Abhishek Kumar in Business Insider India

Abhishek Kumar cautioned that a sudden rise in interest rates can hurt returns, so G-secs suit long-term goals. He also shared his view that rates were holding steady and might start to ease.

Abhishek Kumar suggested checking prepayment penalties before finalising a personal loan and keeping the monthly EMI below 35% of take-home pay.

Abhishek Kumar said the rate-hike cycle appears to have peaked unless inflation rises again, so people parking debt money for two to three years could consider fixing deposits at today's rates.

Abhishek Kumar said T+0 settlement would lower counterparty risk for all kinds of investors, since buyers must have funds and sellers must have shares in place before an order, and that it would strengthen investor protection.

Abhishek Kumar said such plans usually cost close to twice a pure term plan, and cautioned that the extra premium could earn more if invested elsewhere over the same period.

Abhishek Kumar explained that the proposal would let insurers set a premium threshold above which no surrender charges apply, leaving more money with policyholders who choose to exit a policy.

Abhishek Kumar suggested investors keep thematic funds such as this to no more than 10% of their portfolio, so that a theme that fails to play out does not cause a large fall in the overall portfolio.

Abhishek Kumar suggested that parents explain how they earn and spend money so children see it is limited, and that a child asking for several things be given a set budget and asked to choose.

Abhishek Kumar explained that ULIP charges are concentrated in the first five years, so leaving after the lock-in hurts, and said retirees should question the need for life cover and note that these plans do not provide regular income.

Abhishek Kumar said annuities are one route a risk-averse investor could look at for a steady income.

Abhishek Kumar explained that a large share of early premiums goes to agent commission, so early surrender is not available, and said that after about three years the surrender value tends to begin near 30% of premiums paid.

Abhishek Kumar suggested testing a retirement plan against tougher scenarios, such as higher inflation, weaker returns and a longer life, so that savings do not run out during the retirement years.

Abhishek Kumar said a risk-averse investor could consider annuities as one way to draw a regular income from investments.

Abhishek Kumar suggested raising EPF contributions to build a long-term debt portfolio meant for retirement, and pointed to gilt funds for medium- to long-term debt holdings and to overnight and liquid funds for short-term needs.

Abhishek Kumar cautioned that income from these bonds depends on where the rate moves, so investors should be comfortable with lower payouts if rates fall. He also noted that, unlike a debt mutual fund, they cannot be bought and sold.

Abhishek Kumar suggested planning for tougher scenarios, such as higher inflation, weaker returns and a longer life, so that savings do not run out during retirement.

Abhishek Kumar explained that robo-advisory tools cut costs and take human bias out of investment decisions by automating them, and cautioned that tools built on modern portfolio theory can falter when investors act irrationally in volatile markets.

Abhishek Kumar explained that money-back policies pay a large share of early premiums out as agent commission, which is why surrender is not offered in the first years and early surrender values are low. He suggested a term plan could provide cover at a lower premium.