PrimeInvestor - Articles and Reports

Safety 
Bonds & Deposits
Aarati Krishnan

What we look for in FDs – The PrimeInvestor approach

“Is my fixed deposit with so-and-so company safe?” This query is cropping up often, after the recent default on fixed deposit repayments by Dewan Housing Finance Limited and RBI’s strictures on PMC Bank.

At PrimeInvestor, our approach to curating a list of fixed deposits is to put safety far ahead of return considerations. Here’s the approach we use to choose our recommended list of FDs.

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Active vs Passive 
Mutual funds & ETFs
Aarati Krishnan

What are the risks in index funds?

As some categories of active funds in India such as large-cap funds, have struggled to beat the sprinting Nifty50 and Sensex30 in the last couple of years, there’s a surge of interest in index investing.

But are there risks in index investing that investors are ignoring? Read on to find out.

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Insurer 
Insurance
Aarati Krishnan

Is your insurance company solvent?

Most of us buy insurance to make sure that our finances, or those of our dependants, are protected from fate’s sudden googlies. But what if the insurance company you’re relying on is in a shaky financial situation? This risk is not an outlandish one in India.

Recently, IRDA (Insurance Regulatory and Development Authority) asked Reliance Health Insurance Company to stop selling new health policies and to transfer its older policies to Reliance General Insurance Company, after finding that it was unable to maintain its solvency margins at statutory levels. In June 2017, IRDA had ordered Sahara Life Insurance to stop issuing new life policies and had directed its takeover by ICICI Prudential Life Insurance. The order was later overturned by SAT.

If you’re looking to buy a life or a general insurance policy, it is best to vet your insurer before signing up to avoid such uncertainties. What are the checks you can run to ensure that your insurer is in it for the long haul?

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Bonus 
Insurance
Aarati Krishnan

How LIC’s bonuses work

LIC’s annual bonuses come out of the valuation surpluses in policyholders’ funds. They are not guaranteed They are simple additions to your account and don’t

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NCDs
Bonds & Deposits
Aarati Krishnan

Six must-know facts about NCDs

Public offers of NCDs (Non-Convertible Debentures) from Non-Banking Finance Companies and Housing Finance Companies have been quite a hit with retail investors lately, with the

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