Cover Story

Alice in Ulip-Land
The ideal world: Ulips offer a mix of insurance cover, investment returns and tax savings. The real world: they are primarily insurance products with an investment edge.What Ulips are all aboutUnravelling the Ulip

Ulip strategy for all markets
Ulips instill discipline in policyholders and make them stay put for long periods. They disregard the shortto mid-term market noise and see their investment grow over the long term.
How upfront charges help
Fixed upfront charges combined with lower fund management charges (FMCs), as in many Ulips, result in higher yields than lower upfront charges with higher FMCs, as in many mutual funds.
Ulips of the future
Allowing insurance companies to invest in equity derivatives, structured guarantees and in real estate will pave the way for a range of innovative developments in the Ulip platform.
What Ulips are all about
Ulips are different from traditional insurance policies in terms of risk cover, costs and returns.
The long haul
Regular and disciplined investment in Ulips builds a large corpus in the long run.
Unravelling the Ulip
Compare different plans for costs and benefits to choose the one that suits your needs.
What experts see in Ulips
There is an unprecedented growth in the number of Ulips sold and in the collection of premiums. All of this serves to boost the cause of privatisation. This is why we decided to make Ulips the subject of the first Money Today Round Table, held in Mumbai last month.
Cover drive
The first Money Today Online Survey showed unprecedented results. The average insurance cover of the 321 respondents was almost Rs 9 lakh, much above the national average of Rs 12,000.

2008-09-18

Digital

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Mutual Fund

Templeton India Growth Fund: A safe bet

The Templeton India Growth fund has made its debut in the list of best performing funds. It has lost the least in the past six months.

Rife with risk

Money Today and Plexus Management evaluate JM Multi Strategy Fund: This is definitely not for a low-risk taker or a risk-averse individual.

'Go against the flow'

When everybody starts talking of investing in an asset class, you should redeem your money. When they have burnt their hands in an asset class, lost money and redeemed it, start investing, says Arvind Bansal.

Taxation terms-II

The mutual fund investments are subject to capital gains tax, which is applicable to gains from the sale of fund units. This tax is levied directly on investors, as opposed to DDT, which is charged to the fund. Let us consider the capital gains tax at the 2008-9 rates.

Insight

Your world: Currencies

A snapshot of the rupee’s performance to help you take decisions on travel and overseas investments.

BASICS

Know your Ulip's features

Unit-linked insurance plans have been the undisputed flavour of the past few seasons. But most policyholders, as well as prospective buyers, are unaware of certain elementary aspects of these plans.

Stocks

MMTC a performing PSU stock

MMTC and State Trading Co are the only PSUs to figure in the list of top stocks in the past year.

Waiting patiently for another crash

Another fortnight and still no change in either portfolio. Dipen Sheth continues to sit on 50% cash even as he expects the markets to crack. Again.

Travel

Staying on track

With its Rs 20,000 crore public-private initiative that will offer three-star lodging at affordable rates across the country, the Indian Railways is set to revive its sagging image. For proof, check out the newly renovated Ginger Yatri Niwas in Delhi.

New Business

Profiting from matchmaking

For M. Janakiraman, owner of Rs 100 crore Bharatmatrimony.com, the journey from rags to riches is characterised by determination and a dash of luck.

Portfolio Doctor

Paying for a wrong start

A low insurance cover, a heavily concentrated stock portfolio and a house bought entirely with loans.The Sharmas must diversify and buy insurance.

Tax

When can I claim a deduction under Section 80C?

You can claim a deduction under Section 80C in your income-tax return for the life insurance premium paid on a policy taken on your own life, the life of your spouse or child.

Real Estate

Customer is king, again

Hit by low sales, real-estate developers are offering discounts and refocusing on the mid-price and budget segments.

Sector Scenario

Sugar in a sweet spot

A combination of falling production and rising prices is likely to translate into big profits for sugar producers over the next two years, finds out R Sree Ram.

Upfront

Banking: Pains and gains

As if the rising interest rates were not worrying enough, now be prepared for the sting of higher service charges. The financial sector in the country has been battling rough weather for a while now.

Talk Back

Please explain the formula used for calculating EMIs?

The calculation of home loan is based on the fundamental principles of annuity. EMI is the amount paid every month which gives the present value of ordinary annuity or annuity due (given a particular rate of interest and loan tenure).

Expert View

The dark side of Ulips

It’s silly to buy insurance and investments together. One can buy mutual funds separately at one’s discretion. There is no need to lock in a fixed commitment to units of a mutual fund (clubbed with insurance cover) with a multi-year horizon.

Banking

How safe is your deposit

Not much, if your bank folds up. Here’s what you should know to keep your money secure.

Books

Breaking the rules

DePorre uses the shark metaphor to good effect while offering an aggressive investment strategy that debunks conventional wisdom.The advice is sound, but not practical enough to empower the ordinary investor, says Kamya Jaiswal.

Your Wallet

Plan your talk

If you have laboured over which mobile plan to choose, here’s a handy guide based on a recent Credit Suisse survey on prepaid schemes.

Technology

Wi-Fi in your pocket

Have e-mail, must check. But what do you do to indulge your e-mail obsession if you don’t have a fancy mobile phone or a laptop? There are several gaming and music devices with Wi-Fi connectivity and a browser that can help you stay connected.

My Idea

Shoe shine

When Mumbai-based 19-year-old Samrit Shah painted his sports shoes for fun, he didn’t realise how quickly the concept would catch on. Today, along with friend Himay Kumbhani, he runs Toe 2 Head, a shoe customising outfit.

Editor's Note

From the executive editor

Almost every investor, including you and I, has acted on a tip or a rumour or simply taken a speculative gamble at least once during his investment lifetime. Therefore, we feel our first job is to "educate" investors.

Now and Then