Droplet Wealth

As we beckon a new year, Droplet recommends 20 things that will help you turn a new page in your financial life. 1.  Have a monthly budget in place. 2.  Earn. Save. Spend. - Start early. Start immediately.  3.  Buy a term insurance covering 20 times of your salary. Helps your dependents largely during your absence. 4.  Have adequate medical insurance in place. You don't have to shell out cash in case of medical emergencies. 5.  Do not mix insurance with investments. 6.  Have atleast six months of your monthly expenses as contingency fund. 7.  Have a plan in place before buying a property. Such as location, accessibility, resources, so on. 8.  Don't buy a property due to peer pressure or societal pressure or for status. Buy only when you are ready and it is absolutely necessary. 9.   Buy real estate only if you have 30% cash for down payment. 10. Buy real estate only if you are confident that you would st...

Everything is associated with Risk. Even NPS does. What matters the most is how long you stay invested. We read an interesting article about NPS and thought of sharing it with our readers. Read on -  Pension funds have marginal exposure to the distressed firm - Many debt funds with the mandate to invest in corporate debt securities have been left saddled with bonds issued by the indebted IL&FS and Essel group companies, resulting in a sharp erosion in their net asset values (NAVs).  While the exposure of mutual funds has been making headlines, the holdings of other investment vehicles have been largely been under the radar. A  BusinessLine  analysis shows that pension funds under the National Pension Scheme (NPS) and Atal Pension Yojana also hold these stressed assets, albeit to a smaller extent.  Scheme-C of the National Pension Scheme invests primarily in the fixed income securities issued by corporates. The portfolios of the ‘Scheme-C’ from the tier...