| Life insurance: |
| You will do anything for the ones you love.Thinking about why you need life insurance can be an emotional and stressful task. However, life insurance is one of the most responsible decisions you can make to help ensure that your spouse, children or other loved ones can continue to enjoy the quality of the life they deserve. Life is unpredictable.
So it is important to ensure that your family and loved ones are taken care of financially in case something should happen to you. This is where life insurance comes in.It can provide some financial peace of mind if the worst were to happen. |
What is Life Insurance? |
Life insurance offers a way to replace the loss of income that occurs when someone dies. Life insurance is insurance for you and your family's peace of mind. With a life insurance policy in place, you can:
- Provide security to your family
- Protect your home mortgage, loans, credit card borrowings etc
- Provide finance to your loved ones to achieve their goals in your absence
- Ensure that your family is able to maintain their lifestyle, no matter what happens
- Take care of your estate planning needs
- Look at other retirement saving/investment vehicles
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Health Insurance: |
| Although health insurance can not prevent a serious injury or illness, it can help you maintain financial stability.
A serious injury, disability or critical illness can impact a person's emotional well-being and financial security. And while it can be difficult to think about these things, you will make a smart decision by planning for the unexpected now.
Health insurance is required when an individual is ill or requires medical checkups. It can prevent the patient from being expected to pay out of pocket expenses towards medical bills because they do not have any health insurance. Without health insurance, one may even not be able to afford expensive medical services when needed.
Health insurance can help you and your loved ones to maintain the same lifestyle. It can pay the bills, secure better health care and allow you to focus on what's important—recovery
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Following are some of the benefits for why you should have a Health Insurance:- |
- Helps protect your income - Disability Income Protection Insurance
- Provides a monthly benefit to help maintain financial stability while you recover from a disability
- Long-Term Care Insurance
- Provides a daily benefit to help you offset the cost of care administered in a long-term care facility or at home
- Critical Illness Insurance
- Provides a lump-sum payment to be used in case of contingency
- Hospital Cash Plan
- Provides a daily allowance to help you pay during your hospital stay.
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| Mutual Funds: |
| For the individuals wanting to build their wealth over a long period, mutual funds can be the most important ingredient to their investment plan. It’s one of the most popular investment avenue in today’s dynamic and fast evolving markets.
Mutual Funds can help investors in virtually entering the equity market with hands-off approach. There is a wide range of Mutual Fund available in the market, each one having diverse specifications to meet your requirements.
Whether you simply have questions about how mutual funds work, or you're ready to develop a personalized mutual fund portfolio, At NJ Wealth, you'll enjoy access to a wide array of funds, foundation to build powerful and diversified portfolios, interactive planning tools as well as professional advice for Mutual Funds that's available any time. Whenever you plan invest in Mutual Funds, you'll find the advice and guidance you need to help you reach your investment goals. Investing your money with NJ Money can help move you closer to funding the dreams in your life.
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Mutual Fund Fundamentals |
Definition: |
| A mutual fund is an investment that pools money from many individuals and invests it according to the fund's stated objectives. Professional money managers make investment decisions on behalf of fund investors, buying and selling investments such as money market investments, bonds and stocks. |
Structure of Mutual Funds: |
In India, mutual funds function as trust created under the Indian Trust Act, 1882. There are three layers of mutual fund in India.
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Sponsors
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Trustee and
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Asset Management Company.
Sponsors work as Promoters of the company. They take responsibility of starting mutual fund business. Sponsors contribute initial capital (40% of net worth of AMC) and appoint Trustees and Board of Trustees. Board of Trustees act as guardians of investors and ensure that money invested by investors is used according to the objective of the scheme. Asset Management Company is the public face of fund management business. Sponsors and Trustees together form AMC and appoint Fund Manager. Fund manager with help of fund management team makes all investment decisions. |
How safe is investing in Mutual Funds? |
| In India mutual funds function as trusts. The sponsor of the fund appoints Board of Trustees who act as guardians of investor's money. The board or Trustee Company, as an independent body acts as the protector of the unit holder's money. These trustees ensure that investor's interest is safeguarded and that the AMC's operations and Fund Manager's actions are along the professional lines. To ensure independence of Board of Trustees, SEBI mandates a minimum of two-third independent directors on the board of Trustee Company.
Apart from Trustees, the entire mutual fund industry functions under the preview of SEBI. This structure and stringent guidance make investing in mutual funds safe and easy. Fund Managers also have to function within the broad framework and rules & regulations designed by AMC
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Investing in Mutual Fund: |
| Mutual funds are considered as favorable investment vehicle for individual investors particularly for investors who have limited resources available in terms of capital and ability to carry out their investment decisions. |
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