How to add your new born baby to your health insurance policy?

Newborn baby comes with a bundle of joys. However, after his/her, your life changes a lot like adjusting your schedules, balancing your work life and most importantly managing your finances. One important thing which parents forget after the newborn arrives is to add him/her in the health insurance policy.

In this article, we are going to share what is the process of adding your newborn baby to your existing health insurance policy. Note that it does not matter if the child is biological or adopted, the process is exactly the same for all.

As medical emergencies are uncertain and unforeseen expenses may affect your finances badly. And also, getting health insurance for a newborn or a child below 5 years may not be possible, all health insurance policies have a certain entry age limit.

How to add a newborn baby in your health insurance?

There are two ways of adding a newborn to health insurance. First at the time of renewal and other is, adding during the year.

1. At the time of Renewal

There are two modes of doing it at the time of renewal, online and offline.

  • Offline mode – In offline mode, you need to inform your agent or insurance company, fill a prescribed form and attach a birth certificate of newborn baby, discharge card and other required documents along with cheque/DD of the increased premium amount.
  • Online mode – In online mode, you just need to visit the website of the insurer and go to the renewal page and you will see an option to add a newborn somewhere on the page. On selecting add newborn, the premium for your health insurance policy will be increased and you need to pay the revised quote. However, some companies may ask to attach a soft copy of the birth certificate of a newborn baby.

2. Before Renewal Date

Adding a child during the year can be done only through offline mode. You need to inform your agent or insurance company, fill a prescribed form and attach the birth certificate of newborn baby, along with NEFT/cheque/DD of the increased premium amount.

Important points

  • Waiting Period – Newborn baby is not covered until 90 days, due to the high amount of risk involved in medical emergencies.
  • Revised Premium – When you add a new member to your policy, the insurance company will recalculate the premium amount. So, you need to pay an increased premium amount.
  • Cashless card – You need to submit a photo of new born at the time of adding, to avail cashless card facility.

In the case of a newborn health insurance cover, it is very important to know, what is covered, what all are exclusions and whether vaccination is covered or not. So, Make sure you read your policy document.

Sovereign Gold Bonds – 9 things you should know

Most of the investors feel that gold is a good option to invest. One, because it gives quite reasonable returns and second but most important, we have an attachment with gold as per our traditions.

However, if you want to buy gold physically, you need to bear storage cost i.e. locker rents and along with this, it is not easy to buy and sell physical gold. And hence, Gold ETFs came into existence, which enables investors to trade gold on stock exchange and earn returns like they would be doing in case of physical gold.

But, now there is another option which is just like you are investing in physical gold available in Demat form, which can be traded on stock exchange, and also get a small amount of interest on the investment.

We are talking about Sovereign Gold Bonds. These bonds are issued by RBI in consultation with Govt. of India.

What is Sovereign Gold Bond?

Sovereign gold bonds were introduced by the Government of India in 2015 under the Gold Monetization Scheme, to enable investors to invest in an asset class which is a substitute for physical gold.

RBI announces public issues under these schemes in tranches i.e. specifying series along with dates of subscription of series of bonds and date of allocation.

You can refer below table for the SGB scheme 2019-2020 issue –

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S. no. Tranches Date of subscription Date of Issuance
1 2019-20 Series V October 07-11, 2019 October 15, 2019
2 2019-20 Series VI October 21-25, 2019 October 30, 2019
3 2019-20 Series VII December 02-06, 2019 December 10, 2019
4 2019-20 Series VIII January 13-17, 2020 January 21, 2020
5 2019-20 Series IX February 03-07, 2020 February 11, 2020
6 2019-20 Series X March 02-06, 2020 March 11, 2020


As these bonds are issued by the Reserve Bank of India on behalf of the Government of India, they carry sovereign guarantee. These bonds are issued at the discretion of government from time to time with a specified close date, and they are open for the public to subscribe.

The bonds are denominated in units of one gram of gold or multiples thereof. Minimum investment in these bonds is one gram.

9 features of Sovereign Gold Bond?

Let us understand the Sovereign gold bond in detail by referring to all its features.

1. Who are eligible to buy sovereign gold bonds?

Any resident individual including HUFs, trusts, universities and charitable trusts can buy sovereign gold bonds. This bond can also be purchased by a guardian or parent on behalf of a minor. But, a non-resident or ordinarily non-resident of India cannot buy a sovereign gold bond.

However, if a resident individual who bought SGBs, who has now become NRI can hold them till the maturity of the bond but cannot repatriate the maturity amount. He/she cannot even trade SGB’s on stock exchange.

2. Denomination of gold bond

Each investment will be denominated in multiples of gram or grams with a basic unit of 1 gram at least to be purchased in a single purchase i.e. minimum investment. It means if you want to invest Rs. 10,000 and the rate of gold on purchase date is Rs. 4000 per gram. So your investment will be denominated in 2.5 grams.

3. Maximum Amount

There is a limitation on the amount of gold that you can be held in sovereign bond. How much gold one can have in a financial year i.e. April to March (whatever can be the price of gold) is given for each category of eligible investors –

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Category Maximum Subscription
Individuals 4 kg
HUFs 4 kg
Trusts and similar entities 20 kg


This ceiling will include bonds purchased under different tranches during initial issuance by government i.e. subscribed in the primary market as well as via the secondary market.

4.Issue Price

The price of the bond will be fixed in Indian rupees on the basis of the average closing rate of the last 3 working days of the week preceding the subscription period of gold having 999 purity (24 caret) published by India Bullion and Jewelers Association.

The issue price of the gold bonds will be less by Rs. 50 per gram for those who subscribe for it online and pay through digital mode.

5. Interest rate

The investors will be paid Interest on the amount of initial investment at the rate notified by RBI for a particular tranche at the time of its launch and is payable semi-annually. Till date interest is near to 2.5% p.a.

6. Redemption

Redemption price shall be fixed in Indian Rupees and the redemption price shall be based on a simple average of the closing price of gold of 999 purity of the previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.

7. Listed on the stock exchange

These bonds can be held in Demat form and the government has enabled trading of gold bonds on the stock exchanges i.e. NSE and BSE. This feature is given to enable easy trading of bonds and one can buy bonds even after the subscription period is closed.

8. Maturity

The tenure of the bond will be for a period of 8 years with exit option in 5th, 6th and 7th year, to be exercised on interest payment dates. It means one cannot redeem bonds before the end of 5th year. However, if one wants, he can transfer bonds via the stock exchange platform. So, we can say that there is no lock-in for SGBs.

9. SGBs can be used as collateral

Bonds can be used as collateral for loans. The loan-to-value ratio (LTV) is to be set equal to ordinary gold loan mandated by RBI. Therefore, it is a very good option that you can use gold bonds as security against loans like stocks.

9. Payment Options

The payment of SGBs can be made in cash (up to Rs. 20,000) or Demand Draft or Cheque or electronic mode. It’s good that you have an option to use cash for it. However, on redemption or transfer, the amount will be credited to your bank account.

How to buy Sovereign Gold Bonds?

Whenever the government of India announces a series of bonds, they specify the dates of subscription, date of issuance of bonds and the amount of purchase per gram. A subscriber can go via physical mode or online mode for subscription of SGBs.

1. Physical Mode – To invest in gold bonds, you can fill in the application form which is provided by issuing banks or from designated post offices. You can also download the application form from the website of the Reserve Bank of India.

Scheduled Commercial Banks (excluding RRBs, Small Finance Banks and Payment Banks), designated Post Offices (as may be notified), Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Ltd. are authorized to receive applications for the Bonds either directly or through agents.

2. Online Mode – To invest in bonds using online mode, one can use their intermediaries/broker’s platform or bank platform. There will be a discount of Rs. 50 per gram if you purchase via online mode and paying through digital mode.

Every applicant must provide their PAN number issued by the Income Tax Department. Without a PAN, one cannot apply for investing in gold bonds.

Tax treatment of Sovereign gold bonds

The capital gains tax arising on redemption of SGB to an individual has been exempted. This is an exclusive income tax benefit offered on gold bonds to encourage investors to shift to non-physical gold.

However, the transfer of gold bonds before maturity will attract Capital gain tax. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond using secondary market after 3 years from the date of purchase.

The interest received on SGB per financial year is taxable as per the slab rate of subscriber.

Comparison of Physical gold, Gold ETF and Sovereign Gold Bond

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Points Physical Gold Gold ETF Sovereign Gold Bond
Returns Lower than actual return on gold (due to making charges) Lower than actual return on gold (due to brokerage) Higher than actual return on gold (due to interest payments)
Safety Risk of handling physical gold High High
Purity of Gold Purity of gold always remains a question High as it is in electronic form High as it is in electronic form
Capital Gain LTCG applicable after 3 years LTCG applicable after 3 years LTCG applicable after 3 years (No capital gain tax if held till maturity)
Loan collateral Yes No Yes
Tradability Conditional – depending upon availability of buyer Tradable on exchange Tradable on exchange and redeemable 5th year onwards
Storage cost High No No


Are sovereign gold bonds safe?

As we already mentioned, these bonds are issued by RBI in consultation with GOI, it ensures that there will not be any question about default risk i.e. no risk of repayment. However, the price or the redemption value of the bond will depend upon actual market price, so a drop in the market price of gold can put the capital at risk, which is a fact in case of holding physical gold or gold ETFs as well.

Why should you invest in Sovereign gold bonds?

See, buying SGB’s are suggested just as a substitute for buying physical gold. The flaws of buying physical gold are many like, they are not easily tradable and involve heavy storage cost, you don’t earn any interest on holding physical gold, you bear making charges and if you earn any gain on sale of gold you have to pay capital gain tax.

In SGBs you need not to face all these flaws instead they are very safe in terms of default risk, We cannot say that there is no risk, considering capital loss risk that may happen due to market price change.

If you are looking for long term investment in gold then instead of physical gold, SGBs are suggested. You don’t need to pay any tax i.e. capital gain tax on redemption of SGB on maturity or after 5th year. But, keep it in mind that there is STCG tax or LTCG tax on the transfer of SGBs on stock exchange before maturity and there is a limit on the quantity of gold that one can hold per financial year in the form of bond.

How NRI’s should plan their investments in India?

Are you one of the NRI’s who wants to know if you should invest your money in India and how to do it? Then this article is a good place to start with.

There are close to 3 crores NRI’s and PIO from India in different parts of the world, however, this post is mainly for those NRI investors who go out of India for 2-10 yrs and will mostly return back after few years of work.

Generally, there is a perception that NRI’s make a lot of money outside India as they are paid in Dollars and Dirhams! While this is true in general, one can’t deny that their expenses are also high and their life out of India is challenging as it’s a different city, culture, and environment overall.

NRI’s earn well, spend well and in most cases also “save” a decent amount of money every month. Even if one some is saving $2,000 in USA it’s close to 1.5 lacs a month after all. So the first challenge is to “save” money while you are NRI and the second one is to invest it properly and manage it well, especially if you are have limited time in your hands as an NRI.

What a person can save in India in 5 yrs, many NRIs can do that in just 1 yr – which means that if an NRI plans well – he/she can do financially very well in 8-10 yrs and come back to India semi-retired or fully retired.

In this article, we are just going to do some conversation regarding the various options available to NRI’s for investments and why they should choose India for their investment purpose. I will not cover too many technical rules or aspects related to investments in this article and will keep it quite too the point.

Which bank account to use – NRE or NRO?

A lot of NRI’s keep using their saving bank account for many years, without realizing that it’s illegal. The moment you become an NRI, one needs to convert their savings bank account to NRE or an NRO account. Or one can open a new NRE/NRO account if needed.

NRE account is a bank account where the money is full repatriable – which means that you will be able to take out all the money back from the NRE account and use it in a country where you are residing. It’s an account where you can deposit both your foreign and Indian income.

On the other hand, the NRO bank account is only partially repatriable and you can only deposit your Indian income in this account.

So depending on your situation and income type, you need to open these accounts. One can have any number of NRE/NRO accounts if required. There are too many aspects you need to consider between NRE / NRO account, which is explained in the table below

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Comparison NRE Account NRO Account
Income can be Deposited Foreign earnings and Indian Earnings Only Indian Earnings
Meaning Tax-Free Taxable
Repatriability Fully Repatriable Partial (interest fully and principle within set limits)
Joint Account Can be opened by 2 NRI’s Can be opened by an NRI along with another resident or NRI’s
Deposits and Withdrawals Can deposit in foreign currency, and withdraw in Indian currency Can deposit in foreign as well as Indian currency, and withdraw in Indian currency


Click here to learn more about NRI investment services by Jagoinvestor

4 reasons why NRI’s should invest in India?

Should you be investing your money in the country where you are residing or in India? Does it make sense to earn and stay in the US or the Middle East, but invest all that money in India? Many NRIs are confused about this, so I will just give you 4 small points which you should be aware about.

Reason #1 – India is one the fastest growing and a stable Economy

Note that India is one of the fastest major economy and quite a stable country compared to many others where NRI’s live. It’s important to make sure that your money is invested in the country which is stable enough. On top of that, you also help in growing the foreign exchange of your country.

Reason #2 – High-Interest Rates

Compared to many developed economies, the interest rates or “returns” you can get in India is quite good. Japan has negative interest rates and the US has not more than 2-3%. Many NRI investors make the mistake of keeping too much money in the bank accounts outside India and earn very little interest rates.

Reason #3 – Because you understand the investments in India

There is a high probability that you already understand various Indian investments options and financial products. Also, you will never fear what happens to your money because there is a sense of familiarity with India’s markets and financial ecosystem.

Reason #4 – Mostly you will be back to India

A vast majority of NRIs return back to India after working for a few years outside and finally use all their investments back in India. That’s one strong reason why you should invest a major part of your money in India itself.

I don’t mean to say that no investment products outside India are better than Indian financial products. There will surely be options which can be looked at, please do that in case you feel you want to.

What options do NRI have for investments in India

Quickly, let’s see what various options are where NRI’s can put their money for short – long term. This is not a guide which will give you very detailed information, but a quick commentary of what the option is all about.

#1 – Bank NRE Deposits

Bank NRE deposits are one of the wonderful choices an NRI can make. The interest you earn on NRE deposits is tax-free and it’s a simple product that gives you decent risk-free returns. You can choose the NRE deposits for some part of your investments if you don’t want to complicate things and are investing for less than 5 yrs.

Many NRIs take a loan from the local banks at low-interest rates and invest in NRE deposits and earn the margin. See if this is a profitable thing to do in your case of not.

#2 – Real Estate

One the hot favorite for NRIs is real estate in India. Real estate investments require big-ticket investments and many NRI’s have that. Even if you are buying a flat or land on installments, it works well for NRI’s are they have a big disposable income per month. One of my close friends also invested in the Hiranandani project in Bangalore by making a down payment because they knew that the installments to be paid will be easy on the pocket with NRI income.

The only negative side is that many NRIs choose real estate just based on the limited information sitting outside India or in a hurried manner. So make sure you take your time in researching the property and take decisions slowly. As it’s a high ticket transaction, its highly recommended to hire a real estate lawyer, pay them fees and get all the work done like title search, property inquiry. If needed go with a real estate broker who can manage everything for you!.

One more thing NRI should know is that they are allowed to only buy residential or commercial real estate, but not agricultural properties.

#3 – Insurance Policies

There are many Insurance policies (which are actually investment polices) that are marketed well for NRIs. These, in my opinion, are to be carefully chosen as many traditional products can turn out to be dud investments and a very bad choice of long term investments. Some ULIP’s in the market have got reintroduced with lower charges and much better structure – so please choose them after a lot of studies and only for the long term.

I would strictly advise against traditional investment option which does not have exposure to equity in them because they are not better than normal NRE deposits.

NRI’s can and should buy the pure insurance policy (term insurance) if they require it.

#4 – Direct Equity

Direct equity is a good choice for NRI investors, provided they know the equity game and are able to pick the right stocks with proper research (either on their own or on someone’s advice). Make sure you do not over diversify your stock portfolio, because with too much money you may go on a shopping spree, which will make your portfolio very complex and with bad stocks.

If you want to do equity and want to take high risk, you can also look at PMS. If you want help in PMS, our team can help you out with that. Note that in order to invest in equity, an NRI needs a PIS permission (portfolio investment scheme). These are generally done by your broker or trading account provider and you don’t have to worry about it.

#5 – Mutual Funds

Mutual funds are quite hot these days among NRI’s and it surely is one of the best choices for investments, provided you have proper guidance about it.

In Mutual funds, you have two choices – Equity mutual funds and Debt Mutual funds.

Equity mutual funds are long term financial products that can deliver extremely good returns if managed well. Those who are ok with volatility in their portfolio and want very tax optimized inflation-beating returns for their long term goals, for those NRI’s mutual funds are a very good choice.

Even Debt mutual funds are a very good choice for those NRI’s who do not want to get into equity risk and want alternatives to bank deposits and bonds. Debt mutual funds are quite a good option even taxation wise if you are ready to invest for more than 3 yrs.

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Taxation Equity Mutual funds Debt Mutual funds
Short Term Capital Gain (STCG) (Before 1 yr) Taxable @ 15% Taxable as per Income tax slab rate
Long Term Capital Gain (LTCG) (After 1 yr) Taxable @ 10% where LTCG>1 lakh (No indexation benefit) Taxable @ 10% without indexation or 20% with indexation


NRI’s from USA and Canada can also invest in mutual funds, but only with some limited mutual fund houses due to FATCA compliance. Here is a detailed guide on NRI’s investments in mutual funds

We at Jagoinvestor manage more than 140 NRI families’ investments in mutual funds. If you want to explore what we have to offer, please do let us know by clicking here and schedule a phone call with us.

#6 – Bonds and NCD

NRI’s can also invest in various bonds and NCD’s which are issued from time to time. These instruments have fixed interest which you can get every year credited in a bank account and you get your principle on maturity. The liquidity has to be compromised in these instruments as getting out of these before maturity becomes very tough even if these are tradable in the secondary market.

#7 – PPF

PPF is a choice for those NRI investors who already had it opened while they were in India because an NRI can’t open a fresh PPF account. Also, PPF is going to be a limited time product as one can’t be extended beyond 15 yrs.

#8 – NPS

NPS is another choice for your long term investments if one wants equity exposure in their portfolio, and pension benefits embedded into the product itself. Only NRI’s who are Indian citizens can invest in NPS. PIO and OCI are not eligible for opening the NPS account. In NPS, you get choices between equity investments, govt securities, and other fixed-income instruments.

Note that in NPS your savings get locked in till your retirement and only after that you get a part in a lump sum and rest is used for a pension. So choose NPS if you are very clear that your retirement is going to be in India.

KYC compliance and taxation For NRI’s

Note that once you become an NRI, there are lots of compliance which has to be followed by you. There are limits on where you can invest and where you can’t? Even the taxation for NRI’s is different and rules regarding TDS are different. We are not going into detail in this article regarding this as its out of scope.

How to avoid double taxation for NRI investments?

A lot of countries have DTAA agreements (double taxation avoidance agreement with India. In the case of NRIs – one can avoid paying double taxes in country of residence and India due to these agreements. You can get an equivalent deduction if DTAA exists between both countries.

Let me give you an example – In USA, a person has to pay the income tax on global income, so if an NRI has Rs 1 crore of FD in India they will pay the tax in India as well as in USA, but because of DTAA they will be avoiding it. There is paper work involved here, but you can surely save the double taxes.

When should an NRI invest outside India?

While India is a great place to invest for NRI’s overall, there may be certain life situations and some cases where investing in the country where you are working may be a good idea. There may be certain countries that might also be offering similar or better interest rates and returns compared to India. However, makes sure you consider the safety and return of your capital while you are investing along with tax to be paid.

Do let us know if you have any more questions related to NRI’s investments in India? Share your questions in the comments section.

Buying a new House? Here are 10 additional expenses you should be ready for!

Are you planning to buy a house? If yes then, you would have planned your investments and saving in line with the “Cost of the house”, you are looking for. But, when we buy a house, there are so many other events/costs which comes during or after buying the house which we do not plan well beforehand.

In this article, we will look at various things where we might have to spend money for. If you are planning to buy a brand new house, this article will give you a good direction on how to plan out your finances.

List of expenses associated with the purchase of a new home

 1) Stamp Duty

Stamp duty is a tax, levied by the state government on every transaction of property i.e. buy and sell, whether it be commercial or residential property. As it is levied by state govt. the rate varies from state to state. It ranges from 3% to 10%, depending on the slab decided by the particular state (in Maharashtra it is 5% of market value or agreed value of property whichever is higher).

Stamp duty is calculated on the higher value of any of the following:

  • The ready reckoner rate also known as circle rate/market value which is predefined every year by state government for every town, state or village, or
  • The agreement value of property. For example, if the agreement value of a property is Rs 50 lakhs and the value according to the ready reckoner rate is Rs 40 lakhs, then, the stamp duty would be calculated on the higher value, i.e., Rs 50 lakhs.

2) Registration cost

For registering a property on your name, the state government will charge you a registration fee. It varies from state to state. But most of the cases it is 1% of Market value of the property. Registration fee is lowered if the buyer is a senior citizen or a woman. In most cases, the builder will add this cost when they quote the house value to you.

3) Interior Cost

When you get the new house, its the bare minimum house with walls, electric points. It’s your job now to furnish it and decorate it as per your taste.  So, it is suggested to consider the cost that you may need to spend on interiors. And if you want to do marble flooring, designer wallpapers, texture paintings on wall, chandelier, modular kitchen, etc… the interior cost will tend to go up.

4) Advance maintenance fee 

When we move to a new house, and if it is in a newly constructed project, usually we are asked to pay a maintenance fee for a year or two by the builder. It can be a decent amount if you consider advance payment, so please consider that.

5) House warming party

When you move to a new house, you may feel like celebrating it with your friends or family. Some people may like to have a grant celebration or some may like to have a small party with close friends & relatives. So, the cost of house warming party varies from the taste of person to person, find out how do you want to celebrate it? And accordingly, plan for that cost separately.

6) Furniture

Many people want to set up furniture before moving to the new house and some people do it after 2 to 3 years of moving in, which is also okay. So, if you want to move in, to furnished new house then, you will require to buy or appoint a carpenter to make your home furniture best suitable as per your needs and requirements. You need to be prepared for the cost of furniture such as sofa, bed, almirah, dressing table, dining table with chairs, shoe rack, study table, electrical appliances, etc… depending on your needs.

7) Additional charges in flat

Now, these costs are subjective, it depends on the needs of a family. These additional costs include a video security system and iron grill at the main entrance for security purposes, pigeon net if your new house is having open balconies and mosquito net for windows, etc.

8) Sinking Fund

Sinking fund is a cost, which you may need to pay, to the society you will be living in, every year for a certain period of time such as  5 to 10 years. These charges are paid by all the house owners in the society, so that society’s huge maintenance cost, which can be for Lift maintenance charges, Building painting, clubhouse renovation, parking space, and building renovation charges, etc.

For example, if the lift of your building is not working and it requires 10 Lakhs to get repaired then it will be made from the sinking fund collected by society.

9) Small house alteration

Now, this cost again is subjective, it may change from person to person. Many people want to make some changes in the existing layout of the new house before moving. So, they will be needing extra money for this. Examples of small alterations are changes according to Vastu Shastra & creating storage space (storage room or shelf) etc.

10) Packers and Movers Charges

Moving your home stuff from one place to another can also cost a bit, especially if its an inter-city move. Do consider this cost as well when you are buying a new house.


For many of us buying a house is like achieving a huge milestone in our lives. When we plan our savings and investments according to, not only for the cost of the property but, also for other additional expenses to be incurred, then we will have more clarity & avoid the burden of so many expenses before buying our dream home.

And I would say around 10 – 20% of your house cost, should be kept aside to meet all these expenses. eg. if you are planning to buy a house of Rs. 50 Lac then additional 5 – 10 Lac has to be taken into consideration.

If anyone in your circle of friends and family is planning to buy a house, let them know about these additional costs. And also, if I have missed some points so please add in the comment section.

How much money would it take for you to feel “Rich”?

“How much money would it take for you to feel “Rich”?”

I recently came across this interesting question on my Facebook timeline and the answers given by people were very interesting. I thought of sharing it with you all and discuss this insightful and interesting point with you all.

feeling wealthy and rich

I want to become RICH and I am sure even you want to become one. We all have different definition of “being rich”.

Below are some of the unique and interesting answers which were given on the question – ““How much money would it take for you to feel “Rich”?

Read these answers carefully and it will tell you a lot on what is a person’s belief system about money and wealth. Here they are !

  • My dad gave me 200 rupees when I was going to work for the first time back in 2005, I’m rich till I have 200 bucks in my pocket
  • Once I have no loan
  • All the money my boss has
  • When I own my private jet..
  • Money can’t buy Richness… It has to be in your nature..
  • Fifty thousand a month
  • As long as it pays the Bill and afford my material needs and few luxury to some extent
  • 10 crore per month
  • Answer depends upon ones needs or greed
  • Fill 10 x10 x10 room with 1000 doller note
  • 1 crore per month
  • only my husband, He with me I feel rich
  • One roti with dal fry
  • Only mother and father nothing else no money required
  • 1 Rs. more than Bill gates
  • At least 1 lakh to spend per month. No taxes either.
  • Modiji hain na… we all will be rich very soon!
  • Just a safe place giving shelter to me in any condition with a bowl of rice to eat with chickens from the farm and a cigarette to smoke before switching off to bed
  • So much money that I could feed all the people on earth who have no food n clothes n no shelter… I want that much money..

Had Fun?

I am sure you must have enjoyed reading various answers mentioned above. While they all look fun and crazy answers, deep down they are telling how these people see money and what is their relationship with money.

The answers tells us something about them as a person and how they see MONEY in their life. Based on the answers, I can see 3 ways people think about “Feeling Rich”

Category #1 – Attached to an absolute numbers

People who have given answers like “10 crore per month” and “Once I have no loan” are thinking purely from a absolute number in mind. They are currently having some particular income or net worth, and they feel that once they reach a new height called Y, it would be a great situation to be in. They will then feel “RICH”

This kind of belief system builds when one is looking at money as a tool to acquire things in life. You know you need some particular amount of money to buy a house, go on a vacation, buy a car and meet your day to day expenses, and you look at a number which is surely enough to buy those things. I feel this is a very natural definition of “RICH” and most of the people start this way!

Category #2 – Comparing with Others

There are investors who feel rich not at absolute level, but in comparison with others in society. So answers like 1 Rs. more than Bill gates” and “All the money my boss has” tells that the person mainly wants to have more than someone else. Its not about his requirement or desires, but how he/she feels in contrasts with others.

I think this is quite dangerous, because there will always be someone wealthier and happier than you and even if you have enough resources in life, you may feel miserable looking at others. Surely not something I would recommend.

Category #3 – Not giving money any importance

There are some answers like “Money can’t buy Richness… It has to be in your nature..” and “only my husband, He with me I feel rich” and even “Only mother and father nothing else no money required”

I personally have mixed reaction to these kind of answers. At one level, It feel great and really good that a person places more importance to relationships, values and memories. Money is a human created thing and there is really no limit to greed. Its good that a person givens answers which shows their detachment with money and shows that their happiness is not entirely dependent on money.

However, now at a different level, these answers also look to me a little unthoughtful. Money is surely a reality in life. I am not saying that you acquire obscene amount of money, but people around you (if not you) want to live a convenient and decent lifestyle. Just saying that “No money is required to feel rich” is not everyone’s cup of tea.

You might be a person who don’t need money to he happy and feel rich, but what about your spouse, your kids and your parents? Do they also feel that way?

A common man who has to pay rent, pay school fees of children, put ration in home and do all sort of real life expenses. One can’t deny the fact that money is required in life for most of the things.

So keep a balance between both the things. Every thing has a role in life. Money is not important, but important in life and its quite easy to make these statements when you have enough food at home and your future is sort of taken care.

Can there be a 4th Category?

I am not sure if there can be other categories or not. I was not able to think beyond 3 categories myself. Can you think of more?

Btw – Can you answer me (and to yourself) the same question – “How much money would it take for you to feel Rich?”

Can you share your answer in the comments section?

Is it possible to take loan against Fixed Deposit?

FD is one of the most popular investment option in India due to its numerous advantages like safety, fixed interest earning and easy to understand product. And now you can easily get a loan against your FD even if you don’t have a credit score or meet any income earning eligibility criteria to apply for a loan.

So, One of the main advantage of holding a Fixed Deposit (FD) is that you can secure a loan amount below your FD amount, without actually breaking it!

Can I get loan against my fixed deposits?

Eligibility criteria, documents required and how to apply?

In order to apply for Loan against FD, you will have to approach your bank manager, fill the desired form and submit the important documents. Many banks such as PNB, HDFC etc… are offering online facility for loan against FD.

Eligibility criteria for taking the loan against FD

  • You need to have a year old active fixed deposit with the bank.
  • Applicant should be at least 21 years old
  • Applicant has to be resident citizen of India
  • Individual, sole proprietorship, societies, HUFs etc are eligible.

Documents required for taking the loan against FD

  1. Application form
  2. Fixed Deposit receipts
  3. A cancelled cheque might be required if the loan is being taken from financial institutions other than banks
  4. Duly signed agreement letter
  5. Passport size photographs
  6. Valid photo identity proof

Let us see a video to understand it more clearly –

Interests charged on the loan amount

The interest rates charged for FD loans as compared to traditional loan interest rates are very less. It is generally around 2% to 3% more than the FD interest rate.

Example – Ram is having a FD worth Rs 10,00000. He is earning an interest rate of 6.5% on his FD; if he applies for loan against FD then here he will be charged an interest rate of 8% to 8.5% on the loan. The interest charged here is much less than the average loan interest rate that usually ranges from 9% to 15% (varies from banks to banks).

Below is an indicative chart of different banks with interest rates on overdraft of FD

what are the interest rates of different banks on loan against FD?

Is pre-payment of loan against FD allowed? If yes, how much is the penalty charged?

Yes, pre-payment of loan is allowed with no penalty charges. If you are thinking of taking loan against your FD, and you know that after few days or few months you can make pre-payment of the existing loan then you will be at profit because pre-payment is also allowed that too with no penalty charges.

How long can be the loan tenure?

The loan tenure against fixed deposits depends on the tenure of the fixed deposit. The tenure of loan will not be more than the term of fixed deposit. In most of the cases tenure of loan is 3 years.

Example – Sham wants to avail a loan on his fixed deposit (whose maturity is in 5 years). He can avail the loan only after completion of one year of FD. If he takes loan then he will have to repay the loan within the next 4 years, before the maturity of the fixed deposits.

Loan against FD vs Breaking the FD

The natural question here one will ask is, why not break the FD itself and use the money? Why one should apply for the loan??? Let us see the difference between the both and then one can take the decision.

Difference Between Loan against FD and Breaking of FD

[su_table responsive=”yes” alternate=”no”]

Features Loan Against FD Breaking of FD
Ease of getting money Money will be received after procedure of loan sanction is over  Money is received immediately either in cash or Bank
Interest Rate Interest on loan amount has to be paid No need to pay interest
Sanctioned amount Limitation on amount received (Up to 90% of FD) You get the entire amount you invested so far


You can see in the table above, all points favour breaking of Fixed deposits, but one reason why you can think of taking the loan against FD is-

The human tendency, that you repay the loan in EMI form easily rather than again creating the FD. If you break the FD and use the money, there is no compulsion for you to again save money and create the FD and it might happen that you will not have wealth at later point.

However, if you take a loan against FD, then the FD exists and you will look at the loan repayment as your primary objective and forced to pay back the money.

One more reason of taking loan against FD is, IF you are asked for a financial help by some relative or friend and if you choose to get loan for them against the FD. Then, they will be more serious in repayment of EMI because then they will be knowing it well that you have facilitate them a loan which has to be repaid on time. So, it will become obligatory for them to repay.

And in the same condition if you break FD and give the money as loan, its a transaction between you and your friend/relative and there is a tendency of all human beings to not return the money on time and become very casual about it, if it is not legal obligation over some one.

That was all about the loan against FD .. Do feel free to ask any doubts in the comment section.

How to do KYC for Mutual Funds? Its quick and easy!

Are you a new investor in mutual funds ? If yes, then you might be having these questions in mind.

  • What is KYC ?
  • What do I need to do to register my KYC?
  • Whom should I approach?
  • Do I need to do my KYC every time before investing into mutual funds?

So, in this article you will get the answer of all such queries.



What is KYC ?

KYC i.e. Know Your Client is a process required by RBI norms which needs to be completed before starting any investments. It is used as an eligibility test of an investor to prevent illegal activities like money laundering. So, if you are planning to start investing in mutual funds, you need to register your KYC first.

Do I need to do my KYC every time before investing into mutual funds ?

No, as KYC is one time exercise (central process) needs to be done before investing. Once your KYC is registered you need not to undergo same process again while investing with different mutual fund houses.

How can I register my KYC ?

For KYC registration, KYC form has to be filled with all the details and needs to be submitted along with self attested copies of required documents (as discussed below).

Also note, that if you want to invest in mutual funds (Resident or NRI), Click here to know about Jagoinvestor mutual fund services. We also help you in getting your KYC done

From where can I get the KYC form ?

You get get the KYC form via 3 sources:

  1. For this you need to visit the website of CAMS KRA, Karvy or other registrars.
  2. Or you can also visit the website of the fund house where you want to start your investments.
  3. Or you can reach an Independent Financial Advisor.

What documents are required to be attached with KYC form ?

[su_table responsive=”yes” alternate=”no”]

For Resident Indian following documents are required :

  1. Copy of photo ID proof such as Aadhaar, Passport, Voter ID, or Driving license etc.
  2. Copy of address Proof eg. Electricity bill, Aadhaar etc.
  3. Copy of PAN card
  4. Two passport size photos
For Non-Resident Individuals(NRIs) following documents are required :

  1. Copy of Passport is compulsory
  2. Copy of Overseas Address Proof
  3. Copy of Indian PAN card
  4. Two passport size photos
  5. Copy of other national or Citizenship Identification Number or Taxpayer Identification Number


Important Points:

  1. POI card needed for POI
  2. In case your overseas address is not in English, you need to get it translated by a translator in your city and get their stamp
  3. In case you do not want to travel to India just for making investments, you can always give POA to someone trusted who can do the process for you.
  4. In person verification is mandatory for true identity verification. So, Fund houses or registrars does IPV via video calls.

Where can I check my KYC status?

Once your KYC form along with required documents is submitted to the registrars(CAMS, Karvy, Sundaram etc.) It will take 4 to 5 days in registration. Once it is registered you can start investing into mutual funds. You will get the  alert about the registration via mail or SMS. However, if you want you can check status of your KYC by entering your PAN in either of the links below:

You can also refer these links for downloading KYC application form.

Conclusion :

For KYC you need not to go anywhere, it can be done from your home. So, if you are planning to start investing in Mutual Funds, KYC is the first step to it. And if you are having any trouble in KYC or while investing, do let us know in the comment section.

How much money is enough for you?

Do you know how much money is there in this world?

It’s $36.8 trillion (or 2569 Lakh Crores)

What if you get all this money? Imagine you wake up one day and your bank balance shows 2569 Lakh Crores. However, you also find that you are the only person left on this earth while every other person is missing.

All the malls, all the shops, all the movie theaters, all the entertainment parks, all the jewelry shops, all the real estate, all the fruits and restaurants and everything you can imagine is intact. It’s all available there.

how much money is enough


So what can you do with all that money with you?

The answer is NOTHING.

You can’t do anything, because you can only exchange money with something and if you already have everything available on earth lying there and already available to you, the money just loses its role completely. That 2569 Lakh Crores with you is nothing but trash.

Coming back to our life, at the start we do not have much and money is something which can help us get access to lots of things in life. However, we move from having “Nothing” to “Something” to “Good enough” to “A lot” and then slowly “Almost everything we wanted”

In this transition over years, the importance of money comes down in our life. We already have most of the things we can wish for. You already have a house, a car, nice furniture, a second home, great vacations, eating out, etc. etc.

The Race of Earning Money

While money is very important in life, we are conditioned to think from our childhood that money is the solution to everything in life. We are subconsciously in this race of earning more and more money without setting a target. More is always better it seems.

Note that.

  • There is a limited amount of food you can eat in this world
  • There is a limited number of vacations you will take
  • There is a limited number of houses you can live in
  • There is a limited number of cars you can drive
  • There is a limited number of things you need to have a great life

How much money do you need?

5 crores, 10 crores, 50 crores?

I strongly suggest that you need to target a number or a range after careful thought and then let that number define your speed. There has to be a number which is ENOUGH for you.

You will be able to lead a very good, desired lifestyle in that much money.

Trust me you will eat the same thing and dress quite in the same manner if you have 10 crores or 50 crores. Rakesh Jhunjunwala or Mukesh Ambani eats the same thing as you do.

running after money

It should not happen that you keep acquiring wealth in life, and later it turns out to be nothing more than trash.

The Dalai Lama when asked, what surprised him most about humanity, he said:

Because he sacrifices his health in order to make money.
Then he sacrifices money to recuperate his health.
And then he is so anxious about the future that he does not enjoy the present;
the result being that he does not live in the present or the future;
he lives as if he is never going to die, and then dies having never really lived.”


So what is the role of money in your life?

You need to define how much money you are targeting to acquire in your life. How much money is enough for you? Are you in a mindless race, acquiring all the money you can imagine and later, think where did my 60 yrs go? Or you are going to define the range which you want to acquire?

Something like “10 crores” is good enough for me once I retire. This is important because whatever time you give to earn money can potentially go somewhere else.

  • If you are working later hours for money, and coming home at 11:00 pm at night, then it means that you can’t wake up early and go for an exercise.
  • If you are working in some other city away from your family to earn a better income, it means you can’t spend that much time with your loved ones
  • If you are away from home during festivals so that you can earn/work extra, that means you are not going to spend that particular time with your family.
  • If you are not attending a wedding for your close friend, because you don’t want to lose those 6 days of a pay cut, that means that you will have that money, but then you will not have that memory of your friend’s wedding
  • If you are not taking your family to a nice vacation, then you will have that money in the bank, but you won’t have something to talk about years later when your kids grow.

Just like these examples above, there are multiple instances in life, where we have to decide between using our money and exchanging it with something.

Your Target = 1000 times your monthly Expenses

A simple calculation tells us that when a person accumulates around 400-500 times of their monthly expenses, they have enough to last for another 30 yrs.

This means that if you have monthly expenses of Rs 1 lacs per month, then 4-5 crores is a reasonable corpus for you. Let’s take 1000 times? So for a person, 10 crores if enough to last his lifetime (a very high-level calculation tells us that). In the same way, you should know what amount you are targeting for yourself.

So make sure you are clear about the importance of money in your life. While we have seen that a lot of people are not working hard enough to achieve all their financial goals targets, we see that a lot of people are putting too much emphasis on earning money and spending all their limited time into the race of earning money. While earning money is not bad in itself, make sure you know how much you need in life?

Question for you

I would like to know from you – “How far are you from your target?”. Do you think money has a bigger role to play in our happiness or a smaller role? Please comment below

Note: Note that I am not saying money is not important. I understand and acknowledge that money brings peace of mind, a sense of security and makes us powerful in away. I am only trying to give a perspective about the role of money in life. I am not saying that earning more money is bad or good. So in case you have hate comment, please read the article once again fully and point of the para or line which you want to debate on.

How much tax benefit can be claimed u/s 80D? (Rules + Limits)

Are you clear about the tax-saving which you can do when you pay health insurance premiums every year? You will be glad to hear that it’s over and above sec 80C.

Yes, it comes under a separate section called section 80D!

What is section 80D?

Health Insurance policies have become very famous in the last 10 yrs and to encourage it, the govt gives tax benefit when you pay the premium for yourself, your family or your parents

Section 80D defines all the rules and limits related to health insurance premium payment and tax saving.

what is section 80D of Income Tax Act, 1961

How much can you claim under section 80D?

One can claim a deduction of premium amount on health insurance of self + family (spouse + dependent children below 18 yrs.) and parents. If one pays a health insurance premium of his brother or sister then he/she will not be able to claim a tax deduction. To make it more clear, I have mentioned the list of people who will come under this benefit –

  1. Self
  2. Spouse
  3. Dependent Children (below 18 yrs.)
  4. Parents

How much you can claim Tax benefit u/s 80D?

  1. You can claim a maximum Rs. 25000 of the deduction for premium paid on health insurance of you, your spouse and children (under the age of 18 yrs.), if you are below 60 years
  2. The same amount of Rs. 25000 you can claim for deduction of premium that you pay for your parents (father+mother).

And if the age of you or your parents is above 60 years then the limit will increase to Rs. 50,000/- in each case. In the above limits, exemption of Rs. 5000 for yearly health check is included.

For getting a clear understanding of the calculation part you can refer the info-graphic given below.

these are the tax benefits u/s 80D

image on 80D exemption limit

Let us now understand this through some examples –

Case 1 – Ram (35 yrs.) with a spouse and 1 kid + parents (mother 55 yrs. and father 57 yrs.)

In case 1, Ram pays a yearly premium of Rs 15000 (for self+spouse+1 kid) and Rs 34000 (both parents). So now let us see how much exemption Ram can claim u/s 8oD.

As self + family exemption limit is Rs 25000 and Parents exemption limit is Rs 25000. Then Ram can claim exemption of Rs 40,000 (15000 + 25000) u/s 80D.

Case 2 – Rakesh (48 yrs.) with a spouse and 2 kids + parents ( father 75 yrs.)

In case 2, Rakesh pays a yearly premium of Rs 32000 (for a self+spouse+2 kids), Rs 63000 (for father) and Rs 8000 (preventive medical check-up). So now let us see how much exemption Rakesh can claim u/s 80D.

As self + family exemption limit is Rs 25000 and parent (senior citizen) exemption limit is Rs 50,000. So, Rakesh can claim exemption of Rs 75,000 (25000 self + 50,000 parent). As Rakesh has already exhausted his self exemption limit so he won’t be able to claim his preventive medical check because preventive medical check is already included in the self exemption limit.

2 Benefits into 1

I think getting tax deductions on health insurance is a wonderful thing. Health Insurance in itself is a very important financial product most people should buy and you are also getting some tax benefits on it. So, do buy health insurance for yourself, your family and parents to protect your wealth and save tax.

Let us know your views in the comment section about this article.

Should you buy car insurance from dealer?

Myth: As car insurance is mandatory, I have to buy it via car dealer !!

Reality: It is mandatory to have valid car insurance but, not mandatory to buy the same from your car dealer.

image on buying car insurance via dealer

Buying car insurance is mandatory under the motor vehicle act, 1988. As it is mandatory car dealers bundle up insurance with other services and quote it all to you in one invoice. But, insurance can be separated and you can choose an insurance company on your own. Most of the people buy it via a dealer, either because they are unaware of separating insurance from car purchase cost or they just seek convenience as getting it via dealer is much easier and convenient.

But, now the time has changed. With the help of the internet, it has become very easy to compare different insurance plans online and buy the best suitable as per your requirements. So, no question of hassling in the lengthy paper process. It is not like you should never buy car insurance via a dealer, there are disadvantages as well as advantages.

Advantages of buying car insurance from a dealer :

No doubt the process of buying insurance from a car dealer certainly saves you a lot of time. And there are a few more advantages of buying it via dealer:

  • The entire process of insurance purchase is streamlined and more convenient when it is through a dealer.
  • You may receive bundling discounts on the purchase of the car and the insurance from the car dealer.
  • You can get in touch with the car dealer to get clarification on the coverage or at the time of claims. The dealer will efficiently assist you in such matters.

Disadvantages of buying car insurance from a dealer :

A very limited number of options: A dealer is there to sell the car and not insurance. So, he won’t be able to offer you too many options when it comes to insurance. If he has a tie-up with two or three insurance companies, so he will be able to offer policies only by those companies. And this will limit you from selecting the best option that you can avail by doing your own research.

Premiums can cost more: As buying car insurance via dealer will be offline so it’s very obvious that it will be costlier than what you can get from online mode. In spite of this, car dealers enter into tie-ups and arrangements with insurance companies for which they get the commission, which can go as high as 40%. This will have an impact on the policy price, and for you, this can translate into high premiums.

Add-ons offered may not fit your requirement: Car insurance add-ons must be chosen keeping in mind the specific requirements of the car and its owner. As car insurance premium is recurring cost, to attract more buyers, a dealer may provide you basic insurance plan which will be cheap but, even then if you compare the premium of the same plan online you will find it cheaper, eg. if insurance via dealer costs Rs. 25000, it will cost Rs. 15000 if bought online. (40% costlier).

The main intention of the car dealer is to earn extra by bundling up all for you in one basket. As insurance is the basic requirement for every car buyer, he may influence you to take insurance from him, which may be very basic insurance not having important add-ons required.

It must be noted that add-ons are extra covers that can be opted to enhance the protection offered by a basic car insurance plan. Knowledge about what add-ons are suitable is important. Few essential add-ons that can be included to the base plan are:

  1. #Zero or Nil Depreciation: This add-on offers complete coverage without factoring in the depreciation of parts like plastic, fiber, rubber, and glass.
  2. #Engine Protection Cover: This add-on cover provides protection against damage to the car’s engine due to water ingression leading to hydro-static lock.
  3. #Roadside Assistance Cover: This add-on provides emergency roadside assistance services such as help in changing the flat tyre, roadside repairs, emergency fuel refilling and towing facility.
  4. #Return to Invoice: This add-on ensures that in the event of complete loss or theft of a car, the policyholder gets the car’s original invoice value and not just the Insured declared value.

So, it’s suggested that you should go for an insurance policy which should provide extra coverage to your car, by allowing you to customize it as per your needs.

Final Word :

Who doesn’t want ease and convenience? When we buy a car, we feel like ending up all the proceeding in one place. However, if you are internet savvy, hassle in buying insurance is not a question for you.