Everyone i meet wants to find out where to invest to be included in my blog, although i was avoiding this topic from a long time. Well to be frank i can only say that i will have to put up a disclaimer here, that what ever options i give below are purely my opinion and my research and that please invest based on your own judgment. The below are not in any particular order,
1. ULIP's : Unit Link Insurance Plans, they provide protection, investment, some people don't approve them as a good investment as there are too much loading involved as compared to a mutual fund but what the heck why are you even comparing it with a mutual fund. Just let it be for what it is and its an investment option which normally you have to pay for a period of three years and after which you can leave it there to grow untill you need the cash, at least it is better then the endowment policy from which you cannot withdraw for the period it is left.
2. Term Insurance Policy : You have got dependents and when you take insurance plans, the basic purpose in mind is that they need to be secured, well most of the insurance policies are just too costly, for a 10 L mortality cover ULIP, you could end up paying Rs. 1L as premium per annum, but then there are term policies, although there is no return from this policy if you survive the period insured for, but what you do get is a big coverage say for a premium of Rs 6000 approx. per annum you could well be insured for Rs. 20L for a period of 20 years. So do look at this as a pure insurance and not an investment.
3. PPF : Public Provident Fund, you keep investing Rs. 70000/- for 15 years and the interest rate is 8% per annum. Its good retirement planning kind of an investment and you can also take a loan of 25% of the value against it after staying invested in it for 3 years. The interest rate is compounded annually. And dont forget the fact that it carries a sovereign guarantee.
4. Mutual Funds : If you cant follow the market and cant make heads or tails out of it then let the experts do it for you and for a fees of course, they manage your money as a part of a huge corpus of several investors. There are just too many type of mutual funds and recently there has been a splurge of New Fund Offers (NFO's) in the market. choosing the right fund is an issue. My only advice here is dont go into a fund just because you can buy it at a lower NAV, but study its year on year performance and what kind of returns it is giving, make your decision then and if it is an NFO, try to study funds in the similar market profile, see what returns they are offering, or even if you cant find any similar funds then study the profile of the Company which is offering it and the fund manger, it helps.
I am going to continue this article next time and also am planning to write an article on Mutual funds so please do keep reading.
1. ULIP's : Unit Link Insurance Plans, they provide protection, investment, some people don't approve them as a good investment as there are too much loading involved as compared to a mutual fund but what the heck why are you even comparing it with a mutual fund. Just let it be for what it is and its an investment option which normally you have to pay for a period of three years and after which you can leave it there to grow untill you need the cash, at least it is better then the endowment policy from which you cannot withdraw for the period it is left.
2. Term Insurance Policy : You have got dependents and when you take insurance plans, the basic purpose in mind is that they need to be secured, well most of the insurance policies are just too costly, for a 10 L mortality cover ULIP, you could end up paying Rs. 1L as premium per annum, but then there are term policies, although there is no return from this policy if you survive the period insured for, but what you do get is a big coverage say for a premium of Rs 6000 approx. per annum you could well be insured for Rs. 20L for a period of 20 years. So do look at this as a pure insurance and not an investment.
3. PPF : Public Provident Fund, you keep investing Rs. 70000/- for 15 years and the interest rate is 8% per annum. Its good retirement planning kind of an investment and you can also take a loan of 25% of the value against it after staying invested in it for 3 years. The interest rate is compounded annually. And dont forget the fact that it carries a sovereign guarantee.
4. Mutual Funds : If you cant follow the market and cant make heads or tails out of it then let the experts do it for you and for a fees of course, they manage your money as a part of a huge corpus of several investors. There are just too many type of mutual funds and recently there has been a splurge of New Fund Offers (NFO's) in the market. choosing the right fund is an issue. My only advice here is dont go into a fund just because you can buy it at a lower NAV, but study its year on year performance and what kind of returns it is giving, make your decision then and if it is an NFO, try to study funds in the similar market profile, see what returns they are offering, or even if you cant find any similar funds then study the profile of the Company which is offering it and the fund manger, it helps.
I am going to continue this article next time and also am planning to write an article on Mutual funds so please do keep reading.
1 comment:
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