Due to double indexation, investors here either pay capital gains tax on lower gains or show a notional loss and pay none

Inflation index to the rescue of FMP investors

Business Standard

We might have entered a phase when all asset classes could fall for some time. It's time to play safe

Just sit tight

Business Standard brings to you a snapshot of average current rates and unit sizes in localities that offer property in a price range of Rs 2 crore to Rs 4 crore. If you are looking at buying real estate and your budget falls within this range, an idea about prevailing rates would come in handy

Realty check

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

Case study

Suffered a heart attack and don't have a health insurance policy? It is very unlikely that you would get one. While pre-existing heart ailments should be covered like any other pre-existing disease, that is, after a waiting period of four to five years, most insurers politely deny this.Now, such patients can heave a sigh of relief. Chennai-based Star Health and Allied Insurance has launched Cardiac Care, a new product dedicated to those who have undergone angioplasty or bypass surgery. This comes at a time when even youngsters are suffering from heart attacks and run the risk of not being covered for life.India is estimated to have 32 million heart patients; by 2015, it could become the cardiac ailments capital of the world.Cardiac Care has a small waiting period, as it offers coverage after 91 days of the commencement of a policy to patients who have undergone angioplasty or bypass surgery once in the last two to three years. One can apply for this six months after the surgery to a ma

A good option for heart patients, at a reasonable cost

Is there an age limit for residential property to be insured?Yes, most insurers decline to insure homes that are 30 or 40 years old. Even if an insurer issues a home policy for an old property, it will charge a high premium (25 to 30 per cent higher, on an average), depending on the risk to the house/society and the increase in cost of construction in the area where the house is.What happens if an insured house is sold?Once the ownership is completely transferred, the policy stands cancelled and policy proposer or the previous owner of the house is paid back the premium for the remaining policy period.

Tipping point

I have taken a home loan of Rs 20 lakh for 20 years from a private bank. I am paying an equated monthly instalment of Rs 20,000. I am planning to shift my loan to another bank, which offers a lower rate. Is it the right time to switch?It would make sense to switch your loan to another bank only if there is a large differential between the interest rates offered by both. Though the Reserve Bank of India (RBI) has abolished the prepayment penalty for floating rate loans, there are other charges you are likely to incur to switch a loan, including processing fees, legal charges and stamp duty charges. Most experts believe interest rates have peaked and are likely to decline in the near future. Currently, the best course of action would be to talk to your bank and negotiate on the issue---you could ask it to reduce your loan rate and take it forward accordingly.I had a recurring deposit (RD) account with a public sector bank. Due to some technical error in the bank's software, my cheque was

Banking:  Prashant Joshi

Watch out for any unpaid dues, taxes and society bills the previous owner could have defaulted on

Bank-auctioned homes may be cheaper

Oversimplification of estimates implies equal chances of success and failure for the trader

Get real about consensus estimates

Compare interest paid on car loan and tax benefit on rentals before deciding

Cheaper to lease than buy a car

Since physical gold is at a premium, gain from arbitrage by selling physical gold against delivery and buying futures

Sell physical gold and buy futures

Those who do not adapt to changes will lose out on superior investment avenues

Update your investment strategy

Some societies may charge flat owners extra maintenance fee if the tenant uses the amenities

Checklist for renting out your house

Ensure that you have an acknowledgement from the financial institution when closing a bank account, credit card or insurance policy

Improper closure can cause more problems

If a driver didn't have his licence in his possession at the time of an accident, will his claim be honoured?Yes, provided the driver is able to produce a valid licence at the time of filing a claim. However, the claims can be denied if the driver is known to be carrying an inappropriate licence (two-wheeler licence for a four-wheeler) or an expired one.What if the licence is being renewed at the time of the accident?The driver will have to produce a receipt or statement from the Regional Transport Office that the licence is in the process of renewal. If such a statement is produced at the time of filing the claim, it can be honoured.

I earn Rs 1.5 lakh a month and have a Credit Information Bureau (India) Limited (Cibil) credit score of 600. Still, a public sector bank refused me a home loan. What could be the reasons and how do I go about negotiating the same?Credit score is just one among the many criteria that banks consider before approving a loan application. However, banks are duty-bound to provide the reason for rejection of a loan application. You should ask the bank and then try to convince them about the apprehensions that they may have. You may also apply to other banks or housing finance companies.I am 28 and planning to take a personal loan. I learn that maintaining a good credit history is important. What are the key elements of a good credit history report? Which of my financial activities will the credit bureau keep a check on?The key elements for a good credit history report are - payment history such as late payments, write-offs, repossessions, settlements, credit utilisation in terms of credit use

Debt Counselling: Sanjay Agarwal

Navi Mumbai has been developed as a planned city and a counter-magnet for Mumbai. It has been developed as an independent, fully self-contained metro city. Navi Mumbai has been planned and developed by City and Industrial Development Corp of Maharashtra (Cidco) to meet the infrastructure needs of a modern metropolis.Cidco is a state public sector undertaking, registered under the Companies Act in March 1970. This body prepared the developmental plan for Navi Mumbai, covering 95 villages spread over 343.70 sq km. This plan was approved by the government of Maharashtra in August 1979. Many government and corporate offices were shifted from Mumbai to Navi Mumbai. The chemical, pharmaceutical, engineering, textile processing, electronics, oil and oil processing, paper, plastic, steel and food industries in Taloja and the IT units and special economic zones in the Thane-Belapur industrial belt of Navi Mumbai all offer vast job opportunities. As a result, a large segment of the service class

Strong contender due to locational advantages

We received an incredulous call from one of our financial planning clients. He claimed he had lost capital value when he had invested some large surpluses in a liquid fund. He claimed when he withdrew the entire investment last month, he got back less than the amount invested in January. Liquid funds are safe, hence, there was no question of any loss being incurred. We asked him for details.We learnt the client had invested Rs 3 lakh on January 10, 2013. Net asset value (NAV)= Rs 2,179.23; allotment =  137.66 units. On March 25, he received a dividend of Rs 65,603, which was reinvested as he had chosen a dividend reinvestment option. The NAV at this point of time was Rs 1,592.4214 and, therefore, an additional 41.197 units were credited to his account. Thus, the total number of units stood at 178.86.The invested amount reduced on March 26 to Rs 284,820, that is, NAV (as on date) multiplied by the number of units (1,592.4214*178.86). Had he invested in the same fund but opted for growth

Growth option is more tax-efficient

Be sure of your project idea and delivery time, as you might need to pay back your investors

Risks in crowd funding

Investors are willing to punt on rumours but not expose themselves aggressively to industries they understand

Page 62 - Investment