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POSTED BY ON February 22, 2014 10:09 am COMMENTS (16)
I checked the return rates of HDFC ProGrowth Plus ULIP for last 10 years and and it is 30% And the charges they cut are also less than other companies(ICICI, SBI, Aviva life insurance) . I am planning too invest Rs 2500 monthly in this ULIP for 15 years.
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i have purchased hdfc sl progrowth plus every year 100000 is it worth?
No
As Arun said above, the annualized return is around 13 % but not 30% which you thought.
If you want to invest in balanced fund, directly invest in HDFC Balanced fund, why to invest in a ULIP which in turn may (or maynot ) invest in HDFC Balanced Fund.
Also, I came to know that HDFC Mutual Fund is a fund in which is having more than 65% of investments in Equity stocks from the below article. So, if you invest for 1 year in this fund, there will be no tax.
http://www.tflguide.com/2011/12/mutual-fund-taxation-in-india.html
If you want to invest in Balanced Fund, pick a good fund from value research online and invest in it. HDFC Balanced fund is a fine fund with decent returns, but there are some other balanced funds which performed better than HDFC Balanced Fund in recent years, so the rating is less for it.
If you want to take insurance, take pure term policies. Don’t invest in ULIPs for insurance and investment purpose.
Regards,
Hemanth.
You can refer below link for this particular mutual fund performance
http://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=844
At this page I see that from 01-Mar-2004 to 01-Feb-2014 (10 Years) monthly SIP of Rs 1000/- making total investment of Rs 1,20,000 (in 10 Years 120 installments) has grown to approx Rs 2,42,000/- which means an annualized return of 13%.
Regards
Arun
Regards
Arun
You mentioned that
“i checked on above link where it shows absolute return of 319.7% for 10 years”
If you calculate annualized returns it is just 12.3% and not 30% so again the claims made buy the guy are false.
Beware of PolicyBazaar people. They make false claims to sale the policy for their commission.
Never ever invest in any of ULIP plans. The charges are always high.
Also there is no TDS on mutual funds. IT totally a false statement.
For direct types of investment in mutual funds and holding for more than one year there is no entry and exit load and also the returns are tax free.
At any time if you want to invest in stock market do it directly into stocks or buy mutual funds. For insurance part buy Term Insurance policies where you get Insurance for upto 1000 (Thousand) times of your annual premium. i.e. for Rs 10K you may get Rs 1 Cr insurance depending on your age and health conditions.
Regards
Arun
Hi Akgc2,
Where can i find this information that no TDS will be deducted(as u mentioned above) on Mutual Fund returns ?
These 2 links should answer your queries.
http://content.icicidirect.com/mutualfund/mfhelp.htm#q60
http://insight.banyanfa.com/tax-implications-of-mutual-funds-on-residents-and-nris/#
Regards
Arun
Dear Patrick, the called ULIP was not available even 5Y ago, how did you manage 10Y old data?
Thanks
Ashal
Hi Ashalanshu,
A policybazaar guy told me that balanced fund of HDFC ProGrowth Plus ULIP is same as HDFC balanced mutual fund and he showed me its performance on this link:
http://www.moneycontrol.com/mutual-funds/nav/hdfc-balanced-fund/MHD002
Dear Patrick, do you want insurance or investment or both? As far as the comments made by policybazaar executive, I think it’s a fit and proper case to report IRDA to cancel the license of policybazaar. Please do note, fund management of ULIP under HDFC Life insurance has nothing to do with the performance of HDFC balanced fund operated by HDFC AMC. In both cases, HDFC is the owner only but other than this, no similarity is there in the 2 things.
Thanks
Ashal
Hi Ashalanshu,
Actually i am only looking for investment but policybazaar executive misguided me. He told me that ULIP is better than mutual fund because no TDS is deducted on returns.
But here i got the truth.
Dear Patrick, as you are looking for return only and not insurance, please invest in the MFs directly. Which MFs to select to invest in, is a matter of separate discussion. 🙂
Thanks
Ashal
Hi Patrick,
I tried to check the perfomance of this fund in the below link, where I found different plans of this fund like balanced,blue chip etc. with different NAVs. In which option you wish to invest.
http://www.indiainfoline.com/PersonalFinance/Insurance/ULIP-Performance.aspx
Also, the 30 % returns that you mentioned is annualized or absolute ??
Can you please give the link where you have checked the fund performance for last 10 years.
Regards,
Hemanth.
I checked balanced fund of ULIP.
http://www.moneycontrol.com/mutual-funds/nav/hdfc-balanced-fund/returns-calculator-MHD002.html
i checked on above link where it shows absolute return of 319.7% for 10 years
and there is 1 more link:
http://www.moneycontrol.com/insurance/ulip/hdfc-standard-life-insurance-HD/hdfc-life-progrowth-plus-balanced-fund-IHD389.html
where it shows 11.50% for 2 years
Actually a policybazaar guy told me that HDFC ProGrowth Plus balanced fund is same as HDFC balanced mutual fund.
And he also told me that benefit of taking ULIP instead of mutual fund is that no TDS will be deducted on returns in ULIP.
I am wishing to invest in Income and Balanced fund