Chapter 6

  1. The frequency of interest in Cumulative Deposit account is QUARTERLY.
  2. If a person pays premium for health insurance then he can get deduction under section 80D of the IT Act, 1961.
  3. With increase in interest rate the prices of shares would go down and with decrease in interest rates it would increase.
  4. The biggest advantage of converting Gold into ETFs is that it would increase LIQUIDITY.
  5. If a person wants to invest in Kisan Vikas Patra, he would go to the POST OFFICE.
  6. Actual return decrease on account of inflation For Exp. If the return on FD is 6% its actual return is deemed as 4%.
  7. Employee Gratuity Fund is not an allowable deduction under Section 80C of IT Act, 1961.
  8. If a person has got small children then his last priority would be RETIREMENT PLAN among Life, Health, Retirement and Child investment policy.
  9. If a person wants to save tax more than what has been normally provided in Sec-80C of IT Act, which is 1, 00,000 at present he should invest in INFRASTRUCTURE BONDS.
  10. Recurring deposit and Cumulative deposit both provides GUARANTEE of return to its holders.
  11. If RBI Increase the interest rates then stocks or share prices would decrease or would go down.
  12. An insurance agent can offer assistance to his client by MATCHING THE PRODUCTS WITH HIS FINANCIAL NEED.
  13. If a person is to be jobless for some time then ideal investment for him along with bank FD is the DEBT FUNDS OF MUTUAL FUNDS.
  14. The main difference between Cumulative and Recurring Deposit is FREQUENCY OF INTERSET PAYMENT.
  15. After the lapse of time for say 15 years the disposable income of a person would SIGNIFICENTLY INCREASE if he has got children etc.
  16. If a person deposits in a BANK then Tenure, Interest payment mode and interest rate is clearly mentioned to him in advance.
  17. If a person wants policy for Risk Cover and also wants some return at the end of the policy term then he should purchase RETURN OF PREMIUM PLAN. ( ROI )
  18. A person should spend maximum 40 % of his income on House Loan EMI.
  19. If RBI Increase the interest Rates then stock prices would come down and Shares would be less attractive.
  20. If a person changes his physical Gold into EFTs then his liquidity would increase.
  21. INTERNET is the easier way for a person to take saving products than call centers and agents.
  22. Kisan Vikas Patra gets cleared at POST OFFICE.
  23. If a person invests in a Post Office Monthly Income Scheme then whatever is the interest rate it would remain CONSTANT till maturity.
  24. The main purpose of investing in debt mutual fund is LIQUIDITY.
  25. If a person wants to maintain the emergency fund then the best option is either Bank or FD.
  26. Primary saving need among all saving needs is CONTINGENCY EMERGENCY FUND.
  27. A person should spend maximum 40 % of his income on House Loan Installment.
  28. Deduction for health Premium under Section 80 D is higher for the people who are of 65 years of age or above.
  29. If the banks reduce its interest rates then the Price of their bonds are likely to Decrease.
  30. The advantages and disadvantages within cumulative and fixed traditional deposits pertain to the RETURNS.
  31. If a person switches off from direct holding of shares to equity based mutual funds then the impact of the risk would be that it would be more diversified now.
  32. If a person wants to invest in FD and also wants deduction from income tax then this FD should be for at least 5 years.
  33. ULIPs give more tax benefits in comparison with NSC because the interest of NSC is taxable whereas returns on ULIPs are non taxable.
  34. If a customer opts for the settlement option then he has the option to receive his maturity claim in installments up to 5 years.
  35. If a person has got very less time to get back his money say 9 months then he should always go for FIXED DEPOSIT IN BANK Instead of Insurance, Mutual Fund or Shares.
  36. ASSET MANAGEMENT COMPANIES maintains mutual Fund schemes.
  37. Time Deposit Account is issued by POST OFFICES.
  38. The key factor is the INTEREST RATEs which are considered by the investor while investing in Recurring Deposit or Cumulative Deposit.
  39. In TRADITIONAL DEPOSITS banks pays the interest on the deposit fund on Monthly/Qly/Half Yearly/Yearly Basis.
  40. ULIP and NSC both give tax benefits. Although ULIP gives more benefits.
  41. There is no fixed proportion in a FAMILY FLOATER PLAN of health insurance.
  42. If a person is holding 100 Units of Gold ETF Certificates then he has got 50 or 100 Grams of Gold.
  43. BOMBAY STOCK EXCHANGE acts as an intermediary by offering a traditional platform for buying and selling of shares.
  44. For getting income tax benefit under postal scheme a client has to invest for at least 5 Years

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