Page 4 - Your Money

PSU bank ETFs and index funds: Rebalance instead of chasing momentum

New investors should take limited exposure with long horizon

Buy life insurance riders that align with your financial goals, risks

Understand exclusions, waiting periods, survival period requirements, and claim triggers before purchase

Midcap and smallcap funds: Continue SIPs despite recent anaemic performance

Maintain allocation to these higher-growth segments because of their potential to offer superior returns over the long term

Super top-ups in health insurance: Match deductible with base sum insured

When base and super top-up are from different insurers, the second insurer may offer reimbursement, not cashless

Allocate 30-70% of your equity portfolio to large-cap funds, say experts

Large-cap funds have shown steady performance, with recent results pointing to improving earnings momentum across leading companies. Experts say valuations look appealing for long-term investors

Term insurance: Pick insurer with consistently high claim settlement ratio

A strong persistency ratio signals customer trust, better service and fewer disputes, while a high claim settlement ratio shows how reliably an insurer honours claims-key checks before buying term cov

Rigorous due diligence key when buying property via bank e-auctions

While properties can be purchased in such auctions at a discount to market value, they carry the risk of hidden liabilities

Partial hospital bill payout: Boost policy cover to secure full claims

In particular, avoid room rent caps that lead to proportionate deduction

Rich IPO valuations: Track post-listing performance before investing

Better price points, aligned to fundamentals, tend to emerge once the initial hype fades

Exit a fund only if risk appetite changes or tracking error widens

Experts say investors should not exit smart-beta funds due to short-term underperformance as factor strategies are cyclical and tend to recover

Retain transfer proof, receipts in political donations for future scrutiny

The receipt must have details such as donor name, amount, date, payment mode, PAN, and party registration number

Use RERA portals for property due diligence before and after purchase

Whether you wish to assess a developer's track record or the quarterly progress of a project, this is the source you should turn to

Banking, financial services funds: Enter via SIPs with a 5-year view

If loan growth does not rise towards the 12-13 per cent range, valuations may shrink

Algo trading: Trade with multiple stop-losses, strict risk control limits

When selecting an algo, factor in not just the returns but also the costs incurred while trading

New investors should enter systematically with a minimum seven-year horizon

New investors should enter US-focused funds systematically with at least a seven-year horizon, while existing ones rebalance portfolios and moderate tech exposure amid high valuations

Health insurance sum insured: Review every 2-3 years to beat inflation

To strike a balance between the need for protection and affordability, combine base policy with super top-up

Go global to limit India-specific shocks, hedge currency risk

Limit global allocation to 10-15% initially, avoid chasing recent outperforming countries and themes

Use passive funds in portfolio for broad-based, low-cost, stable allocation

Avoid need to chop and change funds due to underperformance; supplement with active funds in satellite portion

Educate seniors on digital arrest scams; urge them to seek timely help

Remind elders that genuine officials never demand money or threaten arrests over the phone or video call

Sectoral ETFs: Invest if you anticipate turnaround in beaten-down sector

Avoid behavioural error of entering near cyclical peak and exiting around bottom