Kotak assured saving plan

You put 1 lac in fd and with 8% interest, it would become close to 5 lacs in 20 years.

1L per year in most mutual funds would give you 15L in 10 years even at less than actual returns of 8 percent. 

Depositing that 15L in lumpsum for another 10 years in a mutual fund would accrue total amount of 32 lakhs.......

Have you even calculated the final interest percent returns of your kotak plan? 

@baaz4u2007 just ask ur agent whats the XIRR?

mayank_span wrote:

You put 1 lac in fd and with 8% interest, it would become close to 5 lacs in 20 years.

Here interest is taxed but in kotak plan its not

Ramta_Jogi wrote:

1L per year in most mutual funds would give you 15L in 10 years even at less than actual returns of 8 percent. 

Depositing that 15L in lumpsum for another 10 years in a mutual fund would accrue total amount of 32 lakhs.......

Have you even calculated the final interest percent returns of your kotak plan? 

No not calculated..

baaz4u2007 wrote:

No not calculated..

Then calculate... 

The net rate of return is  6% .... Plus if there is tax on that gains (if tax rate is 30% after 20 years.. net rate of return is 4.2% on your investment)

Yes, this is the best policy.. for the bank. 

ConfirmPassword wrote:

The net rate of return is between 5 to 6% .... Plus tax on that gains.

Fd will give more returns

No tax on gains!!! 

baaz4u2007 wrote:

No tax on gains!!! 

Then the rate of return in 6%

baaz4u2007 wrote:

No tax on gains!!! 

Thats the best part

ConfirmPassword wrote:

Then the rate of return in 6%

Thats is main reason still thinking to buy or not ?? Any other suggestions r welcome 

baaz4u2007 wrote:

Thats the best part

LOL, you're being looted by the bank and feel that the tax part is the best part.

baaz4u2007 wrote:

Thats is main reason still thinking to buy or not ?? Any other suggestions r welcome 

Even you calculated it and got 6%?

Check dm @baaz4u2007

stella.dmonte654 wrote:

Check dm @baaz4u2007

referral?

Thanks all for reply .. not buying this plan now.. will search for other gud plans .. suggestions r welcome 

baaz4u2007 wrote:

Thanks all for reply .. not buying this plan now.. will search for other gud plans .. suggestions r welcome 

are you looking only for insurance plans like the one discussed here?

what is the purpose of your investment?

6% return, kotak is giving better than hdfc, I have seen my uncle's plan where the return on calculation came to 4.1%.

With inflation only over 6.5%, currently, the buyer of the policy is losing money.

The only good insurance product is pure term life insurance. every other product is to loot the customer and profit the insurer and the agent. Insurance products are for covering risk. They are not investment products. If you are thinking of investment, dont even look at insurance products.

So many Life insurance Plans from different companies in market ... some tax benefit removal of above 5,00,000 policy deadline which ends on march 31..

following this thread.

The tax benefits of insurance products under new tax regime are negligible and will become non-existent in future. Do not take long term recurring expenditure decision based on such illusions of tax benefit. 

panchabhut wrote:

The only good insurance product is pure term life insurance. every other product is to loot the customer and profit the insurer and the agent. Insurance products are for covering risk. They are not investment products. If you are thinking of investment, dont even look at insurance products.

would you say the same if you are getting around 6.5-7% post tax returns as an investment which are better than most debt product returns post tax.
I agree with your statement ,most people don't need to invest in this ,but you don't invest your entire savings in equity , you need a certain percentage in debt products as well.
I know I'm saying something different but if you already invest most in equities and have some surplus to invest in debt products.

LightYagami wrote:
would you say the same if you are getting around 6.5-7% post tax returns as an investment which are better than most debt product returns post tax.
I agree with your statement ,most people don't need to invest in this ,but you don't invest your entire savings in equity , you need a certain percentage in debt products as well.
I know I'm saying something different but if you already invest most in equities and have some surplus to invest in debt products.

Insurance is a expenditure for risk cover. It is not an investment in debt instrument. The two can never be compared. There are many debt instruments that provide 6-7% post tax returns. And if its long term, then both NPS (debt) and PPF provides better options. 

panchabhut wrote:
Insurance is a expenditure for risk cover. It is not an investment in debt instrument. The two can never be compared. There are many debt instruments that provide 6-7% post tax returns. And if its long term, then both NPS (debt) and PPF provides better options. 

Please tell me debt instruments giving 6.5-7% post tax returns, PPF is one I agree.

LightYagami wrote:
Please tell me debt instruments giving 6.5-7% post tax returns, PPF is one I agree.

Presently many banks are offering upto 8% on FD for non-senior citizens. Some small fin banks are offering 9% also. All bank deposited are insured upto 5 Lakh per bank.
And if one is willing to go for secondary markets many NCD/bonds with AA/AA+ rating are available with 8-9% Yield.
Debt funds are also there with lower overall tax impact due to indexation benefits. But have higher risk factor.

panchabhut wrote:

Presently many banks are offering upto 8% on FD for non-senior citizens. Some small fin banks are offering 9% also. All bank deposited are insured upto 5 Lakh per bank.
And if one is willing to go for secondary markets many NCD/bonds with AA/AA+ rating are available with 8-9% Yield.
Debt funds are also there with lower overall tax impact due to indexation benefits. But have higher risk factor.

lets suppose I get a FD at 9% , post tax it is 6% return (assuming 30% tax bracket) for which I have to search small finance banks. NCDs have the same issue even if I get a bond at 9% , post tax it is 6% , true I can get NCDs at higher rates but then all NCDs carry risk.
So if I'm getting 6% returns even by taking slight risk , why should I not consider insurance product as an investment if I'm getting more than 6% which is risk free.
Note: I'm also think that term insurance is the only insurance people should take.

LightYagami wrote:
lets suppose I get a FD at 9% , post tax it is 6% return (assuming 30% tax bracket) for which I have to search small finance banks. NCDs have the same issue even if I get a bond at 9% , post tax it is 6% , true I can get NCDs at higher rates but then all NCDs carry risk.
So if I'm getting 6% returns even by taking slight risk , why should I not consider insurance product as an investment if I'm getting more than 6% which is risk free.
Note: I'm also think that term insurance is the only insurance people should take.

1. All FD are secured upto 5 lakhs principal amount per bank and all instrance products by their very nature are unsecured. 

2. The returns for FD are guaranteed while there is no guarantee of return for insrance products. 

Insurance porducts can never ever be "risk free".

I have sorted out 2 plan with high irr 

1)Bharti axa smart invest guaranteed plan
2) maxlife smart fixed return digital titanium.

can we buy any one of them ... if yes online or offline which will be good .. any other good alternatives r welcome... i have checked this in policybazaar