sidp
TF Legend
If you had read the comment you have quoted, not even fully, just the highlighted part, you would find we both are in agreement.
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HDFC offering Infinia against investment - is it worth it?
- Thread starter credit_explorer
- Start date
Deleted member 16961
TF Buzz
My opinion, don’t go for ULIPs or Endowment plans. Go for mutual funds, that too should be Direct funds not Regular funds which banks provide. Regular plans expense ratios are higher than the Direct plans. Purchase directly from banks AMC website.
Sir, all these charges are refunded actually 2x if you hold the instrument till maturity. In addition, mortality charges are refunded as well. So some of this notional loss is recovered. In addition, it depends on the person’s financial situation. If the person only has 2 to 3 lakhs max per year to invest and this amount has been saved with a lot of difficulty, then a ULIP isn’t the best alternative. In fact, in such cases, even equity is risky as the person has little savings. However, if a person already has substantial savings and investments, then getting a slightly lower return on a couple of lakhs isn’t as big of an issue. After all, people keep money in savings accounts, fixed deposits and other things. Everything isn’t invested in mutual funds. Otherwise we would never buy a new phone, laptop, car or go on vacation as all that means a loss compared to investing in mutual funds.
Yes, investing is very much subjective like other aspects of life.
why will anybody even if he has lots of wealth settle for lower returns?
Brother you can see the inflow in share markets & other instruments like FDs & safe instruments, you'll get your answer.
Psychology is the answer here.
People keep checking the value on a daily basis & that gives them anxiety to a lot of them.
So,they don't opt for them & go for fixed thing.
It's my opinion.
Like everyone is not build for business due to its ups & downs,same is with the investing.
No.. Never...
Againts FD It's Still Safe... Againts Balance Its Still Safe..
But Againts Any Policy then You will Regret for sure..
HumorSimpson
TF Prestige
Well said..
Panic buying & panic selling does not make one an investor.
Patience is the key in the market.
HumorSimpson
TF Prestige
Fintos here have patience in waiting for their bargundy points to show up after 3 months and accumulate over an year, but not for investments.
It's not that simple. These features exist only in few of the plans including yours, but the majority plans in the market don't have them. Also, if x amount is deducted today and refunded as 2x after 10 years, same x amount invested into the market from day 1 would've compounded to 3x or 4x along with your initial invested corpus. This also depends on the amount and time as well.
I agree....... This is highly subjective......
Because it also greatly depends on your goals, patience, risk appetite, age, purpose etc. No one seeks the highest possible return from every investment instrument throughout their life.
But other low return instruments offer something else. Eg - People invest in FDs as it can be easily liquidated. I understand its important to diversify the portfolio but if you are going to lock-in your investment for such a long time, I feel like there are better alternatives than ULIPs. And it isn't even diversified since you are investing in market again.
Also of we wait for ULIP to mature we lose money in compounding. Eg - 20k per month SIP would give 1cr in 15yrs at 12% but 75L at 9%.
Another thing I feel is we miss out is that there are better cards in most categories. Infinia only beats all other cards in Gyftr only. And in a couple of years even that might not be the case.
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What's wrong with MF and Term plan combination? That's the best one can go for.
Firstly, no compulsion of paying certain amount every year.
Secondly, low charges and higher death cover and low mortality charges.
Thirdly, if any year one has more savings, he can easily increase that amount in particular year.
Lastly, one can every year take a call to invest in different instruments, basis market conditions.
We are not discussing Investment here, but merit of investment in ULIP just for a credit card. Which will always be loss making.
If I invest in MF , say 2 lacs every year, I will pay only 2% as charges. But In ULIP, I am already down by minimum 12% in the first year itself. So, effectively my first year returns have just gone into charges, resulting in lower investment amount.
So, committing for a fixed amount yearly, at low returns and higher charges, it is justified?? Mostly no and off course there are few exceptions
Firstly, no compulsion of paying certain amount every year.
Secondly, low charges and higher death cover and low mortality charges.
Thirdly, if any year one has more savings, he can easily increase that amount in particular year.
Lastly, one can every year take a call to invest in different instruments, basis market conditions.
We are not discussing Investment here, but merit of investment in ULIP just for a credit card. Which will always be loss making.
If I invest in MF , say 2 lacs every year, I will pay only 2% as charges. But In ULIP, I am already down by minimum 12% in the first year itself. So, effectively my first year returns have just gone into charges, resulting in lower investment amount.
So, committing for a fixed amount yearly, at low returns and higher charges, it is justified?? Mostly no and off course there are few exceptions
bad for agents
Yes, there is fees which is not much Approx Rs. 500 but premature withdrawal has charges and are included in surrender value
HumorSimpson
TF Prestige
Many are inclined to think that, survivor doesn't get any benefit at the end of the plan. This is equivalent to saying, I am paying 8K pm for the security guard and theft didn't happen, why I need to pay him then.
Th
That's true with health insurance also, if one doesn't get hospitalized or Car insurance, if there is no accident 🙂 But we still continue to pay premium
HumorSimpson
TF Prestige
The 80C has ruined the thinking rationale of term insurances.
It took a pandemic to understand their importance. Many friends in my circle, started thinking to get 1Cr+ term insurances seeing the miseries of the dependents of COVID deceased. The so called 'Jeevan XYZ' plans, that give 10-15Lakh, hardly gets thru the last rites and the medical bills.
Like I said, if the extra 20 or 30k of possible return per year is significant for a person then he shouldn't invest in a ULIP or even equity for that matter. It makes absolutely no difference to me. I don't need liquidity for such relatively small amounts. If I only had a corpus of 2 lakhs or even 20 lakhs, I wouldn't invest in ULIP.
