Page 3 - Himali Patel

Algo trading by retail investors: Trust back-tested data, not hype

Invest a small amount, observe performance, then scale up gradually

Balancing coverage and affordability in senior citizens' health insurance

Combining base policy with super-top-up can also help make premiums manageable

Sending money abroad: Choose platform that discloses exchange rates, fees

For the same amount remitted, compare how much the recipient will get across different service providers

Use a revised or updated income tax return to correct bogus deductions

Once scrutiny, surveys, or raids begin, correction options are no longer available

Precious metal ETFs: Avoid overexposure after gold, silver price surge

Limit allocation to 10 per cent of portfolio and enter with 7-10-year horizon

Flexicap funds: Freedom to shift across market caps helps mitigate risks

Flexicap funds suit investors who prefer to delegate market-cap allocation decisions to a professional

Motor insurance claims: Report theft quickly to aid investigation, recovery

Excessive delay in reporting can trigger suspicions of fraud or evidence tampering, experts say. Timely notification to both the police and the insurer is critical for smooth recovery

Arbitrage funds: Low-risk, tax-efficient option, enter with 6-month horizon

Arbitrage funds have become increasingly popular due to their low-risk nature and tax efficiency. With a 6-month investment horizon, these funds offer strong post-tax returns

How to fix credit report errors: Dispute on bureau site, alert lender

Having documents like no-dues certificates and records of repayment will strengthen your case

Only seasoned investors should venture into corporate bonds rated below AA

Diversify and ladder the bonds in your portfolio to further mitigate risks

Beware pressure tactics: Limited-time deals and fear-based appeals

This National Insurance Day, let us look at the various types of fraud that are taking place and how you can avoid falling prey to them

Bank's group coverage: Affordable, easier to acquire; but check for limits

Group insurance from banks may be affordable and easy to onboard but customers must watch for coverage limits, exclusions, and renewal risks before signing up

Balanced Advantage Funds: Ensure fund's strategy matches your risk appetite

Conservative investors should prefer a valuation-based approach, while those with a higher risk appetite should go for a fund focused on momentum

Keep 2 months' expense in savings account, move rest to liquid funds

Instead of chasing past returns, choose a fund with papers of high credit quality

Undisclosed crypto income: Respond to taxman's notice, file revised return

Underreporting or misreporting crypto income can lead to penalties ranging from 50 to 200%, even imprisonment of up to seven years

Pharma and health care funds hold promise but demand long-term view

Watch out for policy risks - tariff-related in US market and price control related in domestic market

Deferred annuity plans: Ensure retirement income with guaranteed return

Inflation will reduce value of payout, so invest part of retirement corpus in growth instruments

Tackling low savings rate: Automate with SIPs, retirement accounts

Control lifestyle inflation and avoid excessive reliance on debt by automating savings, budgeting better, aligning investments to goals and tracking progress regularly

Suitable bets for cost-sensitive investors seeking market returns

Passive midcap and smallcap funds offer simplicity and low cost, but investors must weigh the risks including tracking error, volatility, and lack of downside protection

Travel insurance: Choose sum insured based on health, age and trip type

Longer trips, adventure activities and remote destinations require higher coverage; policy sub-limits, pre-existing conditions and travel risks must be factored in