Financial Apps for Android, BlackBerry and Windows Mobile Phone

Financial Apps 

1. Financial Planner
2. Loan EMI Calculator
3. SIP Calculator
4. Retirement Planner

Other Useful Apps

1. Age Calculator

Are available for download Google Play Store, BlackBerry App World and Windows App Store.

Financial Planner helps you to plan for your long-term financial goals like Child Education, Child Marriage and Retirement. It helps you assess how much you should invest every month to get a desired amount at the end of an investment period. It helps you to calculate the future value of SIP (Systematic Investment Plan) Payments or to quickly calculate EMI (Equated monthly Installment) of home Loan, Car Loan. 

Loan EMI Calculator helps to quickly calculate EMI (Equated monthly Installment) of home Loan, Car Loan or Personal Loan and how much total interest will be paid. It also shows loan repayment schedule with total interest paid and total principal amount paid at the end of every financial year.

SIP calculator calculates the future value of SIP (Systematic Investment Plan) Payments. It helps you to calculate future value of your monthly investment in Mutual Fund, Public Provided Fund (PPF) or Fixed Deposit (FD) in bank or post office.

Retirement Planner helps you determine how much money you will need for your retirement to maintain the current lifestyle post retirement.

Age Calculator helps you to calculate your age in years, months and days on today’s date or on specific date. It’s useful for individuals, life insurance agents, or health insurance agents to get the age while filling up the form. Send details using SMS or email.  Shows how many Month and days to go for your next birthday

Google Play Store Link is

https://play.google.com/store/apps/developer?id=Nilesh+Harde

BlackBerry App World Link is

http://appworld.blackberry.com/webstore/search/Nilesh Harde/?lang=en

Windows Phone App Store Link is

http://www.windowsphone.com/en-in/search?q=Nilesh+Harde

Please send your suggestions and issues found to my E-mail address nilesh.harde@gmail.com.

Avoid these common mistakes

Most retail investors plan to grow their savings via investments, but most of them fail to grow the investments to their full potential. You can blame this on the common mistakes that retail investors make during the investment period. Here are some of them:

Lack of planning: Investments are made indiscriminately across asset classes, overlooking the investment objective or risk appetite. A strong investment or financial plan addresses the goals or objectives to be achieved after a specific period of time. Here, if one is not well-versed with the nuances of financial planning, he/she should consult a financial planner.

Lack of diversification: Often, investors put money only in one asset class, thereby losing the opportunity to benefit from better performing asset classes. For instance, in India, portfolios of most retail investors are locked in bank fixed deposits (FDs) instead of having a mix of mutual funds and FDs. The table here shows a diversified mutual fund portfolio of equity, debt and gold that provides higher returns than bank FDs over a 10-year period.


Impact of inflation: Investors often ignore the effect of rising prices or inflation on their portfolio. This is especially important in a highgrowth and high-inflation economy such as India. For instance, if a bank FD gives 8% returns in a year when the inflation rate is 7% (average), the real rate of return for the investor is just 1% (8%-7%), which is insignificant. Investors can beat inflation only by investing in diversified products across the asset class spectrum.

Not starting early: The adage 'early bird catches the worm' holds true in case of investing also. If a person starts investing early, he/she will be able to reap the benefits of compounding of returns to the maximum. For instance, Rs 1 lakh invested at the age of 35 years at the rate 10% per annum would grow to Rs 6.73 lakh in 20 years (55 years). However, the same amount if invested at the age of 25 at the same rate of interest would have grown to Rs 17.45 lakh. This is three times the growth seen from the money invested 10 years later. This is nothing but the power of compounding, which works to the advantage of those who start saving early.

Timing the market: Financial markets tend to move in cycles — equities have a far shorter cycle compared to debt or other asset classes. A big mistake that investors make, especially in equities, is trying to time the market. However, the risk of loss is very high if calculations go wrong.

Investments based on tax planning: As the financial year-end draws near, tax benefits overshadow pragmatic investment needs. Investors do not invest based on any goal or plan but only to save on tax. Investors must align their tax-saving investments according to their long-term investment plan. For instance, for young and relatively risk-averse investors, equity-linked savings schemes are a better alternative than debt instruments as equities have outperformed debt over the long term.

Lack of review and rebalancing: Retail investors fail to review and rebalance their portfolios. They should track their investments at regular intervals to gauge the performance. Further, portfolios must be rebalanced to match the pre-defined asset allocation. Reviewing also helps to weed out non-performers in the portfolio.

Lack of insurance: Insurance, both life and medical/health, should be an integral part of an investor’s financial planning. This is because exigencies come unannounced and could be costly. A term plan may be preferred to an endowment or a money-back plan.

Health Insurance - Why you should have a personal accident cover?

For less than 1,000 a year, you can get a 5 lakh cover against death and disability due to a mishap.
 

You need a life insurance policy to cover the risk of death and a health insurance policy as a cushion against hospitalisation expenses. While most readers are bound to be familiar with these essential covers, very few would have heard of the personal accident cover. Personal accident schemes cover the policyholder against death or disability due to an accident. All general insurance companies offer these policies, but it’s very unlikely that an agent will try to sell you one. These low-priced policies are not very popular because the agent earns barely 20-30 as commission from selling such a policy.
However, you should buy a personal accident policy because it plugs an important hole in your insurance portfolio. Firstly, it will provide financial support to the policyholder if he is disabled after an accident. Secondly, the magnitude of the mishap doesn’t matter; even minor ones like falling off a bicycle and breaking an arm, or fracturing a leg while playing football are covered by the policy.
If you thought term insurance policies were cheap, wait till you find out about the premium rates of a personal accident policy. For as little as 225 a year, you can get a cover of 5 lakh. The daily cost works out to about 60 paise. However, this is the rate for a basic cover from a PSU insurer and will only cover death and permanent disability. If you want enhanced protection, you will have to shell out more (see graphic).


 

Bundle it with other covers

One way to get the agent interested is to buy it along with your health or motor insurance. “Since agents get very low commissions, they usually try to bundle the personal accident cover with some other insurance product. However, this doesn’t mean that you will pay a lower premium, though some companies may give you a discount,” says Sanjay Datta, head of underwriting and claims, ICICI Lombard General Insurance. A basic personal accident cover against death and permanent total disability is already built into a motor insurance policy. You can enhance the cover by paying extra.
PSU insurers offer a maximum cover of 5 lakh under a personal accident plan. Private insurance companies offer a higher cover and a wider range of benefits, but the premium rates are higher too. You can take a cover of up to 8 times your annual salary. Apart from the basic death and permanent disability cover, you can buy additional protection against partial and temporary disability, even loss of livelihood. “A personal accident policy covers the buyer against costs that can shatter him financially,” says Subrahmanyam B, senior vice-president, health & commercial lines, Bharti AXA General Insurance.

Understand terms & conditions

It’s important to understand the terms and conditions clearly before you buy a policy. For example, hospitalisation benefit can be availed of only if the policyholder is admitted within seven days of the accident and is hospitalised for at least 24 hours. A fractured leg is a temporary disability, and if you have taken a cover against it, your policy will pay a weekly sum of 5,000 for up to two years. However, this weekly cash benefit is paid only if you are unable to go to work and the payment starts only 60 days after the accident. One also has to submit proof, including a doctor’s certificate for the disability that prevents one from attending work.
Also, be very clear about the definition of disability. When a Delhi-based policyholder lost his index finger in a car accident, the hospital gave him a certificate of 15% disability. Yet, the life insurance company denied his claim because he had a cover against total disability. “The policy
document defines the loss of hand as total disability. The loss of one digit, even though it was the index finger, was not covered,” he says. Permanent total disability is defined as total loss of sight in both eyes, or total loss of use, or dismemberment of both hands or legs, or one hand and one leg. Losing one eye is a
permanent, but not total, disability. Ask the insurance company or agent to explain the exclusions clearly to you.

You may also have a group cover
Most companies offer personal accident insurance to their employees through a group cover. However, this is a very basic cover and may not offer the benefits offered by a standalone policy. “I recommend an individual policy only if one can afford it and if his company’s cover is insufficient,” says Jayant Pai, head, marketing, Parag Parikh Financial Advisory Services.
You can also buy an accident cover with a rider along with a life insurance policy. However, these riders come with strings attached and don’t offer certain covers. “Since life insurance companies cannot offer anything but life cover, you will not be covered against other damages, such as hospitalisation expenses,” says Sanjay Tiwari, vicepresident, strategy and product, HDFC Life. “Riders can never be as comprehensive as a standalone policy,” he adds.
A plain vanilla personal accident cover is not very expensive, but it can come handy in case of a mishap. Selfemployed professionals who travel a lot during the course of their work will find this especially useful. Buy one right away so that there is nothing left to chance in your insurance portfolio.

Cashless health insurance

            The facility of cashless claims in health insurance tries to remove the problems associated with settling hospital bills and making lump-sum payments for hospitalisation. The facility can be availed of only if the hospital, where the patient is to be treated, figures among the hospitals approved by the insurer. The list of network hospitals can be obtained from the TPA (third-party administrator) either from its website or by calling its toll-free number. The details of TPA are available in the health insurance policy.

Informing the hospital
            The hospital needs to be informed at the time of admission that the patient is covered under cashless health insurance policy and the insurance card needs to be submitted at the admission desk for this purpose.

Pre-authorisation form
            The form is available with the hospital and has to include the approximate hospitalisation cost based on an estimate from the admission desk. If the hospitalisation is planned, it is advisable to finish the pre-authorisation procedure beforehand.

Process
            On receiving the pre-authorisation form, theTPA checks the policy limits, eligibility and riders applicable in order to accept or reject the claim. After approval, the TPA sends an initial authorisation by fax to the hospital.

Settlement
            At the time of discharge, the insured has to sign the discharge form and all the bills and forms, which are sent by the hospital to the TPA for authorisation. If this authorised amount is less than the hospital bill, the difference needs to be paid by the policyholder to the hospital.

Points to note
 

·         Even if a pre-authorisation request is denied by the TPA, the insured can go ahead with treatment, settle the bills and then apply to the insurer for a possible reimbursement.

·         In case of an emergency hospitalisation, the pre-authorisation form has to be faxed to the TPA in the duration specified.

Non-medical bills and expenses not covered must be settled directly by the insured before discharge.

When to exit your mutual fund

Five situations which may warrant redemption of your fund units.

    People spend a lot of time trying to identify the right mutual fund to invest in. While choosing a good scheme is important, knowing when to exit is as crucial. This is because even though you may be holding the right mix of mutual funds at a given point in time, you may want to alter the holding pattern by disposing of some funds in the future. How do you decide when to do this? Here are five situations where you may need to consider getting rid of your investment.

Consistent underperformance

Gross underperformance of any scheme is the first signal for you to consider moving out. However, don’t dump a fund based on the performance over a short span of time. Move out only if it continues to perform poorly over three to four quarters. Remember to compare the scheme’s performance with that of its benchmark or category, not with a fund belonging to another category.

Exit of a capable fund manager

A change in the fund manager should normally not be reason enough to dump your fund. Even if a star manager leaves a fund house, it should not make you press the panic button. Instead, keep a watchful eye on the new fund manager for some time. Track his investment style, churning frequency, stock selection, asset allocation strategy, etc. If you are satisfied with his approach, stay put. If the fund house has a robust investment processes in place, the fund is likely to do well regardless of who is steering it.

Change in scheme attributes   

Investors should typically opt for a fund only if its objectives or investment mandate are aligned with their needs. So if you suddenly find that your fund has deviated from its stated objective or revised its investment mandate, you should consider exiting it. Over time, some fund managers take investment calls that do not match the stated objective of the scheme. If this happens too often, it’s time to get rid of the fund. Besides, whenever there is a change in the fundamental attributes of a scheme, the fund house is required to provide the investors an exit window, wherein those who wish to move out can do so without incurring any exit load.

Achievement of an investing goal

Financial planners advise that you should invest with a goal in mind. Once your investment reaches the targeted amount, you should redeem it. There’s no point in continuing with the investment for you will be exposing your investment to further risk. Don’t get greedy and wait for the fund to go that extra mile.

Rebalancing of the portfolio

Asset allocation is the key to success in investing. It ensures that your portfolio does not deviate from its original path, putting your goals at risk. So if you find that your equity allocation has grown beyond comfortable levels, consider redeeming the funds. A change in life stages would be another reason to change you asset allocation and consider switching to a fund that matches your needs. As you near retirement, you might want to consider more conservative funds.

Health Insurance - Does a floater cover work?

Does a floater cover work?

Such an insurance plan is a good option when the family is young, but it may not prove cost-efficient if there is an older person to be insured or when the children are grown up.

    One of the biggest dilemmas faced by health insurance buyers is whether they should go for individual policies or a floating cover for the entire family. In an individual policy, the cost of the cover is generally lower compared with a floating plan. However, in the case of the latter, a higher cover is available to all members of the family since each member can avail of the combined cover. The logic is simple. There is a low probability that more than one or two family members will require hospitalization in a year. It is a calculated risk which reduces the cost of the cover substantially.
    Floaters work best in case of young families. The premium is low because it is linked to the age of the eldest member in the plan. “A family floater cover is advisable when the oldest member is less than 45 years old,” says Neeraj Basur, chief financial officer, Max Bupa Health Insurance. For 34-year-old Rakesh Somani, it is an ideal choice for insuring his family (see picture). “Since we are a young family and our healthcare costs are not too high, a floater plan of 5 lakh should be sufficient for us,” he says.

Costly for older families
However, the same may not be true for an older family, where the eldest member is more than 45 years old and the children are grown up. In such a case, individual policies may work out to be cheaper (see graphic). The same is true if you want to insure an elderly member of the family. The premium can be prohibitive when you include a senior citizen (above 60) in the floater plan. For instance, a 3 lakh floater cover for a family of four, where the eldest member is 35 years old, will cost less than 9,000 a year. However, if you add senior citizen parents (65 and 60 years), the premium jumps to 52,500. “When older family members have to be covered, it is better to buy separate plans for them,” says Gaurav D Garg, managing director & CEO, Tata AIG General Insurance. Individual covers of 3 lakh each for the two senior citizens would cost about 30,000 ( 18,000 for the 65-year-old man and 12,000 for the 60-year-old woman). This still works out cheaper than a combined floater for the entire six-member family.

Go for individual cover after 45
Taking an individual plan could also be an option when the eldest member of the family crosses 45 years. He can take a standalone policy for himself, while the rest of the family is covered under a floater plan. Insurers allow members to branch out and take individual policies when the plan comes up for renewal. This is also useful when a dependent child grows up and starts earning. He may need to buy a separate health insurance plan for his own family.
    Check if your insurer will carry forward the benefits accumulated by the individual in the floater plan when he shifts to the individual cover. This is important since there is a 3-4 month cooling off period for all claims as well as a 2-3 year waiting period before pre-existing diseases are covered by health insurance companies.

Top-up plans are cheaper
The health insurance provided by employers usually includes floater plans that cover the employee and his dependants. It is not advisable to depend entirely on such a cover because if you change jobs or stop working, your family may be rendered uninsured. If you think buying a fresh insurance plan is very expensive, go for a top up health cover. Top-up policies cover medical expenses beyond a certain threshold. Suppose an individual has an insurance cover of 3 lakh from his employer and takes an additional top-up cover of 5 lakh, with a deductible of 3 lakh. If he is hospitalised for an illness and the bill comes to 7 lakh, his employer’s cover will pay for the initial 3 lakh and his top-up policy will pay the remaining 4 lakh. The deductible in the top-up covers brings down their cost substantially. Since almost 85-90% of the claims are below 3 lakh, the risk for insurance companies is minimal. Therefore, a top-up plan is 40-60% cheaper compared with a full-fledged cover. If a regular cover of 3 lakh costs 3,500, a top-up cover of 5 lakh with a 3 lakh deductible will cost only 1,600.

Source: The Economic Times Wealth April 16, 2012

Income Tax - E-filling must for income over Rs 10 lakh

The government has made it mandatory for individuals with income of over 10 lakh to file their tax returns electronically for 2011-12. E-filing has been made compulsory for individuals and Hindu undivided families (HUFs) if the total assessable income during the previous year exceeds 10 lakh for the assessment year 2012-13, said the Income Tax Department. However, digital signature will not be mandatory. Till last year, e-filing was optional for such individuals and HUFs. The IT department received a record number of 1.64 crore income tax returns electronically in 2011-12. Currently, business houses with receipts of 60 lakh and professionals with income of 15 lakh are mandatorily required to efile their return with digital signatures.

Source: The Economic Times Wealth April 16, 2012