This month is special. This Month is special because it is dedicated to 100% pure action. We would love to connect you to something that can make a real difference in your financial life. If you want no one to sell you or force you for anything anymore and just encourage you into pure action, if you want to be a part of personal finance action oriented community than you can choose to be a part of Jagoinvestor “Action Month”. More than 50,000+ people have been extended an invitation to be a part of this action movement. You will have panel of experts helping you to get your basics in place. You will have FUN, a lot of Action and PRIZES to win.
Action Month is exactly what it sounds like – a month dedicated for taking actions and getting stuff done! The next 30 days can actually transform your financial life. We thought our job is to write articles and provide you with the information you need when it comes to personal finance. A few weeks back we thought of taking a leap at Jagoinvestor. We created something called “Action Month”. This action month does not belong to Jagoinvestor it belongs to the person who participates in it.
We really want you to dedicate your next 30 days as “just do it” month. We are clear either you or many people around you (friends and family) are waiting for something that can get them in action and “action month: is for being in 100% pure action.
Each one of you must be having one or more tasks which are still pending and you must be thinking “next month for sure” and you know, that “next month” never comes. Action month is for you to challenge your own casualness.
Action Month = Community Support Structure to be in action
If you have been a procrastinator in getting the basics in place, I can assure you, this can really be a big moment for you when you are going to secure your families, going to make that first start towards your retirement , children goals or any upcoming goal in life . This next 30 days can prove those moments when you will clean your financial life clutter and throw all those junk policies which are doing nothing for you. Action month is straight from the heart, it is straight from our commitment for doing something amazing. Make sure you take 100% benefit from it and also add more and more people to take benefit from ACTION month. The success of Action month is in your hands.
Action Gift Kit
In order to make sure your actions are smooth and faster, we have created an Action Gift kit, which will contain many things that will be useful for you to take actions. This will be given to those people who register for action month. This Action Kit contains:
We also went ahead and found out supporters who would like to give away some cool prizes to you all if you took actions. Companies like Moneysights, Fundsindia, Mprofit, Investplus and Medimanage have been associated with this blog and they have also committed to make this a big event by pulling in their communities and share about this action month. We have made a panel of experts in each area who will also help you incase you are stuck at any point and need support in answering some queries. The Panel members include
The total prizes worth which are going to be distributed in this action month is more than Rs 1.5 lac and you will get something or the other if you take actions. There is no selling here… all we need is your commitment is improving and doing something for yourself. The details for prizes are at the end of the article and each and we have some assured give away for people who register first and action actions too.
How will it Action Month work ?
Now did you ask the question that “What do I need to do?” We identified 5 top most pending tasks each one of you will have and this action month is dedicate for those tasks. Those are
How to register for Action Month ?
All you to do to register and join the action month is fill up the form below. Once you fill up the form, you will be registered and you will get a mail from me which will have an action month kit. I will make a login and password for you on our Forum where you can ask any questions or doubts if you are stuck. We have made an 8 member panel that will help you in answering your queries.
Make sure you complete your actions in next 30 days from today. In between we will make sure you keep in contact with you and track your progress and at the end of the month, we will choose the winners for action month in different categories and send them their prizes. We will also track the progress of action month and display some charts which will measure how things are moving.
Prizes and Sponsorers
There are many prizes which you can win by participating in this action month and taking actions . Some of the cool prizes are mentioned below . Moneysights has extended their sponsorship and provided 100 free life time accounts
Moneysights.com is launching its Online Investment Services in 1st week of September. This will enable its users to do online transactions in Mutual Fund Schemes. Sticking to its promise of “making investing simple”, moneysights would simplify the process by having – a 1-time registration valid for all Mutual Fund Companies, Unique SIP Set-up that would allow for Starting/ Pausing/ Stopping SIPs in any Scheme, anytime. PLUS, there will be dedicated document executives who will help users to take care of documentation by personally visiting your home/office. Also, there will be NO transaction charges!. moneysights will be levying a Flat Annual Account Servicing Fee of Rs. 499 including taxes. However, exclusively for 100 JagoInvestor Action Month participants, moneysights is giving it away FREE for Lifetime!!!”
Share about this Action month with more people
One of the biggest thing you can do is spread the word about this event . I can assure you that your friends or whoever joins this event will remember you for some thing good , It would be a noble cause to do something good for some one else financial life . So just share it with maximum number of people through the sharing links below . Also you stand to win a Financial Coaching program if you help in bring more and more people to this event .
ACTION MONTH HAS ENDED
{ 500 comments… read them below or add one }
Good initiative Manish…. Incentivizing people to take action!!! Hope many people will participate and derive benefits from it.
Regards
Jagadees
Thanks jagadees for your encouragement. Many a waiting to be in action, do share with as many people you can so that we keep doign such online action events
nandish
Excellent initiative Manish.
I wish you and Nandish success in this initiative.
I am sure Jagoinvestor team and supporters will come out with flying colors from this action oriented month.
I am sure of benefits for all persons who signup for this
(i’ve already completed the signup process)
JP,
Thanks for your kind words.It really means a lot to us. Do share what actions you took and how many people you helped in taking actions
nandish
Wonderful target oriented project Manish. I was curious for last 2 months about this. Already started some action in MF with FundsIndia when you are taking opinion pool for this event. Will do pending actions this month and spread your words to friends.
This is amazing. Happy to see you in massive action in your finances. People at fundsindia and moneysights are available as panel if you have any questions. Use the comments section to ask your questions
Hi Manish,
A very nice initiative from JagoInvestor indeed.
Action itself is a plus point and you are topping it up with nice goodies.
Way to go Manish…
Best Rgds,
Harsha.
Thanks harsha for your encouragement. If you promise to be in action and encourage others to be in action we will come up with many such events in future (online and offline)
Hi Manish,
Very good initiative. Registered myself, keeping my fingers cross.
Also would buy a term plan which has been long overdue and organize my finances.
Rakesh
Great Rakesh. Earning money is important but managing money is equally important for creating a balance in our financial life. We are happy to see you are taking actions in your finances and have made a commitment to be in action
Rakesh
Where is your progress in buying the term plan ? Do you need any support ?
Manish
No progress. Yes, actually I am not able to decide which one to opt for. Tried Aviva & kotak too but did not get any positive reply.
Rakesh
Rakesh
Did you try ICICI Pru and Metlife ?
Manish
Manish,
I had taken ICICIpru but since i did not get any response from them canceled it. Did not look at metlife as their premiums were higher when compared to Kotak and Aviva.
Rakesh
Rakesh
How much is the difference in premium ? All these things stop us from taking actions , just move on , pay 1k more , but get it done ..
Manish
Manish / Nandish,
Aviva, Kotak or Metlife, please rank them on your preferences. Aviva has the lowest premium, about 1k less than the other two. Bye the way, I have already done one of my tasks for the Action Month. Started new SIP’s, hopefully will be able to select a good term plan.
Rakesh.
Rakesh
There is no preference like that . Take any ..but as my personal preference i will suggest Kotak .
Manish
Yes! It rocks and talks the language for a layman or anyone with low sense of commerce (no offense to any individual). Understanding finance at jagoinvestor.com wil be a great help for the coming. Keep rocking.
Thanks john for appreciating action month. The language of action is the simplest. It just says to move from point A to point B. Keep learning, stay in action and help people around you to be in action.
Nandish & Manish,
I am unable to open the action kit. tried one of the link you sent to another member here. Please help. How to go about?
Rgds
John
John
If you registered , you will get a mail giving you the link to download it . Whats the status ?
Manish
I got the link on my eamil – it took me to some .rar. i tried everyhting that my head can understand. but not successful. I’m stuck, can this be made any easier.
John
Download it from http://img.jagoinvestor.com/files/Action-Month-Kit.xls
Thanks Manish, got the link. Trying to beat time.Will make it. Gotta a lot of queries. I hope I can make it.
Ok In short my queries are such, If you want details then thats gonna be digging the grave. But then that is my grave, no complaints. 1) Me & my Wife have 2 policies with Bajaj family gain (ulip) 15 yrs plan, 12k/yr, finished 3 yrs, not paid for last 2 yrs, A) what do i lose or gain if I surrender now? Is it advisable to continue, (I had done it for TAX purpose. Not needed for tax now and being ULIP, it does not look rosy to me. 2) Same way I have Kotak ULIP, same story. 3) I have some MF’s SBI tax gain, blue chip, templeton, Reliance tax & others, Icici prudential, reliance natural resources, UTI infra advantage fund, Lotus India Religare, DSPML India Tiger, Tata Indo Global Infra, Sundaram BNP energy, AIG, ING latin America, You see MY GREED AND GREEN HORN has landed me into no gains. 4) I also have stocks :Essar Oil, GMR Infra
IDBI, Neyvelli lignite, NTPC, Power Grid, Reliance Power Limited, RNRL, Rel. Petro, Siemens, Adani Power, NHPC, Coal India, NTPC, Power India, Anus labs, Cals refineries, GMR Infra, Sesa Goa, Welspun Gujrat, Suzlon energy. Ok all said and done, I am surely expecting proftable replies from jago. Hope to win some good advise here. Oh I forgot, what about these Gold Etf’s Gold… guide me on this to. Many more queries to come .
John
As you have complete the 5 yrs in ULIP , you can now take your money back and get yourself free from it .
The main reason you should get out of it is to simply fy your financial life , Returns will also come into picture , but leave that for now , just return it and take your money .
I am assuming that you are not handling it properly and using switching facility .
Prune your MF;s and stocks . Do you really understnad how stocks analysis is done and hwo to choose them ?
Manish
Manish,
I did emphasise GREED and GREEN HORN took the better of me.
Well, I am not good at picking stocks, I just went by advise given to me by tom dick & harry. Now I am alert, infact not buying any for almost 2 yrs now.
You did not guide me anything about Gold ETF’s.
Did not tell me advantage – disadvantage on surrendering ULIP’s.
How do I revamp myself for better financial gain.
John
What info you need on Gold ETF’s ? You shoudl limit your exposure to 5-10% only .
Surrendering ULIP is advisable if you are not able to use switching facility in ULIP and its a complex thing for you to handle . Thats the only advantage .
Manish
I tried this :
http://img.jagoinvestor.com/files/Action-Month-Kit.xlsx
Nah .. not that
Hey Manish,
Glad to see this go live. We at moneysights are proud to be associated with this initiative. Hope to see JagoInvestor readers as well more individuals taking their first steps to financial independence.
On behalf of moneysights team,
–
Santosh Navlani | moneysights.com
Thanks santosh for being a partner with us in action month. We appreciate your stand and commitment for investors. Your vision for indian investors is amazing and it will surely take moneysights to new heights.
Hi Manish
I am not able to download the Action Kit. Please provide the alternate link / option.
Thanks and Regards
Nagarajan Santhan
Nagrajan here is the link that you can visit
http://img.jagoinvestor.com/files/Action-Month-Kit.xlsx
If this does not work mail to me on [email protected] and we shall send you again.
Hi Nandish,
Link working fine. Thanks.
Regards
Nagarajan S
xcited to improve my financial life by taking part in action-month at jagoinvestor.com You can also
join in and win lots of prizes – http://www.jagoinvestor.com/2011/08/action-month.html
hey vibhav,
we are happy to see your excitement. Keep up the excitement till you finish each task that you want to complete. and even after that as personal finance is an ongoing journey.
Hi Manish,
Great initiative.. Yes incentive based action is always so much more fun!!.. The thing is, I thought action month started from August 1st itself and I already have applied for a health insurance and pure term insurance.. paperwork is also almost done and now I just need to receive the documents.. I also started SIPs in the month of May this year.. Filed my first ever taxes this year, that too online.. I have made a rough goal sheet for myself too.. So you see, I have already taken action.. of course there is still a lot of things I can still need to do..
Your blog has really transformed my financial thinking.. I wont say it has changed my life yet, because I am just at the very beginning of my career.. But I am sure that I am more confident in my decisions..
So thank you!.. am participating!
Sunnydoc
Good that you got in action month much before it started. The moment you get in action your action month starts. Action has some magic in it. In my experience worry chills the body. Action warms the body into fire.
Keep learning and keep applying new thinking and dimensions to your financial life. Many miss the bus by starting late, celebrate as you are starting early.
All the best
Thanks Nandish,
I wanted to post some query on the forum but there is no category ‘Action Month’ so posting it here..
A little bit about myself first.. I am a 30 year old unmarried doctor working for a salary with no liabilities or assets..
The amount of money I require to invest monthly to attain my future goals are really alarming me.. I’m feeling really worried..
At the moment I am earning about 40k per month out of which I invest 12.5k into MFs as SIPs which comes to 150k per year.. I put 70k of my yearly savings into PPF each year to take part of the debt component of my portfolio as it is also tax free and helps in long term disciplined investing.. My other yearly expenses will be towards life insurance (25k), health insurance (8k) and income tax (22k).. This will be the rough breakup of my investments each year..I have a few miscellaneous expenses each year towards attending conferences and purchasing household materials which amount to another 20-30k each year.. My monthly expenditure at present is about 13-15k, which I am sure will change once I am married and have dependents..
I would like to save money for my retirement (5 crores @ the age of 65yrs), to open a good clinic (1 crore @ the age of 40yrs), and pay for my child education (1 crore @ at the age of 50yrs).. these are my major goals..I think I will skip on the marriage goal..
Other minor goals are to purchase a small car (5 lakhs in 2yrs) and save a small corpus for vacations/miscellaneous each year (about 30-40k each year)..
But when I try to calculate my monthly investment requirements, I miserably fall short because I just dont have that much money.. I know you may think these goals are not at all realistic but I’m sure that it will be the minimum cost of things when I reach those ages.. I am not so lucky like other people to have a very huge salary..It is going to take me considerable time to start earning that well..(maybe another 5 years because it takes that much time to settle down to earn from private practice) So what do I do at the moment?
Please give me your views..
A very worried Sunnydoc…
Hi,
I happened read your post in full, in many ways similar questions have been on my mind, and everything seemed very unreal, untill I sought help from Jagoinvestor.com for planning my financial life.
I have not yet had a complete financial overhaul, but the initial touch from Jagoinvestor has made some changes to my mindset, and now I have got a clear message from here that its in our capacity to define and decorate our financial life and that it is our choice.
I am not providing a solution to any of your queries, but, just wanted to say “.. ALL THE BEST..”
Harsha.
Well thanks for the good wishes Harsha, but still those doubts in my mind remain so.. Of course its the choices we make that will decide our own financial life, and actions need to be taken.. but I am sure that any common investor will have the same queries going through his or her mind – ‘have i done enough?’, ‘am i on the right track?’, ‘I am doing better than most other people I know, but still only I know that I am falling short of my goals’, etc, etc..
I have been a reader of JI since almost a year now, and I have taken actions only because I was better informed than one year ago.. But what I want to know is, how does one ensure not to fall short of his/her goals? Please read my original post to understand what I am trying to convey..
At this point of time I feel that people who are unaware/ignorant of this goal crunch will feel more comfortable with their lives..
Somebody said, ‘the day you become comfortable with your life is the day you shall cease to progress’..
I’m definitely not comfortable..
Sunnydoc…
Hi Harsha,
Thanks for contributing on action month. I appreciate your vision (in one of your mails that you sent) of taking jagoinvestor to schools, colleges and to all the people who dont know about our work and approach.
It is great to have you on board and help you work with your finances.
Hi Doctor,
The first thing the doctor says to patient is that “Don’t worry” you will be alright. That is what I will say at this point of time to you why because worry is a misuse of imagination. I would say Dont worry or Dont just worry about your finances. The same energy we invest in worrying can be diverted in taking actions in our financial life.
I am a financial coach and would like to introduce you to some coaching over here. cant do wok in depth but will try my best to help you.
Something called as Result goal and process goal
Your retirement goal for example is a Result goal which is x years away from now.
Now you need to define some process/daily goals which will eventually help you meet your result goal.
Eg someone’s current weight is 140 kgs and he wants to reduce and make it 80 kgs. Now if he keeps looking at his target (result goal) every day it will kill him. Instead he needs to create some process goal like 2 hours of exercise, eating 2 meals a day, no ghee and oil, eating salad and fruits in dinner, taking a walk in night. Now these process or daily goals. Process goals are much more in your hands you can do something about it right now.
I coached a person who was worried about his 30 year far goal, it was affecting his health badly with diabetes and other ailments. Now he is only focusing on process goals that will make his 2011 his best financial year.
As a coach I always say dont show me your needs show me the seeds. Lets put some seeds of wealth and than let them grow.
How does wealth really grow or say how does a plant grow row-by row, inch-by-inch , you need to water it and give it sunlight and that is how it grows. The same thing applies to wealth.
Your goals should have a pull effect on you rather than push effect.
Inflating a goal and than breaking it into an sip is not the only way you can meet your goal. How i do it in my life is I have created 3 wealth creating baskets (5,7,10 yrs) and than i source them each day each month each year.
I hope sunny my coaching has helped you.
Tow questions for you ?
1. What is the one most powerful action you can take in your finanical life right now?
2. Are you playing fully in your financial life or not ?
Wealth happens in this moment, freedom happens in this moment. The best futures are created in the present moment.
All the best, have a great participation in action month and do share 3 most powerful insights you got from my reply.
Dear Nandish,
Thanks for the reply.. yes I can understand from your words that I need to be slow and steady and have patience..
As of now, I am not sure what could be the most powerful action that I can take.. I have created an asset allocation for myself and trying to invest all my savings diligently..I am trying to do the best I can with what I am earning..Have created an emergency fund, taken a term plan, taken a health insurance, investing in SIPs..
I felt that I was earning enough but now realised that It may not be enough to fulfil my long term goals and that scared me.. Hopefully a few years down the line I may be better off and not so scared..
Sunnydoc…
PS: could you please explain in more detail about what those 3 wealth baskets are about?.. I did not understand it exactly..
Great so slow down and focus on what you have and make the most out of it.
About wealth creating baskets:
You can create 3 baskets of 5-7-10 years and than source them with some investment product eg mutual funds. gold etf’s, PPF, stocks etc. This is what i do and have also suggested my clients till now.
By doing this you start creating a pool of wealth in your life.
As a first step break some threshold point eg 25 lacs or 50 lacs , create that number as a game and break the threshold point.
You have a different power when your pockets are full (threshold point is broken) .
Have focus on one goal wealth creation rather than having multiple goals and than not being able to focus on any.
Winners focus and losers spray, wealth creation calls for focus and for that you need to slow down, simplify your finances, choose products for your baskets and than source them.
Fall in love with wealth creation sunny.
Let the world know what actions you took and created your financial life.
all the best
nandish
Nandish thanks for the inspiration..
I will try to do as you suggested.. I wanted to know if I need to keep each basket exclusive or should I think of the wider angle in investing?
Suppose I wish to reach the following goals:
1. 50 lakhs in ten years for purchasing clinic
2. 1 crore in twenty years for child higher education
3. 5 crores in 35 years for retirement corpus
Should I keep each basket totally separate from the other? If I invest primarily in mutual funds through SIPs then should each fund be separate? Then I think I would end up having too many funds..
The other major chunk of my savings goes into PPF as 70k each year.. So how do I separate that savings towards achieving my goals individually?
Please help..
Sunnydoc..
i suggest you to go for a professional advice so that you meet your goals in a very systematic way.
Ok.. Thank you..
I shall start saving some more from now on so that I can achieve my goals.. I was just wondering, should I continue with the few mutual funds I have to achieve all goals or am I supposed to keep them separate for each individual goal?
Sunnydoc
I would recommend not attaching them with each goal , thats purely mental accounting ..
You cna just choose some funds and mark them for your GOALS . thats all
Manish
Hi Doctor,
I did this fight in myself sometime back, wether to be an Ekalavya (by google, friends advice, books, other sources), or to be an Arjuna with Jagoinvestor, SubraMoney, Hemant Beniwal or others…
At some point I decided to ditch questions and go for it, I have not made millions yet, but now I know I will be there.
Before Jogoinvestor, I used to focus on problems and questions, now I focus on solutions.
HTHs,
Harsha.
I hope people start doing things Now.
I can listen to your commitment for people. The question to ask is If not now when?. Action Month is an invitation to be in action, the committed will not miss it for sure.
Hi Nandish,
I have been a reader of Jagoinvestor from few months, and I should say that I went beyond some of my financial beliefes after reading and realising from articles here.
Because of my this reading experience, I see value in ‘..Action..’ for ex, surrendering a LIC policy.
But if I want to share this view with a friend of mine who has not had such a realisation, I wont be taken seriously. It wouldnt be possible by that friend of mine to surrender an LIC policy, say, just by reading this one post alone.
It will take time for this friend to read so much more which is on this website, it will take a few months (or more) for such a realisation to sink deep.
So I guess this ‘..Action Month..’ will be of use for people who have been reading and realising from this website, but not to outsiders.
Would like to know your viewpoint.
Best Rgds,
Harsha.
Harsha
Good to hear that .. you translated your thinking through actions .and I agree that many people who are not on jagoinvestor will take some time to realise that actions is the ultimate truth .. rest all things are maya .
Why dont you bring your friend on JI ?
Manish
A THOUSAND MILE JOURNEY STARTS WITH A FIRST STEP..
…And what better time than to have the month of AUGUST to start/gain/acquire FINANCIAL FREEDOME by taking concrete action..
I think its a great initiative for huge benefit for our readers..Kudos to you Manish and your team..
Well said dhaval. Thanks for your appreciation, your contribution has been huge on the blog .
Hi Nandish,
The idea is really a great initiative from the JAGO team… Kudos to both of u… Will definitely spread this to my near and dear…. Would like to start SIP on MF’s with FundsIndia right this month itself and now I have registered myself to get into the action. Wishing you all, the very best on this initative.
Prakash,
Amazing to know that you are 100% in action. Keep the game moving. Thanks for all your love and appreciation to the action month project
Hi Manish,
I have a doubt to ask you guys, I am investing in Mutual funds via SIP for some 4 years. What i do is, i choose some(3-4) 5 star rated funds each year from 2-3 categories and start a SIP for a year. Next year i choose again some 5 star rated funds (could be same or different) and start a SIP for a year. My problem is now i have a portfolio of some 15 odd funds, some are still good and some are below average, as I have learned that one should not have more 5 funds in its portfolio. What should i do with them now ? what is the way to invest in MFs, i mean how to decide SIP term ?
@KAPIL – As you must have heard, “EXCESS OF EVERYTHING IS BAD.” So is the case with excessive diversification, in your case – in 15 MUTUAL FUNDS..
My advice would be to earmark your funds in 5 broad catagories
1) EQUITY – LARGE CAP
2) EQUITY – LARGE & MID CAP
3) EQUITY – MID & SMALL CAP
4) EQUITY – SMALL & MICRO CAP
5) EQUITY – DIVERSIFIED/GOLD FUND
You can select one fund in each of these five catagories. Select a fund which is at least 5 to 7 years old, and out of a few of these funds – select the one which has give maximum return..and let your fund grow..Check your portfolio after at least 6 months..and for last couple of years, most of the funds are in red..so its not that suddenly all your 5-star rated funds have become bad..Just keep faith and continue your SIP and soon you will be in GREEN..
Remember one thing (In financial matters specifically) – KEEP IT SIMPLE, SILLY
Hi Manish,
I have a doubt to ask you guys, I am investing in Mutual funds via SIP for some 4 years. What i do is, i choose some(3-4) 5 star rated funds each year from 2-3 categories and start a SIP for a year. Next year i choose again some 5 star rated funds (could be same or different) and start a SIP for a year. My problem is now i have a portfolio of some 15 odd funds, some are still good and some are below average, as I have learned that one should not have more than 5 funds in its portfolio. What should i do with them now ? what is the way to invest in MFs, i mean how to decide SIP term or shall i stick to one fund or what to do with the old fund when we change to the new fund?
Kapil,
You need to have a holistic view of your portfolio [include equity (stocks + MF) and debt (PPF+FD+debt funds)]. And plan accordingly. Concentrate over a few well-performing funds which cater to your style of investment (conservative / aggressive, to name a few). And then continue investing in those and those only. Running after only 5-star funds is futile and bad both in terms of managing them (you now have 15 of them) and in returns (if you put your funds in a analyser, you will be having 250-300 stocks in your stock portfolio).
Presently, publish the list of funds you have with sums involved (how much of your portfolio is in them). We will help you in trimming them. Also, mention what kind of time-frame are you looking at? What is your aim with this amount?
Kapil
The more you think and the more you want to have your portfolio perfect , the more time you will waste . Eventually all you need to ask is if you sell all the funds you have today and then buy them next day , which are the top funds you will go with , Just keep those and rest all you can liquidate . just see the exit load part ..
Dont make friends each year .. be with the one’s you are already with
Manish
I hope people start doing something Now.
Ramesh
Hi manish & nandish,
Great initiative from Jagoinvestor. I m sure most of the participants will benefit from it. Start of a storm in indivisuals financial life.
yeah lets create a storm of action in peoples financial life
Hi Manish,
I have mailed you my query. The mail contains number of tables and also an excel is attached. So I can put the query directly here. Kindly put this on my behalf.
Also I have a query to FundsIndia team. I have my account with FundsIndia and intend to use the platform for all my mutual fund investment and may be for other assets in future. MY query is regarding the security aspects of the website/ database. Considering a hypothetical case, that if your database gets hacked and my login username/ password got exposed, what can be the maximum consequence of that.
Is there any way the money can be misappropriated? As the account is protected by the password only, if someone gets hold of the password, he can sell the entire portfolio immediately. Even if the money can not be misappropriated, a huge untimely sale can also create some loss for investor.
This is one scenario i can think of. Is there any other scenario, whatever unlikely, is there?
Hello Mr. Banerjee,
Srikanth from FundsIndia here.
We have a highly secure setup. Both the founders of the company (me and my partner) are IT professionals with decades worth of enterprise computing experience between us. All passwords in the system are one-way hashed meaning even we can’t find out your password.
However, having said that, the strongest wall could potentially be breached. What is important is that even in such a worst case scenario, nothing CAN happen to your investments. Mutual fund investments are linked to your bank account directly, and even if someone tries to redeem your folio, the money will only go to your bank account. The only way to change a bank account is with a written request and proof of bank account ownership.
Hope this clarifies,
thanks,
Srikanth
Hi Manish / Nandish
I wish to surrender my Canara HSBC OBC ULIP policy as detailed below. Please review and let me know is it right at this time.
Plan – Canara HSBC OBC Life Unit Linked Limited Pay Endowment Plan
Annual Premium – 14000
Years – 5 yrs
Sum Assured – 70000
Years complated (Premium paid) – 2 years out of 5 years
Total Premium Paid – 28000
Current value – 20500
I know well, ULIP should avoid in investment or insurance point of view.
But I want to know this is the right time to stop my policy (2 yrs completed) or can i continue another 3 years and wait for another 5 years to get good return.
I am waiting for your reply. Kindly review the plan and let me know your valuable suggestions.
Thanks in advance
Regards
Nagarajan S
You have a 5 years lock-in your ULIP. Now the most important question is not whether to continue or discontinue, the question is do you understand 100% how ulips work or not ? . Any financial product you make money when you have an understanding of it otherwise not. If you understand ulips mechanism and can switch debt to equity as per market movements or conditions you can stay invested otherwise stop paying further premiums and than take your fund value once the lock-in time is over.
Hi Nandish,
Thanks this answer works for me also need to surrender my reliance ulip soon, last 2 years left. After i started reading jago investor and meeting up with you guys i have also done a few thing (action)
)
every day is a new lesson……..but gives immense satisfaction).
1.Opened an account with funds india
2. Started a few SIP’s
3. Surrendered my useless money back policies from PLI(Postal life insurance) and LIC, though it was painfull.I Read jago investor again and again for motivation.
4.Bought a Term insurance based on recommendations given by manish (Thanks a million manish…….and you too Nandish how can i forget u
5. Started Budgeting and preplanning of my future and current expenses.(Ya, i still fault on it a bit but after a few months got nearer to my goals every month,initially it was really painfull).
6. Understood and tried to implement invest before spend later philosophy(Still working on it
7. Last but not the least cleared all but one loan of my mine in just about a year, thanks to teachings of jago investor.GOD bless you guys.
Now the to do list
thanks to the action month).
1. Surrender the ULIP after completing 5 years, 2 are left.
2. Organise my financial documents.(Donno wat they are but will know it in a few days
3. Make one rather two master files with Sections on Mutual funds, Insurance,Bank accounts and FD’s,Online accounts like fundsindia (Will add a few more as and wen i rem). And add every detail for each section to it (How to redeem MF , How to claim insurance,Procedure and Documentation,Passwords access to each of my online account including banks and funds india to be used in case of requirement…….).
4. Last but not the least make a thorough WILL (actually made one with my employer but need to add other assests also.)
5. And Discipline myself on Financial front a bit every day.
Avinash
Nice to see your action list . just make sure you have that fire to ocmplete things and you actually do it ,. and if you cant , then answer yourself , if not today then when , if not you , then who ?
Manish
@NAGARAJAN – First of all, ask yourself for what purpose have you taken this policy?? If its for TAX EXEMPTION purposes, then it has solved its purpose and will continue to do so till you are paying your premium. So no problme on that count..If its for INVESTMENT PURPOSE, then be cautious that you will be able to generate profit only if you run your ULIP for at least 8 to 10 years. As ULIP has upfront charges (Charges in the first 2 to 3 years), your fund will naturally be less than total premium paid in initial years..One more thing to check is WHICH FUND have you opted for in this ULIP?? If its a DEBT fund or BALANCER FUND, you will not gain much even in long term..So please ensure that your selected FUND is EQUITY FUND so that you will earn profits in LONG TERM..Finally, it its for LIFE COVER purpose, then this policy is useless..Take TERM PLAN for that purpose..
Thanks Nandish and Dhawal for your suggesstions.
I got a answer now. Currently this is Growth Fund (60% in Equity) and 2 gone. So I decided to continue this policy with Equity Fund option (3 years left so not much different for paying premium for this 3 years and wait for 8 to 10 years to get good return)
Once again thanks guys
Regards
Nagarajan S
Nagarajan
Another thing is you will NOT GET TAX Deduction from next year when DTC comes into effect because your SA is not 20 times or more than the premium , so you also want to think about it .
Do you have the brochure of the ULIP with you which shows what happens in case of Surrendering the ULIP before 3 yrs ? I suppose the lock in for this would be 3 yrs as it was bought before Sept 1 .
Manish
Hi Manish
Thanks for your reply.
My premiun mode is quarterly (3500 / Q X 5 yrs = 70000). But I mentioned the total yearly payment in the previous post. Sorry for the inconvenience. So I hope i will get Tax benifit
From my Brouchre –
In case you discontinue/do not pay Premiums in the first 3 Policy years:-
* If you do not revive the Policy during the Revival Period, then the Policy will terminate at the end of the Revival Period and the Surrender Value (if any) will be paid to you
* If you opt to surrender the Policy during first three Policy years, your Units will be disinvested immediately and kept in rupee terms. However, Surrender Value shall be paid at the end of 3rd Policy year based on Surrender Charges as on the date of first due and unpaid Premium.
* If you opt to surrender the Policy post first three Policy years, your Surrender Value as on date will be paid to you immediately. However, the applicable Surrender Charges shall be as per the Surrender Charges on date of discontinuance of Premium
* No further Premiums will be accepted. Only revival facility by payment of all due Premium is available
* No Partial Withdrawals can be made during the Revival Period
In case you discontinue/do not pay Premiums post 3 Policy years:-
* Life Cover, Rider Cover (if any) and Payor Benefit cover will continue till the end of the Revival Period
* All charges (including Mortality Charges and Payor Charges) will continue to be deducted
* You can make Partial Withdrawals during the Revival Period, subject to other conditions mentioned in Partial Withdrawal clause
* If you do not revive the Policy during the Revival Period, then the Policy will terminate at the end of the Revival Period and the Surrender Value will be paid to you. However, if at any time before the end of Revival Period, Surrender Value reaches an amount equivalent to one full year’s Premium, due to depletion of Funds by charges or due to adverse movement of markets, the Policy shall terminate immediately and
Surrender Value is payable
* You can revive the Policy within 5 years from the date of first unpaid Premium
* No further Premiums will be accepted. Only revival facility by payment of all due Premium is available
* You can opt for Automatic Life Cover Continuance upon a written request rd anytime after 3 Policy year and before the end of Revival Period through which your Policy will continue till Surrender Value reaches a minimum of one full year’s Premium
My Queries are:-
1. If I am going to stop my policy in 4th year, I will get the amount in 7th year only ? (due 3 year lock period)
2. I think this is not make sense to stop policy after paying 3 yrs premium and only 2 years left.
3. Change the mode to EQUITY and complete the poilcy (already 2 years premium paid) and wait up 10th year (Ploicy Term) to get good return ? (Ploicy Term – 10 yrs, premium – 5 yrs and currently i am in 3rd year biginning)
Expect your reply Manish …
Thanks and Regards
Nagarajan S
Nagarajan
If you stop your policy in 4th year , you will get the money in 4th year itself , why 7 yrs ?
The lock in period does not mean that those are not counted . If you are not using the features of the ULIP , you should just discountinue it and free yourself from it .
Manish
Great. You are there to improve our “To do” ratio . I was planning to do this action month from long back. Now i will try to utilise the same to set right all finacial matters like Mutual fund/stock/asset allocation review , organsation of fin docs.
Thanks a lot
Hey Kumar we are turning goals into commitments, they are different and no the same. Personal finance is not about goals it is about commitments. Also we are working on people’s “say-do” ratio. The more people get committed the higher is the say-do ratio of investor.
All the best for the actions you are going to take. Play 100%
Hi,
This is great initative. last week only i have opened a acound in fundsindia, i was about to invest in MF in SIP route for almost 6 months back, but it was just not happening. i want to start with a amount og 10K. do you have any suggestion for the same
BR
Siva
Hello Siva,
Srikanth from FundsIndia here. Happy to see you in FundsIndia.
I’d be happy to help you with putting together your SIP portfolio. Could you let me know the time frame you are interested in for this SIP? Is it a long-term investment (greater than 5 years) or do you need the money prior to that?
Also, do you have any other SIP going on, or recurring deposit investments?
thanks,
Srikanth
FundsIndia.com
i have a SIP in HDFC top 200 for Rs3000. i have invested in few tax saving MF.
1 bank RD for Rs.5000
Time frame is long term may be longer than 5 years.
Hello Siva,
If your time frame is longer than five years, then the bank RD is not a good idea – the returns will not be commensurate with the risks you can assume with such a time frame. You will be better off with investing in balanced funds such as HDFC PRudence or DSP BR Balanced.
Apart from these, (given that you are already in HDFC Top 200), I would add a fund like DSP BR small and mid-cap fund or ICICI Pru Discovery into the mix to give you a good mid-cap segment exposure.
thanks,
Srikanth
Siva
Also you get a ready recknoer list with the action kit , we have balanced and equity funds suggestions there you can pick any of those if you have a long term view .
Manish
It’s My Honour and Proud to be a Panel member of jagoinvestor Action Month Initiative, We at Invest Plus are proud to be associated with JI Action Month
Managing your financial life or portfolio is as important as doing investment for your family and future. so “It is not enough to stare up the steps – we must step up the stairs.”
Mitul Dadhania | investplus.in
Mitul
Good to have you here
.
Manish
Hi,
I need your inputs on the following MF’s I hold. Kindly let me know if I’ve made the right choices :
Fidelity India Growth(G) Start date: 01/11/2007 – End Date : 01/11/2010 amount 2000 SIP every month
SBI Magnum Contra(G) : Start Date 02/08/2010 End Date : 02/07/2011 amount 2500 SIP every month
Benchmark S&P CNX 500(G) : Start Date : 24/12/2010 on going amount 2500 SIP every month
DSPBR Top 100 Equity-Reg(G) : Start Date : 24/12/2010 on going amount 2500 SIP every month
Fidelity Equity(G) : Start Date : 24/12/2010 on going amount 2500 SIP every month
HDFC Top 200(G) : Start Date : 24/12/2010 on going amount 2500 SIP every month
HDFC Balanced(G) : Start Date : 10/08/2011 on going amount 2500 SIP every month
Quantum LT Equity(G) : Start Date 09/02/2011 on going amount 2500 SIP every month
IDFC Premier Equity-A(G) : Start Date 02/08/2010 ongoing amount 2500 SIP every month
The aim is to build the corpus for my retirement. And right now I’m aged 36. I can take enough risks for somemore time until I reach 40.
Need your inputs in case I need to do any changes to the portfolio
Thanks,
UKN
UKN
Most of the funds you have is mostly very much same .. there is no need to have all of them .. better to just limit it to 3-4 . I would go with HDFC Top 200(G) , Fidelity Equity(G) , Benchmark S&P CNX 500(G)
Manish
Thanks Manish for your response.
Do you think I need to diversify more ? If so can you kindly suggest the funds I need to opt for ?
Thanks,
UKN
No , i am saying you need to cut your portfolio short and limit it to just 3-4
Manish
Dear Sir,
I want to do a SIP of Rs 1000 for 10 years. Please suggest me the fund for which i look upon. Should i invest in HDFC EQUITY GROWTH fund or should i Opt for Reliance Growth Fund. & I also want to invest Rs 3lacs for 5 or more years. IDBI BANK is Providing me interest of 9.5%. should i go for it or not. I want it to be safe. don’t want to invest this 3 lacs in equity. Please guide me for the same.
Hello sir,
I will keep my counsel to the SIP portion of your query. Here is a moderately aggressive portfolio for 10K per month:
HDFC Top 200 – Rs. 3000
ICICI Prudential focussed bluechip – Rs. 3000
IDFC Premier Equity fund – Rs. 2000
Quantum Gold Savings fund – Rs. 2000
If you don’t want Gold in your portfolio, you can replace the last fund with either a multi-cap fund like Quantum long term equity fund or a hybrid fund like DSP Blackrock Balanced (depending on whether you want to go more or less aggressive in your portfolio).
Regards,
Srikanth
Fundsindia.com
Thank u very much sir for your kind advise. Sir please guide me for the other part also
Hello sir,
If you want to be completely safe with the lump sum investment, a bank FD is the best idea. Given where interest rates are right now, if you are ok with a five year lock, 9.5% is good.
Alternately, if you are ok with a teensy bit of risk, you can consider investing in 2 or 3 year FMPs which gives better tax advantage for the same money and hence, better returns.
thanks,
Srikanth
Hi,
I am going through your website for a long time and at first want to thank you for providing such wonderful insights for investors.
I am 25 years old.
Current investment: Direct stock: Rs 50000/-, ELSS: Current portfolio of around Rs 34000/-. I will invest approx Rs 4500/- per month up to March 2012 (equal amount of Rs 2250/- per month each in Canara Robeco Equity Taxsaver and Religare Taxplan).
Now I want to create a mutual fund (MF) portfolio (agreesive equity oriented) in which I want to invest around Rs 8000 per month. Target is to earn 13-15% annualized return and time frame is next 10-15 years. I have an online investment account with fundsindia.com and normally invest in small lump sum amount each month whenever market goes down 3-4% in that month, than doing a regular SIP on a fixed date.
My main purpose is to identify a very good performing mutual fund portfolio at start (as far as possible) so that in future I do not need to churn much. Also as my time frame is quite long, even a 2% change in return can create a lot of difference. So put some effort to identify and research the mutual fund performances to identify right funds.
Brief details of my research and analysis (using valueresearchonline database) to decide on the MFs:-
1. First looked at fund category returns for 1, 3, 5 years.
Conclusion: 3 sector funds pharma, FMCG and banking literally outperforming any other category consistently. Ranking within categories are somewhat like:
Pharma > Banking> FMCG> Mid & Small Cap> Multicap> Large & Midcap > Large cap.
Category Returns
6-M 1-Y 2-Y 3-Y 5-Y
Equity Pharma 16.03 44.4 65.39 22.32 21.73
Equity FMCG 27.25 48.05 55.49 18.04 20.89
Equity Banking 32.14 53.76 69.32 11.4 29.43
Equity : Mid & Small Cap 17.15 41.25 60.82 4.57 18.89
Equity Multi Cap 16.34 32.93 54.72 4.97 22.02
Large & Mid Cap 15.34 28.43 50.01 2.08 21.07
Large Cap 15.67 27.24 48.07 1.19 20.9
Tax Saving 15.92 33.06 52.65 3.39 19.16
2. Next step:- identifying and ranking top 2-3 funds (4–5 star rated) in each category using:- 1,3,5 years return, sharpe ratio, alpha, tenure of fund managers (all parameters higher the better) and expense ratio, turnover(%), P/E ratio (lower the better).
Conclusion: Ranks and funds identified is given below:-
Rank Funds
Equity Pharma
1 Reliance Pharma
Franklin Pharma
Equity FMCG
1 Magnum FMCG
icici prudetial fmcg
Franklin FMCG
Equity Banking
1 Reliance Banking Retail
Reliance Banking ETF
Equity Multi Cap
1 HDFC Equity
2 Reliance Equity Opportunities
3 Quantum Long Term Equity
Equity : Mid & Small Cap
1 HDFC Midcap Opportunities
2 IDFC Premier Equity Plan A
3 Birla Sin Life Dividend yield Plus
4 ING Dividend Yield
Large & Mid Cap
1 HDFC Top 200
1 UTI Dividend yiled
2 UTI Opportunities
3 Fidelity Equity
4 DSPBR Opportunities
Large Cap
1 Ipru Focused Bluechip Retail
2 Franklin India Bluechip
3 DSPBR Top 100 Equity Reg
Tax Saving
1 Canara robeco
2 IPRU Taxplan
3 Fidelity Tax Advantage
Balanced
HDFC Prudence
3. Next comparing, the selected funds from all category together, without considering the funds category:-
Top 8 Ranking are (comparative ranking by 1, 3 and 5 years return):-
1 HDFC Midcap Opportunities
2 HDFC Prudence
3 IDFC Premier Equity Plan A
4 Birla Sin Life Dividend yield Plus
5 UTI Dividend Yield
6 Ipru Focused Bluechip Retail
7 HDFC Top 200
8 HDFC Equity
4. Some observations:-
· Pharma, banking, FMCG funds consistenly outperform significantly other categories in both short or long term. Should be included in portfolio in small allocation.
· HDFC prudence even being a balanced fund consistently outperforms HDFC top 200 and HDFC equity.
· HDFC is top performing fundhouse, funds from HDFC topping its categories in most cases.
· Midcap & small cap funds outperformed large caps by a large amount.
· Large cap funds are consistently under performing than other categories.
· May be deviated (and in contrast) from the valueresearchonline.com recommendation or in general recommendation, recommending to allocate 60%-70% in large and midcap funds and rest portion in other categories.
5. Portfolio allocation:-
Portfolio Allocation
Portfolio Allocation
Category Allocation
Reliance Pharma Sectoral 650
Magnum FMCG Sectoral 650
Reliance Banking Retail Sectoral 700 2000 25%
HDFC Midcap Opportunities Mid & Small Cap 1000
IDFC Premier Equity Plan A Mid & Small Cap 1000 2000 25%
UTI Dividend yiled Large & Mid cap 1000 1000 13%
Ipru Focused Bluechip Retail Large cap 1500 1500 19%
HDFC Prudence Balanced 1500 1500 19%
Total 8000 100%
NB: As already two midcap & small cap funds are included in the portfolio (HDFC midcap, IDFC premier) Birla sunlife dividend yield find is kept out.
HDFC fund house is definitely good performing, but two many funds from same fund house may create risk and concentration. Considering this HDFC Top 200 and HDFC equity is kept out, UTI dividend yield is put in.
Kindly respond to the following queries:-
I. Kindly recommend any flaws in the analysis and changes necessary.
II. Do FMCG sector exposure is really needed, considering the awesome l 1, 3, 5 years return . Is Magnum FMCG a good choice? Similarly, is UTI Dividend yield a good choice, I have little reservation with SBI, UTI fundhouse management.
III. Also, recommend mutual fund portfolio, deviation if any needed from the above, for 10 years time frame, 5000 rs per month investment, objective : corpus for children education.
Regards
Sankha S Banerjee
My views:
1. You have analysed the funds in much detail, which is a good thing. But you should start from the very basic. Namely, what is a mutual fund and what is its purpose?
A mutual fund is a BASKET of stocks, debt papers (P1, different credit rating bonds, CD) and some cash and its purpose is to cater to a written MANDATE (like UTI dividend yield will strive to invest in companies which provide good dividend yields, etc) under some regulated rules (in this case, SEBI). Furthermore, a MF has one or more fund managers supported by a group of analysts (of that particular AMC), which ponder over the current economic scenario and analyse stocks and companies (in case of stocks, and similarly for debt too).
So when you select sectoral funds like magnum FMCG, you get a basket of FMCG stocks and are limited to that group only, whether the economic scenario is good for FMCG companies or not.
2. Your ideas are more suited for direct stock investing, rather than MF investing. So, if you think FMCG is going to work in the near future, jump on the wagon by investing in FMCG companies (eg, both HUL and ITC). Similar is the case for banking sector.
3. If you go for the your final portfolio, even your diversified funds will have a significant overlap with your sectoral funds.
4. Even 5 years is a short time for a proper analysis.
5. UTI dividend yield is a good fund.
5. My advice will be
a. Remove all sectoral funds.
b. Keep 3 funds, IDFC Premier Equity (2k), UTI Dividend yield (3k) and HDFC Prudence (3k). Reasons are:
i. Removed HDFC Midcap oppor fund, since you have Prudence.
ii. Removed IPru Focused Bluechip bc of very restricted mandate.
iii.Removed all sectoral funds, since direct investing is a better play for that and there is already significant overlap with other funds.
iv. IDFC Premier Equity and HDFC Prudence are fairly aggressive funds while UTI dividend yield is a conservative fund. Overall, this should act in a more balanced way.
v. In future, you can progressively increase the amount of SIP in the same group of funds.
6. You can probably keep the same combination of funds or modify it slightly for the other goal of child education.
Hope this solves your queries.
Ramesh
Hi,
How do I determine whether a policy should be surrendered and closed?
Are there any general standards?
Thanks
Sanchay
I meant Life Insurance Policy.
It does not have any standard sanchay it needs courage and your willingness to stop insurance policies that you saw as investment tool in past. We bought policy from our friend or relative , most of the times to oblige or to save tax.
If you have crossed more than 3 years (talking about money back and endowment policies) of LIC you get eligible to surrender.
If you want your money to work harder for you than go ahead and surrender. Take the money make a one time investment in some mutual fund (balanced or mip) and start sip with the premium you are going to save on.
You have not mentioned which policies you have and how many premiums you have paid so far. If this is sufficient for you than go ahead and surrender and let us know the results.
Before you stop buy a term plan so that your insurance is in place.
Hi Nandish,
Thanks for reply. Here are my policy details, all are LIC. Btw, I never took insurance as investment, but I was not aware about term plans, the moment I got awareness, I brought it.
What will be the surrender value for an LIC policy, is there any formula?
Policy Policy-1
Type Endowment
Insured Amount 25000
Policy Term 20 Years
Start Date 2001
End Date 2021
Policy Policy-2
Type Endowment Triple Cover
Insured Amount 100000
Policy Term 30 Years
Start Date 2005
End Date 2035
Policy Policy-3
Type Jeevan Anand
Insured Amount 100000
Policy Term 30 Years
Start Date 2005
End Date 2035
Policy Policy-4
Type Jeevan Anand
Insured Amount 100000
Policy Term 25 Years
Start Date 2005
End Date 2030
Policy Policy-5
Type Jeevan Anand
Insured Amount 400000
Policy Term 25 Years
Start Date 2005
End Date 2030
Policy Policy-6
Type LIC Term Plan
Insured Amount 2500000
Policy Term 35 Years
Start Date 2008
End Date 2043
Call your friendly insurance agent for a cup of tea(but dont let him drink) and ask him “Bhai yeah saab policy muje kyon bechaa”
You can get surrender value exact one from LIC office itself.
There is a formula but it is better if you ask LIC agent or LIC itself.
Your term plan wont have any surrender value but other policies will have SV.
You get eligible for getting surrender value after you have paid 3 years of premium. So if you have paid 3 premiums and you surrender than 3-1=2 premiums paid x 30% is what you get (in jeevan anand ). now higher the years you have paid higher your SV gets plus after 5 yrs some bonus will get attached.
Go and ask LIC itself it is your right to get the information.
Thanks Nandish.
I will get this info. from LIC office. Btw, even after taking term plan, one should wait for 1-2 years before surrendering other policies, since sometimes if death occurs due to medical reasons within 1-2 years, insurers can refuse to pay.
put a deadline by when you will go to LIC or call LIC and get surrender value details in. Action month is all about setting deadlines, it is a mission. I am not a blogger i only speak language of a coach so dont take it wrongly.
Insurance is a legal contract so you get the money the moment you paid the premium. some exceptions like suicide may be special cases.
what medical thing can happen to you, why get into all such conversations.
Take the term plan and stop the junk policies . simple
all the best
I am impressed. Will do this within next 7 days.
Great .. Please update your actions here .. you are accountable for it , not to us , but yourself , your family , your financial life
Manish
Hi,
Few updates and questions.
1)I am zeroing in on Kotak Preferred Term Plan. Scheduled meeting with their representatives.
.
. Just waiting for getting the term plan. All the necessities for surrender are ready.
, i.e. “HDFC Top 200 Fund”, can you guide me, so that I can study them.
Few questions on term plans
1)What is Accidental Death Rider?
2)What is Critical Illness Rider?
3)What is Permanent Disability Rider?
I am asking this, so that I can cross check with isurance agent
2)In process of of surrendering ALL my endowmnet insurance plans
3)I can invest 15K/month. I am planning to deposit 5000/month in my home loan account. I am having SBI max gain a/c, so can deposit smaller chunks on money each month. Calculations shows that by doing this will close the loan in 14 years (instead of 22 years). Rest of the money I will invest in the mutual funds. I was able to confrim just 1 mutual fund
Will start SIP after results of “Action Month” lucky draw are declared, who knows I am the lucky one to get free for life account on moneysights
Other updates
1)Updated my contact address with my ALL my bank accounts, Demat account.
2)Initiated closure process of my almost stalled bank account.
Next target is getting Health Insurance, currently working on it.
Waiting for replies.
Thanks
Sanchay
Hi,
If one survives the policy period for term insurance, will he/she get back the premiums paid or is it always no returns at the end of policy term???
Thanks
Raja
Raja you do not get any money back in term plan in case you survive and complete the policy term. That is the reason why it is a term plan.
Although some term plans are available which returns the premium paid but they charge a little higher and you need to comply with a few conditions.
We recommend you to go for pure term plan in which you get protection and nothing comes back.
Do let us know the actions you took and also share with your family once your life cover is in place.
Hi Nandish,
Thanks for the prompt reply…
Need a clarification – how come term plans with less premium & no returns is superior when compared to term plans with higher premium & assured returns…
The simplest thing to do is go for a pure term plan where you get life protection and nothing comes back .
Using and seeing insurance as insurance is very important and crucial. One has to control the greed of something coming back (What if i live? syndrome)
Hello Raja,
May be this blog post will give you clear idea on your question:
http://www.jagoinvestor.com/2009/04/return-of-premium-term-insurance-is-it.html
Hi Raja,
Term plans are always better than the assured return plans. Its like taking an insurance for a bike or a car. If there is no damage to the vehicle then that money is not returned to you. Insurance companies run on probability calculations, thats why the premium amount may seem low to you.. But dont worry, the insurance companies still profit out of such ventures..
Assured returns will lead to higher premium because of the simple reason that the probability of the company having to pay you back is 100%.
Sunnydoc
Thx for the guidance folks…
I have taken ICICI’s iProtect term insurace worth 1c for 30 yrs…
Raja
We are all very happy that you got the action done in your life.
Last 15 days left so play fully and have more and more people get benefited with action month.
All the best
nandish
Hi,
Currently am holding ICICI Life Time Super ULIP, the details are as follows:
Issue Date – Nov 24, 2006
Premium – 20k/year
Policy term – 15 yrs
Sum Assured – 3L
So far I have invested 1L (5 years) and the value as on Aug 16 is 1.06 L…is it advisable to return this policy.
Thanks
Raja
Hi,
My current SIP details are as follows:
Birla Sun Life Dividend Yield plus(Growth) – Rs 1500 for 3 yrs
HDFC Prudence Fund(Growth) – Rs 1500 for 5 yrs
Franklin India Blue Chip Fund(Growth) – Rs 2000 for 3 yrs
HDFC Equity Fund (Growth) Rs 2000 for 3 yrs
Please review my portfoliio and let know for any suggestions/improvements.
Thanks
Raja
Our panel will be unable to answer you if they feel you need professional advice. As you need help in multiple areas you should take some professional help.
Raja
Did you register for action month ? Which part of action month is this related to ?
Manish
I am 24 Year Old investing in to MF . I have Following Funds In my Portfolio.
1. DSP MICROCAP 2. BSL Frontline EQTY 3.HDFC PRUD. 4. HDFC EQTY 5. Quant. Long Term Eqty 5. IDFC Premier Eqty.
I invest about 15 K per Month in this funds from last 6 months.
I want to know about DSP Micro Cap as Fund, i sometime feel it is Performing not as good considering the Std Dev of this Fund.
I want to be on Aggresive Side, so i want to add one Mid CAP fund or will replace BSL Frontline with Midcap Fund.
Please tell me Which is more suitable Midcap Fund :-
1. IDFC small and MIdcap 2. HDFC Midcap Opp. 3.DSp Small and Midcap 4. BSL Dividend yield.
I manage all my funds through Fundsindia, so i would like Some view from Fundsinda Panel.
Request you Guidance.
Your current funds have enough aggression and balance. I dont think you need any change.
Kamaljit happy, your funds are now approved by ramesh.
Hello
Congrats for such a helpful initiative.
I’m 33yrs old and have following queries regarding health insurance.
1. In ‘family floater plan’ do policy gets transferred to the surviving member of family in case of death of the policy holder?
2. How one can ensure that the family do not lose health insurance due to such eventuality in case of ‘family floater plan’?
3. How to compute the amount of health insurance required if there are no prevailing ailments to any member in the family?
Thanks and Regards
Shiv
@Shiv – FAMILY FLOATER policy in itself clears how many members are their in the policy (for eg 2 ADULTS + 1 KID or 2 ADULTS + 2 KIDS)..In case of any eventuality – death of the proposer, Policy does not end with him. Rest of the family members will be continue to cover under the policy and at the time of renewal, propoer will be changed and the FAMILY FLOATER will become 1 ADULT + 1 KID, as per the case..
There is no hard and fast rule as to the SUM ASSURED or COVER amount to be taken for the MEDICLAIM POLICY..But in todays age of INFLATION and SKYROCKETED MEDICAL EXPENSES, one should go for at least 3 lakhs cover amount and the policy should be such which would have flexibility to increase the cover amount to 10 lakhs to 20 lakhs later on in the future..
Dhawal Sharma
URJA WEALTH CREATORS
Thank you Dhawal for your detailed response.
Are there any trade-offs in the Health Insurance policies that allow flexibility to increase the cover amount at later point of time?
Can you suggest any Health Insurance Policy that allows flexibility to increase cover?
@Shiv – Trade off is an interesting word, never heard off in this field
Its plain and simple a feature of the product wherein you can upgrade your policy from one SUM ASSURED to the HIGHER ONE..
Would advise you to give a look at MAX BUPA policy which allows you the COVER amount upto Rs 50 lakhs..
Dhawal Sharma
URJA WEALTH CREATORS
Shiv,
You can Top up your existing medical insurance with another policy. Many companies offer top-up options. And the best thing is the company does not need to be the same as what you already have.
For example, suppose you have insured yourself for 5 lakhs with company X and then top up another 5 lakhs from company Y. Your hospital bill runs up to 7 lakhs, X will pay 5 lakhs and company Y will pay 2 lakhs..
Sunnydoc
Thank you all for your guidance.
I have completed my goal by taking health insurance from ‘ApolloMunich’.
Have taken insurance of 3L floater as we do not have any prevailing ailments. With my company cover, my total health insurance cover becomes 5L. Planning to increase it gradually with passing years.
Regards
Shiv
Shiv
Its not so straight forward to increase it with same premium .. Try to compare situation where you take a high cover today and when you increase your cover later. .
Manish
Regarding amount required for health insurance, you need to first understand that you are taking this cover for your old age, at least after 40 years of age.
With Healthcare inflation growing at 17-25% year on year in India, If you are 30 now, in 10 years time, your family would need at least a Rs. 10 Lakhs cover to be adequately covered. I would suggest you go for the max. cover you can budget, and not settle for a small sum insured like Rs. 3 or 4 Lakhs. Today’s 3 Lakh cover will be a today’s value of less than 1 Lakh in 10 years.
Please ensure you engage a good advisor, who gives UNBIASED advise across various products, and also provides professional claims assistance.
Good luck….Shiv!
Hi Manish & Nandish
As regards to one of the action point (term insurance), i need advice on new policy for me
I have 2 policies
LIC – Amulya Jeevan – 25 lacs – since 2 years
Aegon – iTerm – 50 lacs – since 1 year
Based on my calculation after considering home loan outstanding for 2 home loans, i think i need 1.25-1.5 crore total insurance. I plan to take addl. term plan for 50-75 lacs.
I shorlisted Aviva iLife, Kotak E preferred and ICICI iProtect.
Which is good in this list ? Or is there any other good term insurance.
When i took iTerm i found out that premium for 50 lacs was cheaper than 35-45 lacs.
Whether such anomaly (or incentive for taking higher insurance) exists now ?
Thanks for your advice
JP
You can opt for kotak e-preferred. Your overall risk will get shared amongst three companies and on the other side when you build wealth (MF’s or stocks) you can discontinue them one after another.
Keep checking insurance premiums that you are paying every 1-2 years as because of competition premium rate may fluctuate.
Make sure that nothing is hidden to the insurer while you buy the policy.
Let us know once the actions are done
all the best.
Thank you Nandish. I will take action and will let you know. I have also convinced 2 of my colleegues on term insurance and they will also be taking 75 lacs-1 crore each (i have told them to split into 2 companies with 50 lacs each) in next few days. I will inform once plans for 3 of us are taken.
Hi Nandish
I checked the premium for 50 lakhs for 25 years for me.
For Kotak e prefered, it is 10589
Aviva i-life, it is 7170
ICICI, it is 10313
LIC – 24500
There is huge difference between Aviva and Kotak (and even with others). diff is 30% +
Is there any major diff between Kotak and Aviva
Thanks
JP
Hi JP,
Good to see you are thinking of buying term plan & increasing your risk cover. While it doesn’t really make much of a difference between 1 plan V/s another on pricing front, i personally recommend choosing an insurance cover that covers all eventualities. And these days, if 1 stays in a metro, terrorism can be the one of the biggest accidents of lives which may result in final eventuality. And NOT all plans cover that. Prefer a term plan which covers that + the company has to have a good claim-desk. And a healthy settlement ratio. Put price as the last criteria when buying the cover.
Hope this helps.
–
Santosh Navlani | moneysights.com
Can you suggest what are those companies? Do they really exist?
Thank you Santhosh. I checked kotak e-preferred and exclusion is only for suicide and there is no mention about exclusion of terrorism. since it is not mentioned can i assume that terrorism will also be covered in policy.
Thanks
JP
Hi Santosh,
as regards to settlement ratio, only LIC is good as per IRDA annual report. most of the balance companies are new and hence might not have enough cases / sample for us to project / conclude on settlement ratio.
In one of the article on this Manish also talked about this and i also feel that if we declare properly, rejection of claims will be rare.
Thanks
JP
Hi JP,
i wouldn’t be knowing if Kotal e-preferred cover terrorism or not. You may want to CALL their helpline & CHECK.
On your 2nd point of claims – i’m of the SAME OPINION as Manish.
My point to you was don’t go for price-only as a decision-maker. We are taking term-plans in life to secure families when we will not be there. The last thing that should happen to families is running from pillar to post. i really don’t bother whether the company is private or LIC – i myself have term plan of only Private company (Birla). And i don’t intend to have LIC atleast for my next term plan when i take it. But having said that, i will take my time to be comfortable with company’s service, claim ratio before deciding to purchase the policy….price will be my last criteria, if at all.
Hope i have answered your query.
–
Santosh | moneysights.com
I am 30 year old . I was thinking long back about investing but little market knowledge and risk associated with it were pulling me back from taking action . But the action month may give me a much needed start .
I have 10 lakh to invest Mutual funds. Also I want to start SIP of approx 1 lakh per month in Mutual funds. Through my research on funds I finalized few funds as: HDFC Equity, HDFC midcap Opportunity, IDFC small and mid cap , HDFC Top 200 , DSP BR Top 100 .
What’s your view on these funds how should i go with investing lum sum as well as SIP in these funds? Shall I opt for STP for lum sum amount in current market scenario?
Prashant
all the funds you mentioned are aggresive . Are you alliged with that ? In recent downfall all these funds have lost close to 10-15% , and that is because of the high allocation .
I think its a time to not put your money in high equity funds , but max be with balanced funds or debt oriented funds . Once the markets outlook look better for long term , you can to the STP at that point of time to equityu funds .
Thats my personal opinion and considering that you can “time” a bit of market . What do you feel ?
Manish
Hey Manish,
Why do u say that he has to invest in balanced fund ? . Shouldnt he be buying equities now ? The Nifty’s relative P/E is just turning attractive (less than 1). I feel he should start SIP now and continue for years to come. Also why do you think HDFC Top 200 (Large and Mid cap) and DSP top 100 (Large cap) are aggressive funds? Let me know ur views.
Karthik
I mentioned that it was my personal opinion, I would do that , because I feel markets might go lower and I would like to be more sure of market direction before putting my money , I know market timing will not be of much help if I am putting it for 10-15 yrs, but I am mixing my trader attitude a bit in it
Manish
You are thinking on the right lines, according to me instead of one mid cap you can add a balanced fund (if you want). STP is always better option when lump sum is to be invested
Do let us know the actions you took
Manish & Nandish,
INvested 1 lakh out of lumsum 10 lakh in HDFC Equity(50k) and HDFC mid cap (50k) based on my research about 5 star funds on moneycontrol , valueresereach and your replys from above posts.Finally ACTION taken. Already 4 percent down ( Oo0ps) after purchase..But hoping will bounce back in long term horizon of more than 5 yrs. Will put around 30% if NIFTY falls to 4800. Whats your views?
Manish, you suggested for investing in balanced fund in current market condition. Which according to you I should go for?
Prashant
I hope your time frame is very long , dont feel bad if it has gone down by 4% , i know its a good decrease in few days , but you should have assumed that kind of risk before you invested . You can invest in Canara Robeco or HDFC Prudence as balanced funds , if you are not comfortable with very high risk .
Use STP instead of putting lumpsum ,.
Manish
Manish
Hi i have Reliance Infrastructure Fund – Retail Plan (G) brought on 2009. Now its value is 36 % down. What should i do with that ? shout i wait or sell it off?
The fund is thematic, dedicated to infrastructure sector.
The fund has returned negative 37 per cent in the past one year, which is extremely poor performance also negative return since inception is 14 %. The funds objective has not picked up as it was anticipated, india shine story of having huge infrastructure boom.
It is better if you exit and learn the lesson to choose the funds which have broader objective.
You can dedicate this fund for learning a lesson that it is important to track funds performance and put a cut off limit to it and not wait till it reaches 36% down.
Thanks for the info. I also have SBI magnum Tax Saver, Hdfc top 200, Dspblack rock microcap fund, HDFC midcap and reliance growth.
Hi Subhindra,
i would recommend that if SBI Magnum Tax Saver is out of lock-in, you may want to re-allocate to Fidelity Tax Advantage. Reliance Growth hasn’t been best of the performer…so you may consider another large-cap or a balanced fund to give some debt exposure to your portfolio. Birla Sun Life 95 or Reliance Regular Savings Balanced would be good choices. For a complete portfolio diagnosys or recommendation as per your risk profile, you may want to register on moneysights.com, enter your MF details & get access to actionable insights.
Hope this helps.
–
Santosh Navlani | moneysights.com
Do you have any other fund in your portfolio?
If no, then what Nandish has written is perfect.
If yes, you need to give those details as well for a more proper recommendation.
Hi Subhindra,
As you may be knowing that this fund is a sectoral fund & infra sector is in the dumps right now. Nobody wants to touch that sector with rising interest rates & slow pace of Govt. approvals. Having said that, if you bought this fund with an objective to stay invested for long time (3-5 years – even this is not long-term for infra sector, btw), then you may not want to take a hurried decision. However, if you were mis-sold this fund OR you weren’t not even aware what you were buying into, its surely time to EXIT. Lets analyze a bit further. The entire market is down. In this scenario, even blue-chip stocks have not been spared. If you are a long-term “passive” investor, you may want to shift all the money to a good diversified fund – HDFC Equity, Top 200 are good options. Look at it this way, when the tide turns (which may be in another 6-12 months), then diversified funds would be the best bet. Diverting money in any good diversified fund would help you recoup losses a lot quicker & also make compounded returns if you stay invested.
Also, please do remember, sectoral funds are not advisable at all if you don’t know much about the sector. They are bought to have a kicker in returns & are tactical (NOT strategic) to investing.
Hope this helps.
–
Santosh Navlani | moneysights.com
Hey Santosh,
Wat u think about my MF portfolio apart from Reliance Infrastructure Fund? Should i change my holdings or should i hold the same?
Sudhindra
Why do you think Infra sector will be a good bet in comign days . If you cant answer this , there is no reason why you should be with that funds.
Manish
Hey Manish,
I think now is the time to buy Infrastructure fund. Be greedy when everyone else is fearful. But this should be only is Sudhindra is fully invested in his Core portfolio and has some extra cash with which he can chase some returns (also absorb losses for next few years if required) . Rohits article on ” We all run TV without power” is an excellent example.
Kathik
I am not an expert on Sectoral funds , If you feel infra funds are good right now , please let us know the strong reason ?
Manish
Hey Manish,
Iam also not a big fan of sectorial fund. I believe if u invest in diversified fund, a good fund manager should be able to capitalize on any sectoral upside also.
My two cents on Infra structure funds
1. Sudindera felt Infra Structure funds were good in 2009 when he bought the fund. What has fundamentely changed for him to revise his decision now?. He had bought when the sector was in cynical high. If he sells now he will sell it when it is at rock bottom.
2. I beleive in India Growth story. Infra structure would be a crucial sector for the development of the country.
3. If companies like L&T,Voltamp e.t.c were good in 2009 (all Infra strcuture stocks) what makes them bad stocks now?.What has changed fundamentaly?
Kathik
They are not bad, they are just over rated and the expectations from investors is very high .. Also I am not that much sure of the fundamentals and hence was enquiring about the sector from Surindera
Manish
Just to add on the Infra Fund… No infra fund is a pure Infra Sector fund apart from the INFRA BEES ETF which follows the CNX Infra Index..
Having said that, I agree with Manish and Santosh and I would go for Diversified Funds.. I would let the Fund Manager decide which sector will do well in the future.
Happy Investing !
i like to ask for our health insurance as under:
i got two types of health insurance policies for my family members and me- spouse 31 yr,2 children 5 and 1 yr, parents 64 and 58 yrs and my self 34 yr:
1. family floater for rs.350000/- under Indian Bank’s ‘arogya raksha’ plan , which is a group health insurance (mediclaim) for its bank account holders fromUnited India Insurance Corporation. the TPA is MEDICARE
2.Individual Health Insurance 2 mediclaim policies(one in my name, other in father’s name) covering rs.50000/- each of us from the same United India Insurance Corporation, the TPA is E-Meditek Solution.
my query: as i understand , i have to inform both TPA in case of any hospitalisation , and raise claim to both the TPA. Informing both would not be a problem, but while raising claim how bills and receipts etc. are to be submitted? originals could be submitted to only one , so whom the originals be submitted? to other TPA , copies could be submitted , then are they required to be certified by any authority?
i have informed about our individual health insurance policies while taking Indian Bank ‘aogya raksha’ plan.our individual health insurance plans are more than 5 yrs and ‘arogya raksha’ is 3 yrs renewing and my total premium for both above @RS. 11000.
@Vibhav – Mediclaim policy operates under the prinicpal, INDEMNITY. That is, to make good the losses..Mediclaim simply re-imburse your expenses which you have incurred while the policyholder is hospitalized..And if the policyholder is having more than one policy, then the claim will be divided in the same ratio as the COVER amount between two companies..For eg, if you have cover of Rs 1 lakh from company X and cover of Rs 3 lakh from company Y – then your total bill amount will be equally distributed by both these companies in the ratio of 1:3. As you have said that you have informed the latest company that you already have an existing policy with some other company, then this new company will acccept the photocopies of the original bills, stamped by the older company..
Dhawal Sharma
URJA WEALTH CREATORS
I have invested in sbi smart ulip 10 yr plan premium paying term is 3 yrs and 2 premiums have alrady been paid.should i continue or surrender.
Mahesh do some homework. Read the above posts where people have asked about ulips, dont worry many are in the same boat.
one of the most powerful tool we all have is thinking. Sit in a room with a blank piece of paper and write down why you bought this policy and what you know about ULIPs as a product, why the fear has got in you of whether you should stop or continue.
For the first time read the policy document and apply some thinking. It is your money and you got to be on the drivers seat
Other important thing to check is whether your question that you have asked is complete or not. How would the panel know what type of ULIP it is I mean aggressive, balanced or conservative. Your questions determine the quality of financial life you live and you dont live.
Now set a commitment by so and so date i will study the policy , learn about it and make a choice to stop or continue.
Lets kill the casualness (if it is, dont mind dear i want to help you)
We all have casualness that is why we are on action month. Dont sleep till you dont solve the puzzle of your ULIP.
Thanks Nandish, i will read the policy first, TODAY.
Dear Nandish,
After reading the policy documents whatever ilittle i understood i think considering my age (i am 42) i should continue with the sbi smart ulip, considering the high initials fees charged. ( have already payed 200000 in two premiums, both me and wife 50000 each resp.)
I would rather pay the 3rd and last premium (100000) and wait till maturity period.
do you think i am right ??
i would like to know your view.
Mahesh
Then you should understand more on switching side and be ready to use the features . Do a proper comparision of 2 cases (with ulip and without Ulip) and see which one you want
Mansih
Dear Manish
Can u please elaborate on switching side.
Actually i did the policy for the sake of it as it was my wife’s uncle who sold it to us and you know how it is, my mistake though.
I was not aware of Jagoinvestor then.
Thanks to your wonderful platform i atleast know what mistakes i have done.
I have discussed this with my wife and she realises it too.
If you can suggest me any other investment option where i have a chance for better returns by next 8 yrs by stoping this Smart Ulip NOW, i am game for it.
NOTE:
ONLY ONE PREMIUM PAYING TERM IS LEFT OF 1 LAKH
2 LAKHS ALREADY PAYED.
Thanks in anticipation.
My other two important jobs for this ACTION MONTH is to take a term cover of atleast 75 lakhs from AEGON RELIGARE and make fully paid up all my endowment and money back policies.
Cheers!!
How about sharing about action month with a few people who can benefit. As a next step work on your environment(people around you) to have a great financial life.
The one thing you can learn from manish chauhan is his stand for his environment.
I have been doing this recently with people around me.
i have queries for procedure for informing and claiming , in case of health insurance (MEDICLAIM) under two policies:
i got two types of health insurance for my family:myself 34 yrs, spouse 31 yrs, 2 children 6 yr and 1 yr, parents 64 yrs and 58 yrs as under:
1. family floater covering all of us for rs. 350000/- under Indian Bank’s ‘AROGYA RAKSHA’ PLAN, basically a group insurance for its account holders by United India Insurance Corporation. the TPA is ‘Medicare’
2.individual health insurance policies(one in my name, other in father’s name) for all of us for rs. 50000/- for each of us from same United India Insurance Corporation but TPA is E- Meditek Solution.
As i understand, in case of hospitalisation , both TPA should be informed, and claim should be raised to both. informing both is not a problem, but raising claim requires your guidance. to whom originals- case papers, bills, receipts etc. should be sent ,and whether and by whom, copies are required to be attested . kindly advise
for your information ,individual health plans are more than 5yrs. renewing and ‘arogya raksha’ for 3 yrs renewing . total premium FOR ALL is @RS.11000/-
One suggestion for all of the readers of JAGOINVESTOR is to look out for other option for your FINANCIAL LEAKAGE through JUNK INSURANCE POLICIES, which is PAID UP option..Always a better option than SURRENDERING your policy, provided you have paid at least 3 premiums or as per the policy terms and conditions accordingly. Really astonished to see people here telling about buying a policy and then stopped paying premium after first installment..I dont know who the BRILLIANT seller was who convinced you take up the policy at the first place and then who the MORE INTELLIGENT GUY then who suddenly came to your life and enlightened you with such GYAN to stop the payment immediately..
Dear Friends, even if you believe that you have taken a wrong ENDOWMENT/MONEYBACK/TRADITIONAL policy, please also check the benefits of it being PAID UP rather than SURRENDER..And as for ULIP, please make a note that ULIP will give you benefit only if you are willing to stay put for at least 8 to 10 years because of its upfront charges (For ULIPs taken before 1st September, 2010) and new ULIPs, at least 5 years to break even..
Dhawal Sharma
URJA WEALTH CREATORS
i have 2 queries on health insurance:
1. if i like to discontinue critical illness benefit rider from my basic term insurance, can i do it? if so, what is the procedure?
2. will you please suggest a makeover of health insurance, as far as simple, for my family members and myself with limit of present budget of rs.20000/- premium. my family members’ age :self 34 yrs, spouse 31, children 6 and 1, parents 64 and 58, no smoker, no diabetics, no high pressure. running mediclaim policies as my query at no.125 above
Hello Vibhav,
1. You can discontinue Critical Illness Benefit rider from your basic term insurance in most products. You just need to inform the company/agent for the procedure, as it would depend on company to company.
2. You need to get in touch with a good insurance broker who deals with Health Insurance, who handpick and recommend you best mediclaim products suitable for your family. Why I recommend a broker, is because, in your case, in most probability, you may have to go for combination of 2/3 products across various Insurers so that you have the best coverage for your family, which only a broker can provide.
@mahavir chopra
ref. to your reply 2, you suggested a broker. normally local broker is dealing one company’s health insurance , and naturally lead the client for that particular company’s products, so i have written to your company for the guidance through your site. kindly do needful in the matter.
Dear Vibhav,
An Insurance Broker is 360 degrees different from a local agent. Read this article to understand difference between Insurance Broker and Insurance Agent. http://bit.ly/oqD9qg
@mahavir chopra
thank you for the article suggested. now kindly do needful for the inquiry to your company for my health insurance. i have already information of my existing health insurance policies. if more details required, i will provide.
thank you.
query on diversified equity mf investment:
my family diversified equity mf portfolio of @rs.19.49 L consists:
large & mid cap mf:hdfc top 200-9.63%, icici pru dynamic-5.74%, uti div. yield-11.23% (total 26.60%)
multicap mf:hdfc equity-19.01%, quantum long term equity-20.03%, templeton india equity income -9.97% (total-49.01%)
mid -small cap mf:bsl div yield-5.46%, icici pru discovery-3.73%, idfc premier equity-8.70%(total-17.89%)
grand total- 93.5%, other 6.5% corpus is in elss and other category funds .
my queries:my investments are for long term and nearest goal is 9-10 yrs. away. 1. if at all ,i decide to keep 1 or 2 mf from each of above category, please suggest our preference.
2.if i invest further as sip or lump-sum periodically depending on availability of long term fund, which funds are preferred in each category.
please note that i am not to induce any new fund.
Hi Vibhav,
All your funds are excellent “independent” choices. But if i were to look at it as a portfolio, i wouldn’t be surprised to discover more than significant “portfolio-overlap”. Further, while the thought is very analytical in picking & choosing best funds in all so-called categories & you may also be rightly sitting on good returns, but the same could have been achieved or can be achieved by limiting this duplication – managing 9 funds isn’t definitely easy. Why go for them then when the output is still the same?
To come to the your query for long-term SIP investments, it might make sense to keep only following schemes –
1. HDFC Equity
2. UTI Dividend Yield
3. IDFC Premier Equity
4. Birla Sun Life Dividend Yield
5. ICICI Prudential Dynamic Plan
This portfolio would give you an exposure to around 50% in large-caps, 30% in mid-caps, while the balance in debt & small cap stocks. i guess i have not added a new fund here, which you didn’t wanted
Hope this helps. Feel free to comment/ ask any more info you may want for your MF investments. Also, you may want to start tracking your portfolio on moneysights.
–
Santosh Navlani | moneysights.com
thank you very much for your detailed reply. in fact, i am not sitting on good return , as i shifted from direct equity investment from last two years , and this is not unchanged from the start. it is in this form after learning from friends like you (i should remember ‘ramesh’ and ‘jaghdees’) on jagoinvestor . you are correct about duplication, but now i have not to take more botheration except monitoring the portfolio, as i understand. regarding tracking, i found moneysights useful more, but it requires passwords etc. and i am bit hesitating. i like to keep it simple as possible. however i look again. thank you again!
Hi Vibhav,
moneysights doesn’t require password or anything. You just have to register & enter your details manually. And adding the details is the quickest & simplest amongst all portfolio tracking websites in the country!
We did had the auto-retrieval feature & lots of users loved it too. But the experience wasn’t consistent + we were not able to offer the analytics the way we do today. So, i would request you to try now….i’m sure you are going to find it highly useful from hereon.
–
Santosh Navlani | moneysights.com
Hi Manish and Nandish,
My father fell for the Highest NAV Guarantee trick and he took a ICICI Pinnacle 2 policy last November for 50,000 when it was launched. Now, I plan to surrender this having understood how these ULIPs work.
I would like to understand the implications of an early surrender in terms of policy charges and other charges which are levied.
Please suggest.
Thanks,
Praveen.
Hey Praveen I can understand that you really want to help your father with his hard earned money. We want all son to be like you, they have made us what we are and we should help them.
If you choose to discontinue it has some strong consequences:
1. You cant surrender the policy for the first five years.
2. If you stop policy will attract discontinuance charge in your case (4% lower of Annual premium or Fund value, subject to a maximum of Rs. 5000)
3. At the end of the fifth policy year, the discontinued policy fund value
shall be paid to your father.
4. The interest credited, during the discontinued period, is subject to a minimum 3.50% p.a.
4. Guaranteed NAV will not be applicable for premium discontinuance.
The agent and company has already partied with the first premium.
You have paid 6% as premium allocation charges and 0.25% per month as policy administration charges plus the commission that the agent must have enjoyed.
However you can divert the 4 premiums in a simple balanced fund or MIP (if your father wants a conservative approach) even PPF will give you a better return than the ULIP of ICICI.
You will have to sit with your father and share with him what is happening with his money and what are the options available.
Hope this helps you take some decision. Do share once you share with your father.
Also one request if you like the cause of Action Month than add one person from your life to it. Share his name and the action he is going to take with you.
All the best
This question is for Mprofit.org,
On buying the product, will I be able to install it on atleast 2 computers? as I will want to use this in free time at my office, but at the same time, I want this in my laptop at home also.
Rgds,
Harsha.
Thanks for encouraging MPROFITs participation on action month.
I got a reply from them over mail, that I will have to buy 2 licenses if I need such a facility.
Rgds,
Harsha.
To Investplus.in,
Your support link on your homepage does’n work.
I wanted to read up a little on things like FAQ, support etc, before deciding on buying the product.
My point is to get familarized with end-users problems, to know the short-comings before hand.
Rgds,
Harsha.
Dear Sir,
Our support link works perfactly we also Provide Video Tutorial , Our chat Support was closed for 2 days because of Official Holiday,
If you have any Query or Question you can Directly Contact to Our Helpdesk Number or Online chat Helpdesk
Thanks for your Concern
Mitul Dadhania | Invest Plus
THANKS MANISH,NANDISH,SRIKANTH AND THE WHOLE JAGOINVESTOR TEAM for this effort of opening the doors of financial education to beginners like us.
I have been reading this for almost a month and it has already made me to look at my financial condition and start planning.I have already called my LIC agent and started the process of a term insurance of 50L, the proposal amount is debited from my a/c today.I will get the policy document after 1/1.5 month as according to the agent it will be processed in the divisional office.I keep my fingers crossed as my gross salary is only 3.34L.The INTERESTING PART is I signed the policy application form on 16.08.11 and believe me or not just before coming to this page.So when I saw it was the 1st step I felt really happy.
I already have a mediclaim of 2L shall I increase it to 5L?
My next task is to get a fundsindia a/c,I am waiting for the forms to arrive;my printer broke(ok it can’t stop me right?).
I keep my emergency funds as bank FDs.Did another FD today to make it almost 6months of my present salary.I did it via netbanking so that I can break it as and when I need it.
At present I am looking for a good,diversified portfolio to get 30L in 2021 for a new flat and 2crore in 2039 for retirement.I would like to share my SIP selection here.
Large Cap :Franklin India Bluechip – Rs.3000/-
Large & Mid Cap:HDFC Top 200- Rs.3000/-
Mid & Small Cap:IDFC Premier Equity Plan A- Rs.2000/-
Multicap:DSPBR Equity- Rs.1000/-
Balanced- HDFC Prudence- Rs.1000/-
I can invest only 10000/- per month;I will increase the SIP amount when I get an increment.I am really concerned about inflation.
SRIKANTH, what do you think?Can I achieve my goals?Please suggest me the changes if you think I am wrong.
MANISH, what do you think?
Looking forward for your support,
Regards,
Trishit Ray
Trishit,
To achieve your goals, you would need to start saving about Rs. 20,000 a month. Your house goal in 10 years requires about 12K and the retirement goal another 8 K.
However, as you suggest, you can start with 10 K and enhance it as your savings improve. The key, in the spirit of the action month, is to get started.
Your portfolio looks fine. Please review it once a couple of years atleast and cast off the laggards.
Also, for your retirement, a better way to calculate how much you need is to specify what you think your monthly expenses would be in TODAY’s terms, make it annual, do a future value on it, and then try to get the corpus required for the annuity. I can do the calcuation for that, if you like if you tell me how much you think your post-retirement monthly expense would be in today’s terms (Assuming you live in your own house at that point, a reasonable estimate would be of the order of around Rs. 40-50K).
thanks,
Srikanth
Hello Srikanth,
Thanks for your reply.Both my goals are of today’s terms.Unfortunately, I can invest 10K/month only.I wish I had 20K as you suggested!But all of my investments will be for retirement goal after 2021 right?I will start with 10K now.
As for post retirement monthly expense 40-50K in today’s terms,as you suggested, should be a reasonable one.Anything more will be icing on the cake.Can you please calculate and comment on the retirement corpus?
Do you think I did a mistake by selecting two funds from the same AMC ?I have selected HDFC Top 200 & HDFC Prudence for having good record and the fund manager also has good reviews.I did read the invest strategy and as far as I understand(don’t expect depth of knowledge as of you) HDFC Top 200 is a good fund.But it is under-performing for the past few months.Do you think I should select any other fund from another AMC ?My choice is Fidelity Equity.Please give me your advice.
Regards,
Trishit Ray
Hello Trishit,
I will do your retirement calculation and get back to you tomorrow (Monday) with details.
As regards your scheme selection, don’t sweat about having two funds from HDFC. They have the best set of schemes (most popular, most AUM, best long-term performance in each category) in the country today, and as such having two funds from them is not bad. Having said that, Fidelity Equity is not a bad addition/replacement either.
At the end of the day, there are many good funds to choose from. The key, in this action month especially, is to stop shopping and start acting
Regards,
Srikanth
Hello Srikanth,
Still waiting for your response.
Regards,
Trishit
Trishit
Srikant will reply u in 2-3 days .. He called me and said that he is stuck into some thing and will get back to you
Manish
Trishit,
Sorry for the delayed reply – caught in a family emergency for the past couple of days…
Calc for you works out like this:
In today’s terms, you need 40K per month, or Rs. 4.8 lakhs per year.
In 28 years, the annual sum required (assuming a 8% inflation) would be 41.4 lakhs. To generate that annuity for 20 subsequent years (@8% annuity rate), you would need a corpus of Rs. 4.4 crores.
To save for such a corpus, you would need to do an SIP of Rs. 15,000 (approx) per month (assuming a 13% long-term return CAGR).
thanks,
Srikanth
Srikanth,
Thanks for replying even in a family emergency.Hope you overcome the situation well.I don’t think less of you for your delayed response.
I won’t ask you anything now.Once your situation returns to normalcy I would then discuss.
All the best.
Trishit
Trishit
Just to add to Srikanth Comment , the 15,000 per month SIP which Srikanth mentions is assuming that you will keep it constant for all 28 yrs . this generally becomes a blocking for a lot of people because a lot of time people want to start with less and then increase it each year as their income increases .
If you are able to invest 15,000 per month , well and good . But if that is a big amount for you to take out each month , then consider these values ..
You can achieve the same thing by doing a SIP of 10,000 (Approx) and increase it each year by 6% .
OR
You can achieve the same thing by doing a SIP of 7,000 per month (Approx) and increase it each year by 10% .
Manish
Manish,
Thanks.Right now I can invest 10K/month only and definitely do it.I will increase the amount as and when I get an increment.
Regards,
Trishit
Trishit
Good .. go ahead
Manish
Srikant Sir,
You have assumed 8 % return for Calculating. Sir as India Develops i Feel rate of return will come down, Interest Rate which was around 10-12 % few years back came down..PPF had rate of return of 12 % in past but now it is 8.5 %. I think we should consider 5 % approx as rate of Return Max.
Request you Views.
Hello Kamaljit,
I have actually assumed a 13% long term return over the next 28 years. The rates you are citing are all debt investment returns (PPF and interest rates). The equity markets in India have returned much higher than 13% in the past 10-15 years, and the consensus belief is that a long term average 12-15% is sustainable for a growing economy such as ours.
thanks,
Srikanth
FundsIndia.com
Just to correct you… PPF rate is 8% and not 8.5%.
There is a recommendation to increase it to 8.2%, but it has not happened yet.
–Anand
Trishit,
With Medical Inflation at around 20% in India, mediclaim of Rs. 2 Lakhs is just too small for long term financial planning. As mentioned in another comment, you should go for the maximum cover you can reasonably afford. A Rs. 10 Lakhs floater cover should be OK for a 20 year planning.
Hello Mahavir,
Thanks for your reply.
I was thinking for 5 L but it seems I need 10L of mediclaim.What is floater cover?I have an individual policy do you mean family floter cover?
I have a United India mediclaim policy.Can you suggest me any good insurance company or policy? I mean good in terms of settlement.
Regards,
Trishit
Yes, floater cover means a Family Floater cover.
For any recommendation, we would require you to provide details of Date of Birth, Health History and Existing Condition for each member.
In case you want Medimanage to help, you can provide your details here: http://www.medimanage.com/inquiry.aspx
I happened to ask some questions to FundsIndia.com over mail and so I want to share this with readers here for everyones benefit:
(Please be informed I am a NEWBIE to MF world, so you might already be aware of most of this information).
Me:
I have some basic questions on MF investment.
Would be great help if you could please tell me:
1. If I open a SIP for a MF, what happens if I default on a particular month?
2. What happens if one defaults on the 8th month, again on 14th month?
3. How long is the comitment when one gets into SIP? is it indefinite? or one year? etc
4. If I start an SIP for 2k every month, but after 3 months I had a salary hike, and I can pay 2k more? is it possible to increase the SIP amt in between?
Reply from FundsIndia:
Defaults – if you default for two months in a row, the SIP will get suspended. Otherwise, it will resume after the month of default.
Commitment – we can also do short-term SIPs like six month SIP, but we recommend atleast one year for effective results.
If you use our Flexi SIP product with a regular amount of Rs. 2000 and a maximum amount of, say, Rs. 5000, you can alter the amount on a monthly basis.
Me:
Please point me to a link where fees/charges of your company is listed for your client to get into MFs.
Reply from FundsIndia:
There is no such page in our site.
Because, all our MF services are fully free of charges.
Me:
Now I want to ask you a dumb question!
What happens if FundsIndia chooses not to do MF anymore, or to stop MF business because they started thriving in some other business?
what happens to all the money that the investors have put in? what happens to all the SIPs that we might have opened etc?
Reply from FundsIndia:
In such an unforeseen situation, all your investments will be safe. All the investments are made in your name and the mutual fund company will have all your folios intact. The SIPs might get terminated, and you might have to restart them if that happens. But no money will get “lost”.
Rgds,
Harsha.
Harsha you have no plans of investing through fundsindia why not invest your energy which into something which will actually make a difference in your finances.
Hi Nandish,
You are right, I already have a ICICIDIRECT a/c, but I found that ICICIDIRECT is not a free vehicle for MFs, whereas FundsIndia is.
Atleast for that reason I want to do my MFs through FundsIndia.
I have filled the docs and couriered it to their address, need to wait and see how many days it will take for my a/c to be activated for me to do my SIPs. (I have the KYC already).
Slowly, I will come out clear of ICICIDIRECT, they are really an expensive way to be in the market.
Rgds,
Harsha.
I got that harsha thanks for being clear on the platform that you want to choose for your investments. Your participation is inspiring
When you get high on action you become a wealth magnet
The act of taking action, is in and of itself, a magnet for opportunity and wealth. Keep it up
Hi JI
“dont stare up the steps, step up the stairs”: phenomenal
“dont show me your needs but show me your seeds”: extraordinary
Great initiative for a financial literate India. I feel that Indians have to be either threatened or incentivised to act. and u hit the nail direct on the head. Great job.
For me the action has been taking place since september 2009 since i first logged on to JI. That day I was cursing myself for not knowing about JI before. Well its been almost two years of association with JI and these two years have been action years for me. First I made emergency funds, then took term plans for me and wife and surrendered my old policies and started MF investments (SIPs) through agents and then fundsindia. I can proudly say that my finances are in lot better condition than before. I am waiting for my ULIP to complete 5 years to be surrendered (jan 2012) and some komal jeevan policies to be made paid up or surrendered, which i intend to do this month.
One aspect I have not been able is to finalise the health insurance for my family. this is the field where i wish to do some research before finalising. what i have in mind is either metlife or United india with a supertop up. My action during this month would be start the research on the health insurance aspect.
Hope this effort of yours brings some changes in much of the people and much changes in some of the people.
Regards
dr kishan
Dr Krishna by when you will end your research and buy health insurance. Go for united as the policy is clear and simple one. From sep we will have medical insurance portability so it will benefit investors
Super top-up is a very good option but more players need to join it. May be next year will be the right time for buying super top-up, as of now companies like united and star health are offering super top-up with a condition of deductible.
Let us know whom did you join to action month and what difference did you made in your environment.
Thanks for writing two empowering quotes as the soil asksthe farmer dont show me your needs show me the seeds we say the same show me the deadline.
Hello Dr. Kishan,
Great to hear from you.
Health Insurance products are complex and have multiple dynamics in the product, process, claims, continuity etc. I agree with you that you should do proper research before buying the product. At the same time you also need to know what aspects you need to take care, and give weightage to, and which to ignore. I would recommend you to spend time and find a good experience health insurance advisor first, who would be able to explain you various dynamics, and HELP YOU RESEARCH, the most suitable product for your family. Such services are available on the internet, over email/phone.
Hi Manish / Nandish,
I am in a process of taking a pure term plan of 50 lacs online. I already have a term plan of 25 lacs from lic. When i was going through the premium, I found premiums in the range of 7000 for me (age 30 yrs). Only Aviva is offering it in the range of 5000. Is there anything to do with the terms and conditions or other factors in case of aviva, as there is a good difference as compared to other companies.
I am confused between icici, aviva and indiafirst.
Regards,
Hitesh
Go for ICICI online term plan than comes aviva and than indiafirst if i have to rank them to help you pick one.
Set a deadline a clear date by when you will have the policy in your hands.
Nandish,
What is your criteria to rate these companies and why did you prefer ICICI? Based on feedback from many members including mine, the customer service of icici was pathetic, that’s the reason i cancelled my policy.
Rakesh
Rakesh
Its mostly the number of years in operations and then the reach overall … nothing wrong about Aviva as such .. But you dont have too much history about them ..
Manish
I took a policy from Aviva just yesterday and am satisfied by their customer service till now. Aviva’s policies are lot cheaper than other policies. And as far as the history goes, Aviva is a 300 year old company and any multinational which wants to establish in a market like India will do everything to prove itself.
And thanks for starting this. I was postponing this for a year.
Manish,
My first action item it taking term plan
Mayur
Good to hear that you got Aviva finally
. Congrats .. are other area’s complete ?
Manish
Hi Manish/Nandish,
I am 26 yrs old. I have a query here regarding Bharti AXA life Elite Secure Term plan.
The sum assured is 30L and term is 25 yrs. I am paying 5400 for its premium.
While taking this policy, the company employee told me that as I am quite young, There is no need to have a medical test.
My question is, is there any harm of not having the medical test done during inception of the policy? And How is this policy?
Should I switch to any other online term plan(ICICI pru,Kotak) next year?
Pls advise.
You may continue with the same term plan as of now it is a good one.
When i coach people I always tell them to be a responsible citizen the moment you step out of your house. As companies dont settle claims where there is a breach of law. (eg you cross railway platform to save time)
Insurance is a legal contract if you are authentic while buying it the company has to pay you incase something wrong happens.
Dont worry about medical testing thing at a young age medicals are not compulsory if something gets detected than communicate to the company in future
all the best add one more person to action month ( We can ask this much from you)
Hello Manish,
Thanks for the information.
I want to get rid of one money back policy and Pension plan from LIC. my policy is from other city branch, how to surrender the policy and get the money? Do i need to visit the same branch for this?
Regards.
Senthil
Senthil
Go to the LIC office in your city , mostly there is no need to visit the same office from where you bought your policy . Ask your agent, where is he ?
Manish
I have been a reader of JagoInvestor for the last 1yr. As part of Action Filled Month, I plan to take a look at my past investments and make fresh decisions on my future plan/ goals.
Term Insurance:
Iam 26yrs old and my monthly expenditure is 25k. My company provides Life Insurance of 30Lac ( accident, life and disabilty ). I think this cover is good for me. Should I plan for an extra term insurance now?
Since its good have our own insurance as we might be out of company / job ( retirement ). I plan to take one term insurance after 5years. What would you suggest ?
Health plan
My company also provides Mediclaim policy with adequate cover for me and my family. Do you think there is a need to take additional Health plan.
ULIP Plan:
I have bought Bajaj Allilanz New life ULIP Plan 5 yrs back. I paid 15,000 premium for three years and then stopped it ( mandatory 3yr premiums). Sum assured is 75,000. Present value is 55,000. Should I surrender this policy ? If I surrender this policy where should I invest to get better returns?
Dear Jain,
You do not own or control the health insurance provided by your organization. It is a big blunder in financial planning to depend on such a cover.
We deal with pretty large no. of corporates of all sizes, and we see new restrictions in claims every year in corporate mediclaim, which include co-pays, sub-limits on surgeries etc. Check out this article on ET: http://bit.ly/ojmwzE.
Unfortunately, for most its only matter of one claim, for an individual to realize how important it is to have your own Mediclaim.
Manish,
I already had two claims in the last two years for my parents and there was no issue. I have checked with my colleagues and they also said we dont have such clauses and our policy is very broad. Infact there are no sublimits on room rent/surgeries in the policy by my company. I think the policy is very comprehensive.
I agree with you that I dont have control over the policy and in the long run I should have my own policy which is why I have planned to take policy after 5yrs.
Kunal
Kunal
Mahavir is talking about whats going to happen in next few months or max 1 yr .. May be after a year you may realise what is he saying .
Manish
Ya I too would recommend to take standalone policies without depending upon the company you work for.. Rules can change overnight in a company and you wont be having any control over them..
Sunnydoc
I have decided to surrender my ULIP policy and go for better MFs.
My investments in MFs
SBI Magnum Taxgain 65k
Sundaram BNP paribas Tax saver 55k
BSL Tax relief 10k
HDFC Tax saver 60k
I have decided to exit the BSL Tax relief and SBI magnum which are out of lock-in period. I want to retain HDFC Tax saver as it is ranked best among its peers.
I want to start SIP and start investing in MFs. Can you please advice me which MF should I invest. I have done all my MF investments through agents and want to start online purchase from now. Suggest any ideas to buy and manage?
Is it worth having debt portfolio in my account if my paying housing loan?
Jain
You are on right path as far as ELSS is concerned . For non-ELSS funds , there are many options for you like DSPBR top 100 , Franklin India Prima Plus and HDFC top Equity .. Go for online mode .. its the future thing !
I didnt get your point about Housing loan thing , can you make it simpler while asking ?
manish
I have a Housing Loan and Iam paying EMI with 11% interest rate. Is it worth to have Debt oriented MF with ( less returns) in my portfolio or else should I use that money to rather payback the loan.
Thanks,
Kunal
Jain
Better to pre pay the loan ..
Manish
Santosh,
I want to organize all my MFs into one account. I have checked the moneysights and UI is too good and also the analysis. Just want to know does moneysights allow online purchase of MFs?
What all other services are provided by this website.
Jain
Hi Jian,
Thanks for trying moneysights…glad that you liked us. Yes, we are in the process of launching online transactions for Mutual Funds. It should go live in mid-September.
All the services that we offer are only made available thru website…so whatever you see is all what we provide. If you haven’t checked us out completely, we do offer “Discovery of Fundamentally sound & under-valued stocks”, “Planning & evaluation of Mutual Funds” & “Portfolio Management of Stocks & Mutual Funds” – this all is live. The online transactions for Mutual Funds as i mentioned above is work-in-progress.
Would love to have you as a user of moneysights!
Thanks!
–
Santosh Navlani | moneysights.com
Dear Sir,
As part of Action Month, i intend to buy Term Insurance which is pending from last few months.
The reason i didnt buy it till today is because i dont have understanding and like many confused on which company to choose…I term though cheapers..their reviews are not good….Basically i couldnt decide on Company…Please guide on Term Plan and what Exclusions and Inclusions are Important…I can invest around 3-4K, current age is 24 . Term Plan=40Lakh would be more than enough at present.
Regards,
Kamaljit Ridlon
Kamaljit
You can think about Kotak in that case , they look better than others in experience for now
Manish
Hi Manish,
Good initiative in coming up with Action Month. I did register and got the kit. I had decided to get a term plan from SBI (Smart Shield). I did get the application form and had it filled already and am about to submit the same. The only open I have is to whether to go with the riders with this policy or get a separate Accidental policy. I would like to get a cover for Temporary disability as well (which is not covered in SBI Smart Shield – as it covers only permanent disability and also the illness cover is specific to few list of ailments).
Can you recommend a list of accidental term policies that cover the above? Does the accidental term plans cover critical illness as well? Also, what is your opinion of getting a separate coverage via accidental term plans instead of taking riders?
Thanks,
Prasanth
Prasanth,
You need to go for a Comprehensive Personal Accident cover, which provides covers for Accidental Death, and all kinds of disabilities including Temporary ones. Premiums are as low as Rs. 150 per lakh. Tata AIG General, Apollo and Bajaj Allianz General have some really good plans.
Mahavir Chopra | http://www.Medimanage.com
Hi Mahavir,
Thank you for the inputs. Based on my analysis last couple of days, it looks like the comprehensive personal accident cover provides the coverage for accidental disability (other than coverage for life lost due to accident). For critical illness, I will need to go for a medical insurance. I noticed some of them offer critical illness cover in a separte policy as well.
I noticed that the Critical illness rider (that comes along with SBI Smart Shield) seems to be a good one as well, as it covers around 13 critical illnesses. Even some of the dedicated critical illness coverage policies (ex: Bajaj Allianz) dont cover that many illnesses.
So, I’ll most likely go with the SBI Smart Shield without any riders. Go for a comprehensive personal accident cover (as SBI Smart shield doesn’t cover partial disability).
Thanks,
Prasanth
Mahavir,
Even i am looking for personal accident cover, your website caters for health insurance only. Could not find any information on personal accident cover.
Rakesh
Hello Rakesh,
We don’t have Personal Accident online as of now. You can write to us at – email [at] medimanage [dot] com, and we will have this serviced for you.
Hi,
I have started SIP before three months with 1000 rs each in
1) HDFC equity -G
2) DSP BR Top 100 – G
3) IDFC small & mid cap equity- G
Could you please let me know if there is need for any additions to the portfolio. I have started SIP just to give action and i have not yet defined goals as such.I have to do that and is part of this action month.
Thanks,
Venkat
Venkat
All of these are good funds … keep continuing .. just make sure you are mentally prepared with the volatility as all of them are pure equityu funds and you know what the situation in markets as of now.. have a long term view ..
Its not neccessary to link each investments with goals. you can just see them under a goal “wealth creation” .. thats all
Manish
Thanks manish for your comments..yes i am aware of the risk and have a long term view.
Then Chill
Dear Sir,
I enrolled in your action Month and wanted to organise my financial transections.
As per your recommendation I downloaded Invest Plus Family Edition. I sent 3 emails so far to Invest plus on their email Id [email protected] giving them the machine no. and other details and requested for Registration Key, but I have not received any replay yet. This is a big obstacle at the very beginning and I can’t proceed. Please help.
Shashikant
let me send a mail to them on this ..
Manish
Dear Sir,
Because of Action Month and Free Edition Of Invest Plus Software We are receiving More then 200+ request Every day for Family Edition Last Sunday and Monday Is Official Holiday, this is maybe the reason of delaying Licensing Process but We want to Make it Sure that everyone will receive License with 1-2 day from request.
Thanks for your Concern
Mitul Dadhania | Invest Plus
Shashikant
Hope you Recived your Family Edition Free license and Started Enjoying Invest Plus
Mitul Dadhania | investplus.in
sir.
i have some queries plz sugest me.
(1) i m 35 y old govt employ.my wife is 28 y house wife & a baby 3 y old.i have lic jeevan shree-l policy sum 500000=00 from 2009 ,premium is 25690=00 yearly, term 25y, 2 premium had been paid,now i want surrender it. it is right?
(2) i have lic money back policy sum 50000=00,premium 3263=00 yearly, term 20y, i want to continue it.it is right ?
(3) i have sbi ulip cover 250000=00, premium 50000=00 yearly, term 10y, 2 premium had been paid.third premium will be paid in september.after third premium i want to dicontinue premium to pay but cover will be continueup to matuarity. it is right?
(4) i want term plan sum 5000000=00.my city is not listed so i can not buy it online.it should be taken though agent ?
(5) i want medical insurance cover 300000=00. but i have a heart attack 6 month ago so no company is interested to give me medical insurence.what should i do ?
plzzzz answer me.
thanks
Rakesh,
Yes, it is difficult for you (almost impossible) to get a cover. Did you go through a Surgery? Please provide details to analyze further. You can otherwise approach a good Mediclaim Advisor.
Hope you have learnt a lesson and covered the rest of your family? If not, please do that NOW! This way you can still take part in the Action Month!
Rakesh
1) Surrender it
2) I dont approve it , why do you want to continue it ? Reasons ?
3) Its your half baked knowledge about the product , there will be charges which will continue for 10 yrs , which will eat up your units .. its not advisable , you can stop the premiums now also and take money after lock in period
4) Yes, online term plans are not in all cities , but dont make it as a point of not being in action , take offline term plan if thats the case .. you can see kotek preffered as on options , it has low premiums ..
5) Agree with what Mahavir sugggested, you go with medimanage.com , they will help you fully .
Manish
Hello MANISH,
I have already applied for LIC Amulya Jeevan of 50 L for 30years and money has been debited from my bank a/c .My annual income is only 3.34 L.I am keeeping my fingers crossed.My agent told me it may take 1.5/2 months to get the policy document as it will be processed at the divisional office.
Do you think LIC will turn down my policy application for low income?My agent told me that I might get the policy.He was reluctant to do a term policy at first though.What do you think?
I have a Jeevan Ananda of S.A. 10L from 2007 and it will mature in 2035.I pay an annual premium of 34756/-.It is an endowment+whole life plan.It has served as 80c deduction.I took it before coming to JI.After reading your articles I thought of checking the returns I am getting.I log in to lic portal and found the accured bonus is 180000/-.Then I did a few calculations:
Total Premium paid:34756/-x5=173780/-
Accured Bonus:180000/-
Total Value:173780/-+180000/-=353780/-
I know this is not maturity value and I will get much less if I close the policy.But for logic’s sake lets assume it is the maturity value.I did the IRR calculation as you mentioned in another article and video.It gave 24.72%.Did I do anything wrong?
There is not any exact maturity value written in the policy document.So I cannot calculate how much return it is earning me.Do you think LIC is giving wrong data on bonus so less people stop their policies and will decrease it as the policy reaches its maturity?
I read somewhere the claim settlement is fast for small S.A. and if one has 2 policies and 1 is settled it will increase the chance and speed of the settlement of the other policy.If a policy earns a decent return in addition to tax relief should I not continue it along with the term plan?
I expect your reply to all the questions I raised.Sorry for the lengthy post.
Regards,
Trishit Ray
Trishit
Let me answer one by one ../
I dont think your policy will be rejected , but 50 lacs is a good enough amount in your case . It amount is debited , it will be given to you .
Coming to your Jeevan Anand policy , not sure what you did .. First you should understand what will be the IRR of the policy if you continue it for all the years .. in that case lets say your premium is 34756 per year .. and say your Bonus will accumulate to 10 lacs in total at the end , so you will get 10 lacs + 10 lacs = 20 lacs on maturity .
this means following case
01/Jan/2007 34756 Paid
01/Jan/2008 34756 Paid
01/Jan/2009 34756 Paid
01/Jan/2010 34756 Paid
01/Jan/2011 34756 Paid
01/Jan/2012 34756 Paid
01/Jan/2013 34756 Paid
01/Jan/2014 34756 Paid
01/Jan/2015 34756 Paid
01/Jan/2016 34756 Paid
01/Jan/2017 34756 Paid
01/Jan/2018 34756 Paid
01/Jan/2019 34756 Paid
01/Jan/2020 34756 Paid
01/Jan/2021 34756 Paid
01/Jan/2022 34756 Paid
01/Jan/2023 34756 Paid
01/Jan/2024 34756 Paid
01/Jan/2025 34756 Paid
01/Jan/2026 34756 Paid
01/Jan/2027 34756 Paid
01/Jan/2028 34756 Paid
01/Jan/2029 34756 Paid
01/Jan/2030 34756 Paid
01/Jan/2031 34756 Paid
01/Jan/2032 34756 Paid
01/Jan/2033 34756 Paid
01/Jan/2034 34756 Paid
01/Jan/2035 1965244 Recieved
This is IRR of 4.51% .
Now find out what is the IRR at the moment . What is the return you have got till now .. The problem is that you made mistake of assuming that your accrued bonus is 180000/- at the moment .. accrued bonus is considering 2035 , and not right now ..
What ever “Total” you get is only for future and not TODAY . So if you surrender the policy today … you will not get much ..
Forget 1st year premium .. all you will get is 40% of total payments till date + Lower accrured bonus in todays value .. so 40% of 4* 34756
= 56k
+ say some accrued bonus , I dont think it wouldbe more than 10-20k .. in what ever condition you will not get more than 1 lac . which means a negative IRR of MINUS 30% .
Are you clear now … ?
Manish
Manish,
Your calculations are correct as long as you assume 10L as bonus at the time of maturity.There is no way we can calculate what will be the bonus at the time of maturity(or is there any?). As far as I know LIC declares bonus every year.Having said that I don’t expect it to give 25% return.Neither did I mean that I would get 180000/- if I close the policy.Please read my post again.All I said was that since I can not calculate the return at the time of maturity let us take last 5 years and the bonus and calculate the IRR.It will give 24.72%.
You said the ‘Total’ is for future.Right.I am aware of that.It would give me peanuts if I close the policy today.You were silent about the last part of my post where I said about claim settlement of smaller S.A. and the process in case of 2 policies.If I am wrong about them please let me know.I think a fast 10L along with 50L after few more months will not be a bad idea.
Jeevan Ananda is not only an endowment policy.It has double accident benefit and disability benefit.Even after maturity if I die for any reason say, of old age it will again pay the S.A.Though 10 L then can only be enough for last rites!But jokes apart it has some advantages over a traditional endowment plan.
Shall we absolutely don’t consider it’s tax benefit even at a time of abolition of ELSS after DTC?
I am not using the above reasons as lame excuses to hold on to the plan.You may say closing the policy and investing in mfs will give me better results and for insurance there is term plan.But is it necessary?Even mf investments are not risk free and of course taxable.
I have plans to start investing in mfs in this action month and mentioned in other posts here.
Manish do you still believe I should close or make Jeevan Ananda paid up and not continue it along with term plan?
Regards,
Trishit
Trishit
Ok .. Lets look at it in a different way ..
you got 1.8 lacs accrued in 5 yrs, so in 28 yrs, you might be 1.8 lacs * 28/5 = approx 10 lacs accrued bonus .. this is just an approximation , it can be 5 lacs or 15 lacs .. but the final IRR wont deviate much ..
Regarding closing of Jeevan Anand , you just need to see two scenarios
1. If you continue it and keep paying ..
2. If you discontinue and divert the payments at some other place ..
All you need to see if which option looks better .. Rather than asking why you should discontinue this policy, a good question to ask would be to ask why you want to continue and give a storng reason , is that the best you can do ?
Regarding the claim settlement of policies , it does not matter how many policies you have . Each claim is different .. LIC has maximum policies as small ticket and over a long term , they make good profits and settleing small claims is not a big thing and unprofitable ..
Assume 1 million people paying premiums till date , and then 5% out of them getting the claims … which are all small size ..
Anyways they charge mortality rate so insurance part is taken care ..
I hope i have answered you , if not, ask specific questions point wise4
Manish
Hello Manish,
Thanks for your reply.Here are the questions-
1.”Shall we absolutely don’t consider it’s tax benefit even at a time of abolition of ELSS after DTC?”It has given me tax relief of 10.3% and with the increase of income there is every chance of the % increasing.
2.What are other methods of tax saving without ELSS,which is about to vanish;NSC which is partly taxable;PPF;tax free bank fd which is partly taxable;home loans which should not be advisable;infrustucture bonds which has own limits?I am already investing 70000/- per year in PPF.
3.I know insurance is not for investment but do you think the actual return would be the same if you consider the tax reliefs?The maturity value(how petty it may be) itself is tax-free.
“Anyways they charge mortality rate so insurance part is taken care ..” good to see you acknowledge that.
See I think insurance coverage of various types with tax releif and some income along with a term insurance and investments in mfs is not a bad scenario.
Of course you may correct me with your strong reasons.Please do.
Regards,
Trishit
Trishit
1) Tax saving should happen later , first it should be a good product in your financial life. Whats the point of saving few thousands in tax and loosing 5 times more than what you save to “opportunity cost” . Over a long term , it would not help you .. all you are getting is Instant gratification of “Saving tax” , its impact on your financial life is not substantial to consider . And anywyas you can divert that same money to something like like Term plan + PPF , which will also give you tax benefit .
2) I am not sure how clear I am , but you seem to be obsessed with Tax saving , dont look at products from this point at all .. Its like choosing a partner only and only “Looks” . Its the same situation you are in with your investments . Tax savings is secondary and you have an option to NOT CHOOSE that option , I know its very uncommon , but thats what you should be .
3) No , We always compare things considering its taxation , Equity was also till now tax free .. Term insurance money also does not attract tax .
Other than these points ,think from simplyuing your financial life also ..
Now tell me if you are convinced or not ? And tel me what are your action times as next thing ? And when will you complete it ?
Manish
Hi Trishit,
i completely second Manish on this point. i recall reading his post about the “papa kehten hain…” problem. i think he should write 1 more post on people’s obsession with tax-saving as well. maybe the title can be “tax bachtaa hai…” problem
. No offences made but i firmly believe that most of us in India suffer because of this habit which actually doesn’t deliver as we perceive it to be. Think of it – to save apprx. Rs. 30,000 in taxes, don’t we commit serious mistakes – buying policies, putting money in low-return FDs, even investing/buying an apartment to save tax when 1 is not sure about where his career is going to be headed in a early stage!
This is unfair & criminal on ourselves, when most of these instruments deliver an IRR of not more than 7-8%! With similar lock-in & no-expert advisory planning, one can definitely achieve higher. Much higher. i would be surprised to someone doesn’t beat FD returns by a wide-margin thru a ELSS + PPF combo. Thats what is needed. At moneysights, specifically to address this, we had written a post here – . This may be useful to read till Manish writes his version on the title i suggested.
My 2 cents.
–
Santosh Navlani | moneysights.com
Manish,
I was just giving the reasons to retain the policy thus I mentioned the tax relief and the different types of coverage it offers.I mentioned tax relief on maturity value not to compare it with term insurance(I have already applied for it) but as an added benefit.
But when you say about “opportunity cost” I agree with you.What if we look at it as a debt instrument (with insurance) and of course taxless(EEE)?Is there any alternative?I already have PPF.
If I plan to get 1L deduction benefit along with mf investments what’s wrong in that?Shall I be then termed as tax obsessive?
Do you suggest I stop Jeevan Anand,invest in mfs and pay tax on the balance amount?
I have already paid 5 premiums if I stop the premiums from next year will it automatically become ‘paid up’ or I have to contact LIC ?
My next action is to start SIPs.I want to start right now but can’t.Opened a new a/c in ICICI and they told me it will activate in a week.As it is a new a/c my name is not printed on it so I have to request for a personalized cheque book and a monthly statement which they say will be available in the 1st week of the month, anyway 1 more week.Only then I can send the forms to Srikanth, it will take 1 more week to reach.They have to do KYC for me, take another week.So I suppose I can start the SIPs by the 15th of the next month.You know I feel helpless for the delay but can’t help.I am utilizing the time by educating myself.Your help & support is appreciated.
Regards,
Trishit
Trishit
As far as Tax saving is not your primary reason to invest , saving tax is good
. You dont need to inform LIC for making a policy paid up , when you stop the premiums , it automatically becomes PAID UP .
Manish
Hi Manish,
On the amount debit part, I don’t think it is guaranteed. When I enrolled 3 years back, I paid by cash, immediately after doing the medical check-up.
I was told that my policy will get approved. But, they also informed that in case of rejection for any reason, the amount will be refunded through cheque.
Vishnu
ohh ok . I was not sure if that is guaranteed
. thanks for the updates
Manish
One thing I wanted to mention here, little off-topic, but might provide useful to others.
When I enrolled for LIC Term Policy, in the Enrollment form, I had said “No” in the section for “previous surgeries”. But, I had 2 minor surgeries at the age of 4 and 15 respectively. One surgery I did not remember. The second one, the agent told “It is just tonsillitis, put NO”. I did the same..
But, I was often getting in back of my mind whether claim from my dependents, later, will get rejected because of this. When I asked about the agent, he was convincing me by all the reasons that I am worried for NO reason. It is incorrect to go now and delcare, and it will bring only problems.
Somehow, I managed to write an email to the LIC customer care and zonal officers. Within 15 days, I got a proper reply from them saying that “these instances of surgeries are added to my policy proposal docs” and these minor surgeries does not have any impact on my policy and can continue as it is. Also, the agent got some warning about these not being taken care by him, and I had to contact customer care.
1. DECLARE EVERYTHING in any INSURANCE
2. If u missed in the past like me, COMMUNICATE NOW.
Vishnu
Thanks for communicating it with all of us . really appreciate it
Manish
Dear Sir,
I have invested 100000 rs through MIP-STP in HDFC TOP200, 100000 IN HDFC PRUDENCE (G) throughMIP- STP, 75000 in ICICI DYNAMIC growth & 75000 in RELIANCE EQUITY OPPORTUNITY growth through MIP- STP.
IS IT A GOOD CRITERIA? My money will be invested weekly.
Anand
If you have a long term outlook , then its good .. Do you understand the funds like ICICI DYNAMIC growth & RELIANCE EQUITY OPPORTUNITY ?
sir,
it is done angiography & find that 20% blokage in one orterige so there is no requred surgery (ie angioplasty etc). it is advise to take 6 tablets per day & avoid mental tension & physical stress.
thanks
Hello Rakesh,
Angiography is only an investigation. So there is no surgery required. If you want, we can try a mediclaim policy for you in a couple of companies, if you can provide all papers. You can write to email [at] medimanage [dot] com.
Regards,
Mahavir Chopra | http://www.medimanage.com
Rakesh
What is your question ?
Manish
Hello,
Is there a Health Insurance plan that covers maternity from first year itself?
Thanks and Regards
Shiv
Shiv
I dont think so .. and it cant happen .. Ask yourself if its possible truely ?
If there was , You can always take the benefit and pay pennies in premiums and from next year just discontinue the policy. Its no way possible for companies to make any policy like that ..
Manish
Mostly, u will have waiting period of 4-6 years I think.
Usually such benefits will be available only under Employer covered health plan. At least in my case, previous and current employer have had waiting period of 6 months to 1 year for maternity expenses.
I am offering Maternity cover from Year 1 in Health Insurance. Premium Rs. 75000/- Maternity Cover annual limit Rs. 60000/-
Jokes apart, Insurance is to take care of financial expenses/loss on uncertain events. It is not possible to cover Maternity in Year 1.
Max Bupa covers Maternity after a 2 year waiting period.
Mahavir
Can you comment on my reasonsing also ? As you said Max Bupa covers maternity from 2nd year , and there would be some limit for it , like Rs X to maximum, then in that case the premium will be atleast more than X/2 . because the waiting period is 2 yrs , Its because if a person knows that the benefit will arrive exactly after 2 yrs, he can take benefit of this .
Manish
Hello Manish,
Any waiting periods circumvent one from buying the policy, just to make an immediate claim on a condition/ailment.
There are only 3 major categories of people interested in Insurance, 1. Who want an immediate claim (“Ek saal main paisa double” types).
2. Who blindly buy Mediclaim from Building wale Sharma ji, without understanding benefits or conditions.
2. and the serious one, who are really understand Insurance as a risk management mechanism, and are not interested in short term benefits over long term.
There are very few people, who would plan well enough, and take the policy to ensure they claim maternity in the 3rd year. The premium for these few would be factored in the Max Bupa premium.
IMO, a 2 year waiting period is good enough, to drive out majority mass of the crowd, who want immediate “lottery” claims, and keep the product sustainable.
Hope this helped.
Mahavir
My query is regarding LIC endowment policy Jeevan Shree (table 112). I took it in year 2001 and paying premium regularly since then. Premium is Rs. 24520/year, premium paying term is 16 years and coverage is 25 years. Now that I have completed 11 years, should I continue with it or is it wise to surrender this policy? I was told that expected return form this policy would be 10% PA for 25 years and there is/was no other policy matching this high retuurn for such long duration. Please suggest.
PS – lot of people confuses this policy with LIC Jeevan Shree – 1 (table 162)which was launched later and does not have high Loyalty additions like Jeevan shree.
Tribhuvan
First thing is no LIC policy guarantee any return . it all depends on the maturity amount + Bonus amount which is declared by LIC each year . Better you use IRR to find out what return you will get from your Policy. its there in the action kit .
Manish
I do not mean any Guaranteed return from the policy rather higher than usual by way of loyalty additions and bonuses.
LIC declared Loyalty Addition per 1000 sum assured for Jeevan shree (112) for the year 2009-10 are:
policy holding term 5 to 9 years – 75
policy holding term 10 & more – 150
I read the same were in case of previous years as well.
This seem to be higher than other LIC policies. If you come across this policy details (I do not find it on LIC website itself) please suggest is it worth continue with this or surrender it?
Thanks,
Tribhuwan
Tribhuwan
What you have mentioned is “Loyalty Addition” , which is ONE TIME ADDITION only and not a regular year on year addition . So you will get it only one time .
Regular bonus each year is different and declared each year . It was 60 in 2010 .
Manish
I am 26 and earning Rs.36000 pm. I have term insurances with total Sum Assured of Rs.1.18 Cr. I also have Jeevan Anand Policy from LIC (Sum assured of Rs.3 Lacs) with the commencement date of November’2009. Premium for which is Rs.12228 pm. I have paid two premiums. Should I close this policy? If I close now, I wont get any surrender benefits. Even If I close after paying 3rd year premium, still I am making huge loss. Kindly advise.
Premium for Jeevan Anand is Rs.12228 per annum and not pm.
Mathu
yes .. you will make the huge loss if you surrener it now or even after 1 yr, but it would be a big pain for a moment ,, in the long run you will be benefitting , because you will use future premiums for good use .
Its like you got cancer in your fingers , cut it or let it spread all over body
Manish
Thank you Manish. My first Action in this month will be surrendering the LIC Policy.
Mathu
Nice , so whats the next action ? When are you going to their office , I need a date !
Manish
Manish,
I will do that on Saturday. Meanwhile, I have completed my second option of buying a Health Insurance Plan for me and my Parents.
Mathu.
Read it as Action and not option.
Great .. keep updating
Manish
Hi Manish,
How about adding Personal finance first aid/black box kit, Will writing to Action Kit?
I need to update my personal finanice blackbox and Will for the recently taken Health insurance and term insurance policies. These are my action items for this action month.
Jayaprakash
good idea . but we are very much given the whole kit now .. its late . We will include it next time and we will also bring in experts from these area’s for people to ask questions
.
Manish
Hi manish .
I need your help in SIP section . I have been investing in HDFC top 200 since a year . I want to start another SIP . was thinking between DSP blackrock and Franklin tempton tax save fund . cud u guide me ?
Dr Langoteamit
Both are good enough .. you want a tax fund is it ? Otherwise just put in DSPBR top 100
Manish
In my company health insurance policy, I have already included my parents for 5 Lacs floating cover (@ extra premium 13k). I want to get a separate health insurance for my family.
1. Me and my wife are 28.
2. My father is aged 66, very limited policies available for him.
3. My mother is aged 56.
Doubts:
> Is it correct to stop the employer coverage for my parents and go for a comprehensive health cover outside?
> Or, Continue the employer cover for my parents and get a separate policy with less coverage?
> Is it good to take a Individual policy for parents. Or, a floating policy for a combined cover of 4/5 Lacs?
Options Considered after Research:
1. All 4 taking separate policies
Me/Spouse/Mother – 2 Lacs each:
Apollo Easy Health Standard Individual (or) Star – Medi Classic Individual
Father – 1 Lac:
Star Red Carpet (or) Apollo Easy Health Standard Individual
2. Floating Policy for me and my wife, separate policy for my parents
Me & Spouse – 3/4 Lacs:
Apollo Easy Health Standard Family (or) Oriental Family Floater Silver
Mother – Apollo Easy Health Standard Individual – 2 Lacs
Father – Star Red Carpet – 1 Lac
3. Floating Policy for me, spouse and mother, separate policy for my father
Me/Spouse/Mother – Oriental Family Floater Silver – 4 Lacs
Father – Star Red Carpet 1 Lac
4. Floating Policy for all 4
Oriental Family Floater Silver – 4 Lacs
Oriental Family Floater Gold – 6 Lacs
My budget is 15k (if continuing with the employer insurance) or 20-22k (if discontinuing the employer insurance)
I gave the budget is for informational purpose since I cannot take an expensive policy like Max Bupa which is good in features but, costs 45k for our family.
Hello Vishnu,
You have not mentioned about health condition and history of all the members, specially for your Parents. This is key to recommending any Policy.
You should take the Corporate/Employer enabled policy, ONLY if you are foreseeing a hospitalization/surgery in the next 2 years. In case they have any existing ailment, then in the next 4 years. If they have no medical issues (Don’t take any medication, no symptoms, no diagnosis, no history), then you can cancel the corporate policy, and go for your own Health Insurance from the open market.
Go for twice the individual coverage, in case there is a better floater plan available.
Must say Vishnu, you have done some great research, which is commendable.
Hope this helped. Good Luck.
Mahavir Chopra | medimanage.com
Hi Mahavir,
Thanks for asking. Me/Spouse/My mother does not have any pre-existing diseases or history. My father has hypertension and takes medication for that.
I don’t foresee any surgery to be frank. But, being in the old age, we can’t rule out anything. My father frequently get things like fever, cough, leg pain, skin allergy etc.. which we gets covered through the domiciliary part of the employer’s insurance.
1. Once I opt for any sum assured, can I increase it later, say after 4 years?
2. Can I add my child to the policy at later point?
3. When the policy wordings says “If the claim is 100-125%, then loading will be done @ 25%”. what does this mean? What will be the implications, especially in floater policy?
I chose Appollo Muncih for one big reason that they have guaranteed renewals for lifetime, and their premium too reasonable?
For your father you should run the corporate cover parallely till all the waiting periods in the Individual/Personal Mediclaim plans are cleared, which is 4 years.
You can increase sum insured, provided you don’t have any new ailments/conditions detected. Insurance Company can put exclusions, deny upgrade in case of new ailment. We recommend you stretch yourself, but ensure you buy a good cover now, and not depend on upgrades.
In Family Floater, you can add children later.
That’s the loading policy. Claim Ratio is Claim Settled/Premium Paid. So, if you pay a premium of Rs. 10K, and claim Rs. 11000 in the year (Claim Ratio = 110%), your premium will increase to Rs. 12500/- on renewal.
There are around 6-7 Insurance Cos. offering Lifetime Renewal products. You can contact Medimanage, in case you need a comparison of such products. http://www.medimanage.com/inquiry.aspx
Hi Mahavir,
Thanks a lot for the detailed explanation. Actually, I have contacted Medimanage quite a few times and in discussion with them for the past 1 week.
But, I am being given very limited options i.e.
Star – Red Carpet for my father:
+ve: no medical tests, guaranteed renewal, pre-existing after 1 year
-ve: 30-50% co-pay, many important sub-limits
Oriental Family Floating Silver for other 3 persons:
+ve: Reasonable Premium of 9k
-ve: 10% co-pay, renewal available only till 65
But, I am trying to see if any better options are available since both of these policies has big limitations.
I am looking for policy with Life Long Renewals, reasonable sub-limits and reasonabe premiums & loading policy.
Vishnu,
Oriental Happy Family Floater converts into Individual Mediclaim with continuity after the Proposer (You) reaches the age of 65 years (and not your parents). The policy does not get discontinued. The Copay in OIC HFF is till Rs. 5 Lakhs Sum Insured.
Also, at the current rate of healthcare inflation, when you take a lower sum insured you have a larger amount at risking to pay from your pocket than the 10% Copay that is bothering you.
Rs. 3-5 Lakh sum insured will not help in the next 10 years.
Remember, there is NO PERFECT PLAN there in the market.
It is always a give and take.
You need to settle for a good plan, rather than wait for “that” plan to arrive.
Hi Mahavir,
Glad to see your reply. Would be of great help if you could provide more details.
I did not know about the Oriental Floating Cover getting converted to Individual Policy which I think renewable till 80 years. So, after 65, will premiums will be as per the prevailing rates?
Yes, I understand about the possibility of bearing the entire risk with LOW SUM rather than 10% co-pay with HIGH SUM.
I am just doing my home-work of finding the ‘good plan now’ rather than regretting later for not doing the homework.
1. I will not close the employer coverage for my father at leasst till his individual cover covers the pre-existing. Need a recommendation for a policy for my father with 2 Lac Coverage.
2. Me/Spouse/Mother can either go for a floating cover for 5-6 Lacs or floating cover for ourselves and individual cover for mother. Any suggestions here?
One advice I got from Medimanage rep is to avoid bringing elders like parents into floater policy with youngsters, which will increase the chance of Loading and premium getting increased even if one person makes a claim.
Vishnu,
My case is similar to yours. I have a health cover from my employer for my family and my father included. For my father I pay a heavy premium. Now I want to buy another insurance to cover all of us.
1. I first thought of taking a family floater, but noticed that including my father (65 yrs) adds up the premium a lot. Now, I am looking a separate one for him and one for my family.
2. I noticed that the state insurance companies are not willing to give insurance above 55 yrs of age. And private insurance companies are very costly. I think Star is among the cheapest.
I will check with medimanage what works out best. In the meantime could you please update me on your research and what you have decided.
Hi Mayur,
After checking the possible options, I had only two choices which suited my budget.
Yesterday, I went ahead and bought Star Red Carpet 2 lacs Policy through Medimanage. Zeroed on Oriental Gold 6 lacs policy for me, my wife and mother – 14k. Will buy shortly.
Few points on both the policies, which you might find useful.
1. Star Red Carpet – 2 Lacs – 9326
2. Apollo Munich Easy Health Standard – 2 lacs 14k
Red Carpet:
(+) No Medical Test
(+) Low Premium
(+) Only 1 year waiting period for PED
(+) Premium is same till 70
(-) 30%to 50% Co-pay
Apollo Munich:
(+) Great Features
(+) Lifetime Renewal
(+) Not sure about Co-pay (Medimanage rep told 20% co-pay)
(+) Bonus for No-Claims
(+) Loading applicable only on Bonus
(+) 7.5% discount for 2 years Term and additional 10% Family Discount if (more than 2 policies)
(-) Medical test
(-) Loading during inception based on medical tests
(-) Premium will change during age slab as well as when company decides to change
(-) Waiting period of 3 years
Thanks a lot Vishnu. Copay in Star looks very high. I was checking on this site (http://www.healthinsuranceindia.org/senior_citizen_health_insurance.asp#q32)
and United policy looks good. As you have done enough research you would have also came across this. I will research for the next 2 days and update you on.
Mayur
Any updates on your Health insurance part ?
Manish
HEALTH INSURANCE PLAN:
Hi, I am 26 years of age. I was contacted by Citi Credit card Representative for a Health Insurance plan (Cashless) offered by New India Assurance. He said it is Plan 16 for me. It gives 1 Lac Sum Assured each for me, my father and my mother. The total premium comes to around Rs.6336/- to be payable once in 2 years. Premium will be charged in slabs based on age (Age 0 to 25, 26 to 35, 36 to 45, 45 to 50.) It gives guaranteed renewal till 100 years of age. 24 hour hospitalization must. 30 days pre-hospitalization expenses and 60 days post-hospitalization expenses covered. Rs.200/day for 15 days in a year over and above sum assured during hospitalization period. Pre-existing illness covered after 4 years. 5% bonus points if no claim is made.
Is it a good plan and can I go for it? Is there any better plan available in the market?
Hello Mathu, and all readers,
There are always better medical insurance plans available, but recommendations can only be provided if you provide the age (Completed years) and details of Existing Health Conditions, of all members you wish to cover.
A 1 Lakh sum insured, is almost like not taking a cover in the long term. We encourage you to go for highest cover you can reasonably afford. A Rs. 10 Lakh floater is more ideal for 20 years planning.
Regards,
Mahavir Chopra : http://www.medimanage.com
Hi Mahavir,
I had a few queries.
Could you please clarify regarding claim ratio and loading? Suppose I claimed 1 lakh out of a 5 lakh cover costing 10000 as premium, does that make the claim ratio 10%? What would typically be the loading amount on the next premium? I would like to know which companies have the least amount of loading.. I have personally applied for Oriental Health Standard of 5 lakh cover from medimanage about 15 days back.. I am 30 years old and have no ailments and no dependents to take a family cover yet..
My other doubt was regarding comprehensive personal accident insurance.. I wanted to know how much cover would be adequate for people like me? (30 years old, low risk work profile, no family or dependents)
Thanking you in advance,
Sunnydoc
Claim Ratio is Ratio of Premium to Claims. So if you pay a premium of Rs. 10000 and claim Rs. 1 Lakh, the Claim Ratio is 1000%. Not all Insurance Cos. use Claim Ratio to calculate loading. Loading depends on company to company, product to product.
Read this article to understand Loading better: http://www.medimanage.com/my-health-insurance/articles/loading-in-health-insurance-know-about-it.aspx
Since Personal Accident covers disability, it is useful for even people who don’t have dependents. IMO, you should go for a Personal Accident Cover of at least 60 times your monthly Salary. Ensure it is Comprehensive, and includes Temporary and Partial Disabilities.
Ok thanks.. I will go for a good comprehensive personal accident insurance then..I feel Bajaj Allianz looks good..
I would still like to know about how widely does loading differ from company to company.. Which companies offer the least loading, etc.. A little bit of details please.. All this from an average consumer point of view..
Thanks..
Sunnydoc
Sunnydoc,
Such kind of detailed information cannot be provided out here. You need to first shortlist some good products and then compare loading feature later. As you are already in touch with us, you can take help of our experts, for this. Thanks.
Dear Mahavir,
I am 25 years old, my mother 46 and my father 55 years old. As of now, we haven’t experienced any health related problems. Please tell me in case further details required.
At your parents current age, and no health issues or history there are many options available. I would suggest you go for Max Bupa Family First or Oriental Happy Family Floater with a cover of Rs. 10-15 Lakhs, if you can. Both are lifetime covers.
i am 33 had a LIc policy Jeevan Anand for which i am paying around 15k p/m i started it 4 yrs back.
now i am considering to buy a term plan for around 30 lac. for which i have done an extensive search & made a table of all online terms that are available with benefits, adv, dis, etc
what i found most of the companies have premium within a range of say 1000 Rs , which i think hardly matters if company take cares when needed most without bothering beneficiary . now i had some query
1) ‘ld i surrender my LIC Jeevan Anand (until n unless its really a bad in todays scenario, n i can make more money/via investment . otherwise i want to keep this)
2) well is there any means that if something happens to me my dependents will get money, say if they d’nt make any claim (may be unaware, forget)
3) if company wants to discontinue its business or goes bankrupt (i just want to explore options/risk)
4) mostly insurance comp. don’t have any higher preimum in case of coverage less than arnd 25 lac, why is it so is ther any catch in this
5) as i want to disclose every thing is it possible n advisable to take coverage from two companies so that amnt remains less for a smoker like me n coverage increases (but i dont want that if some misshaping occurs my family members suffer),
Gaurav
1) Better surrender it , over long term these is no incentive to be with this . You can use your future money in a better way
2) NO
3) Its not the best place to discuss it , as its a big thing , but you should not worry on that .
4) There are 2 type of cost , one is fixed cost ,which they have to incur for each client, other is dependent on cover amount , to a level very small cover clients also have to pay minimum premiums …
5) Yes its advisable anywyas to put cover with 2 companies .
Manish
Manish
thank you very much.
well i must admit here that i have to take (action) Term plan, health insurance & a start fresh investments in MF i.e all in all , have to secure myself n invest/organize my finances
Manish i have been fan of your articles n got benefited a lot, but i always lack action
usually i got my self engaged in gathering n analyzing there i got confused n lot comes on my mind.
infact i had made an excel sheet of all available(at least known to me) term, health plans with almost categorizing each every aspect.
Manish can we discuss all (obviously in steps, considering term plan first) :- am i too greedy
manish i found this platform could be of good opportunity as usually ppl we encounter n interact don’t want present facts infact customer care also donot want to discuss salient features
Gaurav
Why dont you put the questions here and everyone can discuss on that .
Manish
definitely i want to discuss every thing here only my intention was very much this but i was scared of asking too much question thats why i ask for it
First of all i w’ld like to consider a TERM PLAN
Q1) does insurance portability exists in insurance- (as if it does that means at any later stage we can have options open)
Q2) can company increase premium at later stages. (may be due to age associated aliments, inflation, no of claims, business whatever reason)
Q3) can company compel a person to take certain test during policy period say after continuing for 8 years
Q4) what if person acquires some habits(bad) during continuous years of coverage.
Q5) what are the things that r supposed to be communicated to insurance company time to time( like new coverage,police,health,habits,family, job / nature of duties changed, etc etc)
Q6) as i resides in Ghaziabad (delhi-NCR) some online plans do not have ghaziabad on their sites but on enquiren they say : pls put any address of yours (relative) whosoever is residing in Delhi. though i work in delhi but stays in ghaziabad
Q7) does IRDA have any strict cap or means of looking their business practices
lot more i have in my mind but i have chosen these policies based on their claim ratio, expected customer base, term, max age coverd etc:-
ICICI
KOTAK
LIC
AVIVA
(in preferential order)
@Gaurav Gupta – Phewwww..You must have take a lot of time to even put down so many questions..Let me try and handle them..
I am sure out of 4 options which you have selected for yourself, at least one would definitely have GHAZIABAAD in its ambit..By the way, LIC does not offer TERM PLAN in ONLINE MODE..So if you are opting for LIC, it automatically means through an AGENT, and there must be AT LEAST 100 agents near your place..No need to worry again..
A) There is NO PORTABILITY in LIFE INSURANCE, not only in INDIA but nowhere in the WORLD and it NEVER will be..Its an agreement between two parties, INSURER (The insurance company) and the INSURED (The policyholder) and thats all..Why would you want to have your OPTIONS OPEN later on..If you will be selecting your TERM PLAN carefully this time, you wont be needing to REVIEW your decision later on at all..Or you have something else behind this query??
B) NO, company cannot increase the premium in any of the LIFE INSURANCE POLICY, be it TERM PLAN or MONEYBACK, or ENDOWMENT PLAN..Enjoy
C) After 8 years, NOT AT ALL. All it can do is ask the policyholder to undergo certain MEDICAL TESTs before issuing the policy, that too at its own cost..
D) Thats bad on the policyholder’s behalf..He should try to get rid of the BAD HABIT for himself. Company has nothing to do with the PERSONAL LIFE..
E) Matters of concern which SHOULD be informed to the company is CHANGE OF ADDRESS, CHANGE OF CONTACT NUMBER, CHANGE OF NOMINEE..Nothing else..
F) Ghaziabad?? Give me a call and i will come and do your policy
G) Yes, IRDA is one of the most STRINGENT regulatory body as far as ADMINISTRATIVE PART of the INSURANCE COMPANY goes, be it the SOLVANCY RATIO or DRAFT RELATED TO IPO GUIDELINES etc..you can count on IRDA for your queries..
All the options you have selected are GOOD..I am from KOTAK so i would naturally advocate KOTAK but because TERM PLAN is such a simple plan and there is no distinguishing factor (Such as CHARGES etc.), all term plans are equal..CLAIM RATIO is just a statastical tool, nothing to do with real life..
Just select the company, in whom you have trust or the company whose agent would have given you the answers to all these questions and thats all..
Dhawal Sharma
URJA WEALTH CREATORS
DHAWAL thank you very much for being so patient & explaining everything. i have few more query :”>
1) y insurer want my medicals (Ans c of urs) if i m continuing my policy/premium regularly does it is for REISSUING or company have rights to discontinue policy
2) My mother n father both are diabetic n BP patient otherwise fit n fine, in what category s’ld I put them healthy or sick and how does it affect me to insure
3)As I use to drink liquor once in a month earlier(college days) now I drink occasionally but kotak site require to fill in quantity & they want daily consumption(does not fit in their criteria), now what shall I do, same is the case on no. of ciggreates that i smoke daily. on enquiring customer care ppl were not able to answer it clearly?
4) i had suffered from jaundice,bronchities etc in my childhood and 6-7 mnths back i had lingament tear (4 which i was absent from my present job 4almost 20days)which had now almost 10% affect on my leg (improving). do i require to mention all these.
5) what c’ld be the reasens for a claim rejections
6)is it advisable to take 30Lac cover from Kotak n 5Lac from LIC so that example of one c’ld be put infront of other.
all these i have tried on kotak iterm plan
well Dhawal ji my whole sole intention is that i want to disclose all minute details, so that in case of any miss-happening my dependents should get everything when needed most.
as being a typical Indian there are some mental block on pvt insurer but they r far economical then LIC.
Dear DHAWAL could u pls guide
mine Q’s might be irritating u, i m srry but i m perplexed.
as on one side there is cost (online plans) on others is a company (LIC kind/endorsement plans) with certain proven track n hell lot of customer base/money.
Gaurav
llet me answet that
1) they will not ask for another medical test for a policy in force , its all for additional policy or after a LAPSE .. in between they will not ask .
2) There is a question while filling the form, about the previos ailment of parents , as it can have impact on your health as well ..
3) Put an approx figure .. if you are consuming 3 literes in 30 days .. put 100 ml , I know its not daily , but even I am not sure how to put it …
4) Yes you need to mention Jaundice and Bronchitis etc ..
5) The only rejections can happen if you dont provide right info
6) No , claim from one company does not inforce others to pay the claim , its totally on the companies how they take it and what their procedure is
Manish
MANISH
thankyou very much
i m feeling proud to say today i had brought simplest(no riders) online term from ICICI (my instinct told as i was to chose 4m kotak n ICICI)
Gaurav
Good to hear that
.. Keep yourself in action !
Manish
One important question. My father’s actual age is 66. But, he does not have any ID proof other than Voter ID Card and Ration Card. In both of these, only age is mentioned and not Date of Birth. As per that, he is only 64.
When I am trying to buy the health insurance, the agent says “We will consider the age as per the proofs”. But, I was worried, if there will be any problem later.
Please help me how to go ahead now.
Vishnu,
Insurance Companies will go by proof. Alternatively, you need to get the Ration Card, Voter ID Card revised to the current age.
Hi Mahavir,
Thanks for the details. Yeah, I have to do that ideally. But, no idea how to change that and seems to be a daunting task especially when we don’t have any document to prove it.
But, for now, I entered the DOB as actual in the Mediamanage site.
Hi do u think gold as a investment? Would gold will bubble soon as yesterday alone it was down 1500 rs per 10 gram.
Sudhindra
One can look at it as investment , but has to be clear with what his expectations are .. thats all .. one day movement in any direction can be seen as part of analysis
Manish
sir,
i want to start SIP for long term but i m confused that it is better to keep SIP units in demate account or physical form (expensewise, conviniancewise etc)
(1) in demate there is brokerage charges but liquidity & monitering is easy.
(2) in physical form there is no entry or exit loads, agent help is available but liquidity & monitering is not so easy.
what is process to make WILL & what are precautions to take to prepare WILL.
Plz guide me
thanks
Rakesh
In physical format , you mean through agent ? right ! . If thats the case , then liquidity is not a very big issues , I recently redeemed some of my funds which i bought from agent and all i needed was to fill up a form with CAMS and money came in 3 days .
For will related things , see : http://www.jagoinvestor.com/2010/11/how-to-make-a-will-in-india-and-its-importance.html
Hi ,
I have recently started SIP for Mutual Funds, Canara Robeco Equity Tax saver 3k , HDFC TOP 200(3K), UTI oppotunity(2.5) HDFC MidCap(2.5), Kindly suggest for anything for my existing selection, does it require any change?
Also i want to invest 25k in single time, in some fund or anywhere where i can have some medium risk & medium gains, without any lock in duration,
I have enough coverage through life Insurance policies,Still i am left with 12k a year month for any new addition in MF, or insurance,
I need to own a house in my city for which i need support from my own investments in 5 years of time,
Thanks
Deepak
Deepak
the funds are good enough, the tax saver fund is also good, but i hope you know that from next year when DTC comes , the tax saver funds will not exist . For a one time investing , will you be able to take the high risk , if not , stay away from markets at the moment .
Manish
Dear Manish,
The action month is a good intiative for people like me to push for the long pending decision for the goals.
Till now i have been investing without any direction.I have prepared a proposed investment sheet for different goals of mine. This includes combination of term plan and SIPs.
1.Currently i have term plan from Lic for 25 lacs and planing to take of 50 lacs more from aviva ilife in Oct/Nov 2011 . Also i am planning to replace the ongoing term plan from lic with icici or indiafirst online term plan, after i get the ilife policy copy. Is it good to replace ?
2. I have considered SIPs of funds which have an existence of more than 10 yrs and have good track record. However if there are any better options then please guide me.
3. I have considered a combination of equity diversified and balance funds. But can i also include PPF as an option instead of balanced fund ?
I agree that equtiy over long term will give returns higher than ppf but the returns r sure in ppf as against equity.
4. the point in starting the SIPs from Jan 2012 is to develop my emergency fund from stopping some lic polices (need your guidance to decide on stopping or paid up policies) and fund from my previous investment.
5. Also i am enclosing a sheet of my current LIC policies with their current surrender values. In this , is Jeevan Mitra an endowment plan ? i mean, how to decide whther a policy is an endoement plan ?
6. I am little skeptical about surrendering some 2 policies from Lic, especially Jeevan Mitra. Its not because of fear of losing money, already paid. But i think , that we are assuming that equity SIPs will deliver in long term (10 or more years) but its just based on previous records. It may also happen that the funds dont perform as required. So in that case atleast i will have a good maturity amount from this policies (although returns will be poor @ 6%). So what i think is that can i go for a combination of SIPs and one lic policy ?
Whatever may be the combination but i will definitely bring my investments in proper shape.
Keep up the good work.
Regards,
Hitesh
Hitesh
1.The term plan company should be one whom you trust . There can be A , B , C company which tops the chart . some trust ICICI , some dont , some trust Kotak , some dont .. so its upto you which institution is better. I personally would go with kotak .
2. The funds you have choosen are good enough , you can go ahead
3. I am not sure where does this question fit in Action month tasks .
4. All your LIC polcies should either be surrendered or to be made paid up , what analysis you want on that ? The return at end is going to be very small .
5. It will be mentioned in the LIC website itself , also if you are not getting a money back after some years ,then its pure endowment plan
6. No , over the next 10-15 yrs, the general consenses is that equity will be great performer , what are the reasons you feel equity might not do good ?
Manish
Dear Manish,
1. Ref point 1 : can i replace the current lic with the other online option with double the cover and lower preium, after i get the 50 lacs policy document in my hand ?
2. Ref point 4: In any of the LIC policies from the list , will get anything on maturity, even i make paid up ? If know i can surrender them and forget the money.
2. Ref point 6: Its just a fear of risk invloved in equtiy. Supppose at a later stage if it under performs then i wont even get what i may be getting through debt.
Thanks
Hitesh
HItesh
1) There is nothing like replacing .. you need to close one and take another or take another and close earliar one .. its not transferable
2) You will get money on maturity only if you have paid the premiums for atleast 3 yrs , else not
3) Thats a general risk perception ,, Its like a person feels afraid of swimming .. learn more about it .. read more about it .. do some number crunching about it .. you will surely get more insight about it .. Over a long term the risk of getting bad returns from equity is quite less.. see history !
Manish
its the best time to invest in HDFC Top 200 and Reliance Gold Saving Fund via SIP
Hi Rajwinder,
HDFC Top 200 is one of the best funds available to retail investors. If your horizon is 3-5 years, its never a bad time to invest in a fund like that. If you are investing for the 1st time, then starting SIP is a better option than investing a lumpsum amount.
On Reliance Gold Savings Fund, i wouldn’t have an opinion about the timing. Gold has given “abnormal” returns given the wide-spread fear of US recession. Whether it continues to give returns is questionable given its not being put into a productive use….if you want to invest, ensure you aren’t allocating more than a max of 10-15%, but that too if at all. For long-term disciplined investments, direct equity , equity or balanced MFs always remain the best options.
Hope this helps.
–
Santosh Navlani | moneysights.com
Hi All,
We all know that rebalancing portfolio is very important from time to time. My question is , How does one find out Equity:Debt ratio of our mutual fund portfolio ? For example, I have some mutual funds in my portfolio. How will i know Equity:Debt ratio for these Mutual funds together. I have HDFC TOP 200 EQUITY GROWTH, FRANLIN INDIA BLUE CHIP, BIRLA SUNLIFE FRONTLINE EUITY, SUNDARAM MID CAP. How to find the ratio. Are there any tools available which will enable me to take the decision to rebalance my portfolio ?
Regards
Chandrakant Dhutadmal
Chandrakant
yes , make a account on moneysights.com , put the details of your funds and you can find out the equity allocation and debt allocaiton
Manish
Hi chandrakant,
Register with Valueresearchonline.com and add your mutual funds. It has an analysis section, where it will clearly give consolidated Debt:Equity Ratio, Market cap etc.
Hi Chandrakant,
You have rightly pointed towards an important aspect of MF investments. As Manish pointed out, you can register for FREE on moneysights & add your MF schemes to view your asset allocation. Btw, i can assure you that moneysights has got “the simplest” way to add your MF schemes. Even if you have 5-6 MF schemes via SIP or Lumpsum, all it will take is a max of 7-8 mins, unlike other sites where you may have to first figure out how to add
.
More importantly, you will also get to see if your allocation & funds are suitable to your risk profile, so that you have an easy way to re-allocate your funds (if at all needed). There are many other things like you can tell us if you redeemed something in between or even missed a specific month’s SIP…most of our users say we are the most comprehensive Stock & MF Portfolio manager they have ever used.
Let me know once you are add on what you feel about our offerings.
Hope this helps.
–
P.S. Thanks for the recommendation, Manish
Santosh Navlani | moneysights.com
Hi Santosh,
I have immediately got myself registered on the website. The website is good one. BTW, i have got little confused by looking at two websites. Please clarify your view on this. First, Valueresearchonline shows Reliance Regular savings as four star rated, whereas MoneySight recommeds this fund to be removed from portfolio . Why is such a difference between these two views and most importantly how a end user supposed to understand what is to be done for his/ her portfolio.
Regards
Chandrakant Dhutadmal
Hi Chandrakant,
Thanks for signing-up & trying moneysights. Glad that you liked it.
On your query for Reliance Regular Savings – are you talking about Equity or Balanced Fund? Both in moneysights are 4-star for Returns but fare poorly on “Safety”. i believe that you would have noticed 2 ratings also as a diversion from normal practice.
At moneysights, we cater to retail investors with a belief that “safety of capital” is of more importance to them than Returns. Hence you would see that we show options of better funds that it can be replaced with – with similar or higher return grade AND a definitely better Safety Grade. If you notice the comparison graph of these funds with SENSEX or their respective benchmarks, you would notice that these funds have fallen more compared with the choices we recommend.
One more thing – you would notice an orange icon – that stands for caution – besides reliance regular savings fund. That means its not a definite sell. But an option if you want to consider cutting down risk.
Hope i have answered your query. Feel free to comment in case you have more doubt.
–
Santosh Navlani | moneysights.com
Hi Santosh,
Thanks for the information. Definitely, i would check these things and get back to you in case if have some issues.
Regards
Thanks Indeed for this month and making an attempt to help give up the laziness or habit of procastinating. I am really serious about it and have invested in 4 of MF’s both-Lumpsum and SIPs. I have 1 question:-
Is it right time to invest in some gold savings mutual fund. Should it be SIP or Lumpsum? I am looking for investing for more than a year at least. Also is ETF the better way to invest in gold other than physical means?
Bhushan
A lot of debate is there on this topic , at the end it matters a lot how connected you are with physical gold .
Manish
Thankyou. What you said is indeed precise and accurate!
Dear sir,
I have already started with what I have pledged. I have started & stp -SIp in HDFC EQUITY, ICICI BLUECHIP FOCUS FUND, HDFC TOP 200 FUND, Have Invesed in HDFC PRUDENCE FUND, ALSO HAVE TAKEN a HEALTH INSURANCE OF 300000 for Myself. I made an FD of 3 Lacs in IDBI BANK.
Anand
Thats great to hear
.. Wait for my mail where I will ask for the proper inputs for your actions
Manish
sir good morning ,
yes have contact the agent for starting sip in sbi gold mutual fund and i had received the form from him and at the same time i need advice regarding the gold fund or i can invest in any other fund, i waiting for the reply
What exactly do you need in advice ? You have already decided what you want to do
Manish
dear manish/shrikant/dhawal
i want to invest around 20-25K a month to create wealth. i do not have any specific time frame goals i want my self to be financial secure n stable . i only know this much that i want to remain invested as far as possible may be till retirement (25yrs from now)
my details :-
i am 33 yrs, staying with my parents (no rent or house loanEMI), wife planning to take a job after 1-2 yrs (other finnancial support) after our first baby (medical for him to be consider)
i had already investments in MF (tax saver) pls :-
1) plan distribution of 25k among diff funds/classes which with time may increase or decrease
2) suggest some a) Large cap fund
b)mid cap
c)mid & small cap
d) diversified funds etc
3) i want that for next 10yrs my investments should grow n then capital should be protected.
4) how to understand any MF schems investment objectives
5) how do decide when one should fetch/remove his investments, as my mostly investments (2003′s) are still lying as it is (they have seen full circle)
6) well principally i w’ld like to remain invested forever but i may be require some lumpsum amnt at following incidences:-
a) child education
b) children marriage
c) retirement lumsum n monthly returns around atleast 30k in todays value
d) any emergency fund of say 4-6 lac.
pls suggest
GAURAV GUPTA
hereby i w’ld like to add that can i opt for investing in real estate (seeing returns yield or say old age support) as exactly i dont need a home & for purchasing a flat i ‘ll be taking loan of around 30lac
can this house loan be considered as an investment option purely for money/wealth creation
GAURAV GUPTA
Gaurav
For long term wealth generation, I can suggest you the simplest thing is SIP in mutual funds , Real estate can also reap good returns in small to medium time frame provided its choosen carefully
Manish
Dear MANISH
thanks
could you pls help me in setting some time frame n allocation at diff. level in differents assests.
i have a specific question – as per my past experience i found that most of my SIP n onetime investments that started 4m 2005 is at par. (though for certain period it was irrergular)
s’ld i continue n hold every thing?
my fund houses are SBI,frankline & principal
Manish
can u pls also clarify various tax liabilities at different stages
Keep continuing our SIP’s .. 2005 – 2011 was a up and down period .. over long term you will get good returns .
Manish
MANISH
u n ur team is really amazing replying to each n every ind. n all sort of Q’s………. Hats off guys.
manish as already stated in one of my earlier Tab i told u i have got ICICI term plan today now
time for 2nd action :–SIP
step1- already an account with fundsindia
step2- bring all previous investments under this, (i m wkg on it)
STEP3 — start some SIP regularly with a vision of around 15-20 Yrs Min. (so s’ld cover all goals like child related,house n retirenment)
here pls HELP me to identify some MF houses n schemes for pure INVESTMENt
Q1) suggest 3 scheme names in each category
a)multi cap, diversified
b)large cap
c)small n mid
d) balanced
e) micro
though i dont know basic/actual diff between tham- but then also i want to invest in all above (starting with highest amnt from top)
Q2) when to stop/switch schemes
a) while schemes r not performing from long time Ex-SBI
b) 1st 7yrs wants to be aggressive, then moderate for next 7 yrs & in last conservative
Q3) as DTC what c’ld be Tax liability
Q4) are withdraw able amount taxable (need to show in income tax return forms)
pls suggest some options (categories) as i want to start fresh
next action could be health insurance cover search:)
regards
gaurav
Gaurav
1) Most of these categories are different because of low or high allocation of equity .. like midcap and small cap has high equity allocation with small companies in them , balanced funds have less equity exposure than pure equity diversified funds .. you can get good funds names from VRO .
2) You cant judge on funds house names ,. its specific to fund names .
3) Let it come first .. we never know if things will change in DTC again
4) Its not tables in life insurance and MF (after 1 yr from equity MF) at the moment
I am planning to surrender my BSL Dream Child plan policy. I couldnt afford the PAC (30% of my monthly ECS) for this fund. Today I called my agent to surrender this policy. He is suggesting me to stop the ECS instead of surrendering. Also, suggesting me to surrender the policy after completing of 3 years (Nil surrender charge).
As of now my Fund value is 15000 Rs.
My doubt is
1. If i cancel the ECS for this policy, will they still deduct the PAC from my existing units?
2. To surrender this policy, 18000 Rs is the surrendering charge. So do they will ask me to pay the balance 3000?
Please advice.
Also, I have started the SIP for SBI Magnum Emerging fund for 2 years.
Govardhan
From where did you get the info that 18k is the surrender charges ? Generally its mentioned in percentage terms only . You can surrender the policy and take your money after 3 yrs
Manish
Hi Manish,
Very nice initiative from JagoInvestor. I have few concerns or querys in My portfolio.
I am a long term investor and the purpose of the investment is for my childrens education & marraige. All my investments are in Postal MIS & MF. I have a housing loan and emi is paid from the rent. I invest 20K per month in 6 MF with Dividend Re-Investment option. I like to invest further 5,000 per month. Can you please suggest in which MF can i have in my portfolio.
HDFC Top 200 (3,000), HDFC Equity(5,000), IDFC Premier Equity(3,000), Reliance Equity Opp (3,000), DSP Small & Mid cap(3,000) and Birla Front Line Equity (3,000).
Which option is good for long term investor? (Growth / Dividend Pay-out / Dividend Re-Investment)
Is it advisable to have a Gold ETF’s. If yes, which one you suggest. Do we get physical gold, if we redeem our units?
Murali
When DTC will apply, then the equity funds will have to pay a dividend distribution tax of 5% (presently it is zero). So dividend payout/reinvestment do not make sense. Growth option is the best option in that case. In case you want to have some money, just redeem it partly.
Regarding gold ETF, I am not in favor of gold (atleast for long term). In case you want it, I would suggest the most liquid of them – benchmark gold etf. No, you do not get physical gold. You pay in cash during buying, and you get cash after selling.
Hi Ramesh,
Thanks for your response. Do I need to make any changes in my existing portfolio. As I like to invest further 5,000 ruppes. Can you suggest me in which fund can i invest.
You have enough funds. Just add that to any of the larger funds. HDFC Equity or BSL Frontline Equity.
Hi Manish,
As part of the acton month, I have surrender my ULIPs, now i am planning to buy a term plan online from icici.
I have one concern regarding this: I live in bangalore and my dependents are in a small town in UP. How my dependents will get the benefits in my absence as i am buying policy from bangalore and they are in UP. Also as of now there is no branch of icici in the town. Is that possible to buy policy from any city and claim it any other city, please guide me.
Kapil
Yes .. you can claim it from anywhere , just make sure you have the documents with them
Manish
I am looking between anmol jeevan and Whole life policy with profits of LIC to choose for my term insurance. I would want to go for atleast 50L cover but as anmol jeevan is for only 25 L i can rule out that (Note. I am trying to choose between these as i got to know abt them from my dad and also on checking what it provides later). But do you guys suggest anything better within LIC for min 50L cover term insurance. Search with those policy names in above comments. Seems no one has aksed it.
Srikanth
Anmol Jeevan is a term plan for less than 25 lacs, for more than 25 lacs , its JEEVAN AMULYA . its the same thing just that the names are different for different amounts . Go for that .
Manish
Thanks Manish
I want to buy a Term Policy for my wife. I shortlisted SBI Smart Shield – Increasing Term/Level Term, Kotak eTerm.
But, after reading about pathetic user reviews especially on Customer Care, I am little afraid about Kotak.
Any suggestions/experiences faced by you while buying Kotak eTerm Plan?
Vishnu
There are bad and good reviews ,, so it depends on case to case basis and there is some luck element also ! . I would recommend you can go with Kotak .. SBI also looks good in offline space . You can actually go for Kotak preffered (not e-preffered) , which is offline policy and premium is probably cheapest .
Manish
Thanks Manish.. Scary to hear the Luck element in Term Policies….
One doubt… How Kotak Preferred is better than e-Preferred?
Vishnu
Kotal preffered is offline , thats all
Hello
I would like to take health insurance for my parents. Given their pre-health condition, can you please suggest if they could get any insurance cover.
Mother: Age: 64, Has undergone Angioplasty
Father: Age: 69, Has undergone valve-replacement and a bye-pass surgery.
Thanks and Regards
Shiv
Its tough to get a Mediclaim with such health history. I would recommend you go for a Bank Policy. PNB has a policy with Oriental called Royal Mediclaim. You would get a waiting period of 4 years for the ailments, but you have a high chance to get the policy. Of course, you will have to create an account here. In case you have an account with a PSU bank like Bank of Baroda, Bank of India, Union Bank of India, you could try your luck here.
The second option is to go for Star Health Unique, which is expensive, but will cover Pre-existing after 11 months. Let me know if you need further information.
Mahavir, http://www.medimanage.com
Hi All,
I have got two things to ask you. How do we close multiple Demat accounts ? Which means i wish to have only one Demant account and want to transfer the shares from all other accounts to one. What is the procedure for the same, what are the charges levied while doing so ?.
Secondly, as manish has given us the advice to keep all the important and financial information in one single location/ file, Has anyone got complete template for the same ? Please share.
Regards,
Chandrakant Dhutadmal
Ask your other demat providers for procedure to transfer the shares to single demat , See if they all are under same DP , thats NSDL or CSDL .
Also the template you can from http://www.jagoinvestor.com/2011/01/financial-details-emergency.html
Manish
Hi Manish,
Recently i read about SIPInsure from Reliance Mutual fund and CenturySIP from Birla sunlife Mutual funds. What is your view about these kind of products ? I think this should be fine as long as we are not dependent only on this insurance.
Regards
Chandrakant Dhutadmal
Chandrakant
Yes , but why to even get into it . It will not come free ..
Manish
Based on inputs from Santhosh Navlani and Nandish, i finally decided and took up Aviva i Life for 50 lakhs. Completed online formalities, paid the premium (half yearly premium of 3662 for 25 years) and waiting for them to contact me for medical checkup.
Good part is – based on my decision, 3 of my friends also took up the plan with me (each of us took 50 lakhs for 25 years)
I have been thinking of this for almost 6 months (ongoing term insurance for 75 lakhs and needed another 50 lakhs to cover my home loan amount) and finally this gr8 initiative from Jagoinvestor moved me and i finally took up the additional plan
Thanks a ton to Manish, Nandish and Santhosh for this initiative
My next actions will be
- Health insurance (additional / extra care) in addition to my existing corporate plan.
- organizing my documents – i have seperate physical files and plan to create one physical backup file with photocopy of all important documents and one soft backup with scanned copies of all important documents
Thanks
JP
JP
Great to hear that
the best part is that 3 other friends of yours also moved and took action
Manish
Hi
First of all kudos on doing this amazing work.
I am 24 yrs. old earning 80k p.m. I have no liabilities as of now though I am planning to take a home loan next year and my parents are also earning so no dependents. Do I need term insurance ? If yes, how much cover ? I read somewhere that it should be 5 times your salary.
Secondly, I have started the following Sips of 4k each for long term wealth creation – HDFC Top 200, HDFC Prudence, UTI Dividened Yield & IDFC Small & Mid-cap Equity. I am also contributing 3.5k p.m. to the Voluntary Provident Fund.Please suggest if any changes are required ?
Manan
you are going good . Why not 4k in each.. are you left with less money at the end of month . If you are aggresive enough in the start .. it will be better for you later .
Manish
I am doing 4k in each of the above funds i.e. Total 16k every month.
What abt my term insurance requirement ?
You do not require any Insurance at present. Only when you have financial dependents. Till that time, invest that money too.
Hi Manan,
So heartening to see a 24-year old doing SIP investments. The funds are excellent! You may want to use moneysights to track performance of your portfolio on an ongoing basis.
Regards,
–
Santosh Navlani | moneysights.com
Hi Santosh
I am already using Moneysights to track my portfolio.Great work on the site, its well designed and very easy to use
Thanks for the appreciation, Manan. Glad you are already using.
Regards,
–
Santosh Navlani | moneysights.com
Thanks for getting me on board.
Your website is very informative and useful.
I am a beginner in financial planning, as a housewife I have very recently got involved in our investments.
I am looking forward to getting the financial education that your site aims at.
We have started a few mutual funds thru SIP and
now we are looking at taking term policies for my husband since he is 35 and the sole earning member.
We have two policies in mind, jeevan amulya I of LIC, and kotak preferred.
LIC for the secured point of view, and Kotak for the private one, in kotak i liked the riders of critical illness and disabilty
and also it had much lesser premium than icici or hdfcor max new york.
I have few doubts for which i request your guidance
1. I have contacted on kotak`s numbers many times but not yet got any response, so i was wondering when a customer who wants to buy doesn`t get a response, then would they respond to sttle the claims? how is the service of kotak
2. How important are the riders like CI, Disability in term policies.
3. Are the choices right LIC n KOTAK
looking forward to your reply
Hi Manish,
Really great initiative. I have Max New York Life – Fortune Builder policy Annual Premium 50,000. can you please throw some light on this policy. is this good or do i need to surrender it.
Nitin
When did you start that policy ? That looks like a ULIP , what is the current value of your funds ?
Manish
Hi Manish,
I have started this policy on Aug-2010 and the current value of fund is 37600.
Thanks,
Nitin Jain
Nitin
You have just started it .. mostly we dont recommened ULIP’s to some one who does not understand it and dont know how to use it . It would be loss if you exit now .. What is your objective in long term and returns expectations
Manish
Hi Manish,
Right now I am in financial Crunch and will not be able to start any new investment. Right now I am in debt of around 2 Lakhs which I will be able to clear by August 2012. After that my Goals would be
1. Child Education
2. Insurance
3. Retirment
4. Car
Not able to think any more as of now.
btw I am 30 years old married having one child (10 months old) earning 40K per month.
Hey Nitin turn your goals into commitments.
Your goals are somewhere taking your focus on earning more in the current time. You need to be 100% in present and not think of some few years away financial goals. Worrying is misuse of imagination, it drains your energy.
Firstly work on earning more money. Start seeing your financial life like a GAME. create some inspiring number and play for it.
What is the one action you can do that will make a difference in your current earnings ?
think about what i have said
all the best
nandish
Hi Nandish,
Right now my primary goal is to clear my debts. To make a difference in my current earnings either i need to switch job which cannot be done as this is my 4th year in this company and after spending 1 more year in this company i will be applicable for gratuity fund.
THe action month campaign is very motivating and its a great effort.
Congrats and thanks for getting me on board.
Your website has always been very informative and useful.
now we are looking at taking term policies for my husband since he is 35 and the sole earning member.
We have two policies in mind, jeevan amulya I of LIC, and kotak preferred.
LIC for the secured point of view, and Kotak for the private one, in kotak i liked the riders of critical illness and disabilty
and also it had much lesser premium than icici or hdfcor max new york.
I have few doubts for which i request your guidance
1. I have contacted on kotak`s numbers many times but not yet got any response, so i was wondering when a customer who wants to buy doesn`t get a response, then would they respond to sttle the claims? how is the service of kotak
2. How important are the riders like CI, Disability in term policies.
3. Are the choices right LIC n KOTAK
looking forward to your reply
thanks
Meera
1. Where did you ask for reponse ? Did you leave message on Kotak website or some agent , try local agent .
2. Its importance has to be seen from requirement point, its like do you need it or you dont ? You have to decide .
3. What you trust should be taken , any is fine .
Manish
From the comments above I understood that my policy is surrenderable.
It is Bhima Gold policy which was running for last 5 years. As the action item I am going to surrender it and start one term policy for the entire family with health/accidental coverage.
My question would be whether I will get the whole amount paid after last moneyback received?
Regards,
JP
JP
Your question is not very clear .Are you saying will you get all your money at the end of the term ? YES ,you will get all + bonus if applicable
Manish
Here comes the BIG DADDY..
http://economictimes.indiatimes.com/personal-finance/insurance/insurance-news/lic-joins-online-play-with-pure-term-policy/articleshow/9843161.cms
Dhawal
Yea .. just read this today morning only
Hi Mahavir / All,
I was searching for a Critical Illness policy information on Medimanage.com website. I could not find a way to compare the plans from different insurers, neither i could buy Critical Illness independent plan. Could you guide us on which insurer has got widest cover in terms of Critical Illnesses ? Premium may not be a criteria, but no of critical illnesses covered is important.
Regards
Chandrakant Dhutadmal
Hi Chandrakant,
We currently do not have Critical Illness Plans on our website. We provide these plans offline, as there are medical tests involved.
The good products with highest no. of illnesses covered is available with ICICI Prudential (Product: Crisis Cover) and Max NY (Lifeline Wellness Plus. These products cover around 30-35 illnesses, and provide higher coverage of around 10.
Mahavir Chopra | http://www.medimanage.com
Hi,
Have prioritize following to complete in Action-month
1) Surrender useless policies
3) Decided goals – Buy home in 2012, Retirement planning
2) Buy Term Plan
3) Start SIP for tax saving for FY12-13 and buy mutual funds
I had following policies due to “PAPA KEHTE HAIN” problem and need advise if I should surrender them?
a) 2 ICICI Pru-life Lifetime ULIP plan of YLY premium 50K. Started in 2006 and 2007. Have paid premimum of 25K and 20K but fund value as of today is only 27.3K, 21.3K.
b) Birla Freedom 58 Base Coverage have complete 3 years last year (2010). I paid 30K and today its fund value is 24K. I had not paid its premimum for this year and should I surrender?
c) Birla-Gold Plus Base Cvg Term 8 Pay 3 have complete 3 years last year (2010). I paid 36K and today its fund value is 34.5K. I had not paid its premimum for this year and should I surrender it?
d) Bajaj Alliance-New Unit Gain have complete 3 years last year (2010). I paid 36K and today its fund value is 24K. I had not paid its premimum for this year and should I surrender it?
e) LIC Jeevan Shree-1 started in 2010 with HLY premimum of 12.7K. I have checked with other LIC agents and they have suggested me to surrend it in 2015 as this policy is not good.
f) LIC Endowment Policy started in 2011 for 10 years term with HLY preimum of 12.5K!
Sandeep
I am mainly suggesting surrendering of policies due to one reason .. making your financial life more cleaner and effective .. So better to get rid of all these from that angle .. make a fresh start with quality products
Manish
I had taken steps to organize my Financial Documents. Yes I have purchased a multi section Folder and put my Bank documents,FD,Mutual Funds,Equity Shares etc. in Separate sections.
Now how to choose a Portfolio Platform. At present I am using Value Research Portfolio.
Please advise.
Thanks,
Sudhir Goyal
Sudhir
Thats a great news.. even i bought a new folder (my old one is not big enough) .. Its a one time task but makes sure we reap benefits for long term ..
.
What is this Portfolio platform for ? Is it for investing or for tracking ? If its for tracking , then money control or moneysights are two good options
manish
Great initiative from Jagoinvestor Team.
Thanks for coming up with Action Month, atleast many of them like me will take some decision which are pending since long time
Here is my query:
I am not able to take decision whether to close my Jeevan surbhi policy(money back policies) or not.
Just to let you know last year I have closed Jeevan anand and Jeevan Mitra policy.
The reason I am not able to decide is because I already have paid premiums of Jeevan surbhi for 4 yrs and it will be used for tax exemption. Also if DTC comes then ELSS will also be of no use for tax benefit, so thinking to stick with this policy and seeing it as a Debt fund.
Below are the details of my policy:
Jeevan Surbhi (Tenure- 18), Premium= 58978/yr, Sum assured- 750000 + Double Accidental benefit of 750000, Maturity after 25yr and Amount I will get is 970620/-
This policy is Money back and will give me 1.5 lacs every after 4 yrs (Till 18 years I get 5 times 1.5 lacs)
Could you also help me to calculate returns of such policies?
Let me know if you need any more detail from my side.
Thanks again to all for your valuable time.
Thanks,
Mahesh
Mahesh
Your LIC policy will also not give tax benefits once DTC is in force as its mandatory to have your SA 20 times more than annual premium inorder to claim tax benefits , at the moment its 5 times .
We have already done a video on how to calculate returns of policies using IRR , kindly go through the video on this article : http://www.jagoinvestor.com/2011/02/calculate-insurance-policies-returns-video.html
Also see http://www.jagoinvestor.com/2009/08/what-is-irr-and-xirr-and-how-to.html
Let us know what problem you are facing ? You need to do find out which option will lead to better results and better liquidity
Manish
DTC is going to be implemented next year. So if I think of closing LIC is it fine if I go for ELSS to save tax for this year or I should think for other option like PPF etc. I come in 20% slab.
I calculated Jeevan surbhi return with IRR formula and i am seeing returns of 12%
..surprising
Thanks,
Mahesh
Mahesh
As far as I know , this is applicable to current policies also .. Remember that when you buy something the benefits are subject to tax laws and its clearly in the contract .. How did you get 12% returrn on the policy , can you paste the cash flow year wise .. There might be some mistake
Manish
Manish,
..returns are coming to be 5.76%. Sound good to me ….he he
Sorry my mistake
So what would you suggest me to invest in, to save TAX and also to get good returns?
As already i have closed my previous LIC policy and loss was huge..so will think for this last policy of LIC . Also now I will have to take Term Insurance as I have not left with any life insurance policies (except Jeevan surbhi)
..Mahesh
Mahesh
Do you really think you had “INSURANCE POLICIES” .. they were all investment products
.
Go for a term plan now
Manish
Manish you did’t answered my question in previous comment? what should I plan this year to save my TAX ?
And Yes will go for term plan in few days.
Mahesh
For this , why not invest in some ELSS fund itself for saving tax
Dear Team,
Good Initiative….
I am reading your blogs for last two months. Today I came to know about Action Month & registered immediately for action – term plan which I m delaying for last one month. Need your help on deciding good life insurer.
Regards
Renuka
Hey Renuka,
Happy to see you excited about action month. All the companies are regulated by IRDA if you have high trust on LIC you can choose Jeevan amulya (term plan) , beware when the agent will come to meet you he will say what if i have a better product than term plan etc etc.
You can choose from companies Kotak, icici as well. They offer both online and offline policies. you can also split it into two companies if you want.
Do let us know once the action is complete
nandish
Thanks Nandish,
I m not Keen to go with LIC since last month only I had withdrawn LIC policies.
I personally feel that they are not Life Insurance Company they are Life Investment Company who are offering little bit insurance coverage.
Anyway, I will check with Kotak , ICICI & will finalize which is best suitable to my needs.
Will inform you about my action shortly.
Regards,
Renuka
cool forget LIC the focus is on getting insurance that is the outcome where all your energy should concentrate.
10 days remains for action month to get over so if you find people around you who can benefit share action month with them.
all the best
happy insurance
Hi Nandish & Jago team,
I had purchased ICICI Iprotect – option II term Plan SI-50 lacs for Just Rs, 9000/- only. Pls let me know shall sent cover note to you or otherwise.
Feeling good & adequately insured since I was paying 24k for just 5 lack cover in LIC in Endowment plan
Thanks for all the motivation.
Regards,
Renuka
Renuka
Great to hear that .. finally you covered your self with good cover . that will give you a feel good factor . We will soon take proofs from people who did actions in action month .. wait from us for some time , or just send it over to us . We willl look at it .
Manish
I would like to know the best Term Plan with following features if there great.
- Online Purchasable
- Low Premium
- Accident Coverage
- Health Coverage
- Covering Entire Family
JP
Term insurance is for one person , how will it cover whole family ?
Manish
Hi Jago Team,
Once again thanks for this wonderful initiative & my good wishes to the team.
My Action List
1. Organize insurance portfolio:
2. Buy a Health insurance cover (5 L) and term insurance ( 2*25 L)
3. Organize Financial documents / Preparing a Will
4. Open a/c with Funds India for investing in MF /SIP
Towards my first action , i have some querries .Here i goes
I have following insurance policies ( All from LIC) which I need to review & reorganize.
Basically all these are purchased without any due diligence and knowledge and when I was financially immature (Pre Jagoinvestor era)
1.Moneyback Plans –
a.Jeevan Surabhi – Policy Term : 25 S.A : 150000 Premium : 11716 Bonus Accrued : 74250 Start: 2001 End: 2019 Premium paid: All Paid (Regular)
b.New Money back – Policy Term : 25 S.A : 200000 Premium : 10421 Bonus Accrued : 63800 Start: 2003 End: 2028 Premium paid: All Paid (Regular)
2.Endowment Ass Plans –
a.Jeevan Mitra (Triple Cover) – Policy Term : 26 S.A : 300000
Premium : 15574 Bonus Accrued : 15000 Start: 2009 End: 2035 Premium paid: All Paid (Regular)
3.Endowment Ass + Whole Life Plans –
a.Jeevan Anand – Policy Term : 72 S.A : 150000 Premium : 6424
Bonus Accrued : 49350 Start: 2003 End: 2028
Premium paid: All Paid (Regular)
4.Term Insurance –
a.Anmol Jeevan – Policy Term : 25 S.A : 500000 Premium : 1678
Bonus Accrued : 0 Start: 2009 End: 2035 Premium paid: All Paid (Regular)
——————————————————————————————————————————————————-
Total S.A. : 13 Lac Premium outgo : 45813
My Queries:
1.Which of the above policies to surrender / hold / discontinue & when is the right time to do this.( i mean before / after buying new policies )
2.Which are the good companies / term plans and health insurance should I review / target?
3.Not interested in buying online and prefer agent / broker so any genuine referrals.
My Details: which you may need before recommending Age: 36 yrs. Married Wife: 32 yrs. Kid : 1 ( 1Mth old)
Thanks & Regards
Rishi
Rishi
1.You will have to do an IRR analysis for most of these funds .. do it by sseeing the video at http://www.jagoinvestor.com/2011/02/calculate-insurance-policies-returns-video.html
2. What study , findings have you done on this , did you see the kit we gave away ?
3. There are so recommendations here … you can go with some agent which is local in your place . the problem is never in agent , its you who have to be cautious
Manish
Dear sir,
I have already taken action. I have invested 670000 rs through STP-SIP in HDFC TOP200 FUND, HDFC PRUDENCE FUND, RELIANCE EQUITY OPPORTUNITY FUND, ICICI FOCUSED BLUECHIP FUND GROWTH, also I have invested in HDFC TAX SAVER growth plan an SIP of Rs 3000, ICICI TAX PLAN 3000 Rs . I have also done an FIXED DEPOSIT of RS 300000 in IDBI BANK at the RATE of 9.5% for five years & Maturity value is 4800000 Rs.
Anand
Good to see your actions .. Is your Life and Health Insurnace part complete ?
Manish
Manish,
I came through Jagoinvestor site since last 4-5 months & did not had ANY of the polices/investments given below. After the reviews on your site I have started the polices/investments in last 4 months:
Term Plan : SBI Smart Shield 40 Lakhs
Critical Illiness: SBI Smart Shield Critical Illeness Rider 7 Lakhs
Accidental Total Permanent Disability: SBI Smart Shield 30 LAkhs
Medical Insurance: MaxBupa Family Floater Gold 5 Lakhs
Oriental Nagrik Suraksha : 5 Lakhs
Mutual Fund SIP: Total 6500 p.m @ FundsIndia
DSP Top 100(G) – 1000
HDFC Equity(G) – 1000
HDFC Top 100(G) – 1000
IDFC Premier Equity(G) – 2000
Canara Rebaco Equity Tax Saver(G) – 500
Fidility Tax Advt(G) – 1000
PPF: 5000 p.m
Organise Financial Documents: I have taken all the photo copy prints & krpt them in a folder along with the Original documents. Also I have scaned them & stored in my PC & mail. I have done a list containing details about Policy/investment & important dates, premiums, etc. related to them.
Most important thiink I have done is that I have made my Wife aware of all these polices & investments details and educated her.
In future I’m planning to have one more Term policy as I think this is not sufficient cover & also I can devide this into 2 polices. Also want to start Gold Fund SIP.
I have filled my Tax returns online first time this year.
Thanks for your site & reviews by all members,
Bipin
Hi Bipin,
Considering you started reading JagoInvestor only 4-5 months back, this is great achievement! You are doing really good.
–
Santosh Navlani | moneysights.com
Bipin
Its great to see some great acitons you have already taken , what some poeple dont do in 4-5 yrs , you have done in just some months .. congrats !
Manish
Thanks Santosh/Manish,
Can you give your comments on my MF portfilio?
Or any investment/insurance related advice?
Thanks,
Bipin
Bipin
Looks good to me from a general view point .
Manish
Bipin,
Apologies for the delay in response. As Manish mentioned, its good from a general view-point. But if i go in specifics – you have Rs. 5k contribution into PPF, which is good. But your SIPs are all equity-led. i mean there is no portion allocated to debt or balanced funds. The reason i’m saying this is – your portfolio indicates that you are going to invest continuously for 3-5 years w/o bothering to redeem anything. If thats true, continue with this. If not, then think of adding a balanced fund or a debt fund in your portfolio. PPF part of debt is not redeemable for long periods.
Hope this helps…if you have just started, you may want to use monetsights reco engine for getting a portfolio made specific to your profile.
All the best!
–
Santosh Navlani | moneysights.com
hi, manish how r u, so nice ur comments on this blog
i am registered on jagoinvester for a long time,but only gathering information, but now i think i also have to take part in this wonderful action mela.
to start with i will 1st tell my position,
31 yr old with wife & kid (2 yrs), mother & father
working since 3 yrs, with a salary 7.2 lakh/ yr.
my uptil financial actions dont know good or bad
lic money back policy since 3yrs 64k/yr premium
hdfc youngstar champion children policy for kid since 2 yrs– 60k/yr premium
ppf since 1 yr — 70k /yr instalments
car loan left for 1yr 60k/yr
home expenditure 20k/month.
wants to take a term plan for me & my wife she is also working same as me
also in MF but do not have any idea about how & where to start and only registerd on kyc by my friend.
planning for home loan after 3-4 yrs , until how to invest in realty sector.
read soooooo many things about LIC and ulip plans
but could not come to dicision. plz help me to plan my disorganized financial plans, & 1 more thing being from medical grounds having half knowledge about everything, thats why more careful.
thanks a lot, waiting for reply
Hi,
I have closed my useless pension policies. I already putted a term with LIC.
Manish,
I agree Putting a Folder in place is a one time job.
I am still confused on the Portfolio Platform.
At present my Platform is split into say 3 platforms.The information so to say is fragmented.
I have ICICI Direct which gives me information on all investments thru ICICI Direct. Of course I can transfer my existing MF Portfolio from other sources. I have a Mutual Fund Platform which my agent Vistawealthcare Janakpuri, New Delhi provides me and which is automatically updated.
Finally I have consolidated all my MF holdings under Valueresearch Portfolio.
I need the Portfolio tracker for Investments as well as Tracking and generating say Quarterly and Year end reports.
Please advise how I should go about so that ”Main Jag Jaun”.
Thanks,
Sudhir Goyal
Sudhir
You can look at some desktop softwares which will give you the reports anytime you want .. try perfios which is online
Manish
Hi Sudhir,
i’m co-founder of moneysights.com & from your comment above, i can see you are primarily investing in Stocks & MFs. Have you tried aggregating all this in moneysights? We do have very interesting features + it also allows you to build your portfolio history – i.e. Profit/Loss booked, Dividends received.
Would be great if you try & let me know your views on the same. Thanks!
–
Santosh Navlani | moneysights.com
HI,
Thanks for your motivation, we finally zeroed on the kotak preferred and contcted the sales official anmd bought the term policy today. We have taken a policy for 50lacs for 25 years for my husband (age35yrs)
Please guide in few aspects..
1. since we have a private term policy and if we want to split between two companies we were planning to go for LIC jeevan anand. How about buying one more private one since the premium is low, lic gives 50 lac cover in about 19990, while kotak gave same in 10000. Also service in LIC is poor. Is it necessary to go for the expensive ones, or should we also consider oth private cheaper ones.
2, Since I am a housewife(age32), should we buy a term policy for me as well??
3. Also please mail me the action kit again, since the link is not opening.
4. Please guide on some good options for debt oriented investing oth than FD for a short term like one year!
Thanks
meera
Meera
Good to hear that . congrats
1) Dont buy Jeevan Anand , its not a term plan .. what you meant is “Jeevan Amulya” which is term plan from LIC ..
2) NO , you should not , you should take it only when some one is financially dependent on you
3) Already done just now
4) FMP or MIP
dear Manish
Thanks for your reply.
I just want to know if the term plans from private companies are safe then why is it advised to diversify in a govt one say LIC. How about diversifying in say Kotak and ICICI i protect.
thanks
Meera
Its not always the case .. people invest in LIC based on their trust .. if you are ok with private you can choose not to invest in LIC
Manish
I want invest in SIP and VIP , but how do I or where I get which SIP /VIP are better MFs to invest, if i ask LIC people they tell their own/ similarly others.If i want to compare and take decision, Is there any website which can inform me which SIP/VIP’s are better.
S Kotrappa
VIP is not always better than SIP , it only depends on the situation ! .
Manish
Hi S Kotrappa,
One makes more money by “keeping things simple”. At moneysights, we are not big fans of complicating the best mode of investment i.e. SIP. The more 1 stays “passive” in SIP investing, the better it is for the investor. Even by way automating, VIP is asking an investor to “confirm” his/her active management by choosing thresholds! Instead use top-ups/ 1-time investments whenever you see an opportunity. Borrowing from Tata DoCoMo, keep it simple, sillly
Coming to your main question – “from where you find which schemes are good” – may i recommend our site called moneysights.com. Try it out. Many readers of JagoInvestor community are big admirers of ours & i can personally assure that it won’t disappoint you either. You can find which Mutual Funds are good, get to know past returns, safety, downside protection they offer. And above all, it also allows you to track your existing investments in Stocks/ MFs, run a portfolio health-check-up & offer personalized portfolio recos + creation options – all automated.
Check it out – if it doesn’t solve any of your specific problems, feel free to comment here or email me on santosh DOT navlani AT moneysights DOT com.
Hope this helps.
–
Santosh Navlani | moneysights.com
Hi Manish,
My goal is to take the term insurance in this month. But a lot of un-answered queries make me delay it. I’m posting these queries below (plus my understanding so far) with a strong hope to get them answered
Details
.
=====
I am 29 and plan to take coverage of 75 lac, split in 2 (or 3 max) policies. LIC does not have any competitive product, hence though being the defacto insurer for most, I’m thinking I should not go with it.
Since I do not smoke, I want to take advantage of the policies which give benefit to people like me
I chose SBI Saral Shield and ICICI iProtect Option II with 24 lac and 35 lac. In addition accidental death rider would give additional 35 lac on death due to accident.
My questions are:
1. Does SBI provides online purchase of SBI Saral Shield ? I know that ICICI has that option for ICICI iProtect.
2. Besides giving right nominee details. What additional things I shall make sure so that the claim process is hassle free ?
3. Even after filling right details, who is the authority on top of these insurers whom the nominee can approach if they create problem in claims ?
4. LIC is coming up with online purchase of term plan. Any news about ‘Non-Smoker’ concession also?
5. In case of unfortunate death of me & nominee at same time, who can claim the amount? How different will be the claim procedure here ?
6. Assuming I buy the ICICI iProtect online, when will I receive the documents? What do I need to do after getting documents (I guess medical check) ?
7. Lets say after 15 years, I want to discontinue one of the policy, then will there be any charges / penalities (as per today’s law). What will happen if I simply stop paying premium because I anyway will not get any returns from it?
8. Since ICICI is a private company, who will take care of claims if it goes bankrupt or no longer exist at time of claim ?
Thanks,
Sundeep Gupta
Sundeep
1) NO , SBI does not have term plan online at the moment .
2) When you fill the form, make sure you give right and accurate info for all of these .. mainly you need to make sure you give details of other current policies , medical ailments of self and parents if any and other details which they ask
3) There is insurance ombudsman at top who can be approached , but he is not associaated with just one company , but all
4) There is no news on that .. and you never know how much time it will take to come ..
5) The money will then be claimed by the actual legal heirs , looks like you are not very clear about nominee and what is nominiee in real . you might be surprised to read this : http://www.jagoinvestor.com/2010/10/will-your-nominee-get-the-money-on-your-death.html
6) You can expect thigns to close in 1-3 months .. different people experience is different in this .
7) Yes , you can stop it just like that ,.. nothing will happen . but it would be a good thing to just inform the company that you will discontinue it . no penality or charges on this .
8) Dont worry on that .. its a wide topic to be discussed , but this will give some idea : http://www.r2iclubforums.com/forums/showthread.php/17833-Are-Private-Insurance-Companies-safer-compared-to-LIC-in-India
@Sundeep – Great that “ACTION MONTH” has given you the right impetus to go ahead with the pending plans..Lets go through all of your queries one by one
1. There are only a handful of companies, out of the current 24 players in the insurance market, which are offering online facility to buy policies and unfortunately in your case, SBI LIFE is not offering this facility..If you have shortlisted ICICI PRUDENTIAL’s IPROTECT you can buy that product online and for SBI LIFE, either you can log on to their site and put your details under the section “CONTACT ME” and somebody will give you a call or search for an SBI LIFE ADVISOR in your area and get your policy from him..
2. Besides right nominee details, the OTHER IMPORTANT INFORMATION that needs to be put correctly is regarding your MEDICAL HISTORY (Whether you had some major medical complication or you are suffering from some chronic illness or take medications on a regular basis) as well as your personal habits (Whether you smoke or consume alchol/tobacco) etc. Fill this information TRUTHFULLY and be rest assured..
3. If you have disclosed your profile honestly without hiding anything at all (By answering all questions in the PROPOSAL FORM honestly), there is VIRTUALLY NO CHANCE that your claim will be rejected. Even if so, there are appellat tribunals by the name INSURANCE OMBUDSMAN and IRDA where appeal can be made regarding insurance company’s decisions.
4. The only thing i can say is JUST WAIT & WATCH until the real thing comes out in the open.
5. In such an unfortunate scenario, claims can be made by your legal heirs such as your kids or your parents. Procedure will remain the same. Its just that your legal heirs have to prove to the company about his/her relation with you..
6. Insurance companies ALWAYS conduct MEDICAL CHECK UPs before issuing the policy. Its only after the medical checkups that insurance company comes to know whether the proposer is fully fit or not, for the policy. So you will have medical checkups first and then the policy will be issued. In most cases, TERM PLAN takes 15 to 20 days to be issued.
7. There would be no charges AT ALL as and when you want to discontinue the policy. Simplest way is stop making payment and automatically the policy will get closed..You are right, you wont be getting anything for closing the policy.
8. Is this is really a SERIOUS QUESTION??
ICICI PRUDENTIAL closing down or going bankrupt?? NO WAY AT ALL..ICICI is one of the STRONGEST financial institution of INDIAN ECONOMY and PRUDENTIAL LIFE is into INSURANCE BUSINESS for last 150 years all over the world..So relax and just go ahead with the policy. There is no question of closing down of the company..
Dhawal Sharma
URJA WEALTH CREATORS
Hi All,
@Manish . Thanks for starting this Action month.
Can you advise me which are the best ELSS mutual funds? last year I invested in Fidelity Tax advantage, HDFC tax saver and Can Robeco Tax saver. Should I continue with the same folio or can you recommend better MFs than these.
Thanks.
PRithivi
Better continue with them … HDFC Tax saver and Canara are good .. Invest more in them .. Fidility is also good ..
Manish
Hello Jago Investor Team,
Thank you for motivating people to invest and organize their financial life.
My tasks in Action Month were:
1)Get a term insurance
2)Start SIP in mutual funds and
3)Organize financial documents.
I have taken ACTION.
1)Applied for Amulya Jeevan of 50L for 30yrs and awaiting the policy document.Pray it does not get rejected.
2)Started SIP of 10K for 10yrs in 4 funds.
I already had mediclaim of 2L and will increase it to 5L at the time of renewal.
Now,the third task;I always keep my documents in separate folders i.e. one folder for bank,one folder for insurance etc. and place the folders in the same shelf.The logic is even if one folder is lost the other documents will be safe.Do you suggest me keep all the documents in a single folder?
This Action Month and Jago Investor in general made me more responsible in financial matters.How am I doing?
Regards,
Trishit Ray
Trishit
Good . .you are doing very nice and much better than others ..
I think you can maintain different folders if you are ok with it .. it might be a little overkill ..
What about maintaining two folders , one with Important documents and other with super important folders , thats all
Or one with original and other with Xerox ?
Manish
Hello Manish,
Thanks for your reply.
Now it might amuse you but I actually have one folder specially for xerox copies of important documents both financial and otherwise.Will work on making photocopies of the rest documents soon.
Good to get praises from you.Now what are the things that I should do to make my financial life even better?
Regards,
Trishit Ray
Manish,
Thanks a lot to you, switched from thinking & planning to doing
Just bought Max Bupa Heartbeat with Sum Insured Rs. 2 lakhs. It is in addition to what my organization already provides.
Next I have to buy a cheaper term plan; I already have one from Birla Sunlife which I bought 2 years back and is even costlier than the one from LIC.
I am yet to decide (calculate/analyze) on whether to keep paying LIC Jeevan Shree (table 12) after already paying for last 10 years.
Keep sharing your ideas & expertise with us
Vikas
Good to hear about your actions .. you better stop that Birla plan and retake a new one from some one else .. because the new premiums will be much cheaper for you ..
Better make your policy paid up and do away with it if you do not know how its helping you
Manish
Sir, thanks for starting this grt job. I have never seeen or read anywhere the good ways u suggest as to the how the investor should think about his investments cautiously. really I am impressed about ur work. I wish u all the best for this work. I wish to tell u about my all investments and expect u to guide me if I am on the right track. Thanks. Giri. RETD. Distt. Judge.
NT Giri
Good to hear that .. read more and learn more and spread more ,. for your presonal questions , please ask it on forum : http://www.jagoinvestor.com/forum/
Manish
hi,
where can i find my action Kit?
Prasad
When you regsiter for Action month .. you will get the kit in your mail
Manish
Thanks for forcing me to take some action.
1. Created my portfolio on moneysights.com (aprox 30lkh)
2. Moved 8lk saving account money to icici flexi liquid fund. will soon switch it to large cap fund.
3. already hold 50 lakh term insurance. Will purcahse 50 lakh more at the ned of this year.
4.Currently holding 7 mutual funds. need to reduce it to 4.
Hi Dhawal,
Can u refer somebody from Kotak to me for taking a term plan for me. I stay in mumbai. also i had querries
1. what is the maximum period allowed to make a claim after the death of a person. Also if the claim is not made in time then will it not be considered thereafter ?
2. What is the record of kotak during the bulk claims made during floods in mumbai, terrorist blast etc as this type of deaths were not covered at that time . Are this covered at present and are they mentioned in policy document ?
I am in a process to take a term plan of 50 lacs.
Regards,
Hitesh
Hi Hitesh,
Good to know that you have zeroed in on KOTAK PREFERRED TERM PLAN..Its one of the topmost ranked TERM PLAN by ET WEALTH and every other financial news channel/megazine..
Regarding two of your queries, would like to tell you that
1.) the IC-33 book (The course book for a person to clear INSURANCE AGENT EXAM) says that claim can be made upto 3 years after the death of the policyholder by nominee, assignee, legal heir..Claim made to the insurance company after 3 years of death of the policyholder, company has every reason to be suspicious and can investigate at their level as in the case of EARLY CLAIM (Death within 2 years of start of the policy)..
2) Death due to terror attack are covered by KOTAK LIFE INSURANCE, since 2008. Please click on the link below and read the statement by the then MD of KOTAK LIFE, Mr Gurang Doshi.
http://insurance.kotak.com/media/pdf/Kotak%20Life%20Insurance%20covers%20death%20due%20to%20terror%20attacks.pdf
Regarding your other doubts for KOTAK’s claim settlement ratio, here is another interesting article you can look into
http://www.onemint.com/2011/03/23/comparing-term-insurance-claim-rejections/
Dhawal Sharma
URJA WEALTH CREATORS
Dear Sir/madam
I have Health plus policy of LIC which is 3 year old now, recently got Family optima health plan of star health insurance. like to surrender the Health plus of LIC, paying Rs 5000 per year for myself. Not claimed anything from it. Is it worth continuing or better surrender? What will be the returns? Amount equivalent to Units allotted?
I have already started 10K SIP in HDFC top 200 growth fund.
What are the other best Mutual funds.
Ananda
DSPBR top 100 , birla frontline equity
I’m 46. Non smoker. Living in Singapore.
No investment/kidsplan/TermLife/SIP yet.
1)Which term life I can take? Which one better? Till 75 or 80 yrs. 1 cr. I wonder at 20 years from now what this 1cr is worth. So should I increase this.
2)kids savings/investment plan. For their life cover, get money along the way. can you suggest.
3)I dont know MF. People said they take money for management and I get less finally so didnt do this for all along. SIP is in MF?. I can do around 25K/pm.
4)Annuity – I want to save money and get monthly money of 30K from my 50th year.
ssk
1) You take life insurance from today’s point of view .. over the time you will also create wealth , which will make sure that you have wealth + insurance money for your family incase you are not there. Take term plan till the time you will be working , so if you are retiring at 55 , dont take insurnace for more than that period . there are many insurance companies , you can choose one of them whom you trust .
2) Mutual funds is the one thing which we suggest .
3) If you dont know MF , learn ! . Its the most important and best tool for wealth creation for a common man .
4) forget thinking like that as of now , just focus on wealth creation .. getting X amount from Nth year can be done later ..
Manish
Money sight has suggested we move out of the fund ICICI pru discovery G. The recommendation it said due to higher risks and lower returns in the fund.It made the portfolio very aggressive.
What is you review of this fund?? Is it worth sitting over the SIP and watching,
or should we exit since we have put in only 2-3 mths SIP exit load loss will also be less now??
It is a good fund and do not remove a fund, just because some site (for that matter, any site) has recommended. Ask Santosh for an explanation for that and if any particular change is “really” required.
Personally, I think that fund is a very well managed fund.
The reason the site may have given a sell signal would be because of recent thrashing of mid and small caps (which is main style of the fund), but you should think that you are buying a good fund at relative cheap levels!
Hi Meera & Ramesh,
Thanks to both of you to bring this topic here. Let me first address Meera’s concern here.
Meera,
If i understand correctly, you have “already” started SIP in ICICI Pru Discovery. On a standalone absolute, i believe its an excellent fund. No doubt on that. Even on moneysights, it stands tall with 5-stars on Return Grade. However, when it comes to “safety”, its not the best. And at moneysights, we prioritize “safety” over “returns”. The downward protection of the fund has to be excellent to get a super 5 on both grades – safety & returns. ICICI Pru Discovery, not fitting this criteria hence gets shown in “ORANGE” in Portfolio Health section. Here, we show we found better alternatives but at same time the caution isn’t RED as is the case with some funds. An “ORANGE” means be cautious….and if one bought this fund by mistake (i.e. not knowing its an aggressive VALUE fund), then sell it. However, i do accept that we HAVEN’T DONE THE BEST JOB IN COMMUNICATING this in these many words. We need to get better on that
Coming to the point of what to do now –
If you were aware that this is an aggressive fund & want to create an aggressive portfolio, stick to it & continue your SIP. If your horizon is 3-5 years, chances are very high you will generate excellent returns. But, if you were mis-sold this fund & your horizon isn’t that long or is less than 1-2 years, then i would recommend an immediate exit.
Ramesh,
This is just FYI. Our ratings work on past 3 years data. Recent thrashing may impact but that can’t bring down the safety grade from say 4-5 stars to 2 stars. And ICICI Pru is a value fund as per their SID. It actually doesn’t have a market-cap bias. In fact, as of latest portfolio available on moneysights, it has apprx. 27% in large cap while 33% in small-cap.
Meera/ Ramesh,
Please feel free to comment/write in case i have not addressed your specific query here.
Thanks!
–
Santosh Navlani | moneysights.com
@ Santosh
Thanks for communicating the answers.
I understand the basics of this particular fund. Value funds do tend to be relatively more volatile.
Ramesh
I agree with Ramesh regarding ICICI Discovery fund. It is an aggressive fund but a well managed fund of ICICI fund house.
I would suggest do not redeem right now stay invested continue with your sip
nandish
Thanks to all of you. The information has helped us understanding the fund clearly. We have decided to continue with the fund. We have a long term invetsment perspective.
Only thing I want to know now is that we started this sip to diversify our portfolio into the small n mid cap equities. As suggested this fund also has 27% in large cap. Should we take IDFC small n mid cap too in order to create effective diversification. Other funds we have are HDFC Equity G(5000), HDFC Top 200(3000), Franklin Blue chip(5000) , Icici focussed one time 25000. Bank FD 2 lacs, PPF 70000 for debt. Some endowment and ULIP policies of LIC, ICICI, and HDFC. Does the portfolio stands diversified enough.
Meera
The best way to look at diversification is to look at the underlying equity classes . See how much of Equity , debt , cash and real estate you have . Does that look ok to you ?
Manish
thanks Manish but vis a vis our mutual funds do you think they are diversified enough, since i am reading that mid n small caps are doing well should we start new IDFC too ??
Meera
Yes , its diversified overall .. but you have to see it from personal point of view , does that diversification satisfy your asset allocation expectations ?
Manish
Hi Nandish / Manish,
Thanks for the Action Month. Another good initiative from Jagoinvestor. I tried to Organise all my Financial Documents. But it still requires lots to be done from my end. Have to keep track of old investments already made & actions to decide on new investments to be made by me from now on in future.
Thanks for all the support, help & confidence you have given to take a fresh look on my financial health & wealth. Hope to hear more such initiatives from Jagoinvestor.
Thanks & Regards,
Manish.
I’m planning to take a health insurance. I’ve zeroed in on Oriental Insurance HAPPY FAMILY FLOATER HEALTH INSURANCE POLICY. However, I got a call from Oriental Bank of commerce and they have some tie up with Oriental Insurance company by which they are offering Family floater plan at a low rate for OBC customers. I’m curious to know the real differnce between the family floater policy offered by above 2 entity. Any help ?
I dont think you should get ahead with the “tied family floater” kind of policy . These kind of tied products are not too much good from feature point of view .
Sanchay
Great .. let me answer all in brief
1)
1) Accidental death rider means if you die by “Accident” , then you get “EXTRA” money . If you dont take it, you still get the base cover .
2) Critical illnes rider means , if you are identifie from a list of dieseses , then u get a lumpsum money .
3) Permanent Disability rider means , if you are get disabled partialy or permanent, you get sum assured in 10 equal installment as yearly income .
2) GOod
3) Dont get into too much “study” else you will be stopped . Just buy some good one’s . Dont get perfect .
Manish
Hi Manish,
Thanks for reply. I am confused about riders in term insurance, since you are expert in these topics, can you tell me which of the above riders are pratically good?
————
For mutual funds, I have finalized 3 funds
1)HDFC Top 200 Fund, 4000/-
2)HDFC Equity Fund, 3000/-
3)DSP BlackRock Equity,3000/-
I think there is not need to diversify MF SIPs in more than 3 funds, is it correct?
Sanchay
more than finding which riders are “good” , ask your self which of them are “required” in your financial life, All are good if you need them , all are bad if you dont need.
For MF, they are all good .
Manish
HDFC Top 200 and HDFC Equity are similar funds. No need for both of them in a portfolio.
Hi Sanchay,
The funds you have chosen are good. But as Ramesh rightly mentioned, 2 of the funds are quite similar. You may end up with lots of duplication. If you can tell me more about horizon, goal of investment & a bit about your risk profile, i would be happy to recommend a well-diversified portfolio. At moneysights, we have an algorithm-driven recommendation engine, which matches risk profile of investor with the risk of the funds & then systematically create a portfolio thats diversified across sectors, stocks, market capitalization + also reduces duplication amongst schemes! All this only to give the best recommendation possible, in a matter of seconds.
Looking forward to be of help.
–
Santosh Navlani | moneysights.com
Incorrect statement.
HDFC Top 200 is Large & Mid cap fund.
HDFC Equity is a Multicap fund.
Ram,
When you say HDFC Top 200 is a Large & Mid-cap & Equity as Multi-cap, you already have 66.67% similarity (mathematically speaking that is). In practice, you may want to look at Portfolio Holdings of these 2 schemes. i’m sure you would notice more than atleast 40-50% overlap, if not more. Also, Prashant Jain is common name behind the fund management. So, you are bound to see similar fund management strategy (nothing wrong in that at all).
When @Ramesh & myself said they are similar, we look at the holdings & say that. Hope you see where we are coming from.
–
Santosh Navlani | moneysights.com
1)HDFC Top 200 Fund, 4000/-
2)HDFC Equity Fund, 3000/-
3)DSP BlackRock Equity,3000/-
Which one is more similar? 1 & 2 or 2 & 3?
Hi Santosh,
Infact I used moneysights for analyzing MFs. It suggested IDFC funds also, but I don’t feel very comfirtable with that fund house.
There are multiple requirments, my age is 31 years, and probably I would earn till age of 55, i.e. 25 years from now. My objectives are:
1)Retirement corplus for 20 years are retirement.
2)Child education.
3)Child Marriage. (Low priority)
Otherwish list
4)Car of Rs. 5-6 Lacs in next 1 year
5)Having home loan, outstanding 21 Lacs,
I am planning to invest 10K/month in MFs, and 5K in PPF, 5K homeloan pre-pay. i.e. 20K in all.
Please comment.
Regards,
Sanchay
Hi Santosh,
I missed to mention few important points about me, which are crucial for this planning. Kindly reply to the above conversation. Waiting for your feedback.
Age 31 years
Married
Expecting a kid in Dec-2011 (Child education, marriage)
Dependent Mother
Regards,
Sanchay
Hi Sanchay,
My apologies, i haven’t been able to respond. Mondays are always choked at moneysights’ office
. i shall send you one by today EoD/ tomorrow.
–
Santosh Navlani | moneysights.com
Thanks Santosh, waiting for your reply.
Regards,
Sanchay
1 and 2 are very similar in holdings and majority style. While DSPBR Equity has a very different style.
Hi Sanchay,
Thanks for your patience. This info was helpful…but i guess other information like current monthly expenses, perceived monthly expenses in retirement, goal value of child education/ marriage would have been helpful to even arrive at right values to invest. In absence of this, i went with following assumptions –
1. You are currently investing 10k & gradually can increase monthly contribution by 10% every year for initial 10 years & then later on by 6% every year. This will mean that in your final working year you will be investing around 6 lakhs per annum.
2. My 2nd assumption is you will gradually reduce your equity exposure & have not more than 20% in the final years of working.
3. Because of (2) above, your returns will come down from about 13-14% in initial years to around 8% in final years.
The above pattern shall give you a corpus of around 1.8 to 2 Cr while your PPF will lend around 33 lakhs. All in all you will have a corpus of 2.5 Cr keeping the above assumptions in mind. Whether it will give you enough for retirement & child education would depend on your expectations of luxury/comfort during retirement & how much of your child education will come from you & how much from loan.
i believe even having this “basic” plan would be a good beginning to make. Once you start, review/monitoring/re-balancing can get you better stuff ahead.
On MF schemes, if you are yet to start, i would recommend the following 4 schemes with equal allocation on dates spreaded out evenly during the month -
1. HDFC Children’s Gift Inv Plan
2. HDFC Prudence
3. IDFC Small & Mid-cap
4. Birla Sun Life Dividend Yield
The above portfolio is an aggressive multi-cap portfolio with a small yet meaningful exposure to debt thanks to 2 aggressive debt funds….i recall you mentioned above that you aren’t comfortable with IDFC, but believe me this MF house has 1 of the best teams – i’ve met all of them in person. In case you still have strong apprehensions, let me know. The above portfolio is something i’m taking from moneysights reco engine available to everyone inside login. i will have to manually create a multi-cap, diversified portfolio with minimum duplication (which i don’t like given moneysights reco work pretty well w/o manual intervention
).
i have not considered car & other goals as info is insufficient. But as i said, this is a healthy beginning given the “Action Month”. Without pushing moneysights here for executing these transactions, i will be happy to welcome you as a transaction user in next 7-10 days, when we go live as a part of promotion going on here!
Hope this helps.
–
Santosh Navlani | moneysights.com
My apologies, there was a typo above – “The above portfolio is an aggressive multi-cap portfolio with a small yet meaningful exposure to debt thanks to 2 aggressive debt funds”…i meant 2 aggressive balanced funds.
–
Santosh Navlani | moneysights.com
Hi Nandish,
First of all, sorry for replying late.
Actually, I verified the funds on same day itself, and have zeroed in on them. Thanks for assistance, also, the planner on moneysights are very good!!!
Was curious to know how you arrived at 33Lakh figure for PPF, the following calculator shows different result.
Regards,
Sanchay
Hi !!Sanchay,
You statement ,was curious to know how you arrived at 33Lakh figure for PPF, the following calculator shows different result, Was this statement is not complete or will follow.
I am interested to know about it.
Regards
s kotrappa
The calculator….
http://www.themoneyquest.com/2009/09/ppf-calculator-interest-maturity-value.html