A Conversation with Insurance Agent

Long-time back I got call from XYZ Insurance agent and the conversion was like this.

Agent :- Sir we have very good Insurance plan with guaranteed return.

Me :- How much? 

Agent :- 5.5% + life cover worth of 20 times of Premium.

Mutual Fund Basics Part 3 - General Terms

In this part I am going to explain the general terms which is used in mutual funds.

1. Fund Category

Funds category determines by the fund’s portfolio. Large Cap Fund :- Invests in large cap company stocks. Mid Cap Fund:- Invests in mid cap company stocks.

Mutual Fund Basics - Part II (Types of Mutual Funds)

In the First Part, I explained about what is mutual funds and their advantages and disadvantages. In this part I am going to explain the basic types of mutual funds. Mutual funds can be categories according to Maturity Period or Investment Objective.

Mutual Funds according to Maturity Period

Based on the maturity period mutual fund schemes can be categories into two types

 1. Open Ended Mutual Funds         

An open ended mutual fund is one that is available to purchase and repurchase continuously. Liquidity is the main feature of open ended mutual funds. There is no maturity date for open ended mutual funds. Investors can buy or sell unit at any time based on NAV which is declared on a daily basis.

Mutual Fund Basics - Part I

A mutual fund is a professionally managed investment scheme that pool money from many investors and invest in market securities. The companies which manage the funds are called AMC (Asset Management Company).

Profits and losses are shared by the investors by the proportion of their investment. AMC allocates units to the investors as per their investment. The value of unit varies daily basis based on the market.

Public Provident Fund Basics

Public Provident Fund is a good saving investment which provides tax benefit and also gives good returns. Many people don’t know about PPF or have very little information. If someone asked me in 2009 about PPF I could not have any answer that time because I also didn’t had any information about PPF.

Public Provident Fund started by government for salaried and self-employed people to encourage the saving habit and by investing in PPF, people can build good corpus for their retirement. In this post I will list down some basic and important points about PPF.

Health Insurance - Points To Understand Before Purchase

Some people thinks that since they are young and living a healthy life they don’t required any health insurance and purchasing health insurance is totally waste of money. But what they do not understand that medical emergency can arise anytime and we should be well prepared for that because medical treatments are getting costlier day by day and it can make a big hole in your savings which could affect your future goals.

One of the best ways to prepare for such situation is to get health insurance for the future medical expenses. Now the question is which health insurance to choose, what the common terms are and how much should be the sum assured. To get these answers let’s try to understand the types of health insurance and there features.