Sanjay Matai, The Wealth Architects

The Most Authentic Guide on Personal Finance and Investments

Words of Wisdom : "A budget tells us what we can't afford, but it doesn't keep us from buying it." ~ William Feather

Tax Planning At The Last Minute (FY 2017-18)

We are barely over two months away from the end of the Financial Year 2017-18.

Hopefully (under pressure from your HR Department), many of you would have completed your tax planning and investments for the year, and feeling relieved. (Though, how smartly it has been done may be debatable).

However, as usual, there would still be quite a few who are yet to begin this annual ritual.

Everyone loves to hate tax. But regrettably there is no escape from it.

What Is Free-Look Period In Insurance Policies?

You would have probably heard about the free-look period with regards to the insurance policies.

In simple terms, free-look period is the time given to you, after you have bought the policy — to request for its cancellation and refund of premium — if you find that the terms and conditions of the policy are not in line with your requirements or prior understanding.

Needless to mention, this free-look period comes with certain procedure and conditions.

Should I Invest In This 'Overvalued' Stock Market?

Firstly, equity is an important asset class to create wealth. If you are not into equity, you must do so ASAP.

Secondly, equity investment requires high levels of expertise and experience. If you are not a stock market expert, you MUST take recourse to the mutual funds (which are managed by 'qualified and professional' fund managers).

Last but not the least, equity investment requires high levels of discipline and patience. If you don't have such qualities, you MUST develop and nurture them.

SIP Or Lumpsum: Which Is The Better Investment Strategy?

There are two ways to invest your money.

One, obviously, is the lump sum investment, wherein you invest your entire surplus amount at a go. For example, making a fixed deposit or buying a single premium insurance policy. (You simply cannot miss knowing the 7 Reasons Why Single Premium Insurance Is A Stupidity.)

Second option is to invest small amounts at regular intervals, over a long period of time. For example, a recurring deposit or a systematic investment plan (SIP) in a mutual fund scheme.

People are often in a dilemma as to which is the better way to invest their money.

For Mutual Funds 'Total Return Index' Is The New Benchmark

As you are aware, mutual fund schemes benchmark the returns generated, against the performance of the index. For example, a large cap fund would compare its performance with that of the Nifty 50 or the BSE Sensex. Likewise, a mid cap fund would benchmark itself against say Nifty Midcap 100.

The idea is to inform the investors, whether the fund managers have been able to beat the markets or not... and if so by how much. This out-performance is known as alpha.

Reason to do so is pretty simple and straightforward:

7.75% Savings (Taxable) Bonds 2018 Make A Debut

Earlier this week, the Govt of India had announced the closure of its hugely popular 8% Savings (Taxable) Bonds, 2003 scheme with effect from Jan 2, 2018.

And now, in its place, the Govt. has introduced the new 7.75% Savings (Taxable) Bonds, 2018 scheme. This new scheme will be open for subscription with effect from Jan 10, 2018.

This was expected for many months now:

Strategic Security System Against Healthcare Expenses

Fact No.1: Health issues are multiplying

Fact No.2: Healthcare expenses are ballooning

Fact No.3: Health insurance premiums are swelling

Result: Even one instance of a serious illness in the family, can seriously and completely erode your net worth. Hence, health insurance equals wealth insurance.

Beware! The matter does not simply end with merely buying a health insurance policy. No. That's just the beginning.

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Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

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