Seven Annuity Options you can consider before opting for a Retirement Plan

Seven Annuity Options you can consider before opting for a Retirement Plan

The value of pension depends on the annuity option that you choose. So, one needs to carefully go through the plans and choose the one that suits his/her requirement the most.

While there are multiple annuity plans are available in India, mostly companies in India provide seven different annuity options to customers. The value of pension depends on the annuity option that you choose. So, one needs to carefully go through the plans and choose the one that suits his/her requirement the most. 

Here under explained seven annuity plans mostly offered in retirement plans. 

1. Annuity with return of premium on Death : 

In this option, the annuitant gets a fixed annuity payouts throughout his/her life. On his/her death, the initial amount paid to purchase the annuity is returned to the annuitant’s nominee.

Experts say this plan is suitable for individuals who have dependents & those who want to leave something behind for their loved ones.  Worth mentioning here is that an annuitant has to pay a higher premium to buy this option compared to other annuity options.

2. Joint life Annuity : 

This is the most popular annuity option opted by investors. Under this option, an annuitant & his/her wife get pension throughout their life. Under this option, an annuity is paid till at least one of the life assured is alive.

This plan ensures that you receive a regular income throughout your life & on death, your spouse will receive an annuity throughout his/her life. Also, joint-life annuity comes with a return of purchase price option, which is again a very relevant feature as on the death of both the annuitants, the nominee gets the purchase price.

3. Increasing pay Annuity : 

This annuity option is designed to help retirees beat inflation. As we all know the cost of living increases every year due to the general price rise in the economy or inflation. So every year retirees an increased amount to maintain their standards of living. In this annuity option, the payout increases at a fixed rate annually at a predefined rate, say 5%. 

By buying this annuity option, retirees can remain assured that they will be able to maintain their lifestyle even during their golden years.

4. Level Annuity :

This plan pays a fixed amount for life. This is not indexed with inflation & is not designed to take care of the inflation aspect. This is the most simplest form of annuity offered by insurers. This plan is suitable for a person who has invested a sufficiently large corpus in his annuity plan & believes that it will be enough to maintain his lifestyle & bear all their expense despite any increase in prices.

5. Annuity for Life : 

Under this option, pension is paid monthly, quarterly or yearly, depending on the option chosen by the annuitant throughout his life. The annuity proceeds stop only on the death of the annuitant.

As average life expectancy in India is increasing one needs to be prepared for long-retired life. Under this annuity option the risk of long retired life is secured financially by the insurer. This annuity option is suitable for every individual irrespective of occupation, age or gender since it tends to give higher returns.

6. Annuity payable for Guaranteed time : 

In this plan, pension or the annuity is paid for a defined period regardless of whether the individual dies during the specified term. Annuity stops either on the annuitant's death or once the annuity term ends. If you are worried about the risk of losing out on your investment due to an early death then you can go for this option.

7. Annuity with return of Premium on Survival : 

This option offers both life & survival benefit to the annuitant. Here, the annuitant gets back the purchase price of the annuity once he completes a predetermined age. This option ensures the investor receives guaranteed payouts throughout life. After completion of a predetermined age, say 80 years, the annuitant gets back his invested amount through the return of purchase price feature with annuity continuing subsequently. The survival benefit of this annuity option can help the investor manage any unexpected medical expenses arising due to old age.

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Mutual Fund Calculator : SIP's that can help you get ₹ 1 lakh pension Per Month

Mutual Fund Calculator : SIP's that can help you get ₹ 1 lakh pension Per Month

Mutual Funds investment can be used for post-retirement income as well. According to tax & investment experts, Mutual Fund SIP (Systematic Investment Plan) enables an investor to grow money for one’s post-retirement financial needs. However, if an investor uses this money wisely, it will help the investor continue earning post-retirement.

They say that like SIP, one needs to invest the mutual fund maturity amount in SWP (Systematic Withdrawal Plan) to continue earning on monthly basis.

On how to plan one’s monthly income post-retirement, “One needs to first ensure how much monthly income one would require to continue meeting one’s financial goals.

After that, there is need to assess how much amount one would need for SWP after retirement. Once, these two goals are finalised then comes how much monthly SIP will be needed to meet that post-retirement monthly income goal.”

Money required for SWP to earn ₹ 1 lakh monthly income for next 25 years, “One would need ₹ 1.35 crore amount for SWP to get ₹ 1 lakh monthly income post-retirement for next 25 years. Assuming 8% return on one’s money in SWP, the investor will continue to earn ₹ 1 lakh per month for next 25 years.”

However, that sometimes people want to retire little earlier and in that case one needs post-retirement income for longer period. If a person wants to retire at 55 years of age, then it would need ₹ 1 lakh monthly income for next 30 years. In that case, one’s SWP amount will go up to ₹ 1.43 crore.

On how to get ₹ 1 lakh income for next 30 years post-retirement, “Without assuming inflation post-retirement, an investor can start an SIP of ₹ 2,100 per month & increase the amount of SIP by 15% year after year. Assuming CAGR of 12% on investment, you will be able to accumulate around ₹ 1.43 crore.

If you invest the Corpus in SWP at 8% per annum, you will be able to withdraw ₹ 1 lakh per month for next 30 years.”

Mutual Fund schemes in which one can think of investing today are ICICI Prudential Focused Equity Fund, ABSL Equity Advantage Fund, Axis Midcap Fund, Nippon Small Cap Fund & ICICI Prudential Global Advantage Fund.

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Mutual Fund Transferability – Gifting & Transferring of Mutual Funds

Mutual Fund Transferability – Gifting & Transferring of Mutual Funds
Many people intend to gift Mutual Fund units to their closed ones as a token of love or even bequeath it to their loved ones after demise. However, there are certain complexities involved in this transfer process.

What are the benefits of Mutual Funds?
Investing in Mutual Funds is considered one of the best investment decisions for an ordinary investor looking to book capital gains in future. Also, since they have a long-term horizon of 5-15 years with guaranteed financial security, mutual fund transferability is a necessary process. We shall explore the feasibility & technicalities associated with gifting or transferring mutual funds to another owner.

Transfer or Transmission :
Units of a Mutual Fund are transferred to a surviving member in case of an untimely demise of the first holder, it is known as ‘transmission’ of Mutual Funds. On the other hand, a ‘transfer’ is said to happen when all the unit holders are alive.

a) Transfer of mutual funds is a grey area since as per the SEBI regulations, 1996, transfer of Mutual Fund units is allowed. However, the fund houses don’t let all the unit holders to transfer their units, en masse. The argument presented by them is that since these Mutual Fund units could be quickly sold & liquidated, there is ‘no point’ transferring funds.

b) Transfer of mutual fund units from one holder to another is quite rare. So the concept of gifting mutual fund units also is a hypothetical one &is practically not possible.

In fact, ‘third party’ payments are not accepted by mutual funds. In no way can one use his/her spouse’s money to invest in their name or vice versa. This might seem devious, but this is the only process one needs to follow in case one wishes to transfer mutual fund units. So if you want units to be in a relative’s name, then you need to transfer money first to the receiver’s account. You will then be able to use that amount to invest in the fund by their name.

The only scenario in which mutual fund units can be transferred to another is in case of the demise of the unit holder. This is usually in favour of a joint holder or a legal nominee to whom the transmission of a mutual fund unit takes place.

What are the legal documents needed?
In case of a nominee staking a claim to investment, the fund house asks for a set of legal documents.

1. Death Certificate of the Deceased. 
2. Letter from Co-Holder/Nominee.
3. KYC of the Nominee. 
4. Mandate to register the nominee's bank account. 
5. Indemnity bond if the amount exceeds 1 Lakhs.

As per SEBI’s circular, one would need a letter from a joint holder or a nominee (in case there is no joint holder). Also, the death certificate of the deceased unitholder, the Know-your-client documents of the nominee will be required. One would also need the bank account mandate to get nominee’s bank account registered, instead of the one that is already existent or the one belonging to the deceased unitholder. These documents might range from an indemnity bond if the invested amount exceeds Rs.1 lakh to an affidavit by the legal heir.

Starting a SIP for a Minor :
If you are looking at mutual funds to create a fund for your child, then it’s better that you start when they are a minor. You can buy MF units in your child’s name & choose the SIP scheme. The payments will be made into the account until your child reaches majority. The minor, i.e. your child, would be the first & the sole holder of the account & no joint holders are permitted under this scheme. You will act as a guardian until your kid reaches 18 years of age.

The AMC will send across a document before the date on which your child attains maturity. The document will act as a de facto application for changing the account for ‘minor’ to ‘major’ status. The guardian will not be allowed to operate the account anymore. Some other documentation like KYC, etc. will also be required for the process to be complete. Your child will then be able to reap the benefits of the MF investments you have made on their behalf.

SWP for Senior Citizens :
Our parents have looked after us all their lives. If you wish to do something beautiful for them, then look no further than investing in MF schemes with a monthly interest payment facility. Along with Rupee Cost Averaging, the SWP schemes also provide you with tax benefits as the prime investors.

Plus, it will give a fixed sum to your parents to help them meet their needs. So, instead of waiting for a transfer or transmission of your MF units, why not invest in a SIP/SWP scheme for your children or your parents which will be more effective in the long run?

Nine things you need to know before investing in Index Mutual Funds, ETFs

Nine things you need to know before investing in Index Mutual Funds, ETFs
While investing in passive funds, investors' decisions should not be driven by just expense ratio of the fund.

Key Highlights :

• Passive funds are not always safer
• Passive funds also underperform the index
• Tracking error & tracking difference in passive funds are not the same

Of late, more & more retail investors are getting attracted towards passive mutual fund schemes as actively managed funds have failed to outperform their benchmark over the last couple of years.
Looking at the investors' interest fund houses are lining up new ultra-low-cost index fund offerings. A few weeks back, Navi Mutual Fund created a buzz with its first offering—a Nifty50 index fund, which has an expense ratio of only 0.06%.
Index funds simply try to mirror the performance of their underlying index by holding the same stocks in the same proportion in which the index holds.
Despite this, index most funds fail to match the performance of the index they track.
Passive funds also have some drawbacks & advantages as well which investors should know before investing. 

Here are nine things investors should know about Index Funds & ETFs.
1. Passive funds are not always safer
Many investors are of the opinion that index funds or ETFs are safer than actively managed funds. Worth mentioning here is that both active funds and passive funds invest in equities, which by nature are volatile. So if the market falls index funds will also fall in line with the index. However, as index funds track a particular index, the quantum of fall may be lesser than active funds in general. But both active and passive funds carry market risk and can fall if overall markets fall. But the only difference in case of index funds is that their risk profile is consistent with the underlying index.

2. Passive funds also underperform the index
Although index funds try to mirror the performance of an underlying index, in most cases they underperform their benchmark. Returns of a passive fund are usually slightly lesser than the index it tracks, for multiple reasons. “The index itself is a theoretical concept and replicating it comes at a cost.” Worth mentioning here is that a fund's NAV is arrived at after deducting expenses. So more the expense ratio of a passive fund, the more will be underperformance. The cash position held by the fund also contributes to the gap in performance. Also, inflows & outflows in the fund lead to divergences in performance. This apart, tracking difference may also arise during rebalancing.

3. A passive fund can also outperform its Index
Sometimes, passive funds outperform their underlying index due to several reasons. Index funds having higher cash positions tend to outperform their index in case of market corrections. But if your fund is consistently outperforming its index—showing positive tracking difference then it is a matter of concern as it implies the fund manager is either struggling to mirror the changes in index or may even be taking unwarranted risk on the index portfolio. Experts say in a normal scenario, index funds are expected to show a nominal negative tracking error.

4. Tracking error & tracking difference are not the same
Most investors believe that tracking error & tracking difference of an index fund are the same. Typically investors use these two words interchangeably but these two are not the same. While tracking difference indicates the difference in return between an index fund & its benchmark index, tracking error signifies the volatility in the performance of the index fund relative to its index. tracking error is calculated by annualising the standard deviation of the tracking difference of an index fund. Tracking error captures the consistency in the fund’s tracking difference over a period of time. A high tracking error shows that the fund returns relative to its index keep varying widely & it is not a good sign.

5. Lowest expense ratio does not guarantee better returns
Typically investors tend to invest in the index fund that has the lowest expense ratio. But that does not guarantee better performance or lower tracking error. “Many other factors can still create a divergence between the fund & its index.” Funds with high expense ratios can also track the index better & funds with low expense ratio may clock high tracking differences. Obsessing over lowest cost index funds will be no different than yearning for highest return active funds. It traps you in the same endless pursuit. Just pick a fund with a reasonably low cost & stick with it for your investing time horizon, the publication mentioned.

6. There are additional costs in ETF other than expense ratio
Expense ratios of ETFs are even lower than index funds. But that does not mean that investors are better of buying ETFs. Unlike index funds, ETFs can be bought & sold on exchanges from other unitholders. So investors have to pay brokerage along with taxes & depository charges hide buying & selling ETF units from the market. These expenses increase the overall cost of holding ETFs.
Also, barring a few, trading volumes of most ETFs are very poor. This lack of liquidity often creates wide divergences between the fund NAV & the price at which it can be bought or sold. What you save in expense ratio is more than nullified by this impact cost. This gap is over & above the tracking difference common to both index funds & ETF's.

7. Watch out for creeping expenses
At present, expense ratio of passive funds are low as they aim to attract more investors. But there could be a surprise later when asset management companies achieve their target AUM. Passive funds are currently in their infancy & are inviting more assets by keeping costs very low. Recently, several index funds hiked their expense ratios. Tata Sensex Index Fund’s expense ratio increased 16 times from 0.05% to 0.8% in early April. HDFC Nifty & HDFC Sensex index funds now cost twice as much – from 0.1% to 0.2%. Similarly, UTI Nifty Index fund will charge a TER of 0.18% compared to 0.1% earlier. All these hikes were on direct plan variant, the regular plans already charge higher.

8. Bigger index doesn’t lead to greater diversification
Typically investors invest in passive funds that track a broader index such as Nifty 500 index to get the benefit of diversification. However, in real sense, this does not lead to greater diversification. Studies have shown that there is no incremental gain—in the form of lower risk—from diversifying beyond a point. In the same way, buying a broader index is not much different than buying a frontline index like Nifty50.
If you buy Nifty 100 index, theoretically, you do get 50 additional stocks but here the top 50 stocks enjoy a disproportionate allocation (84%) & the rest 50 stocks get lower allocation. So you don't get the desired benefit of diversification. The equal-weighted index will allow for more diversification in the true sense.
Similarly, if you are investing in a passive fund that tracks Nifty 500 index, large-cap stocks, account for a whopping 77% of the index, mid-cap stocks constitute 16%, while small-cap stocks make up the remaining 7%. Index funds based on broad market indices like Nifty 500 may not actually offer the diversification that investors are looking for as these indices are top-heavy.

9. Funds tracking beyond frontline indices don’t track well
Of late many fund houses have launched passive funds tracking small cap & multi cap indices. But tapping the broader market with an index fund or ETF can come at a steep cost, the publication mentioned. It may be noted that the tracking difference get bigger for broader index-based funds.
Over the past year, the gap remains up to 1% for bulk of the Nifty 50-based funds. It rises to 1.5% & beyond for the Next 50 index variants. The return differential increases to 2% for the Nifty 500 index & widens further for funds that are based on mid-cap & small-cap indices.
The main reason for this is the poor liquidity in the broader market. The low liquidity increases the impact cost, or the cost of executing a transaction.

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NPS Update ! Know 5 BIG changes in National Pension System : All benefits, Relaxations details

The National Pension System (NPS) is a government offered retirement cum pension scheme.
→ The National Pension System (NPS) is a Government offered retirement cum pension scheme. By investing in NPS, the investors get the dual benefit of tax-saving & retirement planning.
→ Contribution towards an NPS account provides a benefit to individuals by way of a deduction under Section 80C. Not just it secures your retirement planning, but it also saves taxes of up to ₹ 1,50,000 a year.
→ The best part is both Private & Government employees can invest in this retirement planning scheme. In recent months there have been few changes by the Pension Fund Regulatory & Development Authority (PFRDA) in NPS. Let’s see what are these major changes.

1. Transaction in NPS via NACH Mandate :
PFRDA has enabled the National Automated Clearing House (NACH) mandate in NPS transaction in order to curb the existing challenges in fund transfer process. With the help of the NACH mandate, the complete transaction process will become digital for Point of Presence (PoP) & other NPS distributors. PFRDA introduced NACH mandate jointly by Trustee Bank & Central Record Keeping through National Automated Clearing House operated by National Payments Corporation of India.

2. Withdraw Entire Accumulated Pension Wealth :
Now on maturity, the PFRDA has allowed NPS subscribers to withdraw the entire accumulated pension wealth without purchasing annuity if the pension amount is less than ₹ 5 lakh. Currently, the person can withdraw up to 60% of the amount accumulated in the account, while the rest 40% is used to purchase an annuity plan

3. Relaxation in Timelines :
PFRDA has relaxed timelines for activities under NPS & NPS Lite- Swavalamban scheme amid the second wave of the COVID pandemic. Point of Presence (POPs) are advised to undertake NPS related activities within prescribed Turn Around Time (TAT) under the Pension Fund Regulatory & Development Authority (Point of Presence) Regulations, 2018 & guidelines issued there-under, in order to ensure timely & efficient service to subscribers, this the pension regulator mentioned.

4. Partial Withdrawal via self-declaration :
In order to ease the process of partial withdrawal & make it simple, online & paperless in the of the NPS subscribers, it was decided to allow them the partial withdrawal based on self-declaration & thereby doing away with the submission of supporting documents to substantiate the reason for partial withdrawal.

5. Deposit contributions under D Remit :
National Pension System (NPS) subscribers can deposit contributions into their accounts under D Remit (or direct remittance) using IMPS. The pension regulatory said, "PFRDA is pleased to announce the enablement of contribution by subscribers into D Remit by using Immediate Payment System (IMPS), the instant fund transfer facility provided by National Payment Corporation of India (NPCI).

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Health Insurance Porting -Benefits & How to Port your Cover without losing Benefits.

Not happy with your health insurance policy? Here’s how you can port your cover without losing benefits.

→ If you are not satisfied with your existing health insurance policy or you believe that the benefits you get from your health plan are not worth the premium you pay, then you have an option to port it to a different insurer for a better plan. In this case, the no claim bonus on existing policy also gets ported.

→ Health insurance policies can be ported to a different insurer while continuing the accrued benefits of the existing policy. For example, if in your present health plan some treatments are not covered for the first two years & already one year has passed, then in the new policy offered by a different insurer the waiting period for the same treatment will be reduced by one year. Worth mentioning here that the same benefit will not be applicable to a senior citizen mediclaim policy.

→ It is easier to port the health insurance plan of a young person than a senior citizen. Companies often show reluctance to port senior citizen plans as the waiting period is either reduced or entirely waived off & the new insurance company's liability comes into effect earlier.

→ It may be noted that individuals having a chronic illness or who have already undergone a hospitalization may get limited options when it comes to health insurance portability.

Will the benefits continue?
→ Yes. Portability is allowed under all individual indemnity health insurance policies issued by general insurers and health insurers including family floater policies. Wherein, the continuity benefits are offered on time-bound exclusion to the extent of the previous sum insured.

What are the advantages of porting instead of purchasing a New Policy?
1. New Sum Insured : When it comes to portability, the sum insured & accrued bonus will be added, to determine the new sum insured. Furthermore, the existing no claim bonus will also be added to the new sum insured.
2. Continued Previous Benefits : All the benefits provided by the old policy will remain in force in the new policy.
3 Lower Policy Premiums : Due to the myriad of policies offered by many insurance players, if you are porting your policy, your new insurance provider would probably offer you existing benefits enjoyed in your old policy for even lower premiums. This will bring down the cost of insurance & help save more money.
4. Transparency : As the policyholder has the option of moving to a new service provider, they would have the option of porting their policy to an insurer that follows transparent practices, with no hidden conditions and clauses.
5. Customised Policy : Policyholders have the privilege of modifying their existing policy to suit their health requirements, such as opting for additional cover as per their current lifestyles & health stats, or changing their nominees.
6. Time-bound Exclusions Absent : Policyholders needn't worry about time-bound exclusions, when porting their policy.
7. Better Claim Settlements : If policyholders find the claim settlement process very slow & cumbersome with their previous insurer, they might enjoy better services with their new insurer, depending on the insurer's claim settlement ratio.

Will the Premium Change?
→ The premium on the new policy may vary depending on the underwriting process of the new insurance company for the particular product.

→ "The premium is calculated based on the age, geography, health conditions & gender in some of the products. However, the premium may differ from insurer to insurer based on coverage, terms conditions, sub-limits / no sub limits, room capping & waiting periods.

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10 Golden Investment Rules for First Time Earners

10 Golden Investment Rules for First Time Earners

Introduction : Congratulations on landing your first job. As the stepping stone to a long career — one that could see you rise to new heights & success — you also have dreams you wish to accomplish. A comfortable car, a new home, higher education, happy retirement & others. And while your investment goals may be as unique as the journey you take to reach them, here are ten golden investment rules to help you get where you want to be.

1. Create a Financial Plan : Build a financial strategy that includes your goals, investment timeframe & risk appetite. Knowing your risk profile is important when creating your financial strategy. Get to know your comfort level with risk & how much risk you need to take.to achieve your financial goals.

2. Start investing at the Earliest : When it comes to investments, the earlier you begin, the more benefits you stand to gain. Start investing now to allow the power of compounding to reap returns at a later stage. Investing in Equity & Equity-oriented mutual funds coupled with the power of compounding can help grow your investments into a substantial sum of money over time.

3. Diversify : You may have heard the saying, "don't put all your eggs in one basket." This principle also applies to your investments. Diversification is essential when investing as it ensures that any underperformance by one asset class could be offset by a good performance from other assets in your investment portfolio. By investing across asset classes, such as equity, fixed income, gold & alternate investments, you can achieve good returns with a balanced approach to risk.

4. Stick to Asset Allocation : Starting from your first job, you may have goals to achieve. Every goal may have a specific timeline. Your short-term goals could be achieved within the next year, medium-term goals in the next five years and long-term goals beyond five. Hence, choose suitable asset classes depending on your financial goals. Consider your risk appetite, time horizon & financial objectives in deciding the right asset allocation mix for your portfolio.

5. Know your Taxes : Your salary may be subject to tax & hence, knowing where & how much of your income is taxed is important. Learn more about investments & products that offer you tax benefits & tax exemptions offered under various sections of The Income Tax Act, such as those for Equity-Linked Saving Scheme - ELSS funds, Life insurance premiums, etc.

6. Be Informed : Do not invest in any instrument or asset class you don't understand. It can be a good time to learn more about different kinds of investments, potential rewards & the potential risks when investing. Knowing how your investments make money or how losses could happen is essential. Being informed can help you make smart investment choices.

7. Explore Mutual Funds : A mutual fund is a financial tool that pools money from many investors to invest in different assets such as equity, debt or gold. Mutual funds are simple to understand, affordable & offer professional management all combined in one. But more importantly, it also gives you instant diversification & liquidity. You can also choose to invest regularly through a Systematic Investment Plan (SIP's) or a lump sum amount as per your convenience. SIP is a good option for investors looking to instill discipline into their investing habits. Getting the freedom to choose schemes of your choice depending on your financial needs & risk-bearing capacity is the most significant benefit that mutual funds can offer.

8. Think Long-Term : When investing, consider doing so for the long run. It can ensure you are not hassled about daily or weekly stock market volatility. Stick to your financial strategy despite market movement that can help you focus on your long-term goals & time horizon.

9. Invest Regularly : A good way to discipline your investment habits is to ensure you make regular investments. It can help you beat market volatility, especially if you use Mutual Fund SIP's or choose to invest in stocks systematically. As you contribute small portions of your money to your investment portfolio regularly, you will be able to create a corpus over time without taking the pain of investing a large sum at one go.

10. Review your Strategy Periodically : Since no one can control market fluctuations, political environments or the economy, change is a constant that you can expect. You can consult with a financial advisor to help you review your strategy regularly. Consider your financial advisor as your expert navigator on your investment journey. Through their expertise & financial knowledge, you will know where you stand financially & what you need to do to reach your goals successfully. Many brokers or financial distributors also offer their recommendations on investments, diversification, asset allocation, etc. online for both first time & experienced investors. They also generally track & review their recommended investments to take them to closure. Investors can also take benefit of this facility.

In Conclusion : Following the above ten fundamental investment rules can increase your chances of building wealth & meeting your goals successfully. Above all, motivate yourself to keep your eyes on the larger picture to make smart investment choices despite market ups & downs.

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Investment into Mutual Funds Simplified

Is One of the Following Questions on your mind regarding Mutual Funds?

1. How much to invest in MutualFund?
2. Is my Existing Fund Performing?
3. SIP or Lumpsum?
4. Best Fund Suited to My needs? (Hint : Not always the top performing Fund in a prior period)
5. How can I add an extra 2-3% Return annually?

Benefits of Consulting & Investing For Tax Saving as well as in General for SIP, Lumpsum & Other Mutual Funds Investments with us.

1. Proper Guidance With Respect to Life Cycle Risk appetite Goals.
2. Proper Fund Selection based on above.
3. Follow up periodically. 

Apart From this You will get a ton of supports & markets research from IIFL Research team with products into Govt & Corporate Bonds, Corporate Fixed Deposits etc to achieve an extra 2-3% Return annually.

Practically a no Brainer Right? What are you waiting for? 

Drop a message on Whatsapp 7506265365 or mail at rajeshnair72@gmail.com for more details or help to invest.

Happy to Help.

Five sources of income beyond EPF, PPF that are exempt from Income Tax

Five sources of income beyond EPF, PPF that are exempt from Income Tax : 
→ As per income tax rules any individual having an annual income of more than ₹ 2.50 lakh is required to file income tax return.

→ It is necessary irrespective of the source of income. While salary income and business income are taxed as per the applicable individual tax slabs, there are certain sources of income that are exempt from income tax irrespective of the amount.
→ Maturity proceeds of Public Provident Fund (PPF), Employees Provident Fund (EPF), insurance policy are exempt from income tax.
→ Similarly, there are certain other sources of income that are not taxable : Tax experts say income from gift including marriage gift, share of profit in a partnership firm, educational scholarships, gratuity & ancestral property is also exempt from income tax.

Five sources of income that are exempt from Income Tax :
1. Share of profit in Partnership Firm : The share of profit, received by a partner, in the total income of the firm is exempt from income tax in the hands of the partners. As share of partners is arrived after providing for all expenses & income tax, partnership is not taxable. However, remuneration received by a partner & interest on capital received by the partner is taxable.

2. Marriage Gift : Gifts received by a newly-wed couple during their wedding are exempt from tax. If the gifts are given by immediate family members, such as their parents, siblings or any of their siblings’ spouses, or the siblings of their parents, they are exempt regardless of the value of the gift. Whether it is cash, stocks, jewellery, automobiles, electronics, artefacts, etc., or even immovable presents such as house or land, shall not attract tax & are exempt under Section 56 of the Income Tax Act, 1961.
However, if gifts are not marriage gifts, then they will be taxable if the combined value of the gifts exceeds ₹ 50,000.

3. Educational Scholarship : Any scholarship granted to meet the cost of education is exempt from income tax as per Section 10(16) of Income Tax Act 1961. However, to claim the expenses the scholarship income should have been used to meet the education expenses only.

4. Ancestral Property : The tax applicable while inheriting an asset is called Inheritance Tax or Estate Tax. In India, Inheritance Tax is not levied & (also referred to as Estate Tax) is a tax which is levied at the time of inheriting any asset. Inheritance Tax is not levied in India. So any amount received under a Will or by way of inheritance or in contemplation of death of the payer is exempted from income tax under Section 56 (ii).

5. Agricultural Income : In India, agricultural income is exempted from taxation & not included under total income. Agricultural income refers to income earned from sources that include farming land, buildings on or identified with agricultural land & commercial produce from horticultural land.

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How a Comprehensive Health Insurance Policy differs from a Basic Health Insurance Plan

How a comprehensive health insurance policy differs from a basic plan?

Discussing the concept of a Comprehensive Health Insurance Plan & how it differs from a regular or basic health insurance policy.
→ Health Insurance is essential to safeguard savings in the event of a medical emergency. While there are several options available, customers should research the features & options before deciding on a policy.

→ It's vital to understand that different health insurance plans fulfill different purposes. Some may cover only a specific group of people, whereas some may cover a specific disease.

→ Here, we are discussing the concept of a comprehensive health insurance plan & how it differs from a regular or basic health insurance policy.

Let's understand it under different sub-heads :
1. Coverage : Comprehensive medical insurance covers the cost of hospitalisation, daycare procedures, medical care at home, ambulance charges, among others. It offers extensive coverage & acts as a financial cushion in case of medical emergencies.
On the other hand, a basic health insurance policy covers medical expenses for illnesses or injuries. At the same time, it protects policyholders from sudden medical expenses & reimburses the bills or pays the medical care provider directly on the policyholder’s behalf.
In short, a basic health insurance plan helps policyholders in staying covered against various diseases. While, a comprehensive policy covers outpatient as well as inpatient treatments, including consultations, medical tests as well as hospital stays.

2. Inclusions & Cost : Comprehensive health insurance is generally designed without any capping for room rent/ICU charges & doctor’s fees. It also does not have any sub-limits for any coverage such as domiciliary hospitalisation. It offers the maximum benefit to the insured as compared to the basic health insurance cover & hence the cost is also higher.

3. Value-Added Services : Unlike basic health insurance, comprehensive health plans come with valued added services such as pharmacy & diagnostic centre tie-ups, doctor consultation, gym membership discount & many such features which add to the health cover.

Conclusion : So, which is better?
→ As per market experts, a comprehensive plan is much better than the regular health cover in terms of the sum insured, benefits offered, diseases covered, flexibility, etc. A basic plan has limited benefits.
→ However, it's always on the customers to pick the policy as per their needs & fund availability.

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