A Beginner’s Guide to Term Life Insurance

Term life insurance Finity

We hear about this type of plan so much on the television with random celebrities giving us advice on how crucial it is to get one, sometimes in the form of Yamraaj and sometimes this nosy friend who is ready to give you random advice. However, the truth is, if you have dependants and regardless what age you are at, term insurance is not just a convenience but a necessity too. But before we get into why is it worth. Let us understand the idea of a term plan.

4 Things You Ought to Know About Term Plans

The term insurance plan offers you a life cover. It is a simple life insurance plan that promises to pay a sum assured if the policyholder dies during the policy period. If he outlives the term there is no maturity benefit.

  1. Since a term plan doesn’t offer any return and only provides risk cover it is less expensive.
  2. The sum assured in the term plan is high. That is possible because it covers the risk, by fulfilling the need for protection.
  3. In term insurance, the nominee receives the sum assured in a lump sum, or in equal instalments or a contribution in case of the death of the person during the policy period.
  4. The policyholder has the option to customize the payment option based on the family needs.iIt can be a lump sum, monthly or combination of both.

Why Choose A Term Plan?

  1. It is the simplest form of life insurance to understand and maintain.
  2. Term insurance is a good idea for people who are building a family i.e. getting married or planning a family.
  3. It costs lesser initially when compared to an endowment plan.

3 Factors to Consider When Taking a Term Plan

  1. Coverage Amount: You need to buy insurance for all the debt. Each time you take a large loan – usually a home loan, sometimes on a personal loan – buy a term cover for the full amount for the loan that you take.
  2. When to get a term plan: Buy as soon as you have dependents or the possibility of getting dependants. Touching thirty is usually a good time to buy the cover. You are old enough to have a good income flow and not that old for covers to be too expensive. The cost of life cover rises exponentially as you age.
  3. How Does it work: Term insurance is the simplest life cover. You pay a premium and in a term, if the policyholder expires, the insurance company provides the cheque to the nominated. If its the long term plan, you will get your cover till your retirement.

Where Can You Get Term Life Insurance?

Simply download Finity app. Browse through our insurance section and choose Term Life Insurance to get a life cover in the comfort of simply wherever you are. You can even get a free callback from our insurance experts who will not only help you choose the appropriate policy but also help you make an informed decision.

RBI – To the Rescue; Yet Again!


Indian benchmark indices fell almost by ~1% this week.

While most media outlets quoted a collective disappointment among markets when the INR 20 Lakh Crore bazooka remained muted on explicit measures pertaining to large corporates and banks like the one-time loan restructuring. However, in our opinion, the market priced in over-exuberantly and the announcement did not quite match expectations (like almost every other time the Ministry of Finance announces measures/reforms)

Key Event of the week:

While investors continued to pray for a ray of hope, RBI’s follow on committee meeting & the decisions made by the committee seemed to contain the downturn – or at least, did not contribute to additional downward pressure.

Since the very inception of the pandemic, like every other Global Central Bank, even RBI did not hold back. With a slew of measures & reformatory announcements it ensured that spirits & economics continued to remain closer to buoyancy than difficulty.

Here’s a brief account of the latest basket of announcements made by the RBI.

Policy rates slashed by 40 bps to 4% and reverse repo by the same quantum to 3.35%.

Simplify: Repo rate is the interest rate at which RBI lends money to banks. The reduction in repo rate means that the banks can borrow money from RBI at cheaper cost and is expected to pass the benefit to their customers/borrowers by reducing the interest rate on their loans.

A lower lending rate typically should translate into an additional influx of liquidity into the economy, albeit given that the transmission happens effectively. The reduction in reverse repo rate makes it unattractive for commercial banks to deposit with RBI and nudge it towards lending. Banks are unwilling to lend and are parking as much as INR. 8.5 lakh crore with RBI, this reduction may lead to marginal increase in lending.

Loan moratorium will be extended by three months till August 31, making it a six-month moratorium.

Impact: Banks had been explicitly lobbying for an incremental 3-month moratorium given the already sluggish credit offtake and as businesses are yet limping towards full operations. The incremental moratorium came in as a mini victory for the bank lobby subject to a similar extension to NPA classification. This is a welcome move even for small businesses and individuals struggling with liquidity amidst the economic slump.

RBI announces special refinance facility of INR.15, 000 crore to SIDBI

Impact: The small industries and development bank of India plays an important role in longterm funding  equirements of small industries. At present, small industries are facing  difficulties in raising money from banks and this extension to SIDBI will help providing cushion to small industries.

Growth Projection by RBI

In the central bank’s own assessment, growth is likely to be negative in FY21 (contrary to the IMF’s last projection of 1.9 percent). According to RBI, even though the lockdown may get lifted by end-May with some restrictions, economic activity even in Q2 may remain subdued due to social distancing measures and the temporary shortage of labour. Recovery in economic activity is expected to begin in Q3 and gain momentum in Q4.

Key Takeaway: In short, RBI is leaving no stone unturned to prop up a sagging economy with lower rates and ease of money flow. It has perhaps done its bit well enough.

Corona Update

Corona Virus Vaccine From Moderna Shows Early Signs of Viral Immune Response: An
experimental vaccine from Moderna Inc. showed promising early signs that it can create an immune-system response in the body that could help fend off the new corona virus, according to sampling of data from a small, first human trial of the inoculation. A vaccine is considered a crucial step toward lifting social-distancing measures and safely reopening economies, schools and events around the globe.

This is not the first case, there were such 11 companies which are working on developing the vaccines and few of them has also cleared the Phase I trial.

Click on below link to read more about the Top 11 vaccine developments in progress:


Mutual Fund Category Winners this week:

Focus on geographical diversification as the post-covid world will throw selective winners in every country.
It could be a technology company in the US to a staples firm in India, a few will survive and grow and money will chase these few. The below performance chart hints towards the same.


Watch this space for our hand-picked strategies on the above themes.


While the economy may be in the doldrums, every market throws up winners and this market is no different. Investors first need to cut through the noise, stop focusing on the grim economic indicators and focus on the emerging winners for long term wealth creation.

Finsight (25thMay to 29th May 2020)


Nifty and Sensex corrected by 1.1% and 1.4% respectively for the week.

Weekly Capsule

– MPC comes out bearing gifts

RBI governor on Friday announced a 40 BPS cut in the repo rate and a 65 BPS cut in the reverse repo rate; this has resulted in an effective 115 BPS rate-cut since the start of nation-wide lockdown which currently is in the 3rd extension. The RBI also announced a further extension on moratorium given to loans of 3 months, taking the tally to 6 months. There has been a hike to the group exposure limit to banks from 25% to 30%, in an aid to crippling businesses.

– Moderna pharma’s data shows vaccine might be coming sooner than the street expectation.

Moderna pharma, a US-based clinical stage biotechnology company published its interim phase-I data for the vaccine candidate against COVID-19. The data includes blood samples of adults between the age 18-55 with a rigorous 43-day screening, the study showed a similar level of antibody generation in these adults as those seen in the people who has recovered from COVID19.

– US tightens the screw against China.

The United States resumed their trade war with China, this time taking solid steps and not just restricting to words. The move included blacklisting of 33 Chinese manufacturing companies which are source of majority of the government revenue from foreign lands being used as a military budget for the country. The move comes in mainly against the companies involved in data mining by the use of AI and facial recognition.

Nifty at glance


nifty details

Mutual Fund News:

Aditya Birla SL AMC Suspends fresh inflows in 2 of its debt funds: Aditya Birla Sun Life Mutual Fund has temporarily suspended fresh subscriptions and switch-in applications in Aditya Birla Sun Life Medium Term Plan and Aditya Birla Sun Life Credit Risk Fund. The move comes in to as a precautionary measure to safeguard the probable gains which existing investors will receive in the coming months, mainly from written-off papers of IL&FS which will be repaid partially in the coming months.


The markets have factored in the merits and demerits of fiscal and monetary stimulus announced by government and the RBI. The focus will be more upon the reopening of economy in India and rest of the world. Higher capacity utilisation and normalcy in general public behaviour will add comfort to the market. The tightening of geopolitical tensions between the USA and China would also be among the key developments to watch out along with spread of Covid-19.

Top 11 Vaccine Developments in Progress

Finity 2nd Image [Vaccine infographics]-07-07

Tools To Use On Finity for Personal Finance

Blog Post_Finity [Useful Tools]

Useful Tools To Use On Finity App for Personal Finance


Finity is a state-of-the-art, user-friendly and intuitive platform for all your mutual fund investments. It is easy to use and comes loaded with features and tools that help you to plan and make better investment decisions without any hassles. Here are some of the major tools and features that Finity features, so that you can invest conveniently.

Financial Health Checker: Diagnose Your Finance, on Your Own

Finity wealth

Just as you need a medical check-up regularly, a  diagnosis of your financial health is required, but is, unfortunately, more than often ignored. On this app, it takes only a few minutes to evaluate the elements your financial health that needs to be taken care of.

How Does the Financial Health Checker Work?

It is extremely easy to use and all that needs to be done is answer a few simple questions within this tool, to get your detailed financial health report. The report will give you not only the state of your finances but also suggest the next step to be taken to ensure that particular aspect of your financial health is treated in time.

Build Wealth Tool: Choose Your Investment Amount to Know Your Projected Wealth

Finity wealth

You have set an amount for investment in mutual funds in your mind but you have no idea how much are you going to get in return, over a point of time. Finity’s Build Wealth Tool does that projection for you.

How Does Build Wealth Tool Work?

This highly simple-to-use tool asks for your choice of investment  (SIP or one-time) and the amount that you plan to invest. Within seconds it projects your return based on time of investment. You can even choose the percentage of stocks and bonds you want to divide your mutual fund investment in and decide how much risk you are comfortable with.

Smart Recommendation Engine: A.I. Powered Built-in Mutual Fund Smart Selections 

The whole app is built on an engine that runs on an AI, to give you recommendations for plans that are best suited for your financial portfolio.

How Does The Smart Recommendation Engine Work?

This engine is built on an artificial intelligence algorithm that has been created through years of accumulated data and research, in the mutual fund market by financial experts and is intuitive enough to suggest the best plans that are suited for your financial history.

Finity wealth

Save For A Goal: Mutual fund Recommendations Based on Your Chosen Financial Goal

If you have a long-term financial goal that you need to save up for, you need to know the amount of investment needed to be made for you to be able to afford that goal. Finity’s Save For A Goal tool allows you to know the amount required to be invested and plan your investment accordingly.

How Does The Save For A Goal Tool Work?

It takes a matter of seconds to select your goal on this tool and it will not only project the amount that you need to save for your goal but the amount of investment that is necessary to be made. You can also toggle with your risk appetite and plan your investment to save your particular goal.

Tax Calculator: Calculate Your Tax Liability Based on Your Own Financial Portfolio

Finity wealth

This tool takes care of the overwhelming task of calculating your income tax liability for the fiscal year based on certain information that you provide.

How Does The Tax Calculator Tool Work?

The tool asks you a few basic questions and calculates your income tax liability for that year. It conveniently asks for your income and investment details to give you the complete picture of TDS. It also gives you the customised investment option to save on the remaining taxable amount in your income. 

Note: The estimated projected tax liability of this tool is as accurate as the information provided by you.


Risk Analyzer: Get Plans Suiting Your Risk Tolerance in Mutual Fund Investing

Finity wealth

Before you invest in mutual funds, it is essential to understand what kind of risk appetite can you handle. This tool allows you to figure out whether you are high, medium or low-risk investor based on which you can choose the plan.

How Does the Risk Analyzer Tool Work?

This tool asks a few questions about your financial history such as your liabilities and appetite for investment and projects the type of investor you are. This further allows this tool to show plans for investment that are suitable for your financial portfolio. 

Now that you know that our app can do more than provide you, investment options, it’s time to download the app and use it to its fullest potential.


Lessons for Investing to Learn from Irrfan Khan Movies

lessons to learn

The world lost Sahabzade Irrfan Ali Khan on 29 April 2020, a human more precious than Gold, on cinema and perhaps Titanium, when it comes to being a human. He was a good man, who proved that you could portray being the Indian Macbeth and an unflinching entrepreneur of a prehistoric theme park in a large filmography cut down suddenly with mortality. He had valuable lessons to teach, both off and on-screen with humility being at its forefront. However, he has also done some movies with very practical lessons in the world of investments. 

Top 4 Important Lessons for Investors to Learn from Irrfan Khan Movies

While it may be an odd observation, you will have enough proof by the time you complete reading this:

1. Be Patient For Good Returns: The unconventional and unconditional of love stories, Lunchbox is one of his best performances as a common man in India. His character waited actively to understand an absolute stranger remaining completely invested with the utmost patience. Blackmail, on the other hand, taught us the same lesson in the form of a black comedy but with a different perspective: how hasty decisions in finance can lead you nowhere but distress.


2. Choose Investment options with a long-term foresight: In Jurassic World, he literally portrayed an entrepreneur/investor, very passionate and optimistic about his investment. While that is indeed a lesson too we are concentrating on the aspect of him having the long-term vision of choosing the right people to invest in, for the park (who ultimately help save a lot of people) even though he died a brave death in the movie. The other movies with the same lesson have been repeated in the movie franchise Hindi Medium and Angrezi Medium in the form of family.

know your finances

3. Not all investments are special, but special investments can come from anywhere:  Paan Singh Tomar and Slumdog Millionaire in plot taught at least some of us, that it does not matter where we come from to do special things or make the right moves in investments. So when you are investing in an SIP as low as say Rs.100 in the mutual fund market, do not underestimate its eventual worth.

know your finances fisdom

4. You can be the most intelligent investor in the room, without making a noise: His characters in Piku, Life of Pi and Billu Barber, taught us that faith and perseverance is the key to unlocking successful investments but not make a hue and cry about it. In all walks of life, humility works longer and wondrously, likewise. The right investments will always yield good returns as long as there is stable growth is another lesson we can learn especially from Piku.

know your finances fisdom

In fact, Irrfan Khan is the perfect example of a great investment in the form of an actor, undeniable with his work in his country and beyond. We will miss his presence in our lives deeply but the lessons that he teaches us from being a good man to being one of the most influential people in India will stand as factual and not fiction.

Millennials and Investing in Gold

Millennials & investing in gold-08

The word millennial crops up in most contexts of the anguish to explain ‘Generation Y’, as they were earlier referred to as a bunch of people born post the baby boomer years who are significantly more sensitive and sensitized to the world around them and are being either too insensitive towards social norms and ideas being followed for generations. 

Millennials have often been considered to be the laziest and careless generation ever born because while the generations before the Millennials were hard-working and comparatively more sincere, they believed that ‘Necessity is the mother of invention’ which is very far from the truth. Millennials recognized very early in their lives that ‘laziness is the mother of invention’ in reality and that everything today is invented because we just do not want to take the extra-pain of practical choices.

While a lot of people see this as an adversary effect on humankind, millennials are indeed more sensitive, open-minded, and experimental when it comes to new ideas and implementation of new ideas. One such proof is their re-inventing gold as a currency, but increasing the access to it through information technology and innovation.

Gold is truly a millennials choice for investment

As a millennial, it cannot be denied that we want more than we have because we almost get what we want in today’s world. But gold still remains to be one of the rarest metals in the planet often believed by scientists and their theory that large amounts of gold in the form of an asteroid entered the Earth’s atmosphere, scattering itself across the World long long time ago. While a lot of skeptics find it hard to believe, people acquainted with the fictitious metal ‘vibranium’ may be aware that fictitious Wakandans found this invincible and almost magical metal in a similar fashion.

While gold will not turn you into a superhero with the feels of a wild feline, it surely is associated with wealth because it never loses value and keeps getting more precious instead. Unlike titanium or platinum which can draw parallels with adamantium from the character Wolverine being far stronger, the rarity of gold makes it worth a lot more. But why is it convenient for millennials again? 

Gold is now available to be purchased digitally, both for investment or just buying it for your wedding. Yes, on our app, you can literally buy gold for investment or for someone’s wedding and save over some time. A lot of millennials who are beyond the exuberance of gold invest in gold mutual funds as their choice of investment because never has gold been deprived of its financial value over time. Yes, there are even Gold ETFs and Gold futures available as a golden investment opportunity but as a Millennial, you would choose the most convenient option being Digital Gold. Also, the super-secretive visits to buy Gold from a store and then having to take it to the bank locker for the fear of being robbed is also taken care of with Digital Gold. Digital Gold on our app comes with a free locker from MMTC- PAMP who guarantee the safety of a Millennials Gold. 

Millennials are a more educated bunch of individuals and they want the best in everything including MMTC-PAMP’s assurance of the 99.99% purity of the 24K Digital Gold. Hence, Digital Gold is truly a millennials choice of investment because Vibranium and adamantium do not exist in reality and of course all the other reasons that make Digital Gold more convenient to invest in.

“ Digital Gold, Forever”

Decoding KYC for you – Back to the Basics

Decoding KYC fisdom

Imagine you are Bruce Willis sweeping across with your car across the city of Chicago trying to protect your generic pretty teenage daughter who has found the secret to a terrorist’s plan who has concocted a plan of world domination through KYC. Yes, you are absolutely right to think that KYC isn’t really that exciting initially and real-life is nothing remotely mirroring KYC in that fashion. Although today’s world is fighting a silent marketing war with information and big data, with forefront players being Google and Zuckerberg’s Facebook acquiring multiple IT products with access to user information one after the other, KYC has nothing to do with that.

But, don’t sadden your adventurous heart, because the KYC that we are talking about today is for investing, which is an adventure in itself. Investing is a quest for making our financial dreams come true and shouldn’t be considered anything less than an expedition you can carry out to meander through the world of mutual funds. But where does KYC or Know Your Customer fall into this jigsaw puzzle?

KYC: Your golden ticket to investing in Mutual Funds 

In the labyrinth of investing, mutual funds generally come with the option to choose the risk appetite you are comfortable with. So, it already is customized to the fact whether you are comfortable with being an Ant-Man with lower stakes or Captain America who has to constantly deal with ‘the world is at stake’, kind of situations. So, the true adventure is being explored by the fund managers of mutual funds but at the same time, you are definitely the one in the ride although reaping the benefits from it.

KYC or Know Your Customer is that one thing mandated by the SEBI organization in India that allows you to invest in mutual funds once you have completed it. While there are KYCs in more regular situations in our lives such as telecom services or payment services, investing also requires KYC to protect the interests of all the parties involved, starting from your financial security and income tax calculations, to Government’s interest in maintaining a log to the companies in between, whether it the mutual fund plan from a particular bank or financial institution or the platform where you are using to invest in.in other words, it helps to tremendously reduce the cases of fraudulent activity in a mutual fund market. 

So, how to get KYC done?

On our mutual fund platform, the KYC process is free, user-friendly, and takes about 7-10 minutes taking for granted that you have your basic documentation ready. Here are the steps to having it done on our platform.

  1. Open our App and go to the KYC completion process section.
  2. Fill in the personal details which are asked step-by-step
  3. Upload the documentation, which can be also done with the help of the camera integrated into our platform for your convenience.
  4. Upload an IPV video, where you basically take a video of yourself stating your name and that the video has been made for the purpose of IPV solely.
  5. The signature is easy to deal with as you will be expected to simply touch and add your signature on the screen and upload it.

Once you have provided all the information and uploaded all the required documentation IPV video and your signature the information will be sent for verification, however not pausing your investment process since once you have submitted your complete KYC, you are investment ready and can start enjoying the benefits and the adventures of mutual funds, whether it is in the form of a one-time mutual fund or a monthly SIP.

Kwame vs. Jafari: What Type of Goldminer Are You?

Goldminer are you


Highlight: Like life, even in investing, situations take turn for the worst before gliding into a zone of unprecedented fortune. This is perhaps how nature & markets ensure that the fortune favours only the bold and deserving. Think about it; only people who invested when nobody had the heart to buy and sold when everyone on the street wanted a piece of the pie, amassed huge wealth.

Times like now reminds me of a story. Obviously, it is more of an analogy than a story – but highly relevant to draw upon during times like now.

This narration refers to an episode that unfurled at a time when gold mining was not as commercialised as it was today and most mines (like the Kloof) was treated as a natural bounty and gold had meaningful value as a metal.

Kwame belonged to a family of economically poor yet hard-working people, somewhere in a small African village. He would always laze around while his parents and elder sibling would work as daylabour at nearby farms and  lantations. Kwame would always daydream about being rich and putting his family’s sufferings behind. As luck would have it, he once chanced upon an ancient scripture and map pointing towards what is today known as the Kloof gold mine in Africa. This mine was not very far from his village. One fine day, he set out on his expedition to claim his fortune.

Soon, he was at the mine. To his amazement, there were more who knew about this place and were already digging in separate designated patches. When he asked around, some said they’ve been digging since a couple of weeks and some said a couple of months – but surprisingly, none of them struck gold.

Kwame was a smart guy, he thought he could strike gold faster if he hired someone to help him excavate the mine. He hired a kid called Jafari from the nearby village and promised to pay him once they achieved their first milestone of excavating 5 ounces of gold. They continued to dig and drill through his patch of the mine for six weeks, but all in vain. The season changed; it was already monsoon and storm clouds hovered. It was getting difficult to weather the storm. Kwame finally thought to himself that he can no longer while his life away like the others have been doing since weeks & months and he decided to abandon Jafari & all his tools in the middle of a stormy night to return

The next day, Jafari sat heartbroken in the middle of spades, shovels and other digging tools but without a penny Kwame owed him. Since Jafari had already spent so much time away from home with the promise of getting back with some money, he did not have the heart to return empty-handed. With nothing better to do with his time, Jafari continued working on the mine patch for another four days – all through the storm. Almost as if the storm turned into an ally from being a foe, it started loosening up the tough rocks in the mine – in a way, helping Jafari dig faster. It was only a matter of time and Jafari struck gold. That was it. Jafari struck gold just after Kwame lost heart and right at the brink where most people would quit. Jafari was persistent and endured the pain with strong belief. After all, seemed like fortune definitely favoured the bold. Jafari’s life turned for the better, forever. All because he decided to stay the course, endure and continue in a disciplined manner.

Kwame was, in fact, smart enough to know where to dig and how to dig. However, his biggest mistake was losing heart right in the middle of his venture and being impacted by what’s happening to others.

Little did he realise that he was perhaps only a couple of days away from mining the largest gold deposit in a 100-mile radius.

Like the episode of Kwame, Jafari and the Kloof mine, equity markets welcome millions of new investors almost daily and continues to put them to test. While a handful out to be Kwame just too soon, a few continue to endure the markets like Jafari. The end being none different than the fate of Kwame & Jafari in the story above. The Jafaris go on to be known as “lucky” while the story of Kwames are used to monger fear.

Here is a crude illustration of how the Jafaris (rational long-term investors) and Kwames (naïve investors) of the market invest and the journey they go through:


naive investors

Investor Takeaway:

Be a Jafari, not a Kwame. Keep your head down; ignore the chaos. Focus on your financial plan, asset allocation & discipline. Market cycles are called cycles for a reason.

Why Pick A Side When You Can Win at The Game?

when you can win

“You pay a very high price in the stock market for a cheery consensus”

-Warren Buffet, Forbes magazine (1979)

TL;DR: For every seller who feels a stock price is overvalued, there’s a buyer who believes it is undervalued. The demand-supply keep tugging till they start trading within a narrower range. The only one winning is the one who continues to bet on the game instead of any side in this game of tug-of-war.

economies 1

But, most investors focus on extrapolating instead of considering the probability of mean reversion.

Extrapolation is another technical term which simply means: We find the trend and extrapolate it.

Mean reversion is the expected result. But we don’t estimate mean reversion. Rather, our instinct is to find a trend and extrapolate it. Psychologically we think it will always be winter for some companies and for others it will always be summer. Eventually, fall follows summer and spring follows winter – which, though counter-intuitive, most seem to miss.

What causes mean reversion? How does beaten-down companies’ stock price rise over a period of time?

Benjamin Graham once referred to this as “one of the mysteries of our business”. The microeconomic answer is rather simple.

Undervalued assets and profits attract investors. Value investors and other fundamental investors start to buy stocks and so push up the stock prices. High prices and expensive assets cause investors to sell. The continuous selling pushes down the stock prices.

While the crowd imagines the downwards trend in the stock market will continue, value investors and contrarians or rather smart investors continue to stay on the course and grab these opportunities. This push-pull continues till the prices reach a range where there’s consensus of it being the fair price range, thus creating an equilibrium; or in other words – reverting to the mean.

Investor Takeaways:

• Mean reversion is a part and parcel of investing in equities, in the long run it all moves to a range which includes the fair price point of the stock.
• Mean reversion enables a great opportunity for long term investors to purchase the asset at a lower cost and bring down the average cost of acquisition.
• Mean reversion does not mean that at a certain given point a beaten down stock will resurrect or a blue-chip company will go down the drain.
• Mean reversion cannot be timed, but investors can avail benefits out of it if they continue to systematically invest through the period.