faq
Frequently Asked Questions
- Mutual Funds
- PMS/ AIF
- Life Insurance
- Health Insurance
- General Insurance
- Direct Equity / IPO Investing
- Private Equity Investing
- National Pension System
- NCDs & Corporate FDs
- Tax Free Bonds
- Dematerialisation
- Retirement Solution
- Children's Future Solution
- Taxation
What is a mutual fund?
A mutual fund pools money from multiple investors to invest in a diversified portfolio of securities.
Are mutual funds safe?
Mutual funds carry market risks, but diversification reduces individual investment risk.
What is PMS?
Portfolio Management Services (PMS) provide tailored investment strategies for high-net-worth individuals.
What is AIF?
Alternative Investment Funds (AIFs) invest in private equity, real estate, and other non-traditional assets.
Why is life insurance important?
Life insurance secures your family financially in the event of your death.
What is term insurance?
Term insurance offers high coverage at low premiums for a fixed period.
What is health insurance?
Health insurance covers medical expenses arising from illnesses or injuries.
Why should I buy health insurance?
Health insurance protects you from unexpected and expensive healthcare costs.
What is general insurance?
General insurance covers non-life assets like vehicles, homes, and travel.
Is vehicle insurance mandatory?
Yes, third-party motor insurance is mandatory under Indian law.
What is direct equity investing?
Direct equity investing involves buying shares of listed companies directly from the stock exchange.
What is an IPO?
An Initial Public Offering (IPO) is when a private company offers shares to the public for the first time.
What is private equity?
Private equity involves investing in private companies or buyouts of public companies.
Who can invest in private equity?
Private equity is typically suitable for high-net-worth individuals and institutional investors.
What is the National Pension System (NPS)?
NPS is a government-sponsored pension scheme that allows systematic savings for retirement.
Is NPS tax-saving?
Yes, NPS offers tax deductions under Section 80C and an additional Rs. 50,000 under 80CCD(1B).
What are NCDs?
Non-Convertible Debentures (NCDs) are fixed-income instruments offering higher returns than bank FDs.
Are corporate FDs safe?
Corporate FDs offer higher returns but come with credit risk. Always check the credit rating before investing.
What are tax-free bonds?
These are bonds issued by government-backed institutions where the interest earned is tax-exempt under Section 10(15)(iv)(h).
Who should invest in tax-free bonds?
They are ideal for individuals in higher tax brackets seeking safe and steady tax-free income.
What is dematerialisation?
Dematerialisation is the process of converting physical share certificates into electronic form.
Why is demat account required?
A demat account is mandatory to hold and trade securities in electronic format.
Why is retirement planning important?
Retirement planning ensures financial independence and stability in your later years.
When should I start retirement planning?
The earlier you start, the more you can benefit from compounding and long-term growth.
How to plan for children’s future?
Investing in goal-based plans ensures funding for education and marriage.
Are child plans tax-efficient?
Yes, many child plans offer tax benefits under Section 80C and provide maturity benefits.
What are capital gains taxes?
Capital gains tax is levied on profits from sale of assets like stocks, real estate, and mutual funds.
How to save tax on investments?
You can save tax by investing in ELSS, PPF, NPS, insurance, and other 80C compliant instruments.