PrimeInvestor - Articles and Reports

Be safe in retirement
General
Aarati Krishnan

Where to park your VRS proceeds

The over 92,000 staffers who have opted for the Voluntary Retirement Scheme (VRS) from BSNL and MTNL are now faced with the challenging task of finding a safe parking ground for their money while making sure it earns reasonable income in a low interest rate environment. They need to factor in liquidity and tax efficiency too. If youโ€™re a VRS optee, donโ€™t worry. Hereโ€™s a list of attractive investment options, ranked in the order of their safety.

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Interest rates - up or down?
Bonds & Deposits
Aarati Krishnan

Are we at rock-bottom on interest rates?

As the Monetary Policy Committee (MPC) decided to defy all expectations to hold its repo rates at 5.15 per cent yesterday, a sigh of relief must have gone around retirees and fixed deposit investors. But as the MPC has kept the door open for further cuts by signalling an โ€˜accommodative stanceโ€™, they must be wondering โ€“ โ€œIs this rock-bottom for interest rates? How much lower can they go?โ€

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Safetyย 
Bonds & Deposits
Aarati Krishnan

What we look for in FDs – The PrimeInvestor approach

โ€œIs my fixed deposit with so-and-so company safe?โ€ This query is cropping up often, after the recent default on fixed deposit repayments by Dewan Housing Finance Limited and RBIโ€™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. Hereโ€™s the approach we use to choose our recommended list of FDs.

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Active vs Passiveย 
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, thereโ€™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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Insurerย 
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 fateโ€™s sudden googlies. But what if the insurance company youโ€™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 youโ€™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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Bonusย 
Insurance
Aarati Krishnan

How LICโ€™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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