Unit-Linked Insurance Plans (ULIP)

[mrindia]

Originally Posted by chandannasta

Is it necessary to take a risk? Cant anything can be done like that without taking a risk?

Not at all!
Taking risk is not at all necessary. You can opt from PPF, NSC, 5yr Term Deposit. All these instruments are totally risk free & PPF will be my 1st choice in such a scene as income generated is also tax free.
mr india

[akhiltaneja]

Hi Chandan,

Well good question?? Is it really necessary to take risk???...

Answer to that is YES... Well if you wana higher return, you have to take highest of risk... But there is ways by which you can avail the benefits of market but with some moderate risk if you let the prof... manage your money...

Risk always there but the rewards also too high...

First plan out... the horizon of your investment... If you dont have ne objective you wont able to invest properly

Originally Posted by chandannasta

Is it necessary to take a risk? Cant anything can be done like that without taking a risk?

[chandannasta]

Originally Posted by mrindia

Not at all!
Taking risk is not at all necessary. You can opt from PPF, NSC, 5yr Term Deposit. All these instruments are totally risk free & PPF will be my 1st choice in such a scene as income generated is also tax free.
mr india

Where is PPF available in Mumbai?

[mrindia]

Originally Posted by chandannasta

Where is PPF available in Mumbai?

In almost every post office & most of the nationalised banks.
mr india

[Suraj26]

Hii All

I am new to this community and my name is Suraj
I am working in a MNC and earning 25k p.m.
Can anyone suggest me which ULIP plan will be the best for me to save tax
Also please let me know whether i should opt for ULIP or Mutual Fund

[ravalsb]

Hi,

Heres 10 year performance comparative of above example of MF, HDFC, Bajaj and ICICI. Last three columns provides you details of yearwise Cumulative Units Held, Net NAV for the year ended and Fund Value at the end of that year.

Industry Norm for charges:
1. Admin Charges levied by "cancellation of units"
2. Fund Management charges are adjusted in NAV
3. There is also Mortality charges ranging from Rs.1-5 per thousand of sum assured depending on the age. These are also levied as "cancellation of Units".

Also, in many ULIP's Death Benefit = Sum Assured or Fund Value whichever is higher. So beyond certain policy term, fund value is bound to be more than sum assured and thus mortality charges paid so far becomes opportunity loss.

Lastly, also take a note of surrender charges applicable in case ULIP's are closed before maturity, which varies company to company and policy to policy, year to year, hence cannot be quantified here.

Regards

[praveen taneja]

Originally Posted by ravalsb

Hi,

Heres 10 year performance comparative of above example of MF, HDFC, Bajaj and ICICI. Last three columns provides you details of yearwise Cumulative Units Held, Net NAV for the year ended and Fund Value at the end of that year.

Industry Norm for charges:
1. Admin Charges levied by "cancellation of units"
2. Fund Management charges are adjusted in NAV
3. There is also Mortality charges ranging from Rs.1-5 per thousand of sum assured depending on the age. These are also levied as "cancellation of Units".

Lastly, also take a note of surrender charges applicable in case ULIP's are closed before maturity, which varies company to company and policy to policy, year to year, hence cannot be quantified here.

Regards

very nice sir keep it up I m a AMFI certified investment advisor with IRDA licence but i m sure u hav a very vast knowledge n an intension to guide people god bless u

[mrindia]

Originally Posted by ravalsb

Hi,

Heres 10 year performance comparative of above example of MF, HDFC, Bajaj and ICICI. Last three columns provides you details of yearwise Cumulative Units Held, Net NAV for the year ended and Fund Value at the end of that year.

Industry Norm for charges:
1. Admin Charges levied by "cancellation of units"
2. Fund Management charges are adjusted in NAV
3. There is also Mortality charges ranging from Rs.1-5 per thousand of sum assured depending on the age. These are also levied as "cancellation of Units".

Lastly, also take a note of surrender charges applicable in case ULIP's are closed before maturity, which varies company to company and policy to policy, year to year, hence cannot be quantified here.

Regards

Hello!
Very informative indeed. Clearly shows how MFs prove to be a better option than
ULIPs. The difference becomes more significant if you skip 'entry load' by investing in MFs directly.

[Mr_Market]

Originally Posted by ravalsb

Hi,

Heres 10 year performance comparative of above example of MF, HDFC, Bajaj and ICICI. Last three columns provides you details of yearwise Cumulative Units Held, Net NAV for the year ended and Fund Value at the end of that year.

Industry Norm for charges:
1. Admin Charges levied by "cancellation of units"
2. Fund Management charges are adjusted in NAV
3. There is also Mortality charges ranging from Rs.1-5 per thousand of sum assured depending on the age. These are also levied as "cancellation of Units".

Lastly, also take a note of surrender charges applicable in case ULIP's are closed before maturity, which varies company to company and policy to policy, year to year, hence cannot be quantified here.

Regards

Dear ravalsb
Market has slipped from 21000 to 14104 .What option do we have in such conditions in mutual funds ,as there is a facility of fund switch over in ulips.

[ravalsb]

Originally Posted by Mr_Market

Dear ravalsb
Market has slipped from 21000 to 14104 .What option do we have in such conditions in mutual funds ,as there is a facility of fund switch over in ulips.

Mr.Market,
ULIP's option of fund swithc only makes sense, if exercised at market 21000.After collapsing to 14000 there is no point switching fund, unless we are to see further downside. Same applies to MF. We can always redeem our MF units @21000 if we can call the top.

However, benefit in later is that in situations like this, we can discontinue adding units (partly/fully) to exisiting MF and allocate our money to new funds, based on valuations.

For ex. Suppose we had invested in power and infra sector funds in last 2-3 years, we can carry those units for long term and switch to real estate and banking sector funds based on thier reasonably cheap valuations. This is just for the sake of example as we may see NFO coming in this sector, especially after economic reforms.

Hope this helps.

Regards