Chartered Accountant Delhi

Investment Advisory Services

Bonds
Bond refers to a security issued by a company, financial institution or government, which offers regular or fixed payment of interest in return for borrowed money for a certain period of time.

Tax Saving Bonds:

Insurance
Insurance is increasingly becoming as an integral part of financial planning. Investors realise that Insurance is key to protecting financial health and that of families.

There are several insurance products in the marketplace to cater to different objectives, so A.Chandak & Co. will work with you to choose those plans that are suitable for your circumstances.

To plan your insurances better, we present a brief insight into the two broad categories under which Insurance falls:

The aim of taking out any insurance policy is to compensate you following a loss so that you are, in general, as well off - but no better off - than you were before the loss occurred. Thus, Insurance Planning and Management gains significance as a risk protection exercise for every investor, and calls for specialized counsel based on individual needs.

Our Insurance Management Advisor's primary role with you is to assess your insurance needs in the context of an overall wealth management plan. We will review your existing coverage, if any - as in some cases, what you have may be sufficient and in others additional coverage will be recommended.

Life Insurance
Most of the products offered by Indian life insurers are developed and structured around these "basic" policies and are usually an extension or a combination of these policies. So, what are these policies and how do they differ from each other?

Term Insurance Policy
A term insurance policy is a pure risk cover for a specified period of time. What this means is that the sum assured is payable only if the policyholder dies within the policy term. For instance, if a person buys Rs 2 lakh policy for 15-years, his family is entitled to the money if he dies within that 15-year period.

What if he survives the 15-year period? Well, then he is not entitled to any payment; the insurance company keeps the entire premium paid during the 15-year period.

So, there is no element of savings or investment in such a policy. It is a 100 per cent risk cover. It simply means that a person pays a certain premium to protect his family against his sudden death. He forfeits the amount if he outlives the period of the policy. This explains why the Term Insurance Policy comes at the lowest cost.

Whole Life Policy
As the name suggests, a Whole Life Policy is an insurance cover against death, irrespective of when it happens.

Under this plan, the policyholder pays regular premiums until his death, following which the money is handed over to his family.

This policy, however, fails to address the additional needs of the insured during his post-retirement years. It doesn't take into account a person's increasing needs either. While the insured buys the policy at a young age, his requirements increase over time. By the time he dies, the value of the sum assured is too low to meet his family's needs. As a result of these drawbacks, insurance firms now offer either a modified Whole Life Policy or combine in with another type of policy

Endowment Policy
Combining risk cover with financial savings, endowment policies is the most popular policies in the world of life insurance.

In an Endowment Policy, the sum assured is payable even if the insured survives the policy term. If the insured dies during the tenure of the policy, the insurance firm has to pay the sum assured just as any other pure risk cover.

A pure endowment policy is also a form of financial saving, whereby if the person covered remains alive beyond the tenure of the policy, he gets back the sum assured with some other investment benefits.

In addition to the basic policy, insurers offer various benefits such as double endowment and marriage/ education endowment plans. The cost of such a policy is slightly higher but worth its value.

Money Back Policy
These policies are structured to provide sums required as anticipated expenses (marriage, education, etc) over a stipulated period of time. With inflation becoming a big issue, companies have realized that sometimes the money value of the policy is eroded. That is why with-profit policies are also being introduced to offset some of the losses incurred on account of inflation.

A portion of the sum assured is payable at regular intervals. On survival the remainder of the sum assured is payable.

In case of death, the full sum assured is payable to the insured.
The premium is payable for a particular period of time.

Annuities And Pension
In an annuity, the insurer agrees to pay the insured a stipulated sum of money periodically. The purpose of an annuity is to protect against risk as well as provide money in the form of pension at regular intervals.

Over the years, insurers have added various features to basic insurance policies in order to address specific needs of a cross section of people.

General Insurance

Motor Insurance
Under the provisions of Motor Vehicles Act, all vehicles that ply in public places must have an insurance policy that at least covers "Third Party Liability" as specified under the Act.

Health Insurance
Well being is an overall feeling of being in good health and being in control of yourself, your situation and your finances. There's a lot you can do to ensure your well-being. But life, unfortunately, follows no fixed plan. Sudden illness or bodily injury can sometimes leave you financially hurt and highly stressed. A.Chandak & Co. Health insurance ensures quality health care for you. Now is the time to insure yourself and your family against rising health-care costs.

Travel Insurance
The world is a book, and those who do not travel read only a page says a popular adage. It is sheer pleasure to explore new vistas, new places and new people. Should you not make your journey hassle free and entirely safe? Say yes to A.Chandak & Co. Travel Health insurance and explore the world without a care.

Personal Accident Insurance
An accident can happen at any time. And it could leave you with permanent harm or temporary disability, both of which could affect your life and your family. Apart from cover for life and injury, A.Chandak & Co. offers other unique and unmatched features like Weekly benefit

Home Insurance
A.Chandak & Co. Home Insurance is a low cost protection plan for you. In addition to flexibility and low premium rates, A.Chandak & Co. also promises you convenience at every stage - while you apply, with documentation and while making claims. Only A.Chandak & Co. offers unique covers like the pet dog insurance and cancellation of vacation….

Office insurance
Your office is not just a workplace. It is a place where your dreams for a bright future get fulfilled. It is the second home for many of your employees. There's plenty that goes into running a professional establishment. There is a lot you sacrifice and sweat over before you taste success. There are the employees to be taken care of, infrastructure to be maintained and future goals to reach. But through all of this, have you thought about the hazards that could affect your establishment? A.Chandak & Co. Office Package Insurance has been designed anticipating these hazards to offer you a comprehensive policy so you can focus on your business goals and the growth of your establishment.

Shop Insurance
As a shop owner, you constantly worry about the hazards your shop and the contents within are exposed to. A sudden crisis at your place - a theft, an employee's infidelity, a fire accident, any disaster like these can severely hamper the running of the establishment. That is why you need a protective cover like the one A.Chandak & Co. Shop Package Insurance offers. Taking care of your business is our business. And we do it well.

Fixed Deposits
Fixed deposits in companies that earn a fixed rate of return over a period of time are called Company/Corporate Fixed Deposits. Financial institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits. Deposits thus mobilized are governed by the Companies Act under Section 58A. These deposits are unsecured, i.e., if the company defaults, the investor cannot sell the company to recover his capital, thus making them a risky investment option.

Benefits Of Investing In Company Fixed Deposits:

How To Choose A Company?
There are many companies operating in Company Deposit market. Investors, however, have to be careful while selecting a company for investing their hard earned money. Following is a checklist for selecting good companies:

Credit Rating/ Reputation and Size of Industrial Group:
The first thing to check out is the rating of the deposit scheme. Investors should avoid those companies, which have below 'A' rating. In case of manufacturing companies, it's however not mandatory to get rating. In this case investor should look at the background of promoters and financial track record. In manufacturing companies, reputation and size of industrial group to which the company belongs is the key criteria for safety and reliability.

Don't put all your eggs in one Basket:
The deposits should be spread over a large number of companies engaged in different industries. In this way an investor will be able to diversify his risk among various Industries/ Companies. Investors should not put more than 10% of their total portfolio in one particular company.

Period of Deposit:
Ideally the investment should be for 1 to 3 years depending upon the rate of interest.
Periodic Review of the Companies:

Saving Schemes

Post Office Monthly Income Scheme (POMIS)
An individual can open a Monthly Income Scheme either singly or jointly. A minor who has attained the age of ten years can also open a POMIS account. The features of this scheme are as under: