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 utilization, 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.
Inflation, the sneaky increase in prices over time, can quietly erode your hard-earned money. Let’s dive into a real-life example to see how it works. Scenario: Imagine you have ₹50 lakhs (5 million rupees) and decide to invest it in a fixed deposit (FD) with SBI Bank for 10 years. They offer you a rate of 6.50%, and you opt for a cumulative deposit (interest gets added to the principal). Without Inflation: After 10 years, SBI would pay you ₹95,27,793.77. That’s an effective return of 6.66% per year. Looks great, right? Inflation’s Impact: But here’s the catch: inflation has been steadily increasing. Using the Consumer Price Index (CPI) for FY 2023-24, we can calculate that the inflation rate was around 4.88%. Real Returns: When we factor in inflation, your effective return is reduced to 1.697%. This means that while you earned ₹95 lakhs in total, the purchasing power of that money is significantly less than it was 10 years ago. The Bottom Line: Inflation can silently steal a significant portion of your investment gains. In this example, inflation took away ₹36,11,476.97 of your potential earnings. To protect your wealth from inflation, consider investing in assets that can appreciate faster than the inflation rate, such as stocks, gold, mutual funds, real estate, or inflation-indexed bonds. Would you like to explore other investment strategies or learn more about inflation’s effects on the economy? Reach Us to help you protect your savings from inflation : https://wa.me/message/LC5W5ZNTPSJ5L1
The stock market is inherently volatile, fluctuating between periods of growth and decline. While the adage “buy low, sell high” is commonly understood, it’s essential to consider the specific context of your investment goals and risk tolerance. Traders vs. Investors Traders and investors approach the market with distinct strategies. Traders often seek short-term profits through frequent buying and selling, taking on higher risks in the process. Investors, on the other hand, focus on long-term wealth creation and are generally more patient. Systematic Investment Plans (SIPs) Many investors opt for SIPs, a disciplined approach where a fixed amount is invested regularly. This strategy helps average out costs over time, reducing the impact of market fluctuations. Timing the Market: Is it Worth the Effort? While attempting to “time the market” by buying low and selling high might seem appealing, it’s often challenging and can lead to missed opportunities. Our analysis of two hypothetical investors, Mr. Lucky and Mr. Unlucky, demonstrates that even with perfect timing, the difference in returns over a long period is relatively minimal. First investor is Mr Lucky. Whatever day he choses in a month , the Sensex is the lowest day of the month. Second Investor, Mr Unlucky, Whatever day he chooses is the day the sensex is at its peak in that month. They both had agreed to invest Rs 50,000/- Every month Starting April 2014 till date , and we checked the fund value they were able to create. Mr Lucky , today value is Rs 14,092,799.41 , he grow his wealth at XIRR of 13.85% Mr Unlucky ,value stood at Rd 13,328,799.56, he grew his wealth at XIRR of 13.66% with a wealth difference of Rs 763,999.85/- or in percentage terms 0.19% over the 10 years period. The point to understand is that neither can we be Mr Lucky nor We can be Mr Unlucky, We would be somewhere between. Key Takeaways: Long-term Focus: For wealth creation, a long-term perspective is crucial. Consistent Investment: Regular investing through SIPs can be a disciplined approach. Avoid Overthinking: Excessive focus on market timing can be counterproductive. Conclusion While timing the market might provide occasional short-term gains, it’s not a reliable strategy for long-term wealth creation. Consistent investing, coupled with a well-thought-out investment plan, is often a more effective approach.
Fund Name Year Of inception Portfolio Size ( In Cr ) Expense ratio PE ratios Exit Load HDFC Non-Cyclical Consumer Fund Gr 2024 764.46 Cr 2.37% 52.58 1% within 30 days Tata India Consumer Reg Gr 2015 2247.42 Cr 2.01% 50.11 0.25% for redemption within 30 days BARODA BNP PARIBAS India Consumption Fund Reg Gr 2018 1457.85 Cr 2.09% 38.13 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Mahindra Manulife Consumption Fund Reg Gr 2018 280.75 Cr 2.3% 26.75 1% for redemption within 3 months Nippon India Consumption Reg Gr 2004 1410.64 Cr 2.14% 46.49 1% for redemption within 30 days UTI India Consumer Reg Gr 2007 700.29 Cr 2.43% 31.32 1% for redemption within 30 days Mirae Asset Great Consumer Reg Gr 2011 4069.29 Cr 1.80% 26.03 1% for redemption within 365 days ICICI Pru Bharat Consumption Gr 2019 2613.48 Cr 2.08% 36.88 1% for redemption within 90 days SBI Consumption Opportunities Reg Gr 2013 2679.47 Cr 2.01% 46.97 0.1% for redemption within 30 days Canara Robeco Consumer Trends Fund Reg Gr 2009 1694.43 Cr 2.08% 22.62 1% for redemption within 365 days HDFC Non-Cyclical Consumer Fund Gr: HDFC Non-Cyclical consumer fund is a relatively new entrant that came out in 2024, the fund aims to invest only in sectors related to consumption which are not cyclical in nature. High PE of 52.58. The fund has a small portfolio size of 707cr. High expense ratio of 2.37% Tata India Consumer Reg Gr : Launched in 2015 the fund has been able to garner 2247 cr in total AUM.The PE is high as suggested by the category of 50.11. The expense ratio is about 2.01% which is good for the category. BARODA BNP PARIBAS India Consumption Fund Reg Gr The fund was launched in the year 2018, has AUM of about 1457 cr in total AUM. The PE is around 38.13 which is in the mid range of the category. Expense Ratio of 2.08%. Mahindra Manulife Consumption Fund Reg Gr Launched in 2018, the fund has a very small size 280 cr, smallest in the category. The fund’s PE is excellent and needs to be looked at further at 26.75. The expense ratio is of 2.3% Nippon India Consumption Reg Gr Nippon India Consumption fund is one of the oldest funds in the category, launched in 2004. With AUM of 1410.64 Cr. Expense ratio of 2.14%. PE of the fund is at 46.49. UTI India Consumer Reg Gr The fund was launched in 2007, has a small AUM of 700 cr. The PE of fund is 31.32 and high expense ratio of 2.43% Mirae Asset Great Consumer Reg Gr The fund was launched in the year 2011. The AUM of the fund is 4069 cr , which is highest in the category. The fund has a great PE of 26.03. Which is lowest in the category and needs to be understood further. ICICI Pru Bharat Consumption Gr The fund was launched in the year 2019, has AUM size of 2613.48 cr, which is a decent size fund. Expense Ratio 2.08%. The fund PE is 36.88. SBI Consumption Opportunities Reg Gr The fund was launched in 2013. AUM has size 2679.47 Cr, a decent fund size. The fund PE 46.97 Canara Robeco Consumer Trends Fund Reg Gr The fund was launched in 2009. AUM of the fund 1694.43 Cr. The fund has a very low PE of 22.62 lowest in the category. Trailing Returns : 1 year trailing Quartile 1 : > 44% , HDFC Non- Cyclical consumer trends fund and Mahindra Manulife Consumption fund have starred in this category with returns above 44%. Quartile 2 : 43% -44%- Baroda BNP paribas India Consumption fund , Nippon India Consumption Fund, TATA India Consumer Fund have been the next category. Quartile 3 : 42%- 43% – Mirae Asset Great Consumer fund, UTI consumer fund make it 3rd quartile Quartile 4 : 40%-42% : Canara Robeco Consumer Trends Fund, ICICI Pru Bharat Consumption fund and SBI consumption fund are in 4th quartile. The funds have performed so close in the last 1 years it seemed futile to put any one in any quartile. But still we have put them in quartiles. 3 years trailing return Quartile 1: >28% : Only SBI India Consumption fund could make the list Quartile 2: 24-28% : ICICI Pru Bharat Consumption fund, Nippon India Consumption fund made it 2nd quartile. Quartile 3: 22-24% :Mirae Asset Great Consumer fund, Mahindra Manulife consumption fund, TATA India Consumer fund delivered in 22% range. Quartile 4: 18-22% : Baroda BNP paribas India Consumption fund, Canara Robeco Consumer Trends Fund and UTI consumer fund were in 3rd quartile , but UTI consumer fund was very low in the returns at 18% HDFC Non- Cyclical consumer did not exist 3 years before. 5 years trailing returns Quartile 1 : >26%, Nippon India Consumption fund, SBI India Consumption fund made in top in 5 years period Quartile 2: 24-26 : Canara Robeco Consumer Trends Fund, Mirae Asset Great Consumer fund Quartile 3: 22-24% : Baroda BNP paribas India Consumption fund, ICICI Pru Bharat Consumption fund, TATA India Consumer Fund Quartile 4: 20- 22%: Mahindra Manulife Consumption fund, UTI consumer fund were the lowest HDFC Non- Cyclical consumer did not exist 5 years before. 7 years trailing returns Quartile 1 : > 19%, Nippon India Consumption fund Quartile 2: 18-19%, Canara Robeco Consumer Trends Fund, Mirae Asset Great Consumer fund, SBI India Consumption fund Quartile 3: 17-18%, TATA India Consumer Fund Quartile 4: < 17% , UTI Consumer fund was at 14.42 HDFC Non- Cyclical consumer , ICICI Pru Bharat Consumption fund, Mahindra Manulife Consumption fund and Baroda BNP paribas India Consumption fund were not launched 10 years ago. 10 years trailing returns Quartile 1 : >18% Canara Robeco Consumer Trends Fund,SBI India Consumption fund Quartile 2: 17-18%, Mirae Asset Great Consumer fund Quartile 3: 16-18%, Nippon India Consumption fund Quartile 4: <16% ,UTI Consumer
As a health insurance advisor, I witness firsthand the anxieties families face regarding their senior citizens’ healthcare needs. The rising cost of medical care can be a significant burden, and the prospect of a sudden health crisis can be overwhelming. The launch of Ayushman Bharat, particularly the Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), has been a welcome development. It provides a much-needed safety net for families by offering free health insurance coverage. However, in my experience, it’s crucial to view Ayushman Bharat as a stepping stone rather than the final solution, especially for senior citizens. Before discussing it further let us first understand who can apply and how Who Can Apply ? Anyone aged 70 or above with a valid Aadhaar number would be eligible for applying under the scheme and that initially there would be a pilot launch to sort out any issues that might arise How to Apply ? 1.Visit the official website of Ayushman Bharat ( https://pmjay.gov.in/) 2.Get your Aadhaar or ration card verified at a PMJAY kiosk 3.Provide family identification proofs 4.Get your e-card printed with a unique AB-PMJAY ID. 𝗘𝗻𝗿𝗼𝗹𝗹𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗖𝗼𝘃𝗲𝗿𝗮𝗴𝗲 The scheme is expected to be extended to all senior citizens above 70 years old. A pilot program is likely to start this week in select locations before a nationwide rollout. (The scheme offers free health insurance coverage of up to Rs 5 lakh per family. Senior citizens can choose to continue with their existing public health insurance schemes or opt for Ayushman Bharat- Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). Understanding Ayushman Bharat’s Benefits and Limitations Let’s break down Ayushman Bharat: Strengths: This scheme offers cashless hospitalization services and covers a wide range of medical procedures, reducing out-of-pocket expenses. It also ensures access to quality healthcare at empanelled hospitals. Weakness : The coverage amount of Rs. 5 lakh per year may not be sufficient for senior citizens with chronic conditions requiring long-term care or expensive treatments. Additionally, the availability of quality healthcare facilities within the network, especially in remote areas, can be a concern. Why Senior Citizens Might Still Need Separate Health Insurance Here’s where separate health insurance for senior citizens comes into play: Enhanced Coverage: Separate plans can provide additional financial protection beyond the Rs. 5 lakh limit offered by Ayushman Bharat. This ensures comprehensive coverage for potentially expensive procedures. Specificity: Senior-specific health insurance plans are often designed to address the unique needs of older adults, including pre-existing conditions and age-related illnesses. Wider Network Options: These plans may offer access to a wider network of hospitals, including private institutions, which might provide specialized care or better amenities. Addressing Existing Concerns While Ayushman Bharat addresses a critical need, there are existing concerns that need to be acknowledged, as pointed out in Deccan Herald. Improving the quality of care within the network and ensuring smoother claim settlements are crucial for the scheme’s long-term success. The Bottom Line: A Tailored Approach Ayushman Bharat is a positive step towards a healthcare-secure future for senior citizens in India. However, for comprehensive protection, especially considering potential limitations and individual needs, exploring separate health insurance is highly recommended. As your health insurance advisor, I encourage you to schedule a consultation to discuss your specific situation and explore the best options for your senior loved ones. Together, we can create a healthcare plan that provides peace of mind and ensures they receive the care they deserve. Click here to book a free consultation
Understanding Waiting Periods Waiting periods in health insurance can be a complex topic, but understanding them is crucial to make informed decisions about your coverage. In essence, waiting periods are specific timeframes during which certain types of claims, such as those related to pre-existing diseases or specified illnesses, are not covered. Pre-Existing Diseases (PEDs) Defined by IRDA , Pre-Existing Disease means any condition, ailment or injury or related condition(s) for which there were signs or symptoms, and I or were diagnosed, and I or for which medical advice I treatment was received within 48 months prior to the first policy issued by the insurer and renewed continuously thereafter. Simple words , A pre-existing disease is any condition diagnosed or treated within 48 months before purchasing your health insurance policy. Examples include: High blood pressure Diabetes Asthma Thyroid conditions Chronic obstructive pulmonary disease (COPD) Kidney disease Impact of PEDs on Health Insurance Higher Premiums: Insurers may charge higher premiums to cover the increased risk associated with pre-existing conditions. Waiting Periods: Many policies impose waiting periods for claims related to PEDs. This means you’ll need to wait a specific period before coverage kicks in. Policy Denial: In severe cases, the insurer might deny coverage altogether. Permanent Exclusion: The insurer may permanently exclude coverage for the pre-existing disease and related conditions. Should You Hide Pre-Existing Conditions? Absolutely not! Disclosing pre-existing conditions is crucial. Hiding them can lead to claim denials later, causing significant financial hardship during a medical emergency. Specified Diseases Specified diseases are a list of pre-defined illnesses covered under a specific policy. These often include: Cancer Heart diseases Kidney diseases Liver diseases Paralysis Major organ transplants Multiple sclerosis Alzheimer’s disease Parkinson’s disease Maternity Newborn cover Impact of Specified Diseases Waiting Periods: Similar to PEDs, health policies may have waiting periods for specified diseases. Strategies for Managing Waiting Periods Start Early: Purchase health insurance when you’re young and healthy to benefit from lower premiums and shorter waiting periods. Low Waiting Period Plans: Look for policies with shorter waiting periods for PEDs and specified diseases. Plan Comparison: Carefully read the policy wording to understand how it handles waiting periods. Reduced Waiting Period: Some policies allow you to decrease the waiting period by paying an additional premium. Policy Continuation: Avoid discontinuing your existing health insurance plan to avoid starting fresh with waiting periods. Portability: If switching insurers, utilize the portability feature to transfer your existing policy. By understanding waiting periods and implementing these strategies, you can make informed decisions about your health insurance coverage and protect yourself from unexpected financial burdens. Get Expert Advice Have questions about navigating waiting periods in your specific situation? Feel free to reach out for a consultation. Book Your Free consultation
Gold, a precious metal with a lustrous yellow hue, has captivated humanity for millennia. It has lasted over civilization from Ancient Egyptian to the Aztec Civilization. Its allure extends beyond its aesthetic appeal, making it a coveted asset for both personal adornment and financial investment. As a tangible asset, gold has proven to be a reliable store of value, weathering economic storms and geopolitical upheavals throughout history. Indians particularly had an inclination towards gold. Of the available instruments for investment the two instruments which had always got the most attention had been Real estate Gold Here in this research we are going to talk about the benefit of gold investing in the current scenario. Historically Looking Gold since 1981 has delivered 9.03% the growth is represented by the chart given below. Another measure to check the growth of any investment instrument is to look at the rolling returns of the we consider 10 years rolling returns and 15 years rolling returns. Once, we combine above 3 charts for gold returns over the years here are few observations Gold as a safe asset class is established with only 1 year period in 10 years rolling returns, where it was negative. T The 15 year rolling returns year it was never negative The gold had sub par returns till 2007 -2008, where it was in range of 3-8%, below its average long term returns. It was only after the global financial crisis that gold as an asset class was established world over. Establishing Gold As hedge It was during this time that gold became an edge against the downturn and more discussion from a perspective of diversification , asset allocation started. Factors which affect the Gold prices Before moving the discussion any further lets us understand the factors that move the gold. And try to see what is the current situation and how the gold can react to that. Central bank Reserves Gold is the most important reserve that the central bank keeps to strengthen its currency. Rupee, the Indian Currency is backed by Gold, (https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=3158#:~:text=All%20banknotes%20issued%20by%20RBI,33%20of%20RBI%20Act%2C%201934). So, more gold helps countries to have a currency which is strong as compared to other currencies for trade in the world. In recent years, we have seen more gold by 3 countries: Russia , China , India and Turkey, Which has led to an increase in the prices of Gold and what situation we are in currently . The current Situation : The gold buying by the central banks have started because of the Russia – Ukraine war. Since then the central banks have been trying to diversify their foreign reserves through Gold. Central banks are also trying to unlink currencies from US denominated trades and that can be only done through gold These situations have added to central banks buying more gold in the markets and this situation is not going to improve. US dollar : The price of the US dollar and gold are inversely related. Current Situation : The rate of Interest would lead to fall would lead to weakening of dollar , as dollar weakens the gold prices would appreciate. Increase Demand for Gold The gold is metal which has industrial uses as well as the household. India has been a buyer of physical gold for Jewelry purposes , during the festive seasons, weddings. Women Buyers have affinity for the yellow metal. Current Situations: The coming months we are heading to festivals and wedding seasons. This would lead to high gold buying and this pressure on the demand side. Rate of interests Gold as an asset class does not bear any interest, it was because most financial experts , include Mr. Warren buffet had advised against investing in gold. How does gold prices affect the rate of interest? If interest rates rise, people are interested to invest in an investment which would give higher returns like, FD , Debt instrument rises thus causing people to invest in interest bearing instruments. Whereas vice versa happens when interest rates move down. Current Situations : Since last week, US Fed chairman Jerome Powel had stated in his statement that it was time to cut the rates. This would be followed by a world over central banks rate cut. Which forms the basis that as the rate of interest would decrease instruments which are non interest bearing would lose attractiveness. Hedge Against Inflation : Inflationary pressures have reached unprecedented levels in recent decades, prompting investors to seek strategies to preserve their wealth. Savings accounts, despite offering marginally higher interest rates than in previous years, often fall short of mitigating the erosion of purchasing power caused by inflation. This disparity between interest earned and rising prices results in negative real returns. Gold, historically recognized as a reliable inflation hedge, has emerged as a compelling investment option. By offering a counterbalance to the devaluation of currency, gold helps safeguard investors’ assets from the adverse effects of inflation, ensuring that their purchasing power remains relatively intact. Gold, a tangible asset with intrinsic value, has historically served as a reliable store of wealth. While the purchasing power of fiat currencies can diminish during periods of inflation, gold maintains its value, making it a sought-after investment for those seeking to protect their assets from the eroding effects of rising prices. Current Scenario : We are definitely in a high interest rates scenario , the world over inflation was never an issue in the developed world, which is an issue they are not able to deal with. Safe haven Economic Downturn This asset class serves as safe haven in case of economic downturn , It was observed that during the years of downturn Gold have performed exceptionally , the performance of gold during the years FY 2009, FY 2012 , FY 2016 and FY 2020 . The performance of Gold has been better than the volatile asset class like equity . What Do Experts Say ? According to Thedailygold.com, Gold in FY 26 might trade in the range of $5000
Gold has been a popular investment choice for centuries, offering potential diversification, inflation protection, and a safe haven during economic uncertainty. There are several ways to invest in gold, each with its own advantages and disadvantages. Asset Allocation: Gold as has been discussed was discussed as an asset class only after the 2008 recession, when for the first time it made sense in allocation. Any person investing in Gold should understand few things The maximum allocation of gold should be 10-15% Gold is to be used as a hedge not as a primary tool for wealth creation, that would always be equity. Gold bought for jewellery purposes is not considered as investment. How to invest in Gold ? Physical Gold : A person can buy coins, bars etc. Storage : You have to store the physical gold in a safe locker or place at home. Risk : Risk of theft and burglary. Cost : Cost of actual buying and additional cost if you are storing it in a safe place. Liquidity : High can be sold to the jeweller anytime. Sovereign Gold bonds: are government securities denominated in gold. They are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. These bonds offer a unique opportunity to invest in gold without the physical risks associated with holding gold bullion with maturity of 7 years and cab be reddemed after 5 years. Get interest payment every year of 2.5% . Storage : No storage required . can be in demat or any other form Risk : No risk as backed by the government of India. Taxation : They were tax free on maturity. Liquidity : Bit low since it was not you cannot sell it to government but can trade online. But since last tranche in the month of february the government has not issued any bonds and it seem they won’t issue any more bonds in future( this is still not known) Gold ETF : is a gold exchange-traded fund (ETF) that tracks the price of domestic physical gold in India. It offers a convenient and efficient way to invest in gold without the need to purchase and store physical gold. Storage : The ETF is stored in dematerialised format so you do not have to worry on the storage of physical gold.You need a demat account Risk : Risk of burglary is zero. Cost : You have to bear the management expenses and brokerage fees. Also since it was bought on stock exchange so you have to look at the price you are buying. Liquidity : Highly liquid can be sold on stock exchange. Gold funds : Gold funds are mutual funds that invest primarily in gold or gold-related securities. Offer investors a convenient and diversified way to participate in the gold market without the need to purchase and store physical gold. Storage : The gold fund units are allocated to the person buying them , Demat account is not necessary . Risk : Risk of burglary is zero. Cost : The fund manager expenses are borne by the customer. Liquidity: Highly liquid as can be sold back to MF company. Taxation : Another important discussion is on the taxation . With the new tax regime in place the taxation has improved , and it makes a stronger case for you to invest in this asset class. Instrument Holding period Units acquired Prior to April 01,2023 Units acquired on of after April 01, 2023 Short- term Capital Gains Tax Long Term Capital Gain Tax Short-Term Capital Gains Tax Long- Term Capital Gains Tax Units Redeemed between July 23, 2024 and March 31, 2025 Gold ETF 12 Months Income’s Income Tax Slab rate* 12.5%* Income’s Income Tax Slab rate* Income’s Income Tax Slab rate* Gold FOF 24 Months Units redeemed after March 31, 2025 Gold ETF 12 Months Income’s Income Tax Slab rate* 12.5%* Income’s Income Tax Slab rate* 12.5%* Gold FOF 24 Months Source: India Budget. *Surcharge and Health & Education Cess as applicable. In view of the individual nature of the tax consequences, each investor is advised to consult his/ her own professional tax advisor. Top Fund list : How have the fund performed so far. 1 Year 3 Year 5 Year 10 Year Axis Gold Fund (G) 16.74 14.84 12.04 11.09 SBI Gold Fund Reg (G) 16.54 14.7 11.82 11.14 HDFC Gold Fund (G) 18.09 15.03 12.03 11.17 UTI Gold E T F FoF Reg (G) 16.41 0 0 0 Kotak Gold Fund (G) 16.14 14.16 11.45 11.04 we have considered SIP returns for this fund and looked at the top performing fund. We over the last few year the GOLD has given returns in comparison to the equity investment. Conclusion : To check weather, the gold investing make any sense to your diversification you can look at the asset allocation. Contact us to know what is that you need rather than just falling prey to wrong plans. You can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1)
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