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
Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio Exit Load JM flexi cap fund 2008 5 star 5,012 1.81% <30 days 1% ; >30 days 0% HDFC Flexi cap 1995 4 star 66,344 1.42% <1 year 1% ; >1 year 0% Franklin India flexi cap fund 1994 4 star 17,947 1.70% 1.00% – 0-1 years 0.00% – >1 years Motilal Oswal Flexi Cap fund 2014 5 Star 13,162 1.72% 1.00% – 0-1 years 0.00% – >1 years Parag Parikh flexi cap fund 2013 4 Star 87,539 1.33% 2.00% – 0-365 days 1.00% – 365-730 days 0.00% – >730 days Kotak Flexi Cap 2009 2 star 50,426 1.47% 1.00% – 0-1 years 0.00% – >1 years DSP Flexi Cap 2007 3 Star 11,569 1.72% 1.00% – 0-12 months 0.00% – >12 months ABSL Flexi Cap fund 1998 3 Star 22,174 1.68% 1.00% – 0-90 days 0.00% – >90 days PGIM India flexi cap fund 2015 1 star 6,354 1.78% 0.50% – 0-90 days 0.00% – >90 days Quant Flexi cap fund 2008 – 7,185 1.80% 1.00% – 0-15 days 0.00% – >15 days Invesco India Flexi Cap 2022 – 2,576 1.96% 1.00% – 0-1 years 0.00% – >1 years JM flexi cap fund : The fund was launched in the year 2008, Currently CRISIL rated 5 , The fund has an expense ratio of 1.81% as the current fund size is very low. The exit load of the fund is 1% for less 30 days. HDFC Flexi cap : This is one of the oldest funds in the category launched in 1995, So a long history for the fund. Currently CRISIL is rated 4 Star. The fund enjoy’s one of the highest portfolio size of 66,344 cr , with a low expense ratio of 1.42%. Exit load is 1% for redemption less than 1 year. Franklin India flexi cap fund : This is the oldest fund in the category launched in 1994, Crisil rated 4 star. Due lack of distribution and loss of reputation during the debt crisis the fund size is low 17,947 cr , expense ratio is 1.70%. Exit load is 1% for redemption less than 1 year. Motilal Oswal Flexi Cap fund : The fund was launched in 2014, it is rated by Crisil as 5 star. The fund has a fund size of 13,162 cr with expense ratio of 1.72%. Exit load of the fund is 1% for less than 1 year. Parag Parikh flexi cap fund The fund was launched in 2013, Currently CRISIL rated as 4 star, has the highest AUM in the category of 87,539 cr, the lowest expense ratio of 1.33%. The fund has exit load 2% for redemption before 1 year and 1% for redemption before 365-730 days. Kotak Flexi Cap The fund was launched in the year 2009, currently CRISIL rated as 2 star. It has AUM of 50,426 Cr, 3rd largest AUM in the category. Low expense ratio of 1.47% . 1% for redemption before 1 year. DSP Flexi Cap The fund was launched in the year 2007, Currently CRISIL rated 3 star. The current AUM is 11,569 Cr, with expense ratio of 1.72%. 1% for redemption before 1 year. ABSL Flexi Cap fund Another fund with a long history launched in 1998, Currently rated 3 star. The portfolio size of 22,174 cr, expense ratio is 1.68% . Exit load of the fund is 1% for 90 days. PGIM India flexi cap fund The fund was launched in 2015, currently rated as 1 star. The fund has a small fund size of 6,354 cr. Expense ratio of 1.78%.Exit load 0.5% for the 90 days. Quant Flexi cap fund The fund was launched in 2008 , currently not rated by CRISIL. The fund has AUM Of 7,185 Cr. Expense ratio of 1.80%. Exit load for the fund is 1% before 15 days of investment. Invesco India Flexi Cap The fund is a recent addition to the category, launched in the year 2022. Currently not rated by CRISIL . The fund size is small of 1,985 cr. Expense ratio of 1.96%. Exit load for the fund is 1% before 1 year of redemption. Trailing Returns : Scheme 1 Year 2 Year 3 Year 5 Year 7 Year 10 Year 15 Year JM Flexi Cap Fund (G) 18.21 34.2 23.28 22.28 18.09 16.14 13.99 HDFC Flexi Cap Fund Reg (G) 18.52 26.74 21.59 22.61 16.12 14.45 15.26 Franklin India Flexi Cap Fund (G) 14.92 25.2 16.36 20.78 14.77 13.48 15.29 Motilal Oswal Flexi Cap Fund Reg (G) 27.66 34.12 19.31 16.06 11.74 13.59 – Parag Parikh Flexi Cap Fund Reg (G) 18.18 26.84 17.58 23.73 19.36 17.55 – Kotak Flexi Cap Fund Reg (G) 13.43 19.55 13.36 15.12 13 12.74 14.71 DSP Flexi Cap Fund Reg (G) 15.02 23.46 13.59 16.55 14.47 13.13 13.94 Aditya Birla SL Flexi Cap Fund Reg (G) 13.65 21.33 12.94 16.02 12.68 13.03 13.91 PGIM India Flexi Cap Fund (G) 13.49 17.84 8.58 18.85 14.43 – – Quant Flexi Cap Fund (G) -1.29 24.25 15.68 30.19 19.32 18.05 12.28 Invesco India Flexi Cap Fund Reg (G) 21.62 29.83 – – – – – 1 year trailing 1st quartile : 21-28% : Motilal Oswal Flexi Cap Fund Reg (G), Invesco India Flexi Cap Fund Reg (G) 2rd quartile : 14-21% : JM Flexi Cap Fund (G), HDFC Flexi Cap Fund Reg (G), Franklin India Flexi Cap Fund (G), Parag Parikh Flexi Cap Fund Reg (G), DSP Flexi Cap Fund Reg (G) 3rd quartile : 7- 14% : Kotak Flexi Cap Fund Reg (G), Aditya Birla SL Flexi Cap Fund Reg (G), PGIM India Flexi Cap Fund (G) 4th quartile : <0-7 % : Quant Flexi Cap Fund (G) 3 years trailing return 1st quartile : 19.75-24% : JM Flexi Cap Fund (G), HDFC Flexi Cap Fund Reg (G) 2rd quartile : 15.5- 19.75% : Franklin India Flexi Cap Fund (G), Motilal Oswal Flexi Cap Fund Reg
Choosing the right health insurance plan can feel like navigating a maze. With so many options available in India, it’s easy to get overwhelmed. But don’t worry! This guide will walk you through seven crucial tips to help you select the perfect health insurance plan for your needs and budget. A well-chosen plan can be your financial safety net during medical emergencies, so let’s get started! Consider the claim settlement ratio and Complaints per 10000 of policy claims Look for insurers with a high claim settlement ratio, which indicates their efficiency in processing claims. A high claim settlement ratio indicates the insurer’s reliability in paying out claims. Research the insurer’s claim settlement history and look for a good track record. But this also has pitfalls in which an insurer might pass small claims but do not clear the large amount claims. So, also look at how many complaints are being registered per 10000 of policy claims. This Would help give you a much better idea on if your insurer is fair in its settlement or people have to register complaints. Assess Your Healthcare Needs: Before diving into policies, take a moment to understand your individual and family’s health care requirements. Consider factors like age, pre-existing conditions, family medical history, and lifestyle. Are you looking for basic coverage or something more comprehensive? Do you need coverage for specific illnesses? Do you need maternity benefits? Do you need OPD benefits? Answering these questions will help you narrow down your options and avoid paying for unnecessary features. Understand the Coverage and Benefits: Don’t just focus on the premium; scrutinize the policy’s coverage and benefits. Look for details on: Inclusions: What treatments, surgeries, and hospital expenses are covered? Exclusions: What isn’t covered by the policy? Pay close attention to these to avoid surprises later. Waiting Period: How long do you have to wait after purchasing the policy before you can claim for certain treatments? Sub-limits: Are there any caps on coverage for specific treatments or procedures? Co-pay and Deductibles: Understand how much you’ll have to pay out of pocket. A lower premium might mean higher co-pay, so find the right balance. Compare Premiums and Policy Features: Don’t just settle for the first policy you see. Compare premiums and features from different insurers. We have done policy comparison feature by feature for your benefit , reach out to us for the same ( Book your free Consultation). Remember, the cheapest policy isn’t always the best. Balance affordability with adequate coverage. Opt for a plan with lifetime renewability: This will ensure continuous coverage even as you age and your healthcare needs increase. Many policies might not provide you cover beyond a certain age , which means when you require them at later stage of your life they might not provide you the cover needed. Check the network hospitals: Choose a plan with a wide network of hospitals in your area. This will ensure cashless hospitalization and reduce out-of-pocket expenses. A wider network means more choices and potentially cashless hospitalization, which can be a huge relief during a medical emergency. Prioritize insurers with hospitals convenient to your location. A cashless facility helps and saves a lot of time and effort , so choose a policy which has maximum network list of hospitals. Read the Policy Wordings Carefully and seek Expert Advice : Before signing on the dotted line, thoroughly read the policy wordings. This document contains all the details about the policy, including terms and conditions, coverage, exclusions, and claim procedures. Don’t hesitate to ask questions if you have any doubts. If you’re feeling overwhelmed, consider consulting a financial advisor or insurance agent. They can help you understand the different policy options and recommend a plan that aligns with your specific needs and budget. They can also clarify any complex terms and conditions. We have completely done that exercise for you . You can reach us to understand the policy terms and conditions ( Book your free consultation Today). Conclusion : Choosing health insurance is a big decision. Take your time, do your research, and don’t hesitate to ask questions. You can reach us with your queries and book free consultations. The right plan can give you invaluable peace of mind.
Comprehensive health insurance plan is no longer a luxury, but a necessity. Choosing the right health insurance can feel overwhelming with so many options available. This guide will walk you through the key factors to consider, helping you make an informed decision and find the best health insurance plan for your needs. At WealthInn , we understand the importance of financial security and offer expert guidance to help you navigate these crucial decisions. Why Health Insurance is Crucial in India: Rising healthcare costs, coupled with an increasing prevalence of lifestyle diseases, make health insurance an indispensable tool for financial planning. A robust health insurance policy acts as a financial safety net, protecting you from unexpected medical expenses that can otherwise deplete your savings. It ensures access to quality healthcare without the burden of hefty out-of-pocket payments. Factors to Consider When Choosing a Health Insurance Plan: Choosing the right health insurance involves careful consideration of several factors. Don’t just pick the first plan you see. A well-informed decision will ensure you have the coverage you need when you need it most. Coverage Amount (Sum Insured): This is the maximum amount your insurer will pay for covered medical expenses during the policy period. Consider your family’s health history, potential medical needs, and the rising cost of healthcare when determining an appropriate sum insured. WealthInn can help you assess your needs and determine the right coverage amount. Types of Health Insurance Plans: Several types of health insurance plans are available in India, including: Individual Health Insurance: Covers a single individual. Family Floater Plans: Covers the entire family under a single policy. Senior Citizen Health Insurance: Designed specifically for individuals above a certain age. Critical Illness Insurance: Covers specific life-threatening illnesses. Top-up Plans: Supplements an existing health insurance policy to provide additional coverage. Network Hospitals: Check the insurer’s network of hospitals. A wider network ensures cashless hospitalization, making the claims process smoother. Prioritize insurers with a strong presence in your city and preferred healthcare facilities. Waiting Period: Most policies have a waiting period for certain treatments. Understanding these waiting periods is crucial to avoid surprises later. Premium: While a lower premium might seem attractive, it’s essential to balance affordability with comprehensive coverage. Don’t compromise on essential benefits for a slightly lower premium. WealthInn (www.wealthinn.in) can help you find cost-effective plans that meet your needs. Co-pay and Deductibles: Understand the co-pay (percentage of the claim you pay) and deductible (amount you pay before the insurance kicks in). These can significantly impact your out-of-pocket expenses. Claim Process: A hassle-free claim process is crucial. Choose an insurer with a good track record of claim settlements and efficient customer service. Renewability: Ensure the policy is renewable for a lifetime, providing continuous coverage. Exclusions: Carefully review the policy document for exclusions – treatments or conditions not covered by the policy. How WealthInn (www.wealthinn.in) Can Help: Navigating the complex world of health insurance can be challenging. WealthInn (www.wealthinn.in) provides expert guidance and personalized solutions to help you choose the best health insurance plan for your specific needs and budget. We can help you: Compare plans from leading insurers: We analyze various plans to find the best fit for you. Understand policy terms and conditions: We simplify complex jargon and ensure you understand your coverage. Get personalized recommendations: We consider your individual needs and provide tailored advice. Simplify the application process: We assist you with the paperwork and ensure a smooth experience. Conclusion: Investing in health insurance is a crucial step towards securing your financial future and ensuring access to quality healthcare. By carefully considering the factors outlined in this guide and leveraging the expertise of WealthInn , you can make an informed decision and choose the best health insurance plan for you and your family. Don’t wait until a medical emergency strikes – secure your health and finances today! Book your Free consultation Today !!!
Fund Name Year Of Inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios Exit Load ICICI Pru blue chip fund 2008 5 63,938 1.45 19.11 1% for redemption within 365 days Nippon India large cap fund 2007 5 35,313 1.57 20.13 1% for redemption within 7 days JM large cap fund 1995 4 495 2.36 20.52 1% for redemption within 30 days HDFC Large Cap fund 1996 4 36,587 1.61 16.44 1% for redemption within 365 days Aditya birla Frontline equity 2002 3 29,323 1.65 19.69 1% for redemption within 90 days Canara Robeco Bluechip Equity fund 2010 3 14,824 1.66 22.14 1% for redemption within 365 days SBI blue chip Fund 2006 2 50,502 1.5 22.52 1% for redemption within 365 days Mirae asset large cap fund 2008 1 39337 1.52 10.47 1% for redemption within 365 days DSP Top 100 Equity Fund Reg (G) 2003 4 4,530 1.93 15.76 1% for redemption within 364 days WhiteOak Capital Large Cap Fund Reg (G) 2022 – 661 2.33 21.74 1% for redemption within 30 days Invesco India Large cap Fund (G) 2009 4 1,317 2.09 22.88 0 ICICI Pru blue chip fund : The fund has the highest AUM in the category , launched in the year 2008, The fund enjoys CRISIL 5 star rating. The fund size is 63,938 cr, Low expense ratio of 1.45. The fund has PE of 19.11. The exit load of the fund is 1% before 365 days. Nippon India large cap fund : The fund was launched in the year 2007, is Crisil 5 star rated fund, with portfolio size of 35,313 cr. Expense ratio of 1.57. The PE of the fund is 20.13. Exit load is 1% for redemption within 7 days. JM large cap fund The fund was launched in the year 1995, Is CRISIL 4 star rated fund, with portfolio size of just 495 cr and high expense ratio of 2.36. The Current PE of 20.52. Exit load of the fund is 1% for redemption within 30 days. HDFC Large Cap fund The fund was launched in 1996, It is CRISIL rated 4 star. The fund enjoys a good portfolio size of 36,587 cr. The expense ratio of the fund is 1.61. The PE of the fund is 16.44. Exit load 1% for redemption within 365 days. Aditya birla Frontline equity The fund was launched in 2002, CRISIL rated 3. It has a good fund size of 29,323 cr. The expense ratio of the fund is 1.65. PE of the fund is 19.69. Exit laid of the fund is 1% for redemption within 90 days. Canara Robeco Bluechip Equity fund The fund was launched in 2010, Currently rated as 3 star by CRISIL. The fund size is 14,824 cr. The expense ratio of 1.66. The PE of the fund is 22.14.Exit load is 1% for the redemption within 365 days. SBI blue chip Fund The fund was launched in the year 2006, This is the second largest fund in AUM at 50,502 cr. The fund is CRISIL rated at 2. The expense ratio of the fund is 1.5. PE of the fund is 22.52. Exit load of the fund is 1% for redemption within 365 days. Mirae asset large cap fund The fund was launched in 2008, CRISIL rated 1 star. This is the 3rd largest fund by AUM in the category 39,337 cr. The expense ratio of the fund is 1.52. The PE of the fund is 10.47. Exit load of the fund is 1% for redemption within 365 days. DSP Top 100 Equity Fund Reg (G) The fund was launched in 2003, CRISIL rated 4 star. The fund size is 4,530 cr. The Expense ratio is 1.93. The PE of the fund is 15.76. Exit load of the fund is 1% for redemption within 365 days. WhiteOak Capital Large Cap Fund Reg (G) The fund was recently launched in 2022, no CRISIL rating. The fund size is 661 cr. The expense ratio is 2.33. The PE of the fund is 21.74. Exit load of the fund was 1% for redemption for 365 days. Invesco India Large cap Fund (G) The fund was launched in 2009, CRISIL rated 4 star. Fund size of 1,317 cr. The expense ratio is 2.09. The PE of the fund is 22.88. The does not have any exit load. Trailing Returns : Scheme 1 Year 3 Year 5 Year 7 Year 10 Year 15 Year Nippon India Large Cap Fund (G) 12.23 16.78 18.12 13.73 13.51 13.9 ICICI Pru Bluechip Fund Reg (G) 12.11 13.83 17.41 13.63 13.46 14.11 JM Large Cap Fund (G) 7.99 12.09 16.26 12.2 10.53 9.56 HDFC Large Cap Fund (G) 7.26 13.96 15.99 12.34 11.97 12.45 Aditya Birla SL Frontline Equity Fund Reg (G) 10.79 10.96 15.52 11.58 11.9 12.6 Canara Robeco Bluechip Equity Fund (G) 12.7 10.35 16.08 14.35 13.05 – SBI Blue Chip Fund Reg (G) 9.51 10.42 15.22 11.8 12.49 12.61 Mirae Asset Large Cap Fund Reg (G) 8.33 7.91 13.45 11.25 12.73 13.96 DSP Top 100 Equity Fund Reg (G) 16.74 13.41 13.9 11.5 10.86 10.91 WhiteOak Capital Large Cap Fund Reg (G) 15.09 – – – – – Invesco India Largecap Fund (G) 13.8 11.04 16.31 12.97 12.51 12.19 1 Year Trailing return 1st Quartile : 14-17% – DSP Top 100 Equity Fund Reg (G), WhiteOak Capital Large Cap Fund Reg (G) 2nd Quartile : 11-14% – Nippon India Large Cap Fund (G), ICICI Pru Bluechip Fund Reg (G), Canara Robeco Bluechip Equity Fund (G), Invesco India Largecap Fund (G) 3rd Quartile : 8- 11% –JM Large Cap Fund (G), HDFC Large Cap Fund (G), Aditya Birla SL Frontline Equity Fund Reg (G), SBI Blue Chip Fund Reg (G), Mirae Asset Large Cap Fund Reg (G) 4rth Quartile : 5- 8% – no fund 3 Year Trailing Return 1st quartile : 14-17%- Nippon India Large Cap Fund (G) 2nd quartile : 11-14%-ICICI
Choosing the right investment avenue can be a daunting task, especially when considering long-term financial goals like retirement or a child’s education. Two popular options that often come into the spotlight are Equity-Linked Savings Schemes (ELSS) Public Provident Fund (PPF). Both offer tax benefits, but they differ significantly in terms of risk, return potential, and liquidity. In this article, we’ll delve into the key differences between ELSS and PPF to help you make an informed decision. We are not going to discuss here the products, as i think people are aware of the features of both The question was why do people prefer Public provident fund ( PPF) Offer Guaranteed returns Tax benefit under section 80C, when you invest The interest earned was tax free The maturity is tax free As an advisor I have been an advocate of PPF, BUT PPF has underperformed ELSS in a big way. Lets look at the returns made over the years , if person deposits Rs 1,00,000 every year on 31 March , since 2000 to 31 March 2024 , a close 25 years of investment For our article’s sake I have taken the HDFC tax Saver fund Growth Regular plan. The Outperformance 15 years – PPF made Rs 27,78,383.76 vs ELSS Rs85,28,783.14 i.e 3 times of PPF amount 20 Years – PPF made you Rs 47,16,594.97 Vs ELSS Rs 1,68,92,247.22 i.e 3.5 times of PPF amount 25 Years – PPF made Rs 72,73,968.04 vs ELSS Rs 3,80,31,702.24 i.e 5 times of PPF . In my experience people who are investing in PPF Continue with even after maturity, but even 3 times outperformance is just mind boggling The myth of Guaranteed returns vs not guaranteed In this period equity markets had 2 down turns. The lines highlighted in yellow are those years lets see how much did ELSS made you lose in this year vs PPF 10th year – PPF was at Rs 1,464,093.39 vs ELSS Rs 27,80,241, Ohh Still ahead of PPF by 1.89 times of ELSS 21th Year- PPF 51,90,620.96 vs ELSS Rs 1,14,65,714.48 , Again Outperformance by 2.2 times Even during the worst downturns we have seen the ELSS outperformed the PPF. What Next ? The PPF rates at 7.1% are bound to come down in future as and when the rate cuts would start to set in. So the future may hold less earning ELSS provide better liquidity, which missed here ( even though not recommend) ELSS you have to pay tax lets see if tax payment makes it less attractive , equity being taxed at 12.5% , so 15 years – PPF made Rs 27,78,383.76 vs ELSS Rs 74,62,685.12 i.e 2.6 times of PPF amount 20 Years – PPF made you Rs 47,16,594.97 Vs ELSS Rs 1,47,80,716.12 i.e 3.1 times of PPF amount 25 Years – PPF made Rs 72,73,968.04 vs ELSS Rs 3,32,77,739.25 i.e 4.5 times of PPF . Conclusion : Any person who is looking to make an investment in PPF for 15 years should consider how much money he/she is losing in the when he is going to invest in PPF for 15 years . Learn more about Best ELSS funds.
Health insurance is a crucial financial tool, but it’s essential to understand the terms that can impact your out-of-pocket expenses: Co-payments Deductibles While these terms might seem complex, understanding them can help you make informed decisions when choosing a health insurance plan. What is a Co-Payment? Co-payment insured is responsible for a predetermined percentage of the medical expenses, regardless of the total cost of the claim. Eg . If an insured has a policy with 10% co-pay , at the time of claim , if his bill is of 2 lakh , then the insured would have to pay mandatory Rs 20,000/- from his pocket and the rest of the bill would be paid by insurance.If after few months the insured makes another claim of Rs 1lakh, he will pay Rs 10,000 from his pocket. For every claim made by the insured, if copay is opted the insured have to pay the percentage taken as copay Benefits of Co pay : It helps to reduce your insurance premium burden Sometimes insurers make it mandatory to offer a coverage., for eg in senior citizen plans. Here are some things to know about copays: Percentage: The copay is usually a percentage of the total medical bill, typically between 10% and 30%. When to pay: Copays are paid at the time of service. Where to find: The copay amount or percentage is on the policyholder’s health policy wording. When to apply: Copays are not applicable to all medical expenses, and some plans may only require copays for certain treatments. Copay and premiums: Some plans offer a voluntary copay option, which can result in a lower premium. However, the policyholder will eventually pay more toward the cost of treatment. Copay and waivers: Some policies include a waiver of the copay clause, which means the policyholder doesn’t need to pay a copay. However, these policies usually have higher premiums. What is a Deductible? A deductible is a fixed amount you must pay out-of-pocket before your health insurance coverage begins. Once you’ve met your deductible, your insurance will start covering a portion of your medical expenses. For eg. If an insured has opted for deductible for Rs 50,000/ – and insured files for claim of Rs 1,00,000/- he will have to pay Rs 50,000/- from his pocket before making a claim. Now if he raises another claim in the same year, let’s say of Rs 1 L , the company will pay the full amount of Rs 1L. Types of deductibles Compulsory deductibles are mandatory and are set by the insurer. Voluntary deductibles are optional and are chosen by the insured to lower their premium. Cumulative deductible applies to family floater plans, where all family members contribute to total deductible after which the policy will make claim payments. Comprehensive deductible is a single deductible amount that you keep adding till you have made the total payment of deductible amount agreed with the insurer and after this the insurer will make payments. Non- comprehensive deductibles may be applicable to only specific covers and not entire policy, the insured have to pay specific medical costs before raising the claim. How it works You pay the deductible, and then your insurance company pays the remaining bill directly to the healthcare provider. When to pay Health insurance companies can choose to charge deductibles annually or per treatment. How it affects your premium Generally, higher deductibles lead to lower premiums. This can make health insurance more affordable for people who don’t frequently need medical care. How it affects your out-of-pocket maximum Your deductible is part of your out-of-pocket maximum, which is the most you’ll pay during a policy period. Once you reach your out-of-pocket maximum, your insurance will pay all additional expenses at 100%. How it affects your medical care Having a high deductible can lead to delayed care, which can be harmful if you have a serious or urgent medical condition. Advantage : They help in lowering the medical insurance premium. Furthermore, the insurance company may offer discounts if the insured opts for voluntary deductibles. It discourages the insured from raising claims with small amounts, which helps the insured earn a No Claim Bonus (NCB) that can be leveraged to increase the coverage of the primary health policy. A salaried person who has a cover from his office as group health insurance can use this option to keep his insurance premium low as his office is also providing him with the benefit. Disadvantage : Financial burden: You’ll have to pay for medical expenses before you can access benefits. This can be a financial burden, especially if you have multiple medical emergencies. Delayed care: You might hesitate to seek medical care until you’ve met your deductible. Non-preventive care: Non-preventive care won’t be covered until you’ve met your deductible How Do Co-Payments and Deductibles Work Together? Often, co-payments and deductibles work in tandem. You might have to pay a co-payment for a service, even after you’ve met your deductible. Why Do Health Insurance Plans Have Co-Payments and Deductibles? Cost-Sharing: By sharing the cost of healthcare with policyholders, insurance companies can keep premiums lower. Reduced Claims: Co-payments and deductibles can discourage unnecessary healthcare utilisation, helping to keep costs down for both the insurer and the insured. Copay vs deductible: A deductible is the amount paid out of pocket before insurance starts to pay, while a copay is a fixed fee for specific services. Copays don’t always count toward the deductible. Conclusion : By understanding these concepts, you can make informed decisions about your health insurance coverage. Remember to read your policy carefully and consult with your insurance provider or a healthcare professional if you have any questions. Read more on how we can help you with best health insurance plans and should you chose a deductible or co pay clause
Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios Exit load Bank of India Mfg & Infra Gr 2010 5 528.69 cr 2.42 22.53 1.00% – 0-1 years ABSL Manufacturing Equity Reg Gr 2015 – 1255.43 cr 2.22 33.51 1.00% – 0-90 days ICICI Pru Manufacturing Fund 2018 – 7041.78 cr 1.80 23.34 1.00% – 0-1 years Kotak Manufacture in India Fund Reg Gr 2022 – 2617.97cr 1.96 19.75 1.00% – 0-1 years Quant Manufacturing Fund Reg Gr 2023 – 1090.88 cr 2.17 28.41 1.00% – 0-15 days 0.00% – >15 days Axis India Manufacturing Reg Gr 2023 – 6517.72 cr 1.76 20.50 1.00% – 0-12 months Baroda BNP Paribas Manufacturing Fund Reg Gr 2024 – 1533.19 cr 2.04% 20.06 1.00% – 0-1 years Canara Robeco Manufacturing Reg Gr 2024 – 1767.98 cr 2.03% 35.13 1.00% – 0-1 months 0.00% – >1 months HDFC Manufacturing fund Reg Gr 2024 – 13630.95 cr 1.67% 17.90 1.00% – 0-1 months 0.00% – >1 months Invesco India Manufacturing Fund Reg Gr 2024 – 800 cr 2.27% 42.97 0.50% – 0-3 months 0.00% – >3 months Mahindra Manulife Manufacturing Fund Reg Gr 2024 – 884.52 cr 2.21% 19.12 0.50% – 0-3 months 0.00% – >3 months Motilal Oswal Manufacturing Fund Reg Gr 2024 – 678.53 cr 2.37% 46.83 1.00% – 0-3 months 0.00% – >3 months Bank of India Mfg & Infra Gr: The earliest of the funds in India, launched in 2010, this fund falls into two themes: Manufacturing and infrastructure. The fund is 5 star rated by Crisil. The fund size is very small at 528.69 cr. High expense ratio of 2.42. PE of the fund is 22.53. The fund has exit load of 1% for investment upto 1 year. ABSL Manufacturing Equity Reg Gr : The fund was launched in the year 2015, was able to garner decent fund size of 1255.43 cr. The fund is 2.22 of expense ratio The PE is bit on the higher side 33.51. Exit load of 1% 0-90 days. ICICI Pru Manufacturing Fund : This fund was launched in the year 2018, has the second highest fund size in the category at 7041.78 cr. The Expense ratio is limited at 1.80. PE Aligned with the category at 23.34. Exit load is 1% for upto 1 year. Kotak Manufacture in India Fund Reg Gr: The fund was launched in the year 2022, It was able to garner decent fund size of 2617.97 cr. The Expense ratios of 1.96 and the PE of the fund is at 19.75 is quite great. The exit load is 1% for upto 1 year. Quant Manufacturing Fund Reg Gr : This fund was launched last year, 2023, fund size is 1090.88 cr. The fund has a high expense ratio of 2.17. High PE of 28.41. Exit laid for the fund is 1% for 15 days . Axis India Manufacturing Reg Gr : The fund was launched in the year 2023, the fund size is quite good of 6517.72 cr. The expense ratio is quite low at 1.76. The fund PE is 20.50 which again is decent. Exit load of the fund is 1 % for 12 months Baroda BNP Paribas Manufacturing Fund Reg Gr : The fund was launched in the year 2024, fund size of 1533.19 cr. The expense ratio is 2.04%. The PE is good at 20.06. The exit load of the fund is 1% for 1 year. Canara Robeco Manufacturing Reg Gr : The fund was launched in 2024, with a small fund size of 1767.98 cr. The expense ratio of 2.03. The fund has a very high PE of 35.13%. Exit load of the fund is 1% for 1 month. HDFC Manufacturing fund Reg Gr : The fund was launched in the year 2024, but it garnered the highest fund of 13630.95 cr. The expense ratio is 1.67% . The fund PE is decent at 17.90. Exit load of 1% before 1 month. Invesco India Manufacturing Fund Reg Gr : The fund was launched in 2024, with a small fund size of 800 cr. The expense ratio of the fund is 2.27%. The fund has a very high PE of 42.97%. Exit load of the fund is 0.5% before 3 months. Mahindra Manulife Manufacturing Fund Reg Gr : The fund was launched in 2024, Small fund size of 678.53 cr. The fund has a high expense ratio of 2.37%. PE is very high at 46.83. The fund has an exit load of 1% for 3 months. Trailing Returns : Scheme 1 month 3 months 6 months 1 year 3 years 5 years 7 years 10 years Bank of India Manufacturing and Infrastructure Fund (G) -0.04 -0.71 13.53 46.83 25.01 30.26 18.29 17.06 Aditya Birla SL Manufacturing Equity Fund Reg (G) -0.72 2.82 16.98 46.35 17.38 20.41 12.7 ICICI Pru Manufacturing Fund Reg (G) -1.71 -2.4 10.63 48.04 24.75 26.92 Kotak Manufacture in India Fund Reg (G) -1.11 -1.76 12.13 41.26 Quant Manufacturing Fund Reg (G) -2.22 -3.09 13.18 52.18 Axis India Manufacturing Fund Reg (G) -2.54 -0.79 15.35 Baroda BNP Paribas Manufacturing Fund Reg (G) -1.53 -0.53 Canara Robeco Manufacturing Fund Reg (G) -1.19 0.56 17.99 HDFC Manufacturing Fund Reg (G) -2.56 -1.78 Invesco India Manufacturing Fund Reg (G) 2.76 Mahindra Manulife Manufacturing Fund Reg (G) -2.05 -2.03 1 months Trailing 1st quartile : 3.75 to 6 : Motilal Oswal Manufacturing Fund Reg (G) 2rd quartile : 1.5 to 3.75 : Bank of India Manufacturing and Infrastructure Fund (G), Invesco India Manufacturing Fund Reg (G) 3rd quartile: – 0.75 to 1.5 : Aditya Birla SL Manufacturing Equity Fund Reg (G), 4th quartile : -3 to -0.75 : ICICI Pru Manufacturing Fund Reg (G), Kotak Manufacture in India Fund Reg (G), Quant Manufacturing Fund Reg (G), Axis India Manufacturing Fund Reg (G), Baroda BNP Paribas Manufacturing Fund Reg (G), Canara Robeco Manufacturing Fund Reg (G), HDFC Manufacturing Fund Reg (G), Mahindra Manulife Manufacturing Fund Reg
In today’s fast-paced world, financial planning has become a necessity, not a luxury. As a wealth manager, I often encounter individuals with diverse financial goals, ranging from buying a dream home to securing a comfortable retirement. People have a mix of various short, medium and long term financial goals It involves setting clear financial goals, budgeting wisely, and investing strategically.While traditional investment avenues like fixed deposits and savings accounts offer stability, they may not always generate the desired returns, especially when adjusted for inflation ( how inflation effects read the blog : inflation the silent thief). This is where mutual funds step in as a powerful tool to help you achieve your financial aspirations.Let’s delve deeper into how mutual funds can be your trusted companion on this journey. Set SMART Goals: To ensure your financial aspirations are well-defined and achievable, consider the SMART framework: Specific: Clearly articulate your financial goals, providing detailed descriptions. Measurable: Quantify your goals using metrics like “how much” or “how many.” Achievable: Set goals that are realistic and attainable, aligning with your investment capacity and market realities. Relevant: Ensure your goals are pertinent to your overall financial objectives and the investments you’re making. Time-bound: Establish specific start and end dates for each goal to maintain focus and accountability. By adhering to the SMART principles, you can create a robust financial plan that empowers you to achieve your long-term objectives. Understanding Mutual Funds and how they are beneficial A mutual fund is a professionally managed investment pool that collects money from various investors and invests it in a diversified portfolio of stocks, bonds, REITs, Commodities or other securities. By pooling resources, mutual funds offer several advantages: Diversification: Mutual funds spread your investments across various assets, reducing risk. Professional Management: Experienced fund managers handle your investments. As an individual you do not have to worry which is the best asset to buy. Liquidity: You can easily buy or sell mutual fund units. Very easy access Affordability: You can start investing with small amounts through Systematic Investment Plans (SIPs). Low Cost : Mutual funds are low cost instruments which are regulated by the SEBI. Asset allocation : Through Mutual fund you can invest into multiple asset class , thus help you to create and manage better asset allocation or diversification , you can invest in Domestic equity, debt both government , corporate , or long , medium and short term, Gold, silver , Real estate Tax Efficiency : Mutual funds are very tax efficient instruments, the returns are taxed only at redemption according to the underlying asset class. Use Cases: How Mutual Funds Can Help You Retirement Planning: Goal: Accumulate a substantial corpus for a comfortable retirement. Strategy: Invest in equity-oriented mutual funds for long-term growth and debt funds to balance risk and provide steady income. Example: A 30-year-old with a monthly investment of Rs. 10,000 in an equity mutual fund with an average annual return of 12% could accumulate over Rs. 2 crore in 30 years. Child’s Education: Goal: Save for your child’s higher education expenses. Strategy: Invest in a mix of equity and debt funds to balance risk and return. Consider tax-saving options like ELSS funds. Example: A couple starting to save for their child’s education at birth with a monthly investment of Rs. 5,000 in an ELSS fund with an average annual return of 12% could accumulate over Rs. 50 lakh in 18 years. Home Purchase: Goal: Build a significant down payment for a home. Strategy: Invest in a combination of debt funds and balanced funds. Example: A young couple saving for a down payment with a monthly investment of Rs. 10,000 in a balanced fund with an average annual return of 8% could accumulate over Rs. 30 lakh in 5 years. Wealth Creation: Goal: Grow your wealth over the long term. Strategy: Invest in a diversified portfolio of equity and debt funds. Example: A 25-year-old with a monthly investment of Rs. 15,000 in a diversified equity fund with an average annual return of 15% could accumulate over Rs. 3 crore in 30 years. Conclusion : Risk Tolerance: Assess your risk appetite before choosing mutual fund schemes. Diversification: Spread your investments across different asset classes and fund categories. Regular Review: Monitor your portfolio and rebalance it periodically. Consult a Financial Advisor: Seek professional advice to tailor your investment strategy to your specific needs. How to choose best of the funds you can refer the blog : How to chose the best mutual fund By understanding your financial goals and selecting the right mutual fund schemes, you can embark on a journey towards financial security and prosperity. Remember, consistency is key, and time is your ally in achieving your aspirations.
Retirement planning is often overlooked, especially by younger individuals. It is a key area of financial planning under wealth management. Most people would start to think about this in their late 40’s or mid 50’s. And this is the time when people have a lot of Financial responsibilities . The children are reaching higher education, they are planning to buy a house, etc. However, starting early can significantly benefit your future financial security. Here are seven compelling reasons to begin planning for your retirement as soon as possible: 1.The Power of Compound Interest Albert Einstein said, “Compound interest is the eighth wonder of the world, he who understands it, earns it, he who doesn’t, pays it. The Earlier, the Better: The earlier you invest, the more time your money has to grow. The Magic of Compounding: Your initial investment earns interest, and then that interest earns interest, creating a snowball effect. Long-Term Gains: Over decades, this compounding effect can turn modest investments into substantial wealth. Case Study : Mr Raj, he is early bird Age: 25 Time till Retirement : 35 Years Monthly Savings for Retirement: Rs. 5,000 By the age of 60, i.e. 35 years hence , he would have accumulated a corpus of ₹1,69,93,955 at ROI @10% Mr Anil Age: 45 Time till retirement : 15 years Monthly Saving for Retirement : Rs 15,000 By age of 60, i.e 15 years hence he would have accumulated a corpus ₹60,24,318.27 ROI @ 10% Key Takeaway : Though Mr Anil invested 3 times the amount of Mr Raj the early bird achieved a corpus of 2.5 times that of Mr. Anil. 2.Lower Monthly Contributions Spread the Load: Smaller, regular contributions over a longer period are less burdensome than larger lump sums later. Consistent Savings: Automate your savings to make it effortless and consistent. Case Study : If Mr Anil had to also achieve a corpus of lets say Rs ₹1,69,93,955 he would have to have to increase his SIP amount to ₹42,313 that 2.8 times at a time when his children would be going higher educations and all the responsibilities Key Takeaway : The earlier you start for the same amount you have to lower the amount , in this case Raj is investing just Rs 5,000 whereas Mr Anil has to invest about ₹42,313. 3.Reduced Investment Risk Time is Your Ally: A longer investment horizon allows you to ride out market fluctuations. Diversification: Spreading your investments across various asset classes reduces risk. Case study : Mr Anil is not able to increase his investment amount as he has other financial commitments , Home loans , car emis, Education of children. So he has asked if we increase the returns. TO keep the amount at the same he needs to increase his returns by 22%. But as he is 45 he does not want to risk much. He now needs his money to be stable rather than volatile. But Mr Raj at such a young age can bear the risk he can increase his retirement corpus. Key takeaway : As you grow old you cannot take risk in your portfolio, you would not want to risk your capital at any cost. A young person can take more risk , and have a more volatile portfolio. 4.Achieving Financial Independence Early Retirement: With sufficient savings, you may be able to retire earlier than planned. Flexibility: Early retirement can provide more freedom and opportunities to pursue passions. Case Study : Mr Anil is not to increase his investment amount nor his risk profile, so he has to work longer to achieve his financial goal or retirement. Whereas Mr Raj, he can increase his risk and even amounts of investment with time and reach his goal early. He can plan to retire at age of 50, and he can keep on investing the same amount at an ROI of 16%. And this can be achieved since he has age on his side. Key takeaways: Early starters can retire early , late starters have to increase the time and work for more time. 5.Social Security Benefits or Absence In India we do not have any social security benefits , a government or PSU officer may be invested through pension scheme or NPS, and private sector employees may be doing EPS / NPS, but the corpus formed may not be sufficient though these. A self-employed person would only get an option to PPF. and some other schemes which are not sufficient to hold your investment in the later stage of life. Case Study : Dr Sandeep is a well known physician at a well established hospital, for his retirement he needs a corpus of Rs 5,00,00,000/- after 15 years. He looks at various options and finds that he does not have many options to invest and grow money and even none of the security benefits would be able to fulfill his retirement plan. Key takeaway : Start your retirement planning early in India. We do not have many special security benefits options to take care of you. 6. Increasing Average Life Expectancy The life expectancy for India in 2023 was 70.42 years, a 0.33% increase from 2022. The life expectancy for India in 2022 was 70.19 years, a 0.33% increase from 2021. The life expectancy for India in 2021 was 69.96 years, a 0.33% increase from 2020. The above shows that life expectancy is increasing. Start early as you would live more and you would require more money to get you in your golden years Plan how much would be required as after retirement you would not have sources of income. Key Takeaway : As life expectancy has increased for human beings , we need to be prepared for that increased life as you won’t have any other source of income to support you. 7. Avoiding Financial Stress Secure Future: A well-planned retirement can alleviate worries about financial security in your later years. Enjoyment of Life: Financial freedom allows you to enjoy retirement without