Term insurance test and getting into movies: Top personal finance stories

This week we explain how self-employed people can get term insurance and how train for a career in showbiz

This week’s lead article by Sanjay Kumar Singh and Karthik Jerome delves into the hurdles self-employed individuals encounter when trying to purchase term insurance. It sheds light on the evolving strategies of insurers catering to this demographic. The article provides guidance on selecting suitable insurance coverage and determining the optimal tenure.

The second article, by Namrata Kohli, offers a glimpse into the film industry. It suggests various ways to enter the field and outlines the key roles in film production. It also addresses the financial aspects of production and distribution. The article emphasises the evolving nature of cinema careers, with technology playing a significant role.

An annuity, also known as a pension plan, is a product designed to provide a consistent cash flow during retirement. Look up Policybazaar’s table on pension plans to understand how much you need to invest to derive a steady income for life.

After the run-up in mid- and small-cap funds during 2023, experts are suggesting investors book profits in these segments and allocate those gains to large-cap. If you are hunting for a fund from the large-cap category, look up Morningstar’s review of Mirae Asset Large-Cap Fund.

Number of the week

79%: Share of total industry AUM held by the top 10 fund houses

Over the past six years, the leading 10 fund houses have been gradually ceding ground to emerging players, despite still capturing a significant portion of mutual fund assets under management (AUM), according to an analysis of quarterly data.

In the third quarter (Q3) of 2023-24, these top fund houses managed an average AUM of approximately Rs 38.8 trillion, constituting 79 per cent of the industry’s total AUM of about Rs. 49.2 trillion. Their share has declined from the 84 per cent recorded in Q3 of 2019-2020.

Industry experts link this shift to a reduction in the proportion of debt funds within the overall AUM and the rise in the number of mutual fund houses. Notably, the larger fund houses have a larger presence in active debt funds compared to active equity funds.

Should retail investors opt for a larger or a smaller fund house? There is no definitive answer to this question because good performance can come irrespective of the size of the fund house. What they should look for is a fund with a sound track record over the long term, say, 10 years. They should also make sure the fund manager who produced that performance is still there at the helm.