Our this article provide you most of financial planning definition one by one.We are showing some major definition here.Read carefully and choose the best.
Life Insurance. Life insurance is a contract between the insurer and the policy owner (policyholder) for a specified period of time (known as policy’s term) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) upon the occurrence of the insured person’s death. If the insured person is still alive at the end of the term, the policy lapses and has no residual value.
Many times Term Life Insurance is better and convenient than Whole Life Insurance. For less money you can get the desired cover for a fixed term of 10, 20 or more years.
Our best Insurance Article:
Entry Load. The fee you pay on the amount you invest. If you invest Rs. 10,000 and the entry load is 2.5%, your investment is Rs 9,750.But now it is different according and also mutual funds companies trying to increase it also.
ELSS. Equity Linked Saving Schemes. The investments in ELSS fall under section 80C. The fund manager will invest in shares of various companies across various industries. ELSS funds have a lock-in period of three years and there is an entry load (about 2%). Dividends on ELSS are tax free. An ELSS has greater exposure to equity, hence has a potential for higher returns, however, with higher risk. The profit from selling the units of these funds is long term capital gains and is tax free. Some players are: HDFC Long Term Advantage, HDFC Tax Saver (Growth option), Prudential ICICI Tax Plan (Growth option) and Magnum Taxgain.We will provide a detail article on ELSS soon.
NAV. Net Asset Value. It is the price of a unit of a fund. The NAV varies every day.
Our best NAV article:
Points. An increase in interest by 25 points means an increase by 0.25%. So a rate change by 50 points is change by 0.5% or 1/2%.
Repo Rate. Rate at which the banks borrow rupees from Reserve Bank of India. It is usually for overnight. A reduction in the repo rate menas that banks can get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive. Reverse repo rate is at which RBI borrows money from banks.
SIP. Systematic Investment Plan. SIP is a way of investing specifically designed for those who are interested in building wealth over a long-term and plan out a better future for themselves and their family. It is useful for those who want to get their investments going, but don’t have a large sum of money to invest.
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ULIP -Unit-Linked Insurance Plans. It offers limited insurance cover in addition to scope for investment appreciation. It is meant primarily for tax payer individuals seeking tax rebate under section 80C. ULIPs will appeal only to the longterm investor who is also looking for insurance cover. However, steep expense ratios remain a cause for concern.
Our Best ULIP Article:
- What is ULIP
- Read before buy ULIP
- Mutual fund vs ULIP
- Hidden factor of ULIP
- Is ULIP is a Good Option
Mutual Fund:Mutual funds are investment companies that pool money from investors at large and offer to sell and buy back its shares on a continuous basis and use the capital thus raised to invest in securities of different companies. In this you amount is invested in different companies according to percentage ratio.
Our best Mutual Fund Article:
- What Mutual Fund do with investor’s Money
- Concept of Mutual Funds
- Benefits of Mutual Fund
- What is Net Asset Value (NAV)
- What Is Mutual Fund?
- Post Office FD Vs Mutual Fund
- Mutual Funds vs portfolio management
Friend please remember that becoming wealthy is not a matter of how much you earn, who your parents are, or what you do.. it is a matter of managing your money properly.
Life is full of uncertainties. Future investment earnings and interest and inflation rates are not known to anybody. However, I can guarantee you one thing, those who put an investment program in place will have a lot more money when they come to retire than those who never get around to it.
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