Mutual Funds | Insurance | Investment |

Investment and compounding are the two terms that are always used together. It is believed that the compounding effect on investments helps investors reach their financial goals in a time-bound manner. In fact, the whole relationship between investment, rate of return, and time can be presented in terms of a popular equation i.e.,  Amount = P(1+r/100)^t Here, Amount = the final value of your investment P = the principal amount invested r = the rate of return achieved t = the time for which money was invested If you can memorize this easy equation and apply it to all your investments then in terms of investment knowledge you will be in the top 5% of investors. Most people don't understand the core meaning of this equation and keep on switching from one product to another in search of returns. The equation simply states that if you invest a particular amount and it grows at a rate of return and the successive returns are reinvested then with an increase in time horizon the amount wil...

Post lockdown weight loss has been the top of the agenda item for a lot of people who blame their exceptional weight gain on the forced stay at home orders that the government issued in March 2020. Gyms, walking, cycling & swimming, everyone seems to catch hold of their favorite activity which will help them shed the extra pounds. But, do you know the biggest factor that decides the speed with which you will shed weight? No, it’s not the amount of exercise that one may do but the amount of diet or calorie intake that the person intakes. The incremental impact on every calorie surrendered is more than the incremental effect of an increase in exercise time. So, if you are pushing yourself too much on that treadmill but eating the same quantity then there is a possibility that you remain stuck at your current weight levels. Today, we are not going to talk about food and exercise. We will talk about something more important, something that may change your life financially. Here we are ...

Did you ever have a careful look at your motor insurance policy document? There are two parts in which the premium is divided. One being the Own Damage Premium and the other being the Third-Party Premium. With this post today we will learn more about third party insurance. A third party insurance policy as the name suggests is one that covers the third party which has suffered damages due to your vehicle. So, if you accidentally hit someone on the road and the person or his vehicle suffers damage then he can claim damages from you which will be payable by your insurance provider. The third-party insurance covers you of the legal liability for damages that you owe to a third person because you caused an accident. Legal requirement Third-party insurance is the bare minimum insurance that your vehicle should have. It is a legal requirement to have third party insurance for your vehicle. Not having one is considered a violation of the law and can lead to a fine if the vehicle gets checked ...

There was a time when one used to get his own personal bank account either post the age of 18 or at the time of their first job. Opening your first bank account is a memorable event because that marks your formal entry into the monetary system. You get equipped with cards & cheque books and have the right to transact anywhere in the world with the help of banking instruments. A few years ago bank accounts were thought to be a privilege that only salaried and businesspeople could enjoy. For others, it was often thought that if you don't have any income then what will you do with a bank account! But times have changed now. Today, more than 80% of Indians have a bank account. This massive influx of bank accounts has led to a change in the lifestyle as well as thinking of an average Indian household. Banks are looked upon as a store of value where money can be kept safely while offering liquidity just like physical cash. Money kept in the bank isn't vulnerable to hazards like d...

Money is one of the most important aspects of our lives. It is the primary medium with which we transact with our surroundings. But money isn’t available in abundance and has a tendency to change hands too soon, and, thus should be used wisely. Its righty said that money doesn’t grow on trees; it is to be saved for the future. Investing money makes sure that its growth continues unhindered and the future of the individual and her family becomes secure. The art of financial discipline helps individuals to achieve their financial goals in a structured manner. This art should be learnt from very early on so that the gains can come sooner, thus, giving your money more time to grow over the years. Even children should be taught about financial control so that when they are of investing age they are ready with a reasonable degree of investing knowledge. Parents generally tend to give lesser importance to imparting financial education to their children. They think, taking financial decisio...

Our kids hold a very special place in our lives. The lives of the parents revolve around their kids. Parents take all efforts to make the future of their children secure and bright. Whether it be material needs, emotional needs, or financial needs, parents ensure that all these are met with their available resources. A lot of parents start planning for the financial needs of their kids from quite early on. Be it financing for kid's higher education or their marriage , parents plan for these expenses years in advance. And when it comes to investing for the future, there is no better alternative than mutual funds . Not many people are aware of the fact that they can invest in the name of their minor children in mutual funds . This way they can segregate the money from their overall investment corpus which can be used to meet the child's financial needs when she reaches different life stages. Many parents invest in their own names and try to create mental segregation but there ar...

The majority of the people who buy zero depreciation motor insurance policies are under the impression that in case of an unfortunate accident they won't have to pay anything. But, even with zero depreciation cover there are a host of expenses that have to be borne out of your pocket until you purchase the specific add on cover. We talked about the benefits of engine protection cover  a few weeks ago. Today we will discuss another important but often overlooked add on i.e. the Consumable Cover . Consumables are those items which are subject to general wear and tear and can't be reused once they are installed. The example of consumables are nuts, bolts, AC gas, engine oil, gear oil & other lubricants, radiator coolant, weight balances, and other such things which once used can't be reused. Nuts and bolts can't be refitted once the car is dismantled for repairs. The cost of consumables is usually small in comparison to the total insurance claim but if you don't ...