What if a National Pension System (NPS) subscriber stops investing without paying the minimum amount? The subscriber will have to bear a default penalty of Rs 100 a year, and the account would become dormant. To reactivate the account, the subscriber has to pay the minimum amount of Rs 6,000, along with the penalty for the dormant period. The dormant account would be closed if the account value falls to zero.What happens to the investments if one discontinues the scheme?If a subscriber plans to exit or discontinue NPS before the age of 60, he/she has to compulsorily withdraw up to 20 per cent of the accumulated sum and buy annuity with the remaining money. If the subscriber dies before 60, the entire sum goes to the nominee.

Tipping point

Business Standard

I haven't invested in tax-free bonds. Would you suggest buying some of these in the secondary market? All the primary issues for tax-free bonds for this financial year are over. You will now have to wait for such issues in the next financial year, as and when they come. Therefore, if you need to invest in these bonds at present, you will have to do so from the secondary markets. However, please invest in these only after reviewing your tax bracket and post-tax returns on comparable fixed income instruments. For example, if you are in the lowest tax bracket, it would be better to invest in, say, a bank fixed deposit at nine per cent, since you would get a better post-tax return of 8.1 per cent, than tax-free bonds, which are being issued at tax-free yields of around 7.5 per cent per annum.I am 28 and have never bought stocks. However, I have systematic investment plan (SIP) investments of Rs 1,000 each in two mutual funds. Now, that I have accumulated some capital, I wish to take some r

Investing:  Rishi Nathany

Instead of speculating, stick to a goal-linked diversified investment plan for the long term, based on your horizon and risk appetite

Why timing the market can hurt

Traders can take a long position in Infosys for the next 5-10 sessions and have a 5% stop-loss below the price

Trading on Murthy's comeback

They protect the company and the individual from problems that can arise due to actions of the senior managementLast month, a fire in a brokerage firm at Coimbatore claimed the lives of four women employees. The branch manager was arrested but the company was able to bail him out through insurance from the Directors and Officers Liability Insurance (D&O) policy.This is just one example. There are several other decisions that managing directors and senior executives make that can lead to losses due to uncertain environment or other issues. However, shareholders or others impacted by their decisions could approach the courts for redressal. In such circumstances, both the company and the individual needs to be adequately armed with legal protection.However, if a fraud is committed knowingly, as had happened in Satyam's case, the executive will not be covered by the D&O policy."A D&O insurance policy secures managers of companies against their personal liability for decisions t

Covers for directors and officers are essential

Starting a business? Take care of the operational issues, keep costs low and get a handle on your finances. Here is how to do it

Entrepreneurs: Get set, then go

Though three stocks offer higher leverage via derivatives, be ready for some volatility

Dial 'T' for telecom stocks?

Keep working on your portfolio according to market conditions. But don't do it too often

Risk or return: Take the tough call

While putting money across asset classes is a must, there should be some balance

Over-diversification does not help in improving returns

Interest cost variation can also be a burden when planning for higher studies

A financial planner for education

A giant step would be to accept your mistakes and learning to analyse the reasons

What do you do when investments run into the red?

If you want a fat pay cheque or higher salary, specialise in a particular field of work

The careers that pay

Every Monday, Business Standard analyses one family's finances and suggests a suitable way forward

Case study

Once your debt payout exceeds your income or is delayed and available funds are less than the dues, it's time to step back

How to regularise your debt

With RBI set to launch IIBs soon, a look at what these are and how they could benefit you

All about inflation-indexed bonds

While buying an endowment or a money-back policy, agents usually give a benefit illustration. While showing these illustrations, what factors, if not considered, would widen the gap in projected returns? How genuine are these projected returns?A benefit illustration is a sample projection of the benefits provided by an insurer, indicating the benefits payable according to the terms and conditions of the policy. A benefit illustration is mandatory only for unit-linked insurance plans (Ulips). However, you could insist on a benefit illustration for these policies from your agent. If the agent does not provide it, you could check the insurer's website or contact the insurer's office or call centre. In the case of a traditional policy, it is highly improbable an agent would hide anything, though he could over-promise non-guaranteed benefits such as bonus rates in participating policies, as these change every year. However, it is always better to check the authenticity of the benefit illust

Life insurance: V Philip

After City and Industrial Development Corporation (Cidco) launched plots for sale at Kamothe, the area has been developing through the last three years. It is located between Kharghar and Panvel and is accessible both by road and the harbour line. Also, the proposed Navi Mumbai airport is close, making the area investment-centric, with considerable potential of long-term appreciation.As is the case with every Navi Mumbai node, the basic infrastructure has been put in place by Cidco. Residential development at Kamothe is visibly geared towards the middle- to lower-middle-income segments, with most residential projects having one-, two- and three-BHK flats. Now, Cidco plans to build shopping malls, and this should make area a preferred location in Navi Mumbai. Retail brands such as Food Bazaar and Furniture Bazaar are already present. Apna Bazaar, Value Mart, Spinach and Fairprice are some of the super markets in Kamothe. There are also a few open markets in sector 7.Education and health

Great investment potential due to strategic location

The benefits of a householder's insurance policy extend to the entire family and cover all the items included in the policy, said National CommissionPrabodh Kothari had an Oriental Insurance householder's policy. In a housebreaking case, Kothari lost items worth Rs 18.16 lakh, including jewellery worth Rs 16.96 lakh. After Kothari filed a claim, CP Mehta & Co, the surveyor appointed by the insurance company, reported the loss included items worth Rs 13.38 lakh belonging to Kothari's wife. It added this amount could not be considered, as she was not the insured under the policy. The insurance company agreed to pay only a paltry sum of Rs 31,186.Subsequently, Kothari filed a consumer complaint against the insurance company and the surveyor before the Mumbai District Forum. The forum said under a householder's insurance policy, the items of all family members were covered. Therefore, the jewellery belonging to Kothari's wife, listed in the policy taken by her husband, would be covered

Householder's policy covers the entire household

If FIIs cut exposure to India, equity prices would fall even if fundamentals improve, which will benefit long-term investors

Global liquidity affects stock prices

Contingency fund and health insurance for yourself and dependents are very important

Plan your finances before starting your own business

The tax office will verify your form and ensure if all transactions have been reported and taxes paid

Page 60 - Investment