February 2014 | Red Financial Solutions

Balanced fund for Non Resident Indians

Labels: Balanced fund for Non Resident Indians

Mutual funds and Non Resident Indians:-

The growth of market in India and relaxation in regulations related to NRI investment in Indian market have encouraged and appreciated investments made by Non Resident Indians in mutual funds in India. There are many options viz-a-viz objectives, companies and return statistics while investing in mutual funds in India.

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How to Invest in Kisan Vikas Patra

Labels: How to Invest in Kisan Vikas Patra

Kisan vikas patra:-

Financial schemes that double an investment in a reasonable period of time have always attracted people. These schemes can be targeted to situations when money becomes scarce to fulfill needs of a person's life. Kisan vikas patra is one such scheme from Indian post office that doubles one time investment in a period of 96 months. If a person purchases kisan vikas patra for Rs.5,000 he/she will be getting back Rs.10,000

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National Savings Certificate

Labels: National Savings Certificate

What is NSC?

National Savings Certificate is a small Savings scheme (currently NSC VIII), issued by the Dept. of Post, Government of India. It is available for purchase across all head post offices and other authorized post offices in the country.

Who can Purchase:

Individuals for themselves
Jointly by two

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Systematic Transfer Plan (STP)

Labels: Systematic Transfer Plan (STP)

What is STP?

Systematic transfer Plan (STP) is a strategy where an investor transfers a fixed amount of money from one category of fund to another, usually from debt funds to equity funds. Investing a lump sum amount in equity or mutual fund could be dicey for the investor as Equity markets are volatile and returns in equity mutual fund is linked to the performance of stock market. On the other hand if the investor invests the lump sum amount in debt funds it will generate less return when compared to other

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What is Primary Market?

Labels: What is Primary Market?

Primary market is the part of capital market where issue of new securities takes place. Public sector institutions, companies and governments obtain funds for further growth of the company after the sale of their securities or bonds in primary market. The selling process of new issues in primary market is called as Underwriting and this process is done by a group of people called underwriters or security dealers. From a retail investor's point of view,

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What is ETF

Labels: What is ETF

Definition:

ETFs are Exchange traded funds. They track an index, a commodity or a mix of assets like the index fund. ETFs like stocks are traded during the day in the exchange. The return on investment depends on the rise in the index or the commodity value. In some sense the ETF is like a stock, as they are traded in the exchange on real-time basis. In another sense they work like Mutual funds as the underlying asset comprises of a set of stock (like the nifty or a commodity like gold).

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Equity Linked Savings Scheme (ELSS)

Labels: Equity Linked Savings Scheme (ELSS)

Among various avenues of investments in capital market mutual funds are prominent investment options for investors across the globe. There are different types of mutual funds prevailing in the market which broadly can be classified into Equity, Debt and Balanced mutual fund. A mutual fund with certain terms and conditions like lock in period, income tax benefits etc. is known as ELSS or equity linked savings

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Why and Where Should NRIs Invest in India?

Labels: Why and Where Should NRIs Invest in India?

Overview on Indian economy:-

India's economy ranks well (within top 10) when it comes to purchasing power parity or the gross domestic product of the nation. India was always a nation with good economic status in history even before Christ except for the period between 1700 and 1950s. In present day scenario with technically skilled manpower resources, natural resources and a supporting system with political and legal stability, India stands as an

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Investment Options in India

Labels: Investment Options in India

India Growth Story

India has become one of the fastest growing economies. Investment growth is eventually linked to the growth of the economy. So most of the investors look for emerging markets where the growth rate is higher than the developed economies. As India is also a part of emerging market, most of the investors come with a question in mind "

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Systematic Investment Plan (SIP)

Labels: Systematic Investment Plan (SIP)

What is SIP?

Systematic Investment Plan (SIP) is an approach to investing small amounts at regular intervals rather than investing lump sum amount at one time. Considered to be the safest way to invest into Equity Markets by going the SIP route, Investor is not trying to capture the Highs and lows of the market, but trying to average the cost by investing

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Basic Guidelines for NRIs Investing in Shares

Labels: Basic Guidelines for NRIs Investing in Shares

Indian stock market is one of the largest markets in the world. The performance of stocks in India has caught the eye of many a foreign countries, especially during the financial crisis that rocked the globe few years ago. With reforms in FDI from time to time, there has been a rapid increase in number of Non Resident Indians willing to invest in the Indian stock market.

Basic requirement for an NRI investing in shares

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What is Portfolio Management?

Labels: What is Portfolio Management?

The financial industry today offers a gamut of investment options to the common man. There is so much information available on various products and services that, very often it leaves the common man confused as to the choice of investments. Most often an investor finds himself inadequate to perform the task of managing his own investments due to lack of knowledge, time, education, foresight and resources. This scenario gives rise to the services of an entity that provides professional portfolio management

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How to Calculate Net Present Value (NPV)?

Labels: How to Calculate Net Present Value (NPV)?

Net present value is a summation of a series of future cash flows expressed in present values. It is a tool used to assess the viability of an investment done during a period. Net present value takes into consideration both, investments done and revenues generated during a period of time. If the NPV is positive (i.e. greater than 0), the project is viable and if it is negative (i.e. less than 0), then it is

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Short Term Investment Options

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Need for Short Term Investment

For the pressing expenses that are expected in near future, short term investments are the best option. This also works as an alternative for the traditional savings account as the savings account give lesser rate of interest than other short term investment options. It can also be chosen as the supplement for the retirement income.

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What are Sector Funds?

Labels: What are Sector Funds?

Sector funds are those mutual funds or ETFs that invest in a single sector like Information Technology, Telecommunications, Pharmaceuticals, etc. In this type of investment there is very little or no diversification.

The purpose of sector funds is to take advantage of a growing sector. So it is important to understand the various sectors and the trends in their growth. Exiting at the right time is crucial to avoid loss. If you are holding a wrong sector at the wrong time it

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Company Fixed Deposits in India

Labels: Company Fixed Deposits in India

Non banking financial companies in India:-

Apart from banks there are companies in India that accept money from general public for a fixed term and pay interest. These companies are authorized by the Reserve Bank of India to perform these tasks under specified regulations of RBI. However RBI does not guarantee on any sort of transactions or trades entered into with these institutions. In other words the institutions are not actually backed by the

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Benefits of Systematic Investment Plan (SIP)

Labels: Benefits of Systematic Investment Plan (SIP)

Once you decide to keep aside a portion of your earnings for a prosperous future of your loved ones and yourself, nothing can be better than starting a Systematic Investment Plan popularly referred to as SIP.

SIP is an investment tool that helps you to save regularly in small portions. It can be identified as a recurring deposit in a post office or a bank that demands you to

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Basic Investment Principles for Beginners

Labels: Basic Investment Principles for Beginners

Investment is like planting a tree today so that in future you and your family may be able to enjoy its fruits and also be able to rest in its shade comfortably. You all know how important it is for you to provide financial security to your family and yourself.

It is needless to say that all the hard work and effort

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Investment &Portfolio Diversification

Labels: Investment &Portfolio Diversification

The famous phrase "Never put all your eggs in one basket" holds very true in case of your investments too. Portfolio diversification is a tool or a technique that helps you minimize your risk by investing in different schemes and plans.

It's just like if you put all your eggs in one basket and if it drops, you may lose all of them. Similarly, if you invest all your savings in a particular plan or

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Why is Long Term Investment Important?

Labels: Why is Long Term Investment Important?

Long Term Investments are those when you hold your stock, assets, bonds etc for a duration which is more than a year, may be ten years or something that you intend to hold for even much longer. If you are the one who is not running after quick returns then long term investments are your cup of tea. Long term investments grow substantially in good number of years and give you higher returns in the long run.

However, long term investments demand a high level of commitment,

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PAN Card - How to Apply, Documents &Reapplication

Labels: Documents &Reapplication , PAN Card - How to Apply

Permanent Account Number or PAN as it is popularly known is a unique ten digit alphanumeric combination. It is not only unique but also permanent as the name says which means that it remains the same even if there is a change of address within the state or inter-state.

All the juristic entities that can be identified under the Indian Income Tax Act 1961 need to own a PAN Card. In other words it serves as the most important

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Things to Know Before Investing in Mutual Funds

Labels: Things to Know Before Investing in Mutual Funds

Mutual Funds are a pool of funds from a number of investors who wish to purchase securities. It is a professionally managed investment tool by way of which investors collectively invest mostly in open-ended funds. The professionals who manage these funds aim at turning the small deposits of earnings of investors into capital gains and incomes for the investors.

The year 1963 marked the onset of Mutual Funds in India with the

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Where to Invest for Retirement?

Labels: Where to Invest for Retirement?

Just waking up one day and thinking of investing for retirement would not serve your purpose. Retirement Planning is a well planned process and it needs to be done very diligently. It is important for you to invest your savings in a way that they turn to be fruitful to you than being futile when you enter your golden days.

Retirement Planning should not be neglected and it is important to take

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Best Ways to Plan for Retirement

Labels: Best Ways to Plan for Retirement

Understanding Retirement Planning

Retirement Planning refers to a process of saving money for the time when the paid work comes to a halt. It is the process of planning and analyzing your future monetary needs and the source from where you can earn that.

You have to identify your expenses, sources of income, manage your assets and make apt arrangements for future cash inflows. How will you spend your time

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Advantages and Disadvantages of Investing in Gold ETFs

Labels: Advantages and Disadvantages of Investing in Gold ETFs

What is Gold ETF? – Exchange Traded Fund (ETF) is a kind of investment fund that is traded on stock exchanges. An index like a bond index or a stock index is tracked by most of the ETFs.

An ETF or a mutual fund that puts in money only in gold bullion and gold producing companies are called Gold ETFs. It is an open-ended mutual fund scheme and money collected from all investors is invested in gold. These funds are passively

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Important Points to Know About EPF

Labels: Important Points to Know About EPF

EPF stands for employee provident fund. It is compulsory for salaried people working in organisations that are registered under the Employees' Provident fund Organisation (EPFO) to contribute 12% of their Basic +Dearness Allowance in EPF; it is a very good saving tool. The advantages and other important points to bear in mind about EPF are discussed below:

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Things to Remember While Selecting Your Financial Advisor

Labels: Things to Remember While Selecting Your Financial Advisor

India is one of the countries with fast growing economy. This has made the country's financial scene extremely dynamic. Therefore, financial planning has become a specialised need of the hour. This need has led to mushrooming of financial advisors.

Caution has to be exercised before choosing the financial advisor and there are a few parameters that will help in checking the credibility of such a

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Gold Jewelry Schemes in India - Things to Know

Labels: Gold Jewelry Schemes in India - Things to Know

Gold, the word itself triggers beautiful, magnificent and marvelous pictures of ornaments made from the yellow metal which any lady would die for. Gold ornaments give a grand & glorifying feel during weddings, functions and festivals. But going by the present scenario and increase in the prices of gold, it seems that this most sought after metal is getting out of reach of most of the people.

With the steady increase in gold prices, buying gold jewelry is

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Common Mistakes to Avoid in Personal Finance Planning

Labels: Common Mistakes to Avoid in Personal Finance Planning

Financial planning involves a complete understanding of one’s financial needs and future goals. Once these are established it is easy to finalise on a comprehensive solution. In the journey towards securing ourselves financially there are some common mistakes that we commit. Some of the mistakes to avoid and the solution

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Rajiv Gandhi Equity Savings Scheme (RGESS) 2012 - Things to Know

Labels: Rajiv Gandhi Equity Savings Scheme (RGESS) 2012 - Things to Know

Rajiv Gandhi Equity Saving Scheme (RGESS) is a new equity tax advantage saving scheme introduced for the first time equity investors in India. This scheme was announced in the 2012-13 budget by the Finance Minister of India.

This scheme has been floated specially for individuals who have never invested in stocks but going by the experts the irony is that it is quite a complicated and

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Good Investment Options for 2014

Labels: Good Investment Options for 2014

We all make investments and it goes without saying that investments are the tools that provide financial security to us and our loved ones. Investment is like a tree that you plant today so that in future you and your family will be able to reap its fruits.

Earning money alone doesn't solve your purpose. It is important for you to invest your earnings in a way that they churn out capital gains. In future these capital gains would lead to further growth and thus giving you the desired standard of living,

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Post Office Savings Schemes at a Glance

Labels: Post Office Savings Schemes at a Glance

Post Office has long served as the backbone of communication and small deposits. For more than 150 years the department of Posts has played a pivotal role in facilitating communication throughout the nation thereby aiding in socio-economic development of the country.

Post Offices offer varied services. Their work is not just restricted to delivering mails. They accept deposits, provide retail services like sale of forms, bill collection

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How Can NRIs Invest in Indian Stock Market?

Labels: How Can NRIs Invest in Indian Stock Market?

Going by the Foreign Exchange Management Act (FEMA) 1999, Non-Resident Indian (NRI) is a person who is residing outside India but is either a citizen of India or is a Person of Indian Origin (PIO). Indians putting up in overseas find tremendous scope for investment in India as the country is rapidly growing. They have always been allured to put in their money in the Indian markets. NRIs can make investments in India through bank deposits, real estate as well as

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Post Office Savings Scheme for Senior Citizens

Labels: Post Office Savings Scheme for Senior Citizens

While you are heading towards your golden days it is always advisable to take moderate or low risk when you plan your portfolio. It is also important to have some replacement for your monthly salary that you were earning while you were in service.

For all senior citizens, Post Office offers two schemes – the first one is Senior Citizen Savings Scheme (SCSS) while the other the Post Office Monthly Income Scheme (POMIS). Senior Citizen Savings Scheme (SCSS) is a five year scheme

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Post Office Monthly Income Scheme (MIS)

Labels: Post Office Monthly Income Scheme (MIS)

If you are looking for a decent capital gain with a secured investment option then Post of Monthly Income Scheme (POMIS) may end your search. Generally, we end up parking our funds in fixed deposits and in other debt investments plans but POMIS promises better benefits as compared to others. Lets have a look at what POMIS is, how it functions and what all it offers.

Post Office Monthly Income Scheme plan is one of the many investment options offered by Post Office in India. Apart from delivering mails, post office offers a bouquet of services that include sale of forms, bill collection, savings schemes,

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Opening a PPF Account in India

Labels: Opening a PPF Account in India

Basic Rules Governing the PPF Account

PPF stands for Public Provident Fund and it is a long-term debt investment product. More often than not, this is used for the purpose of tax saving. The added advantage of PPF is that it is a risk-free investment option, though there is a lock-in period of 5 years. If any loan is outstanding the loan amount will be deducted from the withdrawal amount.

Where can you open a PPF account?

A PPF account can be opened in any head post office, general post

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Proposed PF Rule: Important Things to Know

Labels: Proposed PF Rule: Important Things to Know

Current Rules: The current PF rules state that 12% of the basic salary that a person earns will be deducted from his income as Employee provident fund. Remember that the company contributes an equal amount on behalf of the employee. Before we proceed to understand the new proposed rule it is imperative that one understands what constitutes the basic salary.

As per the EPF rules, 'basic wages' includes all emoluments paid to the

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What is American Depositary Receipt (ADR)?

Labels: What is American Depositary Receipt (ADR)?

A brief introduction

Before we hit the topic I would like to introduce you to a couple of terms which is so popular yet so vague – negotiable security. A negotiable security can be defined as one that may be freely bought, sold or transferred. Coupons, treasury bonds, stocks are all examples of negotiable security.

The second term that you must be familiar with is the DR or the Depositary receipts. These are negotiable securities that are traded in a foreign market. This is done to enable investors to buy foreign stocks without going through the hassle of

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Easy Ways to Buy or Sell a Mortgaged Property in India

Labels: Easy Ways to Buy or Sell a Mortgaged Property in India

Buying a property from the builder vs. buying a resale property:

These are the two options available to a home buyer in today's market - buying a mortgage free property or a property with balance loan. There are advantages and disadvantages in both cases. Buying directly from the builder will ensure that you get a price advantage, while buying from a registered owner will ensure an easy loan disbursement as the property would have already been verified by the bank.

Added to this, the property would be complete in all respects and the locality would already have residents living. Most of the builders incorporate facilities like club house, outdoor courts, etc. which are included in the last phase of completion. These facilities take some time to become operational. Buying a house that is

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Know About Hidden Costs While Buying Property in India

Labels: Know About Hidden Costs While Buying Property in India

All eyes dream of owning a home. The decision of buying a house is one of the most important ones as it not only involves a lot of money but has many emotions attached to it as well. For majority of the people, all their dreams and savings get invested when they plan to own a house.

At the first go the house that you plan to buy may look manageable but after buying it you realize there are many other costs also involved. It happens that the payment varies with what you might have calculated. Actually, your calculations are done by multiplying the cost per square feet with the total area. But this is not what you actually have to pay.

There are some other costs such as registration cost, stamp

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Tax Liabilities for NRIs Investing in Gold ETFs

Labels: Tax Liabilities for NRIs Investing in Gold ETFs

Gold Exchange Traded Fund (ETF) is a type of fund that is traded on stock exchanges. An index like a bond index or a stock index is tracked by most of the ETFs. Any mutual fund or ETF that invests money only in gold bullion and gold producing companies is referred to as Gold ETF. Gold ETF is an open-ended scheme wherein money that is collected through all willing investors is put in gold. The management of these funds is done passively and the returns generated are quite close to the returns

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Five Easy Ways to Improve Your Savings

Labels: Five Easy Ways to Improve Your Savings

Saving is only a matter of habit. If you get into it you can be your own teacher. If you don't, the world around you is not enough to teach it to you.

Nevertheless, if you have decided to save and do not know where to start this article may just be right for you. The first mantra in money management is, "A penny saved is a penny earned"!

It is not only important to start saving when you start

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Best Pension Plans for Non Resident Indians in India

Labels: Best Pension Plans for Non Resident Indians in India

For Non-resident Indians planning to settle down in India, it becomes mandatory to plan their retirement in advance. In doing this, they have to bear in mind the future value of money, calculate their approximate expenditure and plan their lifestyle. Pension plans are a good option for them to start planning their retirement. In this article the features of few good pension plans are discussed.

SBI pension plans:-

SBI start smart:

This is a onetime premium

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Children's Education Policies for Non Resident Indians

Labels: Children's Education Policies for Non Resident Indians

Children's education plan:-

Securing the position of a parent means a person is blessed with joy of having a child and at the same time responsibility of building a life for the child with good education. These factors will have definite influence over an NRI parent. NRIs work abroad and tend to be more concerned about their

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What is Endowment Plan?

Labels: What is Endowment Plan?

An endowment Plan is designed to provide a lump sum amount after certain specified term or death of a person. The insured gets the sum assured along with bonus and guaranteed additions that accrues during the term.

Endowment Plan Meaning

Endowment plan is a type of life insurance coverage which is

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Term Insurance Policies for Non Resident Indians

Labels: Term Insurance Policies for Non Resident Indians

Overview of Term insurance policies in India:-

The word term insurance becomes quite confusing to understand when it is contradicted to its counterpart 'the whole life insurance'. Many companies also use the word 'term assurance' to these policies. In India, the word term insurance refers to a policy that provides financial cover by assuring an amount for the life of a

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Travel Insurance in India

Labels: Travel Insurance in India

Overview

Travelling used to be a hobby that was pursued to break free from work stress. But in today's fast paced professional life, travel has become a compulsion and hence travels safety a necessity. Travel insurance is the insurance that is anticipated to cover the losses if any that is incurred while travelling. A comprehensive travel Insurance now-a-days includes baggage loss/delay and such facilities as

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Best Pension Plans in India

Labels: Best Pension Plans in India

Overview on pension plans in India:-

Pension schemes in India can be broadly classified into

Policies under government sectors and private sectors, provided to their employees

Policies purchased by individuals from insurance companies

Policies under social groups

In these schemes pension plans provided by insurance companies are

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Life Insurance Policies in India

Labels: Life Insurance Policies in India

Insurance forms a critical part in our lives these days. Insurance investment is seen as an added security to you and your family in later years. When you buy an insurance policy you are giving protection for your family even when you no more exist on this earth. To meet the demands of people from various walks of life there are different life insurance plans. Read on to know more on this.

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SBI Pension Plan for Non Resident Indians

Labels: SBI Pension Plan for Non Resident Indians

A quote by Mr. Rodriguez states that 'When a man retires, his wife gets twice the husband but only half the income'. This quote only goes on to prove that retirement is the period of life when a person gets to explore a lot more about himself and his loved ones. While the first part is in light vein, the second part of the quote brings you back to reality.

Non Resident Indians who travel around the world and work round the clock would always desire to have a peaceful retired life. The insurance companies in

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Bancassurance in India

Labels: Bancassurance in India

There was a time in the past when insurance policies were meant for a small part of public who were financially strong. Today the scenario has completely changed wherein insurance policies reach every person in almost every corner of our nation. This change in the financial horizon was ushered in with the birth of bancassurance in India. Banks which were meant for deposits, loans and transactions are allowed to provide

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Single or Regular Premium, Which is Better?

Labels: Single or Regular Premium , Which is Better?

Vinay works for a tyre industry in Hyderabad. He is in his mid 30s and is planning to buy a life insurance policy. He is expecting a lump sum amount from a deposit account that matures in few months. Currently he is in a dilemma whether to go for single premium policy or the one that has regular premium. What should he do now?

In a very general perspective the choice to pay premium will be

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New Pension Scheme in India

Labels: New Pension Scheme in India

'Pension' the word would create a sort of consciousness to every 30 plus year old working person sooner or later in his life. Pension is one of the major concerns to governments when it works in the direction of providing a secure life to its senior citizens. Indian government has arrived at a solution named New Pension Scheme as a step towards securing the post retirement life of

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Why Do You Need Insurance?

Labels: Why Do You Need Insurance?

Insurance is a risk management tool. It is preparing you for uncertain losses that may occur in future due to illness, damage or death. It is a kind of a guarantee of compensation for a specific loss by a company in return for payment.

It is like you have transferred your loss or risk to someone in

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Understanding Life Insurance

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Meaning and Importance –

A contract that is made between an insurer and the insurance policy holder when the latter pays a fixed premium to the insurer and insurer ensures to give benefits of the same to the insured upon his death. However, benefits may not be restricted only to the death of the insured. The benefits may also occur in case of critical illness or terminal illness depending upon the type of contract both the parties have

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Benefits of Term Life Insurance

Labels: Benefits of Term Life Insurance

What is Term Life Insurance?

Term Life Insurance is a plan that offers coverage at fixed premiums for a limited period of time. A relevant term forms its key feature. After the fixed span expires, you will not be in a position to claim any benefits or the coverage. Once the term lapses, you can make any of the two choices, either forgo the policy or obtain a new one with new premium and new term. In the event of unfortunate death of the

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Important Things to Know About Home Insurance

Labels: Important Things to Know About Home Insurance

What is Home Insurance?

Home insurance is also referred to as Homeowner's Insurance. It is one of the kinds of property insurance that provides insurance to private homes. It is a property insurance that provides protection to your home or possessions in the home against damages. It also extends itself to provide liability coverage against accidents in home or on property.

However, protection against some events like floods, earthquakes

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Health Insurance Portability in India - Things to Know

Labels: Health Insurance Portability in India - Things to Know

Meaning – Before we move on to Health Insurance Portability it is important for you to know what health insurance is. Health Insurance is a coverage that is given to you by the insurance company in order to meet out your future uncertain medical expenses. This may work in two ways. Either you get the reimbursement from the insurer and you, in turn, pay it to the care provider or insurer may directly settle the bill with the care

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What is Term Insurance Plan and How to Choose One?

Labels: What is Term Insurance Plan and How to Choose One?

What is Term Insurance Plan?

When you pay a fixed amount of premium for a limited fixed span of time it is called a term insurance plan. It has a relevant term attached to it. Once the fixed period expires, you are not longer entitled for coverage at the previous rate of premiums unless you obtain a new coverage for new premium and term. You can also forgo the coverage.

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Calculating Your Life Insurance Requirement

Labels: Calculating Your Life Insurance Requirement

Life Insurance plays an essential role in your life. It is not only important for today but serves as a financial back up for your loved ones after you. Life Insurance is provided to you by an insurance company when you pay a fixed premium to the firm and the firm in return ensures to provide you with the benefits of the same in the event of your unfortunate demise.

It shields your family from uncertainties that life has to offer. It also

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Things to Remember While Claiming Your Travel Insurance

Labels: Things to Remember While Claiming Your Travel Insurance

You cannot predict future and the occurrence of uncertainties. While you are off for a long relaxing holiday, things may turn out to be bitter. It is then that travel insurance comes into play. It is an attempt to reduce travel related risks and make your trip a memorable one. Travel Insurance is an insurance cover that decreases the cost and covers up the risk of any unforeseen unpleasant event that may occur while you are on a tour be it domestic or international. Primarily two kinds of expenses are covered in travel insurance

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Types of Health Insurance Cover in India

Labels: Types of Health Insurance Cover in India

You all are aware of the fact that we cannot correctly and accurately predict the future. You cannot tell what future holds for you but you can be wise enough to provide security to your family and yourself from the unforeseen events that may take toll of your health.

Health Insurance is a type of insurance cover that guards you and compensates you for any medical expense that occurs in future. It is a coverage given to you

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Importance of Life Insurance for NRIs

Labels: Importance of Life Insurance for NRIs

India is presently one of the fastest growing economies in the world with approximately 6-8 percent of annual growth as revealed by various credit agencies and research papers. When we compare it to other economies it seems to be better as other countries are either on the verge of normal growth or there is no growth at all. This serves to be an attraction for various NRIs to invest in the

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Step by Step Guide to Buying Life Insurance in India

Labels: Step by Step Guide to Buying Life Insurance in India

Opting for a life insurance is like buying peace of mind and security for your loved ones and yourself. It is like a contract that is built between you and your insurance provider in which you pay a fixed sum of money to the insurance firm and they provide you with the benefits upon your uncertain and unfortunate demise. Life Insurance comes handy especially when you are the sole bread earner of the family and you have

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How to Choose the Best Health Insurance Plan in India?

Labels: How to Choose the Best Health Insurance Plan in India?

Health Insurance is a coverage that is offered by the insurance company to individuals or groups to meet their uncertain medical expenses. It is a contract between individuals and the insurance provider that states that the insurance provider would compensate them for any medical expense that they incur in future against payment of a certain premium.

The compensation is worked out in two ways. Either you get

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How Much Health Insurance Cover Do You Need?

Labels: How Much Health Insurance Cover Do You Need?

It becomes difficult to address something like how much health insurance cover do You Need? You are an individual, a separate entity and somehow there cannot be a universal rule that can say that you need Rs 5 Lacs or your friend needs Rs 3 Lacs of health insurance cover.

Your responsibilities, requirements, means to meet the

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Mediclaim Policies: Important Features to Look Out For

Mediclaim Policy is a type of contract between the insurer and the policy holder wherein the policy holder pays a fixed sum to the insurer and he, in return, promises to bear the money spent by the policy holder during hospitalization.

When you opt for a medical insurance plan you receive a reimbursement for the hospitalization charges that have been incurred and the

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Choosing the Best Insurance Plan for Your Child

Parenting brings immense pleasure and joy to us. Along with this it brings a sense of responsibility, which can sometimes seem scary. The best way to avoid such scares is to plan for things which are predictable and then deal with situations for which we are not prepared.

One situation that we can always prepare ourselves for is the

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Reviving a Lapsed Life Insurance Policy

Meaning of Lapsed Life Insurance Policy –

When you fail to pay the premium of your life insurance policy within the given timeframe (including the grace period), your life insurance policy lapses. When your policy lapses the benefits attached to it turn null and void. This means that the financial benefits that the policy was intended to provide to the dependants would not be given in the

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How to Get the Best Car Insurance Deal?

Almost 15 years ago buying the four wheeled machine was a dream out of reach for most Indians. Thanks to the competition in the market and the globalisation of Indian consumer market, buying a car is longer a privilege of the rich people. With Tata introducing the "aam admi's" Nano, cars have eaten into the two wheeler market. This has indirectly given rise to competition in car insurance market too; before you opt for

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Common Questions About Term Insurance

We all know that insurance occupies a prominent place in our lives. We talk of insurance, buy insurance, discuss with our family and friends about various kinds of insurance and their benefits, study and research a lot before laying our hands on insurance policies.

Term insurance is relatively new to most of the Indians so the frequency of questions would certainly be high as compared to other types of

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How to Choose the Best Life Insurance Plan

It is needless to talk about the importance of a Life Insurance Plan. Life insurance is necessary as it dilutes your risk and secures you and your family preparing you to face the uncertainties that life throws at you.

When we talk of a Life Insurance Plan, we are talking about a contract that is formed between an insurance policy holder and an insurer when the policy

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LIC Policies - Things to Know

When we talk of Insurance policies, the first thing that clicks our mind is the Life Insurance Corporation of India (LIC). You might have heard about various LIC policies with familiar sounding names - LIC Jeevan Tarang, Jeevan Saral, Jeevan Anand etc. These are policies that many of you might have in your name but interestingly many of us do not know how these policies function.

Working of LIC Policies

Many you might be having these LIC policies in your name or in the

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Home Loans for NRIs

Non Resident Indians:-

People from India have moved to different corners of the world to work for different organizations, study or business purpose. These organizations include MNCs, branches of Indian government companies abroad, government bodies of UNO etc. People who are living abroad for certain period of time for purpose of employment or business or studies while he/she holds citizenship of India can be called as NRIs or Non Resident Indians. IT department, RBI and other government bodies of India have

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Consumer Durable Loans

You can build your happy home with your favorite TV, refrigerator, washing machine, air conditioner, furniture and all other essential commodities that improve the quality of your life. But to bring all these things to your home you need money. However due to your increased commitments you may not have the required amount to purchase all these

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What is E-Commerce?

As people are getting more tech savvy, usage of internet is also increasing day by day. According to a study conducted by "India Online 2011", nearly 65 million people are using internet in 2011 when compared to 51 million in last year. This growth indicates the sustainability of technology. E-Commerce is also a part of this technology that makes trading easy and is just a mouse click away.

E-Commerce, also known Electronic Commerce consists of

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Microfinance in India

Microfinance- The Need:

Microfinance can be described as an umbrella under which financial services including microcredit are provided to the low income group. The need for the unfolding of microfinance began in the developing nations more than 30 years ago. With organized financial sectors like the banks not having anything on their platter to offer

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What is KYC (Know Your Customer)

Know Your Customer (KYC):-

Finance is one of the basic sources of every act in the world today. Institutes that bank money or trade financial instruments or, are into any other relevant business the institute does have a set of responsibilities in knowing their customers. This set of responsibilities based on need of a country led to the birth of KYC.

KYC will be a set of procedure that an individual, a group or

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What is Reverse Mortgage?

Concept of reverse mortgage:-

The word 'reverse' in the term reverse mortgage explains the idea of this loan. A property (house) owned by a person is mortgaged to get a loan amount in lump sum or in installments over a period of time. The loan borrower will be using the property during the loan term while he is not bound to pay any amount for the loan. The property is

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Home Loan Prepayment

A loan is a useful financial vehicle that gives birth to many a middle class dream. Home loans among such loans are one of the biggest commitments from common man's perspective in India. With long tenures these loans, sometimes outlive the individual.

There is one option through which an individual can bade adieu to

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NRI Car Loans in India

Overview of Car loans:-

Indian roads are on the verge of transformation in time, from bullock carts, cycles, bikes to the four wheeled comfort version called cars. It is estimated that on an average, 200 to 300 cars get registered per city every day in important cities of our nation. With this being the trend a person who is working abroad may want to buy a car for

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Personal Loan - Advantages &Disadvantages

Personal Loan is a type of unsecured loan that is given to a consumer to cater to any of their personal needs like buying a vehicle, home appliances, marriage or for renovation etc. It is given after verifying your ability to pay, particularly the source of income and also as per your credit history.

Some processing fee is charged and the amount according to

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Different Ways to Save on Your House Loan

Who knows it better than you that building a house has become a very expensive and tedious task in today's scenario. We all opt for home loans when we plan to give a shape to our dream home. Home loans are available at fixed rate of interest for a fixed time and can be opted through any of the banks or financial institutions. There are a number of

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Advantages of Pre-approved Home Loan

What is a Pre-Approved Home Loan? Pre-Approval is referred to as an evaluation of a borrower who has the potential to borrow funds and will be in a position to pay it back with interest. This evaluation is done by the lender. The lender glances at the income and expenditure of the borrower and draws conclusions about whether to

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Home Loan Approval &Disbursement Process in India

In today's scenario where cost of everything essential for survival is witnessing a steep upward movement, dreaming of a home or property has also become a difficult task. You are well versed with the fact that buying a property or building a house is a matter of extensive research and managing finances add on to

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Guide to NRI Education Loan

The cost of education especially higher education has seen a steep rise in recent times. The growing cost of higher education has, thus, led financial institutions/banks to offer education loans. Education loan is offered by both public and private sector banks at competitive interest rates in order to support

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Education Loan for Vocational Courses

Vocational Education, also termed as Vocational Education and Training (VET), helps prepare you for specific trades, careers at various levels like crafts, technician and also fetches you professional positions in fields of medicine, nursing, accountancy, engineering, law, pharmacy etc.

To be more specific, these courses form

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Getting Pre-approved for a Home Loan in India

Meaning of Pre-approved Home Loan – Pre-Approved Home Loan can be defined as the evaluation of a person who wishes to borrow money for buying a house by a lender. This evaluation helps the lender to know the financial history and credit worthiness of the borrower and he is able to ensure whether the borrower would be

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Process of Loan/Debt Settlement

Meaning of Loan Settlement – Loan Settlement is also referred to as debt settlement, credit settlement or debt negotiation. In this the creditor settles on a debt reduction considering it as full and final settlement given to him by the debtor. Loan settlement is an approach to debt reduction in which the debtor and creditor agree on a

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How to Get Your Home Loan Approved

While you dream of your beautiful home it is important for you to plan your finances before hand and home loan play an important role in your plan to purchase a property.

Home Loans can be availed at attractive rates from banks and other financial institutions. It is, however, important for you to analyze your credit worthiness when you plan to apply for a home loan. The application for home loan that you plan to

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Guide to Different Types of Home Loans in India

We all dream of a place of our own. You also have a sketch of your beautiful home close to your heart. You have also seen a dream of owning your dream property and converting it in to a perfect home. Home Loans offered by different banks and financial institutions have made these dreams more attainable and realistic.

Although the cost of living has gone up significantly yet

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Personal Loan Vs Gold Loan: An Analysis

Meaning of Personal Loan and Gold Loan –

A personal loan is the credit that is given to you after analyzing your credit worthiness. There is no restriction on the usage of the credit advanced to you and can be used for any purpose like, for paying of other debts, marriage, for some urgent purchases or maybe holidays. It is, in a way, an unsecured loan and does not require any collateral security.

Gold Loan, on the other hand, is a secured loan that is

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Home Improvement Loan in India

Loans help you achieve your dreams without burning a hole in your pocket as they come with modest interest and monthly installment mode (EMIs). Loans serve as easy cash that you can avail and get your job done easily and pay back the amount in installments. Home improvement loan is a type of home loan that is offered by the

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Understanding Home Equity Loan

What is Home Equity Loan?

Home Equity Loan is a type of consumer loan that is secured by a second mortgage. This loan allows you to borrow credit against your equity in the home. The basis of this loan is formed on the difference between the equity of your home and the

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Education Loan in India - Things to Consider While Applying

What is Education Loan?

With the cost of higher education increasing rapidly, education loan has become quite popular in recent years. It is also popularly known as Student Loan. It is designed to extend financial support to students who wish to pursue higher education. Education Loan helps students to pay off university tuition fees, living expenses, books, boarding and lodging etc. Education loan varies from other

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Loan Against Securities Meaning

Banks and financial institutions keep coming with various ways to fulfill the monetary requirements of each and every individual as per their credit worthiness and paying capacity. One step in this direction was the introduction of gold loan. Another one has been Loan against Securities, popularly referred to as LAS. Under "Loan against Securities", loan is

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What is Gold Loan

As the name suggests this is the loan given against gold. Many nationalized banks, private banks and other financial companies offer this loan at attractive rates. Many go for this loan for short period to meet the requirement of their children's education, marriage and other financial problems in the family. And others think

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Need for Home Loans

Few decades back, buying a home was not a very easy task as there were hardly any lenders available to loan the ever increasing astronomical lump sum of money. However, with time, the rising property prices and the burgeoning housing finance market in the country, made the phenomenon of the home loans easy and

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Types of Home Loans

The dream of buying one's own home is not an impossible task in India-thanks to the burgeoning housing finance market in the country. There are umpteen numbers of banks and HFCs in the country which have come up with attractive home loan plans in the country. Keeping in mind, the difference in

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Home Loan Process

Owning a home gives a feeling of stability in life. However, with the steep rising prices of property in India, buying a house at a go is not a very easy task. However, this process has been made considerably easy by the home loans being granted by the umpteen numbers of Housing Finance companies and

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How to Choose Housing Finance Company

Once you have figured your requirements, your resources and your future plan, the next most crucial step would be choosing the housing finance company (HFC). It is very important to choose the financer with extreme care and proper contemplation. You must check out its past track record as you are planning to enter in to

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How to Choose a Home Loan

There is no common formula to opt for a home loan. What may be good for you may not be good for someone else and what may not be good for you can prove to be an excellent plan for others. So, basically choosing the best loan plan means that you will have to explore that which home loan plan fits best to your needs in a

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Information on Home Loans

Buying a home is dream for many people. Owing to the rising price of properties, it has almost become impossible for an average earning person to buy a home on a lump sum payment. Therefore the concept of home loan has come in trend. There are plethora of housing finance companies and equal number of banks that offer home loans these days. The task of selecting

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Guide To Borrowing From A Licensed Money Lender

Sometimes getting a loan becomes inevitable especially when there is a pressing financial need. Whatever your reasons are it is essential to borrow from a licensed moneylender. Therefore before borrowing you need to verify whether the lender is licensed or not by counter checking with the list of licensed moneylenders as provided by

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Money Lenders In India

There are several money lenders in India ready to offer you financial assistance whenever you face emergencies. You can turn to them for loans to cater for any of your needs. All money lenders are unified under the Moneylender's Association of Singapore. It is the only

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The Importance Of A Good Credit Score

Many don't realize it but a credit score is very important in a person's financial life and can make the difference in other areas such as being approved for a car loan, a credit card or mortgage. Having a good credit score is also important when it comes to your home and auto insurance premiums. It can also affect

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Top Reasons To Avoid Payday Loans

Payday loans are usually the loans that everyone runs to nowadays just to get some emergency money. These loans are given to you with the understanding that you will pay for them with your next paycheck. While there is nothing wrong with payday loans per se, you could do better. The loans are not

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What Is An Unsecured Loan?

In simple terms unsecured loans are those that are provided without any collateral. Thus these are sometimes called as good-faith loans. It is obvious that an individual has to pay higher interest rate for such a loan. Moreover, you need to have good credit in order to

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