Recently, we came across a person who was mis-sold a ULIP. Yes, mis-selling of ULIPs still continues. This lady got a call from her insurer, a reputed private sector insurance company, she was told that the ULIP she had purchased earlier was not performing well, and the company is discontinuing it. The company suggested that she should buy a new ULIP with better prospects. The lady fell for it and completed all the formalities as directed by the agent. But she was shocked when her bank account was debited with Rs 1 lakh, the premiums of both the insurance policies. In short, the first policy was never discontinued.
When she reached out to us through a friend, we advised her to stop her ULIPs. We told her she might lose most of her premium she paid for the ULIPs, but she would be still better off if she invest in a mutual fund. However, the lady was not ready to discontinue her ULIP investments as she was scared of losing her money.
Are you in a similar situation? Do you want to get out of your bad ULIP investments, but not convinced how you would be better off by investing in mutual funds, even after the reintroduction of long term capital gains (LTCG) tax.
Here we have tried to illustrate how it makes sense to surrender your ULIP which was mis-sold to you and invest the money in mutual funds.
We have taken two unit linked plans - from ICICI Pru Life Insurance and HDFC Life - for illustrative purpose. We have compared how investing the same amount in mutual funds works. The ULIP illustration was created using the insurer's calculators. We have taken mutual fund performance at same rate of 8 per cent as well as on 12 per cent and 15 per cent. See illustration below:
The table clearly shows that mutual funds win. If we look at the life insurance of Rs 6 lakh offered by the ULIPs, It is clearly not enough to take care of the financial need of your family after your death. If we look at a pure term insurance cover of Rs 25 lakh life cover, four times the sum offered by the ULIPs, it will cost only around Rs 300 per month. If you invest the rest of the money in a mutual fund scheme, you would still make Rs 8.44 lakh (at 8%), Rs 15.83 lakh (at 12%), and Rs 17.74 lakh (at 15%).
Mutual fund advisors say that liquidity in ULIPs is the main concern apart from the returns and the modest insurance cover. If a unit linked plan under-performs, you cannot move to any other plan conveniently. It is not the case in mutual funds. Also, if you need your money, you can easily redeem your mutual funds as against ULIP where you have to understand the terms and conditions
ULIPs are a long term product of, say, 10 or 20 years, and you cannot stick to one fund manager throughout the long term, say advisors. in ULIPs, you are stuck to a fund manager. Management risk diversification is missing in ULIPs
SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds
For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300
Axis MF has announced that the NFO period of Axis Fixed Term Plan Series 18 (15 Months) under Axis Fixed Term Plan Series 17 19 has been preponded from February 27 to February 24. --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C. Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving) Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications These Application Forms can be used for buying regular mutual funds also Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds ) HDFC TaxSaver ICICI Prudential Tax Plan DSP BlackRock Tax Saver Fund Birla Sun Life Tax Relief '96 Reliance Tax Saver (ELSS) Fund IDFC Tax Advantage (ELSS) Fund SBI Magnum Tax Gain Schem...
Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 The new finance minister Arun Jaitley has just presented his first budget. What measures does the budget contain that will specifically impact savers and investors? Here they are: 1. Housing loans exemption for self-occupied properties increased to Rs2 lakh: Earlier this amount was Rs1.5 lakhs. This move barely keeps pace with the inflation in asset values. 2. Investment limit under 80 (C) increased to Rs1.5 lakh: This is a good move again and offers some relief to taxpayers. 3. IT exemption increased to Rs2.5 lakh, Rs3 lakh for senior citizens. This comes as a minor relief for taxpayers. 4. Annual PPF ceiling to be enhanced to Rs1.5 lakh, from Rs1 lakh: This is in tune with the change in 80C. 5. Long term capital gains tax for debt funds has been rai...
Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) This fund maintains a quality portfolio of large-cap orientation. The fund manager adheres to a bottom-up investment approach and looks for companies whose current market price does not reflect future growth prospects. Investments are in companies that can drive future earnings growth. Stocks are selected based on the company's financial strength, management's expertise, growth potential within the industry, and the industry's growth potential. The portfolio is well-diversified across sectors and market capitalisation and follows a blend of value and growth style of investing. The fund follows a predominantly large-cap allocation of over 70 per cent, with small-cap allocation never exceeding 10 per cent since inception. Performance The fund doesn't dev...
Match your Goals Risk Profile With ELSS Investment DIFFERENT TRACKS Unlike funds with a clearly defined investment universe -- large-cap, mid-cap or multi-cap - Tax Saving Schemes do not specify investment focus If you are looking for an equity Linked Savings Scheme (ELSS) to pare your tax burden, the plethora of options may confuse you. Many investors simply opt for ELSS funds , also called tax saving schemes with the best return over a certain time period. However, this may not yield the best results. There are several types of ELSS funds and it requires a nuanced approach to pick the right one. DIFFERENT RISK PROFILES Unlike funds with a clearly defined investment universe -- large-cap, midcap or even multi-cap schemes in the ELSS category do not specify their investment focus. While these schemes have the flexibility to invest anywhere, most tend to follow a defined template. For instance, some funds take a distinct large-cap tilt with a limited exposure to mid or small-cap st...
Invest in Reliance Tax Saver Fund Online ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saving Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) Fund 9. Religare Tax Plan 10. Birla Sun Life Tax Plan Invest in Best Performing 2016 Tax Saver Mutual Funds Online Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a mis...
