Pay 6000 per month for 10 years, get 6000 per month for 30 years!

The plan which you're talking about gives annualised return of  approx 6%.

Not advisable to invest. Beware dimers.

Please calculate XIRR for the amount invested overtime and returns over the payout period and post here ^^

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Ramta_Jogi wrote:

Please calculate XIRR for the amount invested overtime and returns over the payout period and post here ^^

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IRR would be apt over XIRR and it is 6%. He is just trying to sell policies to get some commissions.

Net return after 42 years of this at assuming average inflation (6%) will be loss of 3,300 rs

legend101 wrote:

Net return after 42 years of this at assuming average inflation (6%) will be loss of 3,300 rs

If done monthly, it will be -52k

XIRR is 5.576%... Totally Avoid!

I suggest everyone to invest same in very good mutual funds or best performing strong stocks such as L&T, Unilever, Infosys, Reliance etc. You will be surprised with returns. minimum 10 times the above said.

rn09 wrote:

XIRR is 5.576%... Totally Avoid!

@a1992 is this a good plan?

sunnydurga wrote:

I suggest everyone to invest same in very good mutual funds or best performing strong stocks such as L&T, Unilever, Infosys, Reliance etc. You will be surprised with returns. minimum 10 times the above said.

Which are good mutual funds to look at,  at the moment?

For This XIRR is Around 5.5% 

6000Pm For 10yr or 120 Months  with 5.5% RD is = 9,60,120

Then 9,60,120 Rest For 2 Year so FD With 5.5% is = 10,70,824

Then it is SWP for 30 Years With 5.5% is Calulated around = 6000Pm For 30 Years 

So Very Bad Investment Option Not Even Beat Inflation 

Looks Like  LIC Policy Beware 

OP, let’s reverse this scheme. Keep paying me 10k for 10 years. Wait for 2 years. And I will pay 10k for 30 years. Deal?

Bhai thread delete karde, kuch anap-sanap ho jayega

sunnydurga wrote:

I suggest everyone to invest same in very good mutual funds or best performing strong stocks such as L&T, Unilever, Infosys, Reliance etc. You will be surprised with returns. minimum 10 times the above said.

You can't invest blindly in stocks. The biggest names of yester years are nothing more than dust now. I mean not like totally invest and forget. 

Reliance as such is more prone to a shock decline since it is a one man show on the forefront (Mukesh, 65 years). Remember, in November'20, there was fake news of his ill-health and that he is undergoing treatment in London? The stock dropped 7 on the rumour.

Even MFs you need to keep a check on lest its fund manager changes or its underlying stategy undergoes a fundamental change or it just starts performing poorly over an extended period of time.

Don't Fall For This Trap Because, We Can't Predict Future, In Case Of Any Issue With Company " Diwala " Will Happen...

All Terms Are Favourable To Companies Not Us...

This Type Of  Schemes Are Already Available In Hdfc Bank... Ask For Lockers They Will Force Us To Take These Schemes Else No Locker Will Be Given..

UnderNation wrote:
Don't Fall For This Trap

Actually this is not a trap... This would give you tax free returns. Though mostly suited to those who don't understand term insurance or anything else related to investment or those who are happy with around 6 percent post tax returns. 

LIC and Absli has come up with such plans under the garb of "insurance cum saving schemes" and try to sell it as an alternative to PPF. I read their brochure though once you ask for the TnC from the agents, they run for cover. 

Ramta_Jogi wrote:

You can't invest blindly in stocks. The biggest names of yester years are nothing more than dust now. I mean not like totally invest and forget. 

Reliance as such is more prone to a shock decline since it is a one man show on the forefront (Mukesh, 65 years). Remember, in November'20, there was fake news of his ill-health and that he is undergoing treatment in London? The stock dropped 7 on the rumour.

Even MFs you need to keep a check on lest its fund manager changes or its underlying stategy undergoes a fundamental change or it just starts performing poorly over an extended period of time.

I disagree in the context. Yes! Research is important while picking stocks for short term say 1-2 or 3 years. But if you are investing for 10-20 years we can fully trust these best performing stocks with strong principles and business foundation.

I challenge anyone to show me an instrument which gave higher returns for someone who invested say 10-20 years before in the best performing strong stocks (except for property)

Do keep in mind that this is applicable only for 10+ years of continues or onetime investment. Any given point of time far better than any policy, FD etc

sunnydurga wrote:
I disagree in the context. Yes! Research is important while picking stocks for short term say 1-2 or 3 years. But if you are investing for 10-20 years we can fully trust these best performing stocks with strong principles and business foundation.

I challenge anyone to show me an instrument which gave higher returns for someone who invested say 10-20 years before in the best performing strong stocks (except for property)

Do keep in mind that this is applicable only for 10+ years of continues or onetime investment. Any given point of time far better than any policy, FD etc

You are talking of 2 different things. 

Agreed stock markets give u best returns over a long period of time but you can't just pick up any stock from large cap universe and keep putting money in it without reassessing on an yearly basis. Returns on Reliance industries over a 10 year period from 2004/5 to 2014/15 were less than compounded returns on FD 

Ramta_Jogi wrote:

You are talking of 2 different things. 

Agreed stock markets give u best returns over a long period of time but you can't just pick up any stock from large cap universe and keep putting money in it without reassessing on an yearly basis. Returns on Reliance industries over a 10 year period from 2004/5 to 2014/15 were less than compounded returns on FD 

Even a new investor knows not to invest in one stock & that's why its called portfolio.  and why are you only considering reliance, that too 2004-14? what about 2013-23? what about other large cap stocks which are consistent? especially IT? Can you do the same math?

Like I said even with all the falls and poor performance these good stocks investments are always better than any other long term policies. Looking for best returns for 10+ years. Nothing can beat stocks and property.  Especially with current Economic stability and future prospectus of Indian economy. Nifty growth in last 10 years will answer everything.

sunnydurga wrote:

Even a new investor knows not to invest in one stock & that's why its called portfolio.  and why are you only considering reliance, that too 2004-14? what about 2013-23? what about other large cap stocks which are consistent? especially IT? Can you do the same math?

Like I said even with all the falls and poor performance these good stocks investments are always better than any other long term policies. Looking for best returns for 10+ years. Nothing can beat stocks and property.  Especially with current Economic stability and future prospectus of Indian economy.

Why not do the maths from 1999 to 2009? Why only choose a decade of bull run (2013-2023) and not the decade of mega crashes? Even if you take the investment from 2008-2020 covid crash, your return on investment for those full 12 years would be less than 2 percent that is less than saving interest in a bank (and it took a good 7-9 months for the recovery) 

Or for that matter even a relative short term of 2005-2008. 

It's not all roses in stock market. It takes a decade to get the brick wall up (investment), and I guess another decade to cement it (the returns) 

Ramta_Jogi wrote:

Why not do the maths from 1999 to 2009? Why only choose a decade of bull run (2013-2023) and not the decade of mega crashes? Even if you take the investment from 2008-2020 covid crash, your return on investment for those full 12 years would be less than 2 percent that is less than saving interest in a bank (and it took a good 7-9 months for the recovery) 

Or for that matter even a relative short term of 2005-2008. 

It's not all roses in stock market. It takes a decade to get the brick wall up (investment), and I guess another decade to cement it (the returns) 

Mast likhte ho bhai tum

I agree that you cant buy good stocks and forget it for 10yrs. periodic assessment of your investments is must

Ramta_Jogi wrote:

Why not do the maths from 1999 to 2009? Why only choose a decade of bull run (2013-2023) and not the decade of mega crashes? Even if you take the investment from 2008-2020 covid crash, your return on investment for those full 12 years would be less than 2 percent that is less than saving interest in a bank (and it took a good 7-9 months for the recovery) 

Or for that matter even a relative short term of 2005-2008. 

It's not all roses in stock market. It takes a decade to get the brick wall up (investment), and I guess another decade to cement it (the returns) 

Again like I said nothing will give as much return as in stock market and property in long term. No matter you consider the covid crash and all.. do a comparative study for 10 years each for all instruments along with stocks. don't consider only one negative crash like covid. Only fools will withdraw loss during a crash.

Like I said I challenge which will give better returns in longterm like 10+ please share proper data. I'm ready to debate. 

Had any time you seen Nifty reduced after 10years? Stocks are always forward looking and a good investor knows how to milk. why should we be behind these peanut policies? real loot is only in stocks. I Don't have one single insurance except for some emergency medical. I put most of my savings in stocks for last 5 years and reaping a hell of returns. Even for adani my profits were down from 1000% to 200% but still its short term long term wont be like this. this doesnt mean stock market is bad just because of adani share. see the future. Im only bothered about 10+ years.

Investors should not be misguided. Put you money intelligently in areas where you can reap maximum profits and don't touch this money for minimum of 10years.

What people are not realizing is taxation. 1.You can get 7% in FD for example, but no one will give you high FD returns for 42 years, you will have to renew every 3 years at market rates 2. FD returns are taxable, so if you are in high tax brackets, you will get 4% and not 7% after tax 3. Mutual funds can generate better returns, but they are not guaranteed and not everyone invests full amount of savings in a single place. You should put some money in risk free investments as well to diversify risks. 4. IRR for this plan is around 6.2%, as the persons looking at 5.76% are not calculating correctly. You pay monthly and get returns monthly, plus all your invested amount back in the last year. So someone in the 30% tax bracket will receive 9%+ guaranteed tax free returns for any amount they wish to invest, 5k , 50k or 5lacs, there is no limit!

a1992 wrote:
What people are not realizing is taxation. 1.You can get 7% in FD for example, but no one will give you high FD returns for 42 years, you will have to renew every 3 years at market rates 2. FD returns are taxable, so if you are in high tax brackets, you will get 4% and not 7% after tax 3. Mutual funds can generate better returns, but they are not guaranteed and not everyone invests full amount of savings in a single place. You should put some money in risk free investments as well to diversify risks. 4. IRR for this plan is around 6.2%, as the persons looking at 5.76% are not calculating correctly. You pay monthly and get returns monthly, plus all your invested amount back in the last year. So someone in the 30% tax bracket will receive 9%+ guaranteed tax free returns for any amount they wish to invest, 5k , 50k or 5lacs, there is no limit!

Rs 6000 would be exclusive of GST. so basically you are paying taxes in advance to government.

Have a term plan for insurance coverage and invest in index fund and get better return even after paying 10% LTCG tax. PERIOD.

a1992 wrote:
What people are not realizing is taxation. 1.You can get 7% in FD for example, but no one will give you high FD returns for 42 years, you will have to renew every 3 years at market rates 2. FD returns are taxable, so if you are in high tax brackets, you will get 4% and not 7% after tax 3. Mutual funds can generate better returns, but they are not guaranteed and not everyone invests full amount of savings in a single place. You should put some money in risk free investments as well to diversify risks. 4. IRR for this plan is around 6.2%, as the persons looking at 5.76% are not calculating correctly. You pay monthly and get returns monthly, plus all your invested amount back in the last year. So someone in the 30% tax bracket will receive 9%+ guaranteed tax free returns for any amount they wish to invest, 5k , 50k or 5lacs, there is no limit!

Thanks for sharing the rosy picture. 
Please also share if you can find any cons in this plan. Like what if someone wishes to come out / liquidate in between. 

rn09 wrote:

XIRR is 5.576%... Totally Avoid!

Also OP missed to inform that GST will be applied on your contribution..😂.. taking the return further down

If you can't put the full info in the post, then don't post such topics please.

Invest the same 10,000 per month in PPF for 10 years. For next 5 years, just deposit 500 per year to keep the PPF active. You will get much better return on the 15th year. That too absolutely tax free. Then you can buy annuity product if you want and get income for own life, then life of souse and even return of principle to nominee afterwards.

Insurance is an expenditure for coverage of risk. It is never ever an investment. 

panchabhut wrote:

Invest the same 10,000 per month in PPF for 10 years. For next 5 years, just deposit 500 per year to keep the PPF active. You will get much better return on the 15th year. That too absolutely tax free. Then you can buy annuity product if you want and get income for own life, then life of souse and even return of principle to nominee afterwards.

Insurance is an expenditure for coverage of risk. It is never ever an investment. 

And what will you get out of PPF after 5 months if something happens and you drop dead? 50,000 or much much more?

a1992 wrote:
And what will you get out of PPF after 5 months if something happens and you drop dead? 50,000 or much much more?

For that, there  are many pure term insurance products at very cheap rates. No need to pay 1.20 Lakh a year. Even if the same 1.20 Lakh a year is bifurcated and first term plan premium is paid and balance amount is invested in PPF, it would still give better returns.