Correct ULIP / Investment for my pocket

POSTED BY Vijay ON January 14, 2012 12:49 pm COMMENTS (7)

I am a 29 yr old Merchant Navy Officer.

I am current portfolio is:
1. PPF: 70,000 p.a.
2. Canara Rebeco Equity Diversified Growth – SIP 2000 p.m.
3. Canara Robeco Force Retail Growth – SIP 2000 p.m.
4. LIC Jeevan Anand – 10,400 p.a.

On my last visit to my bankers HDFC and ICICI, the following plans were presented to me:
1. HDFC Pro Growth Super II
2. HDFC Crest
3. HDFC Savings Assurance Plan
4. HDFC Classic Assurance Plan
5. ICICI Pinnacle
6. ICICI Return Guaranteed Fund

I prefer keeping my investments and Insurance separate. Moreover since i am out of the country for most of year i am unable to track my investments (switching, etc).

I am planning to buy a term plan from ICICI for a cover of 1 Cr.

Kindly advise a financial plan for me. Are the above mentioned HDFC & ICICI plans suitable for me keeping in mind i cannot track my money for most part of the year.

I am looking to invest 50k per month with a target of 4-5 cr after 20 yrs. Kindly advise.

Thank you.

7 replies on this article “Correct ULIP / Investment for my pocket”

  1. Vijay says:

    Thank you for all the advise.

  2. Dear Vijay, Please do not invest at all if your time horizon is just 1-2 years. You are playing with fire for that ultra short term for Eq. investing.

    All that I can offer to you.

    Please invest for at least 7-10Y view in Eq. nothing less.



  3. Vijay says:

    I will start investing in the funds you suggested.

    Since i can digest some risk for a limited period, say abt 1-2 yrs, will it be advisable if i also invest in the funds i mentioned and review the profit/loss a year later and transfer the profit (if any) / close the fund and add it in the more stable funds as you suggested.

    So my question is, in your opinion the funds listed by me in my last query are suitable for investment for the next 1-2 yrs looking at a volatile market?

  4. Dear Vijay out of the 5 funds selected by you, 2 are sectoral funds FMCG & Phrma & in a sense are defensive funds, In case of market volatility, both these funds ‘ll perform better than any normal fund. Same is reflected in the performance you are mentioning for short term.

    IDFC Prem. Eq. is a mid & small cap fund & hence more riskier than the other funds offered by me in my prev. reply.

    Ipru Focussed Bluechip fund is an aggressive kind fund as it ‘ll make concentrated investment in 25 large cap stocks only at any given point of time. So risk is again high for an ordinary investor.

    Mirae Asset India Opportunity fund is relatively a new comer against all other funds hence no comments.

    If you can digest the risk (Please do note here risk means, your capital may become 1/2 within a short span of time say 6-9 months depending up on the adverse market conditions) , you may invest for your choice of funds.

    By the way as far as I know, any tall skyscraper needs a solid foundation. Take your own pick how high you want to go & what ‘ll be the foundation?



  5. Vijay says:

    What are you views regarding the following funds:

    1. ICICI Pru FMCG Fund- It is sector specific but, it has consistently given returns since inception. A return of 8.3% in the volatile 2011.

    2. Reliance Pharma Fund

    3. ICICI Prudential Focused Bluechip Equity Fund

    4. IDFC Premier Equity

    5. Mirae Asset India Opportunities Fund

    All the above are Ranked 1 on and have shown good performance over 3-5 yrs as well as on short term basis.

  6. Dear Vijay, as you said that you are planning to go for a term plan from ICICI, I assume you are comfortable with ICICI. Please opt either offline mode I-Care or Pure Protect Elite as your term plan from ICICI.

    Regarding investments – If you are ready to invest 50K mly, please do not invest in any combo policy which are short on both counts, less insurance & even lesser investment (read maturity amount).

    Please invest on mly basis in following funds

    HDFC Top 200 Growth
    Franklin India Bluechip Growth
    Quantum Long Term Eq. Growth



  7. Ankur Lakhia says:


    As you rightly said, insurance is better kept separate to investment and buying term plan would be the best option for insurance. I do not see any issue with ICICI for term plans. However, I would personally go with good old LIC as it might be relatively more simple & easier to get help for my dependents if they need to claim money.

    For regular investments for 20 years period, best option, in my opinion, would be to do SIP of 3 or 4 diversified equity mutual fund schemes. (I presume here that you woud be alright with ups & downs of equity markets.). My choices in this regard would be HDFC Top 200 & DSPBR Top 100.

    Please beware of any plans presented by bankers as, most likely, such plans would suit more to their interests than yours.

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