Introduction to Asset Allocation Asset allocation is the process of committing your money in multiple asset classes like equity, debt, cash, real estate, to balance risk and reward. It is a crucial step in the investment planning process, as it helps investors to achieve their financial goals while managing risk. Since asset allocation reduces volatility…
I. Introduction to personal financial planning Personal financial planning, in simple terms, is the process of managing one’s finances to achieve their set financial goals. It includes creating a budget, establishing financial objectives and making sound investment and monetary decisions. Mid-career salaried professionals and their families face a number of financial risks. These include: II….
Estate planning is the process of organizing the distribution of your assets and taking steps to safeguard them after your death. This includes providing for your loved ones and making sure your wishes are fulfilled. It may seem intimidating, but estate planning is a crucial aspect of financial planning that can give you and your…
Term insurance is only a tool to transfer the risk to protect your family members against loss of income due to your death. Find out when you might need it and how to calculate your required coverage.
According to the 2019 Insurance regulatory development authority of India – National health authority joint working group’s report on fraud control: “Fraud shall mean and include any intentional deception, manipulation of facts and/or documents or misrepresentation made by a person or organization with the knowledge that the deception could result in unauthorized financial or other…
Investopedia defines equity funds as “a mutual fund that invests principally in stocks. It can be actively or passively managed”. According to SEBI regulations, an equity mutual fund must invest at least 65% of its assets in equities and equity related instruments. As per SEBI’s categorization there are ten different kinds of equity schemes. These…
Debt mutual funds invest in variously rated debt instruments ranging from sovereign rated to AAA to BBB to junk status and all those in between. According to Investopedia “A debt fund is an investment pool, such as a mutual fund or exchange-traded fund, in which the core holdings comprise fixed income investments. A debt fund may invest in short-term or…
Insurance regulatory authority of India (IRDAI), the insurance regulator, came out with a circular on the 18th of October 2022, directing health insurers to comply and provide cover for mental illness under their health insurance policies. The circular can be downloaded through this link. According to this IRDAI circular: Health insurers must comply with the…
What does purchasing a laptop have to do with financial planning? Ideally a laptop purchase is planned well in advance and done before the current laptop becomes obsolete or too slow/heavy despite upgrades and software tweaks. This allows you to save and plan your cash-flow for a sizeable outgo ensuring you don’t need to incur…
Cash flow forecasting gives a 360 degree view of your personal finances enabling you to prioritise financial goals to meet your present and future financial commitments, needs and wants. What is the need to prioritise financial goals? As per a 2018 spotlight on retirement survey done in India by the Society of actuaries and LIMRA,…