General

Tax planning is not the only goal of investments. This fact is often forgotten due to the pressure of making tax investments and all the other stresses surrounding taxation.

Over the last year or so, life in urban India has been rocked by 2 waves of the coronavirus pandemic, both lasting months and leaving the economy reeling as well as badly shaking up the mental wellbeing of many.

Most health and motor insurance policyholders do not file a single claim in a policy year. Insurance companies have a provision that rewards those who do not file a claim in a policy year, known as the No Claim Bonus. It is a reward given to the policyholder for every claim-free year.

As the reader already knows, healthy finances contribute to your mental and physical health. However, how to go about having healthy finances in the first place? In this piece, let’s answer this question.

We believe numbers speak louder than words. So, have a look at the following numbers. Here, the Monthly Investment Amount is Rs 10,000 and the Expected Rate of Interest (RoI) is 7% for all three examples:

Although the recent murmurs of a second wave of COVID-19 are turning out to be more than just rumours in cities like Mumbai, there is no doubt that the New Year 2021 began on a high note – the markets touched new highs, with the SENSEX scaling 50,000 for the first time in history and NIFTY falling just shy of 15,000.

They say “Habits die hard”. In the broader perspective of the Indian householder’s financial practices, there is no statement more true. Even in the New Year 2021, there are those that consider investing in Fixed Deposits (FDs). The reasons are not well-thought-out and have to do more with: “My family has always invested in FDs” and “But I don’t trust mutual funds!”

What is the use of money if it cannot stand with you through the test of time?