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 A small   Q & A on Term Insurance What is Term Insurance? Term insurance is a legal agreement between the insured (you) and the insurer (insurance companies) where death benefit is provided to the nominee if the life insured dies during policy tenure. Normally a term insurance provides a substantial life insurance cover at an affordable premium. Why is term insurance important? -A term insurance provides substantial life insurance cover at an affordable premium -The sum assured helps your family members to live the same standard of living in your absence. -It gives you peace of mind by ensuring your family will have financial support even when you are not there. What are the benefits of term life insurance? -Term insurance plans provide a substantial life insurance cover at affordable premiums -Premium paid towards term insurance provides tax benefits under section 80C up to Rs. 1.5 lacs. -The sum assured your family receives is also tax free. How much cover should o...

  What comes first? Many investors come to me asking for schemes where they can get good returns. But I don't start with investments. I start by asking them if they have taken health insurance and life insurance. Mostly, their answer is no. Even if they have taken, the coverage amount is low. It is then, that I tell them they should first buy/increase their health and life insurance cover. The investment comes later. They say they first want to invest and later on spend on insurance. They consider insurance as an expense. This is so wrong. In fact, money spent on term insurance and health insurance may be the best investment. It safeguards the family if an unfortunate event were to happen. During a crisis related to health, all your savings could be wiped off without sufficient insurance and in case of death, the family could suffer greatly due to loss of income. Yes, dealing in investment is my main work but I know; that without proper insurance, investments may not last long. Do ...

Any action taken by the company that creates an impact on issued securities is known as corporate action. Dividend, stock split, bonus and rights issue are examples of corporate action. Typically, corporate actions are approved by the company’s shareholders and Board of Directors.  Dividend A dividend is a part of the profit distributed by the company to its shareholders. Distribution percentage (dividend payout ratio) is decided by the company management depending on capital requirement, cost and availability of alternative funds, liquidity, etc. For example, if a company with 10 crore outstanding shares has a net profit of Rs. 50 crore and decides to distribute 40% of its profits to shareholders, then per share dividend will be Rs. 50,00,00,000* 40%/10,00,00,000 = Rs. 2 A dividend is paid on the face value of the share and sometimes declared in percentage form. If a company share price is Rs. 500, face value of the share is Rs. 2 and the company declares a dividend of 250%, then ...

At the height of the pandemic, when most asset classes floundered, gold glittered, and even crossed the 56.5k mark at its peak. Gold’s ability to shine in a crisis is one of the factors that investors love about the yellow metal. Be it a war or financial crises, a pandemic or a natural calamity, people turn to gold in times of uncertainty. That’s why gold is called a safe haven. Let’s look a little more closely at the benefits of investing in gold. Benefits of Investing in Gold There are several factors which makes gold a great asset class to invest in: Safe haven : Unlike fiat currencies, gold has intrinsic value, and it has maintained its position as a store of value for thousands of years. In times of crises, investors tend to move to gold as financial assets turn volatile. Steady returns : While historically, financial assets like equity may have performed better than gold in terms of returns, the yellow metal still offers decent returns. In the last five years, gold has returned o...

  Ratio Analysis Techniques to use while picking stocks We are sure that you hopped onto this article only because it will help you make wiser decisions while building your basket of stocks, and most definitely this article won't disappoint you. Putting your hard earned money into the equity market is a difficult financial decision due to the risks involved in it, but as you know  risk hai toh ishq hai,  and on that note today you will learn various ratios and how to understand and implement it the next time you are on a stock shopping spree! There are a plethora of methods through which stocks can be analysed and stock picking has been an art very few have mastered. Each investor will have their very own philosophy to make the best possible decision. A lot of these numbers are time-consuming and cumbersome to understand therefore the ratio analysis will make your life easier by having a quick check on any company’s financial health. This, like all methods, is not a foolp...