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Investing is a very tough exercise. So, how does one get started and keep following it year after year? Through Systematic Investment Planning, is known as SIP. What is Systematic Investment Planning? Well, Systematic Investment Planning is a way to ‘automate’ the habit of investing. It is a method of investing in Mutual Funds in a planned manner, wherein you can invest an amount of your choice in a mutual fund scheme at fixed intervals. This approach allows you to take savings and grow them in a way that leads you to generate wealth. Thus, making you a disciplined saver and investor as well as creating a healthy investment habit. You can start investing in SIPs with a small amount and gradually increase it over a period of time. In fact, you can take a call on how regularly you want to invest – it can be weekly, monthly, quarterly or even annually. Through the SIP investment option offered by Mutual Funds, you can achieve your goal of creating wealth over a long period of time – one of the powers of investing through SIP. Having learnt what SIP is, let us now delve into the Powers of SIP. 1. Power of Pocket Friendliness. Investing via SIP in mutual funds means that you don’t require a huge chunk of money to invest. You can start investing with as low as Rs.500. It allows you to invest in small chunks, thereby being pocket friendly. 2. Power of Balancing the Market Ups and Downs. Taking the SIP route to mutual fund investments opens up a window for the investor to invest in a time-bound manner without worrying about the market dynamics. Investing through SIP ensures that you don’t time the market. You keep on investing systematically, irrespective of the market’s ups and downs. 3. Power of Rupee Cost Averaging. It’s a fact that SIP works better than other investment methods available in the market, which allows lump sum investment, and this is because of rupee cost averaging. Under the rupee-cost averaging, one can typically buy more of a mutual fund unit when the prices are low, and similarly, one can buy fewer mutual fund units when the prices are high. It contributes to a good discipline. Also, it forces one to commit cash at market lows, when many other investors in the market are wary and exiting the market. On the other hand, it enables one to lower the average cost of their investment. So, from the above table, you can see that based on the market movements, the NAVs fluctuate and so do the units purchased and allocated to you. Essentially, you buy more when the markets are low and buy less when the markets are high. This ensures that you get maximum value for your investments even if the market is volatile. 4. Power of Compounding. It is often referred to as the eighth wonder of the world. Under the power of compounding, you not only get returns on the money which has been invested but also on the gains. One of the most significant benefits that investors can appreciate about the power of compounding is the value of time. With time, you could gain returns, and the yields on these returns could further generate returns, thus, helping to increase your investments quickly. And this way, an investor can create a significant amount of wealth over a period of time, subject to market conditions. Imagine you invest `5,000 every month. The interest on this amount is 10% per annum. Let us understand how your investment returns would look like over time: The above is only for illustrative purposes The above table clearly demonstrates the benefit of compounding. 5th years onwards, the wealth gains rise exponentially to generate Rs. 96 lakhs. Another thing that the table indicates is the importance of investing early or giving enough time for your investment to generate returns you would love to see, as well as having the patience to withstand the market ups and downs. 5. Power of Flexibility. Under SIP, the amount you invest periodically can be changed at any time according to your wish. The benefit it allows is that you can increase the investment amount as and when your incomes grow. In this way, you can increase the value of your returns too. Over the years, SIP has become the favorite mode of investing in mutual funds. It helps you to achieve your financial goals without putting much stress on your monthly budget. The only thing you need to do is select the appropriate mutual fund scheme as per your investment goal and follow a disciplined investing approach. Disclaimer: The section Knowledge Centre on this website is a platform for MeraNivesh By Rupaye Baba to spread awareness and educate investors about various Mutual Fund products. It should not be construed as an offer to sell nor is a solicitation of an offer to buy units of any of the schemes of any mutual fund. Figures indicated here are for illustrative purpose only and does not correspond to any live or historical data. The information herein above is meant only for general reading purposes and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Investment Specialist Larissa Fernand on getting the right picks for your Emergency Fund. A reader wrote in saying that he would like to keep the money allocated for his Emergency Fund in equities, or at least a hybrid fund because he may not need it for a long time. I completely disagree with him because he is working under the assumption that the emergency is many years away. The fact is that we do not know when an emergency creeps up; it could be later today, it could be 5 years down the line. Secondly, should he need the money when the stock market is in the doldrums, then he will lose out considerably. Thirdly, he is looking at wealth creation, when an Emergency Fund is simply a personal insurance of sorts. All assets cannot be part of an Emergency Fund. All assets cannot be part of an Emergency Fund. Only those which rank high on capital preservation (safety) and liquidity (quick accessibility). Real estate and art are illiquid assets. Fixed-return investments such as Public Provident Fund (PPF) and Employee Provident Fund (EPF) are extremely secure, but they are not very liquid. You will not get the money in 24 hours. The Emergency Fund is not a wealth creation avenue. So returns must take a backseat and volatile investments must be avoided. Stay away from stocks and equity mutual funds. You may need the money during the depths of a bear market and would be forced to sell investments at a huge loss. Consider debt funds. Liquid and Overnight funds meet the prime requirements of safety and liquidity. Both are open-ended debt fund categories that invest in high credit quality instruments entailing minimal credit and duration risk. Both types of funds have portfolios diversified across high credit quality instruments with minimal duration risk. They are typically accessible within T+1 days (T being date of redemption). Your Emergency Fund can have the above debt funds and a bank deposit too. It need not be one to the exclusion of the other. It can be a combination of investments, but all should rank high on the safety and accessibility scale. I personally know someone who has a significant amount in his Emergency Fund as he has a wife and children as dependents, and also helps his parents. He has distributed the money between a bank fixed deposit, a liquid fund, an overnight fund and even an ultra-short term bond fund. Some inputs from Dhaval Kapadia, Director, Managed Portfolios, at Morningstar India, on the debt funds. Safety and Liquidity are the key focus when it comes to Liquid and Overnight funds. Returns take a back seat. Liquid funds invest in short-term instruments, certificates of deposits (CD), commercial papers (CP), treasury bills (T-bills), repo, and so on. The average maturity of such funds is typically around 1-2 months. Given the short tenor of the underlying instruments, the yields (YTMs) offered by such funds closely track interest rates in the money markets as the maturity proceeds of underlying instruments are rolled over and invested at the prevailing market rates. Evaluate the credit quality of the holdings and always check the expense ratio of the fund. A lower expense ratio results in higher returns assuming other fund attributes are similar. There is no exit load but do look at taxation. Capital gains in case of holding periods up to three years are termed as short-term capital gains (STCG) and taxed at the marginal rate of income. Capital gains in the case of holding periods of more than three years are termed long-term capital gains (LTCG) and taxed at 20% with indexation. This is important. Ensure that nominees and joint accounts are in place. The money must be easily accessible to you and your immediately family. It will be a shame if the family members who need to access the money are not authorised to do so. The amount could vary from 6 to 12 months of expenses. It all depends on how many dependents you have, if your spouse is earning too, and if you are servicing any loans. Evidently, the amount could vary over different phases of your life. If you are newly married with both spouses earning, the Emergency Fund could even be just three months of expenses. But over the years, if a parent moves in and you have a child, the Emergency Fund must balloon accordingly to take care of additional dependents. Start Creating your Emergency Fund Now.

हाल ही में कुछ निजी इक्विटी (PE) निवेशकों ने हमसे संपर्क किया है जो अपनी निवेश निर्णय लेने की प्रक्रिया में कृत्रिम बुद्धिमत्ता (AI) का और अधिक लाभ उठाना चाहते हैं। उनका पहला सवाल आम तौर पर होता है: "अन्य PE निवेशक वर्तमान में निर्णय लेने में सहायता के लिए AI का उपयोग कैसे कर रहे हैं?" एक बहुत ही रोचक सवाल पूछा जाना है। सार्वजनिक बाजारों की तुलना में PE निवेश में AI का उपयोग बहुत कम व्यापक है। जबकि ईटीएफ जैसे व्यावसायिक रूप से उपलब्ध सार्वजनिक बाजार के उत्पाद हैं जो 100% AI-निवेशित हैं, यहां तक ​​कि सबसे परिष्कृत PE निवेशक अभी भी AI का उपयोग केवल निवेश निर्णय लेने की प्रक्रिया में एक इनपुट के रूप में करते हैं। यह ज्यादातर PE और सार्वजनिक बाजारों में निवेश के बीच तीन संरचनात्मक अंतरों के कारण है: 1. एल्गोरिदम को प्रशिक्षित करने के लिए बड़ी मात्रा में PE डेटा एकत्र करना मुश्किल है, क्योंकि लेनदेन की संख्या सीमित है और जानकारी व्यापक रूप से प्रकट नहीं होती है। 2. PE निवेश निर्णय के परिणाम को जानने में वर्षों लगते हैं, और प्रदर्शन आमतौर पर जटिल कारकों से प्रभावित होता है, जैसे कि ब्याज दर में उतार-चढ़ाव। 3. PE निवेश में असंरचित डेटा बहुत अधिक महत्वपूर्ण भूमिका निभाता है, क्योंकि मूल्यांकन को नियंत्रित करने वाला कोई "कुशल बाजार" नहीं है। इन संरचनात्मक चुनौतियों को दूर करने के लिए, कुछ PE खिलाड़ी निवेश मॉडल को अलग तरह से प्रशिक्षित करना चाहते हैं। यह सार्वजनिक डेटा के साथ शुरू हो सकता है और अंत में मॉडल को "फाइन ट्यून" करने के लिए केवल निजी डेटा का उपयोग कर सकता है, संभावित PE निवेश के आकर्षण का मूल्यांकन करने के लिए सार्वजनिक बाजार प्रॉक्सी का लाभ उठा सकता है। इसमें मुख्य डेटा क्षमताओं में निवेश करना भी शामिल हो सकता है, जैसे डेटा लेक, उचित परिश्रम प्रक्रिया में असंरचित डेटा के अधिक से अधिक उपयोग को सक्षम करने के लिए। हमने जो PE निवेश में AI के लिए सबसे आम उपयोग के मामले देखे हैं, उनकी रूपरेखा नीचे दी गई है। ध्यान दें कि, इन मामलों में, AI निर्णय लेने के लिए जिम्मेदार व्यक्ति को इनपुट प्रदान करता है - हमें अभी तक PE स्पेस में AI के नेतृत्व वाली किसी भी रणनीति के बारे में जानकारी नहीं है। प्रबंधक चयन: अप्रत्यक्ष निवेश मॉडल वाले PE निवेशक आसानी से बाहरी PE प्रबंधकों के बारे में अच्छी मात्रा में जानकारी एकत्र कर सकते हैं। AI एल्गोरिदम को तब धन उगाहने की प्रक्रिया में प्रकट की गई जानकारी, प्रबंधक डेटा के एग्रीगेटर्स (जैसे प्रीकिन), उद्योग / शैक्षणिक विशेषज्ञों द्वारा प्रकाशन और प्रेस कवरेज का उपयोग करके प्रशिक्षित किया जा सकता है। निजी लेनदेन करें: टेक-प्राइवेट प्रोग्राम के साथ PE निवेशक AI का लाभ उठा सकते हैं ताकि संकट में आने वाले संभावित लक्ष्यों की पहचान की जा सके (उदाहरण के लिए, सोशल मीडिया साइटों में आपूर्तिकर्ता समीक्षाओं के आधार पर भावना विश्लेषण के माध्यम से) और एक औपचारिक बिक्री प्रक्रिया को आगे बढ़ाएं। AI संभावित लक्ष्यों की पहचान करने में भी मदद कर सकता है जो सार्वजनिक रूप से कारोबार करने वाले अन्य साथियों से बेहतर प्रदर्शन कर सकते हैं। तपस्या लेनदेन: PE निवेशक जो लागत में कमी और अन्य मितव्ययिता उपायों के माध्यम से ड्राइविंग मूल्य पर ध्यान केंद्रित करते हैं, उनके पास संभावित लक्ष्यों के लागत आधार में अधिक पारदर्शिता प्राप्त करने के लिए परिश्रम प्रक्रिया में AI का लाभ उठाने का अवसर होता है (उदाहरण के लिए, प्राप्तियों के माध्यम से जल्दी से झारना और खर्चों को अधिक सटीक रूप से वर्गीकृत करना) , और इसका उपयोग मूल्यांकन को सूचित करने के लिए करें। जबकि PE में AI के लिए अभी शुरुआती दिन हैं, हमारा मानना है कि AI निवेश निर्णय लेने की प्रक्रिया में सूचना विषमता को कम कर सकता है, जिससे बेहतर जोखिम-समायोजित रिटर्न को अनलॉक करने में मदद मिलती है। PE खिलाड़ियों के लिए जिन्होंने अभी तक अपनी AI यात्रा शुरू नहीं की है, हम तीन सवालों के जवाब देकर शुरुआत करने की सलाह देते हैं| - हम अपनी AI यात्रा में कितना वित्तीय और प्रतिष्ठित जोखिम स्वीकार करने को तैयार हैं? - बड़े पैमाने पर संस्थागत डेटा को व्यवस्थित करने का सबसे आसान तरीका क्या है? - तकनीक के साथ सहज होने के लिए हम किन सरल AI अनुप्रयोगों के साथ प्रयोग कर सकते हैं? दौड़ शुरु है। बातचीत जारी रखना चाहते हैं? तो, अभी संपर्क करें। कुछ संक्षिप्त शब्दः - PE (Private Equity) - AI (Artificial Intelligence - कृत्रिम बुद्धिमत्ता ) Let understand How Private Equity Investors Are Using Artificial Intelligence. We have recently been contacted by some private equity (PE) investors who are looking to further leverage artificial intelligence (AI) in their investment decision making process. Their first question is typically: “How are other PE investors currently using AI to help make decisions?” A very interesting question to be asked. The use of AI in PE investing is far less pervasive than in public markets. While there are commercially-available public markets products like ETFs that are 100% AI-invested, even the most sophisticated PE investors still only use AI as one of the inputs into the investment decision making process. This is mostly due to three structural differences between PE and public markets investing: 1. It is difficult to gather large amounts of PE data to train algorithms, as the number of transactions is limited and information is not widely divulged. 2. It takes years to know the outcome of a PE investment decision, and performance is usually impacted by convoluting factors, such as interest rate movement. 3. Unstructured data plays a much more critical role in PE investing, as there is no “efficient market” governing valuations. To overcome these structural challenges, some PE players are looking to train investing models differently. This could entail starting with public data and only using private data to “fine tune” the model at the end, leveraging public market proxies to evaluate the attractiveness of a potential PE investment. It could also include investing in core data capabilities, like data lakes, to enable a greater use of unstructured data in the due diligence process. The most common use cases for AI in PE investing we have seen are outlined below. Note that, in these cases, AI provides input to a human responsible for making the decision – we are not aware of any AI-led strategies in the PE space as of yet. Manager selection. PE investors with an indirect investment model can easily gather a good amount of information on external PE managers. AI algorithms can then be trained using information disclosed in the fundraising process, data from aggregators of manager data (such as Preqin), publications by industry/academic experts and press coverage. Take-private transactions. PE investors with a take-private program can leverage AI to identify potential targets heading into distress early on (for example, through sentiment analysis based on supplier reviews in social media sites) and front-run a formal sale process. AI can also help identify potential targets that are most likely to outperform other publicly traded peers. Austerity transactions. PE investors that focus on driving value through cost reduction and other austerity measures have an opportunity to leverage AI in the diligence process to achieve greater transparency into the cost base of potential targets (for example, to quickly sift through receipts and more accurately categorize expenses), and use that to inform valuation. While it is still early days for AI in PE, we believe AI can reduce information asymmetry in the investment decision making process, thereby helping to unlock superior risk-adjusted returns. For PE players that have not yet embarked on their AI journeys, we recommend starting by answering three questions: – How much financial and reputational risk are we willing to accept in our AI journey? – What is the easiest way to organize institutional data at scale? – What simple AI applications can we experiment with to get comfortable with the technology? The race is on. Want to continue the conversation? Contact me now.

The insurance regulator has clarified that insurance agents and intermediaries can use the upcoming digital distribution platform ‘BIMA SUGAM’. Soon insurance agents and intermediaries will be able to sell and renew insurance policies and make claim requests completely online. IRDAI will soon launch Bima Sugam, a digital platform that will enable investors to buy, renew, port and make claim requests completely online. In a recent interview with PTI, Debasish Panda, Chairman, IRDAI said that Bima Sugam will be a UPI moment for the insurance industry. He also clarified that insurance intermediaries including agents, brokers, IMFs and web aggregators will have access to this portal. A member of the newly formed committee to develop Bima Sugam told that the insurance regulator is also thinking about launching a single policy which may offer life and health coverage to an individual through this portal. “The market regulator is also thinking about offering a bundled product for individuals through which they can get life coverage as well as health coverage through a single premium,” he added. The platform would be simple to use and it will enable policyholders to buy new policies simply through their Aadhaar, he added.

If there is one thing that the equity market is associated with, it is 'RISK'. As per a strictly financial definition, risk refers to volatility in the market. However, several investors associate the term along the lines of losing out on their money or suffering fluctuations for which they were not prepared. Since risk has such a hefty bearing on investment decisions of individuals, it is important to have an understanding of the risk profile to manage risks effectively. What is a Risk Profile? One can understand the risk profile as the quantification of risk tolerance of an individual. Every individual has a different tolerance to market volatility or risk based on several factors like disposable income, age,life style, goal, horizon, etc. Therefore, risk profiling helps both an investor and financial advisor to create a specific investment portfolio with an asset mix correlating to his risk profile. Organisations also use the term 'RISK PROFILE' to define the potential threats to which it is exposed. By identifying the risk profile, organisations can take corrective or pre-emptive measures to minimise, and sometimes, even avert impending losses. However, the term's predominant use is found in the context of an individual's risk tolerance. Risk tolerance, on the other hand, refers to an investor's willingness to take risks or the level of volatility in returns one is ready to deal with. A risk profile example pertaining to risk aversion would be of an individual who would rather maintain the value of their portfolio than aim for high or even moderate returns. On the other hand, an individual who is prepared to withstand market volatilities with the aim to earn exponential returns is a classic instance of a risk-seeker profile. Risk profile evaluation. Investors often vet their financial standing, i.e. balance between assets and liabilities, to evaluate the level of risk they can take. Financial advisors also utilise the asset- liability balance of an investor as a towering factor of risk profile determination. For instance, an individual who has several assets at his/her disposal in comparison with very few liabilities will likely be a risk- seeker. An individual with sufficient retirement capital, emergency funds, and no loans will be in that category. Investors often vet their financial standing,i.e. balance between assets and liabilities, to evaluate the level of risk they can take. Financial advisors also utilise the asset- liability balance of an investor as a towering factor of risk profile determination. For instance, an individual who has several assets at his/her disposal in comparison with very few liabilities will likely be a risk- seeker. An individual with sufficient retirement capital, emergency funds, and no loans will be in that category. Since such investors' financial standing would not suffer greatly due to short-term market volatilities, they can afford to look at the bigger picture of exponential returns at that cost. However, an individual whose asset value is not all that substantial, but his/her liabilities count is significant will most likely be risk- averse. This category of investors possess limited wiggle room in their budget for accommodating loss from short-term volatilities and will be definitely more inclined to look for a safe investment haven. One should note in this context that a healthy share of assets and fewer liabilities does not always prompt an individual to undertake a risky investment approach. It strictly depends on an individual's own psychology of risk in that case. Apart from the asset-liability balance, a few other factors that have a bearing on person's risk profile are: Types of Risk Profiles Broadly, the risk profile merits three distinctive types. These three types further constitute various subtypes based variation in the factors mentioned above. The three broad types of risk profile are: • Conservative: Conservative risk profile refers to a significantly low-risk aptitude. Investors with this risk profile will lean towards investment options that provide the safety of the corpus more than anything. The scale of returns is a secondary factor to conservative investors as long as it is not negative. Typically, a conservative risk profile accounts for a short period horizon.: Investment options most suited for conservative or low risk-takers are treasury bills, corporate bonds, sovereign bonds, debt- based mutual funds, etc. • Moderate: Moderate risk-takers usually strive to strike a balance between returns and risk. These types of individuals will go for high returns scaled to an agreeable level of risk. Therefore, a moderate risk-taker's portfolio will constitute a moderate share of equities with debt instruments for adequate risk dilution. Such risk-takers can also singularly invest in equity-based mutual funds. • Aggressive: This risk-profile exhibits the most willingness for withstanding market volatilities in the expectation of earning exponential returns. Usually, these investors are seasoned and well conversant in the ways of stock markets. Apart from that, such investors also have a long-term investment horizon; which is why they can stomach the short- term volatilities. These investors predominantly go for equities and usually have a healthy asset- liability balance, and sometimes young individuals with sufficient disposable income also fit this investment risk profile. How is Risk Profile Prepared? Usually, financial advisors and robo-advisors create the risk profile of investors by means of questionnaires. These questionnaires aim to fit the subjective risk-appetite of an individual in numeric terms or any objective field. Also, they can contain choice-based questions or otherwise or both to adequately measure an individual's risk profile, as the respective financial advisor or institution sees fit. Nevertheless, any individual's risk profile should be a well-thought mixture of what they are aiming for, return-wise, and the amount they are willing to invest, plus the period for which they can maintain such investment. Provision of Personal Risk Profiling can be done after Sign Up Or Sign In to Member Login our CRM Portal. This tool is very much important and useful to construct your portfolio.

Once upon a time, I sent out an email asking people on my mailing list a simple question: Is it hard for you to talk about money with your spouse or partner? I got hundreds of replies, including this one, which I found particularly difficult to read: The answer is YES! It is hard, because it often feels defensive. She spent too much. He spent too much. Was that aligned with our values? What are our values? How come there isn’t more? And if only she would spend less, then I wouldn’t have to work so hard. 🙂 And now, drum roll please… the part of that message that made it so hard to read: From, The Spouse. In other words, MY spouse! I have to admit that upon reading that, I was discouraged. There was even a part of me that felt like a fraud. Who am I to be talking to other people about money if my own wife feels this way? But I also need to admit that she’s right. It’s challenging for us to talk about money. Not just with each other, but with our parents, our children, even our siblings, and friends. And you know what? That’s OK. This, my friends, is one of the keys to talking about money: knowing that it’s going to be hard. Sometimes, it’s going to be painful. And that’s OK. At that time, my wife and I had been married for 23 years. She was my best friend then, in spite of the fact that we’d had more fights about money than I’d care to admit. And you know what? We’re still married, she’s still my best friend, and we still have fights (or at least arguments) about money! That’s the point. In spite of the difficulties we have talking about money, we’ve both agreed not to give up. Talking about money may not be necessary for all couples. If you’re one of those rare people, great! More power to you. But I doubt that is the case for the vast majority. My own experience is that talking about money is unavoidable. Like taking out the trash and doing the laundry, it’s just one of those things that has to happen. And if that rings true, then you really have just two options: 1- You can end your relationship with someone, and then you won’t have to talk about money with them ever again. 2- Or, you can keep trying. My advice? Keep trying. -Carl from BEHAVIOUR GAP.

When buying life insurance, you’ll need to decide how long your policy will last. How long do you need life insurance? If you buy term life insurance: your coverage will be temporary and inexpensive. If you choose Whole life insurance: your coverage will be more expensive, but it will protect you for your entire life. How Long Should I Get Term Life Insurance? Unlike endowment life insurance, like whole life and term life insurance won’t cover you for your entire life. You will get to pick how long your life insurance policy lasts by choosing the term length. The term that you choose will depend on your coverage needs. Picking Your Term Length Term life insurance has several popular term lengths that you can choose from. The most common terms are: 10-year term, 20-year term, and 30-year term. You’re not limited just to those. There are other terms available such as 15, 25, 35 …and even a 40-year term. 10-Year Term A 10-year term is short term coverage. It’s sometimes used to cover unplanned situations. For example, maybe you refinanced your home or have some other debts that are only for a few years. Perhaps you have a 10-year business loan that your lender requires life insurance to cover. Maybe you have a health condition that will make long term coverage unaffordable. A 10-year term can be purchased until your health improves and can get a better rate. 20-Year Term A 20-year term is a popular choice for young parents looking to provide coverage until the kids are grown and out of college. It’s also good for anyone who has less than twenty years on their mortgage. 30-Year Term A 30-year term is the typically the longest term available for every life insurance company. For all other companies, a 30-year term policy will give you the longest term coverage. It’s a popular choice for newlyweds and young professionals. It’s also a great choice for the breadwinner of the family. 40-Year Term Banner is the only life insurance company to offer level premium coverage for up to 40 years! Banner OP Term 40-year term is a great option for anyone needing long term coverage, but at affordable rates. Figure Out Your Coverage Length To figure out how long your term life policy should last, you need to be aware of why you’re buying term. Are you near retirement and only need short term coverage? Are you younger and need income replacement for the next 30 years? Your specific goals for coverage will help determine your coverage length. Here are our Top 3 ways to figure out how long should your term life insurance policy last. 1. Cost Some coverage is better than nothing. Make sure you purchase a cheap term life insurance policy that you can afford. Don’t buy a policy that will be difficult to pay for consistently. You don’t want to pay for a policy that will end up lapsing in a few years. 2. Age How old are you now? How old will you be when your term life policy expires? Will you need another policy after your term is done? Your age plays a big role in your rate. It’s important to figure these things out now so there aren’t any huge surprises later on. 3. Goals What are your major goals for coverage? Are they to cover short or long term needs? Do you just need a simple policy to cover your funeral and burial expenses? Perhaps you’re a millionaire and need a policy to avoid estate taxes or leave an inheritance. There are many goals for life insurance and they will help determine how long your policy should last. 4. Mortgage Do you have a mortgage? How much time is left until it’s paid off? Make sure your policy covers the length of your mortgage as this is often your biggest asset and liability. 5. Retirement Do you know when you’re retiring? Will your life insurance policy be needed when you retire? If you’ve saved and invested for retirement, your life insurance needs will be different compared to someone who hasn’t. What About Whole Life Insurance? Do you need life insurance to cover you for your entire life? If so, term life isn’t the answer. A whole life insurance will provide you lifetime coverage, and you’ll have a few options to choose from. How About Whole Life Insurance? Whole life insurance has its place, but it will be the most expensive life insurance policy. Whole life will provide you lifetime coverage and a level premium. It’s a good option for cash value growth, estate planning and for high net individuals. Take Charge There’s a lot to consider when trying to figure out how long to get life insurance. With term life, be very careful when choosing how long you want your term to last. Use this article to figure out what’s best for you and your loved ones. Are you ready to take action? Here’s how: Insurance is subject matter of solicitation.

I should start investing for Pension. Otherwise, I may require to work in old age. Let me go through now.

A mutual fund is a type of investment instrument available to investors who have a common investment objective. The money pooled together from different investors is invested in across asset classes such as equity, debt, gold, money market instruments, foreign securities and other securities as per the investment objective of the individual mutual fund scheme in order to take the benefit of diversification and professional portfolio management at a relatively lower cost. Disclaimer: The section Knowledge Centre on this website is a platform for MeraNivesh By Rupaye Baba to spread awareness and educate investors about various Mutual Fund products. It should not be construed as an offer to sell nor is a solicitation of an offer to buy units of any of the schemes of any mutual fund. Figures indicated here are for illustrative purpose only and does not correspond to any live or historical data. The information herein above is meant only for general reading purposes and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.