Ask a question from Jagoinvestor

POSTED BY Jagoinvestor ON June 27, 2009 COMMENTS (351)

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351 replies on this article “Ask a question from Jagoinvestor”

  1. sapan shah says:

    Hello sir, I have all my account with idbi bank, but idbi bank not giving online fd closure Option. . Why they not give fd closure option. I choose this bank for all my family account (me, my wife, son, and huf) so what can I do? In idbi i do fd of my emergancy fund. But they can’t give online fd closing option. For fd closing we have to compulsory visit to the branch which is not possible in busy life. So i want to change bank or suggest me your view. I don’t like sbi, Bob, and pnb because then have lot of customers in branch When visited. Also they don’t give good service and value to Their customer. Give one of the good psu bank which give such kind of service, I put all my emergency fund in fd. Pls suggest. Also idbi bank give good service only problem is online fd closure. …Waiting for your reply. …

    1. Sorry, but almost all the banks need you to visit the branch (any branch in India) to close the FD .


    Hi Dr Mallikarjuna from Abu dhabi UAE.
    Nice blog with logical thinking!!
    My question: I got Jeevan Tarang for my son, started at his birth (policy start date 24-09-2009. Paid 7 premiums so far (premium Rs 24110, SA-Rs % lac).
    Now i feel its not good to continue. i wish to make it paid up. Whats your opinion? instead i am planning to make SIP MF of Rs 2000 per mnth.
    Pls suggest if should continue or what can be done??

    1. Yes, its good to stop it and start a MF investments. Our team can guide you on that

      We think our pro membership will help you as it fits in your requirement. We have various benefits under it like life insurance, health insurance, mutual funds and your financial analysis too..

      Just check out our Pro membership once and schedule a FREE call with us to know more –

  3. Mathew says:

    Hello Manish,
    I have a question about Jeevan Tarang LIC policy.
    After maturity of the Tarang Policy, Vested Bonus is given. After yearly he will get 5.5% of sum assured for 100 years, if he survives 100 years then Sum Assured is given & policy terminated; if he doesn’t survive nominee will get sum assured.
    So now what I want to ask is – If after Maturity I want to terminate the Policy will I get sum assured with bonus? Meaning I do not have 100 years life cover.
    Kindly Reply, Thanks.

    1. Yes, you can get it if you want to surrender it !

  4. Nikhil says:

    Hello Manish
    I started investing in SBI Magnum balanced fund a month back. The percentage allocated to my profile is 40 % equity and 60% debt . Will it be considered as equity fund ?

    1. No, only if it exceeds 65% , its considered equity fund

  5. prafull says:

    Hello jagoo team, I gain a lot of trust on jagoinvestor article and quality suggestion.
    I have a query like- if I have financial goal for both Short term and Long term Like

    Goal A – 60,000 INR – Duration 12 month — Each month deduct from saving account – 60,000/12 = 5000
    Goal B – 500,000 INR – Duration 36 month – each month deduct from saving account – 500,000/36 =13888

    I want that every month 5000 and 13,888 deduct from my account separately.
    and i can see somewhere online that after how many month – deduct amount + interest will reach my target amount for Each goal.

    Please guide me which option of investment is best suitable to meet my requirement
    where i can see amount saved for each goal. any tool or investment option available ?

    Mutual fund
    or any other investment option ?

    which one is the best and why ?

    Please guide me

    1. I am not aware of any tool as of now which will help you . You can basically keep an excel sheet at your end for this.

  6. Rohan says:

    Sent from my iPhone

    Begin forwarded message:

    Subject: investing of funds in respect of grandmother

    Sir, I am a serving officer (30 years) & have a query regarding investment of funds in respect of my grandmother (70 years). She has recently got her post office scheme matured (approx 3.5 lakhs) and FDs of approx 10 lakhs are in line to complete their terms next month. I want to park her money at a just place with following objectives :-

    A. Money should be safe.

    B. Should fetch her a monthly income of 6-7 thousand for her maintenance.

    C. Should beat inflation to a fair amount.

    D. Liquidity.

    E. No taxation.

    F. She wants to keep me as a nominee. Is there any taxation/ inheritance angle that I should take into consideration?

    Looking forward for your guidance. Thanks & regards.

    1. All the points are not possible in a single thing . A & C dont go hand in hand .

      Debt mutual funds are the closest to the need, and there wont be taxation angle too as the income wont cross teh limit for a year

  7. AlokAnand says:

    Hi Manish

    I have experienced a unique problem with IRCTC and SBI Credit Card. I tried to make a reservation through IRCTC seeking confirmed LOWER Birth. I was directed to make payment by IRCTC and at the end they asked that the option of Lower Birth is NOT possible – whether I want to continue or, decline the transaction. As I badly needed Lower Birth (for Senior Citizen travelling with me) so I opted to decline. IRCTC said they will make the reversal of payment. After couple of days I got a refund from IRCTC (minus Rs. 180/-). When I asked their representative, I was told that IRCTC has ACTUALLY reimbursed what they have charged. Now my next stop was the SBI Credit Card Helpline. There I was told that as the transaction has actually happened, so the merchant has charged their transaction fee…. In this whole episode I last my money. My question is WHY IRCTC CANNOT SHOW THEIR INABILITY FOR ALLOCATING PREFERRED SEATS PRIOR TO PAYMENT GATEWAY? Or, is there any other way ( some other Credit Card etc.) to evade this loss?

    1. Hi AlokAnand

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


      1. Alok says:

        Thanks manish,

        I am following up with the Railways for their comments on this issue.
        Hope sharing this experience will benefit other readers too

        1. Thanks for your comment Alok

  8. Sanjeet Kumar says:

    Manish, I just want to ask a question about PPF I have one account for self and one for my son.
    Weather i can claim income tax rebate on my ppf account after 15 years complete when i would extend my ppf account for 5 years block in period twice or thrice ( extension with further contribution)

    Please reply
    Sanjeet Kumar (

    1. Yes, you will be able to take tax benefit for that too

  9. Ravi says:

    Dear Manish,

    I have a question: Legally is there a limit to the number of properties a salaried person can own?


    I have a JEEVAN TARANGH policy . Quarterly premium-Rs.17538. Sum assured Rs.10,00,000. premium payment term 15 yrs. I have already paid Rs.4,55,988 in six and half years. Please suggest me whether I should surrender or make it a paid up policy immediately.

    1. I think you should apply for paid up

  11. Heena says:

    Hi Manish,

    I have 3 LIC Money Back Policies, 2 LIC Jeevan Anand Policies and 1 Endowment assurance policy with profit. Now i am planning to surrender few policies. So please can u suggest me which of these policies i can surrender without any loss.
    Details are :
    1. Money Back Policy – 3 lakhs sum assured
    DOC: Dec 2011
    Premium term: 20 years
    Yearly premium: Rs. 18,979
    Paid till now with no Gaps (4 Years)
    2. Money Back Policy – 3 lakhs sum assured
    DOC: Dec 2012
    Premium term: 20 years
    Yearly premium: Rs. 19,051
    Paid till now with no Gaps
    3. Money Back Policy – 2 lakhs sum assured
    DOC: Nov 2009
    Premium term: 20 years
    Yearly premium: Rs. 6386
    Paid till now with no Gaps
    4. Jeevan Anand Policy – 5 lakhs sum assured
    DOC: Nov 2009
    Premium term: 25 years
    Half Yearly premium: Rs. 10,349
    Paid till now with no Gaps
    6. Jeevan Anand Policy – 1 lakh sum assured
    DOC: July 2009
    Premium term: 15 years
    Half Yearly premium: Rs. 4,415
    Paid till now with no Gaps
    5. Endowment Assurance policy with profit- 1 lakh sum assured
    DOC: Dec 2008
    Premium term: 15 years
    Half Yearly premium: Rs. 3,452
    Paid till now with no Gaps

    Waiting for your reply, thanks in advance

    1. I think the loss will be there in all if you surrender

  12. atuljain04 says:

    I bought flat in Oct 204 and currectly it is under construction.
    I have taken home loan from SBI and opted for Pre EMI.
    I have a query that PRE EMI which i paid/paying to bank, will it be considered for tax redemption even if i didnot get possession of my flat?

    1. No , I dont think you can still claim it

  13. Chirag says:

    Hello sir,

    I am a 23 yr old fresher. Which LIC term policy i should buy?

    1. there is only one LIC term plan .

  14. dipakrgandhi says:

    I want get my newly built house insured for earthquake damage . My house is not as per the map that is sanctioned by municipal council. Will that create any problems in claims , if the situation arises.

    1. Hi Dipak

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  15. ksrihari says:

    I was taking jeevan tarang (T.NO.178)
    Sum assured: 2,50,000.00
    payment term:20
    I was start at my age 24.

    Explain about this plan d claim amount at the end of policy.

    1. Hi ksrihari

      The question asked by you is beyond our scope. Its suggested that you hire an expert on the issue and pay them for the advice.


  16. REENA DUTTA says:

    our grace period is over n revivbal period is also over and we were not bable to pay money due to financial and health problem now we want our money back what should i do

    1. Which policy is it ? If its a locked in policy, then you cant get it before the lock in period !

  17. Prasad palla says:

    Mr.Manish Chauhan

    I like Your explanation on Zurich futura. I am an NRI working in Bahrain. Recently one of agent from Zurich approached me and explained there plans.I am 38 years old . I want to take an insurance plan, which gives at least 2 crores to my family if anything happens to me.Here, my company provided health insurance only to me. So , i worried about my family. If any critical problem comes to them, I have to pay more money.So ,I am thinking of taking Zurich term policy with critical illiness cover , but premium is high. In india , if i take any term policy in india it covers only life . please suggest me. I want to take critical illness policy for my family ( spoise+2 children) and also term policy for myself which gives atleast 2 crores surrender value.

    1. Why are you taking it there.. Why not from India ? If you plan to stay as NRI for longer years, then only you should take it outside India

  18. anshul says:

    I am 35 years of age and willing to invest upto 10000 rs per month for the next 20 years .I am self employed and want to retire at the age of 55 years have two kids . sir please sugest how and where should i invest.

    Regards anshul

    1. Hi Anshul

      There are some good equity mutual funds you can start with .
      We can help you find out the right mutual funds to invest in . Please check out this page –

  19. Hemant says:

    Hi, Manish,

    I read your answer, but i am not understand properly, so request you to give me answer again.

    Q- I have Jeevan Tarang policy, which bought in Jan-2011 and till date total 04 premium already paid. P.A premium Rs.73930/- and 20 yrs policy term.
    (1)So if i am not paid any premium to lic, then how much amount i will get after 20 years.
    (2) Can i paid 1-2 premium and then surrender this policy?
    Which decision is more beneficiary for me?
    If i surrender today and get back money then is that money taxable?
    Please advice.

    1. 1. You will get 4*73930 after 20 yrs, if you choose to not pay any premium now .

      2. You can pay 2 more premiums and then surrender, you will get 50% of your paid premiums instantly !

      THe money will not be taxable in option 2


  20. GEORGE says:

    iam 32 years old NRI working in dubai for 6 years. I would like to take term policy SBI smart shield of 50 Lakh for 30 years. can I get the rider of Accelerated Critical Illness Benefit?(i am non smoker) Agent told me the CI rider is not available for NRI’s . is it correct? if yes which company gives CI rider for NRI’s

    1. George

      I think HDFC has it ! , I will email you

  21. sekhon says:

    Good day sir ,

    I have been advised by lic agent to go for jeevan tarang policy for my 2 year old daughter

    I am paying 50000 every year for 20 years

    policy is in the mane of my daughter ( under guardian my name )
    and he has advised me that my daughter will get 50000 every year for the rest of her life
    till she turns hundred

    sir please clarify is there a catch in this
    or is it ok

    thanks and regards

    1. There is no catch .. its a normal policy, just that I am not very excited with it . there are better options !

  22. sasanka patra says:

    My income monthly is 12000 plz tel me howmuch premium i should pay……what policy I should take, I am31 years old. … and howcalculate this amount.

    1. Policy for what ? Whats your goal ?

  23. Amit says:


    I had taken the so called Magic plan of LIC in 2006 with a annual premium of Rs 51K. After paying for 7 odd years now i realise that this is not a good plan to invest in and wants to surrender it. I plan to cover my family for Rs 1 Crore through a term plan which will be easy on my pocket also. Pls advise if i should surrender the LIC magic plan or not. What would be the surrender value , any guesses? Thanks.

    1. Amit

      You should catch the same agent to know your surrender value or create the online account on LIC website and you will be able to see your surrender value on LIC website !

  24. sanjeet kumar says:

    asking about investing in Mutual Funds through SIP

    Dear Manish in the article “How my 5 answers to the lady” You said that trust me mutual funds are mainly for those who do not understands and do not have time for market , to answer another question about investing in mutual fund through SIP you have said that either do that homework or do enough homework selecting the financial planner before investing in mutual funds .

    These are two contradictory statements.
    please replyin details since i also planning to start investing in mutual funds through SIP.

    1. Yea . But the point was that there is no technical knowledge required like it is required in STOCK Selection . All you have to be is follow some steps or be diligent enough to select a financial planner .

  25. ravi says:

    manish sir i want to know about best child plan in many companise…i give u rough idea to my needs…in future i want educational secruity in my child and in the college life he entered because of a proffessional coureses i want to need heavy money in future…so these type of expectations to fulfill a child plan pls tell me…
    my annual premium is around is Rs. 10000 to 15000 thousand….

    1. I would say better invest in SIP in mutual funds .

  26. Vijay says:

    i have bought future generali saral anand for last two years (30000rs per year). i want to surrender it after three years. how much amount i will get. or is it beneficial to be continue, plz reply me via mail.

      1. Vijay says:

        please tell me how much tentatively amount i will get?

  27. eldho george says:

    Hai Manish
    I am an NRE age 34 Working in dubai for 10 years with family. I heard a plan about Zurich Futura for life protection and investment, the main attraction i looks Critical Illness cover. Can u plase advice me wether this is a good policy compairing with insurance plans in india. And any problem/difficulty for claim from india in future?

    1. We have no idea about policies out side India

    2. Ajay says:

      Zurich is not an attractive product as it is being projected. You can take pure term covers with critical illnes rider and invest the surplus premiums yourself to grow your funds. Zurich is only a marketing gimmick.

      Let me give you a example:

      For a 41Year male, for 1crore life, 45lac CI, 60L ADB, 60L PDB say for a period of 29years (since india insurance cover up to 70years only and you may not require beyond that since you are suppose to have accumulated wealth by that time) cost of premium from zuric is 445USD per month for 10years (limited premium) and the fund cash surrender value at the end of 29th year @ 6% growth rate is 79614USD.

      If you take the same policies in India as term and CI covers, for the same person and same cover you have to pay approx. 8000- 9000 monthly lets equate the same as 133usd approx. So of the 445 you are paying for zurich pay 133 for the insurance and invest the remaining in any instrument that can give compounded return of 6% . Thus the remaining 312USD per month for 29years @ 6% return will give you a corpus of 283,209USD (against Zurich cash surrender value at 29th year of 79,614USD), a diiference of 203,595USD that is your clean gain.

      This gain is your corpus for your use. Lets say you take the 79614 out of the 203595USD for your other use. You can leave the remaining 123981USD to grow to use it against your CI or Life cover or leave it for your next generation.

      Never ever go for Zurich or any other ULIPs.

      Marketing is all about fooling you and selling the product to you.


      Ajay, Dubai

      1. Naveen Karn says:

        Hi Ajay. Thanks for your valuable input regarding comparison of Zurich Futura Vs Term plan plus investments.

        First let me correct you except life insurance ( death benefit option ) benefit that too up to certain extent i.e. 1 crore INR Sum Assured / Death Benefit , if NRI not visiting India and taking plan from outside of India , or More If NRI visiting India , is allowed for an NRI.Whereas Zurich FUTURA pre-dominantly being paid / continue in USD and coverage upto 300k USD for age upto 35 yrs male is non medical which equals almost 1.80 crore INR cover for NRIs and for other expats. 100k to 300k USD life cover is very common coverage criteria in FUTURA so for a healthy non smoker NRI male / female plan can be issued without medical or without any hassle that too with huge coverage for which we think 10 times in India as it runs in crores INR and numerous medicals get triggered and accordingly it fetches rate up factor afterwards because of huge cover increases normal premium rate as well in most cases. Thus in Life cover scenario , FUTURA prevails over any Indian life protection solution

        Apart from Life Insurance coverage , personal disability coverage is also restricted up to 50 lakhs INR limit for NRIs not visiting India and more for NRIs visiting India and taking plan in India.Whereas FUTURA gives accidental death coverage , dismemberment coverage ( partial and complete disability coverage ) , permanent total disability coverage as well.These coverage can go up to even 1 mn USD which is as good as 5 crore INR coverage , not allowed to NRIs normally.Even if allowed on special circumstances and with medicals , it goes for rate up issues which fetches higher premium than normal.

        Now Comes critical illness ( CI)coverage , CIs are most deniable benefits to maximum life insurance as well as general insurance companies for NRIs. Having said this , few indian companies have streamlined their operations and competing against world market to make sure they can provide CI benefit to NRIs.Till date more popular categories of CIs in india ranges between 6 nos to 19 . few offers 32 – 33 CIs. Whereas Zurich FUTURA offers 20 CIs out of which 18 continues upto age of 95 years and 2 continues up to age of 65 years of age. Even CI benefit can go upto 2 mn USD as well i.e. 10 crore INR or more, not allowed to NRIs on normal basis and if allowed , allowed with too many hassles like medicals etc etc.

        in FUTURA , Aeroplane death cover in built in the plan and equals death benefit cover as expat travels frequently by aeroplane.

        Moreover , because of flexibility in the plan you can increase or decrease your premium , can add or delete or rider benefit at later stage ,can increase or decrease you cover amount in life cover and other riders based on your life circumstances.This is what it differentiates it from term insurance plan and other indian life insurance or ULIP plan.Because it follows on the principal : insurance / investment plan should work as per you , you should not work as per your plan. So keeping in mind your current situation you can alter your plan features in FUTURA as well.

        though its a protection plan , but Partial withdrawal facility , Top Up facility , Increase or Decrease facility , potentiality to fetch returns on your contribution makes this plan as lucrative and accordingly it works as per your need.

        As far as investment and returns are concerned , its based on funds chosen and based on length of investment period.

        Warren Buffet advise

        On Thinking Independently :

        You’re neither right nor wrong because people agree with you. You’re right because your facts and your reasoning are right.

        On Investing :

        The first rule of investing is not to lose money. The second rule is not to forget the first rule.

        On Picking Stocks for the Long Term :

        You should invest in businesses so good that even a fool can run them, because someday a fool will.

        On Bonds

        Bonds should come with a warning label. Most currency-based investments, such as money market funds and mortgages, are among the most dangerous of assets. Their beta [price volatility] may be zero, but their risk is huge. The dollar has fallen 86 percent in value since 1965, when I took over Berkshire Hathaway. It takes $7 today to buy what $1 did at that time. For taxpaying investors like you and me, over the past 47 years, the continuous rolling [over] of U.S. Treasury bills has produced … no real income after taxes and inflation.

        Diversify your nest , dont keep your all eggs in one basket

        Based on above facts , if someone choose funds cautiously and switches funds at least once or twice in year 7-8% per year return can be made easily . for fund details you can visit concerned provider’s web page as well.

        In short Zurich FUTURA is not a cost for you and you will not repent on getting nothing at least what you will realize in term plan where there is no return if said event does not happen.Moreover flexibility features and other features make it lucrative which is absent in term plan. God forbid if you skip to make one month payment in term insurance plan , your plan will go for toss and coverage would be finished after grace period which is not there in plan like ZURICH FUTURA since after accrual of cash value , plan becomes capable to provide you coverage and other rider benefits from accumulated fund value pot.even if you fail to pay premium it continues your Can pay as low as 7 years premium and can finish your commitment to get covered up to 95 years of age , not only life but CI as well , same feature hardly available in term plans.

        Plan is portable and coverage is international.

        Even Zurich as a brand itself beats indian legendary provider LICI in terms of assets , profits and presence and experience in financial service market.check Wikipedia for the same.

        In conclusion, make a wise decision and ask around first before regretting for life.

        1. ajay says:

          Dear Naveen,

          If you require insurance, go for pure insurance product with Zurich not through the investment + insurance route. For investments, use funds. Your over all returns will be far superior than Zurich Futura. I have facts and figures on this subject, which even Zurich advisor agreed upon it.

          It is up to the investor to choose which way to proceed.

          Anyway, thanks for the counter arguements which can be again argued in many ways favoring zurich as well as against it.



          1. Ajay says:

            Dear Naveen and Other Zurich/Friends Provident Investors/supporter,

            Please view the below link, how it is bad for your life to invest in this products.


            Hope people save themselves from those selling these products.



            1. Your well wisher says:

              I am born in June 1972 and my wife in Sep1978 living in UAE, I was given a proposal for above policy for a regular monthly for limited 10year premium plan, with a premium of 318USD. The cover was for 100K USD for life, criitcal illness and aeroplane cover each fmonthly or both me and my wife.

              Upon review of the returns provided based on encashment value, I find the returns of this product a pathetic.

              It is not attractive, barring the insurance cover(s) that is being offered. The cost is very high to get this cover and the expenses are way too high.

              USD 318 on a monthly basis earning a 8% return per annum will return you 69000USD, Whereas in futura the cash value after 10years is 30618. So, 38500USD is what is being paid as insurance cost and cost of the product in 10Years.

              Assuming I leave the 69000USD for next 44years to earn 8% return per annum will return you more than 2 Million USD (yes more than 2Million), whereas in futura the final cash value will be 207,856USD.

              Do you have any explantion for above difference. so for the insurance cover we pay 1.8Million USD difference, in what way this product can be justified?

              If I am wrong anywhere please let me know. In my opinion, this is not a product worth considering for investment. However, it is being pushed on to many individuals in UAE just for sake of commissions to the agents without bothering about the interest of clients.

              Further if I calculate the annualized yeild on the investment, based on the encashment value of the investment, from 10th Year to 54th Year if 38180 ends up in 207856 it is a annualized yeild of 3.98% only. Thats ridiculous return for a period of 44years.

              The 1st 10Years return is pathetic and it is actually negative 38100 versus 30618.

              Now lets talk about insurance part, critical illness cover and term insurance and accidental death policy for me and my spouse with RAK care or Oman Insurance is not that very expensive. I can get it till the age of 65. The cost is also nominal. In futura it is up to 95years, but by the time you are 65, I am sure I could have built a sginificant corpus and 100,000USD wont be a big issue then and most of my goals should have been acheived by then.

              I dont understand how every agent walks in claim this product is a fantastic product to invest in. Is it just for insurance? Are you selling insurance or investment? or Is it just a marketing gimmicks for the sake of commissions.

              Please let me know your opinion.

            2. It was just a sales pitch and nothing else. Just consider reviewing your decision and now if you want to surrender it, better give it back !

  28. ashwani says:

    Hi Manish,

    I am 28 years old married man and working in MNC. I want to buy term insurance of 1 crore. I choosed Bajaj Alianz, ICICI, LIC. Please let me know which one is better. Since, solving ratio of Baja Alianz and LIC is better but premium is higher than ICICI policy.

    Thanks & Regards

  29. RAJESH says:



  30. Pritam says:

    Thanks a lot for helping us in financial planning.
    I read your LIC saral anand policy article in which u have given some figures and mentioned having investment in mutual funds and PPF and term, insurance having 50L rather investment 70k in LIC policy.But i read you article late.

    I have one question:-
    I purchased two policies :-
    First policy :-
    ICICI Pru life guaranteed saving insurance plan
    Premium amount :- 35000 /- anually
    Premium paying term :- 7 years
    Policy term :- 15 years
    Sum Assured :- 245000
    Purchased :- Dec 2011

    Second Policy :-
    Birla sun Life Vision Plan
    Premium amount :- 42000 /- annually
    Premium paying term :- 27 years
    Policy term :- Lifetime (2088)
    Sum Assured :- 1134000
    Purchased :- March 2012

    Currently i have loan of 12 Lakhs with tenure of 25 years having an EMI :- 10500.My salary is 22K per month.
    As u mentioned everyone should invest in Mutual fund and PPF as a long terms for high gain.
    Have 3 questions :-
    1. So please suggest me what should i do now ?
    shall i surrender this 2 policies or not ?
    Please suggest me what should i do now i am feeling i have wasted my money.
    I like you long term investment trick :- Mutual Fund + PPF + Term Insurance.

    2.If i need to purchase term insurance(should have best claim settlement ) which one should i buy ?

    3. In April i am thinking to buy policy to protect my family in term of medical operation and surgeries and health illness which one policy should i buy?

    Your opinion are most valuables to me.

    1. Please open a thread on our forum to discuss it –

  31. Garima says:

    Hi Manish
    Your articles are just too good.. This is the first place which has simplified the complex finance world for me. Thanks a ton and I really appreciate the efforts you are putting in.

    I have one question: I am 25 yr old and earning 30k/month. I have currently Jeevan saral plan (took it 3 yrs back)- premium is 24020/yr for 35 years and sum assured 5L. I read you article which said endowment plans must be avoided. Can you suggest if I should continue this plan or switch to sum term plan. If switch then which companies term plan you suggest will be good looking at today’s market

    1. Yes you should switch to term plan only for your insurance requirement and invest in other kind of investments products for your investment requirement !

  32. Priyansh D. says:

    Dear Manish,
    I am 42 years working in Pvt sector with the CTC of 8 Lacks. I have a home loan of 24 Lacks for 15 years (EMI is Rs26093) have the term plan of SA 90 lakh.
    Now I wish to invest Rs 5000 for 20 years. Where Do I invest ?

    1. Long term investments should be done in mutual funds only.

  33. Raghav Sharma says:

    Dear Sir,
    Your articles are very good.
    i just want to know that in equity nowdays which funds are good for long time investment.

    1. There is no like fund of the month in equities.. What are your requirments ?

  34. ishwar avhad says:

    i want to take religare term plan .what is ur suggestion

    1. go ahead . just make sure you give honest answers in the form !

  35. ishwar avhad says:

    hi iwnt to take trm plan of religare company of 30 lacs but ther claim settlement ratio is very low shold i take it? or any other plan plz suggest

    1. Go for Aviva or Kotak if you are not comfortable with Religare !

  36. Andy Hyd says:

    Hi Manish,

    I have jeevan tarag policy where in I am paying 78K per yr for 20 yrs term, have taken 5 years before. where as I hv 1 cr aviva term insurance as well along with PPF @ 40K per yr. After reading your article I am doubting that on my decision, that am I good to put 78k per annum in Jeevan tarang policy? Pls suggest. I am feeling may be I cud put this money elsewhere and as you mentioned above get better returns or increase my existing SIPs. should I exist from this and if yes then is it worth exiting now? Pls kindly suggest. Thanks for your time and views.


    1. I recommend you make this policy paid up now

  37. Utsav says:

    Hi Manish,

    Thank you for providing such financial planning awarenss to all!
    I m 27 Years old and planning to invest around 10-15K Per month in Mutual Funds for a period of 2 Years and wait for 30Years years to let it grow..I expect a retirement corpus of 6-8 Crores. Please suggest me some suitable MFs as per you. As i m scared when you say that we may need to switch MFs every 3-5yrs based on their performance.. as there is a MF cycle.. is it not possible that we can stick to the same set of MFs for all those 30Yrs and still get the expected return.. I already have a PPF A/c in which i put 1 lac every year..and LIC Market Plus-1 (Growth Fund) without any sum assured-Premium @ 20000 per year for 21 years….

    Best Regards,

    1. As I said , you cant get a MF for 30 yrs ! .. to start with some good options are

      1. HDFC Top 200
      2. DSPBR top 100
      3. Quantum Long term equity

  38. Sanjay says:

    Dear Manish,

    Is it advisable to take a term insurance for 30 years in one shot or take it for 10 years 3 times. What I have found out that total premium in second case in lower than first case for ICICI iCare plan.

    Am I missing something (Will premium increase in future for 10 year plans ?)

    Please advise.


    1. Take it for 30 yrs in one shot !

  39. Dear Manish

    Could you tell me the approximate amount that I will get after completion of 5 year term and how will the payment be done to me (i mean whether it will be one time payment or whether it will be breakup). I am lloking for an approximate maturity amount in figures.

    1. You can get exact amount from your policy documents, did you check that !

  40. Saty says:

    Dear Manish,

    I am planning to take Aegon Religare iTerm term insurance plan of Rs.30L cover for 30 years term.

    But as per the policy, once the policy is issued, I can not change the sum assured amount.

    As per my current requirements 30L cover is enough for me. but after 10-15 years, there is a possibility that i may need need more cover say Rs.75L. (At current date, I can not afford premium for the cover of Rs.75L).

    So my question is..How do I select term insurance?

    1. Should I go for Kotak e-preferred term plan with step up option where I can increase my sum assured amount even after policy is issued ? (But premium is higher as compare to Aegon Religare iTerm Plan)

    2. Should I buy Aegon Religare iTerm Plan for cover 30L for now and after 10-15 years buy another term plan of Rs. 40L?

    Thank you.

    1. The premium for 30 lacs and 75 lacs is not enough . Right ! .. just check it .

      1. Saty says:

        No Manish ..As current date 30 lacs term plan is OK but in future, this 30 lacs cover may become insufficient.

        so my question is

        Should I buy 30Lacs term insurance now (today) and in future buy another 45 lacs term plan and keep both term plans active. So that additional of these 2 plans can give me cover for 75 lacs ? (Two term plan)


        Should I buy only one term plan with step up option where I can increase my sum assured amount to 75 lacs in future ?(With only one term plan)

        1. The thing is 30 lacs and 50 lacs premium will not be very different . better buy a 50 lac cover then !

  41. Raj says:

    Hi Manish,

    I have a query.

    If I transfer money to my brother’s A/C using NEFT/RTGS, either as a gift or simply, will there be any tax implication to me if he gains out of the money being received by him?


    1. Only if its not gifted money . For now , its ok , but you need to explain things later if any issue is there!

  42. Sanjay says:

    Dear Manish,

    Please help me on this. I am planning to increase my life insurance coverage by 1 Cr with a term insurance plan (I already have some coverage with ULIP plans). My question is like this:

    Should I go with 1 company (1 Cr) or should I split this in 4 companies (25 lacs each) ?

    Please suggest.

    Thanks in advance.

    1. You can go with 1 company or maximum 2 , not 4 !

  43. Vijay says:

    Dear Manish,

    I am not sure if this is a right forum or not but I am still asking.

    My questions in: under what circumstance the grandchildren get exclusive rights on a property left by grandparents ?

    Please help me on this or direct me to a place where I can go for the answer.

      1. Vijay says:

        Thank you Manish. It was very useful.

  44. anurag bhagat says:

    i want to make rs.500000 in five years by investing rs.1000 per month upto 5 years.
    is it possible???

    1. Yes, it is possible, but you will have to invest in something which can generate 120% annual return . I dont think anything like that exists .

  45. Debahsih says:

    According to you term insurance ofwhich company is best for a 38 yrs old man???

    1. there is no distinction like that .. you can get a term plan from any company !

      1. Debahsih says:

        I mean to say, which company plan will be affordable as well as suitable?

        1. You can check with Aviva, Kotak , Bharti Axa .. there have affordable premiums

          1. Debahsih says:

            And what about the security, mean their claim settlement will be good or I may face problem?????

            1. Claim will be settled if you have provided every information correctly to them

  46. Raj says:

    Hi Manish,

    I have a query regarding Gift Tax.
    Suppose I have paid an X amount as a gift to my brother through a cheque. Now if he puts the money in his business and makes profit, will the profit be counted also as my income and liable to pay tax by me?


    1. No , it will be his income

  47. Sam says:

    Im interested in getting the Futura plan from Zurich. I compared it with policies from other companies and i found this to be pretty good. There is an encashment value plus list of critical illnesses that are covered. Wanted to get your advice and suggestion. Thank You.

    1. Which is this plan , can you post the url ?

        1. Sanu

          This is not from India.. What makes you buy this product ? Can you invest in indian financial products ?

          1. Rakesh says:

            can you suggest if this plan from ZURICH is good for NRIs.

            1. Rakesh

              We do not have much knowledge about plans outside india, but most of the concepts remain same .. if its a term plan, then go ahead and buy it !

            2. Rakesh says:


  48. Vishal Satija says:

    This is about EPF trasfer from old to new organisation.

    EPF department is unable to recover break in service statement from
    old organisation.
    also it does not reply clearly whether its employee job or EPF office job.
    What can be further steps to resolve.?

    Thanks a lot

      1. Vishal Satija says:

        Hi Manish,

        Thanks for quick reply.i got answers from RTI only
        it answers same way every time ,trying to avoid.
        i am thinking going to consumer court or CIC.

        Thanks & Regards

        1. I would suggest get in touch with and file a consumer complaint there !

  49. jeetu ojha says:

    Hello manish

    i couldnt post my query in question forum, facing login problem , could u help me out
    my mail id –>

    Thnks and regards
    jeetu ojha

    1. I have sent an email to you

  50. jeetuojha says:

    Hi manish .. after reading most of ur article ( still have to read some ) , i had decided to invest 1000rs in SIP in ELSS and i came to know Canara Robeco Eqt Tax Saver is best and suited for me ( as i done some ground work ) and by
    have 2 question.

    1) what is difference between growth and divided fund ?

    2) Canara Robeco Eqt Tax Saver growth or divided fund –> which is best ( almost answer hidden in 1st question which i asked )

    thnks , happy day take care 🙂

    Jeetu ojha

    1. jeetuojha says:


      forgot to mention time horizon .. i had planned to invest for 20 yrs .

      Thanks and regards
      jeetu ojha

      1. My comment still applies !

        1. jeetuojha says:

          Which comments 😕

          1. I got confused 🙂

            1. Check this article for difference between growth and dividend –

            2. Go for Growth !

  51. Khushboo says:

    Dear Manish,

    I and my husband are presently surrendering our life insurance policies which were basically ULIPs and would be getting some 70k out of it. we wanted to ask you where should we invest this money after we receive it.
    we already have investments in mutual funds through SIPs and invest every month in FD & a portion in stocks. we have a NCD too. Can you please suggest me on the break up and instruments we should invest in. Presently our stocks are not performing very well. we started investing last year and our overall portfolio is in 10% loss.

    Also, how is the IIFL NCD that is coming in the market? Is it worth investing some portion in that too?


    1. I think you need to keep it simple , you are over focusing on NCD’s and trying to over optimize it . Do you have a sufficient emergency fund ?


      1. Khushboo says:

        No we don’t have emergency fund.

        1. In that case better keep this money for emergency purpose as of now

          1. Khushboo says:

            ok. Thanks

  52. Deepak says:

    Hi Manish,
    First of all – thanks for an extremely educative & responsive website as well as QA Forum.
    A close family member is likely go abroad on a fixed contractual payment in USD for the next 2 years. My Question is more on the likely USD to INR valuation in the next 2 years (2008 – 1 US Dollar was around 40 Indian Rupees, 2009 – crossed 50, 2010 & 2011 – 45 (+) & 2012 (now) – hovering between 54-57). How do you, with your Global Strategic/Financial Overview; see 1 USD to INR over the next 2 years.

    1. Deepak

      This is too advanced discussion , I am not the right person , but our forum has many bright minds who can talk on this . please post a query there and I am sure someone will reply with good thoughts –

      1. Deepak says:

        Manish, I am an existing user (; but have a problem with the Password (coming invalid) […a necessity for posting a query on the Forum] – request help retracing Password – thanks

        1. Deepak says:

          Manish Ji, inspite of best efforts, still need ur kind help – not able to put my question in the Jagoinvestor forum –
          (a) as Existing User (, my Password gets rejected – as Invalid User Id or Password.
          (b) when I attempt the same as a new user – prompt comes -E-mail already exist or wrong E-mail, please select different one

          1. Deepak says:

            Thanks a ton Manish…I’m already on the Forum, with a very positive 1st comment on the post – rgds

  53. Amit says:

    Hi Manish,

    I am planning to buy a 3BHK flat worth 53 Lakhs. I am planning to get 35 Lakh Rs. loan.

    *I have 9 Lakh rs. in cash right now for downpayment.
    *My father (Retired) can “Gift” me 6 Lakh Rs.
    *Elder Unmarried Sister can give me loan of remaining 3 lakh rs.
    Total (35 + 9 + 6 + 3 = 53 Lakh).

    My question is :

    * Will there be any Gift Tax on my father’s Amount (6Lakh Rs) given to me? Any legal document needed for this?

    * What is the legal document needed to show I have borrowed 3Lakh from my sister as “Loan” for 5 years.


    1. Amit

      Just make a gift deed from your father to you ,, thats all .. but better make a loan document , so that you can pay the interest back to him (atleast you can show) and it will not be taxable as his income will be less than the taxable limit

      Make a loan agreement (see a lawyer) for 3 lacs and your father 6 lacs ,you will be able to claim deductions on that loan interest part .

  54. seema says:

    hello sir, if u take a loan froma bank and are unable to pay part of the loan because you have no income and the bank harasses you to pay up the remaining loan even after knowing your problem what is the procedure to go about it?Are bank staff permitted to go to the defaulters house at any time without their consent that also in groups and harass the defaulter.they threaten to humiliate the defaulter in public.does the RBi not have any protection for defaulters?please help

    1. Yes it has , there are rules, how much you can follow up and with what limitations , if you feel harassed, you can file a complaint against them

  55. r. sivakumar says:

    Dear Sir,

    I have one question.

    I had barowed 12 lacs Housing loan from SBI at the rate of 10.5% in the year 2010.
    By this year end I am planning to repay 5.0 lacs against my loan. Can I do so..
    Or I can invest this money in any other areas, and continue to pay EMI. I am getting 30,000 /- per anum IT rebate. and also I am getting 96000/- per anum from my property.

    please advise

    1. For how many years is the loan for ? If its small period, then better pay your loan and take the tax benefit !

  56. Ravi Datt says:

    Hi Manish

    I would like to know about EPF. I have an account and not done withdrawal or transfer for last 4 years. Now when I check status of my account it says ” your account is inactive”. I know as per EPF new regulations; if an account is idle for more than 3 years; it will not get interest after that. But account is inactive is totally different thing. Can you put some light over this and help what a person has to do or proceed in this case. I think a lot of people are there in same situation and a post on this will be very helpful to every one.

    1. Its inactive means DORMANT , you are not getting interest in that acccount , so its as good as putting cash somewhere and forgetting about it , over the years, it will loose its value !

      Just withdraw the money from EPF !

  57. Karan says:

    Hi Manish,
    I have NRI status and hold a NRE account in a nationalised bank. The interest rate for a NRE FD these days is upto 9.5% and that too tax free. Do you think its better to invest in these FD’s rather than any mutual fund? Your views please.

    1. for NRI’s , its a good deal over all , but note that it is good in debt category , for equity it has its own advantages

  58. Saty says:

    Hello Manish,
    I have some questions about the “Expense ratio” in mutual funds.
    1. If there is a huge portfolio turnover, is the turnover cost included in the expense ratio or that is separate from that?
    2. I read in several places that huge portfolio turnover increases the unnecessary expense compared to a “Buy and hold” strategy.
    But if the bottomline performance is good and returns are better (For example DSPBR Top 100),
    does it matter if the manager churns the portfolio aggressively, unlike funds like Franklin Bluechip?
    3. What will be the most preferable range of Portfolio turnover ratio (in order to avoid unnecessary expense)?

    1. Saty

      1. It is seperate

      2. Yes obviously

      3. Not sure on that !

  59. Prem says:

    Hi Manish,
    I’m Prem, of age 27 from Kolkata. I want to start a SIP for long term ( Say 10 yr).I already have a SIP in DSP-BR India TIGER – RP (G) since Jan 2010 which ( Net gain as of today is – -6.78% ).
    I also have invested a small lump sum amount in HDFC Top 200 Fund (G) ( Net gain as of today 14.22%) and Reliance Diver. Power – RP (G)since 2010 ( Net gain -27.23%%).
    Could you please suggest me one good MF to start the SIP for 10 Year? One more thing , I realized that DSP-BR India TIGER is not doing well and same is applicable to Reliance Power. Should I redeem/switch these funds. These MFs were my long term investment.
    Thanks alot in advance.

      1. Prem says:

        Thanks Manish for quick response, actually that is problem, from last few days I’m trying post in Form but for that I have to register first. Due to some technical issue, I’m not able to register. I dropped a mail for your help on registration. Once it will be done I’ll post my query there..thanks again..

        1. Sent your login/pass to your email

  60. Saty says:

    Hello Manish,
    I have one doubt..
    Suppose while investing in mutual fund, i have a long term goal, say 15-20 years.

    So after staying invested for some years, say 7-8 years, if i do profit booking, i may loose benfits of compounding. or if i dont do the same, it may happen that when I want money in 15-20 years time frame I may have to redeem in a phase where the markets can be down thus fetching me low returns.

    So my question is
    Shall i do profit booking in Mutual fund, when our mutual fund reaches to that profit %…OR stay invested for 15-20 years ?

    1. I would say better stay invested and from 12th year onwards, start transferring your money systematically (SWP) to some FD


  61. sam says:

    i want to invest monthly RS 20000 with yearly increase of 15% dont want to have too much risk my taxable income is just rs 50000 after all the deductions and come under 10% tax slab want to have good safe returns of around 10% which will be the best investment plan for me my age is 25 want to have around 2-3 crore money at time of 50. plz give me detailed plan wat to do and how to do it

    1. First calculate how much you should be investing using this calculator

  62. Anurag says:

    Manish Ji
    Iam Anurag 30 Year ,From Delhi a marketing Background In IT/telecom Company….Earlier i never use to read your articles but once i started reading Now Its my habit to read each of your articles as i have become fans Of your Articles. here is my Personal info Please suggest the right direction For my wealthy life after 10-15 year, For My Child Education Might be abroad after his Graduation+ Marriage Etc

    Monthly Salary 36000/PM-
    Other Incomes 6000/-PM average
    Rented accomodation 7000/-pm
    Dependent Wife & 1 Kid & Parents ( not scholl going now)
    Investment –
    2 Plots (1 In Delhi @ 13 lac & 1 In jaipur @ 4 lac) No bank Loan as on date
    1 LIC jeevan Mitra Tripple Cover Premium is 36000/- Annualy
    Mediclaim From national Insurance( 2 Lac Mine + 2 LAc Wife + 1 :Lac Kid) 6795 Premium Annualy

    Monthly saving around 15kk So Please Suggest Where i can invest For a Wealthy life after 10-15 year , iam planning to buy a home @ 23 lac Which is not loanable property as in delhi , So i am planning so sell out my delhi plot For DP Then Arranging balance from My+ Wife 4 lac saving + From relatives on loan basis + or a personal loan of 2.50 lac

    So Main Goals are-

    Child Education ,Child Marriage,good retirement life ….in One shot a WEALTHY LIFE…

    Here i need your Suggestion …Where i must invest..For Happy Retirement Life



    1. Anurag

      You should be asking open ended questions which are short and better use forum to ask questions for planning :

  63. Sumeet says:

    i want to invest monthly RS 15000 dont want to have too much risk
    my taxable income is just rs 50000 after all the deductions want to have good safe returns of around 10% which will be the best investment plan for me my age is 25

  64. sonal khanna says:

    1 lic magic plan retire n enjoy we gave premium to lic age of 60 years they return money age of 70 after that what ? principal n interst are over?

    1. Please rephrase your question in simple language and point wise

  65. JP says:

    Hi, Have a Question on Mortgage, we have a property owned by my Dad in bangalore and he has a debt of 33lacs now is that he is insisting on selling the house which we are objecting. Since he is the sole owner can he gift it to me and my wife? Based on the same can I mortgage and go for loan and pay his debts. Or should we go for a house loan and purchase for him. In both senarios what will be the interest rates and also which is the best option to mortgage or go for home loan. Your feedback will help in our decission.

    1. JP

      I think the best thing would be that you formally buy it from him , this way you will also make sure that it has come to you , your father will get the money and use it for whatever purpose he wants and you can also start claiming tax benefit on that !

  66. Rohit Srivatsava says:

    HI Manish ,
    I am based in Nigeria for the past 6 years and none of the companies are ready to provide Term Insuarnce to me which I know is very important . Could you please suggest how I can overcome this hurdle.

    1. It will be tough for you to get an online term plan , you need to take a offline term plan when you are in India next

      1. Rohit Srivatsava says:

        I have tried most off the offline plans too including Kotak, ICICI, Birla, Ageon….After trying these company and finding that nigeria is blacklisted and no one was ready to give I gave up as the IRDA must have issued a common list to all companies

        1. In that case .. sadly you will not be able to get it . One thing you can do with now is to get a local insurance (in nigeria) and then once you return back to India permanently , then take a term plan here .. I would suggest better accept the situation and move on

  67. Ali Darve says:

    Hi Manish,

    I am a registered reader of Jagoinvestor. Nowadays, I have gained much knowledge in terms of financial planning by reading your mails daily. So I am from ZERO to HERO now all because of Jagoinvestor, but still need a small help from you today.

    This is my first query and I really need help from Jagoinvestor. I have recently bought 2 SIPs (Rs. 2000/- each) and want to start one more of Rs. 1000/- at earliest. So please suggest me as per the below –

    1) HDFC Top 200 (started on 04/June/2012) -> Rs.2000/-
    2) IDFC Premier Equity Fund – Plan A Growth (started on 28/May/2012) -> Rs.2000/-
    3) ICICI Prudential Focused Bluechip Equity Fund or Tata Ethical Fund or DSP BlackRock Top 100 Equity Fund….or suggest me a good one. – > Rs. 1000/-

    Have I taken a right step by purchasing the above two (HDFC & IDFC) funds. Also suggest whether I need to add some more SIPs in my portfolio. If “YES”, what should be the funds?

    After reading your suggestions and advice especially ‘Start investing early’, I have also started investing a lot in Fixed Deposits, PPF account, Recurring Deposit, etc.

    Hey Bro, You are always of great help and guide us correctly for the various doubts. Thank you once again. Hats off !!


    1. Just add this third fund and no more .. ICICI one which you listed is a good one , go ahead

  68. VIKRAM AGRAWAL says:


    I have one query regarding mutual funds…bond funds.

    The underlying asset of any bond mutual funds are bonds of a company
    or of government of various maturities and it is also true that as
    interest rates ( or yield) increases the value of bond falls.
    When the value of bonds falls, the asset of the bond mutual funds and
    corresponding NAV of the mutual fund should also fall..( which holds
    that bonds in their portfolio). Is it true?

    Now, as we know that RBI has increased interest rates last year a
    number of times ..this means last year the prices of bonds should fall
    and NAV of bond funds should also fall. But, as I see from the
    historical data of all the bond funds..their NAV is increasing
    continously for last 5 years.? Why it is so? Why the NAV is not
    falling during the time when RBI was increasing interest rates?

    Kindly answer this query as this will help me to take a decision
    towards investing in bond mutual funds.

    1. Are those bonds prices increases in a straight line manner ? I dont think so , which one is that , can u name it !

      1. VIKRAM AGRAWAL says:

        Hi Manish,

        Yes, these NAVs are increasing in a straight line manner. Check for these bond funds and their graph for last 3 years…. ( a sample across all categories)…


  69. Utpal Dey says:

    Hi Manish,
    In 2009 I had purchased a Ulip Plan Market Plus I of LIC of Rs. 10,000/-
    Nowdays Its value are 9,500/-. I want to withdraw my money as early as possible and want to invest in equity mutual fund or fmc mutual fund.
    My tenture is 20 years
    Whether 2 equity mutual fund 5,000/- each
    or 1 equity mutual fund of Rs. 5,000/- & 1 fmcg mutual fund of Rs. 5,000/-
    I’m confused to take the decision.
    So your advice is most valuable for me.
    Utpal Dey

    1. Dont make it so complicated . If its just one time investment , then you can take 2 mutual funds , both can be equity funds

      1. utpal dey says:

        thank u for your reply,
        pls. suggest me some equity fund for 20 years tenture which is suitable for me.

  70. Parag Rodrigues says:

    Hi Manish,

    With reference to Term Insurance plan, need to know as to how we can identify the rejection ratio for claim made either to LIC / any other Private firms.

    Can we adopt to any Banks which provide Term Insurance without any hesitation?

    Appreciate your response.


    1. You cant get this info just for “term insurance” category . It will be for all kind of plans in one . you can get this at IRDA website

      1. Parag Rodrigues says:

        Thank you Manish for quick response. Have posted2 more queries & need your valuable inputs / advise.

      2. Parag Rodrigues says:

        Hi Manish,

        Could we opt for multiple Term insurance plan from different firms. If yes, do we have limit in terms of receiving final amount.

        If no, assist with reason for it.


        1. No , there is no limit has such . you can apply for as many companies you want .

          1. Parag Rodrigues says:

            In that case, if a person have 4 different Term plan undertaken from different backns ( consider : 1 Crore from every bank) then the family would be able to receive 4 Crores in all.

            Still quite doubtful as in this case, there would be high possibility for the family to yield high corpus in event of unfortunate mishap of the insured person.

            Is this acceptable & that too without levying any tax?

  71. Parag Rodrigues says:

    Hi Manish,

    Would also await recommended Mututal funds to be invested for span of 20 yrs from now. I believe, DSP would definitely be in your top list.

    Thanks once again.

    1. Yes DSPBR top 100 is a good option, but remember that you never choose a fund like this for 20 yrs , its not possible


      1. Parag Rodrigues says:

        Hi Manish,

        Sorry but couldn’t get your statement well ” Yes DSPBR top 100 is a good option, but remember that you never choose a fund like this for 20 yrs , its not possible”.

        Here , is the example of increasing my SIP per year for each mutual fund :-

        Monthly investment = Rs. 2000/-
        Yearly % increase in SIP = 10
        %Return Expected per year =10
        Total Duration = 15 yrs
        Final Corpus = Rs. 1367186

        If I expect above SIP calculation for 6 mutual funds, the final corpus to be yield would be = 1367186 * 6 —-> Rs. 8203116

        The expected return may vary every year but on long term duration the overall return under Equity / Balanced fund yields >= 12% on an average.

        Also, based on your comment in your book,

        Equity = Long Term
        Debt = Short Term..

        So, unable to understand why we cannot opt to continue SIP in either Equity / Balanced fund for 20 yrs.

        Your assistance would be helpful to ACHIEVE MY DEFINED GOALS.

        Thanks once again.

        1. Parag

          What I meant was that you cant choose a fund and say that I will keep invested in that smae fund for 20 yrs because in between the fund performance can change. So you keep on reviewing it every year or so and then decide if you want to stay invested or not !

  72. Parag Rodrigues says:

    Hi Manish,

    I had recently bought book written by you thruogh Flipkart. Am really thankful for the kind of explaination in simple, lucid language.

    Apart of your wonderful book, have recently went thruogh few of your articles & have got attracted towards Mutual fund for my long term goals. Here are few to describe :-

    1) Am 30 yrs old & look forward to build up a corpus of around 2 crores in next 25 yrs. Presently, have shortlisted following funds tostart with SIP process :-
    i) HDFC Balanced Fund
    ii) Quantum Long Term Equity fund.

    The SIP amount would be Rs.3,000/0 per fund & would gradually try to increase more mutual funds say (another 3 Mutual funds ) with same sip amount in forthcoming years.

    Apart I would also do investment in my PPF of Rs. 60,000/- per year for span of another 10 yrs.

    DO let me know if I would be able to bulit the required corpus by my age of 55 yrs.

    2) DO the NAV value is essential to select mutual fund (I mean higher NAV / LOWER NAV). The above 2 funds were shortlisted after checking their 5 year returns & decided to opt for.

    3) Can High returns be “By default” expected in case of any mutual funds (Diversified / bALANCED / Debt) we invest for prolonged period ( > 15 yrs)

    4) dO LET ME KNOW IF i need to increase my SIP EVERY YEAR to meet the requied corpus?
    Would wait for your valuable opininion before I initaite my investment by next month.

    Thank you.

    1. Parag

      Thanks for appreciating the book, would love to hear your review on flipkart as well :

      1. Those are very good funds .. go ahead

      2. NAV is not a parameter to look at

      3. No , Equity and balanced funds are “expected” to give higher return than a pure debt instrument, but debt funds even in a high term can give a FD kind of return .

      4. I suggest you to use our calculator to find this out :

      1. Parag Rodrigues says:

        Hi Manish,

        Shared review on Flipkart under header ” MUST READ FOR BEGINNER”

        For point (3) , what should be maximum investment tenure to achieve healthy corpus. FYI, I look forward to initiate SIP investment in following for next 15 yrs :-

        1) HDFC Balanced Fund
        2) TATA Balanced Fund
        3) Quantum Long Term Equity Fund
        4) HDFC TOP 200 OR HDFC Equity
        5) ICICI Prudential Focussed Bluechip Equity
        6) TATA Dividend Yield Fund

        All the above meant for Growth option only. Let me know your view for these funds & possible corpus that could be built with Increasing SIP approach of 10% in each fund.

        Thank you.

        1. Parag

          These are all good funds overall .. I would say limit it to just 3-4 maximum . 1,3,4,5 can be considered .

          Also you can check our calculators here : . This will help you in calculating the numbers !

          1. Parag Rodrigues says:

            Thank you Manish for your valuable advice.

            Would stick to recommended funds. However, as you said that these funds would need reviewing every year. Ther would be fall back at times but how we can evaluate as to when to remove fund from our portfolio.

            Eg : If the funds are reviewed after an year & we see fall back in 1-2 mutual funds (performance check for past 6 months) then they need to be removed & we should re-invest it some other performing fund.

            Need ot understnas as to how long we need to sustain a fund prior taking it out of our designed portfolio.

            Is there way to get more insight details if we opt for Basic Financial plan goals designed under JI website paid service.

          2. Parag Rodrigues says:

            Thank you Manish for your valuable advice.

            Would stick to recommended funds. However, as you said that these funds would need reviewing every year. Ther would be fall back at times but how we can evaluate as to when to remove fund from our portfolio.

            Eg : If the funds are reviewed after an year & we see fall back in 1-2 mutual funds (performance check for past 6 months) then they need to be removed & we should re-invest it some other performing fund.

            Need ot understnas as to how long we need to sustain a fund (wait for 2 yrs) prior taking it out of our designed portfolio.

            Is there way to get more insight details if we opt for Basic Financial plan goals designed under JI website paid service.

  73. Srinivasan says:

    Any idea as to how is the newly introduced Chartered Wealth Manager course

    1. Srinivasan

      I would say its a new course right now , so a lot of recognistion would not be there .. but if you are interested in the field of wealth management, it would benefit you in long run

  74. Srinivasan says:

    Hi Manish

    Thanks for your excellent service to improve the financial literacy and help others.

    Do you know which is the best software for financial planning and wealth management in India and their prices.


    1. Srinivasan

      I have seen some of them like one comes from ICRA and one is omnimax , I am not sure of their pricing at the moment . I cant comment on their quality, it has to be judged by you , I assume you are an Advisor and not an investor !

  75. Joseph Cherian says:

    Dear Manish,

    I would like to have your expert advise please. I have taken New Jeevan Shree (151) policy for Sum Assured 6 lakhs in 2002 and making quarterly premium payment of Rs 18,187.00. Its Term is 15 years, Last Payment to be made is September 2012; and Date of Maturity is December 2017. Please advise if I surrender immediately after Last Payment done (ie. Sep 12) what I will lose; or is it a best idea to wait until December 2017.

    Thank you in advance for your advise.

    1. Joseph

      The actual number you can get only from LIC , however generally we suggest to surrender any kind of traditional plans !

  76. Prasanna says:

    Hi Friends,
    I am new bee in STOCK Market & i am in Learning Phase. Recently i am hearing about GOLD Commodity Trading in TV’s which attracted me & I have the following Questions in Mind:

    1. GOLD Commodity Trading is the Best & Can expect Very less probability for LOSS – The following are the justifications they are giving:
    a. The chances of going UP Gold Prices is high in a week rather than going DOWN. (Ex. In a Week’s duration, if Prices fall 2 days, the prices will be UP for 5 Days, so we will never end up in loss)
    b. We needed a lot of technical knowledge & Experience for doing STOCK market Investment / Mutual Fund (Other than GOLD Commodity trading)
    c. We cant predict the Prices for any stock, but for GOLD, anyone can tell of sure that it will go UP always.

    2. We do not need to Pay entire amount for the Gold we are Purchasing
    – How much its true, If its true, how much amount (in %) we have to Pay
    – Also, It its true, then Will this is one of the reason for going GOLD Prices up?
    – Recent TV Ads about GOLD Saving Schemes by popular Jewellery shops are doing this method to their customers (Ex.

    3. We do not charge for the Training or Opening the account for You!
    – If they didn’t charge for Training / opening trading account, where will they get Profited / get their fees. (In TV they didn’t revealed this info)

    I would like to hear detailed answers by many of the experts here. Thanks in Advance.

  77. Joseph C says:

    Dear Manish,
    I request your advise regarding LIC Jeevan Tarang. After all premium payments made for 10 or 15 years, is it possible to get back immediately the Sum Assured with bonus. If yes, is it a good option.

    1. Joseph

      You can surrender the policy and get the surrender value, but i doubt how much will you get , how long was the policy for ?

      1. Joseph C says:

        The policy paying term is for 10 years and I already paid 6 installments (each installment approx 1 lac). Sum Assured is 10 lacs. If I pay all installments, after 10 years, can I get Sum Assured + bonus + 5.5%?


        1. Joseph

          You dont get SUM ASSURED in this policy on maturity , its only BONUS + Pension at 5.5% . Thats all

          1. Joseph Cherian says:

            Thank you Manish! Now it is clear that I won’t get Sum Assured even after all installments paid. So, please tell me, how can I come out from this. Sum Assured is 10 lac. Yearly premium is around one lac. Now I already paid 6 years, ie. 6 lakhs. Term is 10 years. Please advise me what you will do if you are in this situation.

            Thank you.

            1. Joseph

              Sadly its a plan just like all the other plans , so now you can either continue , surrender or make it paid up .

              You need to find out how much money are you going to get if you surrender the policy . My estimate is somewhere around 3-4 lacs . If you continue it for next 4 yrs , you will then start getting 55k per year after that !

  78. Mahesh says:


    I’m an NRI. I was approached by an RM with a policy from Zurich. In this I have to pay $12k per year for 10 years only as premium. Myself and my wife are covered for till 99 years for $250k each with a critical illness cover for $250k. The policy has a surrender value with first 2 years no value and every year there after with some value. For Eg 10th year got a surrender value of $102k, 20th year $156k, 30th year $216k, it increases by year. The policy name is Futura Joint Life Long. Is it a worth to invest in this policy?

    Having read your analysis I also got quote for pure basic term plan for $500k at $1200 for both of us for 25 years.

    I’ve one son of 11 years old and I’m at 40.

    Could you guide me which one to choose? Either the whole life or the term + investment?


    1. Mahesh

      These kind of plans are not worthy in our opinion . Just keep it simple and use term plan for insurance and other investment product for investments . like deposits or mutual funds .

      1. Neeta says:

        Dear Manish,
        I hv a Zurich Futura plan since 2007 and i beleive even LIC doesnt hv such a plan and anything close has a higher premium …would like to ask term insurance will cover critical illness ??..if not i personally think futura is better than term insurance becoz at the end of term insurance u dont get anything…here atleast i get back something…and for critical illness i get the same amount before dying…so that can be used for treatment…

        1. Neeta

          Its just a psychological thing that you get something here .. to get something back here you also pay more .. so whats the point ?

          1. Expat says:

            Hi Neeta

            You don’t have to worry about the decision you’ve taken. Even I have same plan, but understood well what I’ll get during and after the term and when I loose my life as well. This features as you rightly pointed even top plans doesn’t have; I personally researched. So, be rest assured as you’ll get back your money with multiple folds as it’s low risk market invested fund. To verify with person who got this product to you.

            Hi Mahesh

            No more explanation required I guess; it highly competent product as such.


            1. Nitin says:

              I just wanted to know one thing about Futura. If one takes a policy of $300K and suppose the surrender value at the time of death (assume at the age of 65) reaches $400 K then how much Insurance company will pay you? $300 K or $ 400K?

            2. DamodharMata says:


              On death of the insured, the insurance company will pay the sum assured or the surrender value, whichever is higher.


              Damodhar Mata

            3. Ajay says:

              Hi NEETA,

              I am sorry I disagree with Mahesh, Zurich futura or any other products such as metlife alico or other ULIPs products are not attractive products.

              Zurich Futura is not certainly an attractive product as it is being projected. You can take pure term covers with critical illnes rider and invest the surplus premiums yourself to grow your funds. Zurich is only a marketing gimmick.

              Let me give you a example:

              For a 41Year male, for 1crore life, 45lac CI, 60L ADB, 60L PDB say for a period of 29years (since india insurance cover up to 70years only and you may not require beyond that since you are suppose to have accumulated wealth by that time) cost of premium from zuric is 445USD per month for 10years (limited premium) and the fund cash surrender value at the end of 29th year @ 6% growth rate is 79614USD.

              If you take the same policies in India as term and CI covers, for the same person and same cover you have to pay approx. 8000- 9000 monthly lets equate the same as 133usd approx. So of the 445 you are paying for zurich pay 133 for the insurance and invest the remaining in any instrument that can give compounded return of 6% . Thus the remaining 312USD per month for 29years @ 6% return will give you a corpus of 283,209USD (against Zurich cash surrender value at 29th year of 79,614USD), a diiference of 203,595USD that is your clean gain.

              This gain is your corpus for your use. Lets say you take the 79614 out of the 203595USD for your other use. You can leave the remaining 123981USD to grow to use it against your CI or Life cover or leave it for your next generation.

              Never ever go for Zurich or any other ULIPs.

              Marketing is all about fooling you and selling the product to you.

              If you have made a mistake in buying it. Close your eyes and close the policy, after taking necessary pure protection covers. You will recover this money in the long run by other option.

              Dont go by your own confrimation bias that what you have bought is the best. Read and analyze the product before putting your hard earned money. Also, dont look for information that justify/confirm your decision.


              Ajay, Dubai

  79. Arunkumar A Vijayan says:

    Hi Manish,

    I have a small doubt. I had taken an LIC money back policy.
    Term 20 yrs. SA is Rs.5,00,000/-. Money back of Rs.1,00,000/- on 5th,10th and 15th year and remaining SA and bonus on 20th year.
    Payment is Rs.8069/- per quarter i.e. Rs.32276/- per year. I started paying in September 2010 and have made 6 or 7 quarterly payments i.e around Rs.50000/-.
    Recently I read in Jago Investor that money back and other policies are not good and ‘term plans’ are the good ones.

    However, my doubt is having made this much payment in my policy, what is the best course of action that I can take now.

    1. Should I surrender my policy?
    2. Should I make my policy paid-up?
    3. SHould i wait till 5th year to get Rs.1,00,000/- and then make policy surrender/paid-up?
    4. Should I continue with my policy as usual?

    Your advice will be apreciated..

    1. Arun

      You are at a very tough position right now .. the best option for you would be to make few more payments and get first money back of Rs 1,00,000 and then stop the policy .. Do a self analysis on what happens in different cases !

      1. Arunkumar says:

        Thank u very much manish…

  80. arshad says:

    hi manish arshad with u im 35 yrs old married so this info i forgot ro tell u also.

  81. arshad says:

    hi manish arshad with u i can invest 1 lac yearly and i want a insuarance plan i live in dubai plz suggest me i don have any plan.

  82. champ says:


    I want to buy a insurance policy from Future Generali
    plan : Saral Anand.

    please give full detail regarding this policy, is it that good idea to buy this policy?

    if not kindly suggest me better way that i can invest.


    1. If it is not a term plan , dont buy it !

  83. arshad says:

    hi i m arshad plz suggest me plan for 20 lac in 10, yrs i don have any plan.

    1. Arshad

      what are your requirements ? Risk ?

      1. arshad says:

        hi manish arshad with u i can invest 1 lac per year so plz suggest me a good plan and insurance also i don have any plan


        1. Arshad

          You should pick some good mutual funds .. dont go for any policy as such

  84. Ramanathan says:

    Can you pl. advise me about LIC’s Magic Plan Retire & Enjoy Plan? Age 39.

    1. Yes I can advice – “DONT TAKE”

  85. Pritpal Singh Sekhon says:

    Dear Sir,

    I have changed a job aboutn 6 months back & my PF dues are still pending. Please provide the process for withdrawl of PF from my old Company.


  86. ankit bansal says:

    i have taken lifestage rp from icici in march 2008 .till now i have paid 4 premium of 20000 each but still my fund value is 69000.and my next premium is due in march itself should i continue with this plan further.

    1. Ankit

      The fund value is not high because of bad performance of the fund + market and high costs . You can keep your premiums going .

  87. Kaushik says:

    Hi Manish,


    I had a unit linked pension policy with ICICI Prudential. After paying 5 annual premiums of INR 10,000/- each. On 6th year (2012) I surrendered the above policy and the surrendered value, that I received, was INR 1,00,000/-. Following which I have few queries if you could help.

    1) Do I need to pay income tax on the above surrender value?

    2) If yes then, should the tax under “Income from other sources” be paid on the whole of INR 1,00,000/- or bonus of INR 50,000/-?

    PS: I have used an amount of INR 10,000/- on the first year only as part of 80CCC IT deductions.

    1. Kaushik

      1. If you have made 5 payments , then no tax

      1. Kaushik says:

        Hi Manish,

        Thanks for the quick reply, as always!

        I though have a doubt here (Not that I am eager to pay tax where I need not:)!)

        Since it is a PENSION Policy (80CCC), Shouldn’t the whole amount which I get as surrender value be added as “Income from other sources”, (here in my case the whole of INR 1,00,000/-)? Though the Pension policy is unit linked but is treated differently from other unit linked products (like insurance etc.).

        I am not sure about this though and could be wrong in understanding! Thought of confirming with you!

        1. All the unit linked policy are tax free after 5th year surrender . Whether its ulip or pension plan


          1. Kaushik says:

            Thanks for the clarification!

  88. Gunjan says:

    Hi Manish
    6-7 years back I opened lots of bank accounts (credit card and all)which are not in use from last 4-5 years. but I have not closed them till yet. Is there any need to close them or i can left them as it is, assuming them dead.
    please advice

    1. Gunjan

      No , not at all … they are all live and credit cards will really haunt you if you didnt close them and the charges are getting accumulated in those .. Check your CIBIL score asap now and see what is the status !

      Close them all ..


  89. ishwar avhad says:

    sir i am 30years old ,working in govt .sector& my salry is 35000.i have child of 5 months old ,looking for his future investment .i am totally confused with lic plans &private company plan plz guide me

    1. Ishwar

      Just start a SIP in few good Mutual funds and take a good term plan for a high sum assured .. thats all you need to do


      1. ishwar avhad says:

        thanks manish,i have already started sip in hdfc200,birla sun life mid cap groth fund 1000 rs in each fund .i hav also tken dream life plan & its insurance is 24 lacs. and planning to take term plan of 50 is my portfolio.plz guide me if any thing is required to add.
        my friends r suggesting to take child plan of birla sun life ulif which has premium 50 thousand per year insurance is 10 lacs &lic’s jeevan tarang & jeevan chaya.i also think to take one of it because any thing goes wrong to me, child plan will be useful to my sun;s education,mutual fund will not work here plz reply me whether i am wrong or right.also suggest me the best company for term insurance&some good mutual fund

        1. Ishwar

          Dont do that mistake ,, you are thinking wrong directions ..

          those policies are structured very nicely , but from real benefits point of view they cost a lot .. go for term plan and mutual funds, with this combination security and growth of your money will happen


  90. Vikrant says:

    Hi Manish
    I have invested in Fidelity Advantage Tax Fund. As per current news, fidelity AMC is selling its India business, so what should be our move?
    Either to continue with investments in Fidelity Advantage Tax Fund or to stop the future investments in fidelty funds?

    1. Vikrant

      I m not sure about the exact step which will happen now , but you could be rest assured that your money is safe . In worst case , you will have to liquidate the units and take back the money, but wait for the communication from Fidility


  91. RITA says:

    Dear Manish Sir,
    Thank you very much for your suggestion. I want to share some problem with you that my husband is no more. I have 9 year son & 4 year daughter. I am working in a private firm & my salary is 15000.00 PM. I want to invest 5000.00 pm & I have 2 lac Rupees in my bank a/c. So it is requested to you please help me that where & which fund I invest for my children. i want invest 2 lac in FD, is it right decision.
    Plz help me sir,

    1. Rita

      You need security of money , but at the same time you need good growth of your money , I would suggest keep some money in FD , but also start some SIP (1-2k per month) in a good equity mutual fund from long term point of view.


  92. RITA says:

    Dear Manish Sir,

    Your every artical is very excellent, I am 34 year Now i want to take a term plan so please suggest me which company plan is best.

    Plz tell me for hdfc click2protect plan is sutaible for me or other.

    Thanks in advance

    1. Rita

      You have options like Aviva , Kotak , HDFC .. go for any one which you feel you are comfortable with

  93. Piyush says:

    Hi Manish

    Congrats on your efforts to educate the common people on financial matters. JI is a very informative site and helps people get better control over their financial health.

    I am writing to get some perspective from you on the medical insurance front. I have heard some people recommend New India Assurance. But I guess the reasons given (No care for shareholder) should equally hold true for all PSU insurance companies, right? Companies like United India & Oriental seem to be scoring well over New India in terms of following parameters:
    • Premium loading in case of claims for New India Assurance (upto 200%) is higher than United India Insurance (upto 200% but only if 3 or more claims filed in 2 years) and lowest for Oriental Insurance (maximum premium loading is 20%)
    • All three seem to be big PSU insurance companies.
    • Also once there is a loading on premium, New India Assurance never reduces the premium while Oriental reduces it for every no claim year.
    • For a 4 member family floater, both United India and Oriental Insurance work out almost 20%-30% cheaper than New India.
    • However, ET Wealth rates ‘service’ of New India as well as United India as 4-star while that of Oriental Insurance as 1-star.
    However, I do believe that most important parameter remains the claim settlement history of an insurance provider. I already have a employer provided health insurance and am taking this new policy only as a backup and am planning to continue with the same insurer for a long time. In light of this information, would you still recommend New India Assurance over others? Looking forward to know your view on this. Would be really grateful for your help.


    1. Wait, I will get some one from to answer this .


    2. Mahavir Chopra says:

      Hello Piyush,

      We have our reservations on any service ratings for PSU Insurance Companies.

      Here is why:

      The entire sales (thru Intermediaries) and service (thru TPAs and Intermediaries) of PSU Insurance Companies is outsourced. The service experience in case of PSU is therefore a function of the agent or TPA you have.

      Retail Customers do not have a choice to choose TPA, and hence your intermediary/adviser/broker is the linchpin of your experience with a PSU Insurance Company.

      There is no uniform rating that can be created for PSU insurers, unless there is a single TPA across the Insurance Company divisions.

      This is precisely the reason we have regularly impressed upon readers the importance of a good unbiased and experience insurance advisor.

      When you are buying a PSU product, you need to ensure you find the right advisor (unbiased, health claims experience – a must) with a good setup.

      Mahavir Chopra

  94. meera piyush prasad says:

    Hi Manish,

    What is your view on the Aviva Life Sheild Advantage which is like a term policy where your premiums are refunded at the end of the term. For 25 lacs for 30 yr term the premium is about 11425 for 35 yr male.

    Also my mother was sold the jeevan Adhar policy(for disabled people, as my sister suffered from mental retardation) by an agent some 15 years back and she was told that very good bonus will be added to her money and will be paid at maturity. Now it is going to mature next year and when she wnated to know how much will she get she found out that its a policy like a term policy, money is paid to the beneficiary after the death of the insured. She works with in UBI and had already planned well for her insurance, was this policy mis sold to her or is she misguided still.

    PLease advice,


    1. Meera

      Dont take that aviva plan , its return of premium term plan which does not make sense as per me , here is the reason :

      Coming to your Jeevan Adhar policy questions , sadly , it really does not have maturity benefits , so when policy matures , your sister will really not get anything back , THe real benefit of the policy is only one death , in which case again only 20% of SA + guaranteed additions (really good at 10%) + Bonus will be paid on death and rest 80% will be used as pension .

      Note that this plan motive is to secure the handicapped interest only and hence its designed like that . I dont want to comment on “misselling” part , because even a lot of LIC agent know know the features in detail , so in reality the agent might have thought that this policy had maturity benefit , but you sister never thought of putting 5 minutes of her time and confirming that it really has it or not . TRUST comes at a cost , i would say and she will have to pay for it . Overall the premiums must have been much lesser than what it is for other policies ..


  95. Sanghmitra says:

    who said ULIP is good in long-term :p

    1. Sanghmitra

      It can be … depends on how you use it ..

  96. Sanghmitra says:

    Hi Manish !

    I bought I-Pru Life Time Super in August 2006. Paying monthly Rs. 1500, totalling Rs. 99,000 at present. However my FV is the same as total premium paid even after 5.5 years :p
    I don’t want to continue the policy but atleast before surrender, return should be somewhat higher..
    Plz suggest..


    1. Sanghmitra

      Your policy has high admin charges in start and now you have already paid it .. better not to continue it


  97. Sanghmitra says:

    Is there any article/ info for FD vs Debt instruments in the blog?

    1. Nothing specific for comparision between FD and other debt instruments ..

      You can ask your question here


      1. Sanghmitra says:

        I had so far put money for ‘safe’ portfolio part in FDs…However was thinking of investing in debt market…Please let me know if its the right market time to go for it…also would like to know other investors point of view on same 🙂

        1. Sanghmitra

          I am not sure if you meant debt market or mutual funds in equity .. FD is already a debt product (safe) .. so do you want to try equity markets now ?


          1. Sanghmitra says:

            debt fund , i was referring to

            1. OK , in that case .. its a good time to get into debt funds as the interest rates are very high 🙂


  98. Roy says:

    Dear Manish,

    1. I have SBI unit plus III Life Saver policy- ULIP (Paying Term 30 years). I have paid the first two premiums of 1,00,000/- each. My next due date is nearing. Should I stay in this policy or surrender it and opt for Term Plan+MF SIP + PPF for long term. I know that I may loose certain amount while I surrender this policy, but I would like to build a corpus for my Daughter’s Higher Education & Marriage.

    2. Similarly I have Lic’s Jeevan Saral Policy with a premium of Rs.60000/- yearly. Three Premiums paid. Term 30 years & Assured amt Rs.18,50,000/- and Insurance of 12,50,000/-. Should I stay in this policy or surrender it and opt for Term Plan+MF SIP + PPF for long term. I would like to build a corpus for my Daughter’s Higher education & Marriage.

    Eagerly awaiting for your reply.
    Regards with seasons greetings,


    1. Roy

      1. What is the charges for the 3rd premium andn what are companies policy for surrender before 3 yrs ? Have a look at the policy documents . You can start term + MF , but first have a look at these points

      2. Surrender this one .. The amount which you saying as Assured , is that SA or someone said that you will get the SUM ASSURED ?


  99. m srinivasulu reddy says:

    sir, i am 34 years old, i have one kid and my annual income is 6 lacs per Annam. i am planning for saving or invest 1 lac per year for my kid future. please suggest me what to do with good planning.

    1. M Srinivasulu

      If you need a plan in just one para , then i would say take a term plan and do SIP’s in good mutual funds else go for proper comprehensive financial plan


      1. m srinivasulu reddy says:

        sir, i don’t need a plan in just one para. give me the full detail planning. i will give my full financial details. present my savings was 1.7lacs per year. in that 70000/- in ppf, 1 lacs in insurance policies( lic policies). my kid age was just 10 months. i am interested to save at least 1 lac per annum for my kid future. so, please give me the rightful suggestion and good comprehensive financial plan.

        1. Full comprehensive planning has a fees . You can have it here :

          Or you can ask your questions on our forum :

  100. Ashish says:

    Hi, There is one addition in my query. I want to invest a lumsum ammount of Rs 15L. I do not want to invest in Mutual Fund since I have already invested in MF. My plan is to start a PPF Account in State Bank Of India on my 4 year daughter’s name and invest Rs One Lakh per year for a term of 15 years in this PPF account and keep the balance ammount in Fixed Deposite. From this FD, each year I can invest Rs 1 L in PPF for 15 years. Is it advisable to do such kind of investment in PPF on my 4 yr daughter’s name and pay 1 L per yr thru FD route ? Pl advise.Thanks in advance

    1. Ashish

      You can do this , i dont see an issue , but for such a long term , you should not be heavy on debt instrument ,you will not be able to fight inflation , better have some mix of balanced funds and FD+PPF


  101. Ashish says:

    Hi, I want to invest a lumsum ammount of Rs 15L. I do not want to invest in Mutual Fund since I have already invested in MF. My plan is to start a PPF Account in State Bank Of India and invest Rs One Lakh per year for a term of 15 years in this PPF account and keep the balance ammount in Fixed Deposite. From this FD, each year I can invest Rs 1 L in PPF for 15 years. Is it advisable to do such kind of investment in PPF and pay thru FD route ? Pl advise.Thanks in advance.

  102. Stalin says:


    I’m paying 30k in Jeevan Anand policy of LIC. The period is 25 yrs. Is it good to continue or is it better to discontinue after 3yrs. I’m confused…
    Please suggest

    1. Stalin

      what is the confusion you have ? Did you do IRR analysis ?


  103. Hemant says:


    I am working in abroad. My age is 37yrs. I would like to have monthly pension Rs . 12000 at age of 60yrs (Retirement age). For this can you suggest which best LIC Pension policy for tenure 20 yrs

    1. Hemant

      Dont you think 12k at 60 yrs will very low ? It would be same as getting 1-2k today ! .


  104. Upasana says:

    Hi Manish,

    Its really very good to read your posts. They are quite an eye opener in most cases. I had taken Aviva’s Freedom Life plan in the year 2005 paying an yearly premium of 50K. This was one of the tax saving instruments as well. Now, I have realised that it was a real bad choice (though it quite late…I have invested approx 2L in the policy) and I want to withdraw this amount. Please suggest where should I put the lump sum which I withdraw from Aviva. for long term savings.
    Also, now I would also like to take a tax saving instrument (preferably SIP) through which I can save income tax in place of this policy.

    Thanks & Regards

    1. I have replied you on email


    2. Animesh Hazra says:

      Hi Upasana,

      I saw this thread on jaagoinvestor. If you dont mind, can you share the feedback that Manish shared with you on Aviva Freedom Life Advantage plan?


      1. Makarand says:

        Same question as Upasana and Animesh. I have FLG-growth plan – 25K per annum with 5Lac death insurance

        Paid for 6 years- the fund value is 147K; redemption value is 143K. Shall I redeem?

  105. Guruprasth G says:

    Hi Manish,

    I have seen the imaximize plan from Aegon Religare. can you please advice me on this. i am planning to take it for my father. he is 52. he dont have any protection or savings. this plan provides upto 72(i.e.,if i take for 20 years). At maturity it gives 6-10% returns. if i pay 25000 for 20 years. at the time of death they will be giving sum assured or fund value or 105% premium paid. whichever is higher. if maturity occurs i.e, age of 72 they will be giving sum assured or fund value or 105% premium paid. whichever is higher. as per their quote 6% returns wil be of around 6.37lakhs and 10% returns will be of around 10.37lakhs (note:my total investment is 5lakhs).

    Whether this is a good plan for my father it covers both.PLS advice.

    And they are giving two options death option1 and option2. i understood what is this options are. But suggest me which one i can go for. Thanks in advance

    Thanks & Regards
    Guruprasath G

  106. guruprasath says:

    Hi, it is a great and knowledge sharing web. thanks for this one.
    i am 22yrs. started earning 6 months. in my family totally 5 including 2 younger bro’s. not a wealthy family. My dad didnt take insurance or saving to any one. so i want to put money in insurance for my dad(51) and mom(45) as first thing. since they dont have life cover. i can pay yearly 20000 as premium.suggest me two good policies one from some good companies and another one from LIC.

    1. Guruprasath

      Are you looking for insurance as pure cover or investment vehicle ?

      1. Guruprasth G says:

        Insurance cover for my parents. but after reading the blog life cover if i do for 20 years for 2- 5 lakhs it is not worth. so i am asking you can i go for life cover or term insurance + any options. i can pay maximun premium of 20000 – 25000. i need to your guidelines.

        1. Guruprasth

          I can see you are confused betweem life cover and term insurahce, both are same , infact term insurnace is a way to take life cover , You first decide how much insurnace you want to buy , the premium would be high because of parents age .


  107. priya says:

    I just come across your articles today. Excellent articles. I read the review of jeevan tarang policy. I wanted to ask you about my husband’s policy. He is 35 yrs. old
    He took the jeevan tarang policy last year(2010) for 4lakh for 15 year tenure. premium per year is Rs.7115.
    we paid two year premiums. Is it good to hold it for the hold ? Can you suggest some good ones?

    1. Priya

      The first thing you need to ask is “Is 4 lacs good insurance cover” ? will it be enough for family incase of some unwanted situation ?

      Take a term plan and invest through mutual funds .


      1. priya says:

        Hi Manaish,
        Thanks for the reply. Is there a way to get out of this jeevan tarang policy now. If yes, how? If no, what can we do now?

      2. priya says:

        Hi Manish,
        Thanks for the reply.Sorry. I was wrong in the earlier qn. The quarterly premium was 7115. Is there a way to get out of this jeevan tarang policy now. If yes, how?
        If no, what can we do now?

        1. Priya

          You are in bad situation, you will be able to get uout of it only after 3 yrs, if you stop payment before 3 payment , you will get 0 .

          But the problem is , if you surrender it even after 3 yrs ,you will get peanuts :

  108. sonu kumar says:

    Hi Manish,

    I have SBI subh nivesh policy with whole life option and having two riders ( disability + death) in it.
    Terms = 5 years
    Premium = 30k pa
    Total sum assured = 1.16L
    In event of death/ permanent disability = 1.16 L

    If I pay for 5 years then total premium paid is 1.5L
    returns = 1.16L + bonus
    returns is less than the premium paid.

    Can you please suggest ?
    I have paid three quarters installment = 22.5 k (7.5k each )

    Should i go further or stop the policy? If i stop the policy then, is there any way to get the paid premiums back.

    Actually i was misguided by agent and facing problems now.

    1. Sonu

      Looks just like the regular policy from LIC . Bad one !

      More than the returns , I can see other concern here .. Your Premium is higher than the Sum Assured here per year , As per IRDA rules you cant claim tax deductions under sec 80C and also the maturity amount will NOT BE TAX FREE! . Because thats possible only when premiums are less than 20% .

      Even iits not the case , The tax deductions wont be available once DTC comes into affect from 2012 as its only allowed if premiums are less than 5% of SA

      Better close it and use your further premiums in some better place .


  109. Kalai says:

    Hi Manish,
    I have to invest Rs.25000/- for saving tax. Please suggest me the best place to invest this amount. I am planning to invest in PPF. I already have insurance for 1 lac from LIC(for which i am paying 8500/- per annum). My age is 26, unmarried and have my parents as dependants.

    1. Kalai

      the only thing which I can suggest for you at the moment is Term insuance , the biggest and only reason for it right now is that you are so severely underinsured . What will your parents do if you die tomm .. 1 lac is what they will get, do you have any idea what that means !

      Better cover your self with term insurance asap for appropriate amount. tax saving is a by product of this , but not that main factor to decide what you have to buy


  110. Sunil says:

    Generally it is recommended to save 6 months expense in a FD. If I keep it for 3 years then I understand then I need to pay tax. My question is how and where is this tax deducted? Is this deducted by the bank automatically at the time of maturity?

    Please advice.



    1. Sunil

      Tax on FD is there for every time frame, it has nothing to do with 6 months or 3 yrs . The Tax is to be paid by you when you pay taxes at the end of the year , Banks will cut TDS and pay to govt if your interest is more than 10k .


      1. Sunil says:

        Thanks Manish. So does that mean I need to pay the tax even if the interest paid is less than 10K (even if bank does not deduct it?)

        In that case what would be best saving instrument for covering my my 6 months expense?

        I was planning to save it against my father’s name as he is a senior citizen. Not sure if that is a good idea.



        1. Sunil

          Dont think so much about tax when it comes to emergency funds , its just for liquidity not for growth , so you should be more concerned about safety and availibility of the money for short term . There is no such thing which will save you tax in short run .

          Investing in father’s name does not save you , as per tax clubbing rules , the tax is to be paid by the person who actually pays for it , however there are some ways you can avoid paying the tax , by gifting the money etc to your father .


          1. Sunil says:

            Thanks a ton Manish. Its just that after coming across this site, I have starting thinking in these lines…

            No doubt it has been an eye opener for me and as they say better late than never!

            Accordingly, I am going to close 4 LIC policies this month when I go to my native place. I have also started Term insurance and Health insurance for my family and parents. I have started SIPs in HDFC top200 and UTI dividend yeild. Some more to follow shortly.

            The other doubt I have is that I am hoping to get an amount of say 3 lakhs when I close my LIC polices. I have an HDFC home loan with outstanding 12.5 Lakhs (10.75 % ROI). Does it make sense to part-pay the loan OR say invest in some of mutual funds?

            Is there any logical way to arrive at the deicision?



            1. Sunil

              The best logical way to arrive at the decision would be to do a cost analysis of both cases and see which one helps you financially . If you dont pre-pay your loan , do you have ability to make more returns than what you are paying to home loan company .

              Apart from financial reasons , you can also look at emotional reasons to reducing the debt and feeling less tension .


            2. Sunil says:

              Sorry to ask but this is a mathematical question which I am trying to find an answer:
              If I am falling under 20% bracket and say I am getting a benefit of 1,50,000 on House loan at 10.75%, Can I say I am effectively paying the home loan at 8.75%?

              Is my understanding correct?



            3. Sunil

              Yea .. if you deduct the tax expention part then yes your effective interest outgo would be less only , but only rely on that , what if tomm the tax exemptions are gone 🙂


  111. PAWAN BATRA says:


    1. Pawan

      I dont think so , You are the owner of policy and its you who has bough the policy and its your interest to keep it going , why should be a company responsibility to bug you for premium , its their corporate responsbility but not a compulsion , I am sure if you are interested in the policy , you will make sure you pay premium on time, if you are not, then reconsider your seriousness , What do you say ?

      Generally Companies send notice anyways to customers and also agents let you know . Even if its not happened , you cant legally do anything . At the end, its you who are responsible for your policy .


  112. Dbyash says:

    Dear Manish
    My quiries is regarding the Jeewan Tarang policy of LIC.
    I have a LIC Jeewan Tarang Policy for 15 yrs terms and qtry premium given Rs.6226/-and sum assured value is 350000/-. I am allready paid for its 4 yrs allmost. Now not able to pay premiums because of some problem and wants to stop and take my money back. So please tell me howmuch we get back my money.

    With Thanks & Regards

    1. Dbyash

      Unfortunately , you are in a very bad state, as the the policy , if 3 yrs premium has been paid and someone wants to stop the policy and get the money back , they will get around 30% of (total premiums paid excluding first year premium) , which means you will get just 30% of your 2nd + 3rd + 4th yrs premium ,which is nothing but around 22-25k .


      1. Dbyash says:

        Thanks Manish……for your reply. I also have other one policy with LIC : LIC’S CHILD CAREER PLAN WITH PROFITS,
        TABLE AND TERM 184 23 18 .
        SUM ASSURED RS. 500000/-
        YEALY PREMIUM RS.25658/-
        Premium given allready 3 yrs.
        I want to know your suggestion and advice over this child policy. Am I go with continue with this policy or not. Please give your valuable suggestion.

        Thanks & Regards

        1. Believe me , all the LIC policies are same with minor differences , you should check my review on jeevan tarang on my bl0g and take similar dicision on your policy


  113. Dbash says:

    Dear Manish.
    Hi its Dbyash………My question is regarding the Jeewan Tarang policy of LIC.
    I have a LIC Jeewan Tarang Policy for 15 yrs terms and qtry premium given Rs.6226/-and sum assured value is 350000/-. I am allready paid for its 4 yrs allmost. Now not able to pay premiums because of some problem and wants to stop and take my money back. So please tell me howmuch we get back my money.

  114. prabhu says:

    Hi Manish,

    Thanks…As for my Retirement plan,can i go for NPS/PPF/BOTH.

    I am really confused..i have a plan to take a SBI LIFE SHIELD Term Insurance.Is it Good one.I have to save 82k/annumn for my tax planning.What policies can i go for to save for my tax.Please help

    1. Prabhu

      It not a simple thing to tell . It will depend on lot of things like your risk appetite , your current status , your future requirement and your expectations .

      What kind of comment do you need on SBI shield ?


      1. prabhu says:

        Regarding SBI Sheild i want to know whether it is a good plan or not..

        My Risk appetite is high…My expectations will be a ggod monthly income after my retirement

        1. Prabhu

          SBI Sheild is a pure term plan from SBI , you dont get anything at maturity , its a pure life cover plan , You can go for it 🙂


  115. prabhu says:

    Hi manish.keep up the great work….i am newly married aged 28..earning 37k/month….is it wise to look for a pension pplan from now on….
    i have zeroed in on SBI unit plus 3 pension plan…is it a good one…
    i had earlier thought about NPS..but due to max 50% equity exposure and taxation on withdrawl i did not go for NPS…PLEASE SUGGEST A GOOD PENSION/ANY OTHER FUND OTHER THAN PPF/SIP’s for MF[which i already plan to have]…

    1. Prabhu

      As per the new Tax code (revised) , NPS is now totally tax free and at maturity , no tax will be there , see my latest article .

      Dont take pension plans . better invest in mutual funds


  116. kavita says:

    hi manish

    I am a 31 year old working lady. I was just hunting about ‘how to plan my investments and where to spend’ when coincidentaly I came across the site jago its really good and the way you answer the queries is also very informative and enlightening. I have a small question and would really appreciate your feedback. as of now I just have one policy which is an endowment policy of LIC with a small premium of 5000 per year. I have just paid one premium till now. after reading your articals I realized that its not a good option. anyways I earn 31000 per month. as I am unmarried yet, so no family responsibilities till now. I want to invest my money with purpose of increasing it. please suggest me the best way. how else should I plan my money? suggest some good equity funds. my own knowldge says HDFC 200, reliance growth and sbi blue chip are good ones. but would like your suggestions. I will also invest in PPF. but when it comes to insurance plan I am really confused as to go in LIC or some private ones. please help. also suggest me some artical giving information on how to handle SIP at the time when market is totally down.

    1. Kavita

      You should stop your policy as you have just paid 1 premium , you will benefit in long run .
      You should be investing in simple things like Balanced funds through SIP or ETF’s and take a decent cover with term insurance, the problem is not LIC, its endowment plans , you can take term plans with LIC if you wish

      SIP in down market should be continued , actually we do SIP to make sure we dont try to time the market and keep investing in all markets .


  117. Pijush Biswas says:

    I am 31 years old . One lic agent persues me to take Jeevan Tarang in the following way. SA 20 lac for 20 years premium of 96440/- per year. if i live upto 80 years the i get about 22 lacs bonus ( taking present bonus rate of LIC) at my 52 yrs age and 1,10000 per year for 29 years that also total 31,90,000 and after my death my family gets another 20 lacs.

    in term insurance for 25 lacs is 10,350/- if i place rest 86,090/- ( 96440 – 10,350 ) in ppf then after 15 yrs i get 20,52,701 /- (@70,000) after 15 yrs and another 4,43,515 after another 5 yrs ( by investing @70,000/- in another account when first account expires) . investing 15,000/- in the same way i get 4,39,865/- and 95,039/- So in ppf i get total 29,26,542/-

    is jeevan tarang truly better or i am getting fooled? Pls help. Regards

    1. Pijush

      I think PPF would work out better and why PPF, go for equity . look at Jeevan tarang analysis review post on archive


  118. ritesh anand says:

    sir, I am taking max tax rebate u/s 80c . my wife is also a assessee & I want to take fresh life insurance policy on my life whose premium will be paid by from my wife a/c & can she take tax rebate on that premium u/s 80c ,pl confirm the status in above respect,tks

    1. Ritesh

      Yeah . thats possible

  119. vazanth says:

    Hi Manish,
    Keep up the good work! After enlightment from reading ur posts on endowment policies, I have surrendered my Money Back and Jeevan Anand from LIC, (the SV was paltry, to say the least 🙁 ) and planning to invest the money saved (figuratively) in MF+PPF. Now for term assurance I have zeroed in on SBI Life Shield, Metlife Suraksha Plus, and ICICI pure protect. I’m 33 years old and 6 months into marriage… Kindly suggest the good one for a cover of 25 lakh rupees. Thanks in advance.

    1. vazanth

      you can use any one , choose one with lowest cost .


  120. Hardik Pandya says:

    Dear Mr. Manish,

    This is Hardik. I would realise after registering in jagoinvestor that I should ask u about my financial plan.

    1.) Now I m 24 years old. I m mechanical enginner. After all expenses, I m saving monthly 15000 rps. Here I m writing my saving for ur need into calculation. According to my annual income I m paying premium/annum 50,000 rps. in ICICI Prudential(Life stage pension plan) since last 2 years. If i will stop this plan after 3 years, I will get following benefits:-

    a.) Lifecycle based Portfolio Strategy: a unique and personalized strategy to create an ideal balance between equity and debt.
    b.) 100% allocation: of your money in the asset class of your choice.
    c.) Additional allocation of units: More than 100% allocation to funds on premium payment from the sixth policy year onwards.
    d.) Five pension options:provide you the flexibility to choose a pension plan as per your needs.
    e.) Tax-free commutation:up to one-third of the accumulated value on vesting (retirement) date.

    So, my question is that Shall I continue this plan after 3 years as per agreement and policy of this plan.? I know if I will continue after 3 yaers I will get more benefit but how.? I don’t know that. If your answer is yes, at what age I should stop this policy to get more benefits.

    2.) In my family, total 4 members including me. I m earning member only. I have medical insurance from my company. So, for my family I want to invest some amount in health insurance or mediclaim. So, which insurance policy or mediclaim will be better to cover whole family.? and why it is better.? FYI, Monthly I can pay 4000-5000 rps. as a premium in this case.

    3.) Now u know that how much amount I m saving monthly, but still I have other amount 10,000 rps. that I m getting every month from house which is given on rent. Don’t think that my saving is 10000 + 15000= 25ooo rps. Don’t mix up. I want to keep this 10000 rps. as hidden amount from my family and all. So, what excellent plan shall I do on this amount that can become very huge amount after medium or long term..?

    I m looking forward to get response soon.


    1. Hardik

      ULIPs are generally missold with this pitch that its a 3 yrs policy, but stopping it before 10 yrs will prove to be very costly . better stop if you dont know how to use ULIP’s

      Regarding health Insurance , its your personal need and you should compare at

      Regarding your 10k extra income , better invest in equity funds for long term .

      get a financial planner for detailed planning .


  121. Mahesh says:

    Please review the merrits and demerrits of the Monthly Income Plan from Metlife

    1. Mahesh

      Cant do it on demand right now . I will do it some time in future.


  122. Mahesh says:

    What is NPS (New Pension Scheme)? How & where to open it? How is their returns?



    1. There is a NPS article written , check that article , see archive page OR search .


  123. A kakkar says:


    I am looking for a policy for long term but unable to decide which one to go for. Could you please assist with the following terms:-

    My Age: 24 years
    Duration: 10 – 15 years
    Premium: 60,000Rs p.a

    Could you suggest which policy to go for and what returns will I get after maturity. Please let me know if you require any further information.

    1. A kakkar

      you should invest in Equity mutual funds through SIP of Rs 5,000 per month , see some funds :


  124. Narasimha Rao says:

    Hey Manish,

    I came to know about your site from one of my friend. It is really interesting. Its a one stop for all the financial queries.

    I would like to know if you know anything on the “Max Mangal Life insurace”, it is a endowment policy for which i have to pay for 6 years and the insurance is covered fo 12 years. I had to take this policy without knowing any details about this, as the Barclays finance company said this is mandatory for approving any loan :(, not sure how far it is correct. But as I was running out of time, i opted for it.

    I just want to know, is this a good one to keep or stop paying the premium for the Next years.

    Thank you in advance,

    1. Narshimha

      I dont think it has anything good in it . its a regular endowment plans and we hate them at this blog here 🙂 . So try to get out of it and utilize your money in better way , see if they have left any less pain ful exit door for you or not .

      I cant imagine this that they said its “mandatory” to buy this plan for loan approval . These can not be mandatory and if it is then make sure you never deal with this company again . its un ethical , complain to that company ombudsman and escalate to consumer court of not a faithful service


  125. Harpreet Singh Nahal says:

    Sir, I am 23 years old & earn just about 20000 per month. Which is the best place to invest for me. Should I invest in monthly SIP. Which SIP will be better for me?

    1. Harpreet

      thanks for your first comment on this blog . There is nothing like best place to invest, its all about your risk appetite and time frame and return expectations . You can look at for long term investments . Dont take ULIP’s please .

  126. sourabh gupta says:

    hi manish,
    I wanted to know how would “mahindra satyam” stock perform in 2010.
    Is this a right time to go for it.

    1. Sourabh

      I am not sure if I can help on that . I am not following stocks there days . But to answer your question , the best thing would be that you list out the reasons on why you feel it can perform and then we can brainstorm on that. just getting a yes or no will be fruit less . atleast for long term learning .


  127. mr Khushal k m says:

    dear manish ,
    u have a very broad analysis for the jeevan tarang plan wherein by facts and figures
    u do convince everyone not to buy an endowment cum whole life plan but i would like to point out a few things
    i am 28 yrs old i have a daughter who is 2.5 yrs old
    i have received an illustration from a lic agent as follows
    i shall opt for a policy in my childs name at age 2
    by opting fort a 10 lac cover premium payble is coming to rs 48ooo/-
    now comes the best part
    *****the policy has even a premium waiver rider wherein if i die the policy shall continue for the entire period of 20 yrs and premeium shall be paid by lic
    so if i do survive my kid shall receive a lumpsum bonus amount of rs 960000/-back in the 21st year of premium where my babys age would be 23 years
    and she shall receive 55000/- i.e 5.5% annuity till death lets assume if my daughter does survive up to age 75 she shall receive a sum of rs 55000 for 50 yrs ie rs 27,50,000/-
    and on death she shall receive rs 10,00,000/-
    with all the sums guarnteed by the lic
    dont u still feel its a better child plan than compared to any thing offerd by any company
    in market
    kindly be feel to respond on same
    regrds khushal

    1. mr Khushal

      THe point is again the same . The premium waiver option is not free , everything comes with a cost and that cost is factored in your premium . I would again like to say the same thing , that you can create a better thing yourself . You can take term insurance upto a amount that incase you die , a lumpsum amount of 10 lacs can be used at the time of death and some part can be invested for long term , so that when the daughter is age 23 , she recieves a lumpsum amount again . I still dont see LIC JT performing better than MF + Term combo .

      Yes , all this takes effort , but if one wants a single policy to perform everything , then it comes with a cost and JT will offer that happily because thats how they make money .

      What do you think ?


  128. Nihar Ranjan Pal says:

    I am 53 yrs old Chem Engg working in the oil industry 4 the last 30 yrs (the last 8 yrs in Kuwait). This yr I plan 2 quit and go home. My asset allocation is at present 63% debt & 37% equity. I hv pure equity, balanced MFs,Bank FD’s, PPF, PO-MIS & LIC Annuity. I am now looking for some schemes that give me regular monthly income (hv exhausted the MIS limit). What is yr opinion on MIP’s of MF’s? Where else can I park som funds?
    Thanks & Warm regrds

    1. Nihar

      your asset allocation seems perfect considering your age . Why dont you think about Senior citizen saving schemes also . you can use that to get some good monthly income with good return . You can also opt for some MIP from mutual funds , just that the returns from them will be volatile depending on equity allocation . So better go for something which is more stable over long term and have less standard deviation in returns . See for details and comparision .

      What is your age ? You dont have anything in real estate as investment ? because a good rental income can also be alternate to pension .


      1. Prasanna says:

        Dear Manish,

        Is there any other option besides pension plans? One of my friend who is 44 and is looking forward to generate a fixed monthly income immediately from his accumulated savings. I know its not the best of ideas, but he wants to retire/ get rid of the job very soon. I was checking, but did not find anything of the sort here. Is there any option where he can look forward for around 8% fixed monthly returns. To negate the effect of market fluctuations, he would be happy to stay away from equity.

        1. Prasanna

          He can look at Monthly income plans , These are debt funds which also have a small equity exposure . it will suit him.

          Or better invest in Some stocks which have good dividend history


  129. PAWAN BATRA says:


  130. PAWAN BATRA says:


    1. manish says:


      Why do you want to buy Endowment polocies.. do you know the return they provide in long run in % terms , you should use equity for your long term goals . Endowment policies is not the right approach .

      to make 1 crore in by the time you are 60 yrs (in 17 yrs) you have to invest around 15,000 per month assuming 12% return. You might have to invest 30,000 per month if you go with Endowment policies or anything which gives around 6% return .


      1. PAWAN BATRA says:


        1. manish says:


          Dont mix insurance and investment .. Take pure term cover through Term policy . You can choose out the companies yourself. . mix 2 in one .


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