· ULIP – Unit Linked Insurance Plan
Eg: A combination of Insurance + Investment in Stock markets i.e. Say pay a premium of 50000/year for 10 years & you’ll get an insurance cover of 0.5 millons / 5 lacs and at the end whatever funds are invested & grown over a period of time are received by the investor.
Charges range between 2 to 30% per annum
· Mutual Funds – Mutual Funds are funds which are managed by fund managers who are financial professionals on our behalf.
Eg: I start investing in Mutual Funds @ 1000 per month, that fund will go into the pool of funds of the company & they will manage on behalf of investors like us.
Returns can be in the range of 10% to 30+% per year.
Charges are almost NIL (approx 1%)
· Tax Saving Instruments:
For getting tax benefits basic investment options are
1. Mutual Fund ELSS(Equity Linked Saving Scheme) with a lock in of 3 years.
2. ULIP – With a lock in of 5 years
3. PPF – Public provident fund, managed by Govt of India.
Returns in PPF are @ 8% per year. Lock in of 15 years with partial withdrawal allowed after 8 years.
· Company Fixed Deposits(FD) :
Similar like bank fixed deposits but here company issues with the help of financial distributors/agents,etc.
Eg: Company FD of TATA MOTORS was launched in 2009 with an annual return of 11.5% per year
· List of major Companies in the business of Mutual Funds, Life Insurance and General Insurance.
o Mutual Funds
§ Reliance MF
§ HDFC Mutual Fund
§ SBI Mutual Fund
§ IDFC Mutual Fund
§ Birla Sunlife Mutual Fund
o Life Insurance
§ LIC
§ HDFC Standard Life Insurance
§ ICICI Prudential Life Insurance
§ Birla Sunlife Life Insurance
§ TATA AIG Life Insurance
o General Insurance
§ Oriental India Insurance
§ New India Assurance
§ Bajaj Allianz General Insurance
§ Reliance General Insurance
§ ICICI Lombard General Insurance
Moiz Choolawala
Managing Partner
RallyIN Consultants LLP
Interesting
ReplyDelete