Page 5 - Himali Patel

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

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

Choose loan-against-property for higher amount, low rates, flexible end-use

Avoid taking out such a loan if you have irregular income, are retired, or approaching retirement

Compare Form 16 and 26AS carefully, alert employer promptly on errors

Deductions missed in Form 16 due to late or non-submission of proofs can still be claimed while filing return

Unlimited health cover is helpful, but ensure your plan has these features

A cumulative bonus rider can increase the sum insured without an increase in premium

Old vs new tax regime: Consider income and deductions before you pick

If you declared one regime to your employer for TDS but later find the other more beneficial, you can still switch when filing your income-tax return

Home insurance must: Loss of rent for landlord, liability cover for tenant

Insuring contents is critical if a property being rented is furnished; declare valuable items to insurance company

Quality theme fund: Invest for long-term steady compounding, lower downside

Quality funds tend to be less volatile and offer downside protection and often perform better in a bear market due to the stable earnings

Risk-tolerant, long-term investors may hold these in satellite portfolio

EW index-based funds can be more volatile due to exposure to smaller companies

Gold ETFs gain favour; choose ones with low cost, minimal tracking error

More investors now adhere to the principle of asset allocation. "Increasingly, they treat gold as a financial asset in their portfolio rather than just as jewellery," says Vikram Dhawan

Primary or secondary market home buy? Check budget, risk appetite to decide

You may get a lower price in the secondary market, but you must be prepared for a high upfront payout

Sebi circular on frauds: Verify registration before taking investment tips

Anyone claiming to be a Sebi-registered investment advisor or research analyst must provide a valid registration number

How to navigate a market when both equity returns and FDs are declining

Exposure to gold and longer-duration debt, and purchasing equity funds systematically as valuations soften can help investors navigate this phase

Sector & thematic funds: Investors with high risk appetite should stay put

Fund houses had earlier attracted inflows into S&T funds through new fund offers (NFOs), a strategy that is now losing traction

Exiting the markets now could prove costly as you may miss the rebound

Stick to the time-tested mantras of sticking to asset allocation, maintaining long-term orientation, and investing systematically to sail through these volatile times