Investment in gold and equities is an option, but the risk-averse should go for part-prepayment.

Have surplus, will prepay?

Business Standard

With a majority of diversified schemes performing below benchmark, one could look at this alternative.

Taking the index fund route on equities

My wife, 32, and I, 35, plan to buy a house. The property costs Rs 35 lakh (including the stamp duty and the registration). We have saved Rs 15 lakh for the down payment in the past 4 years. This is more than the margin money we must put in while taking a housing loan. Does it make sense to borrow a lower amount? The banker suggests we borrow 80 per cent of the price.

Financial Planning: Gaurav Mashruwala

Health insurance portability to be limited to non-life insurers.

Pay higher premium for lower cover

In a bid to ensure higher volumes, New Pension Scheme (NPS) fund managers have told the Pension Fund Regulatory and Development Authority (PFRDA) that they should be allowed to use their respective distribution networks (mutual fund agents) to sell the pension plan.

Let MF agents sell pension products: NPS managers

Hold on, caution experts, who explain why raw investors wanting an alternative to equities should rather stick to bullion.

Limit exposure to commodities

Income tax payers who come under the Rs 5 lakh income category and haven&rsquo;t had to file returns for financial year 2011-12 would be wondering how to keep track of taxes (tax deducted at source) paid by their employers.

Tracking the TDS

Banks have ready access to their customer's money. This trust reposed in them is liable to abuse, as they may take undue advantage and resort to illegal means to recover their dues. This happens quite often, but very few know their rights and how to assert them.

Bank does not have lien over the guarantor's funds

I sold a property for Rs 3 crore. My chartered accountant says I will be taxed at 20 per cent with indexation. But tax can also be computed without it.

Taxation: Homi Mistry

RBI says these should be &lsquo;usually constant&rsquo;; loan documents are vague on this issue, but banks reserve the power to change.

Home loan spreads are a grey area for customers

To help borrowers cope with the 11 interest rate rises since March 2010, fixed-cum-floating rate housing loans are back. ICICI Bank launched a fixed rate home loan last month, followed by HDFC's Fixed First earlier this month. The latest entrant is India Infoline Investment Services' Mortgage SteadiLoan. All three say the fixed rate products would protect borrowers from rising rates over the next couple of years.

No discount to existing rates

Gold is grabbing headlines almost every day. We Indians have been accumulating gold for generations by way of jewellery and hold the largest quantity in the world. Official estimates put Indian gold holding at more than 18,000 tonnes, worth a trillion dollars. Unofficial estimates peg the holding far higher.

All that glitters is not so golden

I have been saving for my son's higher education for the past 15 years through the public provident fund (PPF), which will mature in two months. I have managed to save Rs 12 lakh. However, I understand the corpus will not suffice, since my son wants to study abroad. I have another seven years to arrange for the requisite amount (currently around Rs 25 lakh).

Financial Planning: Malhar Majumder

Invest in bonds and another property to save tax on capital gains.

How to gain from property sale

With petrol prices and interest rates high, it would help to limit extravagant purchases this festive season and invest, till the tide turns.

Resist the temptation

State Bank of India to pass on policy rate hike to consumers in two-three weeks.

Loan rates to pinch this festive season 

Personal finance solutions websites are increasingly becoming popular by helping users cut on their spending and providing high security levels.

One stop shop: Track your money online

Items costing under Rs 1 cr are covered under householders&rsquo; policy; there are specific schemes for more expensive ones.

Cover for art has tough norms

Investors in both equity and debt are in a quandary. With equity markets being highly volatile, it is very difficult to take a call whether one can enter now. On the other hand, the returns from debt instruments like a fixed deposit, while very good now, could be peaking or, at best, give only marginally higher returns.

Balanced funds to the rescue

As an equity investor, you have an option to either invest directly into the stock market or allow the professional mutual fund (MF) managers to manage your money via a variety of equity funds. Needless to say, if you are not familiar with the stock market and do not have the wherewithal to keep track of your equity portfolio, you should opt for MFs.

How to manage your equity fund portfolio

I am getting married in a couple of months. My fiance and I want to buy a car (up to Rs 5 lakh) two years from now and save Rs 5 lakh for kids three to four years later. We have Rs 5-6 lakh investments in fixed deposits and the public provident fund. We both are repaying a home loan each (EMI = Rs 18,000). Another important goal is to start prepaying in five to six years. How do we starting planning? We earn close to Rs 40,000 each.

Personal Finance: Read about the smart strategies for Personal Finance Planning, Investing, Insurance, banking, budgeting, loans Tax Planning, retirement and insurance. Browse Business Standard to learn more on Personal Finance.

Personal Finance: Investing, Planning, Retirement, Loans, & Insurance | Business Standard

Read about the smart strategies for Personal Finance Planning, Investing, Insurance, banking, budgeting, loans Tax Planning, retirement and insurance. Browse Business Standard to learn more on Personal Finance.

Page 894 - Personal Finance