#WhatTheFinance – What Is The National Pension Scheme And How Does It Work?

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One of the great things about having a feedback page is that you get some great post ideas! I received a message from a reader asking me to break down the National Pension Scheme or the NPS. So without any further ado –

What is the National Pension Scheme?

The National Pension Scheme is a savings scheme wherein you can pay a certain amount of money into a pension account every month during the course of your working life. This money, in turn, will be invested on your behalf. When you reach retirement age (sixty years), the money becomes available to you, under certain conditions. Read More

Why I Absolutely Loathe ULIPs and Insurance Investment Schemes

I recently wrote about why ULIPs aren’t a great investment for my Rupee Rani column and I thought I’d write a quick post here talking about my own ULIP experience.

ULIPs or Unit Linked Insurance Plans combine insurance with investment. Basically, insurance companies collect money from you to invest on your behalf while they also give you life insurance cover. So, it’s like a Mutual Fund in a way, with an amount of money that is promised to your family in case you die (how cheerful!). I was made to invest in one back in 2012 because of my incredibly pushy bank branch manager and my inability to say no back then. I’ve only regretted it since. For starters, the money doesn’t come back to you until the policy period matures and retrieving it before it does is an incredible pain in the ass. So I’m stuck paying premiums until 2019 and will only receive the returns in 2022.

The second reason is something that I realized more recently. It is the amount of money that you will have to pay in “Charges” for your ULIP – basically, they’re the Insurance company’s expenses that are not invested on your behalf. They are exorbitant and more importantly, insurance companies are incredibly sneaky in the way that they portray them to be minor. Read More

#WhatTheFinance – A Basic Guide To BitCoin and CryptoCurrencies

There has been a lot of talk about bitcoin the past few months so I thought I’d write a basic guide to bitcoin and other cryptocurrencies. I did write a guide for TheNewsMinute last week, but I felt like I could go even more basic for the blog. A bit of a disclaimer though – I am not a tech person, so if there is something that I’ve misunderstood or if there’s something that you think I could have explained better, please point it out to me! So without further ado – Read More

Here’s Why You Should Know How To Calculate Return On Investment

Note: This post was edited on January 12th 2018 because the graphic showing return on investment for 8 months was wrong, as pointed out by commenter NMK. I try very hard to avoid mistakes, but shit happens! Always grateful to readers who point it out. I’ll also ensure that it doesn’t happen again. Check, double check, triple check! Thank you.  Read More

#WhatTheFinance – What Are Mutual Funds?

In my previous post, I had written that I would write about calculating returns on Mutual Funds. However, I got comments asking for a basic guide to Mutual Funds, so I guess it would make more sense to talk about what Mutual Funds are, in greater detail, before I talked about calculating returns. I wrote a guide to Mutual Funds as part of my Rupee Rani  column, and I wanted to consolidate them, initially, but changed my mind. An overdose of information is likely to cause more confusion than provide clarity. Instead, I have broken down my guide to short posts, which I hope will be more clear. Read More

I Invested In An SIP Mutual Fund For 22 Months And Here’s What Happened

Why SIP Mutual Funds?

About two years ago, I began investing a portion of my salary into an SIP Mutual Fund. I chose to invest in an SIP Mutual Fund for two reasons – the first reason was that I was investing for the long term, and so, I could take on a greater amount of risk. The second reason was that SIPs allowed me to make small investments every month, as opposed to a large one time investment (which I didn’t have the money for). I’ve been paying out instalments for 22 months now, and I thought I’d share how it’s working out for me so far. Read More