CNBC Your Money: Bank told me Wealth Maximiser plan 5 is better than the FD. what should i do?

My name is Mohini Singh from Meerut, U.P . I hold a saving account in ICICI Bank and want to make a FD. One of the representative told me about the Wealth Maximiser plan 5 that it is much better than the FD.
Kindly provide your assistance that what would be more beneficial for me.
Mohini Singh

The exact name of the fund is needed but Maximiser fund V is a 100% equity oriented ULIP fund which is part of ULIP plans issued by ICICI Pru Life Insurance company. The ULIP plan will have inbuilt insurance as well. It clearly is a mis-sale by the bank representative to position this as a “safe” alternative to a fixed deposit with the same bank.
If you continuously invest in the fund over the long term (10 years or more) it is likely to provide better returns than a fixed deposit but unlike a FD the returns will vary very widely year to year including years in which the fund returns are negative.
The miselling epidemic in banks has spread rampantly and had been widely reported in the media. You need to be careful when buying any such investment schemes or insurance product. Please consult your investment adviser when any such products are been offered to you.

CNBC Your Money: where to invest for good returns?

This is Sandeep Mishra running business. My contact number is 9545457922. Currently living in Pune, MH. I done investment in
1. SBI 1.5 lakhs yearly for 10 years. Life Insurance – 5 years lock in.
2. LIC money back policy.
3. ICICI health insurance 8k yearly.
But I am very confused about where to invest and get protected or get good returns.

You should never buy a life insurance policy assuming that you will get good returns. Insurance policy are only meant to protect you and family in case of uncertainty happen to your life. Both SBI and LIC money back policy will not give good returns if you have invested with that intention. However no details of the policy have been given it will be difficult to analysis the same. You can investment in mutual fund schemes via SIP route but that too also need an expert view because before investment decision are based on your risk taking ability, no. of year you want to invest and for what purpose you are investing. Please take help of any SEBI registered investment adviser or Certified financial planner before investing in any investment/ insurance instruments.

CNBC Awaaz Your Money: Please suggest me 2 schemes

Dear Sir/Madam,
I m Sanjay Sharma from Pinjore, Haryana.My contact no.is9729301560. Presently I have 3 SIPs running :
1. Axis equity fund growth – large cap
2. Axis mid cap fund growth – Mid and small cap
3. Franklin india high growth companies – Multi cap
Now i want to start 2 new SIPs. Please suggest me 2 schemes. (how are these two : Birla sunlife frontline equity fund – and ICICI focussed blue chip equity fund)

Firstly your investment decision should be based on the risk taking ability, goals and term horizon. Your existing investment schemes as good performing funds and good rated funds. Birla sunlife frontline equity fund and ICICI focused bluechip equity fund are large and mid cap equity fund and bit riskier. You can continue to investment in existing SIP schemes only. Diversification will be beneficial if you invest in different industries not in same category.
Investment in equity mutual fund may beneficial if you keep the investment for long term i.e. more than 10 years be a long term investment. However before selecting any fund you should first ask yourself why you want to invest and objective behind your investment

CNBC Your Money: How can i achieve my goals?

Uti sip 1000/- per month, franklin india me sip 1000/- per month mujhe 15 saal baad 20 lac chahiye 25 saal baad 30 lac chahiye.
rakesh kumar gaya bihar

It’s good that you have started SIP investment in Equity mutual fund to achieve your long term goals.
You have mentioned that you want to generate a corpus of Rs. 20 lakhs after 15 years. Assuming inflation rate of 8%, 20 lakhs will be equivalent to Rs. 63 lakhs after 15 years. Similarly 20 lakhs of that will be equal to rs. 6 lakhs in today’s terms. Assuming return of 12.60% in equity mutual fund, you need to start a sip of Rs. 4,000/-

For the other goal which you will require Rs. 30 lakhs after 25 years. Assuming inflation rate of 8%, 30 lakhs will be equivalent to Rs. 2.05 crore after 25 years. Similarly 30 lakhs of that will be equal to rs. 4.38 lakhs in today’s terms. Assuming return of 12.60% in equity mutual fund, you need to start a sip of Rs. 1,500/-

You can continue and increase you SIP allocation in your existing two mutual fund schemes.

CNBC Awaaz Your Money: Greece crisis effect on your portfolio

1)Greece issue – Consider this – a householder has expenses that are way above what he earns and he borrows to pay for these expenses and keeps on increasing his expenses as well as continues paying interest. He now has to borrow to pay even interest and cannot payback the principal. The only solution is cut back on expenses and earn more and use the surplus to pay off the debt slowly (with the creditors also agreeing to take less payment).

Earning more in government parlance is raising taxes and spending less is austerity measures – both are difficult and wildly unpopular.

2. If you are talking investment in equity then it should anyways be for the long term (10 years +) and should be invested systematically over a period of time. If you have a lump sum you wish to invest in equity I would advise that you put it into an liquid/income fund and systematically transfer to equity over a period of time rather than try to time the market.
3. I cant really speculate on the impact of Greece and I would think the long term investor too should not really worry overmuch about it.
4. If you build your equity portfolio systematically over a period of time and want to hold on to it for a long time then you should not really worry about momenatray impact on the equity portion. The only portion that you might seek to protect is your debt portion which you can move to the shorter end (liquid/Income) of the debt fund market. If a goal is due in the next few quarters you can hasten the tapering that might have already happened. These 2 (moving to shorter end of the debt market and hastening your taper for near term goal) is the only pro-active steps that a long term investor needs to consider , if at all.
5. Gold is like equity – build exposure systematically upto the asset allocation earmarked for it
6. & 7 – avoid knee jerk. Have an asset allocation strategy and you can rebalance at periodic intervals – say yearly – This off course is nearly impossible to do unless it has been planned in advance as it is scary for most people to invest more into equity when the equity markets are down . the standard re-action is to move to safety. That’s why a prepared financial plan with a prepared asset allocation helps you remain disciplined.

CNBC Awaaz Your Money: Where should i invest to earn maximum daily ?

As I want to invest money on daily basis, where should i invest to earn maximum daily ?

Depends upon the amount in your bank account daily and depending on the amount you can do a SIP daily or monthly into an appropriate mutual fund. Your investment decision should be based on time horizon, goals, risk taking ability. You should have a realistic assumption. It is possible to invest daily by way of SIP in mutual fund. Please consult a certified financial Planner/ Investment Adviser before starting any investment.


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