Unclaimed insurance, first market investment: Top personal finance stories

Our top stories this week explain why you should keep a record of your insurance policies and how to start with mutual fund investments

The week’s lead story by Bindisha Sarang examines the issue of unclaimed life insurance funds, particularly in policies sold through agents. Read it to learn about the reasons for such unclaimed funds and for guidance on how to avoid this pitfall.

How do you select your first equity mutual fund? Read Sebi-registered investment advisor Deepesh Raghaw's take on this subject.

If you have not made your tax-saving investments for the year, you should hurry up and do so before March 31. Equity Linked Savings Schemes or tax saver funds offer the chance to earn high returns combined with tax saving. If you are hunting for a fund from this category, look up Morningstar's review of Franklin India ELSS Taxsaver Fund.

Are you looking to take a car loan? Interest rates on these loans can range from 8.45 per cent to almost 15 per cent. To compare interest rates and processing charges of the key players in this field, look up Paisabazaar.com's table.

Number of the week

74,000: Milestone above which Sensex closed for the first time on March 6

The Sensex closed at 74,085.99 on March 6. One factor that drove this large cap index up was that many investors reduced their exposure to small and mid caps and shifted to large-cap stocks. Many investors also undertook sector rotation and moved to banking, which has not risen as much as the other sectors over the past couple of months. Positive sentiment within the market was also fuelled by GDP data.

In his Congressional testimony, US Federal Reserve chair Jerome Powell said there could be interest rate if inflation stays under control.

According to experts, investors should be prepared for volatility in the markets until the general election. Stretched valuations could act as a deterrent. The action is expected to shift towards large cap stocks, which have run up much less over the past year compared to mid- and small cap stocks. The Securities and Exchange Board of India's recent advisory against midcaps and smallcaps has made investors cautious about these segments. They are likely to remain under pressure in the near future.

Investors who are overweight on mid- and small caps should book profits  in these segments. They should also ensure that their portfolios are diversified across asset classes, which means they should have exposure to fixed income and gold as well.