Imagine a future where your financial well-being isn’t a constant source of worry, where you feel confident in your ability to navigate life’s uncertainties, and where your long-term goals seem within reach. For many, this vision of a secure financial future encompasses a comfortable retirement, the capacity to handle unexpected expenses without significant disruption, and perhaps even the ability to leave a lasting legacy for loved ones or support causes that matter most. Achieving such security in today’s complex financial landscape can feel overwhelming, but there is a professional who can help you chart a course toward these aspirations: a wealth management advisor. Demystifying the Wealth Management Advisor Wealth management advisors are professionals who offer personalized financial advice and services to individuals with significant assets. These professionals play a crucial role in assisting clients with various aspects of their financial lives, including Investment management, Retirement planning, Tax strategies, Estate planning. Their primary aim is to simplify complex financial matters, providing highly personalized support and strategies tailored to each client’s unique circumstances, goals, and priorities. With expertise spanning finance, accounting, and even law in some cases, wealth management advisors offer comprehensive guidance that extends beyond simple investment advice. They often coordinate a range of financial services, acting as a central point of contact to manage a client’s assets holistically and create a strategic plan that addresses both current and future needs. It’s important to understand the nuances between a wealth advisor and a general financial advisor. While both types of professionals aim to help clients achieve their financial goals, wealth managers are often considered a subset of financial advisors who typically serve more affluent clients. Wealth managers tend to offer a more in-depth analysis of financial plans, bringing additional tools and specialization that are particularly beneficial for individuals with higher net worth. Their services may extend beyond basic financial advice to include areas like sophisticated estate planning, tax optimization, and long-term legacy planning. In contrast, financial advisors may work with a broader range of individuals across varying income levels. Wealth management often involves a more comprehensive and hands-on approach, reflecting the complexity and scale of the financial lives they manage. The Comprehensive Services Offered by Wealth Management Advisors Personalised Financial Plan : A cornerstone of wealth management is the creation of a personalized financial plan, acting as a detailed roadmap to help clients achieve their specific objectives. This process begins with the advisor gaining a thorough understanding of the client’s unique goals, risk tolerance, and overall financial situation. Based on this understanding, wealth management advisors develop tailored strategies that utilize a diverse array of financial products and services to help clients reach their aspirations. These plans are not static; they are designed to be dynamic tools that evolve alongside the client’s life circumstances and changing needs. They support not only financial goals but also reflect the client’s lifestyle, core values, and personal priorities. Strategic investment management : Strategic investment management is another critical service offered by wealth management advisors. These professionals work with clients to assess their tolerance for risk and then provide an investment strategy designed to help them achieve their financial goals. This involves not just selecting investments but also actively managing and planning investment portfolios with the aim of maximizing returns while adhering to the client’s risk parameters. A key element of this service is diversification, spreading investments across various asset classes to mitigate risk and enhance the potential for long-term growth. Wealth management advisors also provide ongoing monitoring and rebalancing of these investments to ensure they remain aligned with the client’s objectives and adapt to changing market conditions. For eligible clients, they may also offer guidance on a range of investment vehicles, including alternative investments, to further diversify and potentially enhance portfolio returns. Retirement Planning : Retirement planning is a significant focus for wealth management advisors, as they help clients create a comprehensive blueprint for a financially secure and worry-free future. This involves a thorough analysis of the client’s projected needs after retirement, along with their current income, spending habits, and savings. Advisors identify the types of retirement accounts best suited to the client’s needs and develop strategies to maximize their retirement savings. Recognizing the increasing costs of healthcare in retirement, wealth management advisors also play a vital role in helping clients plan for these significant expenses. Furthermore, they assist in establishing retirement income strategies, outlining how clients can best access their savings to create a sustainable income stream throughout their retirement years, and developing appropriate withdrawal plans. Estate Planning : Estate planning and wealth transfer are also crucial services offered by wealth management advisors. They help clients develop clear plans for the transfer of their wealth, including strategies for charitable giving and managing estate taxes, all in alignment with their values and wishes. Wealth management advisors often coordinate with estate planning attorneys to assist clients in the creation of wills, trusts, and other necessary legal documents to ensure their assets are distributed according to their intentions. They also help clients evaluate the effectiveness of their existing estate plans, assessing asset titling and beneficiary designations to ensure a smooth and efficient transfer of wealth. A significant aspect of this service involves helping clients minimize the impact of estate and inheritance taxes through various advanced planning strategies. Tax optimisation : Tax optimisation is another key area where wealth management advisors provide valuable assistance. They often coordinate with a client’s tax professionals to develop strategies aimed at minimising their overall tax obligations. This involves identifying opportunities for tax efficiency across various aspects of their financial lives, including income, investments, and estates. These strategies may include the strategic placement of assets in tax-advantaged accounts, as well as optimising the timing and methods of retirement distributions to reduce tax liabilities. Protecting wealth : Protecting wealth is just as critical as growing it, and wealth management advisors employ a range of risk management and insurance strategies to safeguard their clients’ assets against unforeseen circumstances. This includes a thorough assessment of potential
Before we discuss this edition we did our analysis , the earlier we did our analysis about 6 months back. You can read the blog mid cap fund analysis 2024 an analysis. Certain fund which were under discussion have been removed as they could not keep either the returns or fund size was not considerable. HSBC Midcap Fund Reg growth PGIM India Mid Cap Opp Fund Reg growth ITI Mid Cap Fund Reg – I have included this fund as it was very new fund and it was top performer on 1 year basis, but now is bottom performer. This goes to show that top performer lose next year and we have to find fund which can help us build wealth I have included below funds which have been top performer. Invesco India Mid Cap Fund (G) WhiteOak Capital Mid Cap Fund Reg (G) As always refer to a advisor or reach out to me to help you with best portfolio. Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios Exit Load Benchmark HDFC Mid Cap Opportunities Fund 2007 4 72,610.08 cr 1.42% 20.91 1% for redemption within 1 year NIFTY MidCap 150 Index(Total Returns Index) Motilal Oswal Midcap Fund Reg 2014 5 26,028.34 cr 1.57% 41.71 1% for redemption within 1 year Nifty Midcap 150 TRI Nippon India Growth Fund 1995 4 33,174.74 cr 1.58% 24.41 1% for redemption within 30 days Nifty Midcap 150 TRI Edelweiss Mid Cap Fund 2007 5 8633.85 1.7% 12.16 1% for redemption within 90 days Nifty Midcap 150 TRI Quant MidCap Fund 2008 1 8,355.95 1.78% 22.27 0.5% for redemption within 90 days Nifty Mid Cap 150 TRI Kotak Emerging Equity (G) 2007 3 48,128.71 1.46 26.17 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Nifty Midcap 150 TRI Axis Mid cap fund(G) 2011 3 28,063.01 1.58 18.93 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days BSE 150 Midcap TRI SBI Magnum MidCap Fund Reg (G) 2005 3 20,890.26 1.67 30.97 1% for redemption within 1 year Nifty Midcap 150 Index (TRI) Invesco India Mid Cap Fund (G) 2007 5 5779.32 1.82 32.13 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days BSE 150 Midcap TRI WhiteOak Capital Mid Cap Fund Reg (G) 2022 – 2744.56 1.96 21.86 1% for units redeemed before 1 month BSE Midcap 150 TRI ITI Mid Cap Fund Reg (G) 2021 4 1091.64 2.07 12.60 1% for redemption within 1 year Nifty Midcap 150 TRI HDFC Mid Cap Opportunities Fund : The fund was launched in 2007 enjoys 5 star rating from CRISIL, Portfolio size of 72,610 cr one of the biggest fund sizes. Expense ratio of the fund is 1.42%. The exit load is 1% for redemption before 1 year. Fund PE IS 20.91 MotilalOswal Mid cap fund: The fund was launched in the year 2014, its 5 star rating by CRISIL. The fund size is 26,028.34 Cr. The expense ratio is 1.57% , PE of the fund is 41.71. Exit load is 1 % for redemption within 1 year . Nippon India Growth Fund : The fund was launched in the year 1995, one of very early funds in the industry,4 star rated by CRISIL, good fund size of 33,174 cr. The expense ratio is 1.58% . The PE of the fund is 24.41. The exit load applicable is 1% for redemption within 30 days. Edelweiss Mid Cap Fund : The fund was launched in the year 2007, It is currently 5 star rated by CRISIL, with a decent fund size of 8633 cr. The expense ratio of the fund is 1.7%. PE of the fund is 12.16. Exit load applicable is 1% for redemption within 90 days. Quant MidCap Fund: The fund was launched in the year 2008, its currently 1 star rated by CRISIL, has a decent portfolio size of 8,355.95 cr. Expense ratio of 1.78% and PE of the fund is 22.27. The fund exit load is 0.5% for redemption within 90 days. Kotak Emerging Equity : The fund was launched in the year 2007, 3 star rated by CRISIL, second highest fund size in the category, expense ratio of 1.46%. PE of 26.17. The Exit laid applicable units in excess of 10% of investment 1% would be charged for redemption with in 365 days Axis Mid cap fund Fund: The fund was launched in the year 2011, 3 star CRISIL rated, with a great fund size of 28,063.01 cr. The expense ratio of the fund is 1.58. PE of the fund is 18.93. Exit load on the fund is For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days. SBI Magnum MidCap Fund: The fund was launched in 2005, a 3 star rated fund. Good fund size of 20,890.26 cr. Expense ratio of 1.67. PE of the fund is 30.97. The exit load applicable on the fund is 1% for redemption within 1 year. Invesco India Mid Cap Fund (G): The fund was launched in 2007 , it is rated 5 star from CRISIL.Fund size of 5779.32 Expense ratio is 1.82. PE of 32.13. The exit load applicable on the fund is For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days WhiteOak Capital Mid Cap Fund Reg (G): The fund was launched in the year 2022, It is not rated as per CRISIL, The fund size of 2744.56cr. The expense ratio of the fund is 1.96. PE of the fund is 21.86. The exit load on fund is 1% for units redeemed before 1 month ITI Mid Cap Fund Reg (G) : This fund was launched in the year 2021. It is rated as 4 star by CRISIL, with a very small fund
Are you feeling overwhelmed by your finances? Ever feel like you’re juggling a million financial balls in the air? Savings, investments, retirement, taxes… it can get overwhelming, right? Do you have big dreams for the future but aren’t sure how to get there? If so, you’re not alone. Many people find it challenging to manage their wealth effectively. That’s where a wealth management advisor comes in. Think of a wealth management advisor as your financial partner, someone who provides expert guidance and support to help you achieve your financial goals. They’re not just for the ultra-rich; they can benefit anyone who wants to build a secure financial future. Let’s break down the top 10 reasons why having a wealth management advisor in your corner today can be a game-changer: Get Crystal Clear on Your Big Picture: What does your ideal future look like? Maybe it’s retiring early and traveling the world, or perhaps it’s ensuring your kids have a debt-free start to their adult lives. A wealth management advisor helps you define these often-vague dreams into concrete, achievable financial goals. For instance, they might help you calculate exactly how much you need to save each month to retire comfortably by age 60. Personalized Financial Strategy You wouldn’t build a house without a blueprint, so why navigate your financial life without one? A wealth management advisor will work with you to create a comprehensive financial plan. This isn’t just about investments; it’s about understanding your entire financial ecosystem – your income, expenses, debts, and assets – and how they all work together. Imagine having a clear, step-by-step guide to reach your financial milestones. Expert Navigation Through Financial Storms: Life is full of surprises, and sometimes those surprises have financial implications. Whether it’s a job loss, a sudden death, or a major market downturn, a wealth management advisor can provide objective guidance and help you make sound decisions during challenging times. Think of them as your steady hand on the wheel when things get rocky. Smart Investment Strategies Tailored Just for You: Investing isn’t one-size-fits-all. A wealth management advisor takes the time to understand your risk tolerance, time horizon, and financial goals to build a diversified investment portfolio that aligns with your unique circumstances. For example, if you’re young and have a long time horizon, they might recommend a portfolio with a higher allocation to growth stocks. Unlock Tax-Saving Secrets: Taxes can take a significant bite out of your wealth. A knowledgeable wealth management advisor can help you implement tax-efficient strategies, from choosing the right types of investment accounts to exploring potential deductions and credits. This can translate into significant savings over time. Retire with Confidence and Security: Retirement might seem far away, but planning for it now is crucial. A wealth management advisor can help you determine how much you need to save, explore different retirement income streams, and create a plan to ensure you have the financial freedom to enjoy your post-working years. Protect What Matters Most: What would happen to your loved ones if the unexpected occurred? A wealth management advisor can help you assess your insurance needs (life, disability, long-term care) and guide you in creating an estate plan, including wills and trusts, to protect your family and ensure your assets are distributed according to your wishes. An Unbiased Voice in a Noisy World: It’s easy to get swayed by the latest investment trends or emotional reactions to market news. A wealth management advisor provides an objective and rational perspective, helping you stay focused on your long-term goals and avoid impulsive decisions that could derail your financial plan. Reclaim Your Precious Time: Let’s be honest, managing your finances effectively takes time and effort. By partnering with a wealth management advisor, you can offload the burden of research, analysis, and ongoing management, freeing up your time to focus on what truly matters to you. Stay on the Path to Success with Ongoing Support: Your financial journey isn’t a one-time event; it’s an ongoing process. A wealth management advisor provides continuous support, monitors your progress, and makes adjustments to your plan as your life circumstances and the market evolve. They’re your long-term partner in achieving your financial aspirations. Ready to Take Control of Your Financial Future? If any of these reasons resonate with you, it might be time to consider partnering with a wealth management advisor. You need not look further; you can hear what our customer says about our services. What are your biggest financial concerns right now? Let’s think about it and contact us to learn about the same.
A recent insightful article in the Wealth Edition of the Economic Times explored the crucial topic of financial planning for foreign education, covering aspects like funding, insurance, loans, and study destinations. Building on this foundation, this article will delve deeper into the financial strategies essential for funding any child’s education, whether at home or abroad. The desire for quality education for their children is a strong one for most parents. The HSBC Quality of Life Report 2024 highlighted this, revealing that a significant 78% of parents are either actively planning to send their children for overseas education or already have a child studying abroad. However, pursuing education, especially internationally, can be a substantial financial undertaking, particularly for families who haven’t planned diligently. For those who haven’t prepared at all, the situation can be even more challenging. The Cost of Delay: Why Procrastination Can Derail Dreams Regrettably, many parents only begin to consider the financial implications of their child’s educational aspirations when those dreams are almost within reach. By then, they often find themselves lacking the necessary resources to provide adequate support. This can lead to the heartbreaking scenario of a child’s ambitions being curtailed, or families being forced to explore less desirable alternatives. Consider the pitfalls of delayed planning: Education Loans with High Interest: Education loans can come with significant interest rates, ranging from 8.20% to 13.70%, and may be secured or unsecured. This can place considerable pressure on young graduates who are just starting their careers and are immediately burdened with debt repayment. Raiding Retirement Funds: A Dangerous Gamble: Another tempting but ill-advised option is for parents to dip into their retirement savings, such as funds in PPF or EPF. This is a critical mistake, as retirement security cannot be recovered through loans later in life. If facing such a dilemma, securing an education loan today is a far more prudent choice than jeopardizing your future financial stability. If you are stuck with the above option taking a loan today is better not to use your Retirement corpus. Understanding the Spectrum of Educational Costs: When formulating your financial plan, it’s essential to consider the full range of expenses involved: Tuition Fees: The Cornerstone Expense: This will invariably be the most significant component of your educational budget. These fees fluctuate considerably based on the chosen course, the institution, and the country of study. Accommodation: A Major Variable: Whether your child studies domestically or internationally, accommodation costs represent another substantial expense. While some institutions offer on-campus housing, many students, especially those abroad, need to seek off-campus options, with varying associated costs. Cost of Living: Beyond Tuition and Housing: Students will also incur daily living expenses, including food, transportation, and recreational activities, which need to be factored into your planning. Health Insurance: A Non-Negotiable Expense: Health insurance is typically a mandatory cost, especially for students pursuing education abroad. The Impact of Inflation and Currency Fluctuations: When planning for your child’s future education, it’s crucial to acknowledge the eroding effect of inflation on all the aforementioned expenses. Furthermore, for overseas education, currency depreciation can significantly inflate costs. Some sources suggest that these costs can inflate by as much as 10% annually, a rate considerably higher than general inflation. (https://www.gyandhan.com/blogs/inflation-and-exchange-rate-effect-on-study-cost-in-usa) Therefore, proactive financial planning for your children’s education is not just advisable; it’s a necessity, regardless of whether their academic path leads them to local institutions or universities across the globe. It’s about strategically preparing to empower their academic journey without jeopardizing your own financial well-being. Why Early Planning is Crucial: The earlier you begin planning for your child’s education, the greater the benefits: Power of Compounding: Starting early allows your investments to benefit from the magic of compounding. This means that the earnings on your initial investment also start earning returns, leading to exponential growth over time. Smaller Contributions Over Time: Spreading your savings over a longer period means you can contribute smaller amounts regularly rather than facing a large financial burden closer to their educational years. More Investment Options: With a longer time horizon, you have more flexibility to explore various investment options that may carry slightly higher risk but also the potential for greater returns. Reduced Financial Stress: Knowing you have a plan in place can significantly reduce the stress and anxiety associated with funding your child’s education as they get older. Flexibility to Adapt: Early planning allows you to adapt your strategy if your child’s educational path changes or if unforeseen circumstances arise. Key Steps in Financial Planning for Education: Define Your Child’s Potential Educational Path and Estimate Costs: While it’s impossible to predict the future with certainty, start by considering the potential educational pathways your child might pursue. Will they attend private or public primary and secondary schools? Are you envisioning a local college or one out of state or even overseas? Research current education costs and factor in inflation. Historical inflation rates for education can provide a guideline, but it’s wise to err on the side of caution and project a reasonable increase. For example, if a bachelor’s degree currently costs ₹15 lakh, estimate what it might cost in 15-18 years, considering an average inflation rate of, say, 5-7% per annum. Don’t forget to include associated costs like accommodation, books, supplies, and living expenses if they plan to study away from home. Assess Your Current Financial Situation: Take a clear look at your current income, expenses, savings, and debts. Understand how much you can realistically allocate towards your child’s education fund without compromising your other financial goals, such as retirement planning or emergency savings. Identify potential sources of funding, including your regular income, existing savings, and any potential future inheritances or windfalls. Set Clear Financial Goals and Timelines: Based on your estimated costs and current financial situation, set specific financial goals for each stage of your child’s education (e.g., saving ₹X by the time they finish high school, ₹Y by the time they start their undergraduate degree). Establish clear timelines for achieving these goals. This will
Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio Exit Load HDFC Balanced Advantage Fund (G) 1994 4 90,375 1.37 For units in excess of 15% of the investment, 1% will be charged for redemption within 365 days ICICI Pru Balanced Advantage Fund Reg (G) 2006 2 58,717 1.48 For units in excess of 30% of the investment, 1% will be charged for redemption within 1 year Aditya Birla SL Balanced Advantage Fund (G) 2000 2 6,988 1.82 0.25% – 0-7 days 0.00% – >7 days Edelweiss Balanced Advantage Fund (G) 2009 2 11,697 1.69 Exit Load for units in excess of 10% of the investment,1% will be charged for redemption within 90 day Nippon India Balanced Advantage Fund (G) 2004 – 8,431 1.76 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days SBI Balanced Advantage Fund Reg (G) 2021 – 32,530 1.59 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Kotak Balanced Advantage Fund Reg (G) 2018 – 15,813 1.67 For units in excess of 8% of the investment, 1% will be charged for redemption within 365 days Axis Balanced Advantage Fund Reg (G) 2017 – 2,625 1.99 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Baroda BNP Paribas Balanced Advantage Fund 2018 – 3,833 1.89 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days HDFC Balanced Advantage Fund (G) : The fund was launched in the year 1994, it is CRISIL rated as 4 star, It has one of the largest portfolio fund size of 90,375 Cr. Expense ratio of 1.37. The fund offers an exit load for units excess of 15% of investment 1% < 1 Year of investment. ICICI Pru Balanced Advantage Fund Reg (G): This fund was launched in the year 2006, It is CRISIL rated as 2 star. It has another big size of 58,717 cr. Expense ratio of 1.48. Exit load applicable is for excess of units redeemed above 30% , 1% for less than 1 year. Aditya Birla SL Balanced Advantage Fund (G) : This again one the oldest funds in the industry launched in 2000, The fund has AUM of 6,988 cr. The fund has an expense ratio of 1.82. It offers an exit load of 0.25% for less than 7 days. Edelweiss Balanced Advantage Fund (G) : The fund was launched in the year 2009, It has AUm of 11,697. The fund has an expense ratio of 1.69. Exit Load for units in excess of 10% of the investment,1% will be charged for redemption within 90 day Nippon India Balanced Advantage Fund (G) : The fund was launched in the year 2004, unrated as per CRISIL, It has the fund size of 8,431. The fund has an expense ratio of 1.76. The exit load on the fund units in excess of 10% of investment 1% before 365 days. SBI Balanced Advantage Fund Reg (G) : The fund was launched in the year 2021, the size of the fund is 32,530 cr. The fund has an expense ratio of 1.59 . The expense ratio of the fund is excess of 10% of the investment 1% will be charged before 365 days. Kotak Balanced Advantage Fund Reg (G) : This fund was launched in the year 2018, Unrated as per CRISIL. The fund has a size of about 15,813 cr. The expense ratio of the fund is 1.67. Exit laid applicable is Units in excess of 8% at 1% before 365 days of investment. Axis Balanced Advantage Fund Reg (G): This fund was launched in the year 2017, It is still unrated by CRISIL. The fund has a small fund size of 2,625 cr. The expense ratio of the fund is 1.99. Exit load units in excess of 10% of investment charged at 1% before 365 days of investment. Baroda BNP Paribas Balanced Advantage Fund(G) : The fund was Launched in the year 2018, Currently unrated. The fund has a size of 3,833 cr. The expense ratio of the fund is 1.89. Exit load is units excess of 10% of investment 1% charged before 365 days. Trailing Returns : Scheme 6 months 1 year 3 years 5 years 7 years 10 years HDFC Balanced Advantage Fund (G) -4.27 10.21 20.14 28.95 15.65 13.55 ICICI Pru Balanced Advantage Fund Reg (G) -2.96 8.83 12.23 19.36 11.3 10.62 Aditya Birla SL Balanced Advantage Fund (G) -3.7 11.63 11.79 18.99 10.7 10.6 Edelweiss Balanced Advantage Fund (G) -6.03 8.19 11.2 18.02 12.22 10.08 Nippon India Balanced Advantage Fund (G) -4.51 9.16 12.01 17.34 10.99 9.57 SBI Balanced Advantage Fund Reg (G) -1.86 8.57 12.93 – – – Kotak Balanced Advantage Fund Reg (G) -4.21 9.8 11 18 – – Axis Balanced Advantage Fund Reg (G) -3.4 13.12 12.98 15.56 10.24 – Baroda BNP Paribas Balanced Advantage Fund -5.2 8.88 12.29 19.76 – – 1 year trailing 1st quartile : 10.5- 14% – Aditya Birla SL Balanced Advantage Fund (G), Axis Balanced Advantage Fund Reg (G) 2rd quartile : 7.0-10.5%- HDFC Balanced Advantage Fund (G), ICICI Pru Balanced Advantage Fund Reg (G), Edelweiss Balanced Advantage Fund (G), Nippon India Balanced Advantage Fund (G), SBI Balanced Advantage Fund Reg (G), Kotak Balanced Advantage Fund Reg (G), Baroda BNP Paribas Balanced Advantage Fund 3rth quartile : 3.5- 7.0% – No fund 4th quartile : >0-3.5% – No Fund 3 years trailing return 1st quartile : 17.25 – 21 : HDFC Balanced Advantage Fund (G) 2rd quartile : 13.5- 17.25 : No Fund 3rth quartile : 9.75- 13.5 : ICICI Pru Balanced Advantage Fund Reg (G), Aditya Birla SL Balanced Advantage Fund (G), Edelweiss Balanced Advantage Fund (G), Nippon India Balanced Advantage Fund (G), SBI Balanced Advantage Fund Reg (G), Kotak Balanced Advantage Fund Reg (G), Axis Balanced Advantage Fund
While we talk a lot about health insurance in personal finance and how it can protect the wealth creation of the family . It’s important to have accurate information about health insurance to make informed decisions and important to burst the most common myths associated with health insurance. Myth: With sufficient savings, health insurance is redundant. Fact: Some argue that personal savings make health insurance unnecessary. However, even large savings might prove insufficient to cover substantial medical costs, such as major surgeries or long-term hospital care. These costs may run into lakhs and with time spent in hospitalization of your near ones, you might face financial crunch. Myth: Health insurance is only for older people or I am young i do not need health cover Fact: Medical emergencies can happen to anyone at any age. Purchasing health insurance early can provide financial protection against unexpected medical bills. Younger individuals may also benefit from lower premiums and shorter waiting periods. Myth : You get coverage as soon as you buy the plan: Fact: Medical insurance plans often have waiting periods before certain illnesses are covered. Therefore, carefully read the policy wording when buying a plan to understand the claim eligibility timeline. A typical initial cooling period is 30 days, and longer waiting periods may apply to pre-existing and specified diseases. ( We will let you know what waiting periods are applicable to book your free consultation.) Myth: Employer-provided health insurance is enough. Fact: Employer-sponsored group health insurance often has limited coverage, less flexibility, and may not include add-ons. It also ceases when you leave the company. An individual health insurance plan can offer broader coverage tailored to your specific needs. Myth: The cheapest plan is the best option Fact: Beware of the biggest medical insurance myth: that price equals coverage. You can’t simply choose a plan based on how cheap it is; you must understand its features. Cheap plan may not cover even the basic features required. Health needs are personal, so your insurance should match your specific requirements. Aim for an affordable plan, but don’t equate the lowest price with the best value. Myth: Insurance companies cover all expenses in the event of hospitalisation: Fact: Don’t assume your health insurance will fully cover all hospital costs. Policies often have exclusions, co-payments, and waiting periods for pre-existing conditions. Moreover, insurers may only pay partially due to sub-limits. This can include caps on room rent (e.g., a percentage of the sum insured) and also apply to other expenses, such as non-admissible medicine purchases. Policyholders might also need to pay for incidental expenses. To avoid surprises, carefully review all policy details, including exclusions and all types of sub-limits. ( Do not worry we have done it for you , book you free consultation). Myth: Health insurance only covers hospitalization costs or Hospitalization is a must Fact: Unlike traditional plans, modern health insurance policies provide broad coverage encompassing more than just hospitalization. This includes pre- and post-hospitalization expenses, daycare treatments, diagnostic tests, and even alternative medicine options like Ayurveda and homeopathy. Notably, many policies now cover procedures like chemotherapy, radiotherapy, lithotripsy, dialysis, and eye surgery – often referred to as daycare procedures because they don’t necessitate a 24-hour hospital stay for claiming benefits. Myth : People who smoke and drink are not eligible for health insurance: Fact: The widespread belief that smokers and alcohol consumers are ineligible for health insurance is false. Insurance companies do provide coverage to these individuals. However, due to the increased health risks associated with these habits, they usually face higher premium costs and must undergo thorough medical check-ups before a policy is issued. Myth : Failing to renew health insurance on time will mean the loss of all benefits Fact : Health insurance policies usually offer a 15-30 day grace period for renewal without penalty, ensuring continuous benefits like pre-existing condition coverage and no new waiting periods. However, any medical treatment during the gap between expiration and renewal will not be covered. Myth: All health insurance policies are the same. Fact: Each health insurance policy differs in its inclusions, exclusions, coverage scope, and premium. It’s crucial to compare plans and choose one that aligns with your individual healthcare needs and budget. Myth: Pre-existing conditions are never covered. Fact: While there may be a waiting period (usually 1 to 4 years), most health insurance policies cover pre-existing conditions after this period. It’s essential to disclose any pre-existing conditions to your insurer during policy purchase to avoid claim rejections later. Myth : Network hospitals can only be found in big cities: Fact: Health insurance hospital networks are not just in major cities. Most providers have extensive networks reaching smaller cities and towns nationwide, offering cashless treatment options. Reimbursement is also typically available for covered services at non-network hospitals. Myth : Hiding pre-existing illnesses can help get insurance: Fact : Hiding pre-existing illnesses from insurance providers is not advisable. Insurance companies require their disclosure during policy purchase. If an undisclosed condition is found later during a claim, coverage may be denied. Myth: Filing a health insurance claim is a hassle. Fact: With increasing digitization, many insurers offer online claim submission processes. Additionally, cashless treatment at network hospitals eliminates the need for upfront payments and claim filing for those expenses. Myth: Maternity coverage is automatically included. Fact: Standard health insurance policies usually do not include maternity expenses. However, some plans offer maternity coverage as an add-on or as part of a family floater plan, often with a waiting period. Myth :Once You Have Insurance, You’re All Set Fact : It’s wrong to think of health insurance as a one-time purchase. Because health needs change over time, policyholders should periodically review their coverage to ensure it remains suitable. This might involve increasing the insured sum, adding riders, or changing policies to better fit their health goals, ensuring ongoing and sufficient protection. Myth : Policy documents can be discarded after the expiry of the policy Fact: Keep your expired health insurance documents safe. Third-Party
In today’s worlds where medical expenses are soaring, having a robust health insurance policy isn’t just a luxury; it’s a necessity. It’s a safety net that protects you and your family from unforeseen financial burdens during medical emergencies. Beyond the immediate relief of covering hospital bills, health insurance offers a multitude of benefits that contribute to overall well-being and peace of mind. Let’s delve into some of the top advantages of investing in a comprehensive health insurance plan. Financial Security During Medical Emergencies: This is arguably the most significant benefit. Unexpected illnesses or accidents can lead to hefty medical bills, including hospitalization, surgeries, and medication. Without insurance, these expenses can drain your savings and even push you into debt. Health insurance acts as a shield, covering these costs and allowing you to focus on recovery rather than financial worries. As shared by Mr Nithin Kamath “one hospitalization away from bankruptcy.( https://www.timesnownews.com/business-economy/companies/most-indians-risk-bankruptcy-without-adequate-health-insurance-says-billionaire-nithin-kamath-article-112964562) Coverage for Hospitalization Expenses: Health insurance typically covers a wide range of hospitalization expenses, including room rent, doctor’s fees, nursing charges, and operation theater costs. This ensures that you receive the necessary medical care without worrying about the financial implications. Protection Against Rising Healthcare Costs: Healthcare costs are consistently on the rise. A health insurance policy helps you stay ahead of this inflation, ensuring that you can access quality medical treatment without compromising your financial stability. With medical cost increasing, In india it is pegged somewhere between 10-15% ( https://medicalbuyer.co.in/medical-costs-in-india-likely-to-surge-by-13-2-in-2025/#:~:text=Medical%20costs%20in%20India%20are,detection%20and%20personalised%20treatment%20planning and https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/25-for-2025-what-will-it-take-to-ease-the-pain-of-medical-inflation-and-rising-premium-payments/articleshow/116816210.cms?from=mdr ) Coverage for Pre and Post-Hospitalization Expenses: Many plans cover pre-hospitalization expenses, such as diagnostic tests and consultations, as well as post-hospitalization expenses, including follow-up consultations and medication. This comprehensive coverage ensures a smooth recovery process. Access to Quality Healthcare: With a good health insurance policy, you can access a network of reputable hospitals and healthcare providers. This ensures that you receive quality medical treatment from experienced professionals. A good healthcare policy has listed a network of hospitals where you can get best treatments done without the worry of expenditure. Cashless Treatment: Many insurance providers offer cashless treatment at network hospitals. This means you don’t have to pay out of pocket; the insurance company directly settles the bill with the hospital, simplifying the process and reducing stress during a medical crisis. Coverage for Critical Illnesses: Some health insurance policies offer specific coverage for critical illnesses like cancer, heart disease, and kidney failure. These plans provide a lump sum amount upon diagnosis, which can be used for treatment and other related expenses. Organ transplant expenses : Health insurance can significantly reduce the overwhelming financial burden of an organ transplant.It helps cover the high costs of surgery, hospital stays, and lifelong medication. Having insurance provides access to specialized transplant centers and care.It offers peace of mind during a critical and stressful medical situation. Preventive Health Check-ups: Many insurers offer free annual or bi-annual health check-ups. These check-ups can help detect potential health issues early, allowing for timely intervention and preventing serious complications. Tax Benefits: In India, premiums paid towards health insurance are eligible for tax deductions under Section 80D of the Income Tax Act. This can help you reduce your taxable income and save money. Peace of Mind: Perhaps the most invaluable benefit is the peace of mind that comes with knowing you and your family are protected. Knowing that you have a safety net in place allows you to live a more relaxed and stress-free life. Choosing the Right Policy: Selecting the right health insurance policy is crucial. Consider factors such as coverage, premium, network hospitals, claim settlement ratio, and additional benefits. It’s essential to compare different plans and choose one that best suits your needs and budget. We have enlisted the best features for you to consider before buying a health insurance plan in our blog (https://wealthinn.in/your-ultimate-guide-to-choosing-the-best-health-insurance-plans-in-india/) In Conclusion: Investing in a health insurance policy is a wise decision that safeguards your financial well-being and ensures access to quality healthcare. It’s a proactive step towards protecting your health and securing your future. Don’t wait for a medical emergency to realize the importance of health insurance. Take the step today and invest in your peace of mind. Reach us to help you select the best possible plan for you . Click the link https://wealthinn.in/health-insurance/ for a free consultation.
Financial planning in simple terms is a regular approach to meet one’s life financial goals. Financial planning is a process which provides you a systematic and planned way to reach these goals while avoiding any surprises . A financial plan acts as a guide throughout your life’s journey. In today’s fast-paced world, it’s easy to feel overwhelmed by financial pressures. Whether you’re saving for a down payment, planning for retirement, or simply trying to make ends meet, a solid financial plan can provide the clarity and confidence you need to achieve your goals. A Financial planner is the one who is a qualified investment professional who helps individuals meet their long-term financial objectives or goals. These professionals do their work by consulting with clients to analyse their goals, risk tolerance , and life stages , and identify suitable classes of investments for them. Why is Financial Planning Important? Increase saving : Though saving can be done without a financial plan , when you plan you get a good deal of insights on how you are saving and what expenses can you cut down. Achieve your goals: A financial plan provides a clear path to achieving your financial aspirations. Reduce stress: Knowing where your money is going can alleviate financial anxiety. Build wealth: Effective financial planning can help you grow your wealth over time. Prepare for the unexpected: A solid plan can help you weather financial storms. A solid financial planning is a very important instrument for personal finance, so lets look at what are the key steps. Key Steps to Financial Planning: Realistic Goals: Start by identifying your short-term, medium-term, and long-term financial goals and assigning them priorities. Make sure your goals are specific, measurable, achievable, relevant, and time-bound (SMART). Eg. How much would you need for child education and when would that be required. Create a Budget: Track your income and expenses. Identify areas where you can cut back. Make an elaborate sheet of all your income sources and expenses. You can use spreadsheet to look at them ( we have one created which we been using since last 10 years ) Manage Debt: Prioritize paying off high-interest debt. Consider debt consolidation options. Invest Wisely: Diversify your investments to reduce risk. Consider your risk tolerance and time horizon. Seek professional advice if needed. Protect Your Assets: Ensure you have adequate health, life, and property insurance. Create an emergency fund to cover unexpected expenses. Make Asset allocation The all the above culminates into your assets allocation What all assets and how much amount you can hold Review and Adjust: Regularly review your financial plan and make adjustments as needed As you grow your income, expenditure and lifestyle changes, you need to keep changing the plan along the way It’s not just limited to individuals, a lot of external factors also change. Seeking Professional Advice: While you can create a financial plan on your own, consider seeking advice from a qualified financial advisor. They can provide personalized guidance and help you make informed decisions. We will discuss about some duties and responsibilities of a financial planner Provide financial planning and investment advisory services Research and present investment strategies Develop and execute goals planning Implement risk management and tax planning strategies Help with estate planning Help to develop financial plan and execute the same with client Keep reviewing and make changes as and when required . In Conclusion: Think of financial planning as mapping out a journey to your desired financial future. This article delved into why creating such a plan is crucial, and provided practical steps. However, a plan remains just an idea until it’s put into action. The sooner you begin implementing your financial strategy, the simpler the process becomes, and your odds of reaching your objectives significantly improve. So, what’s holding you back? We trust you found this information valuable. If so, please consider sharing it with your network, so more people can be benefited . Should any aspect of our explanation require further clarification, please don’t hesitate to ask in the comments below or reach us . We’ll be happy to provide answers.
As your trusted financial advisor, I’ve observed market cycles, each presenting unique challenges and opportunities. The current correction, initiated in September 2024, is no exception. It’s a moment that tests our resolve and underscores the importance of a well-defined, long-term investment strategy. I understand the anxieties and questions many of you are grappling with: “Should I pause my SIP?” “Is it time to liquidate my holdings?” These are valid concerns, and I’m here to provide clarity and guidance, grounded in both experience and data. The Emotional Rollercoaster of Investing: A Human Element Let’s acknowledge the human element in investing. It’s not just about numbers; it’s about emotions. The surge from March 2023 to September 2024 generated a wave of optimism, with many investors eagerly participating in the market’s upward trajectory. However, the subsequent downturn has triggered a stark shift in sentiment, often leading to impulsive decisions driven by fear. This emotional pendulum swing is a natural human response. We are wired to seek immediate gratification and avoid pain. During bull markets, the constant positive feedback loop reinforces our belief in the market’s invincibility. Conversely, during corrections, the sight of red on our portfolio statements can be deeply unsettling. The Fundamental Principle: Rupee-Cost Averaging and Its Practical Application It’s crucial to revisit the core principle that underpins our SIP strategy: rupee-cost averaging. This approach is designed to mitigate the impact of market volatility by investing a fixed sum at regular intervals. When markets are high, your investment buys fewer units; when they are low, it buys more. This inherently averages out your purchase price over time, reducing the risk of timing the market. However, the psychological challenge lies in maintaining discipline during downturns. The allure of locking in gains during bull markets and the fear of further losses during corrections can tempt us to deviate from our long-term strategy. Illustrative Case Studies: Lessons from the Past, Data-Driven Insights To illustrate the power of disciplined investing, let’s examine the experiences of three hypothetical investors during the period from May 2014 to February 2025. We’ll use actual fund performance data to provide concrete insights. Scenario: Fund: ICICI Pru Bluechip Fund Regular Growth Investment: ₹30,000 per month Investment Date: 3rd of each month Investor Profiles: Mr. A: Stopped investing after a market peak in March 2015. Mr. B: Considered stopping after two years, seeing minimal returns in April 2016. Mr. C: Continued investing consistently through February 2025. Amount invest till 03 March 2015 Value of investment 03 March 2015 XIRR 03 March 2015 Amount invest till 04 April 2016 Value of investment 04 April 2016 XIRR 04 April 2016 Amount invest till 28 February 2025 Value of investment 28 February 2025 XIRR 28 February 2025 Mr A ₹330,000.00 ₹380,676.25 40.15 ₹330,000.00 ₹339,237.09 1.85 ₹330,000.00 ₹1,180,770.67 13.05 Mr B ₹330,000.00 ₹380,676.25 40.15 ₹720,000.00 ₹722,348.10 0.34 ₹720,000.00 ₹2,514,251.72 13.50 Mr C ₹330,000.00 ₹380,676.25 40.15 ₹720,000.00 ₹722,348.10 0.34 ₹3,900,000.00 ₹9,250,544.68 15.18 Analysis Let’s look at each investor’s journey. Mr. A: By March 3, 2015, Mr. A had invested ₹330,000. His investment value was ₹380,676.25, with an XIRR of 40.15%. However, he stopped investing at this point. By February 28, 2025, his final investment value was ₹1,180,770.67, with an XIRR of 13.05%. Mr. B: Like Mr. A, Mr. B’s investment by March 3, 2015, was ₹330,000, with a value of ₹380,676.25 and an XIRR of 40.15%. By April 4, 2016, after two years, his invested amount was ₹720,000, and his investment value was ₹722,348.10, with an XIRR of only 0.34%. He considered stopping then. However, by February 28, 2025, his investment value was ₹2,514,251.72, with an XIRR of 13.50%. Mr. C: Mr. C also started with the same figures as Mr. A and B, but he continued investing. By April 4, 2016, he was in the same position as Mr. B, with an invested amount of ₹720,000, a value of ₹722,348.10, and an XIRR of 0.34%. However, by February 28, 2025, with a total invested amount of ₹3,900,000, his investment value was ₹9,250,544.68, with an XIRR of 15.18%. Detailed Observations: Mr. A achieved a high initial XIRR but missed substantial long-term growth by stopping his SIP. If he had withdrawn his money at the 40.15% XIRR, he would have only made roughly 50,000 rupees. Mr. B faced a challenging period with minimal returns after two years, nearly halting his SIP. However, by staying invested, he achieved a respectable long-term return. Mr. C demonstrated the power of consistent investing, achieving the highest returns and wealth accumulation. He remained invested through market fluctuations. Key Insights and Takeaways from the Data: Long-Term Growth Wins: Mr. C’s results highlight the benefits of staying invested. Avoid Emotional Decisions: Mr. A and Mr. B’s experiences show the dangers of reacting to short-term market changes. The Power of Averaging: Market corrections allow for buying more units at lower prices. Wealth Creation is a Marathon: Longer investment periods yield better results. Navigating the Current Correction: A Practical, Data-Informed Approach In light of the current market correction, I urge you to adopt a proactive and disciplined approach, informed by the data we’ve reviewed. Portfolio Review: Ensure your asset allocation aligns with your risk tolerance and long-term goals. Continue Your SIP: Maintain your regular investments to capitalise on rupee-cost averaging. Resist Market Timing: As the data shows, consistent investing outperforms attempts to time the market. Stay Informed, Not Overwhelmed: Filter out market noise and focus on your long-term strategy. Consult Your Advisor: Let’s discuss your concerns and ensure your portfolio remains aligned with your evolving needs. The Indispensable Role of a Trusted Advisor As your advisor, my primary responsibility is to guide you through market cycles, providing data-driven insights and emotional support. I understand the challenges of investing, and I’m here to help you make informed decisions that align with your financial goals. Let’s schedule a time to discuss your specific concerns and refine your plan. By working together, we can navigate this market correction and ensure your portfolio remains aligned with your long-term goals. Please
A medical emergency requiring hospitalisation brings significant anxiety. During such times, the security of a health insurance plan is paramount. We invest in these plans expecting our medical bills to be covered, allowing us to focus on recovery. However, the distress of a rejected claim, forcing out-of-pocket payments, can be devastating. According to the Insurance Regulatory and Development Authority of India’s (Irdai’s) annual report for 2023-24, health and general insurers paid 82% of claims by volume and 71.3% by value (Rs 1.17 crore). However, of the remaining 28.7% by value, nearly 13% were rejected, and over 9% were repudiated. Understanding the difference between rejection and repudiation is essential. “Rejection” typically occurs before a detailed review, often due to incomplete information and is reversible. “Repudiation” results from a thorough review, where the insurer determines the claim is not covered under the policy’s terms. Incorrect or Incomplete Information: Errors in claim forms, such as incorrect policy numbers, misspelled names, or inaccurate medical details, are a primary cause of claim denials. These errors lead to significant rework, prolonged communication, and considerable anxiety for policyholders. To minimise these issues, it is strongly recommended that you personally complete all application and claim forms. Relying on agents or other individuals can increase the risk of inaccuracies, as they may lack complete or up-to-date information. Solution: Thoroughly verify all information before submitting a claim, ensuring it aligns precisely with your policy documents and medical records. Furthermore, utilizing cashless claim facilities at network hospitals can significantly reduce the potential for errors and streamline the claim process. Discrepancies in Diagnosis, Treatment, and Pre-Authorization: Inconsistencies between the diagnosis or treatment listed on the claim form and the corresponding medical records, or treatments falling outside the policy’s coverage, can lead insurers to view claims as potentially fraudulent, resulting in denial. Furthermore, many treatments or procedures necessitate prior approval, or pre-authorization, from the Best insurance company Delhi. Proceeding with such treatments without obtaining the required approval will likely result in claim rejection. Solution: To prevent denials due to discrepancies or lack of pre-authorization, it is crucial to seek pre-authorization from your insurer for any non-routine or costly treatments before commencing them. Treatments undertaken without the insurer’s prior approval may not be eligible for reimbursement. Non-Disclosure of Pre-Existing Conditions: Failure to disclose pre-existing medical conditions during policy purchase can lead to claim rejection. While some individuals may conceal this information to avoid higher premiums or policy denial, this practice is strongly discouraged. It’s important to note that, regrettably, some advisors may suggest concealing information to facilitate a sale. However, this is unethical and ultimately detrimental to the policyholder. Solution: Honesty and transparency regarding your medical history are paramount when applying for insurance. It is crucial to declare all pre-existing conditions and relevant family medical history. This ensures accurate policy issuance and prevents future claim denials. Claims During the Waiting Period: Most health insurance policies include waiting periods for specific conditions or treatments. Claims submitted within these periods will be denied. It is essential to understand these waiting periods when purchasing a policy. Typically, there are three main types: Initial 30-Day Waiting Period: This is a standard period at the beginning of the policy. Waiting Period for Specified Illnesses: This period applies to specific conditions listed in the policy. Waiting Period for Pre-Existing Diseases: This period applies to conditions present before the policy’s inception. These waiting periods are detailed in policy brochures and policy wordings. Solution: Thoroughly understand your policy’s waiting periods and plan treatments accordingly. Reputable advisors should clearly explain these periods. At Wealthinn, we prioritize transparency by providing comprehensive information about waiting periods to our customers from the outset. Policy Lapses Due to Non-Payment of Premiums: Failure to pay premiums on time results in policy lapse, suspending coverage and leading to claim rejections. Once a policy expires due to non-renewal, the insurer is not obligated to cover medical expenses. Every policy has a defined validity period, requiring renewal through premium payment before the due date. While a grace period is typically provided, its duration varies between insurers. Exceeding both the due date and the grace period renders the policy null and void. Solution: Maintain continuous coverage by ensuring timely premium payments. Consider setting up automatic payments to avoid missed deadlines. Here’s a refined version of that section, focusing on clarity, professionalism, and a more effective presentation of your video resource: Treatments Not Covered by the Policy (Exclusions): Health insurance policies contain a comprehensive list of exclusions, detailing treatments and procedures that are not covered. Claims for excluded treatments will be denied. Common exclusions often include: Dental treatments Mental health conditions Outpatient department (OPD) expenses Maternity-related claims For a more detailed explanation of common exclusions, please refer to our video : Click here to check the video Solution: Thoroughly review your policy documents to understand the specific list of exclusions. While our video provides a general overview, it is essential to consult your individual policy documents for precise details. Policy documents are the only source of truth for your specific policy coverage. Check here the video. Delay in Claim Intimation or Filing: Insurance companies establish strict deadlines for claim notification. Each policy has a specific timeframe within which the insurer must be informed of a claim. Failure to notify the insurer within this stipulated period can result in claim denial. Delays in claim intimation significantly jeopardize the chances of a successful claim. Solution: Familiarize yourself thoroughly with your insurer’s claim notification deadlines and adhere to them strictly. These deadlines are typically outlined in your policy documents. Utilizing your insurer’s mobile application can provide convenient access to these deadlines and streamline the notification process. Exhaustion of Sum Insured: When medical expenses surpass the policy’s sum insured, the excess amount is not covered. If the sum insured has been fully utilized in previous claims within the same policy year, no further claims can be filed. Similarly, if a single claim exceeds the sum insured, the insurer will only reimburse up to the limit of