Page 28 - Your Money

With benchmarks becoming harder to beat, avoid very high-cost funds

Portfolio construction begins with asset allocation, which depends on risk appetite and investment horizon

Multi-asset funds: Align fund's equity strategy with your risk appetite

Investors often latch on to an asset class after it has moved up considerably. Even if they are not reactive in their portfolio allocation, it is not an easy strategy to implement

Keep health cover comprehensive and contemporary by adding riders

Some base policies have restrictions, such as co-payment or room rent sub-limit. A rider can overcome these restrictions

Dynamic bond funds: Outsource duration investment bets to fund managers

Some dynamic bond funds could take on higher credit risk to boost returns as there is no regulatory curb on them in this regard

Unnerved by volatility? Trim mid, small and sector fund exposure

Foreign institutional investor outflows from India in October exceeded Rs 1 lakh crore, a level not seen even during Covid.

Pharma and health care funds: Defensive bets amid growing volatility

Altogether, 26 funds focused on pharma and healthcare collectively manage Rs 30,306 crore. Some of them offer exposure to global pharma stocks

After recent silver rally, limit exposure to 5%, enter with 7-year horizon

A weaker US dollar and lower Treasury yields have enhanced the appeal of precious metals

For exposure to stable and resilient businesses, bet on MNC funds

MNC funds invest in companies where foreign promoters have more than 50% shareholding

Limit small and medium Reit exposure at 5% till they develop track record

SM REITs are for investors looking to diversify

Make your investment portfolio more resilient by adding a quality fund

Investors are shifting from growth and speculative stocks towards quality stocks, which offer predictable earnings and tend to perform well in challenging market conditions

Travel insurance: Get pre-existing ailments covered by paying extra premium

Non-medical coverage includes trip cancellations, curtailments, flight delays, missed connections, and loss of checked-in baggage, passports, and other important documents

Festive car loan offers: Compare lender cost; higher rates may offset perks

Besides negotiating a good deal on the car, buyers must secure a favourable loan offer

Love bungee jumping? Take accident cover before your next adventure trip

A medical cover may handle medical expenses but does not provide for the temporary or permanent loss of income during the recovery period and after, and expenditures such as travel costs

Accumulate gold through SIP if portfolio allocation below 10-15%

The yellow metal may struggle if interest-rate cuts in the US are not significant, and the US economy remains stronger than expected

Buy-and-hold investors, avoid high secondary mkt premiums on SGBs

A key reason for the current delay is that SGBs have become an expensive borrowing route for the government

Buy art insurance cover on agreed value basis to avoid claim dispute

Art insurance offers protection against most of the risks like burglary, fire, water damage, accidental damage, terrorism, and many more

Investing in NBFC bonds: Strike a balance between return and rating

With more NBFCs tapping the bond market, interest rates are currently attractive

Avoid partial payout: Buy health insurance cover with fewer sub-limits

If you feel unfairly treated, you can complain to the insurance ombudsman or switch to another provider

Rate cuts and higher discretionary spending likely to boost tech funds

These schemes invest at least 80 per cent in shares of technology companies. As of August 31, 2024, 26 technology sector schemes managed assets worth Rs 45,637 crore.

Consider interest rate, collateral, cosigner terms when selecting lender

Indian students typically approach banks, NBFCs, and a few international lenders for foreign education loans