Page 5 - Your Money

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

World Savings Day: Save and invest before you spend, automate the process

Do financial planning to determine whether you are investing enough to meet your goals

Vehicle ownership transfer: Hand over only after submitting Form 29

Seller must ensure the vehicle remains insured during ownership transfer so that any liability is borne by the insurer, as per the Himachal Pradesh High Court ruling

Bank nomination rules amended to align with will, avoid disputes

For deposits, nominee shares should mirror the division in the will; for lockers, the order should match the will

Buy Now, Pay Later: Limit instalments to 10-15% of income, restrict usage

Those with multiple loans, irregular earnings, or poor repayment habits should avoid this form of quick credit

Tackling festive debt hangover: Repay high-rate loans on priority

Curtail new discretionary spending until existing EMIs are cleared; use secured loans to clear high-cost debts