In the accompanying infographic, this classification is depicted as a tree. The root of the tree is all mutual funds. The first level of branches is the basic asset types. These are equity and debt (fixed income). There's also an others category in which we have placed gold funds since it doesn't fall in any of the other categories. Equity and fixed income funds are further sub-divided into smaller categories based on other characteristics.

And if you go by how fund companies describe their funds, you will end up with a large number of funds that appear to be unique or near-unique. You may feel there aren't too many other funds like them. However, this apparent uniqueness is a marketing imperative. It is something that has been invented by fund companies in order to appear different and not have to be compared with too many other funds from other fund companies.

However, an investor's interest is best served by keeping things simple. There are a few long-term investment needs that cannot be met by investing in a balance of funds that are mostly large-cap equity along with a little bit of mid-caps.

The best thing about having a good classification system for funds is to realise that making a choice is actually quite simple and a vast majority of funds can simply be ignored.

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Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

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What is Insurable risk

A risk is insurable if it's out of your control, financially measurable and random in nature.

It is important that its occurrence is random because if you can predict its occurrence, it ceases to be risk and becomes more of a certainty.

Take life insurance. It covers your dependants financially upon your death. Early death is a risk that is random in nature, but as you grow older its probability increases.

So, buying life cover at 30 is easy, at 50 you would have to pay higher premiums, and at 80, you won't be insured.

The risk also needs to be financially measurable. When you buy a life insurance policy, you need to choose a sum assured. This is the amount the insurer pays to your beneficiary on your death.

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FRANKLIN INDIA TAXSHIELD fund has an impressive longterm track record but, of late, its performance has dipped. The fund's stewardship has changed and so has its approach. It is not being run with any market-cap bias but it remains heavily invested in large-cap stocks.

The conservative large-cap focus--a stance carried forward from previous years--is partly the reason for the fund's under performance in recent years, compared to more aggressive peers. The fund still maintains heavy exposure in its top picks, with financials forming a bulk of its larger positions.

FRANKLIN INDIA TAXSHIELD has historically had a superior risk-reward profile in its category, but this has been partly eroded with the slip in its returns. However, the new team has proven capabilities to execute the strategy, and is likely to yield results in few years.

If you plan to use Aadhaar based e-KYC when buying insurance, here are some details that you should keep in mind.

KYC for insurance
For life insurance products, regulatory guidelines mandate that insurers conduct KYC before the sale of the policy in case of direct sales. If the sale is through other channels, such as online, KYC is to be completed within 15 days of the sale of the policy. These practices put the onus on the insurance companies to ensure that these products are not used for money laundering.

For non-life insurance products like motor and health covers, the anti-money laundering guidelines of the insurance regulator mandate insurers to do the KYC at the time of claims. Apart from this, KYC will apply only when the claim settlement is over Rs1 lakh.

The Unique Identification Authority of India (UIDAI) has specific regulations called Aadhaar (Authentication) Regulations, 2016, which explain the ways in which an individual's details can be verified from the Aadhaar database. One such method is verification through a one-time password, which is sent to the individual's registered mobile number. The entity requesting the authentication needs to get the OTP from the consumer and enter in the system to take the process forward. This means the authentication will not take place if the consumer does not share her OTP. This restricts unauthorised access to your demographic information.

Another method is through biometric authentication. In this the consumer has to provide biometric 'proof', say, finger print, at the respective device. The Aadhaar database gives access to the requesting entity only if the biometric matches the information available against the particular Aadhaar number in the database. This too helps prevent unauthorised access to information.

The insurance regulator has also stated that Aadhaar e-KYC can only be conducted with the consumer's permission.

Aadhaar E-KYC for insurance
While Aadhaar-based KYC authentication was allowed, the insurance regulator has now said that this alone will be sufficient to complete the process.

This means that you do not need additional documents as proof for details such as identity, date of birth or address, if you provide Aadhaar. However, if the photograph in your Aadhaar is not clear, or there is a mismatch (for example, in photo, or name), the insurer can ask for additional documents. So, if you plan to use the e-KYC Aadhaar method, ensure that the details in your Aadhaar database are correct and updated, and that the photograph is clear.

A smooth onboarding process can help further expand the use of insurance.

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1.       Investment Illustration since inception of this scheme, 27th May 1999.

2.       Portfolio as on 30^th September 2017.

1. Scheme information

 2.  Equity composition (percentage allocation)

3.Dividend history & dividend yield

4. Performance of the fund

*inception date 27^th May 1999

Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Tax Saver ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

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