Page 4 - Your Money

Flexicap funds: Look for consistency of return, resilience during downturn

Flexicap funds see record inflows, but investors should focus on suitability, risk, and fund manager consistency rather than chasing short-term returns

Health insurance for cardiac patients: Specialised plans help, check terms

A specialised indemnity heart policy makes sense for someone diagnosed with a coronary disease, or one who has undergone a procedure like angioplasty or bypass surgery

Display steady credit behaviour for 3-6 months for easier card approval

Repay loans on time, keep credit utilisation below 30%, and avoid too many applications within a short period

Pension fund managers: Why consistency and risk matter in your choice

Choosing the right NPS fund manager requires evaluating returns, risk, and portfolio strategy across equity, debt, and government securities for long-term stability

Housing price growth slows: Developers with high inventory may negotiate

The exuberance seen in 2023 and early 2024 is no longer evident. Elevated property prices have strained affordability and slowed down the pace of transactions

Annuity plans: Compare payouts from various options, understand trade-offs

To tackle inflation, consider hybrid or increasing annuities, or combine fixed annuity with mutual funds; for legacy planning, opt for return-of-premium options

Negative returns in long-duration funds: Stay invested if horizon extends

New investors may make a staggered entry with a horizon that matches these funds' portfolio maturity

Health insurance claim rejections: Check coverage, exclusions first

Make full disclosure of existing conditions, lifestyle habits, and past treatments

Invest in gold, global funds to cushion portfolio against fall in rupee

Holding gold and global assets can help Indian investors hedge against rupee depreciation, manage inflation risks, and meet dollar-denominated goals such as overseas education and travel

Retirement funds: Invest if you are prone to panic-selling amid volatility

Sophisticated investors who manage diversified portfolios and don't wish to outsource asset allocation may avoid them

Begin work on improving credit score a year before applying for BFSI job

Employers are using credit history to assess candidates for roles involving clients' money, credit decisions, and sensitive financial data

Disclose high-value property gifts, taxable or exempt, in tax return

With high-value immovable property gifts now under SFT reporting, scrutiny will rise, making accurate disclosure of such transactions in income tax returns increasingly important

Correction in silver funds: Enter gradually with minimum five-year horizon

Existing investors who have become overweight after the bull run of the past year should book partial profits and rebalance

Motor insurance claims: Small lapses that can lead to costly rejections

Everyday mistakes, from delayed reporting to unauthorised vehicle use, can lead to a claim being denied

Year-end portfolio review: Book partial profits in silver and gold funds

Diversify internationally, continue SIPs in equity funds, and move towards medium and shorter-duration debt funds

Margin calls in gold loans: Avoid borrowing over 50-60% of pledged value

Maintain a liquidity buffer in case you get a margin call due to falling gold prices

Foreign property purchase: Remit own, tax-paid funds via authorised banks

Disclose the property every year under Schedule FA of your income-tax return

Keep overdraft use limited to urgent needs, avoid rolling over dues

Availing of this facility without a clear repayment plan can lead to financial stress and higher borrowing costs over time, experts warn

Loan guarantors face risks; negotiate cap on liability in loan deed

To protect insurance policies purchased for spouse from recovery proceedings, place it under Married Women's Property Act

Consumption funds: Hold if you can withstand volatility, invest for 5 yrs

New investors should stick to diversified equity funds; if they invest, they should take limited exposure in satellite portfolio