Thursday, April 24, 2014

Still craving for Tax Free Bonds?

How to buy Tax Free Bonds?
As you may be aware, public issues of tax free bonds came to an end with the end of Financial Year 2013-14. 

And those who have read my earlier blog 'Issues of tax free bonds to end soon' would have noted that the next series of such issues, if any, is unlikely to hit the markets before Nov / Dec 2014.

So what should the investors with surplus money... and interested in tax free bonds... do during this inordinately long gap?

Wednesday, April 23, 2014

Ray of hope for the unfortunate buyers of ULIPs?

Hapless ULIP policy buyer
During the bull run of 2004-2007, ULIPs (Unit Linked Insurance Plans) sold like hot cakes. The booming markets grossly amplified the returns, despite the high-cost structure. Though ULIPs were market-linked products, the word 'insurance' led most policy buyers to equate them to the "low-risk" traditional insurance plans. And the regulatory controls were weak, resulting in rampant mis-selling.

However, the good times for insurance companies / agents... and bad times for the potential policy buyers... didn't last long. 

Tuesday, April 22, 2014

EPFO's journey from apathy to dynamism

EPFO goes Online
Many among us would have experienced the apathy and indifference of the Employees Provident Fund Organisation (EPFO) in the past. Remember the times when we got our PF account statements once in a year? Remember how we had to struggle to get the account transferred to our new organisation after job change? 

However, in recent years we have seen EPFO undergoing metamorphosis from an ugly caterpillar to a beautiful butterfly.

Monday, April 21, 2014

Are you missing out on mind-boggling returns?

Don't miss the MF returns!
In my previous blog I had wondered about the 'Best investment mysteriously ignored by most Indians'.

Well, it appears that many Indians still have reservations about mutual funds. I have received many mails from "ex-investors", who lost money in mutual funds and hence quit. For the present, let's not get into the reasons. I will do a separate blog post on this. 

But I want to emphasize just one thing... 
... if an untrained driver causes an accident, is it the car's fault? 
... if a driver breaks the traffic rules and causes an accident, again, is it the car's fault? 
You are smart enough to guess what I am alluding to...

Thursday, April 17, 2014

Best investment mysteriously ignored by most Indians

Uncover the Truth
> Returns-wise it is second to none.
> In terms of liquidity it almost matches a bank account.
> It is top-rated in terms of tax-efficiency.
> The risk-reward is perhaps the best.  
> From shortest of the short-term needs to the longest of the long-term requirements, it caters to all.

And yet — despite being in existence for now a shade over two decades — a vast majority of the investors do not invest in it.

Wednesday, April 16, 2014

OPD covers are bad for your financial health

Say No to OPD Insurance
A typical health insurance policy, as you all know, provides cover against medical problems that normally require at least 24 hours of hospitalization. 

It doesn't provide any relief against OPD (Out Patient Department) treatments. It also excludes dental treatment, diagnostic tests, routine visits to a doctor, pharmacy bills, eye glasses and such other minor illnesses / injuries. 

Well, the issues may be minor, but the expenses certainly aren't. A family has to shell out decent amount of money every year on many day-to-day illnesses.

Tuesday, April 15, 2014

Don't be fooled by Bonus Shares

Bonus shares are nothing extra
I am sure there isn't a person in this world who wouldn't love to get something for free. As such bonus shares — shares that are given by a company to its existing shareholders totally free of cost — evoke intense joy and euphoria.

Naturally, investors are always on the look out for 'bonus candidates' i.e. companies that are likely to declare bonus in the near future.

Unfortunately, however, bonus shares are a myth like many other myths floating around in the universe of personal finance. (Some more tricks to fool you at 'To Protect Your Money, Don't Read Financial Ads'.)

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