Shubh Nivesh – Suggestions

POSTED BY Navneet Kumar ON October 30, 2012 7:59 pm COMMENTS (9)

I have been contacted by SBI-Life and they are asking me to invest into this shubh nivesh. 1,00,000 per annum for 5 years and the return is of the order of 7.33lakhs+extra bonus(if any) at the begining of 6th year. I was optimistic about it. However, on reading posts here about it, I am confused as to what to do. 50% returns in 5 years on a recurring deposit type scheme seems quite good to me. Can someone please point out the negative points of this scheme? Waiting for a reply. 🙂



9 replies on this article “Shubh Nivesh – Suggestions”

  1. Dear Navneet, 13% return from a pure debt product & that too in an insurance policy. Is it looks real to you or your common sense is gone for a toss as usual like others?

    No way, I repeat no way, an insurance policy with pure debt exposure can return 13%. do not go by my words, purchase the plan, pay the prem. for 5Y & in year 2018, we w’d like to hear from you for your 13% return.

    If things are too good to be true………………………………….. should I complete the sentence for you or ‘ll you pick it up?



  2. Ramesh says:

    What is your age?
    What is the sum assured?
    Is the premium less than 10% of the sum assured?

    check the returns on this page:

  3. Arshad Mirza says:

    Hi Navneet,
    It seems you have already made up your mind for this insurance policy and looking for confirmation..
    This is a normal endowment policy and NO WAY you will get 7.33 lakhs + bonus by paying 1 lakh premium/year for 5 years. Isnt it too good to be true?
    You check the SBI website and they have clearly mentioned, on maturity you will get “Sum Assured + Bonus”. In your case (1 lakh annual premium for 5 years) Sum Assured will be approx 4 lakhs. You can do the math yourself..
    And if you are still not convinced, apply for the policy, when you get the policy papers, try to find out 7.33 lakhs on will not find it on policy papers….yuo will have 15 days to return the policy….
    for more info you can go to and search for complaints related to shubh nivesh…
    Good luck…


  4. Navneet Kumar says:

    Also, there is a clause about the interest earned through this scheme to be tax free 🙂 I guess that should be a reason to invest.

  5. Rosh says:

    Dear Navneet,

    SBI SHUBH NIVESH gives you the whole life cover according to the above brochure.

    The problem with such plans is that, the amount of life cover they provide to you with comparison to the life cover provided by the pure term insurance plans is much more.

    For approx Rs.6600/- PA of premium, this plan provides you just 1 lakh of life cover. Do u think this life coverage is enough for ur family incase if something goes wrong with ur life. But the pure online term insurance of Aegon Religare gives u life coverage of Rs. 75 Lakh for an annual premium of Rs. 6600/- for 30 yr old non smoking male. Think again!!!

    one more thing with this SBI policy u can expect moderate returns in the long run which is not more than 4-5%. my question is why not simply invest in PPF & earn 8.8% annual interest with tax saving??? Even bank FD’s are better than these plans.

    If u want guaranteed safe returns buy a term insurance & bal. amount u can either invest in PPF or bank FD.

    u can watch the following video & calculate the IRR (Internal Rate of Return) of this policy & you will realize why bank FDs are better than this plan?

    Hope this will help u to decide.



    1. Navneet Kumar says:

      Hi Roshan,

      I did calculate the IRR. It turns out to be some 13%. I honestly think this is a good investment. And as far as the insurance cover is concerned, I am not investing in this for it. I am considering it just as added bonus. Is there some hidden flaw which I am unable to decipher?


  6. Rosh says:

    Dear Navneet,

    Its a traditional endowment product. i call these are JUNK insurance plans & should be strictly avoided.. keep investment separate from insurance, dont mix them up!!! Buy a pure online term insurance, balance amount u can invest in SIP in Eq. MF.

    Term insurance + Eq. MF + PPF is a best combination. Happy investing!!!



    1. Navneet Kumar says:

      Hi Roshan,

      I am aware of the insurance part this brings along. But what about the profit it is giving. That I am finding hard to ignore. With the current inconsistent market, if this plan is giving me 2.33 lakhs on a recurring deposit of 1 LPA for 5 years, do you still think it is a bad investment?

      Thanks for the prompt reply,

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