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How to Make a Life Insurance Policy Claim?

Life insurance plans can be of two major types— term insurance and traditional life insurance. A term plan offers a lump sum death benefit to the nominee in the event of the demise of the policyholder during the policy term. The death benefit offered is usually a large lump sum amount. On the other hand, a traditional life plan offers both death and maturity benefits but the death benefit amount is not as high as that in a term policy.

So, when it comes to making a life insurance policy claim, see whether your chosen plan is one of term or traditional life insurance. If it is a term plan, the nominee needs to learn about making a death claim. If it is a traditional plan, one must know how to make both maturity and death claims.

Steps to Make a Death Claim Under a Term Life Insurance Plan

Step 1: Claim Intimation

You can do the claim intimation of your insurance plan online or offline. Here, you need to contact the life insurance company by dialling their customer care number. The staff will take all the required details from you to give you a claim form for a death benefit that you must fill out.

Step 2: Complete the Claim Form

Here, you need to duly fill out the given claim form by providing all the necessary details. These can include the policyholder’s name, the policy number of the term life insurance plan, the client id and more.

Step 3: Submit the Necessary Documents with the Claim Form

Now you need to submit the claim form together with any required supporting documents such as police reports, medical bills, etc.

Ask the insurer if the documents need to be submitted in photocopies or original and whether they should be attested by a police Sub-inspector, Magistrate, Gazetted officer or Tahsildar. Based on their requirements, do the needful.

Once you’ve completed the form, signed it and arranged for all the needed documents, consider submitting them at the closest branch office of the insurance provider. Alternatively, you can send the papers by post to the claims department of the insurer.

Step 4: Claim Processing and Decision

After you have submitted the claim form along with the necessary documents, the insurance provider will verify the papers and assess your claim. Once all the documents are successfully verified and your claim request is approved by the insurer, you will receive a confirmation of payment from them. This can usually take a few days. After that, you’ll get your claim amount through an electronic fund transfer or in the form of a cheque.

Steps to Make a Claim Under a Traditional Life Insurance Plan

If you make a death claim under this type of plan, follow the above-discussed steps.

You can claim a maturity benefit on completion of the policy term. For that, the insurer usually provides you with a bank discharge form in advance. You need to fill in its details, prepare the needed documents and send them together back to the bank.

Ensure to buy life insurance from a reputed insurer in India that has a high ratio and a seamless process for claim settlements.

What Sets Delhi’s Jama Masjid Apart from Other Mosques

If you’re planning a holiday soon, taking a Kolkata to Delhi flight is a great idea. India’s capital city has a long history and several architectural wonders. One of them is Masjid-i Jahānnumā, the “mosque that reflects the world,” which was built by Shah Jahan and inaugurated by Syed Abdul Ghafoor Shah Bukhrail, the Immam summoned in 1656 from Uzbekistan. One of the most notable things about the Jama Masjid is that it was built by the same emperor who built The Taj Mahal. This speaks of its grandeur and the fact that it is designed to ooze royalty. But that is not all.

Most Interesting Facts About the Jama Masjid

Here are a few of the most fascinating facts about this magnificent edifice:

  • It is the second-largest mosque in the Indian Subcontinent.
  • The courtyard can accommodate 25,000, and the premises can hold 85,000 people at a time!
  • It is one of the few architectural marvels in India with Islamic, Indian, and Persian elements from the seventeenth century.
  • The estimated expenditure for its construction is Rs.1 million, in the 17th-century value!
  • It took six years for 5,000 workers to construct it.
  • The masjid is designed to have the pilgrims face Mecca while praying.
  • The masjid is built with red sandstone adorned with ornate cravings of black and white marble all over the premise.
  • The Parliament House and Connaught Place are in line with the masjid, a strange coincidence!

If you have already booked your Kolkata to Delhi flight, you need to add this to your itinerary to experience the eloquent architecture. The best place to click pictures is gate 1 for it provides a picturesque view to take in the vastness of the mosque.

The Mosque                     

The premise has an absolution tank, where believers wash their hands, faces, feet, and heads to “cleanse” before entering the sacred place. The East gate is the best place to enter the mosque and feel what the Mughal royals did when it was used exclusively for royalty. It is a grand arched gate with intricate calligraphies all across the space. There are four minarets and two towers. Each tower has a flight of 130 stairs that brings you to the top and reveals a bird’s eye view of the always bustling Old Delhi area.

The Best Time to Visit Jama Masjid

Eid is the best time to visit to experience the mesmerizing spectacle of thousands of pilgrims praying together in the masjid premises. However, if you want to avoid the crowds, the best time to visit the mosque is in the morning, as once the sun comes up, it is difficult to stroll in the premises because of the infamous Delhi heat. Note that the mosque entry is closed from noon to 1:30 PM on all days except Fridays. And you need to pay a camera fee to get your camera phones inside the mosque.

If you have some time before your Delhi to Kolkata flight, here are a few things you should try.

Bring Home Some Old Delhi Vibes:

  • Visit the Red Fort
  • Pray at Sri Digambar Jain temple
  • Enjoy a langar (community lunch, though it goes on all day) at the Gurudwara Sis Ganj Sahib
  • Tread the dingy lanes of Chandni Chowk to get your hands on some intricately designed silver and gold jewellery, handicrafts, Traditional Indian wear, and décor items at super reasonable prices.
  • Try out local delicacies like rabri, parathas, jalebis, Dahi Bhalla (curd-dipped fritters), and much more.

You’ll find many selfie-worthy spots here and can get souvenirs to take back on your Delhi to Kolkata flight home.

Is It a Good Idea to Invest in a ULIP?

A survey found that 2 out of 3 Indians wished to invest in a ULIP plan in 2021. In fact, the affinity towards these products had highly increased in 92% of the participants after the first COVID wave when things had returned to normal. ULIP remains a popular investment tool due to its dual benefit of insurance and investment. This is quite advantageous over traditional vehicles and lets you achieve life goals with a single plan.

Yes, it is definitely a good idea to invest in an ULIP for a robust safety net. They can optimise returns which makes sense in this post-pandemic world. It is the best choice if you have a good risk appetite and can beat popular insurance products. Read on to know why else an ULIP could be the ideal option for every investor.

Tax Benefits

A unit linked insurance plan offers a tax rebate on the premium. It is under Section 80C of the Income Tax Act, 1961. The upper capping is up to ₹1.5 lakhs. This way you are able to generate a significant corpus for future needs. It is applicable if the premium you pay is below 10% of the sum assured to be received. But the aggregate annual premium should be up to ₹2.5 lakhs per year to enjoy this benefit as per the Budget 2021 proposal.
There are no taxes on the surrender value as well. The maturity money that you receive after 5 years of the lock-in period is free of deductions.

Flexible Fund Option

The top investment company lets you choose from 2 unit linked insurance plan options:

  • Bond Fund II
  • Balanced Fund II
  • Enhancer Fund II

This is because wealth creation must be well aligned with your risk appetite. The returns will depend on the scheme chosen by you. Premium re-direction is also allowed so you may divert your future premiums to a different choice of a fund in the ULIP. It is a good idea to talk to a financial expert and chalk out an investment strategy.

®   Long-Term Wealth

ULIP can act as a long-term savings plan. They come with a 5-year lock-in period that helps inculcate strong and disciplined investing. This is because you cannot encash the amount during this time frame and the money grows steadily. It is usually calculated from the date of starting the plan for utmost transparency. Investors may pay the premium on a monthly or annual basis. Accomplish multiple future goals like buying a dream car, home extension, an international trip, higher education or a wedding without touching your savings pot.

®   Rupee Cost Averaging

You can reap the benefits of rupee cost averaging in ULIP. Start by paying the premiums on a monthly mode and use the systematic transfer option. There is also an option of creating an SIP to an equity fund in ULIP. All of these make sure your parked money is growing well. The ULIP can liquidate a part of units and invest the money in an equity fund.

In short, an unit linked insurance plan is a suitable investment plan for risk-takers. They offer potentially better returns when compared to their peers due to the diversity of funds offered. Read the terms and conditions carefully before starting a plan.

4 Off-Beat Things To Do In Dubai

One can indulge in various adventure activities and revive the thrill of deep experiences. Talking of the places quenching the thirst at the multi-dimensional level by offering fun and unique amusement activities, Dubai always manages to secure top ranks.

Dubai

Dubai is a renowned city in UAE crowded with magnificent architecture and skyscrapers landing with the Burj Khalifa, the world’s tallest building. It is the most populated city in the UAE and abodes for the nobilities of the region. It is abundant in luxury shopping complexes and modern equipment and is unanimously recognized as the most preferred vacation destination around the world.

Other than the lavish holdings of the city, it also has an unbeatable business and corporate scope and certainly is the most demanded tourist spot in the world. However, there are various astonishing options other than enjoying the riches of Dubai, which can bring life-changing experiences altogether.

Topmost Off-Beat Activities To Do In Dubai

There are certain fun activities exclusively offered in Dubai on the same page, and one must try them out. So, leap on to Mumbai to Dubai flight and ring the bells of ecstasy by doing the following activities:

  1. Desert Quad Biking: The deserts and their sand dunes are one of the most appealing things on the list but converting beauty into an adventure is the art especially when one rides the four-wheelers quad bike in the slipping sand. This is the rarest of rare activities offered in the world, and one must try it at least once in life for rejuvenating effect.
  2. Shark Safari: Underwater life has always fantasized humans as it has surprising yet miraculous things to offer which are not only good for physical health but is also refreshing for mental health. So, shark safari is one of those breathtaking activities offered at the waterparks in Dubai, where even learning scuba diving is not mandatory. Put on essential safety equipment and dive deep into the expedition of exploration and amusement.
  3. Camel Polo: Horse polo can often be spotted around the world, but camel polo is an uncommon experience that used to be exclusively the sport of kings of the Arab region. However, one can now play this thrilling game in Dubai and create splendid memories of this romp.
  4. 6D Cinema: Well, the world has paced from the 3D cinema to further dimensions, but Dubai has a special dinosaur-themed 6D cinema giving real essence via fog, wind, rain, and vivid portrayal of the scenario, which is a unique exhibition than the other options present around the world.

So, one must not miss out on these amazing fun activities and surely do visit Dubai to flaunt the only events. So, pack up your bags, roll your sleeves and check out the Dubai to Mumbai flights and make the scrolling screens the happening reality.

When Do Liquid Funds Generate Low Returns and What to Do?

Liquid funds, which are essential debt funds that invest in short‐term assets, have become popular as they offer benefits like quick maturity, low cost and no lock-in period. This category of funds is most suited for those who have idle cash and are looking for a way to earn slightly higher returns on this cash, rather than leave it in the savings account.

Here’s a look at what impacts the returns on liquid funds and what you can do about it.

When Do Liquid Funds Generate Low Returns?

RBI Repo-Rate Cuts

The returns generated on liquid funds are dependent on the RBI repo rate. The repo rate is the rate of interest at which the Reserve Bank of India (RBI) lends money to commercial banks or other financial institutions whenever they need it. If the RBI increases the repo rates, the rate of interest on investments also increases. On the other hand, if the RBI slashes interest rates, the same will happen with the rate of interest on investments.

At the start of the pandemic in 2020, the central bank brought down the repo rate to support the economy. The Reserve Bank of India, in its Monetary Policy Statement in May 2020, announced to reduce the repo rate to 4% from 4.40%. Although the move benefited borrowers, it resulted in lower returns for investors. This is when liquid funds generated lower returns. However, subsequently, the RBI has been raising interest rates.

Regulations to Increase Security of Funds

In 2019, SEBI issued a circular to better manage risks with liquid funds. Under this circular, SEBI stated that all liquid funds will need to invest 20% of the total assets invested in highly liquid securities to ensure sufficient liquidity at all times. These securities include cash equivalents, G-Secs and Treasury Bills. These securities are the least risky, but also generate the least returns. Investing 20% of the assets in these securities ultimately reduces the total returns.

What Should You Do?

It can be confusing when liquid funds are not generating enough returns. The best idea is to look for an alternate investment option like mutual funds or liquid MF.

Investors who are risk sensitive can include liquid mutual funds in their investment portfolio. As you diversify your portfolio with mutual funds, you also diversify risks. You can choose to invest with a lumpsum payment or in small amounts every month via what is called a Systematic Investment Plan (SIP). You can start investing in MFs with as low as Rs.100 per month and can benefit from rupee cost averaging. After maturity, you can either withdraw the complete amount at once or choose Systematic Withdrawal Plans (SWP), where you benefit by withdrawing small amounts each month. When the money is invested for a longer period, the returns are typically higher than the short-term liquid fund returns.

With you invest for a longer period, you also benefit from the power of compounding. Investing in mutual funds through SIP also helps you develop the habit of saving every month.

How to Maximize ULIP Return?

A unit-linked insurance plan (ULIP) is an insurance-cum-investment tool that can help earn returns. The returns can be used to finance various long-term goals like higher studies, marriage, travels, home renovation, wedding costs, retirement and more. After choosing the best ULIP plan, you must follow some other steps to boost your returns. Here are a few useful tips.

Fix Your Financial Goals

Set your goals well in advance. This can give you maximum time to invest, choose the right investment tenure and suitable funds, and save in a disciplined way to meet your target. Say, you’re saving for your kid’s higher studies that he’ll pursue 10 years later. Then you can choose a 10-year ULIP.

Invest for a Long Term

A ULIP policy is a long-term investment scheme that yields optimum returns if you invest over a long duration. Although it has a 5-year lock-in period, try not to withdraw your money after that. This can affect your overall earnings considerably. So, consider this option only if there’s a financial emergency. The longer you stay invested, you can grow your money due to the power of compounding.

Invest Consistently

This is as significant as choosing the best ULIP plan. Some insurance providers reward consistent and long-term investors by repaying them some fees like fund management fees, surrender charges, policy administration charges, mortality charges and more. The insurer may waive off these charges if you avoid making complete or partial withdrawals from your plan. This can add to your total returns.

Switch Between Funds As and When Needed

The best ULIP plans allow you to switch between funds several times in a year. Based on the market’s ups and downs, you can switch to the right fund to increase your earnings. In a bear market, you can switch to equities. When share prices start rising, you can move to debt funds.

Consider Your Risk Appetite

As your age and responsibilities increase, your risk appetite can also differ. Young people can afford to invest aggressively. As you approach retirement, you may move to more conservative investments to protect your capital. A ULIP policy offers fund-switching to suit your risk appetite at any given time. If your risk tolerance is minimal, you can add debt funds to your portfolio. Once your risk appetite goes up, you can switch to equity funds to achieve better returns. If you want your portfolio to have both high and low-risk options, consider balanced/hybrid funds. With moderate risk, this can help you earn moderate returns.

Leverage ULIP Tax Savings

Under Income Tax Act, Section 80C, you can claim a tax deduction on premium payments toward a ULIP policy. According to Section 10 (10D), you can avail tax exemption once the plan matures if the net annual premiums are below ₹2,50,000. By leveraging these tax benefits, you can maximise your returns.

Go for the best ULIP plan from a reputed insurance company in India. Then follow the above tips to optimise your returns. Remember to read the policy terms and conditions carefully before investing.

Kid-Friendly Activities in Kolkata for a Family Trip

Have your kids been insisting on a fun holiday? It’s so important to experience an enjoyable vacation with your children. This is not only great for family bonding, but also for nurturing their young minds. Here is a fantastic combination of indoor and outdoor leisure areas in Kolkata that your kids are sure to love. Check out flight tickets from Delhi to Kolkata and plan a wonderful and adventure-filled holiday with your little one.

1. Nicco Park

Welcome to Nicco Park, Kolkata’s very own Disneyland. Nicco Park, one of the largest amusement parks in India, opened its doors in 1991 and has since become a popular vacation spot for people of all ages. The park, which occupies 40 acres, features 35 different rides that are jam-packed with excitement and adventure. The day’s activities are concluded with a massive food park and a luxurious rose garden.

2. Science City

The greatest complex of scientific centres on the Indian subcontinent is located in Kolkata and is run by the National Council of Science Museums (NCSM). Since opening in July 1997, the recognizable establishment, which is a top destination for both domestic and foreign tourists, has seen a total of 24.75 million visitors. Earth Exploration Hall, Space Odyssey, Dynamotion Hall, Evolution Park, and the Maritime Center are all parts of Science City. Hop on a Delhi to Kolkata flight and visit this science centre.

3. Wonder Beans

The well-placed Wonder Beans is a fun-filled, imaginative setting for fragile brains, just a short distance from Bhagirathi Neotia Hospital. A variety of video games, including motion-sensing floor games, spinning cup rides, Think Playhouse, and trampolines are available in the indoor play area. There are board games, novels, and comics for kids and teenagers, in addition to the interactive touch-screen console, which is a popular attraction. At Wonder Beans Cafe, you may sample waffles, hummus, or spaghetti, all of which are loved by kids.

4. Atom

In Kolkata, Atom was a pioneer in indoor entertainment. The city’s oldest indoor play area, with fun and entertainment at its center, incorporates a variety of fun-filled games that provide an adrenaline rush while also bringing out the most creative side in tiny super-champs. Adventure Hall, Party Place, Toddler Zone, Creative Corner, and Naughty Castle are the five zones that make up Atom. You name it, they’ve got it: seesaws, ball pools, huge trampolines, rock climbing, bridges, roller coasters, slides, role-playing toys, and building blocks. Book a New Delhi to Kolkata flight for a fun-filled summer vacation with your child.

5. Birla Planetarium

The Birla Planetarium, a cherished asset of the city, is the biggest and oldest planetarium in Asia. Jawaharlal Nehru presided at the Taramandal planetarium’s inauguration, which was followed by the facility’s opening to the public in 1963. The Birla Planetarium, one of Kolkata’s most popular attractions, has telescopes, cameras, solar filters, and a variety of high-end tools for space vision that keep kids occupied.

Remember to book a Kolkata to Delhi flight in time, so you can get tickets at highly attractive prices.

The Purpose of USG in Pregnancy

During pregnancy, it is common for your doctor to prescribe an ultrasound (USG) to check your baby’s growth and to monitor your pregnancy status. In addition, fetal ultrasonography is routinely done to assess suspected anomalies or confirm a diagnosis.

Ultrasound tests help generate images of the developing foetus and the mother’s reproductive organs. The average number of ultrasounds performed varies based on the circumstance. Further, USG in pregnancy is highly beneficial for monitoring healthy fetal development and screening for possible pregnancy complications. Ultrasound imaging is of different types, including:

  • Transvaginal ultrasound
  • 3-D ultrasound
  • 4-D ultrasound

Several tests are performed during the nine months of pregnancy to determine the baby’s health, one of which is ultrasound. To better understand the purpose of USG in pregnancy, keep reading.

The Primary Purpose of USG in Pregnancy

  • Confirm the pregnancy

One of the primary functions of USG in pregnancy is to confirm and establish the baby’s position. Some fetuses develop in the fallopian tube, which is located outside the uterus. A foetal ultrasound can assist your doctor in detecting a pregnancy outside the uterus (ectopic pregnancy).

  • Calculate your baby’s gestational age

For various medical reasons, it is vital to confirm the gestational age of the growing fetus. It enables your doctor, for example, to compare your baby’s growth to well-established growth charts required for proper development. Gestational age also assists in confirming the due date and ensuring that the baby is not born too early or too late.

  • Check for multiple pregnancies

An ultrasound can assist in determining the number of fetuses. It is significant since multiple pregnancies have additional risks and must be evaluated frequently.

  • Analyze your baby’s growth

Ultrasound helps assess the normal development of the foetus. It allows your doctor to monitor your baby’s breathing, movement, and heart rate efficiently.

  • Problem with the Placenta

The location of the placenta inside the uterus during pregnancy can be critical to the health of both the infant and, in some instances, the mother. An ultrasound can help establish whether there are any issues with the placenta.

  • Examine for Congenital Anomalies

Your doctor can assist you in determining whether your baby has congenital or genetic abnormalities. In addition, it will help you to decide whether to terminate the pregnancy or prepare for the challenges connected with the specific medical condition. To discuss any issues related to childbirth, you may visit the best maternity hospital in Delhi.

  • Check the level of amniotic fluid

Monitoring the amount of amniotic fluid is a significant benefit of ultrasound. This is because the foetus produces amniotic fluid, and both excessive or insufficient amniotic fluid might indicate pregnancy complications that require immediate medical attention.

  • Investigate complications

In the event of bleeding or any other complication, your doctor will perform an ultrasound to investigate the cause.

  • Help in other tests

Specific prenatal tests, like amniocentesis or chorionic villus sampling, are guided by ultrasound.

  • Determine the fetal position before birth

By the end of the third trimester, most babies are positioned headfirst. However, this is not the case for every pregnant woman. Thus, ultrasound imaging is used to check the baby’s position so that your doctor may discuss delivery alternatives with you. Fetal ultrasound offers multiple benefits for your doctor and can assist in identifying the baby’s health status. Furthermore, expectant parents are delighted to obtain their first glimpse of their newborn, a joyful and treasurable moment.

How To Take Care Of Your Mental Health During IVF

Modern scientific research has found that IVF treatment is directly connected to an increase in levels of anxiety, stress, and depression. This is directly related because a woman is most of the time considered to be the cause of the inability to reproduce, and a man s considered to be less of a man if he cannot father a child. 

In such circumstances, such couples do not pay heed to the IVF treatment cost and go ahead to get away with the stigma of incapability as a man or a woman. Thus the procedure is both mentally and financially exhausting. Sometimes couples are led to bursts of emotions and grief.

Focusing On Oneself Is Important To The Procedure

During IVF treatment in any of the IVF centre across the country, it is better to stay focused on oneself. At this stage, you are the most important person, and nothing can be more important than your mental well-being. So stay focused on yourself, and get away with mental trauma, stress, and strains. 

The more you are stressed out; your hormones will start acting and showing up. They will get affected, and the procedure may fail. And you cannot afford that as IVF cost are also very high and painful at the same time. Self-care is essential at this stage because mood swings are likely to set in. 

You can meditate, read, relax, listen to calming & soothing music, eat plenty of good food and spend time with your loved ones. How you conduct yourself during this stage is vital for a successful IVF pregnancy becoming a success. 

Your Relationship With Your Partner Is Worth Watching Out For

When you are undergoing the process, make sure to take care of each other and your relationship with one another. Do not let the stress and strain get at you and make you start squabbling and fighting all day long. Do not play the blame game; instead, be a little relaxed and be each other’s mental strength and support. Keep that spark alive in your marriage. In short, let nothing come in the way. The mental health of both genders is equally important. 

Maintaining A Good Relationship With All Loved Ones

It is not only important that you maintain a good relationship with your partner alone. It is equally important that you have a perfect relationship with all your loved ones surrounding you. Family and friends will help you stay mentally happy and healthy, so spend some time with them also. It is especially important that you spend time with people whom you love and who make you feel good and happy.

Keep away from negative-minded people and people who try to demotivate you. You are already under huge stress of not being able to bear a child, and their negativity could get the better of you. Your hormones are very fragile at the moment so take good care of your overall health as well as your mental health.  This is most vital for the procedure to become a success as per doctors who say IVF cost in Hyderabad could be a bit on the higher side. Though this is the case everywhere in India, for a better insight into the matter, you can read articles on IVF celebrity moms in India.

What are the Different Types of Debt Funds You Can Invest In?

Debt funds are a popular investment option for both new and seasoned investors with a low-risk profile. Aside from the low risk, debt mutual funds are appealing due to their flexibility and consistency in earning fixed income. These funds are further categorized depending on their various assets’ investments and maturity period. For more on debt funds and their types, keep reading.

What are Debt Funds?

Debt funds are a kind of mutual fund that invests in debt securities. It comprises corporate and government bonds, treasury bills, commercial papers, corporate debt securities, and other money market instruments. Investing in debt funds obtains a regular interest income for capital appreciation.

These debt instruments have a fixed interest rate and a defined maturity period. Additionally, several types of debt mutual funds are accessible to suit investors’ risk tolerance, investment horizon, and financial objectives.

Different Types Of Debt Funds

Let’s take a look at some of the debt mutual fund types that are available to investors.

  • Dynamic Bond Funds

Based on the interest rate regime fluctuations, the fund manager takes the call to invest in different debt instruments with varying maturities. As a result, these funds are ideal for investors with medium risk tolerance and a three-year investment horizon.

  • Short Duration Funds

These funds have a maturity duration of one to three years. The funds are invested in various assets, including government securities, bonds, and money market instruments. These debt mutual funds are intended for investors with a low to medium risk-taking ability.

  • Corporate Bond Funds

These debt funds invest at least 80% of their assets in high-quality corporate bonds (AA+ or higher). The high-grade corporate paper provides credibility and the potential to generate significant profits with little risk.

  • Overnight Debt Funds

These funds invest in assets with a one-day maturity term. As the maturity period is so short, there is minimal interest or credit risk. These funds’ primary goal is to provide liquidity and convenience rather than high returns.

  • Liquid Funds

The capital in these funds is invested in high-quality debt instruments such as treasury bills, CDs, etc., with short maturity duration of 91 days. Since the maturity term is limited, the risk to investors is modest, as are the yields.

  • Money Market Funds

The capital is invested in debt instruments such as commercial papers, treasury bills, etc., with a maximum maturity period of one year. They seek to create returns via interest income, but their slightly longer term allows for some capital gain potential.

  • Gilt Funds

These funds invest solely in government securities of varying maturities. Gilt funds have low credit risk but are subject to interest rate swings. As a result, these funds are suited for conservative investors.

  • Credit Risk Funds

These funds deploy at least 65 per cent of their money in corporate bonds with weaker credit ratings (AA or less). Since the credit risk is high, these funds offer high-interest rates. These debt mutual funds are best for investors with high-risk-taking ability.

  • Banking and PSU Funds

A minimum of 80% of the fund corpus is invested in debt securities from PSU banks and other financial institutions.

  • Floater Funds

These funds invest a minimum of 65 per cent corpus in floating rate instruments. Here, the coupon rate is not set and is linked to a benchmark that is reviewed quarterly.

The debt funds aim to diversify the investment portfolio. However, it is crucial to consider factors such as risk, estimated returns, fee structure, maturity duration, and capital gains tax before investing.