Many agents are faced with a serious issue while selling life insurance. The younger customers tend to think that it is better to buy term insurance instead of traditional endowment insurance. The popular feeling is that traditional endowment insurance is low return and therefore not worth it. Instead with the same money if one buys… Continue reading Traditional Endowment vs. Term Insurance
Simply buying a ULIP or a mutual fund does not get you returns, no matter what the past history of return on the fund was. In fact never look at the past history. There are two circumstances when you have a higher possibility to earn money on ULIPs. The two conditions are When you buy… Continue reading When do you earn money on ULIPs or Mutual Funds?
The National Pension Scheme offers investors options in the kind of investment fund they would like to invest, based on their risk appetite. Among the options are equity based investments, where up to 50 % and up to 75 % of the invested amount is invested in equities or shares. The primary objective of choosing… Continue reading Pension Schemes should be Defined Benefit
The share market is crashing and we do not know when it will stop crashing. In the recent past the BSE SENSEX crashed from a peak of about 41000 to 27000, currently. This represents a fall of about 34 %. The SENSEX is at approximately 65 % of what it was in February, 2020. Continue… Continue reading What happens to MF Investments Now?
There are 4 types of funds in a ULIP scheme. These are the Growth Fund, the Secured Fund, the Balanced Fund and the Bond Fund. The policy holder has the option of investing in one or more of the funds as per his or her choice. The policy holder also has the option of shifting… Continue reading The Risks in ULIP Funds
With LIC launching two ULIP schemes in recent times, the flavor of the season seems to be ULIP. Agents are by and large not too keen to sell ULIPs. Having burnt their fingers earlier, this is understandable. However there is no need to put a blanket ban on selling ULIPs. ULIPs are complicated products. Selling… Continue reading ULIPs vs. Traditional: Whats the difference?
We have pointing out in this Blog that life insurance endowment is the best long term savings option for long term financial needs. One of the principal reasons for this is that it is low risk (not necessarily low returns). The question that arises next is that bank fixed deposits are also low risk, then… Continue reading Bank Deposits Are Not for Long Term Planning
High risk investments are not suitable for long term needs. The risks of not getting your money for the planned need is very high. Long term needs are ideally met by low risk investments.
A Rent Past Experience It will be worth recalling a recent experience of the introduction of a new financial product for retail investors. Every now and then, there are new avenues of investments for the retail investor. A few months ago it was the Alternate Funds which were aggressively sold. The Alternate funds also called… Continue reading Bonds of State Governments
In the Budget for 2020, the Finance Minister has provided 2 options for tax payers. The Minister has provided the option of continuing with the regime of tax exemptions that tax payers were used to all these years, and pay a higher rate of income tax. If a tax payer opts out of the option… Continue reading Budget 2020: Tax Exemptions – To Take or Not To Take
