Money and marriage; beginner's guide to golf: Top personal finance stories

Our best stories this week are about why couples must list their assets and liabilities; what golf amateurs must do for equipment and club membership

Marriage means not just living with your partner’s everyday whims and quirks but also accommodating their attitude towards money. How should couples negotiate issues like how much to save and invest, or how much loan to take? Should both parties maintain separate assets and liabilities or should they merge them? For newly married couples (or those about to get married) looking to negotiate these potential minefields, this week’s lead story by Bindisha Sarang is a must-read.

The second story, by Namrata Kohli, explores the allure of golf and offers advice on how to purchase equipment. It describes the varied price ranges and delves into the factors that should influence the choice of clubs.

Are you keen to invest in the mid-cap category, which has given an average return of 25 per cent over the past year? Look up Morningstar’s review of HDFC Mid-cap Opportunities Fund, the leader of the pack with a whopping asset under management of Rs 48,686 crore. But remember, smart investing isn't just about looking at past returns. Your allocation to this fund must be in sync with your risk tolerance.

Finally, do look up the term insurance table from Policybazaar.com. You will be able to compare the premiums charged by all the leading insurers. You will also get an overview of how much extra you will have to shell out if you wish to buy riders like accidental death benefit and critical illness.

NUMBER OF THE WEEK

40 million plus: Number of unique mutual fund investors.

The number of unique mutual fund investors crossed the 40 million mark in September 2023, according to the Association of Mutual Funds in India (Amfi). Focus on investor education, simplification of products, digitisation, and financialisation of savings are factors that have helped the number of investors grow, according to experts.

New entrants into mutual funds must bear in mind a few points. One, it is their asset allocation (what proportion of their portfolio they should allocate to equities, debt, and gold) that will determine returns. Therefore, developing a diversified portfolio with an asset allocation that matches their risk profile is crucial.

Two, time spent in the market is important. When investing in equity funds, for instance, investors must have a time horizon of more than seven years.

Three, investors should avoid lump-sum investments (unless the markets are at historic lows). By taking the systematic investment plan route, they will be able to make the timing aspect (whether to invest now or not) irrelevant.

Investors must rebalance their portfolios at least once or twice every year to bring them back in sync with their original asset allocation.