The Term NAV or Net Asset Value is used by investment companies for measuring net assets. This value is calculated by subtracting liabilities from the value of a fund’s securities and other items of value and dividing this from the number of outstanding shares. This value is commonly used in newspaper mutual fund tables for allocating the price of per share for the fund. NAV is used in relation to collective investment schemes and it may also be used as a synonym for the firm’s book value.
Net Asset Value is calculated every day when the share market takes place and the closing market value of all securities owned with all other assets for example cash, subtracting all the liabilities and then dividing the result (total net assets) with the total number of outstanding shares. Calculation of mutual fund NAV is very simple. It is typically calculated on a per-share basis. The formula for calculation is as under: -
NAV = (Market Value Of All Securities Held by Fund + Cash and Equivalent Holdings - Fund liabilities)/ Total Fund Shares outstanding
Net Asset Value of the fund will change daily as the value of the securities of a fund, cash held, liabilities and the numbers of shares outstanding fluctuate. For example, if a fund had net assets of Rs.50 lakh and there is one lakh shares of the fund, then the cost of per share will be Rs.50.00.
Monday, April 13, 2009
Thursday, April 9, 2009
Travel Insurance - What To Ask Before Buying It
Travel insurance is essential for those people who frequently travel for their business trip or world tour. This insurance plan brings many advantages for the policyholder such as medical expenses, personal accident, loss of delay of baggage or passport, financial emergency assistance, cancellation of trip or flight and much more. Travel insurance gives a protection cover against loss, injury, damage or expense caused by accident, sickness, theft etc. during the insured person’s trip. It can be arranged at the time of booking of a trip cover.
Today there are numerous travel insurance plans provided by different insurance companies. So an individual should understand different insurance policies. You should select that policy that is only for the number of the days of the trip. This is charged usually on the slab basis. You don’t just compare the prices of the insurance policy, but also ask your Insurance expert for the benefits of the cover, the exclusions on the cover and other features. You should give importance on the claims procedure and the cashless facility. Before purchasing any insurance policy, you should understand the terms and conditions of the policy. You can also check that is that cover for terrorism, hijack distress allowance etc. or not. In other words, if you consider all these things, you can select the best insurance plan for you.
Today there are numerous travel insurance plans provided by different insurance companies. So an individual should understand different insurance policies. You should select that policy that is only for the number of the days of the trip. This is charged usually on the slab basis. You don’t just compare the prices of the insurance policy, but also ask your Insurance expert for the benefits of the cover, the exclusions on the cover and other features. You should give importance on the claims procedure and the cashless facility. Before purchasing any insurance policy, you should understand the terms and conditions of the policy. You can also check that is that cover for terrorism, hijack distress allowance etc. or not. In other words, if you consider all these things, you can select the best insurance plan for you.
Monday, April 6, 2009
Employee’s Deposit Linked Insurance – What Is It?
All employees, who come under the Employee’s Provident Fund and miscellaneous Provision Act, 1952, can have a statutory liability to subscribe to Employee’s Deposit Linked Insurance 1976 that provides the benefits of life insurance to all the employees. Under this scheme, the insurance benefit is equal to the average balance to the credit of the deceased employee in the Provident Fund from the last 12 months. In EDLI, every company will give 0.50% contribution of each employee’s salary. So, if you are drawing Rs.10, 000 per month, then your company will pay Rs.50 a month towards your insurance policy.
But what are the advantages of you to take this plan. The main benefit is that each employee is covered for a sum assured that ranges between 5,000 to 62,000 which depends on your current salary and service. Employee’s Deposit Linked Insurance also gives the double accident benefit that can be allowed to the extent of the sum assured for an extra premium at the rate of Rs.0.75 per thousand sum assured per annum. But it should not be more than Rs.4.5 lacs. This insurance plan gives assurance benefits that means a payment linked to the average balance in the PF account of an employee. If you are paying provident fund from your salary, then you are eligible for life insurance under this scheme.
But what are the advantages of you to take this plan. The main benefit is that each employee is covered for a sum assured that ranges between 5,000 to 62,000 which depends on your current salary and service. Employee’s Deposit Linked Insurance also gives the double accident benefit that can be allowed to the extent of the sum assured for an extra premium at the rate of Rs.0.75 per thousand sum assured per annum. But it should not be more than Rs.4.5 lacs. This insurance plan gives assurance benefits that means a payment linked to the average balance in the PF account of an employee. If you are paying provident fund from your salary, then you are eligible for life insurance under this scheme.
Thursday, April 2, 2009
Annuities – Plan for Your Future
Today, annuity is one of the most popular investment products. This is a contract between an insurance company and the insured person in which you make a lump-sum payment or series of payments. In return, the company will agree to make periodic payments to a policyholder beginning immediately or some future date. These insurance plans offer tax-deferred growth of earnings and death benefits. We can divide these annuities into two types i.e. fixed and variable.
In this fixed annuity, the insurance company gives a guarantee that an individual will earn a minimum Interest rate at the time when his account is growing. The insurance company also gives a guarantee that the periodic payments will be a guaranteed amount in one’s account. These payments may be for a particular time of period such as 10 years, 20 years etc.
Whereas in the variable annuity, a person can choose to invest his purchase payments from among a range of different investment options specially mutual funds. The return rate on the purchase payments and the periodic payment’s amount one will receive eventually and it depends on the performance of the investment options which you have selected. Variable annuities are the securities that are regulated by the SEC but fixed annuities are not. At last, I suggest you to choose the best annuity options according to your requirements.
In this fixed annuity, the insurance company gives a guarantee that an individual will earn a minimum Interest rate at the time when his account is growing. The insurance company also gives a guarantee that the periodic payments will be a guaranteed amount in one’s account. These payments may be for a particular time of period such as 10 years, 20 years etc.
Whereas in the variable annuity, a person can choose to invest his purchase payments from among a range of different investment options specially mutual funds. The return rate on the purchase payments and the periodic payment’s amount one will receive eventually and it depends on the performance of the investment options which you have selected. Variable annuities are the securities that are regulated by the SEC but fixed annuities are not. At last, I suggest you to choose the best annuity options according to your requirements.
Sunday, March 29, 2009
Tips for Finding the Best Travel Health Insurance Cover Online
Are you going on a business trip or on a holiday out of country? Whatsoever your purpose may be, international travel may occur lots of risks. If you need a treatment in other country but you do not have sufficient money, you will be facing with another difficult situation. Travel insurance may give you great help in your emergencies. You should cover yourself with this insurance when you are planning to go abroad.
An insurance company tries to offer you the best travel insurance cover. Now-a-days, you can compare various plans and buy online the best plan. There are numerous websites where you can compare all the insurance policies that are available in the market. Some insurance company will offer you the insurance plan where you need not to do any paperwork and no medical test required and you will get this policy immediately. But you should remember that when you apply for the plan, you should available in the country itself. You should also ensure whether your insurance policy cover the medical help or not.
Many reputed insurance company offer the best coverage at the best Insurance rates. These plans give coverage against unforeseen circumstances and medical emergencies in abroad. So I suggest you to keep an eye on all these points that may help in getting the Travel insurance plan
An insurance company tries to offer you the best travel insurance cover. Now-a-days, you can compare various plans and buy online the best plan. There are numerous websites where you can compare all the insurance policies that are available in the market. Some insurance company will offer you the insurance plan where you need not to do any paperwork and no medical test required and you will get this policy immediately. But you should remember that when you apply for the plan, you should available in the country itself. You should also ensure whether your insurance policy cover the medical help or not.
Many reputed insurance company offer the best coverage at the best Insurance rates. These plans give coverage against unforeseen circumstances and medical emergencies in abroad. So I suggest you to keep an eye on all these points that may help in getting the Travel insurance plan
Wednesday, March 25, 2009
Give Protection To Your Family With Whole Life Insurance
Whole Life Insurance gives a protection of whole life to the insured person from when you have purchased the policy until he dies. This life insurance is also known as permanent life insurance. If an individual pays his all insurance premiums, his policy will never cancelled. This insurance plan protects you for the whole life not for some particular time of period. It also provides the guaranteed minimum rate of return on your cash value of proportion. If you want to cancel your policy after some time, then your insurance company will surrender the cash value to you. You can also take a loan on the cash value of the loan.
I have discussed this insurance plan with my insurance agent. He understands my requirements and needs and suggests me to take Whole Life Insurance policy. I want to purchase a long term plan that give me and my family protection whole my life. If any case I will die before completing 100 years, my family will get the face value that is also known as death benefit. If I complete 100 years, then Insurance Company will give me the face value in a lump sum.
In Whole Life Insurance, one has to pay low premium as compare to other plans such as ULIPs etc. The cash value of this insurance plan is considered as liquidity that is useful for investment capital. By taking, I also got some rebate from Income Tax under Section 80 C.
I have discussed this insurance plan with my insurance agent. He understands my requirements and needs and suggests me to take Whole Life Insurance policy. I want to purchase a long term plan that give me and my family protection whole my life. If any case I will die before completing 100 years, my family will get the face value that is also known as death benefit. If I complete 100 years, then Insurance Company will give me the face value in a lump sum.
In Whole Life Insurance, one has to pay low premium as compare to other plans such as ULIPs etc. The cash value of this insurance plan is considered as liquidity that is useful for investment capital. By taking, I also got some rebate from Income Tax under Section 80 C.
Wednesday, March 18, 2009
Ways to Select The Right Insurance Policy
In this financial period, everybody wants to secure himself. For this, he invests his earned money at the right place. Some people deposit their money in banks or PPF accounts and some of them invest money in various insurance plans. These insurance plans not only secure one’s life, but also it also provides some rebate in income tax too under section 80C.
There are lots of insurance plans available in the insurance sector. The people who want to invest in insurance sector, he gets confused in choosing the right Insurance plans. Normally, I always get confused in it that which is the best one? So I generally focus on these factors such as what are my requirements. Before purchasing any insurance plan, one should decide one’s requirements. Afterwards, one should go for purchasing the Insurance plan. For selecting the policy, you can also consult with the experienced agent. In this, an insurance agent may help you in designing your Insurance portfolio. He understands your requirements and gives you the perfect suggestion for that. But you should not rely on these agents because they get the high commission on selling their insurance products. So you should compare all plans provided by various companies. Different companies provide different benefits on insurance policies.
Thus, if you consider all these things before purchasing any insurance policy, this may really help you for getting the perfect Insurance plan. By this, you can give your family a security from uncertain circumstances and also can get some deduction from Income Tax Department.
There are lots of insurance plans available in the insurance sector. The people who want to invest in insurance sector, he gets confused in choosing the right Insurance plans. Normally, I always get confused in it that which is the best one? So I generally focus on these factors such as what are my requirements. Before purchasing any insurance plan, one should decide one’s requirements. Afterwards, one should go for purchasing the Insurance plan. For selecting the policy, you can also consult with the experienced agent. In this, an insurance agent may help you in designing your Insurance portfolio. He understands your requirements and gives you the perfect suggestion for that. But you should not rely on these agents because they get the high commission on selling their insurance products. So you should compare all plans provided by various companies. Different companies provide different benefits on insurance policies.
Thus, if you consider all these things before purchasing any insurance policy, this may really help you for getting the perfect Insurance plan. By this, you can give your family a security from uncertain circumstances and also can get some deduction from Income Tax Department.
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