Friday, 30 November 2012

Taxation and Comparison of Debt Fund with Fixed Deposits

A Debt fund is a liquid fund. It means that you can redeem your investments at any time and the money will be credited to your bank account. Most debt funds do not have exit loads as compared to regular equity Funds. However, some debt funds may have exit loads if redeemed within 3 to 6 months. Unlike other tax saving schemes such as PPF, and senior citizens scheme, there is no cap on the investment that can be made in such funds.

A debt fund, if held for longer than a one year period will be treated as a long term debt fund. Any capital gain that arises on the sale of a long term debt fund will be taxed at either 10% or 20%. The 10 % tax rate will be applicable when the investor does not want to use an indexation benefit to increase his purchase cost. With indexation taxation of debt fund, No TDSbenefit, however the debt funds get taxed at 20%. The longer a debt fund is held the longer indexation benefits will be applicable.

A debt fund held for lesser than 1 year will be termed as a short term debt fund. Any capital gains that arise on such a fund will be taxed at the normal taxation rate of 30%.

It is important to note that there is no TDS on debt mutual funds. The TDS will only be applicable on redemption of the funds.

Generally Debt funds are termed as a better alternative to traditional fixed deposits and are more liquid without attracting any penalties. The interest rate on debt funds is generally higher than that on fixed deposits and are more attractive in a sluggish equity market

In FD’s the investor needs to pay regular tax on his FD interest and that is applicable on a year on year basis. In the case of debt funds the tax on incomes/gains on debt funds is deferred until redemption of the fund. In this way, the tax obligation of the investor reduces when he has parked his money in debt funds.

(Author Aashish Ramchand is Chartered Accountant by profession & Co-Founder of & can be reached at

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Thursday, 29 November 2012

Worst Signs That Your Parent's Finances Are Off Track

Financial problems can easily stem from the most trivial decisions that just go slightly wrong. And if you do not handle them properly, you can end up in one of the worst crisis of your life. This is especially true for older adults who do not really like talking about these problems to others.

According to a poll, 29% of America’s population is over 50 years of age. These people need your help because there are high chances that their monthly payments of loans and credit card bills are accumulating. They may be involved in debts, but might not be so keen on sharing.

If you have any elderly loved ones, then do monitor their homes for the warning signs given below.

1.     Unread Mail

Snoop through the concerned individual’s mail. If there is a huge pile of mail, browse through the pile, and if there are letters from credit Money Problem of Oldage peoplecard companies and bills, then you can easily assume that your loved one is having difficulties in managing money. He’ll probably be involved in debts so do seek debt management services.

2.     Mismanagement of Money

Take a peek into their wallet, and see if it is devoid of cash or not. If you search their room, you might even find a bank statement that indicates a minimal amount of money in their account. There may also be checks lying around or mail from pension funds and insurance companies laying round. All this means that the older adult is having trouble in managing his money.

3.     Phone Logs

Go through their phone logs. If they are regular calls from credit companies and banks, it may mean unpaid loan payments and bills. There might even be calls from the gardener or cleaner because their wages have probably not been paid.

4.     Expensive Belongings

Analyze their home and look around for newly purchased items. They might have made costly purchases like furniture, appliances or even a stunning Smartphone. They might even have been involved in a lot of travelling lately or any other expensive activities like a club membership or dining at the most luxurious restaurants on a regular basis.

You really cannot blame them for trying to enjoy their life. They have spent many years giving up their ease for the sake of their family, so they really need adventure and leisure now. But this does not mean that they should start spending lavishly without giving a second thought to the consequences.

5.     Gambling

There are many older adults that love whiling away time at the casino or playing bridge games with their friends. Once or twice over the weekend is pretty much okay, but if they go beyond that, there is a high chance that they will lose the stakes. This can result in extreme financial problems because gambling can easily make an individual broke.

6.     Scams

Older adults are more prone to getting attracted to fancy schemes which are often just a lie. They may spend a lot on these offers, and will probably not get anything in return.

7.     Money Talks

Try to engage the older adult in a conversation about money. If he avoids the talk, then it is a sure sign that he is having trouble in managing his finances. There can also be other signs such as a leak from the pipes, worn off house paint and an out of order furnace which signal money troubles.

8.     Health

When a person is going through troubled times, even the very easy tasks seem to press down on him.  While you can always make the trip to a bank or the ATM machine, an elderly person might not be able to because of leg aches or knee pains. If they have weak eyesight, then the bills will not even be readable. So paying attention to their personal health is really important.

Whether you spot multiple or just one of these signs in an older adult, then he really needs financial help. While you may not be able to afford it, many companies can help him manage money.

Author’s Bio

CJ is an expert in financial matters and offers sound advice to those who have a trouble in managing their budget. She is especially a good resource for people with debt problems. All those who need help can read more about debt consolidation at

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Wednesday, 28 November 2012

How to Invest in Mutual Fund Wisely?

You may have many dreams and some of them are your financial dreams. Financial dreams, I mean financial plans. These financial plans are deciding our financial future up to a certain extent. Financial plans may be differentiated in two ways. One is long term financial plans such as your retirement plan, higher study of your children, permanent residence after retirement etc. Short term financial plans may be to buy a car, buying a flat at  your workplace etc. Long term plans of many are short term plans of others. For long term financial plans, we must invest in long term investments such shares of companies, real estate, long term fixed deposits etc., and for short term financial plans we must invest in any short term investments such as recurring deposit, open ended mutual funds etc.

Here we can see how to invest in mutual funds. Mutual funds investment  is very easy now and an expert fund manager will deal with everything. We should choose mutual fund wisely and start investing. The rest of the work will be done by the mutual fund. Mutual fund diversifies our investments. They  invest in shares of different companies, government securities etc, gives us so great chance of diversification of our investment. But we should choose mutual fund wisely after some calculations.

Check a few things before investing in mutual funds.

What is the minimum investment in the mutual fund. You just check the minimum investment of a mutual fund before taking decision to invest in the mutual fund. Some funds offer Rs. 5000 as minimum investment while some others offer only Rs. 500 as minimum investment. Choose them as per your convenience.

SIP facility is available or not in the mutual fund. SIP of Systematic Investment Plan in mutual fund creates saving habit and the investor can invest a convenient amount regularly, say monthly How to invest in Mutual fundor quarterly . Now most of the mutual funds allow SIP facility. You can invest in such mutual fund if you don’t have a sum of Rupees at one go.

Minimum  amount of installments in SIP. You must also check that the minimum amount allowed for SIP. Whether it is Rs. 100 or Rs, 1000. Check whether this amount is affordable to you. Then only you can invest regularly without breaking of SIP.

What is the fees of mutual fund and how they take this fee. Some mutual fund charges fee for allotting mutual funds, redemption etc. Check those fees and calculate how it affect your profitability. They may charge an entry load or exit load or both. Usually mutual funds do not charge an entry load , but there may be an exit load if you redeem before a stipulated time period. Check them before investing.

Risk factor and profitability. Check the risk factor of mutual fund and correlate them with your risk bearing capacity. Some mutual funds invest in high risk securities which may fetch you a good growth and at the same time there may be loss also. Some are investing in debt instruments which may give you a steady but slow growth. Decide whether these mutual funds are in your financial plans.

Ratings of mutual fund. Rating agencies rates mutual fund with the consideration of certain facts. Just see the ratings of the particular mutual which you wish to invest. They rate Mutual fund with the performance of the fund house, mutual fund and fund managers. A good rating is a good symptom of the positive performance of a mutual fund.

Check where the mutual fund invests. Mutual funds invest in certain securities, shares etc. Check these shares are as per your policies. You may not like to invest in certain companies with any reason. So check whether they invest in those companies.

Mutual funds are convenient media of investment and one can make a good profit out of them without doing much effort. But Invest in them wisely and choose mutual funds with proper analysis.

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Sunday, 25 November 2012

Job Highlights of Employment News 24 Nov - 30 Nov 2012

Employment News for the week (Employment News 24th November to 30th November, 2012) issued with a lot of employment opportunities as usual. Important job highlights are shown below:

  1. University of Rajasthan, Jaipur requires 390 Professor, Associate Professor and Assistant Professors. Last Date : 31.12.2012

  2. Bhabha Atomic Research Centre, invites applications for recruitment of 139 Stipendiary          Trainees Category-I. Last Date : 18.12.2012job highlights of employment news

  3. Central Industrial Security Force requires 113 Assistant Sub Inspector/Exe and Head Constable/ GD against Sports Quota Last Date : 31.12.2012

  4. Brahmaputra Cracker and Polymer Limited (BCPL) require 130 Dy. General Manager, Chief Manager, Sr. Manager, Manager, Dy. Manager etc. Last Date : 15.12.2012.

  5. Maulana Azad National  Institute of Technology, Bhopal requires 98 Professor, Associate Professor and Assistant Professors. Last Date : 10.12.2012.

  6. Ordnance Factory, Muradnagar  requires 50 Labourers Last Date : 21 days from the date of opening online system

For more information about each of the above mentioned post, please refer the current employment news weekly.

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Saturday, 24 November 2012

Property prices in Delhi may increase due to circle price hike

Delhi Government hikes circle rates (setting the minimum value of immovable property) up to 200%. This is for preventing black money dealing while buying or selling of properties.

By hiking this property circle value, nobody can buy a property from a particular circle below the circle rate. This is helpful to reduce black money (liquid cash) payment while buying properties and prevent the registration of the sale deed below the circle rate.

The rate of properties in category A have increased by 200 per cent and in Category B has been increased by 50% and other categories increased by 22% of the present circle rate.

The cabinet decided to fix Rs. 2,04,600 per square meter for B Cricle rate of property in delhicategory colonies and the present rate is Rs. 1,36,400 per square meter. Through this increased circle rate the Gov’t of Delhi expect an additional revenue  Rs. 200 crore per year.

But for the colonies under categories C,D,E,F,G and H,  category C colonies, the circle rate has hiked to Rs. 1,33,224 per square meter from present Rs. 1,09,200,  Category D the new rates will be Rs. 1,06,384 as against the current rate of Rs. 87,200.

Colonies under category E has been hiked from Rs. 47,840 to Rs. 58,365 per square meter and  for F category colonies the rate will be Rs. 47,140. The present rate is Rs. 38,640.

For Category G colonies, the new rate will be Rs. 38,442 per square meter as against present Rs. 31,510 and for H category colonies it has hiked to Rs. 19,361 from Rs. 15,870.

With the above mentioned increased circle rate , the value of property in Delhi will be increased

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Saturday, 17 November 2012

Be careful before investing in mutual funds?

Mutual funds are the easiest way of getting profit from the stock market or related investments. One can just invest in mutual funds and can take a rest. The remaining part will do with the Fund houses and Fund Managers. But if one could not invest in the right mutual fund he will definitely lose his money. Here let us know some tips which tells you how to invest in the right  mutual fund to gain from the fund.

Know your investment objectives. Before investing in a mutual fund one should know the purpose of his investment  in this mutual fund. First you set your goal and invest according to it. If you invest All About Mutual Fundsin the higher education of your children, invest in a suitable mutual  fund which can redeem when your child is ready for higher education. Then you can calculate accordingly and can invest in a proper mutual fund. A plan that within how may years you want to return this investment with profit. Then you can choose from  short term mutual fund, long term fund, close ended mutual fund or open-ended mutual fund as per your requirements.

Choose a right mutual fund. After fixing your objectives you can choose the right mutual fund as per your financial goals. If you are not able to fix one or few suitable mutual funds, you can get the help of a financial adviser. Anyway choosing the right mutual fund is the important part of investing in mutual funds. You can use financial websites to know more about each mutual fund and also can compare them.

Analyze your mutual fund. You can analyze mutual funds through the rating of each fund. Look for the performance of each mutual fund you selected. You can compare the mutual funds with its performance and ratings. Some investment related websites also give an analysis and comparisons of each mutual fund.

Check the expenses of each mutual fund. Check all possible expenses of each mutual fund you selected for investing. Some expense  items will adversely affect your return from mutual funds. Entry load, exit load, time span of risk free redemption etc., to be verified.

Method of investing. You should fix that how do you invest in the mutual fund. It may through regular installments (SIP) or a lump sum investment. Determine your source of income and fix a suitable method of investing.

If you are careful in investing mutual funds you can definitely reap a good profit from mutual funds. Unless all your money may vanish within no time. So watch carefully before investing in mutual funds and watch regularly after investing. If you feel anytime your decisions are wrong, come out of the mutual fund immediately.

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Tuesday, 13 November 2012

How to Invest in Gold through SIP?

The Yellow metal gold is still on its upward trend. It is better to invest in gold for your future financial plans. An investment  in Gold gives a definite asset which will not lose. But how? You can invest in physical gold, but security is the main problem to keep this gold. There are some agencies buying gold as per your order and keep it in safe custody for you and sell them when you request them to sell. But you should know that there is some alternate option to invest in gold and can secure it for resale as per your request. The interesting thing is that you can invest gold in SIP (Systematic Investment Plan) by this method. If you do not have enough money to invest in gold in a single lot, don’t worry you can invest in small instalments also. As you heard that little drops of water make the mighty ocean, here you can invest in small but regular lots over a period of time and can earn profit from the increasing value of gold.

You can invest in gold through Gold ETF (Gold Exchange Traded Fund). Buy these ETF in one lot or through Systematic investment plan (SIP). The interesting thing is that you should not keep them in safe custody. You can tInvest in Goldrade them online through a demat account or through the website of concerned mutual funds. Gold ETF is  mutual fund and one can invest in it just like other mutual funds. All leading Mutual Fund Houses issued Gold ETF and all of them offer the same value of liquid gold. You can purchase in small units and can sell them when you wish to do so.

Advantages of SIP in Gold ETF.

Invest in small amounts. By investing in gold through SIP, the investor can invest in small convenient but regular investments. Slowly you can create wealth over a period of time and can use for any of your financial needs. One can sell them easily with the current price of gold.

Disciplined regular saving. The investor can create a regular saving habit through this Systematic Investment Plan. By separating a small amount of money regularly he can create a disciplined investment habit which is beneficial for him.

Get benefit from market fluctuations. Gold is a commodity which has a steady rising tendency in the price. But there may be slight differences due to any reason such as season, political and natural reason etc. But through investing in SIP you can get benefit from such market fluctuations. When the value is less you can buy more quantity and when the value is high you buy less quantity with the fixed instalment amount. When you sell it you will get an average rate of profit.

Other benefits. When investing in gold through SIP one should not look for the timing when the price is up and when it is down in the market. It is planned for buying in a stipulated date every month or whatever may be the frequency. If the price is less in that time you will get  gold ETF in less value and vice verse. It is a good system to accumulate wealth without any difficulty. The ETF is more liquid than real gold. Whenever you want to sell it you can sell online. You can assure the value of pure gold when you buy Gold ETF. Whenever you wish to buy more unit, you can do so any time.

All these benefits are there when you invest in gold through Systematic investment plan. So invest in gold through SIP which accumulates wealth for you and also create a good investment habit.

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Monday, 12 November 2012

Muhurat Trading Section in BSE & NSE on Diwali Day

Dear Readers,

Diwali is the festival of light. The slogan “tamaso ma jyotir gamaya” became meaningful when our prayers enlighten our heart and soul. Then Diwali gives us light both our inner sense and out. Diwali brings us peace, love and harmony. In this wonderful and pious occasion we wish all our readers and visitors a happy and prosperous Diwali. 

At this prosperous occasion we make you remember the 75 minutes Muhurat Trading Section on both NSE & BSE in 13th November, 2012 between 3.45 pm and 5.oo pm. (Pre-open Order entry open time is 3.30 pm and closing time is 3.38pm). Both Bombay stock exchange and National Stock Exchange  will be open on those timings and those who wish and believe that the Diwali brings prosperity and wealth can trade at this time. came with recommendations of stocks (IndusInd Bank, Kajaria Ceramics, Divi's Lab, Mahindra & Mahindra) which may be bought for this occasion. Read their detailed Stock recommendations in Muhurat Trading Section 2012

BSE & NSE will remain closed on 14th November 2012 due to Diwali. But Forex money market remains closed on 13th  & 14 November 2012.

Sunday, 11 November 2012

How to Invest for Retirement Plan After the Age of 50?

Everybody loves to become independent. Financial independence is more required. After the age of 50 this desire will not go down. People wanted financial independence at any age but the desire becomes stronger when they aged. When people reach near retirements this feeling will reach its peak. But when we should start retirement planning. I would say that at the very beginning when you join as an employee or start a self employment you must start to save for your retirement plan. I agree that there is an Employees Provident Fund, General How to invest for retirement planningProvident Fund  or 401 K. But these are not enough to fulfill all financial needs after retirement.  If you are careful you can make a good retirement income planning even after 50 years of age.

Look for a higher paying job: This is one of the options that an experienced talented employee can go to another high paying job. Job market is highly competitive and those who are well experienced can survive with a higher remuneration. Look for a good high paying job with your high experience.  But check those jobs are suitable for you and whether it will increase your mental tension. If you feel it is ok for you accept it and the high remuneration can add to your retirement plan.

Get an online degree which earns more: This is another option to earn more if you do not have a professional degree which is enough to get a high paying job. As a busy person you may not have time to spend for a classroom coaching. An online degree is suitable for you to get a good professional qualification which helps to earn a high paying job. Online accounting degree is very much popular now. You can go for a suitable online education as per your area of expertise. When you earn a suitable qualification, try for a good high paying job to save for your retirement plan.

Do an extra work. If you are an employee and no chance to earn a high paying job, you can go for an extra work or part time work like commission agent, affiliate or any online job which can earn a few bucks more without spending much effort. Insurance agency, online affiliate marketing or internet marketing are some of such extra works which help you to earn more money for your retirement planning.

Invest Your hard-earned money properly. Now a days there are a lot of investment opportunities and many of them offer a good return over your investment. But study well about these investment plans and invest only when you are completely satisfied with it. You can get help of your friends, relatives or any investment adviser for finding which investments are good and which are not fit for your financial needs and offer a good retirement income.

Save your tax and go for tax exempted income. This is another way to earn maximum from your savings. Look for tax exempted income and tax saving plans. Get advise of a professional to get more income and less tax. Unless the tax part will eat away a good portion of your earnings. Employees Provident Fund and PPF are better tax saving investments which offer tax exempted income and helpful for your retirement plan.

Do not follow blindly work at home offers. When you look for making extra money or for work at home offers, naturally you may be trapped with fake offers both online and offline. Study everything well before joining such programs. Do not pay money before confirming that these are suitable for you. Apply your mind and common sense and believe that nobody will give you money unless they got a good compensation.

If you apply the above mentioned tips in your life you can earn a good retirement income and can stay happily in your retirement life with financial freedom and solvency.


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Sunday, 4 November 2012

How to Invest in Forex Market?

Are you looking a new avenue for investing your hard earned money? Are you tired of investing in the stock exchange and other related investment avenues. You can try Forex market to invest your money. But you must know the basic lessons of foreign exchange market. Forex or Foreign Exchange is Exchanging currencies of different countries and make profit out of the changing value of money of those countries. So investing-in-Forex means you are actually buying currencies of other countries when the rate is low and sell it off when it is high and make profit out of it. 

The concept of Forex Trading is almost same as stock trading. But there are certain differences between both Foreign Exchange Trading and Stock Trading.

24 hours active market. Unlike stock market Forex market is open the whole day, 24 hours. One can trade his own convenient lime even in the day time or night. The Foreign Exchange market is normally closed on the weekends. When the market is closed on one
side of the world it is open on the other side of the world. One can do business through internet round the clock. And also can buy and sell currencies at the suitable time in the day. 

Short Term Investment. When comparing with stock exchange investment Forex investment is Foreign Exchange Tradingshort term. Stock investment can keep for a long time and can earn a good return out of it. There is no such guarantee in Forex investment. You can keep for a long time but no guarantee of profit. The rate of a currency pair may be changed drastically. Normally Foreign Exchange investors keep a currency pair only for short term and sometimes medium term. Any economical, political or Natural changes may affect currency rate.  So the currency pair kept for a few weeks is known as a long term investment in Currency Trading.

You can gain even when a crisis also. During any economic crisis also you can make profit from Forex Market. Foreign Currency trading is based on the rate change of currency pairs. When the value of one currency goes up the value of another currency will come down naturally. If you invest in the right currency you can gain even when there is any social or economic problem is going on. But in the stock market the chances are there to going down the value of all stocks at a time.

The volatility is high in the Forex Market. The Currency Market is more volatile than the stock market. If you could not identify the right currency pair, you will have a definite loss. So avoid trading only through guessing, but learn how to identify the right currency pair and it can earn only through experience. An experienced Forex-investor can make a definite profit from any changing market trend.

Automation can be done in Forex Trading. Foreign Exchange trading can do through a computer with an internet connection through a proper Currency Trading platform. Forex-Robots or Forex-Expert Advisor makes your Foreign Exchange trading automatically. But do not believe all of them blindly. Most of these automated currency trading system may not work properly. Use reliable Forex-software, if you wish to automate your Forex-trading. Better get any expert advise from any experienced friend or relative.

Most Forex brokers allow you to login to a demo account and try to get enough experience through their demo account with free virtual money and when you get enough experience switch over to real trade by investing real money. With Foreign Exchange Trading you can make money or can lose money. It is in your hands to make it or lose it. So act wisely and become a good Foreign Exchange investor.

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Saturday, 3 November 2012

AICPIN (IW) for the month of September 2012 is 215

The All-India Consumer Price Index Number for Industrial Workers (AICPIN –IW) for September, 2012 increased by one point and reached at 215. On 1-month percentage change, it increased  by 0.47 % between August and September compared with one. 55 % between a similar 2 months a year past.

The largest upward contribution to the change in current index came from food materials that increased by 0.87 %, contributing 0.68 percentage points to the overall change. At the item level, largest upward pressure came from Rice, Wheat, Atta, Grinding Charges,

[caption id="" align="alignright" width="300"]A graph showing the Consumer Confidence Index ... A graph showing the Consumer Confidence Index in India. (Photo credit: Wikipedia)[/caption]

Arhar Dal, Egg, Fish , Meat, Milk, Tea  etc. Miscellaneous things like Electricity Charges, Firewood, medication (Allopathic), etc. also place upward pressure in total change.

The largest downward contribution to the change in current index came from Vegetables and Fruits with a decline of 4.38 %, made (-) 0.67 percentage points to the overall change. The most downward pressure came from Tomato, Chilies,Green Apple,  Banana etc.

The year-on-year inflation measured by monthly CPI-IW stood at 9.14 % in September, 2012 as compared to 10.31 % from the previous month and 10.06 % throughout the corresponding month of the previous year. The Food inflation stood at 11.00 % against 12.20 % of the previous month and 8.29 % throughout the corresponding month of the previous year.

At central level, Chhindwara recorded the biggest increase of eight points followed by Jalpaiguri and Ranchi Hatia (7 points each), Nasik (5 points) and Jharia (4 points). Among others, twelve  registered an increase of three points followed by two points in sixteen countries and one point in twenty two countries. Giridih centre reported a decline of three points followed by Bhilwara with two points and other seven centres registered a fall of one point every. remainder of the fourteen centres’ indices remained stationary.

The indices of forty centres are higher than All-India Index and other thirty seven centres’ indices are below  nations average. Ghaziabad’s index remained as same with all-India index.

The next Price Index

AICPIN-IW for October, 2012 will be published on Wednesday, November thirty, 2012.

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Friday, 2 November 2012

What Medical Exam to Expect in a Life Insurance

Life insurance is one of the most important types of insurance plans that provides you with a lump sum at times of necessity. If you buy a life insurance policy and something unfortunate happens tomorrow, then your beneficiaries will be entitled to the insured sum of money. Now-a-days people are becoming more aware of the the importance of insuring money in order to secure life and thus buying life insurance policies. Usually whatever life insurance plan you choose- term life, endowment policy, whole life or any other plan, you have to go for a medical exam as demanded by the terms and conditions of your plan. 

Need of medical exam in a Life Insurance

Generally many people get nervous at the thought of medical tests prior to purchasing a life insurance policy. If you are clenching your fist at this thought, you must understand that insurance is a kind of risk management. Many people who may be exposed to the similar kind of risks invest money on insurance policies. So the insurance medical exam for life insurancecompany needs to determine how much premium they need from a potential buyer. For example, if you are middle-aged and have many health issues, they may consider you to die early and hence will charge more premiums from you during the early phase of your life. On the other hand, if the insurer thinks that you will live longer, you need not pay a majority of the premiums during the early period of your life. Thus longevity charts determined by the statistics of mortality rates of people at different ages are needed to find what risk an insurance company is taking by choosing a particular policyholder.

What things you can expect during your life insurance medical exam?

After knowing how much insurance you are interested to buy, the insurance company will require information regarding the following points:

  • Your medical history

  • Your family's medical history

  • Your lifestyle habits like drinking, smoking, drug use, exercise habits etc.

These are the common medical exams:

  • Measurement of your Pulse-rate, Blood Pressure, Weight and Height

  • Blood test for checking various conditions like HIV, level of cholesterol, glucose, liver or kidney disorders etc.

  • Urine test analysis, primarily for determining specific medications or use of any illicit drugs

Once the insurance company gets the results, it will determine the premium to be paid by you. You can also get a copy of the results, if required. If there is any condition that can shorten your life, you will have to pay more premium.

In India, most of the insurers require medical tests for the life insured. The life insurance plans that do not require medical exams are low-value plans. Even if you are young, enjoying a good life in good health, these low-value plans will not provide you coverage for more than 5 lacs. Similarly, if you are middle-aged and in good health, you will not get a coverage for more than 2 lacs.

Thus it is better to declare medical conditions as hiding the conditions can worsen the situation when you need the insured money. Your claim may get rejected if the insurer comes to know that the medical facts were suppressed at times of buying the policy. So it is better to go for medical test and then pay less. Again going through these preliminary tests will help you to take immediate measures if you are diagnosed with any medical condition.

Author Bio: I am Aja Levis, freelancer consultant and love to share my ideas and views on financial sector of India.

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Thursday, 1 November 2012

How to invest in real estate to make profit?

Investment in real estate is a wise decision. If you do it carefully you can make a good profit out of it. Price of land will never go down if other things are remaining the same. Only if there is any misshapenness such as big natural calamities etc., may reduce the price of land. If you purchase Land or house property in a convenient place the price will definitely go up within a few years. Investment in real estate will make you rich if you selected the right one in right time.

Investment in real estate brings you double edged benefit. An investment in house property earns you rent every month and appreciation of the value of the property. Rent is a regular income which is helpful to get back the interest on the loan you have taken for the house or the interest of the amount you paid for the house. Investment in real estateSuppose you bought a house property for Rs. 25, 00,000   which earns you a monthly rent of Rs. 12500 which gives you Rs. 150000 in a year. After a few years you could sell it with Rs. 40, 00,000 which fetch you a profit of Rs. 15, 00,000. Suppose you sold it after 5 years you an average profit of Rs. 3, 00,000 per year, in addition to the rent of Rs, 150000. So you got Rs. 4, 50,000 every year till you sold it for an investment of Rs. 25, 00,000, an average income of 18% per year. You will not get this much income, if you invest in any financial instruments other than some high profitable shares or mutual funds.

Things you keep in mind to get a good profit from real estate. If you keep the following points mind you can harvest a good profit from your real estate investment.

Invest in property after careful investigation. You must make careful enquiries to select a real estate. If the property you purchase in a good location with the nearness of schools, colleges, hospitals, places of worship, market , metro station etc. you will get a good rent and good resale value. People wish to buy houses in such a location and the resale will be easy and profitable.

Buy houses from reputed builders. Reliable reputed builders never build week infrastructures and invalid constructions. You will have a good strong structure and can earn a good resale value due to the construction of reputed branded builders.

Buy house property in developing location. In a developed location the value of property becomes stable and will increase only at a low rate. But in developing locations or cities the value of house property will be doubled or tripled in a short period of time.

Purchase property with clear title. If you purchase a real estate in a good location, but the title is not clear, you may face problems. So always buy property with clear title without any encumbrances. Better you get the advice of a good professional advocate and do not consider the professional fee you paid to him is a loss. Or you purchase property with a loan taken from a reputed bank. The bank people will verify all the documents by their panel advocates and sanction the loan only after clearing all issues, if any. If you have enough money you can pay back the loan immediately after getting the documentation and procession.

Invest in property with definite financial goals. IF you buy real estate as investment purpose, you must fix your financial goals which should be satisfied with this investment. One of my friends bought a house property in a faraway city and I asked them that would they stay there. But he told me that this is an investment  for  the higher education of his son. He has a definite goal behind this investment.

Invest with patience. Every investment must have some discipline. You must not invest here and there. Locate any special area and do not be in a hurry. Wait with patience and invest with much care and patience.

If you handle with care real estate investment is a profitable one and you can achieve your financial goals easily.

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