When the subscriber reaches superannuation or the age of 60, 60 per cent of the total corpus accumulated in NPS can be withdrawn as a lump sum.
Before opting for this scheme, consider how EPS is calculated.
Avoid relying on a bank RM for investment advice. Instead, approach a Sebi-registered investment advisor whose livelihood depends on the fee paid by his customers and not on product commissions.
The impact of currency depreciation can also be mitigated by holding a portion of your investment portfolio in dollar-denominated assets.
Senior citizens should avoid putting their entire retirement corpus in SCSS.
When looking for alternatives, consider several parameters -- your investment horizon and liquidity requirement, post-tax returns, and risk.
'Investors don't have to worry about underperformance in passive funds, which earn market-equivalent returns.'
'Non-par plans returns are not market-linked. Hence, they can offer guaranteed returns.'
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.
If a retail investor wants exposure to a healthcare ETF, it should be a part of his satellite portfolio, suggests Sanjay Kumar Singh.
Buy from an established agent rather than a novice who may not be around when you need his assistance.
If a 5% to 10% fall in the equity market gives you sleepless nights, you are not cut out for a 75% to 80% allocation to equities and must reduce it.
Avoid discontinuing your SIPs. Persist for at least 7-10 years.
Keep track of your foreign remittances to avoid giving incorrect declarations as these could be held against you.
LIC is currently allowing customers to revive policies that have lapsed for more than two years.
Avoid discontinuing your SIPs. Persist for at least 7-10 years.
If you pledge market-linked instruments and their value plummets, you will have to provide additional collateral, points out Sanjay Kumar Singh.
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.
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
'Comparing the rates of interest with PSU banks, the three- and five-year time deposit rates of the post office are more favourable.'
When selecting investments, pay attention to potential return, risk and how easily you can exit it.
One of the biggest advantages of index funds and ETFs is their low cost, points out Sarbajeet K Sen.
'Avoid taking excessive credit risk via mutual funds such as high-yield fixed maturity plans and credit opportunity funds.'
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.
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.
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.
Systematic withdrawal plans in equity funds can spell trouble in a falling market, points out Deepesh Raghaw.
These funds carry low risk and should be able to beat the returns from fixed deposits.
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
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
Sanjay Kumar Singh speaks to experts to find out if Tata Housings new loan offer should interest you.
Allowing it to lapse leaves you unprotected and can, in some cases, cause loss of premiums paid, experts tell Sanjay Kumar Singh.
Before you rush to invest in these funds, understand the risks they carry and whether you have the appetite for them, says Sanjay Kumar Singh.
The point to note is that since the new rebate is up to a taxable income of Rs 5 lakh, if anyone earns even little more (say, even Rs 100 more) than this amount, he would have to pay all the taxes, according to the existing slabs.
Do not go for riskier options like co-operative bank only for the higher return. Even if you go for them, park only a small portion of your capital there, say Tinesh Bhasin and Sanjay Kumar Singh.
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