Common Questions and Answers

• ROP Term plans return all premiums paid at maturity. In Regular Term insurance, no benefit is normally payable if the life assured survives the term.
• Regular Term insurance plans are cost effective. ROP Term plans are 2 to 3 times expensive.

• Deposit in Public Provident Fund (PPF) lumpsum at the start of the year by 5th April.
• Interest on Public Provident Fund (PPF) is paid on lowest balance between 5th and last day of month. Deposit by 5th of the month to earn maximum interest.

• Fundamental Analysis involves forecasting stock prices on the basis of economic, industry and company statistics.
• Technical Analysis involves forecasting stock prices based on chart patterns and price volume statistics. Technical Analysis supplements Fundamental Analysis rather than a substitute for it.

• Interest rate offered is 8.4%* p.a. payable monthly. There is a lock in period of 5 years. Investment is allowed in the multiples of INR 1500/-.
• Maximum investment limit for single account is INR 4.5 lakhs and for joint account INR 9 lakhs. Can be prematurely encashed after 1 year with deductions.

*Interest rate pertains to year 2015, check www.indiapost.gov.in for latest information. 

•  If you decide to invest lump sum, the market from there can go either up or down. There is a risk. It is better not to try and predict the market.
• Invest in equity mutual funds with a horizon of at least 5-6 years through SIP route every month on different dates. This will reduce the risk considerably.

•  Invest in Mutual Funds. Mutual fund is a professionally managed pool of money collected from large number of investors. Fund Managers invest this money in various financial instruments. Investor is a unit holder and increase in value of investments after deducting expenses is passed on to investors.
• Types of mutual funds available in India for investment: Equity, Debt, Liquid and Hybrid.