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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Once bitten twice shy! This holds true for thousands of people, who start investing before acquiring proper knowledge. What should be your first Mutual Fund investment? The answer differs depending on the investor's age, risk capacity, etc. Let’s discuss some MF fund categories which are good options for first time investors.

Balanced Funds

These funds invest in equity as well as debt. These are hybrid funds. Diversification of equity and debt portions is done in order to avoid any concentration of risk. Debt provides safety from precariousness in equity markets and is very essential for people investing for the first time.

Experts say that these kinds of funds are perfect for first timers because of their pre-determined equity-debt mix.

Large Cap Funds

These funds have a very diverse portfolio, as the schemes invest most of their assets in large companies, keeping the first timers safe. Stability is a major factor here because large companies are less volatile, and that is good for novice investors. Tax-free long-term capital gains are another plus point for large cap funds.

Index Funds

The portfolio of these funds is an index and these hold stocks in exactly the same proportion as their weight in the index. No fund manager risk is entailed in these funds, as there is no call taken by them to increase or decrease holdings.

Tax Saving Funds

This is preferred by most retail investors, as this investment is eligible for tax deduction under Section 80 - C of the Income Tax Act. Because of having a three year lock-in, tax saving funds are considered advantageous. However, some financial planners consider them not so good for beginners.

Apart from this, there are other factors that need to be taken into consideration before investing for the very first time. Do consult your financial advisor before you make the decision.

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Choosing the right product, is the toughest part in any investment decision, be it Mutual Funds, stocks or commodities. The biggest mistake that investors usually make is by choosing a product simply on the basis of its past performance. There are also other considerations to ponder, such as charges, downside risk, consistency etc. Let us look at some important factors that you must consider while choosing a mutual fund.

Quality of Fund Houses

Faith is an important factor in Mutual Fund investment. In order to choose the best scheme according to your needs and requirements, you must first identify reliable fund houses. The fund houses need to have a strong history in the financial market and a decent track record and consistency. A strong base is the key to a stronger empire. Thus, consistency is the key, and a good Mutual Fund scheme is one that manages to outperform its benchmark over 3-5 years. Choose a trustworthy fund house.

May The Odds Be In Your Favour

Risks are a part of every venture in life. In the investment sector too, nothing can be achieved without taking risks. However, for every prudent man, the proportion of risk vis a vis the returns should be a big decisive factor. What would make a worthy Mutual Fund? Same level of risk, yet more returns than the others. There is no greatness in risking everything for very little return, and this should be kept in mind while choosing your fund.

PortfolioDiversification

The basic characteristic of a Mutual Fund is to facilitate diversification across assets, stocks etc. Such a portfolio tends to be at a lower risk than other portfolios concentrated in a particular area. Portfolios of various schemes of fund houses are available for a quick-glance at the websites of the fund houses, and these schemes should be carefully observed and analyzed, perhaps with the help of a financial advisor. A well-diversified portfolio history is what makes the fund worth investing in.

These are some of the factors that every investor must keep in mind while investing. Choose the best Mutual Fund for yourself, and never regret, despite the risk taken.

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

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