Page 4 - Guide To Personal Finance

Beyond FDs: Blend growth and income assets in retirement portfolio

Senior citizens may invest in high-quality bonds, senior citizens savings schemes, and post office monthly income schemes

Allocate 5-10% to banking funds to gain from rate cuts, valuations

Since banking and financial services is a large listed space, it has 55 passively and actively managed funds. The most recent addition is Bandhan Nifty Bank Index Fund

Passive multicap funds: Low cost, broad exposure without fund manager risk

Multi-cap schemes allocate at least 25 per cent each to large, mid, and small-cap stocks, with the remaining 25 per cent invested at the fund manager's discretion

Start, maintain Public Provident Fund account, even in new tax regime

Since PPF is a government-backed scheme, it offers full capital protection and guaranteed, risk-free return

File revised return with caution as repeated filings invite scrutiny

A taxpayer who does not revise their return within the stipulated deadline would be stuck with the original return, including its errors

Overlook recent outflows and invest in ELSS if you are in old tax regime

They remain attractive for investors having higher risk appetite and longer horizon

Don't let tax rate hikes disrupt wealth creation through equity funds

International, gold and silver funds and ETFs will be taxed more favourably from next year

BAFs: Check equity exposure range; select fund based on risk appetite

Currently, retail investors perceive equity market valuations to be expensive

Conservative hybrid funds can be a better bet than fixed deposits

Asset allocation ensures investor gets small exposure to stocks in a predominantly bond portfolio

Buy adequate home insurance to rebuild property in case of monsoon damage

Use carpet as measure area to determine the sum insured

Stop revolving credit card dues and replace with lower-cost debt

"Credit cards demand responsible usage. Due to high interest rates, late payments on credit card bills can snowball, pushing you into a debt trap," says Adhil Shetty, CEO, BankBazaar

Cashless claim denied? Bank on credit card, pledge gold or fixed deposit

Keep some emergency cash at home and ensure your credit card limits are adequate

Fear the market turbulence? Ulips will keep your investment safe

Some insurers have been advertising their mid- and small-cap funds heavily. Some distributors and agents have also piggybacked on the popularity of mutual funds (MFs) to sell Ulips

Engine protection cover: Must-have in areas prone to heavy rains

While traversing a flooded road, water can enter engine, causing damage. This is usually not covered by comprehensive policies. To get this coverage, customers need to buy the engine protection cover

Mutual funds or NPS? Go for both if you don't mind latter's lock-in

MFs offer investors access to a wider range of assets (gold and international funds), fund houses and fund managers. Barring ELSS, the open-ended funds offer anytime liquidity

Business and economic cycle funds: Dynamic style provides the edge

Business cycle funds invest in themes expected to do well over the medium to long term, such as digital businesses, prem­ium­isation of consumption, and urbanisation

Switched jobs? Align multiple Form 16s for accurate income tax filing

Also ensure that Form 16 and Form 26AS contain identical TDS details

Gratuity explained: Delay in payment? You are entitled to receive interest

Organisations with 10 or more employees over the past year must pay gratuity. In non-mining roles, a year consists of 240 working days; in the mining sector, it is 190 days

Fix mismatches between Form 26AS and 16 before income tax filing

Form 26AS is a consolidated tax statement showing taxes deducted, tax credits, income sources, and tax deducted at source (TDS) and tax collected at source (TCS)

Don't chase past performers in equity markets, build all-weather portfolio

The bottom line: switching strategies does not boost returns