Prajna Capital - An Investment Guide

A joke in the personal finance industry is that investors are more willing to buy insurance policies than mutual funds. When quick profits become more challenging or losses become the order of the day, it's probably natural for investors to take shelter under safety. But then can insurance be a supplement for investors. The question assumes significance, as it is not the job of an insurance policy to provide capital or yield comfort. However, in the last 3-4 years, insurance is being sold as an investment option rather than as a risk cover and hence, investors too have begun to expect insurance to do the job of wealth creation. One of the reasons could be due to the fact that the middle income segment, till the current decade, used insurance as a savings product. The legacy seems to have passed on over the years and products like the unit-linked insurance plan ( ULIP ) have only strengthened the belief of investors that insurance is for investment. However, investors can go for ...