs. But what necessitates a catalyst approach to an investment in health insurance is our lifestyle outcome. With 30s being the new 40s and 40s being the new 50s, it's imperative to invest in a differentiated cover that provides optimal protection. Further, many sections of the society have existing investment in assets that require midand long-term financial commitment in the form of EMIs for example. Against the backdrop of financial dependency, if the breadwinner of a family is diagnosed with a critical disease that threatens financial security, the cost is not only extended towards treatment but the family needs to account for income loss or wealth depletion. Thus a good critical illness policy will help one to prepare better as it typically offers up front payment upon diagnosis of the illness irrespective of treatment or hospitalisation costs, thus protecting your wealth, protecting your income and protecting your livelihood. One should ideally have the flexibility to purchase a critical illness cover as a `stand alone' or supplement to an existing health insurance cover. Infact if a family has a medical history that poses higher probability of threat for an individual and their children, the latter option is advisable as it can potentially double benefits subject to which policy one is going in for. Here are a few tips while investing in a critical illness cover: When purchasing a critical illness cover compare policies offered by different companies. Opt for the one with an affordable premium providing the highest or superior coverage. Make sure it covers all the major organs of the body including brain, heart, lungs, kidney, intestine, pancrease, nervous system and skin Opt for newer critical illness policies because in all likelihood it covers diseases for the first time in India.
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We can help. Call 0 94 8300 8300 (India)
Leave your comment with mail ID and we will answer them
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Invest Mutual Funds Online
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| Posted: 10 Jan 2013 12:41 AM PST Call 0 94 8300 8300 (India) After burning his fingers by trying to manage his stock portfolio independently, Amit Rao is considering taking professional help from a portfolio management services (PMS) firm. However, he must choose the cost structure —fixed or variable. A fixed-cost structure charges a specific percentage fee on the total assets under management (AUM) on a quarterly basis, amounting to about 2.5 -3 per cent annually. On the other hand, a variable cost structure is linked to the portfolio's performance or the profits generated in a financial year. A pure 'variable' cost structure is rarely offered. A fixed fee of about 1.5 per cent of the AUM (lower than that charged under the fixed cost structure) is charged as the fund management fee. There is a performance fee, too. Despite this, Rao is veering towards the variable cost structure. Reason: He wouldn't have to dole out a high fee if his portfolio is not generating good returns. An added incentive comes with the Securities and Exchange Board of India (Sebi) making it mandatory for fund managers to use the high watermarking principle while calculating variable costs. The principle marks the highest achieved value of the portfolio in a year, and performance fee is charged only if the portfolio value crosses this watermark. Understand with an illustration: Say you invest `10 lakh and this amount increases to `13 lakh in the first year. The portfolio manager will share profits worth 10-20 per cent. Industry officials say that Sebi has only provided a broad principle for the calculation of the watermark. Fund managers have the flexibility of ducting the fixed fee and the profits taken by the portfolio manager, or, after deducting the fixed fee only. Such nitty gritties are governed by the contractual agreement between the client and fund manager. The client can negotiate the terms of the contract with the fund manager. Deducting the fixed fee component before calculating the watermark is a common practice. However, the fund manager's share in profits is usually not deducted. For instance, say your investment of 10 lakh rises to `13 lakh. A fixed fee of `10,000 is deducted. Now, your portfolio value is `12.9 lakh. Since the profit 12.9 lakh, ever, With each switch, the watermark will be reset.. Say you switch from a variable cost structure to a fixed-cost one. If you want to go back to the former, your previous watermark will not be considered and the fund manager can start with a clean slate. Irrespective of the option Rao picks, there are some common charges: upfront fee (a one-time flat fee of 1-2 per cent charged at the time of investment, deducted from the overall investment), brokerage charges on buying and selling of stocks (about 50 paise per thousand), service tax (10.3 per cent on the brokerage) and the custodian fee. Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
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