In a high-involvement asset like real estate, the ‘extra’ return on investment should be imperative
CNBC Personal Finance – Should I buy a separate health policy for my father or include in my family floater plan?
My father is senior citizen and I am planning to buy a health insurance policy for him.. Should I buy a separate health policy for him or include in my family floater plan?
Senior citizen find it difficult to get health insurance if they buy it for the first time after becoming senior citizens. Unfortunately this is the time when they need it the most. It is possible you should buy separate health insurance for them as the claims are likely over the next 5 – 10 years and any claims made will a hit the hunt available to you as well as the effective premium. In any case if you include them in your floater the premium will go up substantially and with a slightly more premium. You can buy a standalone policy for them.
You can consider buying Bank of Baroda Health Insurance policy of Rs.5 lakhs, which will cost you Rs.7,079 p.a for them. Please note, the policy is renewable up to 80 years of age and is available only to Bank of Baroda account holders.
Is it the right time to invest in Gold? Or should I stay invested in mutual funds?
If you want to invest in Gold then you can invest through Gold Funds or Gold ETFs. You should have a rational asset allocation to minimize the risk and optimize the returns on your investments. Exposure to Gold should be around 5% to 15% of your overall portfolio. Historically gold has provided you a shield against inflation. Investment in gold can help you preserve value of your investment. For 30 years period 1983 to 2013 the gold has given you a post tax rupee return of around 9.50%, which is slightly above the average inflation for the period. Gold prices fluctuate and hence you should invest systematically through the SIP route rather than in a lump sum. For SIP a Gold Fund is the most convenient. But if you want to invest one time then you can buy Gold ETF from the market.
Recommended Gold Funds: SBI Gold Fund, Reliance Gold Savings Fund
Recommended Gold ETF: Goldman Sachs Gold ETF Fund, R*Shares Gold ETF Fund