Page 4 - Himali Patel

AI-based financial scams: Set a family code word for emergency requests

Pause and verify the caller's identity independently before transferring funds

Home loan insurance: Buy individual term cover for greater flexibility

Individual term plan stays with the borrower even if the loan is prepaid, refinanced or transferred, and payout goes directly to the nominee

Diversify your portfolio to guard against asset class leadership rotation

Investors can reduce the volatility that can arise from high exposure to a single asset class and earn sound risk-adjusted returns using a periodic table

Gold loan: Avoid maxing out on loan limit, maintain 20% valuation buffer

EMI-based repayment steadily reduces the principal and lowers LTV, offering better protection against price volatility than the bullet option

Reasonable valuations, earnings revival to aid small-cap funds in 2026

After underperforming in 2025, small-cap funds may see a turnaround as valuations become more reasonable and earnings revive; existing investors should stay invested, while new ones enter gradually

Term insurance: Marriage, childbirth, loans are triggers to raise cover

Experts say term insurance must be reviewed annually as income, liabilities and family responsibilities evolve, with life events often necessitating higher protection

Why a lower expense ratio alone may not be reason enough to switch funds

Focus on risk-adjusted performance, and switch only if it is below par for a sustained period

US-focused funds' outlook in 2026: Expect consolidation, moderate returns

US-focused mutual funds surged in 2025 on an AI-led rally. In 2026, expect consolidation and moderate returns; rebalance mega-cap tech exposure and invest in phases

Gold's outlook for 2026: Expect returns to moderate after scorching run-up

While existing investors should do partial rebalancing, new investors should enter in a staggered manner

Year-end fund review: Is underperformance cyclical or fundamental?

Temporary underperformance could be due to the fund manager's investment style not being favoured by the market currently; wait out such phases

Year-end portfolio review: Should you reduce weight of gold and silver?

Small deviations may be corrected by directing more money into underperforming assets like debt and equities

Overseas investments via GIFT City funds: Strong rules, simpler taxes

Taxes on capital gains and dividends are paid at the fund level; investors do not pay

Buy life insurance riders that align with your financial goals, risks

Understand exclusions, waiting periods, survival period requirements, and claim triggers before purchase

Take cover: Check details, seek written confirmation of terrorism insurance

Terrorism coverage under term, health, and home policies varies across insurers and products, may require rider, and could come with loadings for high-risk occupations and regions

Term insurance: Pick insurer with consistently high claim settlement ratio

A strong persistency ratio signals customer trust, better service and fewer disputes, while a high claim settlement ratio shows how reliably an insurer honours claims-key checks before buying term cov

Rich IPO valuations: Track post-listing performance before investing

Better price points, aligned to fundamentals, tend to emerge once the initial hype fades

Exit a fund only if risk appetite changes or tracking error widens

Experts say investors should not exit smart-beta funds due to short-term underperformance as factor strategies are cyclical and tend to recover

Retain transfer proof, receipts in political donations for future scrutiny

The receipt must have details such as donor name, amount, date, payment mode, PAN, and party registration number

Algo trading: Trade with multiple stop-losses, strict risk control limits

When selecting an algo, factor in not just the returns but also the costs incurred while trading

Go global to limit India-specific shocks, hedge currency risk

Limit global allocation to 10-15% initially, avoid chasing recent outperforming countries and themes