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Old 18th August 2010, 10:12   #121
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Guys, anyone invested or any non investors don't need to admit publicly, but atleast provide me your opinion on this plan.

How would money triple in 10 years? Even money in KVP is doubled in 9 years, I don't think its possible in 10 years. Wifey wants to invest some money into it due to the guarantee word.

Pls shed some light on this. Any help is highly appreciated. Tks.

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Old 18th August 2010, 10:41   #122
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Well the NAV guarantee is of highest fortnightly NAV reached in 168 fortnightly NAV in first 7 years or NAV on maturity.

Now the catch is that you will pay
Premium allocation charges of 15% in first year , and 5% for next 2-4 years.
In addition Admin charges of 60 Rs per month + Fund management charges of 1.5% ( which can be increased to 2.5%) + blah blah

So in nutshell you will get less Units for the same money paid then a mutual fund so even if they give the highest NAV you are at loss.

read it here

Analysis of SBI Life Smart ULIP | Review | Details | Charges | Mohan's Blog

Secondly for a pure term insurance plan SBI Life provides highest quote among private life insurers.

Quote:
Originally Posted by aargee View Post
Guys, anyone invested or any non investors don't need to admit publicly, but atleast provide me your opinion on this plan.

How would money triple in 10 years? Even money in KVP is doubled in 9 years, I don't think its possible in 10 years. Wifey wants to invest some money into it due to the guarantee word.

Pls shed some light on this. Any help is highly appreciated. Tks.
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Old 18th August 2010, 12:38   #123
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Quote:
Originally Posted by aargee View Post
Guys, anyone invested or any non investors don't need to admit publicly, but atleast provide me your opinion on this plan.

How would money triple in 10 years? Even money in KVP is doubled in 9 years, I don't think its possible in 10 years. Wifey wants to invest some money into it due to the guarantee word.

Pls shed some light on this. Any help is highly appreciated. Tks.
Best option is to invest the money is stock markets, down side is the risk associated with it.
An alternative would be to invest in
1) KVP
2) Stock markets - Large caps blue chip
3) 5 star rated Mutual funds.
in % proportions.
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Old 18th August 2010, 12:56   #124
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Originally Posted by ghodlur View Post
Best option is to invest the money is stock markets, down side is the risk associated with it.
An alternative would be to invest in
1) KVP
2) Stock markets - Large caps blue chip
3) 5 star rated Mutual funds.
in % proportions.
There are three more ways for secured return.

1. Postal Saving scheme : You can deposit up to 3 lakhs or 6 lakhs in joint account for 6 years return is 8% and additional 1% for senior citizen. MIP generates some 2K which may be reinvested in the postal savings account.
On the compleation and no premature break they give a bonus of 10% so the total yield ( considering reinvestment of the monthly yield) is around 14.1 % this is a good option for retired people.

2. Voluntary PF deposits.
You can deposit up to 88% of your basic salary in the EPF fund the fixed return is 8% and proceeds are tax free.

3. PPF : 8% and Returns are tax free but only 70K per year , So open one account for each of your family member including minors.


So an ideal mix is that you put some portion in 1,2 and 3 above ( at-least 20% but depending on risk apatite can increase more) depending on choice and status of employment and then invest rest of the money in the midcap funds for maximum yield.
In case 1,2 and 3 are not enough for your secured investment buy KVP ( returns are taxed) and some Gold ETF.

Birla Sunlife Dividiend Yield and Reliance growth are two constantly performing midcap funds.

If you have further risk taking capability put some money in the more agressive funds like UTI master value or DSP blackrok microcap.

PS : Your time horizon need to be more then 5 years ( ideally 10 -15 years) and also you need to check the fund performance relative to it's peers in the meantime.

For the insurance needs take a term life insurance plan ( I took Aegon Religere iTerm plan 14.5 K yearly for 1 crore of term value)

The combination of term plan + Midcap fund + Secured savings ( VPF + PPF + Postal savings) will work out to be lot better and cheaper then any ULIP or child plan offered by insurance companies.

PS: Funds suggested above are my personal choice , You can do your own research and replace them with your own fav. funds.

Last edited by amitk26 : 18th August 2010 at 12:58. Reason: Disclaimer added.
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Old 18th August 2010, 13:31   #125
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Quote:
Originally Posted by ghodlur View Post
1) KVP
I prefer POMIS & PORD; they're better than KVP

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Originally Posted by ghodlur View Post
3) 5 star rated Mutual funds. in % proportions.
Ok, I'll consider this; But I need a life insurance very badly as I don't have one & hence opted for the above scheme.

Quote:
Originally Posted by amitk26 View Post
1. Postal Saving scheme : You can deposit up to 3 lakhs or 6 lakhs in joint account for 6 years return is 8% and additional 1% for senior citizen. MIP generates some 2K which may be reinvested in the postal savings account.
On the compleation and no premature break they give a bonus of 10% so the total yield ( considering reinvestment of the monthly yield) is around 14.1 % this is a good option for retired people.
Sorry to say that this is atleast a decade old figure;
Current plans are as follows...
Individual - upto 4.5 Lakhs
Joint - # of people X 4.5 Lakhs. For eg, if there're 4 adults from the same address (actually one house), then the limit is 4.5 X 4 = 18 Lakhs. The income generated is taxable. The income generated can be reinvested as RD (recurring deposit) which cannot be showed again for tax deduction. The bonus has been reduced to 5% & the interest rate is 8% which is still good.

So Rs 450000 invested fetches about 3K PM for 6 years
3K invested PM yields to 218670 after 5 years
So totally it becomes 450000 + 22500 + 218670 + 36000 = 727170 which is again less than 10L & that's the reason for my post. More over I only invest about 1.5L compared to 4.5L for 3 years versus 6 years.

Last edited by aargee : 18th August 2010 at 13:33.
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Old 18th August 2010, 14:29   #126
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I prefer POMIS & PORD; they're better than KVP


Ok, I'll consider this; But I need a life insurance very badly as I don't have one & hence opted for the above scheme.
Look at Aegon Relegere iTerm for your insurance needs
Quote:
Originally Posted by aargee View Post
Sorry to say that this is atleast a decade old figure;
Current plans are as follows...
Individual - upto 4.5 Lakhs
Is it my father just invested in Post Office scheme one month back and the information was based on what I got from him.

For my investment needs I am investing in midcap MFs (risky) + VPF + PPF ( secure and 8% tax free) in ratio of 90 - 10 but intend to bring it to 80 -20 by end of this year, 5 year down the line I plan to change the mix to 70 - 30.

Last edited by amitk26 : 18th August 2010 at 14:30.
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Old 18th August 2010, 14:43   #127
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Look at Aegon Relegere iTerm for your insurance needs
Ok; I'm looking now - Religare Insurance Solutions | Life Insurance | General Insurance

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Originally Posted by amitk26 View Post
Is it my father just invested in Post Office scheme one month back and the information was based on what I got from him.
Check with your Father; may be what you understood is incorrect or the worst , the PO agent did a trick. Here's the outdated link - POMIS

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5 year down the line I plan to change the mix to 70 - 30.
Pls let me know this fig after 5 years; if you're able to maintain that, you're really great because its such a difficult task.
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Old 18th August 2010, 15:02   #128
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Pls let me know this fig after 5 years; if you're able to maintain that, you're really great because its such a difficult task.
Well for last 6 years ( since 2004) I have an ICICI Direct account , My MF investment was very irregular but till now my returns from Reliance Growth fund stands at 134% and from Franklin Blue Chip stands at 248%.I had in Frankiln Prima as well since 2004 but I exited Prima Last year and moved to Birla Sunlife Divident Yield ( SIP returns around 34%, since 2009).

Meanwhile there were 2 major bear runs in one Sensex dipped to 8K and also couple of bull runs.

Till 2009 my 100% investment was in MF reduced it to 90% last year and 10% in other secure investments. This year it will be 80% of the total investment.
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Old 18th August 2010, 15:12   #129
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Ok, I'll consider this; But I need a life insurance very badly as I don't have one & hence opted for the above scheme.
One suggestion though, keep insurance totally away from investments. If you need a pure life term, then do a compartive analysis and suggest you to go for market leaders like LIC or PSU insurance firms. The new insurers are yet to establish as far as service and network is concerned, dont let the low premium take you for a ride.

Stay away from ULIPS, Mutual funds are way better than them and the returns are comparable too.
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Old 18th August 2010, 16:11   #130
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suggest you to go for market leaders like LIC or PSU insurance firms. The new insurers are yet to establish as far as service and network is concerned, dont let the low premium take you for a ride.
Apart from LIC which is the other PSU company which provides life insurance ?
Just because an Insurence company is a JV between a PSU and another company that does not make it a PSU insurance firm so for example SBI Life is not a PSU.

Secondly did anyone remember erstwhile UTI ? LIC may not be at advantage always when it comes to claim settlement.
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Old 19th August 2010, 08:58   #131
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Apart from LIC which is the other PSU company which provides life insurance ?
Just because an Insurence company is a JV between a PSU and another company that does not make it a PSU insurance firm so for example SBI Life is not a PSU.

Secondly did anyone remember erstwhile UTI ? LIC may not be at advantage always when it comes to claim settlement.
By other Public sector Insurers I was referring to National Insurance, New India Assurance, Oriental Insurance and United India Assurance. These are owned by the govt of India and these days they have shed their lacklasaidal attitude and competing to give the best service. Most imp they have govt backing in case anything goes wrong.

FYI, LIC has the best claim settlement ratio amongst the lot.
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Old 19th August 2010, 09:17   #132
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are owned by the govt of India and these days they have shed their lacklasaidal attitude and competing to give the best service
Yes, I agree to this, as I'm experiencing this with New India Assurance; anyway, their beurocracy has not come down yet. But they're little polite now days.

What do you think about Endowment policies? I heard they have a huge coverage & low premium. Do you think that's a best option? I hope they've no returns at all, including the principle. Is that right?
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Old 19th August 2010, 09:31   #133
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What do you think about Endowment policies? I heard they have a huge coverage & low premium. Do you think that's a best option? I hope they've no returns at all, including the principle. Is that right?
Endowment policies cover the risk for a specified period at the end of which the sum assured is paid back to the policyholder along with all the bonus accumulated during the term of the policy.

As compared to whole life policies, the premium rates for endowment policies are higher and the bonus rates lower. The cost of an endowment policy is, typically, double that of a whole life one.

Typically the policy can be taken when the family size is small esp during the retirement when the lumpsum amount can be used to buy an annuity for monthly pension. These policies were a craze when they were introuduced since it doubled as insurance plus savings. However now they have lost their glitter due to better options in the market.
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Old 19th August 2010, 09:50   #134
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By other Public sector Insurers I was referring to National Insurance, New India Assurance, Oriental Insurance and United India Assurance. These are owned by the govt of India and these days they have shed their lacklasaidal attitude and competing to give the best service. Most imp they have govt backing in case anything goes wrong.

FYI, LIC has the best claim settlement ratio amongst the lot.
But apart from LIC all other PSU are general insurance companies can they offer or do they offer life cover ?
I was under the impression that LIC is the only public sector insurance company which can offer life cover and rest are only for general insurance.
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Old 19th August 2010, 09:57   #135
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I had one experience with Royam Sundram in 2004, They paid for my Hyuandi Santro in no time, without much hassles. I am using their service till date for my later ones too.
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