“Itni zaldi bhi kya hai, ek-do saal mein investment shuru kar lenge". This is what I hear from people when I try to motivate them to start investing early. If you are planning to save for your Retirement days or any other long term goals, don’t wait for another 5 years to start, START NOW. You may not realize, but you need to save double the amount in case you delay the investment by just five years. Let me explain this with the help of an example:   Let&rsquo ....

Equity - The Real Gold


  GOLD VS SENSEX RETURNS   Gold is the asset class which can be seen in almost every household. It’s the most trusted asset for years & every year you add more to your portfolio in the form of jewellery. And once you buy it, you never sell it.   But when it comes to equi ....

Kaun Banega Crorepati


  KBC first aired in 3rd July 2000 and was hosted by Amitabh Bachchan, his first appearance on Indian television . KBC initially offered contestants the chance to win up to Rs. One crore. Till date it has telecasted 8 seasons and expected to telecast it’s 9th and last season in 2017.   I remember it was dream of almost everyone to somehow get themselves register for the show by calling KBC and answering few ....

The Story of 5 lakhs vs 50 lakhs in 21 years - PPF vs ELSS


  This article shows how investing as little as Rs.10,000 per annum in Public Provident Fund for 21 years resulted in accumulation of Rs.5,89,962. Whereas during the same period, if Rs.10,000 were invested in TAX SAVING MUTUAL FUND (ELSS) per annum for 21 years, it resulted in accumulation of Rs.54,04,810. Approximately Ten times greater than what was accumulated in PPF.…that’s a huge differ ....

Consider Investment as your child


Have you ever wondered how much amount you need to spend in the upbringing of your child.   In this article I will show with the help of numbers how much you need to spend on your child. Also I will show if the same amount was saved how much corpus will it create over a period of time.   Let’s first calculate how much you need to spend on your child. Say his date of birth is 01-01-2017  

Which is the Best Mutual Fund ?


  The most common question asked by investors regarding Mutual Fund is “Which is the Best Mutual Fund”. Asking for Best Mutual Fund to your advisor is somewhat similar to going to a doctor and asking him for the best medicine he has. There is nothing like good or bad medicine. All the medicines are good. In a similar way, there is nothing like good mutual fund or bad mutual fund. Selection of mutual fund depends on two major factors; Your Time Horizon & Risk Takin ....

Bank FD Vs. Debt Mutual Fund


    You must be listening all around by family members, friends, agents etc to invest in mutual fund. In case you are not convinced & are happy to park your money in bank fixed deposit, have a look at Debt Mutual Fund, which are far less risky as compared to Equity Mutual Fund & Taxation of interest part is almost zero after 3 years due to indexation effect.   MY ....

Save Tax on Saving Bank Interest Amount


  Here is a good news for all those people who park their money in bank saving a/c so that it can be used for emergency needs.   From the financial year 2012-13, interest credited upto Rs. 10,000 is not included in the total income for the calculation of income tax (This is in addition to Rs. 1.5 lakh u/s 80 C)  

Mutual Fund Systematic Investment Plan (S.I.P.)


  This article is dedicated to all those people who are interested in investing in Mutual Fund but doubt about the risk involved in investing in Mutual Fund.   To an extent there concern is right. There is always a risk factor involved when you invest in Mutual Fund & that’s what the disclaimer says “Mutual fund investments are subject to market risks, read all scheme related documents carefully”. That’s one part.  

LIC - Varishtha Pension Bima Yojana


  It’s a Pension Plan introduced by Government of India in association with LIC of India. This scheme is exclusively for senior citizens. Here you need to pay a fixed amount and you will get back a fixed pension amount. Let’s have a look at this plan in detail:     Validity You can purchase this plan anytime between 15th Augu ....

Senior Citizen Saving Scheme (SCSS)


  The most common question asked by retired people or the one who are about to retire is where to invest the lump sum money which they will get after retirement. If used in a planned way, SCSS will prove to be your best investment after  retirement. You also get rebate u/s 80 C if you invest in this financial instrument.     In order to help the elderly people to park their retirement corpus ,Government of India in the year 2004, introduced ....

Policy Review - HDFC Life Sanchay


  This is an Investment + Insurance plan offered by HDFC Life Insurance. To know WHY NOT TO INVEST in this plan, read on:   Let me explain things with the help of illustration given in the product brochure of HDFC Sanchay plan. Click on the following link to download the brochure:

How To Select A Term Insurance Plan


  What is Term Insurance:   It is the purest form of Life Insurance. The reason it is called the purest form is that it does not have any investment part in it. The buyer knows the exact amount which his family members will be getting on his demise.   One can compare it with car insurance. You pay premium each year for renewal of the car insurance cover & avail the benefits only when your ca ....

Stop Smoking & Save Crores


  How to convince a 20 year old to quit smoking !!!... I know the 1st thing that comes to your mind is that you will let him know that smoking can cause cancer & it will have a negative impact on his overall health. Agree… what if you tell him that he can accumulate crores for his Retirement days if he quit smoking. Let’s see how:  < ....

Beware of such fraud E-mails


  Recently I received the following e-mail on my id     " The Office of  Foreign Remittance. Department Reserve Bank of India. 6, Sansad Marg, New Delhi -110 001, India.< ....

ELSS - Tax Saving Mutual Funds


    Tax Saving Mutual Funds, better known as Equity Linked Saving Schemes  is one of the most efficient way to save tax as well as earn high returns on your investment over a period of time.     80 C Benefits You will get a tax rebate up to Rs.1,50,000 under section 80 C.    

Impact of even 1 percent Interest Rate on Investment


  1 % !!!! Have you ever had a conversation with your vegetable vendor to give you 1 kg of vegetable for Rs. 50 instead of Rs. 55. I don’t know about you but from childhood I have seen my mother doing this. No doubt it’s a very good habit & one should bargain as much as possible. During my mba days, loads of stress was laid upon the term “Opportunity Cost” (The best possible alternative that must ....

Save for your Child Retirement Planning


    You must have planned for your child higher education, marriage etc. How about planning for his / her retirement days.   I know, the first thought which came to your mind is what !!!! why !!!   Yes you are right… no one plans for his/her child retirement planning. The basic idea behind writing this article is to show you the power of compounding. You will be amazed to know how just saving Rs.1,000 ....

Post Office Monthly Income Scheme


  This scheme is for for all those people who want to receive a fixed amount per month by investing a lump sum amount.   Where to open: Post Office Monthly Income Scheme (POMIS) can be opened in all the post offices across India offering post office saving account. The depositor shall be given a passbook. The passbook shall be presented to the post office at the time of collecting the interest amount.     ....

LIC Jeevan Akshay 6


  UIN: 512N234V04 Plan No. 810   Loads of buzz all around about LIC Jeevan Akshay 6. Turn on any FM channel in Kanpur (my place) & you will get across it’s advertisement. Have a look at my analysis on this plan before investing.   This is what Jeevan Akshay 6 offers to you: “It is an Immediate Annuity plan, which can be purchased by paying a ....

Lost Money in Mutual Funds !!!....


  And they say, "We lost money in Mutual Fund"    This article is dedicated to all those people who complain about losing money in Mutual Funds.  Article will also turn out to be useful for those who are skeptical about investing in Mutual Funds.     Many a time people say that investing in M ....

Rounding off cheques


  Rounding off cheques to the nearest rupee Banks are required that all transactions, including payment of interest on deposits / charging of interest on advances, should be rounded off to the nearest rupee i.e. fractions of 50 paise and above shall be rounded off to the next higher rupee and fraction of less than 50 paise shall be ignored.   Banks are however, required that cheques issued by c ....

Get an acknowledgment for 15 G/H


  On 31th May 2013 RBI issued a notice to all banks across India to give an acknowledgement to customers submitting form 15 G/H.   As you are aware banks are not required to deduct TDS from depositors who submit declaration in Form 15-G/15-H under Income Tax Rules, 1962.   How ....

Goal Based Investment


    If you are Confused!!!… about where to invest your hard earn money, hold on…the Bigger question is why to invest. Confused…my point is SET YOUR GOALS FIRST, because it’s about your financial planning, it’s about Your Finance.     Generally we invest our money in bank FD’s keeping in mind that we will earn the interest income over a period of time o ....

Demand Draft


  In the technology driven banks & financial system in India, where transfer of money is a child’s play (NEFT & RTGS).   Though charges involved in transferring money online is negligible, Demand Draft, popularly known as DD is the most trusted payment instrument by organizations all around. Let’s have a look at some known & unknown f ....

Income From Agriculture


  It’s a common misconception among many that income from agriculture is always tax free, actually it’s not always tax free.   When income from agriculture is tax free ? Income from agriculture is tax free when income from other sources such as salary income, interest from fixed deposit , income from house property or income from any other source does not exceed basic exemption limit.  

Permanent Account No. - PAN


  This number is almost mandatory for financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits etc.   The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states.   Permanent Account Number (PAN) is a Ten-Digit alphanumeric number. PAN structure is as follows:  

E - Gold


  All that glitters is E Gold   Gold !!!! we have seen this precious metal all around  us ever since we can remember. So naturally there is a sense of affinity towards gold. Apart from this, value of gold has increased from Rs.360 to Rs.2,750 during the last 20 years (1st April 1993 to 1st April 2013) i.e. approx 10.7% increase per annum compounded annu ....

KYC - Know Your Customer


  Who is required to have KYC Any individual or entity such a huf, firm etc. who is planning to make a financial transaction such as opening a bank a/c, buying an insurance, planning to invest in shares, mutual funds etc must be a kyc compliant.     Are You KYC Compliant: Enter your PAN no. in the box “My KYC Status” to kno ....

Gold Vs Share Market


  Some analyst says that investment in Gold is far more better than investment in Share Market, others like to invest in bank fixed deposit. Many a times i have seen analyst saying on business channels that one should have 10-15% of gold in their portfolio etc.     Now the Big Question is where should you invest !!!… As they say that one should not put all his eggs in one basket, same goes with your investment al ....



  Q. 1. What is an ATM – Automated Teller Machine Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch.     Q.2. What type of ....

Types of Pension Funds


  Superannuation A superannuation pension shall be granted to a Government servant who is retired on his attaining the age of 60 years.     Retiring Pension A retiring pension shall be granted to a Government servant who retires, or is retired before attaining the age of Superannuation or to a Government servant who, on being declared surplus opts, for ....

Pension - FAQ


  1. Can the pensioner draw his/ her pension through a bank branch? Yes. Even the Government employees earlier drawing their pension from a treasury or from a post office have the option to draw their pension from the authorized bank’s branches.   2. Who is the pension sanctioning authority? The Ministry/ Department /Office whe ....

NRI - Non Residential Indian


Who is an NRI?   An individual shall be deemed to be a non-resident in following cases:   1. When he stays in India for less than or upto 182 days during the preceding financial year. The period of stay may not be ‘continuous’ and the same shall be calculated by adding up the days of his stay in India during that financial year. Thus a student who goes for studies abroad and his stay ....

FAQ. on Salary Income


  What is considered as Salary income? Whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as Salary.     What is meant by an employer-employee relationship? If a person has the right/power to hire and fire another, then he is an employer of the latter.    

New Pension Scheme


  The National Pension System (NPS) is a defined contribution based pension system launched by Government of India with effect from 1 January 2004. Like most other developing countries, India does not have a universal social security system to protect the elderly against economic deprivation. As a first step towards instituting pension reforms, Government of India moved from a defined benefit pension to a de ....

Track your Area Pin Code


  A Postal Index Number or PIN or Pincode is the post office numbering system used by Indian post. The code is 6 digits long. The PIN was introduced on 15 August 1972.   There are nine PIN zones in India, including eight regional zones and one functional zone (for the Indian Army).   The first digit ....

Leave Travel Allowance


Leave Travel Allowance is an allowance that is usually paid as part of Salary (Annual CTC to be specific) by employers to their employees. The original idea behind the LTA component was to help the employee meet his travel expenses. However, of late it has become yet another component of the CTC and no one cares much about it except how much is paid out as LTA every year by the employer.   LTA is usually decided for a year and then paid out on a monthly basis. For ex ....

PPF Partial Withdrawal Facility


  Their is a common misconception that money invested in Public Provident Fund is locked in for a period of 15 years. Here is a good news !!! You can make partial withdrawal from the PPF Account. Let’s see how:   A subscriber can make one withdrawal each year starting from 7th year onwards. The first withdrawal can be made ....

Public Provident Fund at Maturity


  Public Provident Fund is the best Tax Saving Instrument in India. To know why, read my article on PPF: Public Provident Fund   PPF matures after completion of 15 years. On Maturity of PPF Account, you can do the following things:     Case 1. Subscriber can withdraw the whole amount after maturity by applying in Form C. Click to downlo ....

Say 'NO' to Pension Plans


Planning to secure your retirement years by investing in pension plans offered by various life insurance companies !!!…Please Do Not…   First let’s have a look at what a Pension plan or a Retirement Plan offers….   You invest a fixed amount for a certain period say 5/10/15/20 years & get a fixed amount as pension after your retirement. Additional benefits offered by these plans are as follows:   1. L ....

How to make a Life Insurance Claim


Formalities for a death claim When a person with a life insurance policy – called a life assured – dies, a claim intimation should be sent to the insurance company as early as possible. The assignee or nominee under the policy can do this. So can any close relative or the agent who handles the policy.   The claim intimation should contain information like the date, place and cause of death. The insurance agent has the duty to help the li ....

Different Types of Life Insurance Policy


  Term Insurance You can choose to have protection for a set period of time with Term Insurance. In the event of death or Total and Permanent Disability if the benefit is offered), your dependants will be paid a benefit. In Term Insurance, no benefit is normally payable if the life assured survives the term.     Whole Life Insurance With whole life ins ....

In whose name Insurance should be bought


Income Tax Benefits of life insurance premium is allowed on premium paid on life of:   1. Self 2. Spouse 3. Children even if they are not dependent on father or mother   However deduction on life insurance paid in the name of once parents will not be allowed under section 80 C.     How much Tax Deduction is allowed o ....

Charges Deducted in ULIPS


When did you last receive a call from a telemarketer selling a unit linked insurance plan ? It must have been a while now.   Ulips, which not long ago were the darling of insurance brokers, have fallen out of favour among intermediaries after the new norms for the products came into effect from September 1, 2010.   It is no longer as lucrative for brokers to sell Ulips after the Insurance Regulatory and ....

Charges deducted in a policy


Insurance Products offered by different insurers have varying charge structures. Broadly, the different types of fees and charges are given below. However it may be noted that insurers have the right to revise fees and charges over a period of time.   1) Premium Allocation Charge: This is a percentage of the premium appropriated towards charges before allocating the units under the policy. This charge normally includes initial and renewal expenses ap ....

LIC New Jeevan Money Back Plan


It is an Insurance + Investment plan offered by LIC in 2014. Here you need to pay premiums up to 15th year.   Benefits: Survival Benefits: Here you will get 20% of the Basic Sum Assured at the end of each of 5th, 10th & 15th policy year. At the end of 20th year 40% of the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bo ....

Second Hand vs Brand New Car


In the previous article, Should you buy a car,  we talked about should one take a loan for buying a car. In this article, we will focus upon whether to buy a brand new car or a second hand car.   If you are among those who take out the car from garage once or twice in a week, TRUST me, you should go for a second hand car.   As per IRDA, depreciation rate for car is 15% per annum. Say you have Rs. ....

Education Loan


Students have different take on how to finance their higher education. It also depends on the financial condition of the family. Students pursuing Graduation mostly depend on their parents to finance whereas postgraduate students go for education loan because they are now mature enough & do not want to put any financial burden on their parents.   Best part of taking a Education loan is that one can claim income tax deduction on interest part u/s 80 E for the current a ....

Taxation of Mutual Funds


Long Term Capital Gains (LTCG): If a mutual fund is sold after one year (365 days) from purchase, gains arising from it are called LTCG.   Short Term Capital Gains (STCG): If a mutual fund is sold within one year (365 days) from purchase, gains arising from it are termed as STCG.   You are charged with less amount of tax if you sell the mutual fund after one year from it’s purchase (Though other factor ....



Fixed Maturity Plans(FMPs) are closed-end debt funds that are quite popular and useful. These FMPs, as they are called, are launched on a specific date for a specific period that can range from 1 month to 5 years.   FMPs are an excellent alternative to bank fixed deposits. They generally offer higher returns, especially because they are much more tax-efficient. This is because FMPs are taxed as capital gains while bank FDs are just added to the investors’ normal inc ....



Planning to sell your House Property, Gold, Debt Mutual Funds, have a look at how Indexation can reduce your Tax Liability. Remember that Indexation can be applied only when the capital asset sold is Long Term Capital Asset.     FINANCIAL YEAR

Net Asset Value (N.A.V.) Explained


Some of the investors have the tendency to prefer a scheme that is available at lower NAV compared to the one available at higher NAV. Sometimes, they prefer a new scheme which is issuing units at Rs.10 whereas the existing schemes in the same category are available at much higher NAVs.   Investors may please note that in case of mutual funds schemes, lower or higher NAVs of similar type schemes of different mutual funds have no r ....

Different Types of Mutual Fund Schemes


  Schemes according to Maturity Period A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period.     Open-ended Fund/ Scheme An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Inv ....

Mutual Fund Toll Free Numbers


Mutual Fund House Toll Free Number Axis Mutual Fund 1800 300 03300 Baroda Pioneer MF 1800 419 0911

MF Consolidated Account Statement - FAQ


What is a Consolidated Account statement (CAS) Consolidated Account Statement is a single account statement that consolidates financial transactions in all folios of an investor across all schemes of all mutual funds.     Why is Consolidated Account statement (CAS) being issued now? SEBI states that “the ....

Various ways to invest in Mutual Funds


Mutual fund investors are not exactly a pampered lot today. If you approach an agent for a mutual fund, he will either offer you an excuse or a Ulip/Insurance plan or both. This is the sad truth for the mutual fund industry after the scrapping of entry loads (the bread and butter for many advisers).   Even if you don’t have a dependable adviser, you can still invest in mutual funds by taking the online route. Online investing may not be very big in India but it&rsqu ....

Pay House Rent - Save Tax


Claim deduction on house rent paid even when HRA is not a part of your salary component or you are into business:   This article will bring smile to the faces of several people who often complain that they do not get House Rent Allowance and thus are unable to claim Income tax deduction. U/S 80 GG of the income tax act, one can claim tax exemption in respect of house rent paid even if HRA is not a part of salary component.   Who is E ....

House Rent Allowance - H.R.A.


House rent allowance forms a big part of salary component of most of the salaried persons. There is a common misconception that any amount of HRA received is tax free.  Let’s discuss in & out of this salary component and find out to what extent one can claim tax exemption :   Components of salary to be considered for computation of exemption of HRA: 1.Basic Salary 2. Dearness Allowance ( DA shall be considered only wh ....

Gift Money - Save Tax


  Financial dependency of children on parents in India is generally up to completion of graduation. (This assumption is applicable for financial well off families).   Parents can get some relief from Income Tax as soon as their child becomes MAJOR i.e. 18 yr’s  by gifting a lump sum amount to their child. Let’s C HOW;   If parents deposit money or make a Fixed Deposit or invest in any interest bearing instrument in the na ....

Clubbing of Minor Income


Many of us open a bank saving account or open a Bank Fixed Deposit in the name of our minor childrens. Have you ever thought who will pay tax on that interest amount from FDs or Interest from saving bank account. If you have opened a savings account or a fixed deposit in the name of your minor child, the interest earned will be taxable.   Ex. Say you opened a FD of Rs.1,00,000 for 1 year in bank in the name of your minor son/daughter @ 8% rat ....

Save Tax on School / College fees of kids


  For financial year 2014-15, income earned up to Rs.2,50,000 is not taxable i.e. if you are earning up to Rs.2,50,000 pa, you need not to pay any tax. Further, you need not to pay tax on income up to Rs.1,50,000 over & above Rs.2,50,000 by investing in tax saving instruments u/s 80 C such as public provident fund, ulip, child plan, pension plan, national saving certificate & many more.   In case you want to save tax without investing in 80 c instrume ....

Why To Save Tax


  Few days back a good friend of mine Ronak raised an important question…. why to save tax by investing in 80 C instruments where the rate of return is such that it hardly beats the inflation rate !!! Why not pay tax & invest the same amount where you can get a higher rate of return.

National Savings Certificate - N.S.C.


  NSC or National Saving Certificate is a Financial Product that almost every household have in their portfolio. Trust me ask your parents whether they have one & the obvious answer will be YES!!!…   People generally buy NSC to save tax u/s 80 C. In this article let’s focus upon the fine prints of this financial product & find out whether one should really buy NSC.     Who can purchase: 1. An In ....

Public Provident Fund


  It’s the most recognized tax saving tool in India for both salaried & self employed persons.   The BIG Question is why to invest here or should you even invest in it. No doubt the answer is YES because if you fall in the preview of income tax than you can save tax u/s 80 C by investing in it.   And how can one forget it’s E-E-E benefit. i.e. You get  ....

How to Calculate Tax on Income


Income tax is calculated on income earned in a financial year i.e. from 1st April to 31st March   How much tax one has to pay depends on Income of an individual and his age. Taxability of an individual in accordance to the age group is as follows :   Less than Sixty years:

1st Salary !!! where to invest


  1st of all Congratulations !!! I know I am not the only one who is wishing you on your 1st job, all of a sudden you must be getting calls from people who are into selling of Life Insurance products.   Then there are close family friends who are agents of insurance companies. This is how they try to convince you to buy the insurance product; “ Since now you have entered a new phase of life & in the near future your r ....

Should you buy a car !!!!....


  An Insight Out ….   Car, a medium of travel … is that so !!!   For many, it’s a matter of pride. And why not !!!, it’s your childhood dream to own one. So you got your 1st salary & to show your relatives & friends that you are well off, you deciding to buy a car. But do you have sufficient money !!!….   The answer to this is OFF COURSE . C ....

Inflation & You


The most common definition of inflation is increase in prices of goods & services over a period of time. Trust me we are not here to understand the definition of inflation. Let’s see how inflation affects our life & should we really care about it.   What is Inflation for you !!!! Say today you go to market & purchase 1 kg of mangoes for Rs.100. A year after you go to the market to purchase 1 kg of mangoes &a ....

Best Time To Invest !!!


  The most common question asked by people all around the world is “What’s the right time to Invest“.   The answer to this question lies in just two words “RIGHT NOW”. An example will help you better understand why !!!!   Two Investors named Investor A & Investor B started working a ....

Make Your own Child Plan


  Planning to buy a child plan !!! how about making a customized child plan on your own. Trust me it’s so simple & in the process you will save upon a huge amount of money because you need not to pay charges such as premium allocation charges, fund management charges etc to the insurance company.     Let’s have a look at what a child plan offers to you:

LIC New Jeevan Anand


  This is a new policy introduced by LIC in the year 2014. This is an investment + insurance plan where you need to pay a fixed amount for at least 15 years & at maturity you will get a lump sum amount. Your life will be insured till you are alive.   Seems good so far…. Trust me I can write a book on why not to invest here. I know you do not have patience to read all that stuff, so let’s start with what LIC is ....

Aajeevan Sampatti Plus


Basic Feature: This is an Investment + Insurance product offering you assured return of 6% / 5.5% on the Sum Assured. The amount will be given to you annually till you reach 85/100 years.This payout will be given to you after the premium paying term of 10/15 years as opted by you.   Limited Pay Period: You may choose a Premium Payment Term of 10 years or 15 years at inception of your Policy.  



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