Page 71 - Financial Investment

Debt funds score over fixed deposits

Invest cautiously in outperforming assets

Sometimes, a contrarian call can fetch better returns. But, have patience

Match debt fund maturity to goals

Use short-term funds for ensuring emergency liquidity

Opportunities for long-term investor

The markets aren't expecting too much on the reforms front due to political instability

Case study

Realty check

Budget: Rs 1 crore to Rs 1.5 crore

Another insurance-cum-investment product

LIC's product gives lower maturity benefits and returns in the long run

Mutual funds, insurance plans not tax-effective for retirement

But returns from EPF and PPF are not very high. Have a diversified product mix

One travel allowance can be extended

If you don't use the two LTA exemptions by December 2013, one can be availed of in 2014-17

Travel without burning a hole in your pocket

Cut costs by booking tickets and hotel rooms in advance, opting for group packages, eating and shopping where the locals do

Tipping point

Taxation: Homi Mistry

Gold perception needs to change

Making a call on gold price trends through 2013 will be a toss-up

Parents are best teachers

Even before you start earning, learn the art of saving from parents

Stocks beat other investments in long term

Returns may be lumpy and volatile. But longer the hold, higher the returns and lower the risks

Tax benefits for children

School fees, education loan and health costs qualify for exemptions

Tax-free bonds good for those in higher bracket

No TDS is good, but it need not mean higher returns for all

Watch out for excess debt

Keep all monthly repayments to less than 45 per cent of take home pay

Markets could correct this year

A 20-30 per cent correction is likely while the upside is limited to 10 per cent

IIP data does not justify rise in equities

Either the market will correct down in the next few months or IIP must zoom up. The divergence cannot go on forever