Money Myths

Online purchase of insurance can fetch you a good deal :
- Premium may be lower due to reduction in insured value, change in plan features.
Holding funds for long term harnesses the power of compounding :
- Yes in principle however it is the profits that grow over time. In equity mutual funds you do not get a fixed return every year like your fixed deposit.
Online mega sales & special days offer fantastic discounts :
- Discounts are no better than those offered during routine sales. Please do not keep shopping mindlessly just buy what you need.
SIP is safe. You won’t lose your money :
- SIPs take advantage of equity market movements. You can lose as usual, 20-30% in the equity markets any time & even in SIPs.
The tax free corpus from insurance is a major benefit :
- Would you have got better returns if invested elsewhere? Get an unbiased professional opinion. If investment earns less than inflation (typical of insurance products) then it was a bad idea from the beginning itself.
Too many credit cards push you into a debt trap :
- The number of credit cards should not have any connection with your spending. Infact using wisely and repaying on time makes credit card one of the best things to have in your purse.
Small savings schemes offer fixed returns :
- Returns could be bond market linked & could change every quarter.

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