Retirement Planning
Which type of mutual fund scheme is better—diversified equity or balanced—to achieve my financial goals? I am 30 years old and need to plan for my retirement at 60.
 
MLF’s Reply:  Balanced schemes invest more like equity diversified schemes and have almost the same amount of risk. We have written several articles in Moneylife about these schemes. (One of these is: http://www.moneylife.in/article/26039.html) In balanced schemes, the exposure to equities is reduced from 80% to 65%, or even to 60% in some schemes. Choosing a balanced scheme may not help in diversifying your mutual fund portfolio as all such schemes invest at least 65%-70% in equity, on an average. Given the returns of balanced schemes over the one-year and five-year rolling periods, reducing the asset allocation in equity may appear more appropriate for you compared to an equity diversified scheme.
 
While these schemes may be appealing because one may feel that these schemes are professionally managed, balanced funds would not be an ideal investment route for the long term. Hence, it would be beneficial to invest in top-performing equity diversified schemes.
 
While picking mutual funds for the long term, we suggest that you pick an equity diversified mutual fund scheme which has a consistent track record. Equity mutual fund schemes can generate great long-term tax-free returns, provided you invest in the right schemes. Since you have about 30 years to retirement, it would be advisable to invest 75%-80% in equities and the rest in fixed-income products.

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Insurance: Kin of Road Accident Victim To Get over Rs17 Lakh Compensation
MACT (Motor Accident Claims Tribunal) presiding officer  KS Mohi directed United India Insurance Company Ltd, insurer of the car involved in an accident, to pay a compensation of Rs17,31,000 to the wife and two sons of victim Bhim Sen Arora who was riding a scooter when he was hit by a car in 2013.
 
While awarding the compensation, the Tribunal relied on the statement of Mr Arora’s wife and noted that the criminal case against the car driver was pending. “It is a DAR (detailed accident report) case and all the documents placed on record along with the DAR are sufficient to prove that due to the negligent act of driver of the offending vehicle, the accident occurred which resulted in death of Bhim Sen Arora,” it said.
 
According to the petition filed by victim’s wife, on 2 September 2013, Mr Arora was going towards his residence when a rashly driven SUV hit him from behind due to which he suffered grievous injuries. He was taken to AIIMS Trauma Centre where he underwent treatment but succumbed to injuries five days later.
 
During the proceedings, the driver, owner and insurer of the car neither gave any evidence nor filed any written statement. The insurance company had, however, made a legal offer to the petitioner which was rejected by her.

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Consumer Issues: Maharashtra Reduces Service Charge on Online Tickets
Maharashtra government has reduced the service charge on tickets purchased online. The service charge per ticket will be capped at Rs10, an official release said. The decision applies to sale of online tickets including those for films, amusement parks, water parks, cricket ODIs and IPL matches, among others.
 
Last year, Maharashtra government had issued notices to movie theatres asking them to stop charging extra for tickets sold online, a move that was challenged in the court by the aggrieved cinema hall owners. The notice covered tickets booked through websites. The so-called service, convenience or Internet-handling, charge depends on the price of the tickets. It’s usually Rs10 for a ticket costing up to Rs100, rising to Rs20 for a Rs100-Rs200-ticket and so on.

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