Nov 30, 2007 07:40 AM
3858 Views
Firstly let me introduce you myself. I am MDRT Club Member - Insurance Advisor for last two consecutive years and Mutual Fund Distributor for most of the major Mutual Fund Houses.
On the basis of past experience, analysis and study I am making following comments.
Insurance and ULIP:
ULIP is more profitable for Insurance Agents than the investors.
Insurance is must for every individual at least for those on whom others are dependent.
One should get insured at least 8 times of his annual income up to the age of 40 and thereafter it should be re valuated after every stage of life.
Insurance is required till the age normally up to 55 years, when in general person get free from financial burden of survivals. It may vary from person to person.
All liabilities must be covered with insurance.
Insurance Premium is long term commitment hence utmost care is required in this regard, no policy should laps during the term is the responsibility of Life Assured in his own interest only.
*Mutual Funds:
*Mutual Fund is the best tool for market related investments for those who do not have sufficient knowledge of momentum of the market and those who do not have sufficient time to manage his market investment.
While investing in MF one should have long term horizon, he should consider it that he is investing Term Deposit, where he is not withdrawing money till maturity. Ideal term should be more than 3 years.
Best way of investing in MF is SIP where average Rupee concept applies.
Always prefer to invest in ongoing Scheme than in NFO. Take into mind suppose you know two kids one is studying in 9th Std and throughout his career secured more than 90% marks, what will be possibility of his failure, certainly 0.0000001%. Other is just stepped in School can you predict about his future academic performance?
While selecting ongoing Scheme of MF select the scheme which is having investment objective of
O% to 100% Equity and O% to 100% in Debt Market. Downward movement in such type of scheme is less that other schemes while market is volatile or having downward trends.
*Recommendations:
First of all get yourself insured adequately before making any other Investment to protect your dependents.
Always prefer to take term Insurance without return of premium. This product is very much cheap. For e.g. person of 35 will get risk cover of Rs. 10 lacs by paying just Rs.3200(approx.) per year for next 30 years.
Invest remaining portion of your investable amount in Mutual Fund and other investment products.
Always diversified your portfolio.
Ideally invest% equal to your current age in secured products and 100-current age into equity related products, preferably in MF.
Make regular investment.
Never think ULIP as the option for MF.
Make your investment decision on the basis of your future need.
We offer personalize financial planning on need base.
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