#personal finance

Mutual fund schemes have two options while investing – Growth Plan and Income Distribution Capital Withdrawal (IDCW) erstwhile known as Dividend Plan. Usually, investments in mutual funds are made for long-term wealth creation. However, there are times when investments in Mutual Funds are made from the perspective of regular income. In that case, two options […]

Becoming a guarantor for someone’s loan is a significant financial commitment and carries various risks and responsibilities under Indian laws. Understanding these implications is crucial before agreeing to guarantee a loan. Here are key points to consider, including the risks involved, the possibility of withdrawing from the guarantee, and the impact on family members in […]

I have a friend whose family lends money to local stores at interest rates ranging from 24% to 40% per annum. While this return may seem like a great return on investment, the reality is quite different. The risk of shop owners defaulting or delaying payments is high, which can significantly reduce the actual returns. […]

I have been an NRI living abroad for the past 10 years. I have heard a lot about GIFT city benefits for NRIs, and I would appreciate it if you could elaborate a bit.  The International Financial Services Centre (IFSC) at GIFT City in Gujarat, India, offers several advantages to Non-Resident Indians (NRIs) living abroad. […]

Kabir and Anaya, a working couple and an entrepreneur, want to distribute their assets to their children. But Kabir opted for a Will as a tool of Succession planning, and Anaya opted for a different method, a Gift deed. Both methods exist to help you pass on your assets; you need to choose your method […]

As a freelancer and an entrepreneur, my income stream doesn’t follow any pattern. However, I earn around Rs 20-25 lakh annually, with monthly expenses of about Rs 50,000. I have already saved about Rs 20 lakh. What is the best possible strategy to achieve stable monthly cash flow and my long-term financial goals through mutual […]

Series I of the Sovereign Gold Bond, issued in July 2016, was due for redemption on August 5, 2024. We compared how different forms of gold—such as SGBs, gold funds/ETFs, physical gold, and gold in jewelry form—fared during this period. Remember that every form of gold ownership has its own merits and demerits. Based on […]

I am a DIY investor and have been investing for the last few years. I understand asset allocation, so I divided my portfolio between equity and debt in a 60:40 ratio. Because of good equity markets, my asset allocation is skewed towards equity, with a 75:25 allocation.  Now my doubt is if asset allocation has […]

Deciding between a will and a trust depends on your estate’s complexity, control preferences, and asset distribution goals. For instance, if Mr. Kumar has a straightforward estate with minimal assets and wants to ensure his car and savings are distributed to his children after his death, a will is a simpler and more suitable option. […]

I recently sold my business and have saved around 50-60 lakh rupees, which I’ve invested in a couple of mutual funds. Before starting my next venture, I plan to take a break. My current lifestyle requires about Rs 50,000 per month. What is the best investment product to generate periodic income until I resume earning […]

Remember that story of the chessboard and rice? A wise man presented a chessboard to a king, asking for one grain of rice on the first square, two grains on the second, four on the third, and so on, doubling the grains on each subsequent square. The king, thinking it was a modest request, agreed. […]

The purpose of life insurance is to replace a person’s earning capacity. Life insurance products have gone through a transition over the period. Once considered a savings and investment avenue, it is now considered risk reduction and protection for the family. We should all be happy that this positive change is happening, and people are […]

I am 35 years old and married with 2 kids. I have investments in mutual funds and stocks. I mentioned nominees for both of my investments. Should I write a Will separately? I want my children to get the best education in a good school until they are 18, which cannot be compromised if I […]

The biggest risk to any financial plan is you. This is why the finance industry makes you a ‘risk profile’. But do they really work?

Mutual fund distributors are intermediaries between investors and mutual fund (MF) houses. They earn a commission from the fund house for selling MF schemes to retail investors.  Mutual fund distributors must understand investors’ financial requirements to suggest the most suitable schemes. Investors must also ask the right questions to determine whether the distributor has higher […]

“Investing is a problem that has been solved.” Dave Nadig, a veteran of the US ETF industry, said this on a podcast, and it has been stuck in my head ever since. I remembered this quote because I saw this poll on Twitter (Umm… X. What sort of name is that?). I’ve been thinking and […]

As soon as you get your first credit card or open a bank account, you start hearing people preach about credit scores. And, if you have chosen to be blissfully unaware, here’s a simple explanation.  A credit score is a three-digit number between 300 and 900 that defines your creditworthiness; the lower levels reflect low, […]

You would have likely heard about it from someone or experienced it yourself: a medical emergency strikes, and you rush to the nearest hospital, only to discover your insurer’s network does not cover it. Dealing with upfront payments and waiting for reimbursements can be stressful. To ease the financial burden and speed up the claims […]

Can I stop paying insurance premiums if my savings match the coverage of my life and health policies? The purpose of life insurance is to make good the financial loss that a person would suffer if the earning member of the family passes away. We could bucket this financial loss into three major categories. Any […]

Wills and Nominations, both vital legal instruments, play distinct roles in shaping the allocation of an individual’s assets after their demise. These tools, though aligned in their ultimate goal of asset distribution, comprise unique characteristics within the realm of estate planning and so are often used interchangeably. But, the law identifies their purpose, object, and consequence, and hence, it is important to know the distinction.

“There is no such thing as a free lunch.” You may have heard this famous quote emphasizing the idea that you cannot get something for nothing. This is particularly true when it comes to selling financial products. People could have an agenda and/or an incentive to sell or not to sell a particular financial product to you.

In the year 2020, the government introduced a new tax regime under which taxpayers can choose to pay tax at lower rates. In this article, we compare old and new tax regimes, and help you understand which one could be more beneficial for you by discussing the differences in tax rates, deductions, and exemptions.

While the retirement benefits that we can get from a job or a government have been emphasized for years, retirement planning that we ought to do for ourselves has not received the same level of attention.

Beti ki shadi se bada baap ka kya farz hota hai? A father’s biggest duty is his daughter’s wedding. Two fathers, one spending ₹2.5 Cr and the other spending ₹6 lacs on their respective daughters’ weddings, make this statement in an episode of Made in Heaven on Prime Video. The show is about big fat […]

Keanu Reeves, a Canadian actor and the lead actor in the movie ‘The Matrix,’ was once asked in an interview, “What do you think happens when we die?” His response touched everyone emotionally for a moment – he said, “I know that the ones who love us will miss us.” Now, imagine if that person […]