Best ULIP to invest in India.

Discussion in 'Mutual Funds Discussion Forum' started by adapa, Jan 24, 2010.

  1. adapa

    adapa New Member

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    Hi,
    I have selected ULIP for tax saving + investiments also for money liquidity after certain period.
    1) Tax saving & investiment for child.
    2) I want to invest yearly 36,000
    3) Highest groth in income , insurance can be less (As I already have other insurances)
    3) easy of payments throught net

    Any suggestions to choose child plan of ULIK
    like LIC, Birla , SBI, or ICICI
     
  2. ferdaus islam

    ferdaus islam New Member

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    If U dont need insurance dont go for ULIP.BKOS in ULIP 50% of ur money u have paid as premium are eaten by company ,agents as Allocation charges,fund mannagment charge,mortalatiy charges ................more of them is that this are so beautifully hidden that it is difficult for one to calcullate out.say u are toled that fund mannagement charge is 2% per annum.and u calculate out as ur yrly premium is 10k ie=Rs200/per anum.Is it so?No No no.U came to know after freelock period that it is 2%of S.A.ie now it is 2%of 1M=2k per anum:console: Hence my suggesion if U need insurance go for term insurance where u get more covereges with low premium .NEVER USE INSURANCE AS INVEST MENT INSTRUMENT.THERE ARE SO MANY TAX SEVENIGS MUTUALFUND .INVEST IN THEM.IFU HAVE RISK FREE MONEY (PARTIALLY)INVEST DIRECTLY TO SOME HIGH YIEL:DDING COMPANY.
     
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  3. adapa

    adapa New Member

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    Thanks for your quick reply.
    As suggested by agent ULIP is good for long term saving where as MF are good for short term.

    I thought for Long Term 10+ years ULIP is good to save tax both sides 1) 80C2)10(10D)

    Can you suggest 1) tax saving boths side 2) long term investing 10+ years 3) money liquidity like getting money after 3/5 years when required.


    For investiment and returns tax saving what are the top ELSS Mutual funds? Can I select Prudential ICICI Tax Plan (Growth option)? or SBI Magnum Tax Gain? Any other suggestions also?
     
    Last edited: Jan 24, 2010
  4. nsb

    nsb New Member

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    Hi,
    Please don't go for ULIP's ....it will eat your money in the form of units you have....I have reliance insurance ULIP scheme and its poorest...eating my units all the way for their needs in allocation charges and loads of charges. Personally i feel its not good to invest in. Go for MFs or Debts schemes like FDs, RDs, PPFs etc.

    Happy Investing
    NSB
     
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  5. ferdaus islam

    ferdaus islam New Member

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    []THE first thing I want to tell u that I m nt against insurance but what I have said is that insurance should be use as insurance. It is a protective instrument not a aggressive instrument for appreciation ur money. what u will get after term in back if everything is ok. Is ur extra benefit .So why ULIP? In term insurance for 1M coverage ur premium will be 1k whereas in ULIP it is 10k /anum.




    [As suggested by agent ULIP is good for long term saving where as MF are good for short term.[/COLOR] OF course it is good ,but only 4 that agent who suggest u.ask him to explain how it is good providing authentic data.



    ["]thought for Long Term 10+ years ULIP[/COLOR]




    Ur long term is relative long. It is long when Mutual fund is concerned but not so


    Long if insurance is concerened. Itis the minimum term for insurance .Thumb rule is that never keep faith on any agent, chose ur own plane as per ur requerment.Ask the agent to provide original broacher and go through it again and again .Particularly the abbreviations and those words written in very small fonts. Remember what company will charge from u it must be written in their broacher.u can get the broacher online also.



    Can you suggest 1) tax saving boths side 2) long term investing 10+ years 3) money liquidity like getting money after 3/5 years when required[/COLOR]


    I M nt a tax consultant but think u my get so many tax sevings star rated funds fm uti and others. That is ur concern but my question why u are so eager to save tax of just 1k paying 3k.more?



    [Charges Under the Plan
    ?Policy Administration Charge: Policy Administration Charge will
    be 1.75% p.a. of the original sum assured for the first 5 years and
    0.75% p.a. of the original sum assured for the subsequent years. It
    will be deducted at each monthly anniversary through-out the
    policy term by cancellation of Units.
    ?Fund Management Charge:1.35% p. a. of the NAV for Equity
    Growth Fund II, Accelerator Mid-Cap Fund II and Pure Stock Fund ,
    1.25% p.a. of the NAV for Equity Index Fund II and Asset Allocation
    Fund, 0.95% p.a. of the NAV for Bond Fund and Liquid Fund. The
    Fund Management Charge is charged on a daily basis and adjusted
    in the unit price.
    ?Premium Allocation Charge: A certain percentage of each regular
    premium will be allocated to your account at the prevailing unit
    price. This is called the Premium Allocation Rate. Balance is taken as
    Premium Allocation Charge. The Premium Allocation Rates are as
    per the table below:
    90% 100% 102%
    Premium allocation rate for top up premiums: 98%.
    ?Fund Switching Charges: Nil; we offer unlimited free switches
    under the policy.
    ?Miscellaneous Charge: The miscellaneous charge would be
    Rs.100/- per transaction in respect of reinstatement, alteration of
    premium mode or issuance of copy of policy document
    ?Surrender Charge:
    Policy year 1 Policy year 2 to 5 Policy year 6 onwards[/COLO
    R]

    This is a part of broacher of a very popular product of a reputed company. What u see in that is that u have to pay more then4k in 1st yr and more than 1k


    there after for 10k premium. Where as ur tax for 10k =1k only .Hence is it not worthwhile to pay tax honestly?




    HENCE INSURANCE ONLY FOR INSURANCE NOT ANY OTHER ELSE.:cool:
     
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  6. lonsharim

    lonsharim Member

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    This would have been so funny if it wasn't your hard earning money. Your agent gets a nice commission if you buy a ULIP. If you take a MF however, your agent gets nothing (unless you agree to an amount beforehand).

    MF are extremely good for long term. The longer the better. What's important is for you to start reading up more on them and not depend on idiots who are out there for their own benefit and not yours.

    Always seperate insurance and investments. For insurance stick to term plans, for tax saving investments read about ELSS.
     
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  7. adapa

    adapa New Member

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    Thanks to all for your suggestions.
    I have inveted in HDFC Long Term Advantage (ELSS ).
     
    Last edited: Jan 29, 2010
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