When the subscriber reaches superannuation or the age of 60, 60 per cent of the total corpus accumulated in NPS can be withdrawn as a lump sum.
Remember, pension from EPS will be taxable at slab rate, reducing the post-tax income for people who remain in the higher tax brackets after retirement.
Senior citizens should avoid putting their entire retirement corpus in SCSS.
The impact of currency depreciation can also be mitigated by holding a portion of your investment portfolio in dollar-denominated assets.
The challenge isn't in selling -- it's easy to sell when the market peaks. The real challenge is in buying back.
'Non-par plans returns are not market-linked. Hence, they can offer guaranteed returns.'
Avoid discontinuing your SIPs. Persist for at least 7-10 years.
Be wary of co-operative banks which have historically been most vulnerable.
'Investors don't have to worry about underperformance in passive funds, which earn market-equivalent returns.'
Before opting for this scheme, consider how EPS is calculated.
Avoid discontinuing your SIPs. Persist for at least 7-10 years.
Buy from an established agent rather than a novice who may not be around when you need his assistance.
Keep track of your foreign remittances to avoid giving incorrect declarations as these could be held against you.
If a retail investor wants exposure to a healthcare ETF, it should be a part of his satellite portfolio, suggests Sanjay Kumar Singh.
When looking for alternatives, consider several parameters -- your investment horizon and liquidity requirement, post-tax returns, and risk.
'Comparing the rates of interest with PSU banks, the three- and five-year time deposit rates of the post office are more favourable.'
If you opt for a term-life cover, buy separate policies to cover the loan for all the co-borrowers in a home loan for a sum assured equal to the home loan amount.
If you pledge market-linked instruments and their value plummets, you will have to provide additional collateral, points out Sanjay Kumar Singh.
Keep a close eye on credit quality, financials of NBFCs before investing. These instruments should not constitute more than 15 to 20 per cent of your debt portfolio.
Now govt employees to enjoy greater say in how their NPS corpus is invested. Younger employees should raise their allocation to equities in this very long-term investment instrument
These ETFs will also carry interest-rate risk, especially the 10-year ETF. The investor can overcome this risk by holding them till maturity, suggests Sanjay Kumar Singh.
LIC is currently allowing customers to revive policies that have lapsed for more than two years.
One of the biggest advantages of index funds and ETFs is their low cost, points out Sarbajeet K Sen.
If someone does reduce his contribution, he should scale it back to the 12% level as soon as he can, suggests Sanjay Kumar Singh.
Given its features as a retirement product (long lock-in and compulsory annuitisation), investors should have other investments they can fall back on in case they need funds
When selecting investments, pay attention to potential return, risk and how easily you can exit it.
Tax planning should not be left for March. If you do so, you could face a severe cash crunch in that month, warns Sanjay Kumar Singh.
Restrict investment to Rs 50,000 for tax benefits, experts tell Sanjay Kumar Singh, but caution that taxation at maturity and compulsory annuities are dampers.
Incomes such as dividend, interest on tax-free bonds, eligible gifts, etc should also be reported even though they are tax exempt, suggests Sanjay Kumar Singh.
Stick to low-cost ULIPs launched in the past few years. Go with an insurer with a good investment team and solid track record of long-term returns, suggests Sanjay Kumar Singh.
Customers need to weigh whether they will be better off selling their mutual fund holdings or taking a loan against it.
It makes sense to shift to a home loan provider offering a lower interest rate or make occasional prepayments by using bonuses or other windfalls, says Sanjay Kumar Singh.
Agents often influence customers into buying new products every year instead of continuing with their existing policies
'Avoid taking excessive credit risk via mutual funds such as high-yield fixed maturity plans and credit opportunity funds.'
Allotment could be low, and expected listing-day gains can quickly morph into losses if sentiment takes a turn for the worse
A government programme aimed at empowering people run by the north-east Indian state of Nagaland has won the coveted United Nations Award for Public Service from Asia and the Pacific region for 'fostering participation in policy making through innovative mechanism'.
These funds carry low risk and should be able to beat the returns from fixed deposits.
Those just starting their careers should avoid adding to their liabilities, especially if they already have an education loan. They should think hard before taking a car or home loan.
Goals like buying a car or travelling abroad are short-term goals whereas purchasing a house or retirement planning are medium and long-term goals.
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