Paper Assets | wealthymatters

Online Term Plans

May 19, 2014 1 Comment

Online Term Plans If wealth building,wealth protection,estate planning,legacy planning,cash management etc. are not priorities,then an online term plan is probably the best life insurance product you can purchase.

At long last,the LIC has come up with its own online term insurance plan.The premium as you can see is on the higher side.

Obviously lower premiums are the way to go.But before you decide anyway,go over the exclusion clauses to ensure that all situations that can possibly apply to you are covered,else you will be purchasing an umbrella with holes.Also be certain that if your insurer has been around for more than 10 years,the company has a settlement ratio above 90%,else you are likely entering into a vital contract with a less than reliable partner.

Filed under Paper Assets, Tool Kit Tagged with exclusions, LIC, LIC online term insurance plan, life insurance, online term insurance, postaday, premiums, settlement ratio, Term Plan

Buying Forex Online

May 8, 2014 4 Comments

wealthymatters Previously you had to visit banks,travel agents or other licensed forex dealers or hawala operators for your forex needs.Now not only banks and travel agents have gone online,but there are now online-only licensed forex sites,that deliver the foreign currency you buy to your hands.How cool is that?Following is a list of such sites.

Link

Some of these sites offer better rates than many banks,so be sure to check them out,the next time you deal in forex.

Filed under Paper Assets, Tool Kit Tagged with forex, forex dealers, forex rates, hawala operators, online-only licensed forex sites, postaday, Travelex

Childcare Plans Of Mutual Funds

May 8, 2014 Leave a comment

Ever wondered how good the childcare plans of mutual funds were?Now you need wonder no more.The figures speak for themselves.Now it is up to you to decide how many of them are worth exploring over the PPF and FDs to meet the expenses of the largely non-negotiable goals of your children’s education and marriage.

Filed under Paper Assets, Tool Kit Tagged with childrens plans, debt equity allocation, HDFC Childrens Gift Investment, HDFC Childrens Gift Savings, ICICI Pru Child Care Study, ICICI Pru Child Gift Care, LIC Nomura MF, Peerless MF Child Growth, postaday, SBI Magnum Child Benefit, Templeton India Gift Growth, UTI CCP Advantage Growth

Satyug Gold Purchase Plan

May 1, 2014 Leave a comment

wealthymatters Tomorrow is Akshaya Tritiya,and the gold fever is spreading.A lot of people have seen pricey ads like the one to the left and asked me if its a good deal and whether they should go for it.Here is my answer:

I know neither Shilpa Shetty nor Raj Kundra personally.Obviously they make money.But how steadily is something I don’t know.Nor exactly how much.I see their names associated with a lot of new businesses.They leverage their celebrity status.They have their money in start-ups but just what assets they have and where and how any personal guarantees can be enforced,is something I can’t tell you.And the Satyug Gold Purchase Plan is nothing more than an entrepreneur’s promise to pay.An unsecured promise to pay.And as such I will analyse the product.

All business people,as long as they have a reputation of being reasonably reliable and not thieves, have access to funds from other business people.The credit is unsecured and of short term duration and the interest is over 2% per month.Some negotiation might be possible but not all that much.

Various companies come up with fixed deposit schemes.They offer some financial statements of various levels of reliability for us to peruse.Currently company deposits give you round 13%pa.

In case of the Satyug Gold Purchase Plan,depending on the tenure you choose, you get a discount on the day’s gold price.And a year later you get delivery of the quantity of gold you purchased,irrespective of the then price.So first off, you bear the price risk which will determine your final returns.Then,assuming that the price of gold remains constant at the Rs 28,000 per 10 grams,you get returns ranging from:15% to 9%.And they are neither fixed nor predictable.

So,now its your call if you feel adequately compensated for the risk of total capital loss by these rates.My only advice is to go for the 1 year option if you must.At all costs avoid the multi-year options as even ordinary FDs are better risk adjusted options.