ULIP is always a long term investment product, so increase in lock in period from 3 to 5 years is positive. Charges will be spread through the period resulting in even distribution of investment. More info on ULIps - check investmentbazar web site. It has very helpful information on investments.
Re: New regulations in ULIPs are better for investors
by asad hgjkf on Jul 15, 2010 05:12 PM
Your statement " Charges will be spread through the period resulting in even distribution of investment." is wrong. Charges in ULIPs are still heavily font end loaded.
Be fully invested in individual stocks which are available at cheap valuations considering mainly Book value, EPS, last 2 year company performance and current market price. It's better to pay tax to government with high return investment tools instead of investing in mutual funds and ULIPs just with objective to save tax which never give you good returns. After all, it's return that is important. Why not to choose to get 200 % return and then to give 10 % tax out of it instead of being satisfied with just 25 % annual return and making fund managers rich to get their salary out of the return which is earned from your money???
ULIP has been never good instrument compare to other smart investment plan. Never mix insurance & investment. Keep both separate. For the insurance Term plan. And for the investment in MF using the SIP. This way definetely you will get much much better return than ULIP. ULIP is the insrtument good for the agent only not for investor. If you have mistaken to take ULIP anyhow.Stop it & start to invest in MF.
1. ULIP in earlier form was not an ideal instrument for investment because of very high charges deducted (including the commission of agents) and because you could have got same level of insurance cover at a lower rate in Term Insurance. Inspite of that due to different reasons, many people have bought ULIPs including me. In hindsight I can say it was a mistake. 2. However if one exits before 7-8 years, you will be making a second mistake. To offset the higher charges deducted in earlier years, you need to stay for a longer term close to 10 years.
What I have seen from the fund performance of different funds of different companies, they have given a decent annualised return of 12-15% if you take any period of 8-10 years. There have been ups and downs. But at the end, you will get 12-15% return.
3. You can certainly get a much higher returms in MFs. But now that we have got into ULIPs, we need to maximise the returns and for that we need to give it 8 years or so.
Re: Ulips
by prashant sharma on Jul 07, 2010 05:06 PM
this guy is really ill-informed. He signifies everything that is wrong with the retail investor today Ever heard of opportunity cost? read and understand. dont make other people foolish.
Re: Re: Ulips
by Sree Kumar on Jul 09, 2010 11:43 AM
Prashant is stooge of ULIP companies. He is practically suggesting that those people who by mistake invest in ULIPs should after the lock-in period, take whatever money is left after all commissions and charges of company and then run away. If a person invests Rs.30000 each year for 3 years, practically he would be left with some Rs.40000 after the 3 year lock in period (after commissions and charges). This crook is suggesting that in investor should take this 40000 and run away. In this process only ULIP company will benefit. They have taken all charges upfront without offering anything in return to investor.
Re: Re: Re: Ulips
by Krishan Gupta on Jul 09, 2010 11:45 AM
Sree Kumar, you have a point. Self-styled financial advisors like Prashant sharma are also responsble for people losing a lot of money in ULIPS.
Re: Re: Re: Re: Ulips
by V SR on Jul 11, 2010 09:29 PM
Look let me tell you for all people around here. If you want to invest, better chose a pension plan with minimum allocation charges so that your fund is invested appropriately. And you have a choice to make. Select the plan in such a manner that you have 25% for secured investments, 25% of balanced funds and 50% for equity based investment plans. Ofcourse, the term should not be less than 10 years as pension funds need to give good returns on a long term basis. Average compounded anualised return is approximately around 16% to 19%. This is based on my actual experience for my father for which vesting started in this year in March. We have drawn 1/3 of the total funds, tax free (which was almost equivalent to 72 of the money he has invested for 10 year period) and rest was converted into annuity. His monthly pension is around Rs. 11,200. I felt this was a good plan.
1.If tax saving is the reason for investment in ULIP then, I think investment is ELSS mutual fund is a far better option. You save on initial entry load (which is about 25% of your premium as against 0% in ELSS). Plus the returns are much better in MF than in ULIP for a 3 year lock in period. 2.If insurance and better returns are the reasons then a combination of term insurance and diversified MF should be the choice. Although you do not get the money back if you survive (in term insurance), it is worth taking because premiums in TI are very low compared to endowment plans or ULIPs. Just try comparing premium (say A) for an endowment plan for 10 years for sum assured of Rs. 10 L with premium (say B) of term plan for same period and sum assured. Then find out the difference in premium (say C = A-B). Invest this difference amount in a good diversified MF for 10 years. The amount of money which you will get after 10 years through MF will be much more than that through endowment policy.Whats more, you are insured as well as you earn money for those 10 years. Try working it out.
15% of your investment goes as agent's commission , 10% of your investment goes as mortality fee , you will be left with 75% of your investment and that will be invested in share market and you will loose 50% of your money , now calculate how much is your profit.
Re: ULIP is best way for agents and insurance companies to scam y
by Datta on Jul 11, 2010 08:56 PM
Please include Policy Admin Charges,Allocation Charges,Fund Management Charges also
Re: ULIP is best way for agents and insurance companies to scam y
by prashant sharma on Jul 07, 2010 05:08 PM
he he true! but the follish masses of india will continue to be fooled. they are too stupid to do anything about it. still i hear so many say 'LIC is best'. what can be the future of such people?
I HAVE INVESTED IN LIC WEALTH PLUS WITH QUARTERLY PREMIUM OF RS.5000.00 FOR 3 YEARS .TOTAL AMOUNT RS.60000.00.DUE TO RECENT IRDA REGULATIONS KINDLY INFORM IF THE INVESTMENT IS BENEFICIAL TO ME OR NOT. IF NOT IS THEIR A WAY OUT?
