HDFC offering Infinia against investment - is it worth it?

[Lobogris]

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.

I don't need liquidity for such a small investment. I am perfectly fine without access to it. In addition, if it grows to 75 lakhs or 1 crore, it would make very little difference in my financial goals. As I have stated time and again, if this is the only investment you have or if it is a sizeable portion of your portfolio, then avoid it.

 

[amitr29]

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.

Absolutely.. Importance is understood only when something happens

 

[_ayush]

I don't need liquidity for such a small investment. I am perfectly fine without access to it. In addition, if it grows to 75 lakhs or 1 crore, it would make very little difference in my financial goals. As I have stated time and again, if this is the only investment you have or if it is a sizeable portion of your portfolio, then avoid it.

Your case is like an outlier. But even for such people, wouldn't it be better to go for other super premium cards like M4B? Also I am assuming for people with a portfolio of your size, there would be better ways to acquire Infinia than ULIPs.

Slightly off topic but since you said a difference of 25L wouldn't cause a huge dent in your financial goals, does it really matter to you if you are earning 6% more rewards on some vouchers?

 

[AritraSaha]

Yes this is 💯 Correct..
Never ever take CC against any type of Insurance investment.. you will always lose majority of the money…Never do anything in desperation..

I am one of those desperate people on this forum who took Infinia against ULIP…

Just earn your Infinia or Infinia Reserve (may be in future) in the traditional way.. (I.e. via, card upgrades, LE, spending criteria , spending years etc ) …this is much more profitable.. at least you won’t lose your investment money…

Be cautious and be safe and there by be HAPPY…

What happened? 🤔

 

[Lobogris]

Your case is like an outlier. But even for such people, wouldn't it be better to go for other super premium cards like M4B? Also I am assuming for people with a portfolio of your size, there would be better ways to acquire Infinia than ULIPs.

Slightly off topic but since you said a difference of 25L wouldn't cause a huge dent in your financial goals, does it really matter to you if you are earning 6% more rewards on some vouchers?

No, the rewards don't really matter financially but are obviously good to have. M4B would have been a good choice but it's no longer offered for free. In any case, Infinia is more versatile. The point isn't that a person should have a 50 or 100 crore portfolio. There are so many scenarios. Let's say a person has been investing only in FDs and has 30 to 50 lakhs there. He hasn't entered the market and is hesitant or lazy. Now he takes such a plan and ends up making 10% instead of possibly 12% via direct route. So in such a case, it would also be a good alternative.

In my case, I was stuck on HDFC Moneyback with just 60k limit for 1.5 years. Despite repeated requests and branch intervention they weren't even willing to upgrade to Millenia, let alone Infinia. I was an Imperia customer with a decent NRV plus stocks and bonds in their demat account but to no avail. So paying a couple of lakhs for it was a no brianer. I would have happily invested 50 lakhs or even more if they could have provided it.

 

[SSV]

What happened? 🤔

Nothing happened and nothing will happen to me..
Those advises are for those who don’t really require Infinia…

 

[SpiesCan'tCatchMe]

So I visited the gurgaon branch and an employee there promised me to get infinia if I give them some business be it huge ip while opening account or some other form of investment. As it's a new branch so I think they can bend the rules a Lil bit of we direct them properly
Also it's March 😌
I have the employees contact details
Can I share it here ?
@vaibhav111 any rules im breaching?

 

[Shroud]

So I visited the gurgaon branch and an employee there promised me to get infinia if I give them some business be it huge ip while opening account or some other form of investment. As it's a new branch so I think they can bend the rules a Lil bit of we direct them properly
I have the employees contact details
Can I share it here ?
@vaibhav111 any rules im breaching?

Please share in DM.....

 

[SpiesCan'tCatchMe]

Please share in DM.....

Okay I'll DM then

 

[helloworld]

For those who can refer and base for further calculation:

- It took me 5+ years to upgrade from Times Card to Infinia through usual upgrades and LE etc.

and following table shows the amount if you kept in savings account like IDFC, AU etc. banks and

tax at 20% on interest



tax at 30% on interest



So, do your own research and go for it only if its within your budget. IMO.

 

[shashankrt]

I don’t take anything serious at all , as long as the subject was discussed…
and people should make their points consistently in the right direction while expressing their views….

In one post you said we don’t know what happens to Infinia after Infinia reserve was announced.. citing DCB devaluation…

In another post it’s okay to take with 1L ULIP…
If there is going to be devaluation in infinia why to take with 1L ULIP??
Or this devaluation risk only applies to infinia and it doesn’t apply to any other card we apply??

anyway, there is our lovely mate @amitr29 saying no matter what type of insurance investment we take there is always going to loss for the customer …
With these points taken into consideration, I think it is safe to say that no matter what ever is the investment amount on insurance policy taking Infinia against insurance is a loss making decision especially when Infinia is going to be devalued soon…

😉

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

I have been mentioning same in other thread where similar discussion came up. @S S V - ULIP are only ok (and strictly ok not good) if you plan to hold till maturity. Even in that case you will lose significant amount compared to MFs and will have negative returns if markets dont gain atleast 15 percent in 1st year of ULIP purchase.

Unfortunately bank RMs are basically baiting ppl in to ULIPs by saying cancel after 3 yrs or after 1st year. That is sure shot way of having 20% loss in any scenario !!

Also for cards like infinia, magnus, amex plat - if you need "investment" (that too in ULIPs or endowment) then the card is not worth it !! Remember insurance is insurance and not an investment. Its meant to safeguard you from unfortunate events and often has to be a SUNK cost.

If anyone needs insurance + investment - above plan works wonders where you get term plan + MF.

 

[SSV]

I have been mentioning same in other thread where similar discussion came up. @S S V - ULIP are only ok (and strictly ok not good) if you plan to hold till maturity. Even in that case you will lose significant amount compared to MFs and will have negative returns if markets dont gain atleast 15 percent in 1st year of ULIP purchase.

Unfortunately bank RMs are basically baiting ppl in to ULIPs by saying cancel after 3 yrs or after 1st year. That is sure shot way of having 20% loss in any scenario !!

Also for cards like infinia, magnus, amex plat - if you need "investment" (that too in ULIPs or endowment) then the card is not worth it !! Remember insurance is insurance and not an investment. Its meant to safeguard you from unfortunate events and often has to be a SUNK cost.

If anyone needs insurance + investment - above plan works wonders where you get term plan + MF.

Thank you very much for the info and your concern

 

[Lobogris]

I have been mentioning same in other thread where similar discussion came up. @S S V - ULIP are only ok (and strictly ok not good) if you plan to hold till maturity. Even in that case you will lose significant amount compared to MFs and will have negative returns if markets dont gain atleast 15 percent in 1st year of ULIP purchase.

Unfortunately bank RMs are basically baiting ppl in to ULIPs by saying cancel after 3 yrs or after 1st year. That is sure shot way of having 20% loss in any scenario !!

Also for cards like infinia, magnus, amex plat - if you need "investment" (that too in ULIPs or endowment) then the card is not worth it !! Remember insurance is insurance and not an investment. Its meant to safeguard you from unfortunate events and often has to be a SUNK cost.

If anyone needs insurance + investment - above plan works wonders where you get term plan + MF.

Infinia isn't meant for people who are worried about 20k pr 30k per year. If such a small notional loss or gain is a lot for you, then definitely stay away from any investment route. It's hilarious how people are getting so worried about a tiny investment per year to see how much difference there would be in returns.

 

[anirban.choudhuryanirban.choudhury is verified member.]

I read in this forum that we can get Infinia by investment route. I enquired about it with bank. They are offering Infinia if I invest 1.5 Lakh/year (earlier they were demanding 2 Lakh/year, but when I declined they came down to 1.5, and now they are eager to sell the policy, calling multiple times a day saying they got approval for Infinia). They are saying I can surrender the policy after 3 years and get the money back. I have few questions: How much money I will get back if I surrender the policy after 3 years (they are claiming I will get back 6-6.5 lakhs) ?
Is it worth it to invest 1.5 Lakh to get Infinia? I have Regalia Gold.
Thoughts and suggestions are appreciated.
Note: Infinia offered is not LTF. They are claiming RBI made some rules, so they cannot offer LTF for super premium cards.
Policy offered is Sampoorna Jeevan

1.5 lakhs ULIP to get a paid card ???
I would say even if there are offering it LTF , it's a big no.
Even for 3 years that's like 4.5 lakhs

Infinia is not that rewarding credit card , you would never recover the cost of acquisition

 

[_ayush]

Infinia isn't meant for people who are worried about 20k pr 30k per year. If such a small notional loss or gain is a lot for you, then definitely stay away from any investment route. It's hilarious how people are getting so worried about a tiny investment per year to see how much difference there would be in returns.

I mean infinia is only good for buying vouchers from gyftr. Assuming you get around 6% extra on Infinia, you have to buy vouchers around 6 lakh to save 30k on it.

 

[ksaravanan48]

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.

I'm paying ULIP for last 5 years. I got 18 percent XIRR return and getting 10 percent cashback through airtel axis card. I think ULIP investment is good option but lock in period is 5 years. That is bad.

 

[HumorSimpson]

I mean infinia is only good for buying vouchers from gyftr. Assuming you get around 6% extra on Infinia, you have to buy vouchers around 6 lakh to save 30k on it.

For frequent travelers it might save more. Only GVs point of view, it isn't worth unless LTF.

 

[jack333]

So, in first year you invested only 87 percent. If you consider compounding, you returns will be very low compared to MF. Second year 95% and then 95%.

It's not about returns but the initial amount invested. It's not they deduct these charges from profit, but initial investment. That makes the whole difference and where client is at loss

Yes very true. Due to compounding amount invested yearly will be 88,82,78,75% and so on

 

[SSV]

I mean infinia is only good for buying vouchers from gyftr. Assuming you get around 6% extra on Infinia, you have to buy vouchers around 6 lakh to save 30k on it.

Yes very true. Due to compounding amount invested yearly will be 88,82,78,75% and so on

Yes Infinia is a waste card, it’s only useful for GVs..
Anyway why do anyone want to buy GVs…
Magnus for Burgundy is enough for everything..
I don’t know why everyone is after Infinia and
Everyone is spending tens of lakhs of rupees for LE and Upgrades to get Infinia..
How stupid are they?

Infinia is not useful even given as LTF..
Why one need Infinia LTF when you can get SBI CB card LTF…

 

[_ayush]

Another benefit of not taking ULIP is you wont feel offended by someone's POV 😝