Sum assured
Sum assured is
also known as life cover. The amount which a life policy holder nominee will
get at the death of the policyholder during the term of the policy is called
sum assured. Generally, the amount of sum assured should be 5-10 times of your
annual salary
Vesting Age
There are
different types of pension plans in insurance. The age at which you want to
start getting pension is called vesting age. An age of 55-60 is considered to be
the appropriate vesting age
Annuity
Annuity refers
to the annual payments on a monthly basis paid to the policyholder after you
cross the vesting age
Surrender Charges
Surrender
charges are levied by the insurer if you close the insurance policy before the
vesting age. Generally, one is advised to think twice before surrendering the
insurance policy
Mutual Funds
Mutual funds is
a pool of funds which is managed by a professional fund manager in equities,
debt and invests across various stocks and sectors and helps a retail investor
to diversify his portfolio. There are various kinds of mutual funds namely
large cap funds, mid cap funds, small cap funds, multi cap funds, thematic
funds
Net Asset Value (NAV)
Net asset value
is actually the price of a mutual fund scheme which is sum total of the market
value of all shares held in a stock portfolio divided by total number of units
outstanding. In other words, NAV is also called the book value of the mutual
fund
This article is
written by Mayank Gupta who runs a wealth management company www.wealthbazaar.in and provides portfolio
advisory services and financial
planning services
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Do come in and comment for any queries
Mayank