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Mint
27-05-2025
- Business
- Mint
How divorce settlements affect your credit score? What you need to know
Divorce is a financial change and also an emotional one, and it may affect a person's financial situation for several years to come. One of the most overlooked elements is, of course, the impact on a person's credit history from the financial decisions made during or after a separation. In practice, absent the proper legal severance, loans, EMIs, and other financial relationships live on. And, if these financial relationships are not dealt with properly, these financial obligations can create missed payments, increase each party's debt-to-income ratios substantially, and ultimately lower both parties' credit scores. Divorce is not a legitimate reason for banks or NBFCs to terminate a joint loan on the individual's behalf. In other words, if you signed an agreement for the loan jointly with your spouse, you are legally required to repay or restructure the loans together for personal loan, auto-loan, or house loan commitments. Alimony or maintenance payments are a significant part of a divorce settlement. Consistently following through on these obligations is a great way to show the paying partner he/she fulfils their responsibilities in a financially responsible manner. If it is structured correctly, these payment rates have no negative effect on the credit profile; in fact, consistently making payments may show future lenders that you are credit worthy. Swapnil Aggarwal, Director of VSRK Capital, quotes that, 'A key financial aspect of divorce is alimony and maintenance. For the paying party, these obligations require careful planning. When managed sensibly, they don't necessarily harm credit records. Timely payments can reflect financial discipline and positively influence credit history. However, if not planned properly, they may impact loan repayment ability or increase the debt-to-income ratio.' He explained the impact on the receiving party also by stating, 'Alimony can improve financial stability. A lump-sum amount, if invested wisely in mutual funds, can generate regular income. This can enhance the receiving party's credit profile and loan eligibility altogether. When handled with financial discipline, divorce settlements can offer both parties an opportunity to rebuild and strengthen their financial future.' Indian spouses commonly share credit cards. If, for example, a credit card holder does not remove their ex-spouse as an authorised user, the card could be charged, maxed out and even go into default. It is the card holder whose credit score is impacted. The mortgage could remain in both parties' names unless refinanced, even when one partner takes ownership of the house. If the new single holder fails to pay the mortgage, it will affect both credit scores. Get a credit report from each of the major bureaus and check it. Don't rely on a court judgment; look into refinancing or closing joint loans. Speak with banks to change your responsibilities and status. Unused cards attached to your ex should be frozen, and the permitted users removed. During the transfer, you should set up auto-pay or alerts for your EMIs, so you don't miss any. In conclusion, divorce not only terminates a relationship, it also triggers a financial aftershock in India, as families often share wealth. It is reasonable to protect your credit score at this stage; it is not selfish. Because still, your credit history will have a bearing on your financial future. Disclaimer:Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
Mint
12-05-2025
- Business
- Mint
Sensex's 2700-point rally adds ₹13 lakh crore to investor wealth: Where should smart investors put their money now?
Indian equities rebounded sharply on Monday, May 12, reversing Friday's losses amid easing geopolitical tensions and renewed global optimism. The benchmark indices posted their best single-day gains in months, buoyed by a ceasefire between India and Pakistan, hopes of de-escalation in global conflicts, and encouraging trade talks between the US and China. The BSE Sensex jumped 2,709 points, or 3.4 per cent, to hit the day's high of 82,163.49, while the Nifty surged 844 points, or 3.5 per cent, to 24,852.15. With the rally, the total market capitalisation of all listed companies on the BSE rose by ₹ 13.46 lakh crore, touching ₹ 430.47 lakh crore. The rally followed positive news over the weekend, as India and Pakistan agreed to a ceasefire after four days of intense cross-border military escalations. This truce, although fragile, held through Sunday, reducing investor anxiety that had built up due to the conflict—the most severe in decades. Investor sentiment was also lifted by global developments, including the announcement of fresh tariff negotiations between the US and China in Geneva and peace talks between Russia and Ukraine, scheduled in Istanbul. These factors helped boost confidence across global markets and encouraged risk-on trades in India. 'The market is trading higher today, driven by a wave of favourable geopolitical developments that have underpinned overall investor optimism,' said Swapnil Aggarwal, Director at VSRK Capital. He noted that the India-Pakistan ceasefire was key in reducing regional uncertainty. Simultaneously, diplomatic steps between Russia and Ukraine, and renewed US-China dialogue, suggested the potential for broader global stability. 'Combined with these international cues, the domestic macro environment—driven by strong mutual fund flows and an upgrade to India's sovereign credit outlook—further fuelled market gains,' he added. While Monday's gains were substantial, market experts caution against complacency, especially given the temporary nature of geopolitical truces. Manish Goel, Founder and MD of Equentis Wealth Advisory Services, emphasised India's macroeconomic resilience amid recent volatility. 'Fundamentals of our country are very strong. Recent inflation and PMI data reaffirm this strength,' he said, acknowledging that border tensions and global trade concerns had heightened uncertainty in recent weeks. He advised investors not to be rattled by short-term corrections. 'History shows markets correct nearly every year yet recover, often swiftly. Investors who treat these dips as buying opportunities, not exit signals, tend to benefit the most,' Goel added. His strategy: Maintain a 10 per cent allocation to cash or low-volatility assets to capitalise on steep corrections. 'It's not about timing the market—it is about being prepared to act when it matters most.' VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the India-Pakistan ceasefire has cleared the way for a sharp rally in equities, with foreign institutional investors (FIIs) likely to return in full force. He pointed out that FII buying had been consistent for sixteen straight sessions until Friday, when the border tensions escalated. 'Domestic macros like expectations of high GDP growth, earnings revival in FY26, declining inflation, and interest rates augur well for a continued rally,' he said. According to Vijayakumar, large-cap stocks remain the primary focus for institutional investors. He listed ICICI Bank, HDFC Bank, Bajaj Finance, RIL, L&T, Bharti Airtel, Ultratech, M&M, and Eicher Motors as potential leaders of the current rally. He also highlighted midcap IT and digital stocks as promising sectors in the near term. However, he cautioned that pharma stocks may face near-term headwinds following a US policy announcement aimed at reducing drug prices, which could affect export profitability. Commenting on global trade dynamics, Vijayakumar said a potential US-China trade deal would benefit the global economy overall, although it might disappoint Indian exporters who had hoped for bilateral progress with the US ahead of China. Overall, Monday's market rally was a powerful reflection of how quickly investor sentiment can shift when geopolitical risks ease and global macroeconomic prospects improve. With a ceasefire in place, global peace talks underway, and renewed trade negotiations raising hopes for reduced friction, equity markets found fresh momentum. While volatility may persist due to the evolving nature of these developments, analysts continue to see long-term strength in India's economic fundamentals. Investors, they suggest, should use corrections as opportunities and remain focused on high-quality companies poised to benefit from structural growth trends.
Mint
12-05-2025
- Business
- Mint
Sensex's 2700-point rally adds ₹13 lakh crore to investor wealth: Where should smart investors put their money now?
Indian equities rebounded sharply on Monday, May 12, reversing Friday's losses amid easing geopolitical tensions and renewed global optimism. The benchmark indices posted their best single-day gains in months, buoyed by a ceasefire between India and Pakistan, hopes of de-escalation in global conflicts, and encouraging trade talks between the US and China. The BSE Sensex jumped 2,709 points, or 3.4 per cent, to hit the day's high of 82,163.49, while the Nifty surged 844 points, or 3.5 per cent, to 24,852.15. With the rally, the total market capitalisation of all listed companies on the BSE rose by ₹ 13.46 lakh crore, touching ₹ 430.47 lakh crore. The rally followed positive news over the weekend, as India and Pakistan agreed to a ceasefire after four days of intense cross-border military escalations. This truce, although fragile, held through Sunday, reducing investor anxiety that had built up due to the conflict—the most severe in decades. Investor sentiment was also lifted by global developments, including the announcement of fresh tariff negotiations between the US and China in Geneva and peace talks between Russia and Ukraine, scheduled in Istanbul. These factors helped boost confidence across global markets and encouraged risk-on trades in India. 'The market is trading higher today, driven by a wave of favourable geopolitical developments that have underpinned overall investor optimism,' said Swapnil Aggarwal, Director at VSRK Capital. He noted that the India-Pakistan ceasefire was key in reducing regional uncertainty. Simultaneously, diplomatic steps between Russia and Ukraine, and renewed US-China dialogue, suggested the potential for broader global stability. 'Combined with these international cues, the domestic macro environment—driven by strong mutual fund flows and an upgrade to India's sovereign credit outlook—further fuelled market gains,' he added. While Monday's gains were substantial, market experts caution against complacency, especially given the temporary nature of geopolitical truces. Manish Goel, Founder and MD of Equentis Wealth Advisory Services, emphasised India's macroeconomic resilience amid recent volatility. 'Fundamentals of our country are very strong. Recent inflation and PMI data reaffirm this strength,' he said, acknowledging that border tensions and global trade concerns had heightened uncertainty in recent weeks. He advised investors not to be rattled by short-term corrections. 'History shows markets correct nearly every year yet recover, often swiftly. Investors who treat these dips as buying opportunities, not exit signals, tend to benefit the most,' Goel added. His strategy: Maintain a 10 per cent allocation to cash or low-volatility assets to capitalise on steep corrections. 'It's not about timing the market—it is about being prepared to act when it matters most.' VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the India-Pakistan ceasefire has cleared the way for a sharp rally in equities, with foreign institutional investors (FIIs) likely to return in full force. He pointed out that FII buying had been consistent for sixteen straight sessions until Friday, when the border tensions escalated. 'Domestic macros like expectations of high GDP growth, earnings revival in FY26, declining inflation, and interest rates augur well for a continued rally,' he said. According to Vijayakumar, large-cap stocks remain the primary focus for institutional investors. He listed ICICI Bank, HDFC Bank, Bajaj Finance, RIL, L&T, Bharti Airtel, Ultratech, M&M, and Eicher Motors as potential leaders of the current rally. He also highlighted midcap IT and digital stocks as promising sectors in the near term. However, he cautioned that pharma stocks may face near-term headwinds following a US policy announcement aimed at reducing drug prices, which could affect export profitability. Commenting on global trade dynamics, Vijayakumar said a potential US-China trade deal would benefit the global economy overall, although it might disappoint Indian exporters who had hoped for bilateral progress with the US ahead of China. Overall, Monday's market rally was a powerful reflection of how quickly investor sentiment can shift when geopolitical risks ease and global macroeconomic prospects improve. With a ceasefire in place, global peace talks underway, and renewed trade negotiations raising hopes for reduced friction, equity markets found fresh momentum. While volatility may persist due to the evolving nature of these developments, analysts continue to see long-term strength in India's economic fundamentals. Investors, they suggest, should use corrections as opportunities and remain focused on high-quality companies poised to benefit from structural growth trends. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
India Today
07-05-2025
- Business
- India Today
ULIPs, mutual funds or stocks: What's the best for long-term wealth creation?
When it comes to building wealth over the long term, people often come across three popular investment options: ULIPs (Unit Linked Insurance Plans), mutual funds, and stocks. But which one is truly the best for creating wealth over time? Let's break it down in simple terms. UNDERSTANDING ULIPs: A MIX OF INSURANCE AND INVESTMENT ULIPs are a mix of insurance and investment, meaning a part of your premium goes towards life insurance, while the rest is invested in various funds, like equity or debt. The key advantage of ULIPs is the insurance coverage that comes along with the investment. However, they have charges like mortality costs, higher fund management fees, and fund allocation fees. According Manish Kothari, CEO & Co-Founder, ZFunds, 'For ULIPs, the associated costs like mortality cost, higher fund management charges, higher fund allocation charges eat into investor savings. Also, ULIPs come with a minimum 5-year lock-in, making liquidity a challenge.' STRICT TERMS AND LIMITED FLEXIBILITY WITH ULIPS Also, ULIPs have stricter terms. 'Once you go in for a ULIP plan, you need to keep paying premiums without fail for three years or more before you can even take a withdrawal,' said Swapnil Aggarwal, Director, VSRK Capital. He added, 'ULIPs do not have the option to switch funds or AMC as frequently as mutual funds, either. You are well and truly stuck once you opt for a ULIP plan, and that is quite limiting during times of uncertainty in the markets.' STOCKS: HIGH POTENTIAL, BUT MORE RISK On the other hand, stocks are shares of companies listed on the stock market. Investing in stocks means you directly own a part of a company. Stocks can offer some of the highest returns over time, especially if you invest in growing companies, but they also come with more risk. Stock prices can be volatile, and short-term market fluctuations can lead to losses. Manish Kothari stated, 'For stocks, it is essential to plan the entry and exit prices. Making the right calls demands a combination of skill, research and time that the common investors might not have.' MUTUAL FUNDS: THE BALANCED OPTION FOR WEALTH CREATION This is where mutual funds have an edge. With mutual funds, you don't have to worry about market timing, and professional management helps reduce the chances of making costly mistakes. Swapnil Aggarwal, Director at VSRK Capital, agrees with this view, highlighting that mutual funds are superior to ULIPs due to their flexibility and liquidity. He mentioned, 'For long-term wealth creation, mutual funds are comparatively superior to ULIPS because of their flexibility and liquidity. While both ULIPs and mutual funds have similar overall returns, mutual funds give the investor greater freedom.' THE FLEXIBILITY OF MUTUAL FUNDS Unlike ULIPs, mutual funds allow you to invest or redeem your money at any time without being tied down for a certain period. 'With mutual funds, you have the option to invest or redeem your money at any time without being tied down for a certain period. You also have the choice of switching between the different funds or Asset Management Companies (AMCs) depending on your objectives or variation in the market,' he added. Manish Kothari, the CEO and Co-Founder of ZFunds, also believes that equity mutual funds are an ideal choice for long-term wealth creation. 'Equity mutual funds are best for long-term wealth creation as they help investors build a diversified portfolio across market caps and industries, that is managed by a professional fund manager. Having a diversified portfolio is crucial to mitigate the market risks and volatility,' said Kothari. COST-EFFECTIVENESS AND ACCESSIBILITY OF MUTUAL FUNDS Additionally, they are affordable, with fund management fees regulated and reduced as the fund size grows. You can start investing with as little as Rs 10, making them accessible to everyone, mentioned Manish Kothari. 'The open-ended design of mutual funds also enables additional investments and provides liquidity to investors. Thus, making them a more flexible option,' he added. WHICH IS BEST FOR LONG-TERM WEALTH CREATION? It really depends on your goals, risk tolerance, and investment knowledge. If you want a combination of insurance and investment, a ULIP might suit you, but if your focus is purely on wealth creation, mutual funds and stocks are usually the better options. Stocks might offer the highest potential returns, but they come with more risk and require more attention. Mutual funds provide a good middle ground with less risk and professional management. Ultimately, the best investment for you will depend on your personal financial goals and how comfortable you are with risk. Diversifying your investments across these options can also help you balance risk and return, ensuring that you're on the right path to building wealth over the long term.
India Today
02-05-2025
- Business
- India Today
Mutual funds are on the rise again. Check out these 5 bets in 2025
After a quiet patch, mutual funds are picking up speed again. With the stock market showing positive signs, more people are now turning to mutual funds to grow their money. India Today spoke to Swapnil Aggarwal, Director at VSRK Capital, to find out which five fund categories are worth considering in the current have a quick INDIA SMALL CAP FUNDThis fund puts money into small but fast-growing companies, says Swapnil Aggarwal. Often these emerging small-cap companies have strong growth potential. If you're someone who is an aggressive investor and can handle a bit of risk and stay invested for a few years, this fund could work well for you, he of May 2, 2025, the fund has delivered an annualised 3-year return of 22.21% and a 1-year return of 0.84%.HDFC MIDCAP OPPORTUNITIES FUNDThis one focusses on mid-sized companies that are established but still growing. It offers a middle ground, i.e., investing in these mutual funds is neither too risky, nor too dull. These funds are suitable if you are planning to stay invested for the long term and want steady growth, stated fund's 3-year annualised return stands at 25.23%, with a 1-year return of just 9.39%, as of May 2, INDIA GROWTH FUNDadvertisementThis fund invests in a mix of strong large-cap companies and promising mid-caps. It helps spread your money across different types of stocks, which can lower your overall Aggarwal said that these funds are ideal for diversification as they offer both stability and May 2, 2025, the fund reported a 3-year annualised return of 24.38% and a 1-year return of 10.94%.ICICI PRUDENTIAL EQUITY & DEBT FUNDThis hybrid fund combines the growth potential of shares with the stability of debt instruments, stated VSRK Capital's said these funds are better suited for conservative investors since they don't move much with the market and offer a steadier, less risky 3-year annualised performance of the fund is 19.62%, with a 1-year return of 11.02% as of May 2, BLUECHIP FUNDThis fund sticks to well-known, top-performing large-cap companies and is a good pick for beginners or anyone who wants to play it safe while still growing their money slowly over time, Swapnil Aggarwal May 2, 2025, the fund posted a 12.05% annualised return over three years and 7.95% over one Watch
