HOW YOU ARE LOSSING LAKHS OF MONEY , BY OPTING FOR LIC .... INVESTMENT/MUTUAL FUNDS DISCUSSION !!
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Hey guys
i will explain by an example ( these aren’t exact figures ) :-
In LIC
• I opt for a LIC PLAN , of 12 lakh assured money …
• my age is 18 , I need to pay 36,000 premium per year for 32 years
• i would get 50 lakhs on maturity and i also get a life cover for 24 lakhs
✓ NOW HERE COMES THE SECOND OPTION :-
• instead of LIC , we can invest that money in term insurance and mutual funds
• term cover for 24 lakh = 7000rs per year …
i.e. 2 lakh for 32 years
• money left for mutual funds = 12 lakh – 2 lakh = 10 lakh
we get 2600 rs Per Month to invest SIP ( Large Cap Equity mutual funds who have 5 star rating ) … ( 10,00,000 /32 /12 = 2600 )
• lowest return in history of ( large cap equity mutual funds who have 5 star ratings ) = 10 % …. average is around 13% ….
• let’s calculate SIP returns @ 10 % which is worst case scenario ….
it’s comes around 75 lakhs ….
• LIC IS GIVING MAX. 50 LAKHS , WHERE AS WITH SAME MONEY , MUTUAL FUNDS are giving atleast [ 75 lakhs to 2 crore ]… No upper limit as it depends on market and a
• Now I leave the decision upon you …
• Please Note :- i am only telling this , upon meeting many financial planners and many Lic agents …
If anyone have LIC plans , i am not making fun of their choice , I am just trying to help … I myself has taken LIC 2 year back , which i am going to stop …
If i am wrong , please please comment , as I have shared this with my close friend , in his family , he has around 8 policies , if 1 policy is saving atleast 25 lakhs , then he is in loss of around whooping 2 crores …
• IF IT WAS USEFUL THEN PLEASE TELL YOUR FAMILY MEMBERS OR RELATIVE’S , HOW LIC ARE BAD FOR THEM ….
• This post credit goes to my friend Mohit , he isn’t on desidime …
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10.5% return is on the higher side my friend. Not saying you can’t get that much return but it’s difficult. On the flipside you might get a loss on the mutual fund portfolio also.
LIC is a safe bet. You’re getting cover plus 6-7% interest on your money.
Now obviously if you can take risk, you should invest in mutual funds only.
Bro , please check on website , my friend has gone through every website of mutual funds … Like CRISIL , Value research etc … You can match my figures … 10.5% is Lowest in history of SIP Of equity mutual funds with rating 5 star …
It’s usually in bracket of 11-17% … I have taken worst case scenario
So according to your view, bank fd is a scam too?
Remember PMC.
If one doesn’t know about which mutual fund to buy, simply go for Index Funds.
I can invest 40kper year , where should i invest.
Which mutual funds specially?
Do 3 different SIPs of 1K each. High risk means high returns or high losses. So if you’re risk averse then don’t go for equity funds.
Maybe try liquid funds at the start and then move them to equity funds.
Don’t mix life cover wishing for return. Simple as that.i fully agree with your post
that’s the best line to sum up , how did i forget… It’s the very basic thing , which common people aren’t aware of … NEVER INVEST IN ANY PLAN , WHICH IS TALKING ABOUT BOTH INVESTMENT AND INSURANCE , ITS A TRAP … Like money back policies , ullip , Lic etc ….
Don’t mix investment with insurance.
LIC final payout is tax exempt ! Not so sure.
What about this mutual fund , how much tax.
Bro can you see the difference in returns , believe me you won’t mind paying tax …. There are mutual funds , with tax benefits , elss , and all that … Search on Google
How is this investment faring , should I invest rather in this.
This is nps tier 1 , running from last 4.5 yrs
NPS tier 1?
Dont misguide people
LIC WAS BEST IN PAST
LIC IS BEST IN PRESENT &
LIC WILL BE BEST IN FUTURE ALSO.
No other investment can give you 100% asurity of getting money what is told.
Well I just shared my opinion … I respect your opinion , if LIC works for you , then good …
Your topic should go for term plan not for endowment plans…and invest rest of the money to mutual funds
Bro most people don’t understand word endowment … So used LIC word and comparison is also of LIC
In Equity and Debt MF, is Dividend good or Growth?(Seperate answers are accepted).
And what’s with Regular and Direct?
Direct funds you manage directly ,no agent commission you are paying.
This is a big source of income for corporate.
Like axis bank acts as agent for axis mutual fund. Even though it seems to be direct it isn’t. When u buy this through axis bank
Growth is always best.
LIFE INSURANCE CORPORATION [ LIC ] means assurance , security , it is an assured , secured investment that one makes for future needs , after retirement , and also after life for the family members who he leave behind .
Mutual funds on the other hand are pure investment to reap benefits from them with risks involved in it , whether known or unknown , Hidden or bluffed.
Bro this is how Marketing makes common people fool … LIC is Worst kind of investment , you can ask any financial advisor or who have little bit knowledge in investment ….
What we do wrong in these type of comparison , that we don’t consider terms insurance in PPF option , you have to take Terms insurance , it’s the necessity for every earning individual and it hardly cost 500rs per month … Now compare both option , PPF + Terms insurance with LIC … In both case if you invest same amount of money , you would earn lakhs of money more with same investment in PPF + Terms conditions …
@panchabhut do u invest in tier 2 also ?
If yes what are allocation, which fund manager ?
Returns?
no. as the withdrawals from tier – II are taxable.
+1
6 bje ready Rahna 1₹ me TV milega.. Translation- be ready At 6pm You will get fooled by Amazon
Brah. Don’t confuse insurance with investment. Both are important to a responsible person. Choosing the right insurance plan n investment methodology is tricky
Hi I want to invest 3 lakhs as lumpsum in debt mutual funds to get better returns compared to bank fd what about taxes? I am a student and I am investing my father’s money as he told. Is there any problem @B3A5T @bikidas2060580 please answer this
Bhai, I’m no expert. Sorry.
@Gotiya20 You might want to check your figures again:
https://www.moneycontrol.com/mutual-funds/perfo...
Disclaimer: This post isn’t to point out that you are wrong. I do not know if you are wrong BUT the data that I have does not gel with the figures you specify. I do not know if I have sufficient data, so I would welcome any data that you can provide that would back up your figures
Consider only the 5 star funds (large cap, equity oriented)
You claimed:
Lowest return in history = 10%? : I see far lower than that
Average return = 13%? for which time period are you computing it?
Even if we do consider that the category average is around the 10-11% mark that would mean that 50% of the funds that you invest will get returns of less than 10-11%. And the only way is to pick and choose the best and continuously monitor them (I don’t mean on a daily basis) or to invest in every fund in the category and hope to get the category average returns. Remember that unless you are fully into it these kinds of decisions are difficult about what to select, when to exit & so on
Most people don’t have either the time or the knowledge to do so.
Now it’s all very well to say that a SIP will solve all your problems but what happens when you have a SIP and you want to stay invested for the long term but either the fund house or the regulatory authorities decide to wind up the scheme? Then it’s ta-ta bye-bye to your expected returns. It’s happened far too often for me (I’m probably a bad investor but I think I fall in the average category; friends of mine have fared worse and very few have actually done well)
Also, what do you do when the CRISIL rating of your 5 star fund changes (I assume that happens, please correct me if I’m wrong)? Do you exit at lower than expected returns?
By all means, I fully endorse your argument that you should not mix insurance with investment++ unless it makes financial sense to do so. So that means comparing apples with apples and oranges with oranges (i.e. 100% guaranteed returns with other products that offer you 100% guaranteed returns). If you want to compare apples with oranges (i.e. 100% guaranteed returns v/s unsure returns, then at least try to use the expected return and averages so you have a better idea of which product is actually better)
Can anyone please tell me where I can get details of all the funds that have closed in the last 10 years?
Also fund rating changes?
This would be helpful for some basic number crunching
Thanks, in advance.
Now, this isn’t my field, so I would be very happy if you could educate me. I too would like to build up a corpus for my family’s and my own future
++Clarification in case I wasn’t clear. Insurance is a must have product. Not having any insurance counts as one of the daftest things anyone could do. What I’m referring to is whether to go for a pure insurance product like term insurance or whether to opt for an insurance product that also offers guaranteed returns
Insurance is a must have product.
I would prefer to correct the above statement with below.
‘’Insurance is a must have product’’ for salaried class and living on month to month.
It is MUST for people who takes loans and buy property.
It is NOT must for wealthy guys (like property owners > 2cr /head) who do not take loans.
Around 80% of Indians don’t understand the meaning of life cover and they keep comparing them with returns of FDs, Mutual Funds etc etc. Actually these are the people who know their death date and they are bigger than God itself so keep on comparing sense with nonsense.
If you die within 3-4 years of doing an FD or Mutual Fund all you will get is BJKT (Kapil Sharma’s line) and you family/relatives will curse you forever. Life Insurance is not a income product but a risk management technique used to assure some help in case you are gone which happens eventually.
One of my cousin had taken policies in 2007 and paid Rs.7+ Lakh in total as premium around different plans till 2010 until one unfortunate day when he died of cardiac arrest. The family later get around 80 Lacs after-death payouts. Although person was lost but which bank FD or mutual fund will give you this amount on death of a earner? Now atleast they living a respectful life after his death. He wont come but he done enough for his family. Bhabhi started her work from home (around 1 year later) and never married again. Living with in-laws taking care of them. Children are in their 20s now and they have enough money for college expense.
Insurance is not a Income generation product. If you can’t understand don’t go for one but don’t spread your illiteracy around and make people take bad decisions of not taking one.
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