The article is all about putting your money in insurance. Rediff - please refrain from publishing such articles.
It is a known thing - Investment and Insurance are two different aspects. The article is trying to mix the two together. One must have some bit of money (or savings) going towards insurance. It could be medical insurance, Life Insurance (term policies) or accidental insurance. But investing thru insurance companies is not a good idea.
Most of the Investments thru insurance companies is done via the ULIP way, with the investor having no clue of the charges of the schemes. Over and above - there is no accountability on the Fund Manager in the insurance company. Take whichever Insurance company, all of them are just eating away the capital from the invested amounts.
How can rediff say - that FDs are risky. Most of the FDs from PSU Bank - are safe - to the tune of INR being safe. Ofcourse there is no guarantee of inflation protection there - but they atleast gurantee a 9% return. Which Insurance company can guarantee this return. They will atmost guarantee a capital protection minus their charges. So the best one can get as guarantee is 95% of the investment. Or an atmost 5% 'loss' of the capital.
The article is all about putting your money in insurance. Rediff - please refrain from publishing such articles.
It is a known thing - Investment and Insurance are two different aspects. The article is trying to mix the two together. One must have some bit of money (or savings) going towards insurance. It could be medical insurance, Life Insurance (term policies) or accidental insurance. But investing thru insurance companies is not a good idea.
Most of the Investments thru insurance companies is done via the ULIP way, with the investor having no clue of the charges of the schemes. Over and above - there is no accountability on the Fund Manager in the insurance company. Take whichever Insurance company, all of them are just eating away the capital from the invested amounts.
How can rediff say - that FDs are risky. Most of the FDs from PSU Bank - are safe - to the tune of INR being safe. Ofcourse there is no guarantee of inflation protection there - but they atleast gurantee a 9% return. Which Insurance company can guarantee this return. They will atmost guarantee a capital protection minus their charges. So the best one can get as guarantee is 95% of the investment. Or an atmost 5% 'loss' of the capital.
