Aviva New Young Scholar Plan? Should i go for it

Discussion in 'Insurance' started by raja.sabi, Mar 29, 2010.

  1. raja.sabi

    raja.sabi New Member

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    I have been quite curious to invest in a child education plan for my own kid. And after doing quite research i found that Aviva New Young Scholar is the one i should opt for....however i just wanted some opinion as to whether its good enough or any other better plans are available?

    Thanks
     
  2. ankit.gup

    ankit.gup New Member

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    It is good indeed. It gives you attractive returns, enhanced by loyalty additions every year starting end of 5th year and maturity addition to build the desired corpus of funds on maturity of the policy. :clap:

    Aegon Religare child plan is not that good as i had opted for it earlier but turned out to be a big hassle for me :(
     
  3. AW10

    AW10 Well-Known Member

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    I am sharing the link to my post on this topic..

    http://www.traderji.com/insurance/34534-regarding-new-jeevan-shri.html#post395211

    Look at the return table that is shown by Aviva on their site ("What I am going to get" section )

    http://www.avivaindia.com/library/flash/Advertisement/illustrations/youngscholarplan.html

    In best possible case, u are just earning 8.21 % return. And I doubt if they have taken care of charges while showing this.

    And don't forget to check "What are the charges I am paying?" section.

    Basic formula of calculating return on annuity (series of recurring payments) over long period is

    FV = PV * [ {(1+r) Power N }-1]/r

    read more on this link - http://en.wikipedia.org/wiki/Future_value

    If you take consrevative value of rate of return at 12% (r = 0.12) in above formula and raise it to power of 20 for 20 yrs duration then you get the multiplying factor of 72+.
    So even if you pay 10k to get insurance cover of 5Lac and put 90k regularly in fund that is giving 10% return.. your final capital will be 90k * 72 = 64.8 lac at the end.

    For return at 15%, the numbers will be multiplying factor = 102, final sum = 92 Lacs.


    So take a informed financial decision based on your requirement.

    Happy investing for your child.
     
    Last edited: Mar 29, 2010
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