5 Ways to Manage Market Risk

Doctor Stock has experienced some excellent trading success so far. Much of that success is due to his disciplined use of market risk management techniques. In his quest to help you make money on the markets every morning, he has often emphasized the need to balance risk vs. reward.

There are many ways that traders and investors can manage market risk in their portfolios. Here’s a sampling of 5 of the most common ones:


The trend is your friend until it ends. This is a crucial component of Doctor Stock’s strategy, and he tracks it for you at the top right corner of this site. It’s tough to make money by anticipating a change in trend. It’s better to wait for the turn and buy once it’s confirmed. “The market can stay irrational longer than you can stay solvent.” That trading axiom, coined by economist John Maynard Keynes, has become a cliché for a good reason. Many a trader has gone bankrupt fighting the tape.

Stop-Loss Orders

I know that Doctor Stock makes fair use of these as well. Before you enter a position, it’s essential to know when you will exit. You can set one or more profit targets, but it’s even more important to limit your losses. A stop-loss order or trailing stop can help you do just that. There are tons of ways to choose a stop loss level, from percentages, trend lines, and moving averages to the true average range or simple dollar amounts. You need to find the method that works for you and your trading psychology. It’s less important how you use them. It’s more important that you use them. Set a stop loss level before you trade and stick to it.

Position Sizing

One way to limit the amount of market risk you take is to limit the amount of money you invest. If you are placing a highly speculative trade, or one in which you have less confidence, you may want to limit your risk by taking a smaller than normal position. Similarly, if you are uncertain about market momentum, it may be wise to trade smaller until a more well-defined trend emerges. Always set rules for yourself on the maximum amount of money you are willing to risk on each trade as a percentage of your total investable capital.


You’ve heard about this one before. It’s essential to diversify your capital by investing it in asset classes that aren’t correlated with one another. Unfortunately, there are times (like the recent market crash) where most asset classes move in unison. That’s why it’s important to keep at least some liquid cash on hand. There are many different ways to diversify your holdings: geographically, by asset class, sector, market capitalization, and many others. The key is to put your eggs in a few different baskets so that if one company, region, or asset class gets destroyed, your losses will be limited.


This strategy pertains more to market risk management for investors as opposed to traders. Many traders only actively trade a portion of their capital. They invest the rest of it (often their retirement funds) more conservatively, with a longer time horizon in mind. One risk management strategy for investors is to set an asset allocation (50% stocks, 30% bonds, and 20% cash, for example) and rebalance it periodically. If the equity portion of your portfolio has performed very well and it now constitutes 60% of your holdings, you would sell some of those holdings to bring your allocation back to 50%.
If your bond holdings have performed poorly and now makeup only 25% of your portfolio, you might consider buying more to rebalance your bond allocation. This is one way to buy low and sell high automatically.

Disciplined market risk management, in whichever form(s) you choose to implement, is the key to successful investing and trading. What kinds of strategies do you use to manage risk?

Book Review: The Investor’s Manifesto

William Bernstein says that he wrote The Investor’s Manifesto: Preparing for Prosperity, Armageddon and Everything in Between even though he swore he would never write another book after The Four Pillars of Investing (read my review) because, in his view, the dramatic market developments of 2008-09 provided a perfect “teachable” moment to clearly define a set of timeless investment principles.

In this book, Mr. Bernstein starts off with an overview of financial theory illustrated with relevant bits of financial history, then takes readers on a tour of the behavioral traps they might stumble into and concludes with the mechanics of building a portfolio. If this synopsis sounds familiar, it is because Four Pillars dealt with similar themes: the theory, history, psychology, and business of investing.Book review: the investor's manifesto 1Book review: the investor's manifesto 2

As you might expect of a brilliant writer like Mr. Bernstein, his writing is so quotable. Here are some examples:

Investors cannot earn high returns without occasionally bearing great loss. If the investor desires safety, then he or she is doomed to receive low returns”.

… the rewards of equity ownership are paid for in the universal currencies of financial risk: stomach acid and sleepless nights.

Much has been made lately of “black swans”: rare and supposedly unexpected events that roil society and the financial markets. In the world of finance, the only black swans are the history that investors have not read.

You are not as good looking, as charming, or as good a driver as you think you are. The same goes for your investing abilities. In an environment filled with incredibly smart, hard-working, and well-informed participants, the smartest trading strategy is not to trade at all.

Mr. Bernstein is a wise investor and talented writer and while The Investor’s Manifesto is a very good book, I feel that it doesn’t quite achieve the brilliance that The Four Pillars did. If you’ve read the previous book, you can re-read it and safely skip this one. If you haven’t read Four Pillars, perhaps that’s the Bernstein book you should be reading. The Investor’s Manifesto is published by John Wiley.

Book Review: The Four Pillars of Investing

William Bernstein, a practicing physician, has written an excellent guide to invest (affiliate link) that contains important (as the sub-title says) “lessons for building a winning portfolio”. The Four Pillars of Investing that the title refers to are theory, history, psychology, and business of investing.Book review: the four pillars of investing 3Book review: the four pillars of investing 4

Often, books on investing are dry, and reading them is a bit like working through a dense textbook, but fortunately, this scholarly book is not one of them. Even the driest theoretical concepts are illustrated with historical examples.

In the section on history, Dr. Bernstein tells the tales of bubbles and busts past and present and points out that lack of historical knowledge hurts investors the most. I realized that this is an area I need to learn more about and helpfully, the author provides a list of useful books in Chapter 11 (no pun intended). The book concludes with practical ideas for assembling your portfolio.

I can’t hope to do a better job of summing up the contents of this book than the author himself:

The overarching message of this book is at once powerful and simple: With relatively little effort, you can design and assemble an investment portfolio that, because of its wide diversification and minimal expense, will prove superior to most professionally managed accounts. Great intelligence and good luck are not required. The essential characteristics of the successful investor are the discipline and stamina to, in the words of John Bogle, “stay the course”.

I think “The Four Pillars of Investing” is worth reading and would also make a nice addition to your bookshelf (I am adding it to my list of recommended books).

Of Credit Cards, Credit Scores and Creditworthiness

Over the past few years, I have realized that many people have misconceptions about credit cards, credit scores, and creditworthiness. Credit cards are considered as liabilities and looked at as if it’s a loan. However, in reality, a credit card is nothing but just another mode of making payments and much more rewarding as compared to other methods of making payments in terms of credit period, reward points, offers, discounts, and cashback, etc. among other things.

It only gets messier when people behave in an indisciplined manner while using credit cards for spending beyond their means just because people have huge credit limits on their cards—defaulting on payment of credit card bills by not paying the full amount due on time, using credit cards for withdrawing cash in times of emergency, etc. People behave casually while falling into these financial wrongdoings without bothering/realizing that all of this indiscipline comes at a substantial financial cost in terms of massive interest, fines & penalties, and severe damage to their creditworthiness.

If one can use the credit cards efficiently by exploiting their features and benefits without getting into overspending beyond their means and without indulging in any financial wrongdoings, credit cards can be one of the most significant assets. Therefore, a person who follows below discipline while using credit cards can have a very healthy personal finance and creditworthiness:

  • Utilizes his credit cards for making his regular payments, which he would otherwise do irrespective of whether he has a credit card or not;
  • Does not get into overspending just because he has a credit card and a significant limit on it;
  • Pays all his credit card bills in full on or before due dates without any exception;
  • Does not use any of his credit cards for emergency cash in times of crisis;
  • Never takes any loan or spends with costly EMIs on credit cards etc.

Often, a person not having any credit history (i.e., no record of loan or credit cards) is denied loans by banks / financial institutions despite having adequate income levels.

Credit Score / Creditworthiness:

Another big misconception is one or more of the following factors adversely affect the credit score/creditworthiness of a person:

  • Having one or more credit cards
  • Having a considerable credit limit on credit cards
  • Upgrading the credit limit every time there is an offer to do so

The truth is none of the above factors impact a person’s credit score unless there is a default or high credit utilization ratio on his credit card. Apart from theoretical knowledge about these aspects, I have my own practical experiences to back my above observations. I have been using seven different credit cards for the last many years. All of them issued by various banks / financial institutions having different credit limits, and every time I get limit enhancement, I opt for it.

Apart from these credit cards, I also have two home loans and one car loan in my name. Still, my credit score never went below 750 since I took my 1st credit card eight years ago and my latest score, checked yesterday, stands at 800.

How you can effectively use credit limits on your cards to improve your credit score

One of the crucial factors which affect your credit score is the credit utilization ratio. It means how much percentage of credit limit you utilize on an average, e.g., if you spend Rs 10,000 on your credit card, which has a limit of Rs. 1,00,000, you have used just 10% of your credit. Likewise, if you spend Rs. 50,000 on the same card, your credit utilization ratio is 50%. The lower the credit utilization ratio, the better for your credit score/creditworthiness. You can manage your credit utilization ration in two ways, either by keeping your spending on credit cards as low as possible or enhancing your credit limits on your credit cards as high as possible. I preferred to choose the latter.

Over the years, I built a portfolio of 6 credit cards, setting different billing cycles for each one of them so that I get to use all the cards every month for a few days. See the table below for easy understanding:

Card  Bill Date Usage Dates  Credit limit  Spends  Utilization Cumulative Limit Cumulative Spends Cumulative Utilization
 1  3rd  4th – 8th  1,50,000  6000  2.5%  150000  6000  2.5%
 2  8th  9th-13th  2,10,000  10500  5%  360000  16500  4.58%
 3  13th  14th – 16th  5,00,000  5000  1%  860000  21500  2.5%
 4  16th  17th-21st  3,50,000  14000  4%  1210000  35500  2.93%
 5  21st  22nd-28th  1,40,000  7000  5%  1350000  42500  3.15%
 6  28th  29th-3rd  1,50,000  2500  1.67%  1500000  45000  3%

You can see in the above table how one could build a portfolio of credit cards  to make the best use of the credit period by setting different billing cycles and also keep your utilization low by spreading it over several cards in a month.

I have been practicing this for several years now, and it has neither affected my creditworthiness nor the health of my personal finance negatively. Instead, effective utilization has strengthened my personal finance and boosted my credit profile. I hope you find this note insightful.

This is CA Anand Kankariya’s indigenous note on credit cards as part of financial awareness. Please share your feedback/suggestion below.

How to Spot a Multibagger

A Multibagger in stock market parlance is a stock that can return multifold returns when invested in it. The holy grail of investing is to identify such multibaggers and hold them in your investment portfolio.

To spot a multibagger needs a thorough study of multiple fundamental parameters, a few of which are listed in this article. Please note. However, we cannot be rigid on any of these parameters. We need to be flexible to interpret things from a bigger picture point of view.How to spot a multibagger 5How to spot a multibagger 6

So what are these parameters of a multibagger stock that we should look for?

No doubt about business survival.

Identifying a  multibagger begins with identifying a business that can weather the test of time. Whether there be a health crisis, economic crisis, or political crisis, these businesses should not have any difficulty in surviving. When I was young, my father told me that to survive, humanity will always need food and consistently invest in promising companies that cater to the hunger of the masses.

There are many other businesses, apart from those in the food industry that can survive and thrive in adverse circumstances. The health sector is one; the information and technology sector is another. There may be sectors that will come up in the future; you may be aware of them due to your line of work. Look into those businesses.

Visible & sustainable growth potential

Most businesses are not built because the management wanted them to remain stationary. Entrepreneurs and management want a steady and sustainably growing business. Look for companies that are growing at a fair clip with good management. 

A management team that continuously innovates and optimizes its core business should provide profitable growth for investments in the company. A management team that is not focused is a poor innovator, and does not optimize resources, may give spectacular returns in the short term, but may not be able to sustain in the long run. Such businesses usually do not provide multibagger returns.

Management has a vision of growth.

Identifying potential in future markets is a must for any good management. The company should not bask in the past and should be forward-looking to identify the ideal growth opportunities. The management should be ethical and provide adequate consideration for every stakeholder.

Reasonable Promoter stake

There should be fair skin in the game from the promoter.  Many successful investors avoid companies that have a very low promoter stake. Ideally, the promoter should have at least a 50% holding in the company, and the higher this number, the better it is, and the likelier it is to end up as a multibagger. If in case there is a low promoter stake, then promoters should increase stake at every possible opportunity. Also, pledging should either be zero or minimal.

How to spot a multibagger 7Debt zero or going towards zero

Debt is becoming a dirtier word at the individual as well as at the corporate level. A Debt to equity ratio of less than 0.5 should be an ideal investment; however, do remember that smaller companies that are growing fast may not always be debt light—most of the time, the lower the debt, the better the valuations.How to spot a multibagger 8

Increasing cash flow

At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF). If the cash flow of a company is increasing, it means that the company is growing well and can use the amount to grow itself further.

Rare equity dilution

The lesser the equity dilution, the better will be the valuations. Stock dilution, also known as equity dilution, is the decrease in existing shareholders’ ownership percentage of a company due to the company issuing new equity. New equity increases the total shares outstanding, which have a dilutive effect on the ownership percentage of existing shareholders. Management should avoid equity dilution at all times. To improve the liquidity, equity dilution is suitable sometimes; however, it should be only when the proportionate growth is visible.

Reasonable dividend

If the company is showing earnings of 100 & giving dividend equivalent of just ten or less, it raises more doubts on such companies before building conviction. There should be an acceptable dividend policy; however, if the profits are being used to improve the business quality further or for capacity expansion, fewer dividends may be sufficient.

Low PE

Lower the price-earnings multiple, better multiple returns potential in the future. With the growth in earnings & with every new milestone achievement, PE gets re-rated, and then there is usually a multiplier effect on the stock price.

Association with a brand

If the company has its growing reputation or is associated with some client who itself is a brand, that’s a big positive.

In conclusion, do remember that these are just a few aspects to spot a multibagger. Many stocks may not fit into any or all of these parameters. An example is Bajaj Finance, which has proven to be a massive compounder despite not checking many of the boxes like Debt, Environment risk, or having Low PE. It is essential to be flexible when looking at the fundamentals of the stock before investing in it. If you are a retail investor, keep some basic things in mind as follows:

1. Why you are investing – invest with a goal and plan.
2. Time frame – you may be better off in debt instruments or bonds for a short time frame.
3. Knowledge of the company/industries – stick to your circle of competence.
4. Risk and Reward ratio – Never invest without learning the risk associated with the particular investment.
5. Stock price is affected by market condition/Govt policy, so keep updated – especially true of highly regulated sectors.
6. Keep part profit booking/average – you can do this downwards or upwards.

The Growing Student: Sex, Drugs and … Health?

With a busy schedule of partying, experimenting, disobeying their parents, further experimenting, and (of course) receiving a 4.0-grade average, a student tends to forget perhaps the most important aspect of living—health.

Taking into consideration the rising numbers of smoking, pregnancy, drug use, alcohol consumption, malnutrition, and obesity among young adults, it seems appropriate now more than ever for a student to receive proper, quality health insurance. This demographic tends to live invincibly. Many believe themselves to be indestructible, as though nothing dangerous can happen to them, even while staring danger in the face. This vicarious attitude may add an intended flavor to their lives, but it’s almost as if an overdose could lead to poison.

Debauchery in Numbers

So they wear the shortest skirts, drive the fastest cars, and eat the greasiest pizzas. What are the numbers saying about teens and young adults?

  • SMOKING: A third of all smokers began smoking at age 14. Almost ninety percent of all smokers began smoking at age 21.
  • PREGNANCY: In the United States, one in ten babies is born from a teen mother. Three-quarters of a million teens between 15 and 19 become pregnant each year.
  • DRUGS: On an average day, 586,000 adolescents used marijuana, about 49,000 adolescents used inhalants, 27,000 used hallucinogens (e.g., Ecstasy and other club drugs), 13,000 used cocaine, and 3,800 used heroin.
  • ALCOHOL: Among persons aged 18- to 22-years-old, 18 percent of full-time undergraduates were heavy drinkers compared with 12 percent of those who were not full-time undergraduates.
  • MALNUTRITION: About one out of every one hundred young women between ten and twenty are starving themselves, sometimes to death. Four percent of college-aged women have bulimia. One percent of female adolescents have anorexia. Researchers at Harvard University Medical School have new data that suggests that up to 25 percent of adults with eating disorders are male.
  • OBESITY: About 31 percent of American teenage girls and 28 percent of boys are somewhat overweight. An additional 15 percent of American teen girls and nearly 14 percent of teen boys are obese.

In the United States, approximately three-fourths of all deaths among persons aged 10-24 years result from only four causes: motor-vehicle crashes, other unintentional injuries, homicide, and suicide. There are several options of low-cost student health insurance available, and it is much better to be safe than to be sorry.

16 Quick Tips to Help Keep Positive in a Down Economy

Times are tough for everyone. People are losing their jobs left and right and unemployment is at its highest level. Businesses both large and small are struggling to stay alive. When money gets tight it can be very hard to keep a positive attitude. Negativity leads to depression, and depression makes it very difficult to move forward in life.

I recently lost my full-time job after 17 years with the same company. It was due to the economy, our clients were cutting back on their marketing budgets and only doing the minimum required to continue sales. Almost all the creative work we were doing dried up and trying to find new clients became harder and harder. I saw the writing on the wall and had been preparing for the inevitable for a while. I updated my resume and portfolio, started networking more, and lined up some freelance customers.

After I lost my job family and friends were calling to make sure I was ok. I told them I was and not to worry. Honestly, I was ok, actually, I was better than ok, I felt great! I felt like a huge weight had been lifted from my shoulders and now my life was my own again, I could do with it as I want. It was an opportunity for a fresh start and as the saying goes, I took lemons and made lemonade!

For many, a life-altering change like losing their job or a major decrease in sales for their photography business would lead to depression. In this article, I’m going to share 16 quick tips that helped me keep a positive attitude to continue down the road of success.

  1. Keep busy – Sitting around staring out the window is the worst thing you can do. If nothing else do house chores. Just keep moving and keep busy.
  2. Work hard – It doesn’t matter what you’re doing, just work hard to do it well. At the end of the day, you’ll have a sense of accomplishment even if you only cleaned the bathroom.
  3. Work even if you’re working for less money – If you have nothing going on and a small project comes your way, take it. Even if you have to do it for less than your normal rate, at least you’ll be working. Give it 100% effort just as you would with any other project and smile while you’re doing it. You never know what work that customer may have for you down the road.
  4. Take better than usual care of yourself – Start eating healthier and start working out. Everyone complains they don’t have time to eat right and work out, well now you do. Physical well-being significantly impacts mental well-being and response to stress.
  5. Get out of the Sweats – Hanging out in your sweats all day although comfortable, is bad for self-esteem. Get up, get a shower, eat a healthy breakfast, and dress for success.
  6. Forget about “the good old days” – Nostalgia is self-destructive. Learn from the past and think about the future you want.
  7. Network like crazy – You have some time on your hands now, start calling all your past customers. Contact people, you’ve been meaning to get in touch with. You need to stay in front of and on the minds of everyone.
  8. Take frequent breaks – You need to break up the routine. Take breaks for the usual stuff and maybe add in a few new ones.
  9. Simplify your life – Cut out unneeded expenses and distance yourself from people or activities that negatively affect you and cause stress.
  10. Surround yourself with positive people – Stay away from the doom and gloomers and find positive and successful people to spend time with, those traits have a tendency to rub off on you.
  11. Keep learning – Photography is always changing. Take this time to learn new photographic techniques, brush up on your software or learn more about a different part of our industry (HDR, DSLR video, etc.)
  12. Shoot for fun – We spend so much time shooting for others we sometimes lose sight of what makes photography fun and why we started shooting in the first place.
  13. Become a mentor – Helping other photographers learn the tricks of the trade is very rewarding for both parties.
  14. Celebrate your successes – Even small accomplishments deserve to be celebrated.
  15. Shrug off the losses – Don’t dwell on the negatives, stuff happens! Learn from it and move on.
  16. Be thoughtful – Think about others more often.

Next Steps…

Life is tough and sometimes bad things happen to good people. What separates us is how we deal with change and move forward. Being positive reduces stress, reduced stress will increase self-esteem and when you feel good about yourself, there’s nothing you can’t accomplish.

I’d love to hear how your lemonade turned out, please feel free to share your stories in the comments below.

Expense Trackers – Indian

The pandemic has not just reiterated the adage ‘health is wealth’, but has also forced many to keep a check on their financial health.

With cash-strapped companies resorting to furloughs, layoffs, and pay-cuts, many from the salaried class are now seeking to tighten their purse strings. As noted by the recent consumer confidence survey of the Reserve Bank of India, drop-in discretionary spending is another new development that is gaining the limelight, aside from work-from-home and social distancing.

Reduced sources of income have reminded us that *money does not grow on trees*, and hence, has to be spent judiciously. To achieve this, you should first assess your spending habits and track your expenses. This can help you set realistic budgets and curb unnecessary spending.

FinTech Apps For Tracking Expenses


Every time you swipe your card or make a cash payment, you can make a record of it in the Monefy app. Capturing fewer details of the transactions, the app makes the process of recording easier. All you need to enter is the amount and select the category of income or expense. You can even add a tiny description of the transaction if you so wish. In the pro version (paid) of the app, you can set recurring transactions such as utility bills and salary credits. The pro version is available for a one-time fee of INR199.

The app summarises your expenses through visual graphs and diagrams making it easier to understand your cash outflows. Based on the period selected, the app throws up a pie chart explaining the break-up of your expenses. You can further view the detailed transactions grouped as a category, by clicking on that part of the pie. If you wish to alter the default categories of expenses, you can do so in the pro version.

The app scores on ease of use and simplicity. You can even export data from the app to Google Sheets, and work further on the sorting and grouping. Additionally, it offers features such as an inbuilt calculator, passcode protection, multi-currency support, and budget mode.

There are many other apps that help track your expenses manually such as Walnut and Money Manager. However, manually entering all transactions can be tedious for some, and there could be chances of errors while entering the transactions.


The Spendee app can help automate your expense tracking. Using the premium version of the app, you can link your bank accounts and credit cards. After this, the app automatically downloads your financial transactions and categorizes your expenses and incomes, using a pre-set algorithm. Aside from the transactions on your card, you can also add cash transactions manually and change the automatic grouping as well.

These premium features come at a cost though. The app has different subscription plans, ranging from INR79 to INR119 per month, or INR619-INR899 per year. The lifetime membership for the app’s premium version is available for INR7,900. A seven or 14-day trial period is also available to try the various features offered in the premium version.

However, the app’s feature to sync bank accounts is currently only available for a few banks – Axis Bank, HDFC Bank, and ICICI Bank. This can be a limiting factor for customers of other banks.

Also, if you are uncomfortable about the automatic sharing of your bank and financial transaction details, you can enter the transactions manually.

Banking apps

The mobile banking applications of some banks offer features that help you track your expenses. The features vary widely among banks. For instance, Syndicate Bank (now merged with Canara Bank) has an e-passbook application for its customers. The app offers a tool – Personal Ledger – where customers can manually tag each transaction to a particular ledger – food, education, health, fuel, travel, grocery, etc. While this scores over private apps on safety and privacy concerns, manually tagging transactions every month to a particular ledger, can be a hassle for some.

For customers of Axis Bank, the Money

Quotient feature available in their mobile banking application helps get a better understanding of their spending pattern and savings. Not only does this feature help you automatically categorize all your debit cards and credit card spends on a monthly basis, but it also gives you a trend of your expenses and savings of the last six months.

SBI’s YONO app also does a similar spending analysis, by auto-tagging and categorizing transactions.

Axis Bank’s Money Quotient also allows comparison of the spending, saving, and investment habits of the customer with peers with similar demographics, life stage, income profile, etc, within the region category (metro, semi-urban, etc).

My Money

A personal finance management tool available within the internet banking facility of ICICI Bank also has useful features. Not only does the tool help categorize and summarise your expenses automatically from all accounts – loans, deposits, savings account, credit card, and Demat account – with ICICI Bank, but you can also link accounts from over 200 other (non-ICICI Bank) institutions and get an overall picture of your financial status. This can be beneficial for customers who have multiple bank accounts and credit cards. Customers can also get email alerts if they overshoot their budgets and can set reminders for monthly bills.

My Money is however available only for ICICI Bank’s savings accounts customers and is free for the first 30 days. After that, annual charges of INR300 plus taxes shall be debited from the savings account.

How much is your Endowment Policy really worth?

Endowment policies have received bad press in recent years, due to many people’s policies not maturing at the value they may have been expecting. If you have an endowment policy but are unsure about how much it is actually worth, you may want to read on.

What is an Endowment Policy?

Endowment policies are usually used to pay off interest-only mortgages. There are two parts to the policy; the investment, and life cover. The policy lasts for a set amount of time.

If the policy dies during this time, the mortgage is automatically paid off. If the holder is still alive at the end of the ‘life’ of the policy, it should be worth an amount which is enough to pay off the mortgage; but this is not guaranteed, it depends on how the markets perform.

In recent years, some policyholders have found that their endowment is unlikely to reach the valuation that was predicted when they took out the policy. This leaves them unable to finish paying off the mortgage and can lead them to have to find other ways to pay off the mortgage. Consequentially Endowment Policies have not been as popular in recent years, with many lenders no longer offering them.


There is still a chance that your endowment will be worth enough at maturity to pay off your mortgage and some.


If the policy doesn’t perform as well as expected, it might not pay off the mortgage.

An Endowment policy will only repay the assured sum if you die, you may have cause to buy extra life cover to provide for other debts.

When the policy expires, so does your life insurance.

How do I know if my Endowment will pay off my mortgage?

Speak to your endowment provider. If it seems likely that your policy is unlikely to be worth enough to pay off your mortgage at maturity you should speak to an Independent Financial Advisor (IFA). You can find your local IFA at Yell.

For more information, you can contact the Financial Services Authority, who is in charge of dealing with complaints about endowment policies. It is also responsible for securing compensation for anyone who thinks they may have been wrongly sold an endowment mortgage.

There are private endowment buyers who are willing to purchase with-profit endowment policies of a certain type. This can recover some of the value of your endowment policy. Patient investors will buy up several small endowment policies and wait for them to mature, something you may be unable to do.

Investigate Before Investing Into Any Cash Gifting Program

In this fast-paced world that we live in today, you can never really tell what or how things will turn out for you. Oftentimes, numerous unexpected events happen. Furthermore, when such unfortunate events occur, numerous individuals find themselves in a dire predicament because they don’t have any fallback plans.

To counter this, some people have looked into the online money-making programs. Online money making programs are very powerful means to make money because you get to leverage the ability of the internet. Due to that, you are able to reach thousands or even millions of individuals effortlessly. A proven online money-making venture that a lot of people turn to either for full-time work or for part-time work is called as cash gifting. Cash gifting is a very simple money-making venture that when executed by the rules and correctly, can reap amazing rewards and benefits.

Numerous people continuously ask, what’s cash gifting and how does it work? In essence, cash gifting is simply receiving and giving gifts that are in the form of cash. Certainly, though, there is a lot more to it than its simple definition. The business of cash gifting is an undertaking that involves a lot of intricate components. Giving and receiving money is one of them, but it definitely is not entirely dependent on such little effort. Some other components that play an important role in the business of cash gifting are marketing and advertising, lead generation, and organizational tactics.

On top of that, because cash gifting is primarily based on leadership and teamwork, it will be more advantageous if you can practice these traits. Cash gifting programs are usually in the nature of membership programs. When people join, they’re entitled to give cash gifts to other members while they get to receive cash as well. The growth of an individual’s earnings will rely on the people he or she will recruit to the membership.

It’s very important to do your due diligence prior to going into any form of investment. The business of cash gifting is just as prone as any other business venture and should thus be explored with caution. Most of the time, because people think that it is an effortless way to make money, they try to deceive the newcomers by promising them amazing rewards and benefits. It is a good idea to search for a lot of cash gifting programs and see them firsthand before making decisions. This is a good way to get to know more about the business while protecting yourself from being a victim of a cash gifting scam.