India is one of the largest and fastest growing economies in the world. Our standard of living is rising, and along with it our wants. Hence the need for wealth creation. It is also reflected in the rising consumerism in the country, and the increasing number of credit and debit cards. And with that number, chances of card fraud increase as well. Since wealth protection is the other side of the coin, here we look at what measures you can take in case of theft or loss of card.

The first thing to do is to report the missing card to the bank and get it blocked. According to the Reserve Bank of India (RBI), it is the banks’ responsibility to provide protection against and fight frauds. Once you get your card blocked, you won’t be liable for any transactions that happen after this. Credit cards typically have stronger fraud protections than debit cards.

Process

You should lodge a First Information Report with the police and get an acknowledgement. You will be required to submit a written application, with details such as the card number, bank account number, and the date of loss. The bank will issue a new card in place of the stolen/lost one.

Liability

Most banks have a zero liability policy, which means that you will not have to pay anything against the expenses occurred during the period between the loss and you reporting the theft. You should be clear on the bank’s policy regarding this before you issue a card. For example, some banks give a time period of 7 days to report the loss of card.

It is important to always monitor your transactions, and if you see any suspicious activity, report it to the bank immediately.

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Amidst the recent unpredictable conditions of the market, we gradually see the worth of equities fading away, and bonds coming up as the next big thing. Bonds offer relatively stable returns, which are much needed today. Investors should have an idea of some factors before they go on to invest in bonds.

Returns

The asset class offers an annual interest rate of 8-11% , and a return, which is as good as that offered by bank deposits. However, higher the rates mean higher the risks, and this needs to be looked into by investors before investing.

Ratings are Not Everything

Ratings are not the only answer to the number and kind of risks involved in bonds. There could be newer and worse risks at later stages. For example, in case of any restructuring or acquisition wanted by the issuer, the debt burden is likely to get bigger gradually. In other cases, ratings may not be updated with the company’s credit profile. Such are some flaws with ratings, and investors should look beyond these ratings.

Premature Exit

Pre mature exit might expose the investors to the unstable interest rates, and would not be beneficial. Moreover, the liquidity of these bonds is the another important pointer that ought to be taken into consideration while planning the exit .

Risk Return Balance

The most important mantra in investment is to find that one perfect asset, which has the most balanced risk-return proportion. For example, certain types of bonds known as ‘putable bonds’ give more rights to the investors, and thus their coupon rates are lower. Such factors need to be considered before investing.

Investing is no child’s play and it must be done with utmost care, caution, and advice. You do not want all your money going down the drain because of that little extra return coming at the cost of a huge row of risks. Invest wisely!

For more information, visit:- http://www.bajajcapital.com/

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The Reserve Bank of Indian (RBI) and the government are keen on retail investors accessing the government securities market. In its latest attempt, RBI has allowed demat account holders to invest in G-Secs (Government Security) through depository participant banks. Buying G-Secs can be as simple as buying equity stocks through a broker.

Direct Investing

Direct investing is appropriate for investors, who are looking for fixed payouts in the form of interest payments. G-Secs are safe as there is a guarantee by the government, with respect to interest and principal payments. Also, there are no intermediary costs as you buy directly from the government.

Gilt Funds

Gilt Funds are mutual funds where you invest only in government securities. Usually risk averse, and conservative investors, who want to invest in the shadow of secure government bonds prefer it. Here, the investors are protected from credit risks.

If you are not interested in investing directly in the G-Secs, you can buy Gilt Funds. It is same as buying any other mutual fund scheme.  You can directly approach a fund house or visit their website. Even after the recent initiatives from the government, investing through the funds route is still quite easier.

But why would a person, who already indirectly holds government papers through PPF or bank FDs, be interested in Gilts? There are two types of people who may benefit from the Gilt Funds. First, the high net worth individuals, who may want to benefit from the extra yield that listed bonds sometimes give. Secondly, working individuals, who would otherwise buy an annuity for their post retirement income.

In conclusion, you should have at least a 3 to 4 year investment horizon, and moderate risk appetite to invest in mutual funds. You should consult with your financial advisors to discuss whether these mutual funds suit your investment strategy or not.

For more information, visit: - http://www.bajajcapital.com/

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According to the Insurance Regulatory Authority of India (IRDAI), the claims settlement record of insurance companies improved in the Financial Year 2015. But what is Claims Settlement Ratio (CSR)? It is defined as the number of claims settled against the number of claims received. It is usually measured in terms of percentage. For the private sector as a whole, the claims settlement record rose to 89.40.

It’s no secret that the mis-selling of insurance products is a widespread problem in India.

While there is enough literature on factors to consider before buying a scheme – the sum insured, policy term, optional riders, etc., the Claims Settlement Ratio is not given due importance. In fact, the very purpose of insurance gets defeated if the claim is not paid.

Thereby, before buying insurance, you should consider those insurers, who holds a claim settlement of 85% or more. As customers, we are equally responsible to make the right choice.

Thesecond most important aspect is the duration of the settlement, i.e how fast you get the proceeds after making the claim. You should look at the percentage of claims settled within 30 days. A ratio of more than 80% is a good reference point to help you choose the insurer company.

Buying insurance is now simpler with the advent of online comparison platforms. But, the most critical step is to choose the product that fits your need. Price is an important parameter, but look at the price in conjunction with Claims Settlement Ratio.

Insurance from a company that avoids paying the claim is worse than having no insurance at all. So, before buying insurance, it is essential to have a clear idea about the claim settlement policies of the insurance company.

For more information, visit :- http://www.bajajcapital.com/

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The past few months have brought a lot of cheer to Mutual fund investors. After the guidelines by the Securities and Exchange Board of India (SEBI) to Fund Houses to disclose details relating to the remuneration of managers for transparency, its new circular says that Mutual Fund redemption up to Rs. 2 lakh by investors cannot be restricted anymore. In the case where the amount exceeds Rs. 2 lakhs, the first Rs. 2 lakh will be redeemed without any restriction. Since for most retail investors, investments are below or around Rs. 2 lakhs, this guideline will be hugely helpful. It was a major problem earlier, even for the top 10 Mutual Funds.

Asset management companies (AMCs) can impose restrictions on redemptions by investors only when there are issues that could lead to a systemic crisis rather than based on entity specific instances. 

• Under normal circumstances there can be no restrictions on investor’s redemption for open-ended schemes – whatever be the amount. 
• The circumstances when the restriction would apply would be when there is an overall market crisis, and not when there are issues relating to any specific fund house.
• Even in the case of systemic crisis the fund house can only impose restrictions on the amount above Rs. 2 lakhs. Another exception when the redemptions may be restricted is when there is a temporary sanction due to overall market closure. Even then it cannot be for more than 10 days.

This new move is thus small investor friendly. So expect more people to get rid of fixed deposit calculators, and go for debt mutual funds.

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In this world of chaos, frauds and hectic schedules, investing your money in the right place is a challenge. Choosing the right entity to handle your hard earned money is a life changing decision. SIP or Systematic Investment Plan is a great option to reap good benefits. SIP Investment plan is basically an investment system offered by mutual fund companies to investors. It allows the investors to invest small amounts periodically instead of depositing heavy amount of money at a time. The frequency of investment in such SIP Investment plan is weekly, monthly or quarterly.

SIP plans offer is a well disciplined investment scheme that helps to create your wealth in long term while reducing the risk of market volatility. This investment plan follows the scheme of depositing a fixed amount of money in bank accounts periodically and invested in a specified mutual fund. SIPs are also flexible, wherein the investors can stop investing in the particular plan at any given point of time, or increase or decrease their amount of money deposited.

It has emerged as a safe and good choice of investment for those who do not have much understanding of financial markets. Bajaj Capital Ltd in India is the flagship company of the Bajaj Capital Group and is a premier Investment Services Company with over 50 years of experience in the financial industry. They have one of the best SIP Calculator India. SIP calculator helps you to calculate the wealth gain and expected returns for your monthly SIP investment from which you can make a rough estimate on the maturity amount based on a projected annual return rate. When you invest with Bajaj Capital, be rest assured of good returns and safety.

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