FAQ’s on Financial Planning
What is Financial Planning and What exactly you do in financial planning ?
We follow the six step process in creating your financial plan:
- Clarify your present situation.
- Identify your financial and personal goals and objectives.
- Identify financial problems or opportunities.
- Determine recommendations and alternative solutions.
- Implement the appropriate strategies to achieve your goals.
- Review and update your plan periodically.
FAQ’s on Insurance
What is Life Insurance
Buying insurance is extremely useful if you are the principal earning member in the family. In case of your unfortunate premature demise, your family can remain financially secure because of the life insurance policy that you have purchased.
How much does life insurance cost ?
You could pay these premiums monthly/ half-yearly/ annually/ or as a single premiums.
How much do I insure myself for?
Assuming that the prevailing interest rate is 8%, you need to insure your life for at least 12 times your current annual income. Assuming that a family needs Rs.100 annually for household expenditure and the rate of interest would be at 8%, then the breadwinner needs to have a life insurance policy of approximately Rs.1200. If the insurance amount were to be put in the bank by the family, the family would get a comfortable Rs.96 p.a., which would at least let the family maintain the current life style.
What are riders?
Similarly there are different riders addressing different contingencies like Critical Illness, Permanent Disability Benefit, etc. There are riders available that waive your future premiums in case of death or disability of the proposer.
Why do I need health insurance?
What is the maximum number of claims allowed over a year?
Does health insurance cover diagnostic charges like X- ray, MRI or ultrasound?
What do you mean by Network /Non-network Hospitalization?
Is there an Income Tax exemption under Health policy?
- Premium paid under the Health insurance Policy is exempted from Income Tax under section 80D of the Income Tax Act up to Rs.15,000 for individual covering his family and dependant Children.
- In case the proposer intends to cover his parents under medical insurance, he is eligible for a deduction of another Rs.25,000 under section 80D.
- In case the age of parent to be covered is above 65 years, the deduction available is Rs.30,000 under section 80D.
I am a known diabetic for the past 5 years. Can I take a mediclaim policy with you?
At the same time, you can cover yourself with a Diabetes Safe policy which covers the complications arising due to Diabetic Retinopathy, Diabetic Nephropathy and Diabetic Foot Ulcer. However this policy requires a pre medical screening even if the proposer is less than 50 yrs of age.
FAQ’s on Mutual Funds
What is a mutual fund?
What is the Net asset value (NAV)?
What is SIP?
Is SIP a risky investment?
Can I start SIP at any time or when the market is high?
FAQ’s on Stock Brooking &Research
WHY WOULD I invest in stock market ?
WHAT INSTRUMENTS ARE TRADED IN THE STOCK MARKETS?
WHAT ARE STOCK RECOMMENDATIONS?
CAN I OWN MORE THAN ONE DEMAT OR TRADING ACCOUNT?
What is Wealth Tree Research:
What services those wealth trees provide?
- Portfolio restructuring of existing investors.
- Specific stock recommendations for long term investment.
- Trading calls in all segments (cash market, futures& options, commodities & currencies)
- Short & Long Term Technical & fundamental Reports.
FAQ’s on Loans
What is the Process of applying for a loan
Few steps involved while applying for a loan are:
Loan Application Form: An application form for loan is provided by the banks which should be filled correctly and the type of loan you need should be mentioned clearly.
CIBIL Check: CIBIL Check is done in order to count the scores of your credit cards. CIBIL collects and maintains the records about the loans you have to pay apart from the loan you are applying for. If the score of your credit card is higher, loan can be sanctioned to you easily.
Submission of Required Documents: The customers need to produce their identity proofs and other certificates to that bank so that they can trust you for providing loan. Hence, submission of the required documents is a very important procedure involved in the sanction of a loan.
Approval of Loan: Now, it’s the banks’ job to go through the documents and details properly and then sanction you the loan. Once the documents are approved by the banks they approve their customers for the loan.
What are the different types of loans available ?
- Loan for Land Purchase
- Loans for repairing and extension of your home
- Loan for building a home
These different types of home loans can be useful to you in buying a property or a home of your own.
Personal loans are meant to meet the personal needs of an individual. People can use this money for anything they want. They can but some expensive gadgets or can also keep this money for going on a holiday with family. The rate of interest of this type of loan although is comparatively higher but it still feels great to have the money in advance.
Vehicle loan or to be more specific car loans fulfills your dream of having a car or a bike. This loan is offered by almost all the banks in India. This loan is a secured loan hence if the installments are not paid on time the lender has the right to take back the vehicle. If you get the loan on time the installments should also be paid regularly.
A Business Loan is thus an unsecured loan at an interest rate, giving you access to credit that can be paid back over an agreed time along with the interest, without any security against it.
Loan Against Property :
Loan against property (LAP) is also known as ‘Home Equity Loans’ and is basically a kind of loan against the security of one’s property. LAP is designed to meet the financial needs of a person who already owns a house, which is free from any encumbrance (i.e. it is not given as security for any purpose).
FAQ’s on Property Consultancy and Real Estate
What is the list of documents that you should verify before booking a property?
- Confirm the approved plans from the appropriate authority are in place.
- Check that all other permissions from various authorities are in place. E.g. Utility Companies, Environment clearance, Airport Authority, etc.
- Confirm that the Land title is clear and there is no disputes/litigation (Title Certificate).
- Confirm Builder has the Intimation of Disapproval (IOD) and commencement Certificate (CC) to start construction.
- Have the agreement evaluated by an Advocate. Check possession date promised and provide for penalty if Builder does not deliver as agreed.
- Check and negotiate the payment schedule.
- Do not book in Pre-launch without executing and registering the agreement. In Maharashtra, it is mandatory for Builder to do both at inception stage itself.
List of documents to verify at the time of registering your property
2. Title Certificate from Advocate of current date
3. Copy of IOD/Commencement Certificate
4. Stamp duty paid receipt
5. Demand Draft for payment of Registration fees.
6. Property Card showing CTS No. of plot
7. PAN cards of Sellers and Buyers
Due diligence before buying a resale property
2. Ensure no dues are accorded to the builder
3. Check for seller’s name in municipal records
4. Confirm seller’s membership in the society (if formed)
5. Ensure there are no pending bills, charges or taxes
6. Make sure that the property is mortgage free
7. Sanctioned Building Plan (to ensure no unauthorized construction)
8. Previous title documents (that chain of title is complete)
How to verify project approvals documents?
What are the taxes that need to be paid at the time of property purchase?
- TDS or tax deduction at source on amount exceeding Rs 50 lakhs for the purchase of immovable property excluding agricultural land. The TDS must be submitted in the name of the seller.
- Stamp duty on registration
- Service Tax is applicable if the property is being purchased from the builder who conceived and constructed the project before offering possession to the buyer. If a ready-to-use property is purchased from the seller then service tax is not applicable.
- Value Added Tax (if applicable in the state)
What are capital gains on property sale?
For short term capital gain, the capital gain from asset is added to the investor’s income and taxed as per the income tax slab they fall under.
For long term capital gain, tax liability is determined based on indexed cost of acquisition and improvement. Indexation is a concept, which factors inflation in its calculation by using a factor called cost inflation index (CII).
How can NRIs invest in real estate?
Any immovable property can be purchased by an NRI in India other than any agricultural land, farm house and plantation property.
He can get any immovable property as mentioned above by gift from Indian resident, Indian citizen residing outside India or person of Indian origin.
He can also obtain any property by the way of inheritance.
He can transfer immovable property to any resident of India by sale.
He can transfer any agricultural land, farm house or plantation land to any resident of India by gift.
He can also transfer his residential or commercial property by means of gift to any person either residing in India or abroad or person of Indian origin.
What is Power of Attorney?
There are two types of power of attorney that can be granted namely ‘General Power of Attorney’ wherein a property owner gives ‘general’ rights to his/her chosen attorney. These include but are not limited to sell, lease, sub-lease etc. the Property as the Power of Attorney deems fit. The other type is ‘Special Power of Attorney’ wherein only a ‘special’ or ‘specific’ right is given by the owner to his/her chosen Power of Attorney.
Can a Power of Attorney be issued to someone else to register the document?
FAQ’s on Training
What Is Technical Analysis Course? How it is beneficial to me ?
What is NISM? Why is it important ?
NISM is the sole authority to issue certifications for all people working in financial markets
What are NISM Certifications?
NISM Series VA : Mutual Fund Certification
NISM Series VI : Depository Operations Certification
NISM Series VII : Securities Operations & Risk Management Certification
NISM Series VIII : Equity Derivatives Certification
NISM Series XA : Investment Adviser Certification
NISM Series XV : Research Analyst Certification
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