DEV Community: Shivam

Guide for selecting the optimum sum Insured for Health Insurance

Shivam — Wed, 17 Jun 2026 11:50:36 +0000

The ever-increasing costs of medical treatments have made health insurance a necessity today. Moreover, you want the best possible treatment you can afford. The health inflation of India has increased to 8.4% in May and June 2021, thanks to the pandemic. Thus, it becomes inevitable to opt for the optimal insurance coverage that is needed for you and your family.

The dangers of being Under-Insured

Being under-insured means that your health insurance coverage is not enough to cover your medical expenses or it does not cover the treatments you may require.

This happens because:

People don’t want to pay high insurance premiums as they consider it an unnecessary burden.
The young and reasonably healthy individuals often opt for the lowest sum insured with the barest coverage and low premiums.
People may not account for their family medical history and unknowingly miscalculate future expenses.
People also end up taking a bare-bones health insurance policy just for the tax benefits.

The price of being Over-Insured

On the other hand, being over-insured depletes your hard-earned money unnecessarily. Here you choose a sum insured that is more than what is required by you and your family members. Although this is a rarity, you would end up paying very high premiums and wasting money this way.

So, the debate continues on what is the “ideal sum insured” that is needed for your health insurance coverage. To ease this concern, you need to first understand the factors to choose from while opting for optimal health insurance coverage.

How to choose the optimum sum Insured?

To choose the optimum sum insured, account for the following factors:

1. Age:
Take your age into account. When you are younger and in good health, you can take a lower sum insured and gradually increase it as the years go on.

Traditional wisdom believes that a sum insured of about Rs 5-10 lakhs may be enough to sustain your medical costs when you are in your 20s and 30s. When you hit the age of 40, you should take a higher sum insured to cover rising medical expenses.

But in post covid, the scenario is slightly different. There has been a significant rise in the demand for health insurance upto 71% in the post-covid world as against only 10% pre-covid.

Tip: However, it is easiest to opt for a high coverage at a younger age because the premium is low, you are relatively healthier and so chances of pre-existing ailments are low and you would surpass all waiting periods before you might actually need to utilise the plan for a claim!

2. Lifestage and number of dependents:
If you are single, your requirement would be lower than if you were married. It also depends on the total number of dependents you have.

This is especially true for opting for a family floater health insurance plan as each member’s needs and future medical expenses need to be considered while deriving the optimal health insurance coverage.

3. Premium paying capacity:
You need to be able to pay the premiums of your chosen sum insured. For this reason, your income plays a vital role in your optimum sum insured. Experts often advise that your sum insured premiums should not exceed 2% of your annual income. So if your annual income is Rs 10 lakh, then your premiums should not be over Rs 20,000.

However, if your income rises, you should ideally increase your health insurance coverage as well, as your lifestyle and comfort expenses would also tend to rise!

4. Medical condition:
Account for any current ailments and the overall condition of your health. If you have an existing ailment such as diabetes, that will require frequent medication or doctor’s consultations, so you will require more coverage than someone who does not have this ailment.

Tip: You also need to weigh your family’s medical history. You need to keep in mind any genetic predispositions you could have. Some people, for example, may have cardiac issues or some types of cancer that run in their families.

For example, if you have a history of heart ailments in your family, you are at a higher risk and should thereby opt for higher coverage than others.

5. Lifestyle:
Keep your current lifestyle and employment in mind. Some people have lifestyles that may cause health issues at later stages. For example, you may be a chain smoker or you may drink every day. These can lead to concerning health issues down the road.

You may also work at a high-stress and high-intensity job that does not allow you much time to exercise and relax. Lifestyle diseases have become part and parcel of the modern world. It would be remiss of you to not take that into account when choosing your sum insured.

Also, you need to consider the average spend of your family’s hospitalisation and the type of room preference. This would play a role in selecting your health insurance coverage.

Thumb Rule for calculating the Optimal Health Insurance coverage-

In developed economies, people have health insurance coverage equal to 7 to 10 times their annualised income. However, the case is different in a developing economy where the cost of living is also comparatively low.

There is a simple thumb rule for calculating the optimal health insurance coverage, which is:
Health Insurance coverage = 50% of your Annual Income + 3 years’ hospitalisation expenses

For example, your Annual Income is Rs 20 lakhs and you have spent about Rs 5 lakhs for hospitalisation in the last 3 years, then your health insurance requirement would be Rs 10 + 5 = Rs 15 lakhs only.

However, this is just an estimate and it may differ from case to case.

Summing up:

Health insurance may feel like a burden but it plays a major role in protecting our loved ones and our finances when hit by medical crises. Don’t forget to factor in inflation every time you opt to renew your health insurance. Choose the optimum sum insured and comprehensive coverage for yourself and your family members.

Meaning and Benefits of Sip (Systematic Investment Plan)

Shivam — Wed, 17 Jun 2026 09:49:09 +0000

It’s everyone’s desire to have the good things in life, buying an exotic car, a beautiful home, and an exclusive vacation to someplace around the world. Achieving these desires will require doing something extra. Investing through a Systematic Investment Plan (SIP) in mutual funds is a viable option to go forward with. So, let's have a look at what SIP means, how it functions, and be of help to you in achieving goals.

What exactly is SIP?

A systematic investment plan is a system of investment that can be used in order to save money while also reducing the risk of investing. The system is often used by investors in order to reduce the chance of making bad investment decisions. These mutual funds can be used to invest in shares, bonds, and a variety of other financial instruments.

How does SIP function?

A systematic Investment Plan or SIP is a way of investing in stocks. The investor makes it a habit to invest a fixed amount of money at regular intervals and in the same proportion to various stocks. This helps the investor diversify among various stocks with less risk as compared to putting all their money into one stock. The maths behind the Systematic Investment Plan is simple. The investor gets to decide how much he wants to put in his investment every month and how long he wants to save. The systematic investment plan does not just depend on market timing but works with all time frames to reduce risks of volatility and maximize returns. It can be beneficial for those who are passively invested in their investments.

Investing in a SIP has a number of advantages

1. Compounding power:
Compounding is an investment concept in which money earned on the investment is reinvested and thus also earns interest. Compound interest can be thought of as having multiple rates. Compound interest is the root of wealth for most people, because it enables investors to earn interest on their money over time, rather than only when they take it out of the account. To understand why compounding makes such a big difference, consider how much an investor would need to earn just by saving some amount per day in order to become a millionaire at age sixty-five.

2. Low Initial Investment:
With just Rs. 500 per month, you can start investing in mutual funds using the systematic investment plan (SIP). This can be an affordable way to invest each month without hurting your monthly expenses. Over time as your income increases your investment can also be increased through the step up feature. Mutual fund houses allow investors to top up their SIPs regularly. So, even if you start with Rs. 500 or Rs. 1,000 each month, you can increase your investment as time goes on.

3. The average Cost of a Rupee:
Rupee cost averaging is when you purchase more units of a mutual fund when the Net Asset Value (NAV) is low and fewer units when the NAV is high. This takes your purchase costs and averages them out over the course of the investment period. You don’t need to worry about market timing when you invest through a SIP.

4. Convenience:
SIP can be a convenient mode of investing. You may not have the time for extensive market research and analysis to adjust or balance your portfolio. So, once you have decided a good fund, you can give standing instructions to the bank and let the SIP take care of your monthly investments for you.

How to Start SIP Investment

1. Complete your KYC
Make sure you complete your KYC documentation with your fund house before you start investing. Identity proof, address proof and photograph are the usual documents required. These days, e-KYC is being accepted by most AMC's. The process can be completed online without having to visit the AMC office.

2. Set your investment goals
Before investing in SIPs, you should first figure out what you want to achieve with your money. Every mutual fund is designed to help you reach a specific goal, so it's important to identify yours. Once you know your goals, you can look for funds that will help you achieve them.

3. Choose the SIP
Select a fund and fill in the parameters for a Systematic Investment Plan (SIP). This includes information such as:

The length of your investment
Frequency of investments (monthly, quarterly, semi-annually, etc.)
The amount you want to invest
Fill in your details as regards to your goals and financial posture.

Where to Invest: SIP or Lump Sum

There are two ways mutual funds can be acquired: it’s either as a SIP or as a lump amount. A lump sum investment entails putting aside a specific amount of money at once for a mutual.

Which is better? Here are some points to consider:

1. Amount of money
SIPs are a good investment option if you have a limited amount of money to invest. You can commence your investment with as low as Rs. 500 each month. It doesn’t matter whether you have Rs. 500 or Rs. 1,000 to invest each month – you can get started right away!

2. Experience
Lump sum investments are when you invest all of your money at once. You have to be careful when you do this, because you could make a lot of money if the market goes up, but you could also lose a lot if it takes a downturn. This is a good strategy for experienced investors who have a lot of money to spare, but if you're new to investing, it's best to stick with instalments over time instead. That way, you minimise your risk and still get to grow your money.

3. Investment disciple
Investment discipline is key to success in the long run. When you decide to invest a fixed amount of money each month, you can make sure that your investment progresses steadily and fulfils your investment goals. It may seem like a slow process, but when you look back after a while, you'll be glad you invested steadily over time. SIP investing can help you build a large corpus slowly and steadily.

4. Customize SIP
Salary earners prefer their SIP investment to be conducted. In this case, salary earners can fulfill their commitment as they receive their paychecks monthly.

5. Frequency of SIP
You can start your SIP at any time and at any interval (weekly, fortnightly, quarterly, or semi- annual) which implies. You can also embark on a futuristic investment without setting out a specific time of completion.

Perpetual SIP: You can simply move a fixed amount into the mutual fund on a regular basis for as long as you desire using this option. Instruct your bank to disburse your fund on a specific day towards your investment and it will be done seamlessly.
Step-up SIP: If you started your SIP investment with Rs.1000 monthly and you desire an increase of the same amount each year, you’ll first invest monthly, Rs.1000 and the second year Rs.2000.

Everything you need to know about Fixed Deposit in India

Shivam — Wed, 17 Jun 2026 05:55:05 +0000

If you're looking to invest some of your money in a Fixed Deposit in India but aren't sure how this works or what all the details are, don't worry. You're not alone. This article is a complete guide to Fixed Deposits in India for those who are curious about them or want to learn more about them. The intention of this article is only to educate you about how FDs work and give you a starting point so that you can do more research based on your own needs.

What exactly are Fixed Deposits?

A Fixed Deposit is a way of saving money where the investor agrees to keep his/her funds invested in the bank for a fixed period of time. During this period, the interest rate that the bank offers is generally higher than that of a regular savings account.

What are the types of Fixed Deposits?

There are two types of Fixed Deposits available in the Indian market:

1. Cumulative Fixed Deposit Schemes
Investors of a Cumulative FD scheme benefit from compounding. On maturity, you will receive both the collected interest as well as the principal amount. The lender reinvests the interest money instead of delivering it to you on a regular basis. Thus, you will be earning interest on interest using it. For people who do not require regular dividends from their fixed deposit investments, a cumulative FD scheme is a viable option.

2. Non-Cumulative Fixed Deposit Schemes
Non-cumulative Fixed Deposit schemes are recurring income plans that allow the investor to choose the time range for interest payments. Rather than reinvesting the accumulated interest amount, the lender delivers it to you in this case. The overall interest earned is much lower than Cumulative Fixed Deposits. This non-cumulative FD is a viable alternative for older persons and others who want to earn regular cash returns on their FD investment.

Pros and Cons of Fixed Deposit-

Pros:

Fixed Deposit is a secured way of investing with minimum risk.
A Fixed Deposit comes you a guaranteed income that is not affected by market fluctuations.
A Fixed Deposit has a set duration and allows for rollover.
You can utilize it as security in need and receive up to a limit of 90% of your investment as a cash advance.
You can also select the frequency of interest payments.

Cons:

Fixed Deposit is a type of debt instrument.Thus, less expected returns.
Earned Interest is taxable income.
Premature withdrawal incurs a fee from the lenders.

Taxable Income from Fixed Deposit in India

While there is a lot of excitement and joy in investing, it is also important to keep track of the tax implications before making any investment. The interest received from Fixed Deposit in India is taxable.

Here is a breakdown of the Fixed Deposit income tax bracket.

FDs for Indian Residents: 10% Tax
FDs for NROs: 30% Tax + applicable surcharges & cess

However as an Indian Resident FD holder, TDS of 20% will be levied if you do not give PAN information. If your entire income from interest falls below the 10% tax bracket, you can claim back the deducted TDS. You can also provide Form 15G or 15H to your lender to declare that you do not fall into the tax bracket and no TDS needs to be deducted.

Conclusion

I hope this guide has helped in providing you with some of the basic information and tools required to invest your hard-earned money wisely. With foresight, planning, and a little bit of help along the way, you should be able to make informed decisions about how you store your money and what kind of interest rates you can expect to receive on your FD investments. To help you make further educated decisions, you can check FD Interest Rate Calculator Online and Fixed Deposit Interest Rates 2022 for free.

Benefits of Health Insurance

Shivam — Tue, 16 Jun 2026 12:23:14 +0000

A Health Insurance policy has become a quintessential need in today’s era, especially after the pandemic showed that emergencies can be unpredictable. Even if you are healthy, injuries and infections are unforeseen and can wreak a financial havoc in the absence of a health insurance plan.
That is why having a health plan has become the need of the hour.

A Health Insurance Plan has the following benefits-

1. Coverage against expensive Medical Costs

Medical treatments have become expensive. A simple hospitalisation can incur a considerable amount of money. If the illness or injury is severe, the expenses multiply exponentially. Furthermore, medical inflation is rising steadily. Affording the increasing medical costs is, thus, a financial nightmare. Health insurance plans cover the cost of hospitalisation and medical treatments.

Furthermore, you can avail of coverage for–

Ambulance costs
Day-care treatments
Organ donor treatments
Domiciliary treatments
AYUSH treatments
Free health check-ups
Sum insured restoration
Maternity coverage, etc.

These coverage benefits protect your pockets in a medical emergency by covering the medical bills.

2. Coverage for the Whole Family

Family floater health insurance plans allow coverage for all the members of your family. You can insure your spouse, children (both biological and adopted), dependent parents and parents-in-law. Moreover, many plans extend coverage for grandparents, uncles, aunts, grandchildren, nephews and nieces too. Thus, you can insure all your family members so that if any member faces a medical emergency, you would be spared the financial burden of the treatments.

3. Lifelong Renewability

You can renew health insurance plans lifelong provided you renew them on time. There is no cover ceasing age allowing you to enjoy the coverage even in the golden years of your life when the chances of illnesses and injuries increase considerably.

4. Tax Benefits on the Premiums

The premiums payable for health insurance plans also earn tax benefits and helps in lowering your tax liability. You can claim a deduction of up to Rs.25,000 on the premium paid for self, spouse and children. If you are a senior citizen, i.e., aged 60 years and above, you enjoy a higher limit of deduction of Rs.50,000.Furthermore, if you insure your parents, you can avail of an additional deduction of up to Rs.25,000. This limit also extends to Rs.50,000 if your parents are senior citizens Thus, with health insurance plans, you can lower your taxable income by a maximum of Rs.1 lakh. If you are in the highest tax bracket of 30%, this reduction in taxable income converts to a tax saving of Rs.30,000 (30% of Rs.1 lakh).Thus, health insurance plans not only help cover your medical costs, they help in tax planning too.

5. Financial Security

Lastly, health insurance plans provide a sense of financial security in the face of medical emergencies. When you know that unexpected medical costs would be handled by the health insurance plan, you can be financially secured. You can plan for your goals without fearing that a medical emergency might wipe out your savings. An optimal health insurance plan keeps your financial assets intact and helps you plan your finances effectively.

With these benefits, a health insurance plan becomes a must. Moreover, modern-day health plans have become innovative and offer coverage for a wide range of treatments and illnesses like air ambulance cover, cover for HIV/AIDS, bariatric treatments cover, OPD expenses cover, etc. So, opt for a comprehensive health insurance plan that has all the coverage benefits that you need. Choose an optimal sum insured so that your medical expenses are shouldered by the health plan while you can take care of your other financial goals.

All you need to know about ELSS Funds

Shivam — Tue, 16 Jun 2026 10:45:22 +0000

Investors invest in mutual funds either to accumulate wealth, save taxes, or/and earn regular income. While you have multiple investment options but most of them don’t help in saving taxes that offer higher returns. So, if you go for a higher return, you may have to give up tax savings and vice versa. However, ELSS Funds are those funds that help in both tax savings and higher return generation.

This article will help you Invest in ELSS Funds in 2022 by providing all the details you need to know about ELSS funds.

What are ELSS funds?

ELSS stands for Equity-linked Savings Schemes which is one of a kind mutual fund scheme that invests 65% of its asset under management in equity and equity-related instruments but is eligible for tax deductions.

When you invest in equity directly or via mutual funds, the amount you invest doesn’t help you save taxes. Moreover, the returns you generate are also taxed by the government. However, with ELSS you can save taxes on the amount you invest in it.

Features of ELSS Funds

1. Tax benefit: Firstly, ELSS can help you get a tax deduction of up to Rs. 1.5 lakhs on your gross income as per Section 80C of the IT Act. However, you need to keep in mind, that the returns on ELSS are taxable. Any return you generate is taxable as per the capital gain tax regime. The returns above Rs. 1 lakh are taxed as per prevailing long-term capital gain taxes at the rate of 10%.

2. Lock-in-period: There is a 3-year lock-in period for ELSS. This means you cannot withdraw or redeem the fund within 3 years from the date of starting the fund in case of lump-sum investment. There is no option for premature withdrawal even, so no question arises of paying any penalty for premature withdrawal as well. After the completion of 3 years, you can withdraw or continue the fund as per your choice or investment plan.

3. Returns can be high but not guaranteed: ELSS provide above-average returns as they invest in equity instruments, however, there is no guaranteed return. As for any equity-linked investment, the returns can be high enough but without any guarantee, the same goes for ELSS as well. However, no other equity investment offers you tax deductions.

4. SIP options: There is another feature of ELSS funds is that you can invest in them via SIP. You can invest Rs. 1.5 lakhs in a year but paying Rs. 12500 per month. Here is one thing you need to keep in mind every SIP investment you make, for example, Rs. 12500 per month, will be locked for 3 years. So, if you invest Rs. 12500 in July 2022, it will be locked in up to July 2025. This thing you need to keep in mind while investing in ELSS.

Things to know about ELSS funds

If you are thinking to invest In Mutual Fund ELSS Online, then you need to evaluate the following before investing –
If you are not willing to take a higher risk, then you can opt for a SIP investment in ELSS. Though this will keep your funds locked in for years the risk will be lower than a lump-sum investment.
If you have a time horizon of more than 5 years, then the ELSS fund can offer you higher returns than other equity funds as there is a tax benefit you can avail yourself of with ELSS. Moreover, investing in equity funds requires an investment horizon of 5 years or more to get the actual benefit of equity funds. If you are looking for a short-term investment, then ELSS may not be the right option for you. The reason is market volatility, with longer tenure, market risks can be mitigated and returns can be higher.
ELSS invests in equity and thus, you need to have a risk appetite of an equity investor. You cannot expect to earn a certain return or income from ELSS funds. There is no guarantee of income however, with long-term investments, these funds have always outperformed other investment options.

Conclusion

So, Investors looking for tax savings with above-average returns, and a good risk appetite, can opt for ELSS as this is the only mutual fund that offers both benefits. You can easily invest in these funds using any online Mutual Fund Investment platform.

How to calculate Capital Gains for your Equity and Debt Mutual Funds?

Shivam — Tue, 16 Jun 2026 07:38:41 +0000

Mutual funds are the most popular investment vehicles today. As you can invest in different asset classes through mutual fund schemes, there is a fund for every type of investor. Mutual funds are easily accessible through online platforms, financial product distributors, and mutual fund distributor services. However, it is important to understand how a mutual fund works and what are the complexities involved to make an effective investment decision.

These are broadly categorized into three types based on the asset classes they invest in – equity mutual funds, debt mutual funds, and hybrid mutual funds. When it comes to income tax perspective, hybrid funds are taxed as either debt-oriented funds or as equity-oriented funds depending on the percentage of allocation into the asset classes. Each mutual fund scheme that you invest in can generate two types of income –dividends and capital gains at the time of sale.

What is Dividend Income?

Dividend income is paid by schemes that invest in stocks of dividend-paying companies (that distribute the profit in the form of dividends). Dividends received were tax-free in the hands of the investor prior to 31st March 2020. However, with the amendments in The Finance Act, 2020 there is a TDS (tax deducted at source) of 10% applicable on the dividend income that exceeds INR 5,000.

What is Capital Gain? How it is calculated?

Capital gain is the profit generated from the sale of mutual funds. The method of calculation of capital gains is the same for all mutual fund schemes i.e., for both equity and debt mutual funds. However, the tax implication is different. Let’s understand more about capital gains.

Capital gains are categorized as two types based on the holding period of the investment: short-term capital gains and long-term capital gains.

Short-term Capital Gains: In an equity mutual fund, capital gains generated by an investment that is held for less than 12 months are referred to as short-term capital gains. In the case of debt mutual funds, short-term capital gains are gains generated by investments held for less than 36 months.
Long-term Capital Gains: In an equity mutual fund capital gains generated by an investment that is held for more than 12 months are referred to as long-term capital gains. In the case of debt mutual funds, long-term capital gains are gains generated by investments held for more than 36 months.

Capital gains on mutual funds can be calculated as below:

Capital gains = Fund value at the time of sale total cost of sale – total cost of acquisition of the fund

How Capital Gains are taxed?

Tax implications are different for capital gains from equity mutual funds and debt mutual funds. Let’s take a look at the tax treatment of capital gains of equity and mutual funds.

1. Short-term Capital Gains

Equity Mutual Funds: Taxed at 15% + cess + surcharge.
Debt Mutual Funds: Taxed as per individual investor’s income tax slab rate.

2. Long-term Capital Gains

Equity Mutual Funds: Gains above INR 1 lakh a year are taxed at 10% without indexation benefit + cess + surcharge. Tax exemption is provided if the gain is within INR 1 lakh a year.
Debt Mutual Funds: Taxed at 20% post indexation + cess + surcharge.

The amount of capital gain that a scheme can generate can also be impacted by the mutual fund plans that you choose. Every mutual fund scheme is offered in two plans – Direct and Regular. Direct mutual fund schemes can be directly bought through fund houses or even through direct mutual fund investment apps conveniently as these schemes do not involve any commission. On the other hand, regular mutual fund schemes are available for investment through financial products distributors and mutual fund distributor services. For these services, mutual fund distributor services and financial products distributors are paid a commission. Hence, you can see the difference in the total expense ratio and net asset value of both direct and regular plans. These changes in expenses and net asset value can definitely have an impact on the capital gains and the returns that you earn from mutual fund schemes, specifically for the long term.

Choose the right type of funds and the plans suitable for your investment goals to maximize your wealth.

How to Process a Claim for Health Insurance?

Shivam — Tue, 16 Jun 2026 05:54:32 +0000

If you're looking to buy health insurance, want to claim something, or learn more about the process, you should read this article. It's a complete guide to the health insurance claim settlement process for anyone curious about them or wanting to learn more about them.

Cashless Health Insurance Claim

A cashless facility is an emergency insurance plan that will help you avail of cashless treatment in a network of hospitals across India. Not having the option to pay out-of-pocket for emergency treatment in an empanelled hospital will give you peace of mind.

A. Planned Treatment

Here's how to file a cashless claim for planned treatment:

At least a week before the scheduled treatment date, the policyholder must submit the claim application form to their insurer via the appropriate option - online or offline.
The insurer will notify the hospital where you will be receiving treatment about your cashless claim procedure.
After the hospital accepts the cashless claim procedure, the policyholder will receive a confirmation mail or SMS. This email or text message has a specific expiration date, and the policyholder must complete his or her treatment within that time frame.
At the time of admission, the policyholder must submit or display the confirmation mail or text to the hospital.
Following therapy, the insurer will cover the treatment costs.

B. Emergency Treatment

Here's how to file a cashless claim for emergency treatment:

The policyholder must notify the insurer as soon as possible after being admitted to the hospital. Most insurance companies provide a 24-hour window for you to contact them.
The policyholder will be sent a cashless claim application form, which must be filled out completely and submitted.
The claim will be approved by the insurance, and the hospital will be notified.
Following therapy, the insurer will cover the treatment costs.
If the claim is denied, the insured will be notified within 24 hours of the company's notification.

Health Insurance Reimbursement Claim

If the policyholder chooses to visit a non-empanelled treatment facility, a health insurance reimbursement claim might be filed. In this instance, the cashless health insurance claim option is unavailable. As a result, the insured must first pay all hospital bills as well as other expenses involved with hospitalisation and treatment before claiming compensation. Here's how to file a reimbursement claim:

The policyholder must check the bill information after treatment.
Within 24 hours of discharge, the bill and associated treatment records must be sent to the insurance company.
The bill and documentation will be reviewed and authorised by the insurance company.
If the company has a question or the claim is denied, the policyholder will be contacted.
Once the insurance company approves the claim, the bill amount will be refunded.

Required Documentation

Whether you are going for Health Insurance Reimbursement Claim or Cashless Health Insurance Claim, your insurance provider will need some documented proof of the treatment. Here’s what you need to provide them to facilitate your health insurance claim settlement process.

Health Card
Filled Claim Application Form
Medical Form or Certificate signed by the doctor
Pharmacy Cash Memos
Hospital Prescriptions
Bills and Receipts
Discharge Summary
Report of Investigation
FIR or MLC (in case of an accident injury)

Conclusion

Finally, the health insurance claim settlement process is going to be different for everyone. It depends on your insurer and the type of claim you are making. There are no set rules that every company is going to follow. However, every company will have a general procedure that they follow that you can use as a guideline when filing a claim, or if you want to track the progress of your claim.

Top 5 Things to Check While Choosing the Right FD for Yourself

Shivam — Sat, 13 Jun 2026 12:07:50 +0000

Successful financial planning requires you to invest a portion of your investment portfolio into safe and low-risk investment options for multiple reasons such as to balance out the risk, quick access to cash, and to easily sail through difficult times. Fixed deposit is one such safe investment option that is most popular among investors of all ages owing to its lower risk and guaranteed returns. Fixed deposits are offered by banks and Non-Banking Financial Companies (NBFCs). Interest rates vary depending on the tenure and also from one financial institution to another.

Fixed deposits are simple and easy to invest in with an easy renewable facility. As several financial institutions offer fixed deposits with good features at an attractive rate of interest, it is important to consider various factors while choosing the right FD that can match your investment strategy.

Here are the top five important things to check while choosing the right FD for yourself:

Comparison is the key to choosing the right FD for yourself. You can compare the numerous fixed deposit plans offered by various financial institutions by checking the following factors:

1 - Rate of interest

The fixed deposit interest rate depends on the tenure you choose, banks or the financial institution you opt for, and your age. Even for the lump sum, high-value deposits, fixed deposit interest rates may differ. Fixed deposit interest rates are decided by the institution based on the guidelines issued by the Reserve Bank of India within the limit prescribed in it. You can compare the fixed deposit interest rates of the various institution for the tenure chosen while choosing the right FD. You can even calculate the difference in interest amount using the fixed deposit calculator available online. All you need to do is log on to the online fixed deposit calculator and input all the details such as the amount of investment, rate of interest (in %), interest frequency, fixed deposit tenure, and your senior citizen status (yes/no) to calculate the interest amount and the maturity amount on the particular fixed deposit. This tool is extremely valuable that helps you in decision-making.

2 - FD tenure

Before you invest in a fixed deposit, you need to carefully decide the duration depending on your requirement. You can invest in FD for short-term goals that are a few months or a year away and you can also invest for longer durations like 5 years to 10 years. However, deciding the tenure should be based on the time duration that you have for reaching your financial goals. Tenure can be based on the purpose of your investment.

3 - The credibility of the institution

Irrespective of the bank/NBFC you choose, a fixed deposit is a relatively safe investment option that also comes insured at an amount of INR 5 lakhs. However, it is essential to do a background check while making any investment decision. You can check the credibility of the bank or the financial institution you are choosing by going through the credit ratings given by the credit agencies like CRISIL and ICRA based on various criteria. This gives you an outlook of the bank’s stability and credibility. Opting for institutions with higher ratings can assure you peace of mind while you enjoy guaranteed and stable returns.

4 - Withdrawal Norms

While you are investing in a fixed deposit, it is important to know the withdrawal norms. There are some institutions that charge penalties on pre-mature withdrawals. Some banks offer a flexible fixed deposit that you can withdraw anytime without penalty. It is important to compare the fixed deposits based on the amount or percentage of penalty charged. To be a wise investor, you need to be aware of minute things and conditions related to the investment.

5 - Cumulative Vs non-cumulative

You can choose to invest in either cumulative or non-cumulative fixed deposits. Cumulative fixed deposits are the fixed deposits in which the interest earned on the investment is reinvested and the interest gets compounded. On the other hand, non-cumulative fixed deposits pay out the interest at a chosen frequency and the interest paid out would be based on the simple interest formula. You can calculate the amount of interest in both cases using a fixed deposit calculator for making better decisions.

6 - Loan facility

Many banks and NBFCs offer a fixed deposit with the loan facility. In case you need to meet an urgent liquidity requirement, you can opt for this facility of availing loan against FD, which is quite simple and convenient. However, you need to be aware of the terms and conditions that are applicable. You can compare and choose the FD when you know the terms applicable.

Choose the right fixed deposit that matches your need and financial goal!

What are Contra Funds? And how to time their Entry and Exit

Shivam — Sat, 13 Jun 2026 08:41:08 +0000

When is a good time to invest in equity mutual fund is one of the most often discussed topics? While solutions to this issue are easily accessible, a less often addressed topic is when is a good time to leave your Mutual Fund assets. This subject is often raised when markets achieve all-time highs or experience a severe fall. Contra funds invest in equities and sectors unconventionally. Read on to learn what are contra funds and when to enter & exit contra fund.

What exactly is a Contra Fund?

The contrarian method, as the name implies, includes making investing choices in opposition to the broader market is known as “Contra Fund”. For example, while everyone else is negative on markets, the contrarian will become optimistic, and vice versa. Similarly, counter funds attempt to profit by going against the market herd by seizing investing opportunities that arise when the market reverts as predicted.

Contra mutual funds primarily invest in fundamentally sound firms underappreciated by most investors and trade at a discount. They believe in holding such stocks for a long time until the herd prefers them, increasing the share price. They do not, however, sell these out-of-favour stocks just because they have become appealing. Instead, they wait until values become too high and unreasonable, company fundamentals degrade, or an excellent investment opportunity presents itself. These funds are not influenced by market capitalisation and invest across the board.

How Does Investing in Contra Funds Benefit an Investor?

A contra fund manager's options for such counter equities may be restricted. On the other hand, investors perceive certain significant advantages to investing in such counter funds.

Contra funds take a contrarian stance, and if effectively calibrated, such ideas may provide investors with above-market returns. Of course, there is always danger, but the rewards may be worth it.
Contra funds invest in firms that most analysts and investors miss. As a result, the research emphasis is narrow, and the influence of institutional transactions on this counter is constrained.
Contra funds often acquire equities when they are underperforming. Hence the price is typically low in such times. As a result, investors in Contra mutual funds benefit indirectly from attractive discounts on counter equities.
It has been noticed that during market crashes or sustained market declines, high beta equities tend to suffer the most. In such instances, counter funds tend to outperform other types of funds in value retention.
Most contrarian stocks have a lot of pent-up potentials, but this value isn't represented in the stock price because of its apparent issues. When these concerns are resolved, the stock usually rises as it tries to catch up.

When should you enter contra funds?

A Contra Fund does not follow the herd or place bets on current market favourites. It invests in undervalued stocks. As a result, investors with decent risk tolerance and a time horizon of more than 5 years might consider investing in counter funds. When investing in contra funds keep the following considerations in mind.

1. Global reach
With globalization affecting every part of our lives, multinational firms' footprints may be seen in our daily lives via brands such as Google, Amazon, IBM, and Reebok, among others. Most of these businesses are located in the United States, yet they have a worldwide presence.

2. When markets do not move in lockstep
The fact that global markets are not directly connected is best appreciated by examining the performance of various market indexes across time. This is evident from the fact that domestic fund schemes seldom maintain top performance over market cycles and time. The same is true for the fund category since the average performance of various fund types varies with market cycles.

3. Low correlation
A poor investment correlation indicates that various asset classes have not fared similarly. It is advantageous when investing across regions because as investments in one location improve, returns on other investments drop less or even rise.

When should you exit contra funds?

Even within your target period, there may be occasions when you must quit investments. In such cases, leaving the investment is recommended only when:

1. Fund manager replacement: Before investing in a fund, fund managers' experience and skills are assessed. The manager's ability to handle the funds under severe events accounts for most of the fund's success. As a result, a change in fund management may significantly influence fund performance. There is no reason to be concerned as long as the fund's investing aim remains unchanged. Keep a watch on his performance to evaluate whether his investing selections produce positive results.

2. Changes to the fund's strategy: Investors only invest in funds if their investment objectives are compatible with the funds. As a result, any change in the fund's strategy implies that you should reevaluate your investment in the fund.

3. The fund's underperformance: Mutual funds are market-linked securities, which means they are volatile. Any changes in the stock market will have an impact on mutual fund performance. Short-term market swings might be deceiving. And basing your choice on this is not a smart idea. Consistent underperformance for more than 18 months is a solid sign that you should consider withdrawing from the fund to avoid additional losses.

If not for the reasons stated above, it is always recommended to retain your Contra Fund for extended periods. Always have an exit strategy for your assets available, in addition to an investing plan. When entering or departing the market at the right moment, it's tough to strike the bullseye, but having a strategy will always come in handy.

Is buying shares when the Market is at an all-time low a good Investment?

Shivam — Sat, 13 Jun 2026 06:14:32 +0000

Whether you are a short-term investor, trader, or long-term investor, one question that must have crossed your mind, especially during the initial days is what is the right time to invest In Stock Market, right? This is a thing that every investor stumbles upon at least once in their investing journey, actually a lot of time as timing the market is quite difficult. Experts and top investors say it is not about timing the market but the time you put in the market, which is quite true.

With the global markets having a blood bath due to geopolitical issues and other global cues, Indian Rupee is at an all-time low, do you think this is the right time to invest in the Stock Market? Let’s find out.

Long-term investors-

If you are a long-term investor, then even if the market hits the rock bottom, you should have to worry much. The reason being the more time you stay invested in the market, your portfolio returns will be less affected by the volatility. If the market is crashing today, you know it will again skyrocket in the near future.

Instead of panicking when the markets are crashing and hitting an all-time low, as a long-term investor what you can do are mentioned below –

1 - When the markets are at their lowest, it offers many gems in the market : Companies that have huge potential to outperform in the next five to ten years at cheap prices. This is the best time to buy some of them.

Tip: Analize your portfolio, risk profile, and return expectation, and find out which of such stocks can benefit you in the long run. Moreover, many highly demanded stocks also fall during the sluggish market run, which is not quite affordable to buy in a bull market. You can buy them when the prices are low.

2 - Do not stop your Stock Market Investment via SIPs : Often retail investors who invest via SIP stop their SIP and quit the market when the market hits the lowest, but you need to understand that SIPs don’t get affected by all-time-low in the market. Rather, during this phase, you can buy more units of the fund as the prices of the stocks are low. Then comes the long-term factor as well, usually, people invest in mutual funds via SIPs for a minimum of 3-5 years.

Tip: Markets are unpredictable and volatile and that is why systematic purchase works best in the long run. Systematic stock market investment helps in rupee cost averaging which should continue, especially when the market is low. If you are not 100% confident of stock picking during volatile markers, look at mutual fund investing to increase your equity through a trustworthy mutual fund distributor.

3 - Review your current Asset Allocation and rebalance if needed: Ideally, you need to rebalance your portfolio annually ; but in times when the stock market is at an all-time low, there is all the more reason to balance your investments according to your ideal asset allocation. If you have not balanced your portfolio for a long time and have a lopsided asset allocation, it could affect you in the long run, especially during a market slowdown.

Tip: Rebalancing your portfolio is necessary from time to time according to your risk appetite and ideal asset allocation.

4 - Consider macro-economic factors : The next thing is evaluating the macro factors such as growth in FDI, sectors which are booming, collection of taxes, and others. These will suggest whether the sharp decline in the market is momentary or the market is going to enter a bear phase.

Tip: For instance, even though the global markets are sluggish, so is the Indian stock market at this given point in time, but FDIs rising, and so is the collection of GST in the economy. This indicates the slow-down in the market will probably going to be short-lived.

Short-term investors-

For short-term investors, an all-time low in the market can be dangerous. It can wipe away all the profits they have earned. However, buying shares during this phase can help them gain potential profits in the near future but for that, picking the right stock is crucial.

Final thoughts:

To conclude, long-term investors should reassess their portfolio, look for potential stocks in the market which are selling cheap and invest in them during a market slowdown and stay invested if the macroeconomic factors are favourable. While for short-term investors, it can be an opportunity as well to buy stocks at cheap prices and sell them when the prices start rising. However, both types of traders must evaluate macroeconomic factors to understand whether it is just a slowdown or a bear entering the market.

Bonds – A must-have product in a healthy investment portfolio

Shivam — Fri, 12 Jun 2026 12:40:26 +0000

Do you have a healthy investment portfolio? Are you taking the right amount of risk to generate your desired returns or you are yet to be there? If these are the question that you ask yourself, you need to revisit your portfolio’s asset allocation and evaluate the risk and return ratio once again. Having a healthy investment portfolio means striking the right balance between the risk that you can take and the return you are expecting.

While some asset classes may offer higher returns like equities, you also need fixed-income assets to balance the risk. One such fixed-income instrument is a Bond which you can include in your investment portfolio to minimize the risk and optimize the return.

Global bond markets were approximately at $128.3 trillion (as of August 2020). It is one of the biggest markets when it comes to debt investments. If you want to include bonds in your portfolio, then you have innumerable options to do so. This article will help you understand how bonds help you build a healthy portfolio of assets.

What is a bond?

Bonds are debt investment products that are issued by a government or corporate houses to raise capital. The person who buys the bond lends money to the issuer, against which he receives an interest (coupon) and the principal is redeemed upon maturity. There are broadly two types of bonds – government bonds where the government raises capital and corporate bonds where corporate houses raise capital.

How does a bond work?

Let’s take an example to understand how a bond works. Suppose you are buying a government bond (GOI bond) that has been issued at Rs. 1000 per bond. This Rs. 1000 is the face value of the bond. GOI is offering a 4% interest rate on this bond which will be paid annually. The maturity of the bond is fixed at 5 years.

So, for the five years, you will receive the interest at the rate of 4% on the face value of the bond, every year, and upon maturity, you will receive the Rs. 1000 as well.

Coupon received every year is = 4%*1000 = Rs. 40

The interest rate or coupon on the bond doesn’t get affected by the market interest rate. Whether the repo rate increase or decreases, the 4% coupon on this bond will be fixed. Another thing to keep in mind is that even if the price of the bond changes, then also the coupon will be fixed.

This leads to the difference between the coupon and the yield of a bond. While your coupon can be 4% on this bond mentioned above, the yield of the bond can be different. Now, there are different yields as well, for instance, the current yield is derived by dividing the bond's coupon by the current price. If the current price is higher than the face value, the yield will be lesser than the coupon rate and vice versa.

What makes bonds so attractive investment options?

The global bond market is so huge because of the following reasons –

Bonds help investors earn regular income
By investing in the bonds, your capital is preserved especially if you are investing in government bonds as they have very low to a nil risk factor.
If there is an economic slowdown, bond income becomes more attractive as you know that you will receive a certain amount from it even though the market is sluggish.

How much you should invest in bonds to have a healthy investment portfolio?

Your investment plan must include bonds to have the right balance between risk and return. Bonds help in hedging against market volatility, however, the question is how much you should invest in bonds to strike that right balance.

So, it should be according to your –

Age
Risk appetite
Investment goals
Suppose you are young, just started with your career, your risk appetite is usually high at this age, and have long-term investment goals. Then your investment portfolio can have somewhere between 25% to 30% of debt instruments which should include bonds.
As the age increases, you would look for stable returns, regular income, and risk appetite goes down, so the percentage of bond investment can go up accordingly.

To invest in bonds, you need to check with your mutual fund distributor which bond they offer.

Final thoughts

While investing is essential, investing in the right assets is important. Whether you are a risk-taker or risk-averse investor, having a certain percentage of bonds in your investment portfolio can help you during unfavourable economic conditions.

Is Investing in an IPO a good idea?

Shivam — Fri, 12 Jun 2026 10:09:27 +0000

The primary reason a corporation registers its shares is to raise capital. IPO investment returns are crucial for a company to survive. The funds raised by the firm are helpful for a variety of reasons. It is analogous to your monthly payments. You may divide it up for rent, home bills, food, and so on while saving some for investments. Similarly, a corporation divides the revenues of an IPO for numerous reasons.

When a company's needs are met, its growth and profit are on track. It offers investment benefits. Let's examine some IPO perks.

What exactly Is an IPO?

Before deciding whether it is a brilliant idea to invest in an IPO in India, let us define an IPO and what it does for an investor. The word IPO stands for Initial Public Offering, a method for firms to obtain funds by selling stock to the general public. These shares are traded on a stock market, where you may purchase and sell them based on market conditions.

When you purchase such firm shares, you are investing in an IPO. If your IPO investments do well in the market, your investment may expand rapidly and help you generate enormous profits as an investor. The goal is to invest wisely and identify the appropriate IPOs at the correct timing and price.

The Benefits of Investing in an IPO

Whether it is a brilliant idea to invest in an IPO can only be addressed by comprehending the actual advantages of IPO investing. If these advantages correspond with your financial objectives as an investor, IPOs may be the best solution for you:

1. Early opportunity:

IPOs allow investors to join in on the 'ground floor' of a new and growing firm. As the company's performance grows over time, so does your entire investment.

2. Achieving financial objectives:

IPO investments are fundamentally stock market investments. As a result, they are recognised for providing high returns over a lengthy period, which notably benefits long-term investors.

3. Equalises the playing field:

When it comes to IPOs, the price per security must be declared openly and indicated in the order paper. Consequently, regardless of how large or little an investor is, they all have access to the same pricing information to make their judgments.

IPO investment strategy

Many of us fantasise about making money by investing in stocks. While some people participate in mutual funds or trading, others prefer to invest in an IPO or initial public offering.

Tip 1: Examine the company's performance.

Before investing in a company's IPO, investigate the company's success year after year. One should watch for any unexpected growth in the company's revenues prior to the launch of an IPO . If the business's revenue increases by 20% each year, it implies that the company is doing well. If the firm's performance falls below the industry's benchmark growth parameter, then the company may be underperforming. In such instances, it is possible to hunt for better firms to invest in.

Tip 2: Select a corporation with an excellent brokerage.

Investors must appreciate that strong brokers are always helpful in bringing outstanding firms public. When selecting organisations with smaller brokerages, one must be extra careful. However, one benefit of small brokers is that they have a smaller customer base, making it easier for an individual investor to participate in pre-IPO shares.

Tip 3: Look into the promoters' backgrounds.

It is one of the most significant factors to consider before investing in an IPO. Check the backgrounds and experiences of the company's promoters. Check to see whether the firm has any payment defaults from any banks since the performance of the promoters will undoubtedly affect such a payment default.

Tip 4: Carefully study the company's first public offering prospectus.

Investors should never disregard prospectors. Please read everything carefully, but never put your complete reliance on it. Though it may be a dull read, it will provide information about the firm's risks and prospects. It would also include details on how the proceeds from the IPOs would be used.

Tip 5: Always adhere to the lock-in time.

The lock-in period might range from 3 months to 2 years, and stock brokers or underwriters will be unable to sell their shares during this time. If the brokers or underwriters are still hanging on to their stock market shares after the lock-in period, it indicates that the firm is doing well and wants to increase its stakes.

Conclusion

An IPO offers investors a significant possibility for rewards, but the risk is equally substantial. If the firm succeeds, you invest in its shares and enhance your earnings. Your capital is increased by selling the shares at a higher market price. Before investing for good IPO investment returns, double-check everything.