Dreamzunlimited...

  *The usual Rabbit & Tortoise story*. We looked at this video many times (in slow motion too) as it gave us many insights on investing. Pls look at the video with the * Tortoise as the disciplined investor focused on his own personal financial goals & Rabbit as the impatient investor, in a hurry to make big returns only *.   Right from the beginning, the rabbit is impatient – he wants to get into investing & make some quick money. He starts so fast (intensity is huge), perhaps betting on high return funds seeing the recent returns. But he gets distracted in between seeing it cannot continue for long & changes the lane (keep fiddling with the investments). He shrugs it off too, anxious if he has made the right choice. He sees his friend coming up very slowly (does not realize that it is steady), compares himself with him, once again gets distracted (perhaps by another You Tube video promising high returns). Soon after, he stops to eat too (withdrawing fro...

 Health Insurance premiums increase over a period due to the following reasons: 1)        Change in Age Band: (Personal level) . Typically, premiums keep changing in a band of 5 years of age. Till 35 years, the premiums remain the same. At 36 years of age, it changes; at 41 years of age, it changes & so on. The age considered is the age of the eldest member of the family insured.  2)        Medical Costs Inflation (Industry level) : the cost of treatments keeps increasing every year. The same treatment which costed 50,000/- a few years ago would be 1 lakh now. So even if the number of claims remain the same, the insurance company may have to settle more amount now, owing to inflation of costs. Hence the premiums also keep increasing to keep up with this rise in treatment costs / claims. Typically all insurance companies raise the premiums (one-by-one) once in a period of 5-7 years.  3)    ...

Please make a note on the below points w.r.t S.I.P debits in Mutual Funds:   1) The S.I.P amount will be debited on the registered SIP date only - if it happens to be a banking / public holiday, then it will be debited on the immediate next working day . You will be receiving a SMS too regarding the debit. The exact time of debit on any day will be unknown (but typically it will happen in the morning session itself), as it is centralized system in stock exchange / bank / RBI .  2) If there is NO sufficient bank balance on that day, then units will NOT be purchased & it will NOT be triggered again for that month. If need be, we can initiate the debit manually for this month alone.  3) There will be NO CHARGES from Mutual Funds if the SIP bounces due to insufficient balance - Your bank may levy charges for the same.  4) If there is bounce for 3 consecutive months, then the SIP will be automatically terminated.  5) Units are allotted once the amount is c...

Income Tax Slabs  Standard Deduction increased from 50,000/- to 75,000/- (for Salaried) under New Tax Regime.   Tweak in Tax slab rates under New Tax Regime. Tax savings of 17,500/- p.a. @ 30% slab rate.   Taxation Aspects Mutual Funds & Equity Shares, where Equity exposure is at least 65% .  Within 1 year of purchase : Gains will be taxed at 20% (Previously 15%). More than 1 year of purchase : Till 1.25 lakhs gains - NIL tax. Above that, gains will be taxed at 12.50% (Previously till 1 lakh gain tax-free & 10% tax beyond that).   Despite this increase, it is negligible in the long-term. Also Equities continue to provide better returns over inflation v/s others.   Ex. S.I.P of 25,000/- for 15 years @ 12% CAGR gives 1.26 crore maturity .   # Capital Gains - 81.14 lakhs # Tax as per old slab: 8.14 lakhs (11.33% net return) # Tax as per new slab: 9.98 lakhs (11.15% net return) - Difference of only 0.18% in net return .     ...