Hi,
I was evaluating the ICICI Life welth stage 2. My age is 32 years. I am planning to invest 50 K per annum. Now considering the charges like mortality 1.46 per month for 10,000,00 sum assured, Fund management charges (FMC) 1.35% per annum for the fund value and policy admin charges (PAC) of 0.47% of annual premium, it looks like total charges will be = Rs.4955 per year ( Mortality= 1.46x 1000000=1460, FMC= 1.35% of 50000 = 675,PAC = 0.47%x50000x12= 2820)
After service tax @ 12% charges per annum = 5550, which is aroundd 11% of 50000, this is exculding first time allocation charge of 2%.
So, 11% of my investment will be deducted as charges for sure. now, if I want ROI of at least 10 % then my fund has to effectively give a return of 21%= 11%+10%.
Now my question is does this funds really perform so well, please suggest me should I invest in this plan or not. Otherwise please suggest me some good plan, my primary objective is investment and tax savings, not insurance as I have taken term policy.