The returns from liquid funds, currently, look better than what savings accounts of leading banks are offering, points out Sarbajeet K Sen.
While the purchases of celebrity investors become public knowledge, what is not known is the price point at which they bought them.
Investors need to evaluate how they stack up against other high credit quality fixed-income options before putting money in them.
Bundled products often come with restrictions. The customer also gets locked into two products at the same time. This reduces flexibility.
'The minimum holding period for equities should be three years.' 'Try goal-based investing.' 'Link your equity portfolios to specific goals such as retirement, purchase of a house or car...'
'FDs should hold your emergency funds, equivalent to around 6-12 times your monthly expenses.'
Young investors could allocate in the proportion of 70:20:10 to equity, debt and gold.
Personal accident cover should be purchased by everyone, irrespective of age, occupation or health condition, as one does not know when an accident could occur, causing hardship to the family.
Most traditional health insurance plans didn't cover the cost of such treatments earlier, but several recently launched policies do offer such coverage -- some as a rider, and a few as standalone covers, points out Sarbajeet K Sen.
To minimise hardship for legal heirs, home loan borrowers must purchase additional insurance cover while taking a home loan.
Avoid investing in a new ELSS scheme each year. Stick to one well-chosen scheme to avoid clutter in your portfolio.
'Funds based on this theme offer socially conscious investors an option to invest in a portfolio that is aligned to their beliefs.'
If you are buying a bond to cater to your regular income needs, check the interest distribution schedule.
Despite the current bout of volatility, debt-oriented hybrid funds remain well suited for risk-averse investors.
Buying or selling securities based on rumours about expected changes in tax rates or sectoral sops can backfire, advises Sarbajeet K Sen.
A home loan is a long-term contract, so do shop around before signing on the dotted line, advises Sarbajeet K Sen.
Stocks offering attractive dividends contain downside better when the markets correct, advises Sarbajeet K Sen.
One of the biggest advantages of index funds and ETFs is their low cost, points out Sarbajeet K Sen.
Investors need to get the timing of entry and exit right to make money in thematic and sector funds, suggests Sarbajeet K Sen.
While mid-cap and small-cap funds have given category average returns of 73.3 per cent and 89.8 per cent respectively over the past year, large-cap funds' returns have been lower at 53.9 per cent, points out Sarbajeet K Sen.
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