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POSTED BY ON May 7, 2012 7:43 pm COMMENTS (3)
Hello,
I have just purchased a ULIP policy Icici Pru life stage wealth plus as i am looking for investment horizon of atleast 10 to 15 yrs i am investing 2k per month, I also have a Jeevan saral which agin i pay 2k this, i Have taken this as my financial advisor said me, Now that i have hit your site i have found that ULip’s are still not the best investing tool. Please guide me if i stay invested in for around 10 to 15yrs will the returns be better than PPF, Also my risj=k taking capacity is high as i dont have any liabilities like home loan.
Regards,
Gajendra
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Dear Gajendra, theoretically it’s possible that your ULIP’s Eq. fund may beat PPF returns. But is it a fair comparison? The return of PPF should be compare in debt space & return of your ULIP’s Eq. fund with MFs.
Due to impact of charges, ULIP’s debt fund can’t beat PPF.
Take your own pick from the above.
I w’d ask you to think over this whole scenario. By the way what’s the sum assured in this ULIP & is it enough for you or your dependents?
Thanks
Ashal
I would say first look at the charges which was levied , now a days ULIPs are not that badly front loaded as it was before some years ago . If your target it to just beat PPF , I would say the ULIP will do the job , considering you choose to invest 100% in equity (it might be default option) .
Also make sure over next 2-3 yrs , you keep monitoring its performance . After 5 yrs , you will have a good idea if this ULIP is performing or not , when you can exit if you want !
Was it recommended by Financial Advisor or Insurance Agent? Well about surrendering- when did you take these policies. Check out how much would be your return if you surrender today.
15 years in ULIP. Can they beat PPF returns. One cannot give perfect answer as it would depend on market conditions. Generally equity in long term do deliver 12% or so. Again this is not MF where most your money get into equity. Here Insurance amount will be deduced before investing in market.. If i was you, i would have surrended if i could get to know if i would get my investment back. This is again on emotional front. It really hurts to loose money, i understand.