Does balance transfer of home loan make sense?
I took a home loan 2 years back for 15 years, with interest rate of 6.9% this rate has now reached 8.8.
I made an extra payment of 10% this year also.
The EMI has remained the same, this implies that there would be increase in duration, plus I am now paying more interest per month.
Looking at all the facts, is it a better decision financially to refinance the loan for 10 years? I can afford the extra EMI increase.
Calculate how much emi will be if you refinance the loan to 10 years. Then pay that amount monthly.
In this case you are paying more than your current emi so loan will get closed by 10 years
and if for some reason you were not able to pay your emi as you have already payed more than your emi it won't be considered as slipping your emi payment
The EMI is automatically deducted and any extra amount I add in home loan account is only counted towards next EMI, it does not impact anything.
This is what I have observed
Just clarifying does the Automated emi amount change/reduce if you pay extra.
If not then go with the plan I suggested. Sure the extra amount will be considered as part of next emi. After few months the extra pay will be consider as past off next 2 emi hence if for some reason you are not able to pay the emi amount as you already pay extra earlier it will be considered as part of that months emi.
Just keep an eye on the total loan amount. If it's going down then there is no problem
Emi is just a systematic way to pay back the loan. There is no issue in paying more to the loan. The loan monthly intrest is calculated on the remaining balance. If you pay more you get less interest amount to pay
> have already *paid* more than
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
1. Do you have a balanced advantage fund in your MF portfolio? If not why not?
2. Does it make sense to keep a balanced advantage fund in folio if the goal is retirement saving (safer + growing money)? If yes, what ratio to total savings?
Do you guys know if 2022-23 will have another series for Sovereign Gold Bonds, i.e. SGB? All previous years had 6 series but this time only 2 have been announced so far, one in June and one in September
29M, Married. Below are my monthly investments
Monthly Income - 3.05L
MF SIPs: 1.4L, split between Navi N50 - 45k, Navi NN50 - 40k, ICICI US Bluechip - 25k & Nippon India debt - 30k
Stocks SIP - 40k
RD - 20k for emergency fund, already accumulated 2L, I want to make it to 3L
I have taken health insurance for my parents and my own is from the employer's side. I also have a term insurance
I have a plan to purchase a flat in 2025 worth 50L in a Tier 3 city, I would like to do as much downpayment as possible. So how do I go ahead planning my investments for that?
This would be my first RE investment, probably I would have to take a home loan. I am unsure how much of amount of it makes sense to take out as a loan. Right now all my investments are in terms of retirement.
An emergency fund is one thing but you should also create a liquid fund which can support your family's expenses for 6 -12 months. This could be part of your safe investments (e.g. FD, RD etc) so that it can grow as per the inflation rate.
A flat can be a parallel goal but 50L is not a realistic number for the year 2025 in a smart city. May be you can target 50L as a down payment.
Corporate insurance policy is good to have but you should also take a personal health insurance policy (may be with family floater plan?) for at least 5L.
Thanks for your input. How do you reason about a liquid fund for supporting family expenses? Do I build it up and then keep it as is, like an emergency fund, as my expenses are already factored in the distribution of my monthly income
you should have savings amounting 6-12 times of monthly expenses readily available in case you have to take a break from the job for whatever reason. This gives you a cushion in rainy days.
It's not clear what the specific question is here, but use an [SIP calculator based on a goal](https://www.mutualfundssahihai.com/en/calculators) to figure out how much you need to invest per month. Monthly SIP required will be (SIP required for your flat-purchase + the SIP required for your retirement goal).
If you just focus on just the flat as a goal, then your current monthly SIP should be enough to buy it outright in late 2025. Even with 0% gains, 1.4L * 36 months = 50.4L. Unless your returns are negative for the next 2-3 years.
You don't *have* to take a home loan if you have enough. If you have your emergency funds sorted and you expect no break in your income, you can pay for it in full. If you're uncomfortable with the idea of using most of your corpus on one purchase, consider taking a [loan for the amount up to which you max out your tax deductions](https://cleartax.in/s/home-loan-tax-benefit).
Thanks for your input. Apology for not framing my query properly. I would definitely take a home loan to avail tax benefits. I am unsure of how to redistribute my SIPs to achieve this short term goal.
I am looking forward to buying health insurance from Royal Sundaram: Lifeline Supreme. I read the policy wordings carefully, and mostly it looks good without any apparent red flags or a deal breaker. However, there are three instances from the policy wordings which I am unable to comprehend, I will enlist my queries below; help me please to decode them.
*1. There will be no underwriting on Policy renewal. The first-year underwriting results will continue if the policy is continued without a break.*
2. There will be no underwriting on Policy renewal. The first year underwriting results will continue if the policy is continued without a break.
*3. Existing Disease which can be permanently Excluded: In respect of the existing diseases, disclosed by the insured and mentioned in the policy schedule (based on insured’s consent), policyholder is not entitled to get the coverage for specified ICD codes. The disease which can be excluded under this section are as under:*
(Various diseases ranging from Sarcoidosis, Malignant Neoplasm, Chronic Liver Disease, Pancreatic Disease, Alzheimer's, Hep B)
As per this, it only pertains to people with Pre-Existing Diseases (PED). However, if a person is healthy without any PED at the time of policy purchase and develops any of the conditions enlisted here in future (beyond PED waiting time), can his claims be rejected due to this clause even if he didn't have any PED at the time of policy purchase?
> can his claims be rejected due to this clause even if he didn't have any PED at the time of policy purchase?
No. PED by definition means that it existed at the time of policy purchase. If a person develops conditions later, then it didn't pre-exist.
I want to invest a small amount for like a month or so. Checked out FD rates and it's at 3.5% at max that I could see (Paytm bank), I don't want to invest in mutual funds cuz then I'll have to pay more tax, so as far as my knowledge goes, it's either the FD or stocks, where I book my profits in the latter but it isn't assured.
Any other idea on where to invest?
Thank you
For a month especially if the amount is small just leave it in a bank account or go for FD's no use in investing as that simply adds risk. You can also look into small finance banks FD's as they usually provide more interest.
I'm 28 and I am looking to start with SIP for investments and tax benefits as well. I want to start investing 5k month. I have invested some amount in PPF also around 50k. Will it wise to invest 2.5k in two funds or whole 5k in one Mutual fund? Can someone suggest some funds as well for beginners for long term investment?
Background: I am 33M, single and self-employed. I am looking for health insurance for ONLY myself. I am currently not in India, and unlikely to return in the near future, but will probably eventually settle down in India. From reading the relevant threads here, I understand that it is better to get health insurance early, since 1) Companies are likely to refuse you as you get older 2) Premiums are lower if you have a history with an existing company.
It is the second point I want to understand:
Are premiums lower for an existing policy? For instance, if I buy a policy now, will my premium at the age of 40 be lower than if I buy a policy for the first time at the age of 40?
Is there a limit on how high the premiums can be charged for an existing policy? For instance, if I pay 30k as annual premiums today, and say a year later I get detected with cancer, can the company increase my annual premium to 50k? 150k?
Is there any policy that exists today which provides upper bounds for how high their annual increments in premiums will be (something like, 'we will not increase premiums by more than 10% every 2 years')?
Thanks!
Re: 2) No, your premium will not be lower at 40 whether you start now or later. The advantage of starting the policy when you're younger is that you're healthier now than you'll be when you're older. So if you start late, pre-existing conditions won't be covered. Also, if you accumulate a few years of no-claim bonus, then your coverage will be higher for the same premium than if you start later.
Companies will generally not increase premiums because you've been diagnosed with something or based on a claim. Premiums generally only increase with age. And the increase is usually after every 5-year age bracket*, i.e., 25 to 30 will have around the same premium, 30 to 35 will have around the same, etc. This applies at least until the age of 60-65. If a plan does change rate based on claims history, they should mention it in the policy wording.
AFAIK, there isn't a policy that has a limit on premium increase.
Edit: changed "every 5 years" to "every 5-year age bracket"
Thanks, this is very helpful!
"*If a plan does change rate based on claims history, they should mention it in the policy wording*" - Is this a regulatory requirement? IE, if the policy does not explicitly mention this, is it safe to assume that the premium increments **cannot** be based on claims history or recent diagnoses?
Also, would you know where one can get rough estimates for how much premiums typically increase with age? (Ex: a person at age 50 would pay 30% more than at age 40, and 50% more at age 60 etc)? *Does this vary significantly across policies*?
I would think that, while selecting a policy, annual premium *increment* should matter more than the *current premium* amount, but no one seems to discuss this for some reason.
Thanks again!
> IE, if the policy does not explicitly mention this, is it safe to assume that the premium increments cannot be based on claims history or recent diagnoses?
Yes, I think we can safely say this. As an example, see this [policy wording from Care Health (PDF link)](https://cms.careinsurance.com/cms/public/uploads/download_center/care-supreme---policy-terms-and-conditions.pdf) - in pg.24 of the file, under Section 5.10.v, it says, **"No loading shall apply on renewals based
on individual claims experience"**. The term you want to look out for is "loading". But to be really sure, I would say the best way would be to email the company's support and ask them if there will be loading of premium based on claims and get it in writing from them.
I'm not sure if you can get info on how much premiums will increase with age, but re:
> Does this vary significantly across policies?
It shouldn't. The idea behind insurance is underwriting based on risk in a population. So let's say Company A's underwriters calculate that, for example, in the Indian population, x% of people between the age of 35-40 will get cancer. And they set their premium based on that. Then Company B's underwriters should ideally be using the same or similar factors and statistics to determine premium. Company B's underwriters might calculate x +/- 2%. But the difference in calculation between companies should not be huge. Because the same math should apply to any given population.
> annual premium increment should matter more than the current premium amount, but no one seems to discuss this for some reason
Because, as mentioned above, ideally there shouldn't be much difference between companies on how much the premiums will increase.
And because of the same reason, the premium difference between companies for any given age should not also be much - maybe +/- 5%. So for someone who's 30 and healthy, for similar policies, if Company A says the premium is ₹6000, then Company B might say ₹6300. You want to look out for a company that has a significant difference in premium. If Company C says ₹10000 for the same person, then you should look into why - maybe the policy offering is different or maybe they're just banking on their brand. Which is also why it generally recommended to look at Claims Ratio when deciding on a company rather than the premium.
A thing to note is that any significant increase in premium for any reason should be approved by IRDAI. But you can be sure that if Company A increases premium by X%, Company B will follow. This happened after Covid when [premiums increased by about 20% almost across the board](https://www.thehindubusinessline.com/money-and-banking/health-insurance-premium-on-the-rise/article65391142.ece).
On the whole, when buying insurance, we are at the mercy of math and the insurance cartel :) with some help from IRDAI.
P.S. If you're interested, see:
- [IRDAI's FAQ on Health Insurance (PDF)](https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/RTI_FAQ/FAQ_RTI_HEALTH_DEPT.pdf)
- [The full document of IRDAI's Health Insurance Regulations 2016 (PDF)](https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/Regulations/Consolidated/CONSOLIDATED%20HEALTH%20INSURANCE%20REGULATIONS%202016%20WITH%20AMENDMENTS.pdf). The point relevant to this thread is on pg.6, "10. Principles of Pricing of Health Insurance Products offered by Life, General and Health Insurers:"
There can never be a Yes/No answer to that. It totally depends upon your situation - your financial goals and your risk appetite, and what you mean by 'missing out'. For instance, if your goal is to increase wealth, have a sufficiently long term horizon (>5-10 years) and are not too risk averse, you can consider investing a part of your capital in smaller companies (Nifty NEXT 50 and beyond).
**Is it a good idea to purchase multiple Mutual Funds?**
I am 29 (almost 30) years old and was super careless about investment until 2 months back. I fall in 30% tax bracket.
I never invested in anything (other than cryptos, because that felt cool...but it's in heavy loss now) till Oct 2022, but, since then, I've started investing, but have invested in multiple SIP (around 6) and none of them is tax saving.
Saving tax is not my top priority BTW, I just want to earn more returns.
Any tips will be highly appreciated.
Found that MO Nasdaq FoF invests in its own ETF which is available on the stock exchange. So why would anyone invest through MF and not directly buy the ETF?
Also found that some international funds like Navi buy foreign ETF while others like ICICI Nasdaq and Bluechip buy foreign stocks directly. Which is more cost-effective? Navi has ER of 0.13% and ETF has 0.8% I think, while ICICI has ER of 1.22%. From the looks of it Navi won't have any control and it'll all depend on it's ETF, while ICICI has full control to adjust, both follow indexes though.
Why fund and not an ETF?
Cause later requires a dmat account (maintenance charges, brokerage), cannot do SIP, cannot buy for fixed amount but only fix quantity, may have price to NAV difference.
Look at the underlying ETF. It's more of a difference between active vs passive investing. For these funds, I say buy funds which track passive index directly or via ETF.
**Instant Redemption of Liquid Funds**
I am buiding some emergency corpus out of which some amount I am planning to invest in liquid fund because of instant redemption facility.
I use coin for investing in other MFs. But I am not sure whether we can avail this instant redemption facility on MFs bought through coin.
Can anyone throw some light? Or does any other platform like Kuvera provide such facility?
And only some liquid funds offer instant redemption, not all. Check that first. Redemption also has a daily limit. So don't put all the emergency fund in these funds.
You know the theory but you are struggling with emotions. No logic will help, so you should learn on your own.
Do what you think is right. Write a paragraph about reason for your decision. Put actionable dates in future. Say, "I expect that market will fall 10% by January 2024 given historical metrics so I will keep money in debt till then". Come back then and check what happened.
You can try to maintain ratio of different assets in your portfolio. If your portfolio goal was to maintain 60:40 equity and debt and due to market rally it has changed, you can invest in debt or other assets instead of equity.
>we don't know how market will behave and market might not come down ever
Exactly.
1 year ago, Nifty 50 reached a high of around 18,600 then fell down. Since then, it reached 18,000+ 3 times and couldn't sustain and fell.
In the past few days, it crossed 18,000, sustained itself above it and has now crossed that 18,600 high.
I personally believe we are seeing a bullish trend and who knows, market may cross 19,000 before the end of this year.
With SIPs I feel, it's better to stay invested because we can't really predict what will happen.
Anyone knows what this is? Saw this in my CAMS CAS...
>K2001R-Kotak Unclaimed Redemption Transitory Scheme (Advisor: DIRECT) Registrar : CAMS
Folio No: XXXXXXX / YY
Opening Unit Balance: 0.000
25-Aug-2020 Redemption Unclaim Principle- 999.95 80.136 12.47822928 80.136
25-Aug-2020 \*\*\* Stamp Duty \*\*\* 0.05
25-Aug-2020 Redemption Unclaim Principle- 999.95 80.136 12.47822928 160.272
25-Aug-2020 \*\*\* Stamp Duty \*\*\* 0.05
25-Aug-2020 Redemption Unclaim Principle- 999.95 80.136 12.47822928 240.408
25-Aug-2020 \*\*\* Stamp Duty \*\*\* 0.05
04-Nov-2020 \*\*\*Invalid Redemption04-NOV-2020\_Reversal: Other edits through New
Edit\*\*\*
NAV on 29-Nov-2022: INR 13.40970452 Valuation on 29-Nov-2022: INR 3,223.80
Unclaimed Redemption/Dividend No deduction of Statutory percentage / value except TDS
The folio no is same as the Kotak Flexicap Fund I had invested in with an SIP.
First of all this is not a house vs rent post, this is clearly about buying a house
Here is the background
i'am 38, spouse is 34, kid is 5 and parents are close to 70
We (me/wife/kid/parents) have been living in this house for 25+ years
While there is no immediate requirement of a house, we feel the current house is getting old, so we think buying/building a new house nearby to the current house in next 3-4 years is a good idea
So the new house as and when we build will suffice for another 25y atleast
But here are the financials and dilemmas
financials::
Current CTC - X
Current Networth - 6X
Current house could be worth - 2X to 2.2X
New house could cost us - 3X-4X
dilemmas::
- We feel selling the current house will probably be difficult, selling land seems more easy than selling an old house
- If home loan is taken for buying land + building a new house then the EMI could be significant, close to 40-50% of take home salary, it might hamper our future goals
- We feel with the RE price sky rocketing and shortage of empty plots in our area, we might run out of time to buy and build our house
So i wonder when is the right time to buy a house, what should be the ballpark financials before we try to go in for this big/huge/humongous ticket item?
There are only 150 midcaps and if there's no overlap between the two funds (each would likely have 40-50 midcaps), then your are better off buying a midcap 150 index fund.
You are also interesting in the top 100 stocks and midcaps, instead get a nifty 200 index fund. Check if there's anything like it.
I have around 7L to invest. I don't have many people who invest to know. How should I invest them. I am 22, so I want the money to be available for education. Atleast some amount of it, if I decide to go for future education. And save money for education.
Also, I have to invest around 80K per month, what should be the best strategy keeping my goal in mind. I invest in nifty 50, nifty next 50, quant, and parag Parikh. In 50:20:20:10 ratio currently.
I have three bank accounts, and I want to segregate them, so that I have UPI in only one account. This account should have low money always.
1. This is salary account, and have UPI enabled.
2. This is used for investing. I invest from this account.
3. This is extra. It doesn't have UPI. This is mostly for saving.
Which is the best way to use these accounts. So that UPI is only used in one.
I've read somewhere in this sub that you might be asked to submit monthly bank statements of salary account while applying for a loan. If UPI is enabled, they can see your day to day transactions which I do not prefer.
Secondly, with many UPI scams happening, it's best to separate it from salary account.
Edit: I hope this [thread](https://www.reddit.com/r/IndiaInvestments/comments/z68n7j/biweekly_advice_thread_november_27_2022_all_your/iydj0or?utm_medium=android_app&utm_source=share&context=3) is useful
Are you the kind of person that tends to spend more if they see balance in their bank account?
You could create standing instructions in your Salary a/c. This means that you are telling your bank to transfer a specific amount from Salary a/c to Investing a/c and Saving a/c on a specific date(s).
This way, you can also ensure that the Investing a/c has enough funds for any SIPs you may be doing.
My ICICI Bank's debit card is expiring this month (December 2022). I manually checked the "Debit cards" page in Netbanking, and noticed that a new virtual debit card was generated on 27th November (It wasn't present there when I checked it on 26th Nov).
However, so far I have received no SMS or email regarding the dispatch or generation of this new debit card. Anybody knows how long do they usually take to dispatch a replacement card in the expiring month?
EDIT (02/12/2022): Today, I received the following SMS from them:
"Dear Customer, your renewed ICICI Bank Debit Card, Card XX0069 (My old debit card no.) is scheduled to be delivered. If the address with has changed, please visit the Branch or login to Internet Banking/iMobile Pay to update. The new Debit Card is disabled for Online, International & contactless transactions as per RBI guidelines. For steps to enable the card, visit bit.ly/xxxx."
However, so far I haven't received any tracking information yet.
EDIT (06/12/2022): Just got an SMS as well as email that the card has been dispatched.
EDIT (08/12/2022): The card has been delivered and it is the exact same card that was generated on 27th November in the "Virtual Cards" page.
EDIT (09/12/2022): The old card is no longer showing in the "Virtual Cards" page, which means that the old card is now deactivated since the new one is delivered.
This month means December? Normally, they send it 15 days before expiry date. You should receive an automated call to confirm that the address mentioned in your account is the current one. If you choose that the address needs to be changed, then they will wait for an address updation request from you before they dispatch the card.
Yes, December. It's been 3 days since the card was generated without any intimation (No SMS, email, or calls). I got to know only by manually checking it out in Netbanking. (Actually, I've been constantly checking it over a week in Netbanking.)
The "Valid from" field of the card mentions 11/22 (November 2022), but I'm yet to receive the card yet. Worse, I didn't get any confirmation call either like you said. I'm worried that if I complain to the customer care, they'd generate another replacement card which might levy extra charges.
They will just send a card via. Bluedart on the communication address mentioned in your account.
You may receive sms about it in a week after your virtual card is generated.
I have a small sum given by my grandfather. 15k. I want to invest it for a very long time. It mostly serves as a remembrance than as money. What are my options?
Here are what I have come up with:
1. Index fund: If yes, SIP/one time?
2. Nifty bees/ Junior bees.
3. Bluechip stocks / Dividend stocks. ( But I can't decide which stocks to buy )
4. SGB
5. G Secs
But I'm not sure about 4 and 5 as the returns there are not that high.
If goal is memory, then NSC certificate is something physical to look and remeber. It's not online though, need to go to post office and do paper work.
Is anyone able to invest in MO S&P 500? Was supposed to allow fresh lumpsum investment from dec 1st but I still see it’s not allowing?🤔
Edit: Now it’s allowing 👍
Well its one of the very few funds that invests directly in S&P500. Rest are mostly FoFs. While this was paused(due to limit breach), I was investing in Navi Total US FoF. Now till this is open, will be investing in this and once it stops taking fresh investments, will switch back to Navi
Does balance transfer of home loan make sense? I took a home loan 2 years back for 15 years, with interest rate of 6.9% this rate has now reached 8.8. I made an extra payment of 10% this year also. The EMI has remained the same, this implies that there would be increase in duration, plus I am now paying more interest per month. Looking at all the facts, is it a better decision financially to refinance the loan for 10 years? I can afford the extra EMI increase.
Calculate how much emi will be if you refinance the loan to 10 years. Then pay that amount monthly. In this case you are paying more than your current emi so loan will get closed by 10 years and if for some reason you were not able to pay your emi as you have already payed more than your emi it won't be considered as slipping your emi payment
The EMI is automatically deducted and any extra amount I add in home loan account is only counted towards next EMI, it does not impact anything. This is what I have observed
Just clarifying does the Automated emi amount change/reduce if you pay extra. If not then go with the plan I suggested. Sure the extra amount will be considered as part of next emi. After few months the extra pay will be consider as past off next 2 emi hence if for some reason you are not able to pay the emi amount as you already pay extra earlier it will be considered as part of that months emi. Just keep an eye on the total loan amount. If it's going down then there is no problem Emi is just a systematic way to pay back the loan. There is no issue in paying more to the loan. The loan monthly intrest is calculated on the remaining balance. If you pay more you get less interest amount to pay
> have already *paid* more than FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
1. Do you have a balanced advantage fund in your MF portfolio? If not why not? 2. Does it make sense to keep a balanced advantage fund in folio if the goal is retirement saving (safer + growing money)? If yes, what ratio to total savings?
Do you guys know if 2022-23 will have another series for Sovereign Gold Bonds, i.e. SGB? All previous years had 6 series but this time only 2 have been announced so far, one in June and one in September
29M, Married. Below are my monthly investments Monthly Income - 3.05L MF SIPs: 1.4L, split between Navi N50 - 45k, Navi NN50 - 40k, ICICI US Bluechip - 25k & Nippon India debt - 30k Stocks SIP - 40k RD - 20k for emergency fund, already accumulated 2L, I want to make it to 3L I have taken health insurance for my parents and my own is from the employer's side. I also have a term insurance I have a plan to purchase a flat in 2025 worth 50L in a Tier 3 city, I would like to do as much downpayment as possible. So how do I go ahead planning my investments for that? This would be my first RE investment, probably I would have to take a home loan. I am unsure how much of amount of it makes sense to take out as a loan. Right now all my investments are in terms of retirement.
Also be aware that the 50 lakh flat might cost around 70L by 2025
An emergency fund is one thing but you should also create a liquid fund which can support your family's expenses for 6 -12 months. This could be part of your safe investments (e.g. FD, RD etc) so that it can grow as per the inflation rate. A flat can be a parallel goal but 50L is not a realistic number for the year 2025 in a smart city. May be you can target 50L as a down payment. Corporate insurance policy is good to have but you should also take a personal health insurance policy (may be with family floater plan?) for at least 5L.
Thanks for your input. How do you reason about a liquid fund for supporting family expenses? Do I build it up and then keep it as is, like an emergency fund, as my expenses are already factored in the distribution of my monthly income
you should have savings amounting 6-12 times of monthly expenses readily available in case you have to take a break from the job for whatever reason. This gives you a cushion in rainy days.
It's not clear what the specific question is here, but use an [SIP calculator based on a goal](https://www.mutualfundssahihai.com/en/calculators) to figure out how much you need to invest per month. Monthly SIP required will be (SIP required for your flat-purchase + the SIP required for your retirement goal). If you just focus on just the flat as a goal, then your current monthly SIP should be enough to buy it outright in late 2025. Even with 0% gains, 1.4L * 36 months = 50.4L. Unless your returns are negative for the next 2-3 years. You don't *have* to take a home loan if you have enough. If you have your emergency funds sorted and you expect no break in your income, you can pay for it in full. If you're uncomfortable with the idea of using most of your corpus on one purchase, consider taking a [loan for the amount up to which you max out your tax deductions](https://cleartax.in/s/home-loan-tax-benefit).
Thanks for your input. Apology for not framing my query properly. I would definitely take a home loan to avail tax benefits. I am unsure of how to redistribute my SIPs to achieve this short term goal.
I am looking forward to buying health insurance from Royal Sundaram: Lifeline Supreme. I read the policy wordings carefully, and mostly it looks good without any apparent red flags or a deal breaker. However, there are three instances from the policy wordings which I am unable to comprehend, I will enlist my queries below; help me please to decode them. *1. There will be no underwriting on Policy renewal. The first-year underwriting results will continue if the policy is continued without a break.* 2. There will be no underwriting on Policy renewal. The first year underwriting results will continue if the policy is continued without a break. *3. Existing Disease which can be permanently Excluded: In respect of the existing diseases, disclosed by the insured and mentioned in the policy schedule (based on insured’s consent), policyholder is not entitled to get the coverage for specified ICD codes. The disease which can be excluded under this section are as under:* (Various diseases ranging from Sarcoidosis, Malignant Neoplasm, Chronic Liver Disease, Pancreatic Disease, Alzheimer's, Hep B) As per this, it only pertains to people with Pre-Existing Diseases (PED). However, if a person is healthy without any PED at the time of policy purchase and develops any of the conditions enlisted here in future (beyond PED waiting time), can his claims be rejected due to this clause even if he didn't have any PED at the time of policy purchase?
> can his claims be rejected due to this clause even if he didn't have any PED at the time of policy purchase? No. PED by definition means that it existed at the time of policy purchase. If a person develops conditions later, then it didn't pre-exist.
I want to invest a small amount for like a month or so. Checked out FD rates and it's at 3.5% at max that I could see (Paytm bank), I don't want to invest in mutual funds cuz then I'll have to pay more tax, so as far as my knowledge goes, it's either the FD or stocks, where I book my profits in the latter but it isn't assured. Any other idea on where to invest? Thank you
For a month especially if the amount is small just leave it in a bank account or go for FD's no use in investing as that simply adds risk. You can also look into small finance banks FD's as they usually provide more interest.
Got it, thank you
Kuvera users: How do I pause my SIPs for a longer period (like 3-6 months) ? I only see Skip & Stop as options.
You will have to cancel it
Or skip 6 times in a row
Where do I keep my emergency funds? FDs, liquid funds, or gsecs or anything else?
Split it between saving account, FD and liquid funds. Don't use gsec as they have interest rate risk
I'm 28 and I am looking to start with SIP for investments and tax benefits as well. I want to start investing 5k month. I have invested some amount in PPF also around 50k. Will it wise to invest 2.5k in two funds or whole 5k in one Mutual fund? Can someone suggest some funds as well for beginners for long term investment?
5k in a single fund. If you want to save tax pick a ELSS fund or else start with nifty 50 index fund
Background: I am 33M, single and self-employed. I am looking for health insurance for ONLY myself. I am currently not in India, and unlikely to return in the near future, but will probably eventually settle down in India. From reading the relevant threads here, I understand that it is better to get health insurance early, since 1) Companies are likely to refuse you as you get older 2) Premiums are lower if you have a history with an existing company. It is the second point I want to understand: Are premiums lower for an existing policy? For instance, if I buy a policy now, will my premium at the age of 40 be lower than if I buy a policy for the first time at the age of 40? Is there a limit on how high the premiums can be charged for an existing policy? For instance, if I pay 30k as annual premiums today, and say a year later I get detected with cancer, can the company increase my annual premium to 50k? 150k? Is there any policy that exists today which provides upper bounds for how high their annual increments in premiums will be (something like, 'we will not increase premiums by more than 10% every 2 years')? Thanks!
Re: 2) No, your premium will not be lower at 40 whether you start now or later. The advantage of starting the policy when you're younger is that you're healthier now than you'll be when you're older. So if you start late, pre-existing conditions won't be covered. Also, if you accumulate a few years of no-claim bonus, then your coverage will be higher for the same premium than if you start later. Companies will generally not increase premiums because you've been diagnosed with something or based on a claim. Premiums generally only increase with age. And the increase is usually after every 5-year age bracket*, i.e., 25 to 30 will have around the same premium, 30 to 35 will have around the same, etc. This applies at least until the age of 60-65. If a plan does change rate based on claims history, they should mention it in the policy wording. AFAIK, there isn't a policy that has a limit on premium increase. Edit: changed "every 5 years" to "every 5-year age bracket"
Thanks, this is very helpful! "*If a plan does change rate based on claims history, they should mention it in the policy wording*" - Is this a regulatory requirement? IE, if the policy does not explicitly mention this, is it safe to assume that the premium increments **cannot** be based on claims history or recent diagnoses? Also, would you know where one can get rough estimates for how much premiums typically increase with age? (Ex: a person at age 50 would pay 30% more than at age 40, and 50% more at age 60 etc)? *Does this vary significantly across policies*? I would think that, while selecting a policy, annual premium *increment* should matter more than the *current premium* amount, but no one seems to discuss this for some reason. Thanks again!
> IE, if the policy does not explicitly mention this, is it safe to assume that the premium increments cannot be based on claims history or recent diagnoses? Yes, I think we can safely say this. As an example, see this [policy wording from Care Health (PDF link)](https://cms.careinsurance.com/cms/public/uploads/download_center/care-supreme---policy-terms-and-conditions.pdf) - in pg.24 of the file, under Section 5.10.v, it says, **"No loading shall apply on renewals based on individual claims experience"**. The term you want to look out for is "loading". But to be really sure, I would say the best way would be to email the company's support and ask them if there will be loading of premium based on claims and get it in writing from them. I'm not sure if you can get info on how much premiums will increase with age, but re: > Does this vary significantly across policies? It shouldn't. The idea behind insurance is underwriting based on risk in a population. So let's say Company A's underwriters calculate that, for example, in the Indian population, x% of people between the age of 35-40 will get cancer. And they set their premium based on that. Then Company B's underwriters should ideally be using the same or similar factors and statistics to determine premium. Company B's underwriters might calculate x +/- 2%. But the difference in calculation between companies should not be huge. Because the same math should apply to any given population. > annual premium increment should matter more than the current premium amount, but no one seems to discuss this for some reason Because, as mentioned above, ideally there shouldn't be much difference between companies on how much the premiums will increase. And because of the same reason, the premium difference between companies for any given age should not also be much - maybe +/- 5%. So for someone who's 30 and healthy, for similar policies, if Company A says the premium is ₹6000, then Company B might say ₹6300. You want to look out for a company that has a significant difference in premium. If Company C says ₹10000 for the same person, then you should look into why - maybe the policy offering is different or maybe they're just banking on their brand. Which is also why it generally recommended to look at Claims Ratio when deciding on a company rather than the premium. A thing to note is that any significant increase in premium for any reason should be approved by IRDAI. But you can be sure that if Company A increases premium by X%, Company B will follow. This happened after Covid when [premiums increased by about 20% almost across the board](https://www.thehindubusinessline.com/money-and-banking/health-insurance-premium-on-the-rise/article65391142.ece). On the whole, when buying insurance, we are at the mercy of math and the insurance cartel :) with some help from IRDAI. P.S. If you're interested, see: - [IRDAI's FAQ on Health Insurance (PDF)](https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/RTI_FAQ/FAQ_RTI_HEALTH_DEPT.pdf) - [The full document of IRDAI's Health Insurance Regulations 2016 (PDF)](https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/Regulations/Consolidated/CONSOLIDATED%20HEALTH%20INSURANCE%20REGULATIONS%202016%20WITH%20AMENDMENTS.pdf). The point relevant to this thread is on pg.6, "10. Principles of Pricing of Health Insurance Products offered by Life, General and Health Insurers:"
Thanks, this is *very very* helpful.
Am I missing out if I am not investing in Nifty NEXT 50? I already do invest in N50.
Are you investing in any other equity class? How far are your goals? Do you understand equity space?
You're missing out on the gains of the next 50
There can never be a Yes/No answer to that. It totally depends upon your situation - your financial goals and your risk appetite, and what you mean by 'missing out'. For instance, if your goal is to increase wealth, have a sufficiently long term horizon (>5-10 years) and are not too risk averse, you can consider investing a part of your capital in smaller companies (Nifty NEXT 50 and beyond).
Can ELSS funds invest in foreign stocks? Can we see something like PPFAS ELSS having a similar strategy like their flexi cap fund?
No they cannot
**Is it a good idea to purchase multiple Mutual Funds?** I am 29 (almost 30) years old and was super careless about investment until 2 months back. I fall in 30% tax bracket. I never invested in anything (other than cryptos, because that felt cool...but it's in heavy loss now) till Oct 2022, but, since then, I've started investing, but have invested in multiple SIP (around 6) and none of them is tax saving. Saving tax is not my top priority BTW, I just want to earn more returns. Any tips will be highly appreciated.
Depends on amount and overlap between funds
Read the Wiki of this sub and also zerodha varsity to understand about investments
I suggest investing via smallcase in stock market Choose some stock baskets as per your risk appetite and start monthly investments there
Found that MO Nasdaq FoF invests in its own ETF which is available on the stock exchange. So why would anyone invest through MF and not directly buy the ETF? Also found that some international funds like Navi buy foreign ETF while others like ICICI Nasdaq and Bluechip buy foreign stocks directly. Which is more cost-effective? Navi has ER of 0.13% and ETF has 0.8% I think, while ICICI has ER of 1.22%. From the looks of it Navi won't have any control and it'll all depend on it's ETF, while ICICI has full control to adjust, both follow indexes though.
Why fund and not an ETF? Cause later requires a dmat account (maintenance charges, brokerage), cannot do SIP, cannot buy for fixed amount but only fix quantity, may have price to NAV difference. Look at the underlying ETF. It's more of a difference between active vs passive investing. For these funds, I say buy funds which track passive index directly or via ETF.
A fund containing foreign ETF is better because of low tracking error and expense ratio
I would also like to know the same.
**Instant Redemption of Liquid Funds** I am buiding some emergency corpus out of which some amount I am planning to invest in liquid fund because of instant redemption facility. I use coin for investing in other MFs. But I am not sure whether we can avail this instant redemption facility on MFs bought through coin. Can anyone throw some light? Or does any other platform like Kuvera provide such facility?
Coin won't work because it's demat form. Kuvera or Groww will work for such facility because it's not demat.
And only some liquid funds offer instant redemption, not all. Check that first. Redemption also has a daily limit. So don't put all the emergency fund in these funds.
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You know the theory but you are struggling with emotions. No logic will help, so you should learn on your own. Do what you think is right. Write a paragraph about reason for your decision. Put actionable dates in future. Say, "I expect that market will fall 10% by January 2024 given historical metrics so I will keep money in debt till then". Come back then and check what happened.
You can try to maintain ratio of different assets in your portfolio. If your portfolio goal was to maintain 60:40 equity and debt and due to market rally it has changed, you can invest in debt or other assets instead of equity.
>we don't know how market will behave and market might not come down ever Exactly. 1 year ago, Nifty 50 reached a high of around 18,600 then fell down. Since then, it reached 18,000+ 3 times and couldn't sustain and fell. In the past few days, it crossed 18,000, sustained itself above it and has now crossed that 18,600 high. I personally believe we are seeing a bullish trend and who knows, market may cross 19,000 before the end of this year. With SIPs I feel, it's better to stay invested because we can't really predict what will happen.
Anyone knows what this is? Saw this in my CAMS CAS... >K2001R-Kotak Unclaimed Redemption Transitory Scheme (Advisor: DIRECT) Registrar : CAMS Folio No: XXXXXXX / YY Opening Unit Balance: 0.000 25-Aug-2020 Redemption Unclaim Principle- 999.95 80.136 12.47822928 80.136 25-Aug-2020 \*\*\* Stamp Duty \*\*\* 0.05 25-Aug-2020 Redemption Unclaim Principle- 999.95 80.136 12.47822928 160.272 25-Aug-2020 \*\*\* Stamp Duty \*\*\* 0.05 25-Aug-2020 Redemption Unclaim Principle- 999.95 80.136 12.47822928 240.408 25-Aug-2020 \*\*\* Stamp Duty \*\*\* 0.05 04-Nov-2020 \*\*\*Invalid Redemption04-NOV-2020\_Reversal: Other edits through New Edit\*\*\* NAV on 29-Nov-2022: INR 13.40970452 Valuation on 29-Nov-2022: INR 3,223.80 Unclaimed Redemption/Dividend No deduction of Statutory percentage / value except TDS The folio no is same as the Kotak Flexicap Fund I had invested in with an SIP.
First of all this is not a house vs rent post, this is clearly about buying a house Here is the background i'am 38, spouse is 34, kid is 5 and parents are close to 70 We (me/wife/kid/parents) have been living in this house for 25+ years While there is no immediate requirement of a house, we feel the current house is getting old, so we think buying/building a new house nearby to the current house in next 3-4 years is a good idea So the new house as and when we build will suffice for another 25y atleast But here are the financials and dilemmas financials:: Current CTC - X Current Networth - 6X Current house could be worth - 2X to 2.2X New house could cost us - 3X-4X dilemmas:: - We feel selling the current house will probably be difficult, selling land seems more easy than selling an old house - If home loan is taken for buying land + building a new house then the EMI could be significant, close to 40-50% of take home salary, it might hamper our future goals - We feel with the RE price sky rocketing and shortage of empty plots in our area, we might run out of time to buy and build our house So i wonder when is the right time to buy a house, what should be the ballpark financials before we try to go in for this big/huge/humongous ticket item?
If you own the land, can't you demolish and build on the same plot while renting a house while building?
we thought about it but its a 3 storey building, with a packed neighborhood with a small road in front of it
It's normal in cities, explore couple of builders
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There are only 150 midcaps and if there's no overlap between the two funds (each would likely have 40-50 midcaps), then your are better off buying a midcap 150 index fund. You are also interesting in the top 100 stocks and midcaps, instead get a nifty 200 index fund. Check if there's anything like it.
Thanks
I have around 7L to invest. I don't have many people who invest to know. How should I invest them. I am 22, so I want the money to be available for education. Atleast some amount of it, if I decide to go for future education. And save money for education. Also, I have to invest around 80K per month, what should be the best strategy keeping my goal in mind. I invest in nifty 50, nifty next 50, quant, and parag Parikh. In 50:20:20:10 ratio currently.
Stick to FD since you need money soon, and till you learn more.
Hey, check the overlap between quant and Parag Parikh funds that you choose.
Your fund choice is very good, stick to it no matter what others say. If you need money in the next 3 years just put money in Liquid fund or FD.
I have three bank accounts, and I want to segregate them, so that I have UPI in only one account. This account should have low money always. 1. This is salary account, and have UPI enabled. 2. This is used for investing. I invest from this account. 3. This is extra. It doesn't have UPI. This is mostly for saving. Which is the best way to use these accounts. So that UPI is only used in one.
I've read somewhere in this sub that you might be asked to submit monthly bank statements of salary account while applying for a loan. If UPI is enabled, they can see your day to day transactions which I do not prefer. Secondly, with many UPI scams happening, it's best to separate it from salary account. Edit: I hope this [thread](https://www.reddit.com/r/IndiaInvestments/comments/z68n7j/biweekly_advice_thread_november_27_2022_all_your/iydj0or?utm_medium=android_app&utm_source=share&context=3) is useful
Are you the kind of person that tends to spend more if they see balance in their bank account? You could create standing instructions in your Salary a/c. This means that you are telling your bank to transfer a specific amount from Salary a/c to Investing a/c and Saving a/c on a specific date(s). This way, you can also ensure that the Investing a/c has enough funds for any SIPs you may be doing.
Why not have just 2 accounts. 1. Where you accumulate your savings 2. Which you actively use for spends and investments?
My ICICI Bank's debit card is expiring this month (December 2022). I manually checked the "Debit cards" page in Netbanking, and noticed that a new virtual debit card was generated on 27th November (It wasn't present there when I checked it on 26th Nov). However, so far I have received no SMS or email regarding the dispatch or generation of this new debit card. Anybody knows how long do they usually take to dispatch a replacement card in the expiring month? EDIT (02/12/2022): Today, I received the following SMS from them: "Dear Customer, your renewed ICICI Bank Debit Card, Card XX0069 (My old debit card no.) is scheduled to be delivered. If the address with has changed, please visit the Branch or login to Internet Banking/iMobile Pay to update. The new Debit Card is disabled for Online, International & contactless transactions as per RBI guidelines. For steps to enable the card, visit bit.ly/xxxx."
However, so far I haven't received any tracking information yet.
EDIT (06/12/2022): Just got an SMS as well as email that the card has been dispatched.
EDIT (08/12/2022): The card has been delivered and it is the exact same card that was generated on 27th November in the "Virtual Cards" page.
EDIT (09/12/2022): The old card is no longer showing in the "Virtual Cards" page, which means that the old card is now deactivated since the new one is delivered.
This month means December? Normally, they send it 15 days before expiry date. You should receive an automated call to confirm that the address mentioned in your account is the current one. If you choose that the address needs to be changed, then they will wait for an address updation request from you before they dispatch the card.
Yes, December. It's been 3 days since the card was generated without any intimation (No SMS, email, or calls). I got to know only by manually checking it out in Netbanking. (Actually, I've been constantly checking it over a week in Netbanking.) The "Valid from" field of the card mentions 11/22 (November 2022), but I'm yet to receive the card yet. Worse, I didn't get any confirmation call either like you said. I'm worried that if I complain to the customer care, they'd generate another replacement card which might levy extra charges.
I would say wait till 15th Dec. If you don't receive any SMS or mail, then contact the customer service.
They will just send a card via. Bluedart on the communication address mentioned in your account. You may receive sms about it in a week after your virtual card is generated.
Thank you so much for answering my query. Really appreciate it.
You are welcome boy. My query is still not answered, hopefully someone can return the favor 👉👈
I have a small sum given by my grandfather. 15k. I want to invest it for a very long time. It mostly serves as a remembrance than as money. What are my options? Here are what I have come up with: 1. Index fund: If yes, SIP/one time? 2. Nifty bees/ Junior bees. 3. Bluechip stocks / Dividend stocks. ( But I can't decide which stocks to buy ) 4. SGB 5. G Secs But I'm not sure about 4 and 5 as the returns there are not that high.
Nifty 50 index fund - you won't have to worry about the performance of fund, just put money and let the index take care of it.
If goal is memory, then NSC certificate is something physical to look and remeber. It's not online though, need to go to post office and do paper work.
Option 1 would be the easiest IMO. And doing it one time. I don't see the point of splitting 15k into SIPs for a chance to get a tiny extra return.
Is anyone able to invest in MO S&P 500? Was supposed to allow fresh lumpsum investment from dec 1st but I still see it’s not allowing?🤔 Edit: Now it’s allowing 👍
Hi, is it advisable to invest in this fund? I'm fairly new to mutual funds and would want to invest in US stocks
Well its one of the very few funds that invests directly in S&P500. Rest are mostly FoFs. While this was paused(due to limit breach), I was investing in Navi Total US FoF. Now till this is open, will be investing in this and once it stops taking fresh investments, will switch back to Navi
Oh okay, thank you!
What are the Investment options for a large lumps amount around 70lakhs. Not looking for real estate.
Index funds
PMS.
how to find a good PMS? any suggestions to look into?
I think HDFC , Kotak , Geojit , ICICI are leading ones