FAQ’s on Financial Planning

What is Financial Planning and What exactly you do in financial planning ?

Financial planning is a process that you go through to find out where you are now (financially), determine where you want to be in the future, and what you are going to do to get there.

We follow the six step process in creating your financial plan:

  1. Clarify your present situation.
  2. Identify your financial and personal goals and objectives.
  3. Identify financial problems or opportunities.
  4. Determine recommendations and alternative solutions.
  5. Implement the appropriate strategies to achieve your goals.
  6. Review and update your plan periodically.

FAQ’s on Insurance

What is Life Insurance

Life Insurance is a contract between you and a life insurance company, which provides your beneficiary with a pre-determined amount in case of your death during the contract term.

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 ?

In order to buy a life insurance policy, you must pay premiums to the life insurance company. The amount of premiums payable depends upon the type of policy, term of policy contract, sum assured and your age.

You could pay these premiums monthly/ half-yearly/ annually/ or as a single premiums.

How much do I insure myself for?

One of the simplest rules is to assume that insurance is a replacement for your lost earning capacity. Calculate your total income for the years that you expect to work.

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?

Riders are additional benefits that can be attached onto your basic life insurance policy. These riders give you the benefit of increasing your risk cover in case of certain events happening. For instance if you have taken an Accident Death Benefit rider and you die due to an accident then your beneficiaries can get up to a maximum of twice the basic sum assured subject to Claims acceptance.

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?

Health insurance will protect you and your family against any financial risks arising due to a medical emergency. Buying a proper health plan would help you in saving your hard earned savings and other assets

What is the maximum number of claims allowed over a year?

Any number of claims is allowed during the policy period. However the sum insured is the maximum limit under the policy.

Does health insurance cover diagnostic charges like X- ray, MRI or ultrasound?

Health Insurance covers all diagnostic test like X- ray, MRI, blood tests etc as long they are associated with the patients stay in the hospital for at least 24 hours. Any diagnostic tests which does not lead to treatment or which have been prescribed as Outpatient are generally not covered.

What do you mean by Network /Non-network Hospitalization?

A Hospital, which has an agreement with us for providing Cashless treatment, is referred to as a ‘Network Hospital’. Cashless facility is provided ONLY at the network hospitals. Non-network hospitals are those with whom we do not have any agreement and any policyholder seeking treatment in these hospitals will have to pay for the treatment and later claim as per reimbursement procedure.

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?

Yes. You can take any individual policy with us in which the existing condition of diabetes would be excluded.

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?

A mutual fund is a pool of money contributed by individuals who have similar financial goals. The money collected is then invested in various securities such as equities, debentures/bonds and/or money market instruments.

What is the Net asset value (NAV)?

The price or value of one unit of a fund. It is calculated by summing the current market values of all securities held by the fund, adding in cash and any accrued income, then subtracting liabilities and dividing the result by the number of units outstanding. Most open-ended funds companies compute NAVs once a day based on closing market prices.

What is SIP?

Systematic Investment Plan is a tool that helps you to create wealth, by investing a small sum of money over a month (or a fixed period of time). In SIP, a fixed amount of money is debited periodically by the investors in the bank and is invested in a specific plan.

Is SIP a risky investment?

Most of the investors think that investing in SIP is a risky affair as the value of money keeps on fluctuating with time. As compared to any other mode of investment, SIP is less risky as you will invest periodically, amount of investment is of your choice and the minimum period of investment is only 6 months. You can withdraw the money at any point of time.

Can I start SIP at any time or when the market is high?

SIP can be started at any point of the time and at any state of the market. The idea of SIP is to avoid timings of the market and start investing with a purpose. Due to rupee cost averaging maximum benefits are attained irrespective of the market’s condition.

FAQ’s on Stock Brooking &Research

WHY WOULD I invest in stock market ?

Stocks are one of the most effective tools for building wealth, as stocks are a share of ownership of a company. You thus have great potential to receive monetary benefits when you own stock shares. Owning stocks of fundamentally strong companies simply lets your money work harder for you since they appreciate in value over a period of time while also offering rich dividends on a periodic basis.


There are various types of instruments traded in the stock market. They include shares, mutual funds, IPOs, futures and options.


You cannot invest without conducting research. Often, many analysts and brokerage firms undertake their own stock market research keeping in mind the economy, industries, currency valuation, and so on. They often use public data from institutions like the Reserve Bank of India and speak to experts as part of their research. This is not easily possible for retail investors. As a result, findings of such research are extensively followed by investors, which also give a buy or sell recommendation for specific stocks.


Yes, you can own more than one demat and trading account. However, these may be with multiple brokers and firms. While you have the freedom to open many accounts, it is not a viable option. This is because you would have to pay maintenance charges for each of these accounts, which may turn out to be costly affair in the long run.

What is Wealth Tree Research:

Wealth tree research is a advisory Firm focusing on Fundamental &Technical Analysis that provides real time financial markets recommendations to its customers for long and short term investment opportunities
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

Taking a loan is not as complicated as most people think. The only thing which should be paid attention to is that genuine documents should be submitted to the bank on time. Different types of loans in India require different types of documents.

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 ?

Home loan:

  • 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 Loan:

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:

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.

Business Loan

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?

  1. Confirm the approved plans from the appropriate authority are in place.
  2. Check that all other permissions from various authorities are in place. E.g. Utility Companies, Environment clearance, Airport Authority, etc.
  3. Confirm that the Land title is clear and there is no disputes/litigation (Title Certificate).
  4. Confirm Builder has the Intimation of Disapproval (IOD) and commencement Certificate (CC) to start construction.
  5. Have the agreement evaluated by an Advocate. Check possession date promised and provide for penalty if Builder does not deliver as agreed.
  6. Check and negotiate the payment schedule.
  7. 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

1.Approved plans
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

1. Check for a duly stamped registry
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?

Same documents as above would need to be verified for checking project approvals. Confirm approved plans, other approvals such as environmental clearances are important and NOC from utility companies. Title Search must be carried out at the Sub Registrar’s office to verify title and ascertain encumbrances, if any.

What are the taxes that need to be paid at the time of property purchase?

The buyer needs to pay the following taxes at the time of registering the property:

  • 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?

The income tax rules define gain in two broad categories; namely short term capital gain (STCG) and long term capital gain (LTCG). Any gains arising by selling a property after holding it for 3 or lesser number of years, is short term capital gain. Any gains arising by selling the property after holding it for more than 3 years comes under long term capital gain.

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?

According to the regulations of FEMA and RBI, an NRI is allowed to do the following investments in property:
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?

Power of Attorney is the right/authorization given by a property- owner to someone through whom the owner transfers the power and rights to deal with the Property to his/her chosen power of attorney. A power of attorney can be either a co-owner of the property, a blood- relative of the owner or any other person not related to that property or the owner.

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?

Yes, by executing a ‘Special Power of Attorney’ for this purpose, the property owner can transfer his/her right to register a property document to someone else.

FAQ’s on Training

What Is Technical Analysis Course? How it is beneficial to me ?

Technical analysis is about the dynamic price movements in the markets which is never the same, but their behavior is! With this program, we put forward the first step to understand the basics of price movements – Demand and Supply. It will be an insightful experience to test various methods and tools to detect the pulse of the markets and determine the trend in which the prices are moving. It covers various dimensions – from the detection of good, high quality trades to money management skills using risk reward analysis needed for money management and risk assessment. Learning technical analysis enables students to develop their own intraday/positional trading strategy that aligns with their skill level, capital investment and personal goals using different chart patterns, Fibonacci, trading systems and many other indicators and oscillators. After having completed the course, a student should be well equipped to analyze the trend in which the market is moving and trade both in the equity and derivative segments.

What is NISM? Why is it important ?

NISM stands for National Institute of Securities Markets. It’s a Public trust set up by SEBI.
NISM is the sole authority to issue certifications for all people working in financial markets

What are NISM Certifications?

NISM Series I : Currency Derivatives Certification
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

We grow when you grow…