Managing your money is tough, and everyone has a different opinion. Once you get the hang of the basics of personal finance, you can feel more confident about what you do with your money.

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Right Now
  Workshops for  

a)  Working Adults

b)  Young Career Seekers

c)  Young Teens

d)  Home Makers

(We conduct both inhouse and public workshop on building financial capability)
Personal Financial Literacy in collaboration with Universities, Colleges and Schools.

Providing financial guide to an average family- Gupta Family and Financial Lessons.

Q.1.  I want to know whether investing in ULIPs is better than investing in mutual funds. Which has higher return for a 10 year time horizon?
Ans.  Ideally, ULIP and Mutual Fund should not be compared with each other. ULIP is primarily an insurance plan with an added investment component, whereas, Mutual Fund is purely an investment product. For meeting your insurance requirement opt for term insurance and for investing opt for Diversified Mutual Fund schemes. Such a financial plan will yield you better life risk coverage and at the same time higher return on investment.
Q.2.  I am 35 years old and my portfolio comprises several schemes that I invested in when their new fund offers (NFO) were floated. I have invested Rs 10 lakh in funds like Sundaram-BNP Paribas Energy, Reliance Natural Resources Fund, Franklin India High Growth Companies, HDFC-Infrastructure Fund, ICICI Prudential-Fusion Fund Series II and so on. I require the money for my children’s higher education about 10 years from now and  post retirement earnings after 20 years.
Ans. I find you have invested a significant amount in sectoral mutual fund. Typically such funds offer a high risk-high return investment proposition. They are suited to informed investors who can time their entry /exit from the fund. If you don’t fit this profile, there is a case for allocating a portion of the corpus to conventional diversified equity funds with proven track records. You should also consider allocating certain portion to Gold ETF.  Finally, you must engage the services of a competent investment advisor to work out the specifics.
Q.3.    I intend to study abroad. How can I apply for a student loan?    
Ans. To be eligible for student loan, you need to be a resident and should have secured your admission to a professional course. The amount of student loan granted differs across banks. Usually, the maximum amount granted for studying abroad is Rs.15 lakh at an interest rate of 10.5-15%. Some banks also offer a choice between fixed and floating interest rates. For loan amount exceeding Rs 7 lacs, banks keep as security property, national savings certificates, insurance policies, among other things. For loan between Rs.4-7 lacs you need to provide a guarantor. For loan upto Rs.4 lacs normally security is not required. You can also include your parents as co-borrowers for the loan to increase your loan eligibility. The repayment of loan generally start after one year of the completion of your course or six month after securing of the job. This again varies from bank to bank.
Q.4.  My car was stolen one month back. I registered an FIR . My insurer says that it will take some time before they give me the compensation. What should I do?
Ans.  Insurers need two documents to settle a claim for car left. The first document is an FIR which you already have. The second document is a “not traceable report” (NTR). This report will be issued by the police station where you got the FIR registered. The NTR is normally issued 90 days after the FIR is registered. On submission of both these documents your insurer will pay the claim.
Q. 5. My daughter’s credit card application has been rejected by a Private Bank on the ground that she is an advocate. Is the bank allowed to adopt such a discriminatory policy on professionals? She has been advised to re-apply as a housewife to get the card. Why is the bank requiring false statement to be made?
Ans. Banks do not adopt any disciminative policy for issuing a credit card to professionals. However, some banks have a policy to issue a specific type of credit cards based on annual income to salaried employees and non-salaried individuals. Banks have their own policies which are not made public. As per RBI guidelines, a lender should convey in writing the main reason/reasons which have led to rejection of the application. Please take up the matter with the nodal officer and ask for a reply in writing from the bank.
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