MICRO Blog

Having a SEBI registered license implies that an individual is qualified and competent to offer investment advice as mandated by SEBI regulations. (Read here: Who is a SEBI Registered Investment Adviser? )RIA can be individual, corporate or partnership mode. An RIA can offer a wide variety of services and charge fees directly from the client, […]

It has been a decade since SEBI came out with investment advisory regulations in 2013 separating distribution and investment advice to protect the interest of investors. As per the regulation, investment advice means giving advice on investment securities or products or investment portfolio for the benefit of client and shall include financial planning. This includes […]

The decision to choose a suitable health insurance product should not be based solely on low premiums. Waiting period on pre-existing diseases, general waiting period, room rent restrictions, sub-limits, permanent exclusions and many such features need to be evaluated to make the befitting choice. One such feature is cumulative bonus in a health policy. It […]

A picture says it all. The power of investing in a business through equity. When invested in equity through mutual funds, you get the benefit of diversification. Some businesses will do great, some good, some decent, some poorly, some worst. But equity is the best asset class likely to beat inflation over the long run. […]

Every single financial decision you take affects other financial areas of your life. How is your lifestyle, how you spend your money, how you manage your cashflows, how you invest your money, how you use your credit card, how you manage your loans. Even your income earning potential – how do you invest time and […]

Financial planning is less about numbers and more about people. At times, thumb rules do not work. Every story is different, every financial situation is as unique as the fingerprint of a human hand. For instance, keeping too much idle money in bank savings or too much investment in FD like options beyond necessity of […]

In old Bollywood movies, gold has been typically projected as a last resort in situations of extreme financial distress. The traditional belief that gold stashed away in lockers can come for financial rescue in critical times is ingrained in Indian mindsets. During the initial uncertain period of Covid lockdown, I received few queries on gold. […]

In 2021, Mr. A invested Rs.6 lakh in a 5 year fixed deposit, earning around 5.5 per cent p.a. After bottoming out, interest rates in general started rising since last year. Now, 1 year FD rates yield around 7 per cent p.a. Mr. A is in a fix. If he breaks the FD, he will […]

It is common knowledge that an emergency fund can help in any kind of contingencies – be it medical, job loss, sudden repairs, etc. It is not for earning returns neither is it for planned expenses. It should be as liquid as possible and safety of capital is important. But there is also another perspective […]

Did you know that you can port your health insurance policy just like your mobile number? If you are not happy with your policy, you can switch to another insurer of your choice as per IRDA regulations. But let us discuss first what would be the right reasons to switch to another insurer. The right […]

The half-yearly interest reset of RBI Floating rate bonds has happened in July. From July 1 till December 31st 2023, the interest rates on these bonds have been revised to 8.05 per cent p.a. RBI floating rate bonds are offered by the government with sovereign guarantee. The bonds are repayable after 7 years. They offer […]

With markets making new highs & topping headlines recently, it is tempting to get swayed by the market noise. Timing the market never works unless you get lucky. But you cannot get lucky every time by accurately predicting the peaks and troughs. Neither does it matter when you are in for the long haul. Should […]

The Union Budget 2023 had announced a new small savings scheme exclusively for women. This was to encourage women investors to save. While it was earlier available only at post offices, it has recently been made available for subscription in all banks for enhanced reach to women. The scheme allows deposits under the name of […]

Post office interest rates are market linked and are revised every quarter depending upon the movement of long & short term market rates in general. The above interest rates are applicable for the second quarter (July-September 2023) of financial year 2023-24. With the general rise in interest rates over the last 4 quarters, post office […]

While there are many fintech platforms coming up which offer direct plans, there are a large portion of investors who mostly purchase mutual funds from distributors. The distributor gets compensated in the form of commissions. Nothing wrong in it though. The problem arises when the distributor recommends funds which align with his own interest rather […]

A prospect recently asked me this during a preliminary discussion – What if I do not buy health insurance and save money on paying premiums? Instead, I build my own medical fund. So, I asked her a few questions. She found her answers in the questions asked. To conclude, a medical fund can be a […]

The tax regime opted by an individual will decide how much tax will be deducted from his/her salary income. From financial year 2023-24, if you do not select any tax regime, the new tax regime will be the default option. This implies that your employer will deduct tax as per the slab rates of the […]

With a view to remove the tax disparity between debt mutual funds and other fixed income instruments like FDs, the government has finally approved the amendments in the Finance Bill 2023. Till now, debt mutual funds held for 3 years or more enjoyed the indexation benefit on purchase cost and long-term capital gain taxation at […]

If you are preparing Khichdi for 2 people or 25 people, what is the difference? The difference is of quantity, you need more of the ingredients in preparing khichdi for 25 people. But do they change? If we add different ingredients which are not necessarily required, will it enhance the taste? NO. Similarly, if your […]

Whether one should opt for the old or new tax regime depends upon the extent of tax benefits claimed in the form of deductions. Practically speaking, basic deductions like 80 C and 80D are inevitably claimed by majority under the old regime. Then many investors also invest in NPS to claim additional Rs.50,000 under subsection […]

Bank locker rules have changed from January 1,2023. This mandate was part of RBI’s directive about bank locker operations and to protect the interest of the customers. Under the new rules, customers, both existing and new, are required to enter into an agreement on a stamp duty paper with the bank. A duplicate copy of […]