I plan to invest in mutual funds and have heard that if I invest through a systematic investment plan (SIP), I am not required to pay any entry load. Is it correct? |
P. Sinha, Jamshedpur |
SIPs usually come without loads, though, some mutual fund houses have decided to charge an entry load on their SIPs. So, check before investing. However, loads should not be the only criteria for investment and you should look at other important parameters before selecting a fund. |
Cover drive |
All the banks who call me up to sell credit cards talk about insurance cover on such cards. What are the various types of insurance cover available through these credit cards? |
Deepti Sanyal, by e-mail |
surance cover, both personal and on the articles purchased on the card, has now become a standard for credit cards. However, the amount and the type of insurance cover provided is largely determined by the type of credit card owned (whether gold, silver or executive). Typically, gold cards typically carry the highest insurance cover for its members. The types of cover generally provided are personal accident insurance, baggage cover and purchase protection cover. |
Quick buck |
I am 63 years old and still in service. Under the new income tax laws, one can claim exemption of Rs 1 lakh under section 80C. I do not want to invest in PPF or NSC due to long lock-in periods. Please suggest other alternatives where I can keep money for smaller periods. |
S. K. Deb, by email |
You can invest in equity-linked savings schemes of mutual funds, though it also has a lock-in period of three years. You can also opt for life insurance policies, but again the minimum tenure for those are five years. |
For the good old days |
I have completed 65 years on June 1, 2005. Shall I get the benefit of senior citizenship while filing income tax returns for the financial year 2005-06? |
Dr A.N. Mukherjee, Jamshedpur |
Yes, you will get the status of a senior citizen and the corresponding income tax benefits from this fiscal. |
If you have any queries about investing or taxes or a high-cost purchase you are planning, mail to: btgraph@abpmail.com, or write to: Business Telegraph, 6 Prafulla Sarkar Street, Calcutta 700 001. |