#Sovereign #gold bonds make a comeback for Indian investorswith 5th tranche on Sep 1, 2016
Govt.of India announced launching of 5th tranche of #sovereign #gold #bonds,hitting the market, issue opens on 1st September and closing on 9th Sept, 2016. The offer is strictly for Indian residents, institutions, university, charitable institution etc. The gold bonds are priced at Rs. 3150/- per unit, signifying 1 unit is equivalent to 1gm of #gold. One can apply for 1gm and maximum of 500 gms. The tenor of the bonds is 8 years with exit option 5th year option. It also earns interest of 2.75% on the initial capital investment payable semi-annually. The investment amount is protected upto the no of units and the eqivalent amount of the gold prices.
Also read –
Why invest in Sovereign gold bonds?
1. It’s a paper form of gold, no issues of storage and safety
2. It earns you interest on the capital invested.
3. It can be used as loan collateral (Loan to value ratio to be maintained as guided by RBI)
4. It can be traded on demat format
5. Long term tax exempted on redemption
Disadvantages
1. Unlike GOLD ETF, it has moderate liquidity (cannot be sold as easily as GOLD ETF)
2. The premature transfer will attract capital gain tax
3. Only demat format can be traded, paper format will not be available for trading in stock exchanges.
4. Your bonds will be redeemed on maturity, while in case of GOLD ETF, you can keep it as long as you want.
5.There is no guarantee of capital protection on the amount invested, only the units which will be protected, the redemption amount will be based on the prevailing gold prices.
6. Interest earned will be taxable as per taxation laws in india
Term Life Insurance in India – essentials
- Elderly parents to look after
- Present age of children and their future needs for education
- Do you have a working spouse? If not, her lifelong expenses on health and living
Insurance Provider
|
Death claims received
|
Claim settlement ratio
|
Death claims paid
|
Claims pending
|
Per claim average value (Rs)
|
LIC
|
755,901
|
98.19%
|
742,243
|
0.5%
|
120,654
|
Max Life
|
9,223
|
96.23%
|
8,804
|
0.1%
|
278,816
|
ICICI Prulife
|
12,309
|
96.20%
|
11,546
|
0.8%
|
305,612
|
HDFC Std
|
12,189
|
95.02%
|
11,031
|
2.3%
|
238,890
|
SBI Life
|
14,876
|
95.70%
|
13,303
|
3.2%
|
229,572
|
Tata AIA Life
|
3,873
|
94.47%
|
3,659
|
1.0%
|
241,241
|
Star Union Daichi
|
1,266
|
94.08%
|
1,191
|
0.3%
|
285,306
|
PNB MetLife
|
2,466
|
92.90%
|
2,290
|
1.5%
|
448,821
|
Bajaj Allianz
|
20,661
|
91.30%
|
18,978
|
3.0%
|
183,291
|
Kotak Mahindra Life
|
2,686
|
90.73%
|
2,437
|
3.2%
|
296,143
|
AegonReligare
|
460
|
95.30%
|
413
|
0.2%
|
744,068
|
Insurer
|
Policy Name
|
Policy Term
|
Premium
|
Max life Insurance
|
Online Term Plus plan
|
35 years
|
Rs. 8970/-
|
Aegon Religare
(No. of policies claimed is very less)
|
Aegon Life iTerm Insurance Plan
|
35 years
|
Rs. 8395/-
|
ICICI Prudential
|
iProtect Smart Lumpsum Plan
|
35 years
|
Rs. 11,900/-
|
HDFC Life
|
Click 2 Protect Plus
|
35 years
|
Rs. 11,630/-
|
PNB Metlife
|
Mera Term Plan-Full Lumpsum payout Plan
|
35 years
|
Rs. 9258/-
|
Banking simplified with #Unified payment system #Cashless transaction
Good news for the Indian investors, fewer bank representatives will push you to buy wrong insurance plans #ULIPs #bankassurance
IRDA bans incentives to bank stuffs, #bankassurance
Impact –
1. To help lower misselling of insurance products by bank representatives. #bankassurance
2. The structure remains untouched for the other agents with 7% incentives over and above the commision.
3. The affect on the premium difference or anyother service differential is yet to be seen post this development.
The overall commision expenses have reduced over last decade, however, it still remains a costly affair for the investors.
The commision on sales still remains very high at 35-40% on the first year, 7.5% at the seond year and 5% for rest of the tenure, especially for the offline products
While online counterpart offers better pricing compared to these agent/ bank led products, one need to be careful to compare the exact offerings and the difference in benefits, if any.
#newsyoucanuse
10 Reasons why you should avoid Endowment Insurance Plans
10 Reasons why you should avoid Endowment Insurance Plans and chose Term Plan instead
Endowment plans (Life insurance product) especially made popular by #LIC since mid 20th century, are very popular products in Indian households because of its high pitch campaigns and rampant mis-selling by insurance agents. Due to limited knowledge on the return calculation and conservative mindsets for investments, Indian population often fall for this wealth eroding instrument. Let us at look what these insurance cum investments/ savings plans actually offer.
1. The premium is exorbitant compared to the assured returns
Sovereign Gold Bonds or GOLD ETF. Which one is your cake?
- GOLD ETF thrives on high liquidity, can be converted into physical on 1 kg of gold, NRIs can invest too
- SGB offers interest on investment and capital gain tax exempted on redemption
Investing in corporate bonds – A good debt investment option available for Indian investors
DHFL NCDs issue – should or shouldn’t buy – NCD review
- Interest on Application Money is at 8.00% p.a. and Interest on Refunded Money is at 6.00% p.a
- Tenure of the NCDs are 3, 5 and 10
- Coupon payment options – monthly, quarterly and annually
- The interest payout metho includes NEFT, RTGS, Direct debit
- Floor rate on interest rate for all categories is 8.90% and cap on interest rate for all categories is 9.50%.
- Series X is a Consumer Price Index (CPI) linked instrument (Floating Rate Instrument) has a tenor of 3 years and the Coupon Rate for Category I & II investors is currently 9.10% (Reference CPI + 4.08%); and that for Category III and Category IV investors is currently 9.20% (Reference CPI + 4.18%). 12 month average for the period before the record date (currently at 5.02%; Source http://mospi.nic.in.
- #DHFL’s Business is particularly vulnerable to volatility in interest rates
- Any increase in the levels of non-performing assets in loan portfolio, for any reason whatsoever, would adversely affect the business, results of operations and financial condition
- Any downgrade in their credit ratings may increase interest rates for refinancing their outstanding debt, which would increase their financing costs, and adversely affect our future issuances of debt and our ability to borrow on a competitive basis.