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How to Pick Mutual Funds That Beat the Market

  Smart Strategies for Investing in Mutual Funds: A Guide to Maximising Your Returns One of the most well-liked investing options for people looking for expert management and diversification without having to choose individual equities is a mutual fund. One of the easiest ways for people to accumulate wealth over time is through mutual fund investments. Mutual funds combine the capital of numerous individuals to invest in a diverse portfolio of stocks, bonds, and other securities, in contrast to direct stock market investing, which necessitates considerable time, study, and risk tolerance. Mutual funds are a well-liked option for both new and experienced investors due to their expert management and diversification. But merely investing in a mutual fund and crossing your fingers seldom yields the best outcomes. A comprehensive approach that matches the appropriate fund selection and management strategies with your financial objectives, risk tolerance, and investment timeline is nece...
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Employees Deposit Linked Insurance (EDLI) Scheme | Know benefits, eligibility & calculation

Employees Deposit Linked Insurance (EDLI) Scheme | Know benefits, eligibility & calculation

 

On the death of employees falling under the Employees Provident Fund Organization (EPFO), the limit for the maximum assurance to their dependents has been increased to 7 lakhs. Now the Maximum Assurance Benefit under Employees Deposit Linked Insurance (EDLI) Scheme 1976 will be Rs 7 lakhs, which is still Rs 6 lakhs. The decision was taken at a meeting of the Central Board of Trustees (CBT), EPF, held on Wednesday, September 9, 2020, under the chairmanship of Labor Minister Santosh Gangwar.

 

What is the EDLI scheme? The EDLI scheme is essentially provided to all customers of the Employees Provident Fund Scheme to contribute towards life insurance. EDLI provides for a lump sum payment to the insured's designated beneficiary in the event of death due to natural causes, illness or accident. The purpose of this scheme is to provide financial security to the family member after the death of the employee. This benefit is given to the employee by the company and the central government. Earlier its limit was up to Rs 3.60 lakh. However, in September 2015, the EPFO ​​increased it to Rs 6 lakh.

 

Who gets the benefit? If an employee has completed his tenure for 1 year and dies accidentally, then he will get the benefit of this scheme. It has a lump sum payment. Employees do not have to pay any amount in EDLI. The company collects the premium in exchange for the employee.

 

In the EDLI scheme, the company deducts the EPF amount from the salary of the employees working in the contribution organized sector and also collects the same amount as the employer. At present, EPF accounts for 12% of the basic salary of the employee. The employer (company) also collects 12 per cent but it is deposited in two parts. The company deposits 3.67 per cent in EPF and 8.33 per cent in EPS. But, apart from this, some contribution is made by the employer. Employers contribute 0.50 per cent under the EDLI scheme. In this way, the EPF subscribers' nominee gets an insurance cover of up to Rs 7 lakh under 0.50 per cent contribution to the EDLI from the company.

 

How to claim for insurance money? If the EPF subscriber dies prematurely, his nominee or legal heir can claim for insurance cover. At the time of filling his PF form, his nominee or family member can claim FOR insurance money by filling FORM-5 IF with him and putting the person's death certificate with him at the EPFO office. The payment is deposited in the bank account by the EPFO ​​within 30 days. For this, the insurance company will need to give death certificate, succession certificate and bank details. If there is no nominee of the PF account, then the legal heir can claim this amount.

 

How to calculate EDLI? The sum insured received to the heir of a deceased member is calculated as 30 times the average monthly salary of the previous 12 months of employment.

 

If the maximum average monthly salary of an employee is 15,000. So, 30 times salary is around 30 x 15,000 = 4,50,000. Under this scheme bonus amount up to 1,50,000 is also paid to the claimant. Thus, the total amount payable under the scheme to the beneficiary is 6,00,000.


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