I am a NRI. I have to invest IRS 3.75 lakhs in good scheme. LIC Market plus agent promissed me 16% int. 3 year?



After 3 year what is net payment after tax deduction? Is ther any other better scheme for investment?

I am a NRI. I have to invest IRS 3.75 lakhs in good scheme. LIC Market plus agent promissed me 16% int. 3 year?
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6 Replies to “I am a NRI. I have to invest IRS 3.75 lakhs in good scheme. LIC Market plus agent promissed me 16% int. 3 year?”

  1. Do not go by such flashy rates of interest. There is no such scheme offering such high rate of interest. LIC agent must be looking for his commission only. As an NRI use the amount to invest in stock market as India as an economy is doing the best among all global economies.

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    Analyst
    Indian-Share-Tips.Com
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  2. YES LIC IS THE BEST OPTION FOR INDIA FOR INVESTMENT AND VERY VERY SOUND FIANCIAL INSTITUTION … PROMISE OF AGENT IS SEEMS LIKE HE IS UNMATURED AGENT.. ELSE THEY NEVER PROMISE FOR INVESTMENT RETURN SUCH A HIGH… THE FACT IS IT MAY GIVE YOU GOOD RETURN


  3. Is that 16% at the end of three years or 16% per annum? If it is the former, its very low.

    LIC Market Plus is a Unit Linked Insurance Plan. All ULIPs (like LIC Market Plus) give you non-guaranteed returns. As it is a Unit Linked Plan the returns are dependent on stock market movements and the investment fund chosen. Although the markets in long term tend to give good returns, returns are not guaranteed.

    If you re looking at guaranteed returns, State Bank of India offers 7% per annum for term deposits of 3 years. That would mean a total of 21% returns at the end of three years, if you are averse to risk.

    Again, if you re looking for guaranteed returns from which no tax is deducted at source, you could also look at the Kisan Vikas Patra offered by Post Offices where you money doubles in 8 years and 7 months. There is no tax deducted at source. If you do the math, you ll see that the rate of interest comes to around 11.65%, if you remain invested for the above period. Not much, but it is guaranteed by the Government of India. And there is no tax deducted at source. The only problem is, you would have to stay invested for atleast 2 years and six months. If you decide to encash after 2 years and six months but before 8 years and 7 months, the rate of interest offered on your deposit would be calculated at 8.40% compounded annually. This is probably the highest guaranteed returns without any tax deductions.
    http://www.tamilnadupost.nic.in/fsvc/banking_kvp.htm

    If you re willing to risk your hard earned money, I would recommend SBI Mutual Funds, especially the Magnum Contra, where annual returns can be as high as 60-100%. Contact an SBI MF manager who can provide you with official literature pertaining to historical fund performance, returns, tax benefits as applicable etc. and who can also help select the right fund for you, depending on your investment period. But then again, keep in mind that nothing is guaranteed, everything depends on the stock market. Although there is a recession now, India is a growing economy, so in the long-term, prospects are bound to be bright.
    http://www.sbimf.com/contactus_location.asp

    Please remember that its your hard money, so its best to do your research beforehand and arrive at an informed decision, instead of going by the tall claims of agents and sales personnel who are simply in it for the commission as opposed to those who genuinely want to see your money grow.

    Here is a link that might help you with your research, just in case you decide to invest in Mutual Funds after analysing the market risks involved.
    http://www.moneycontrol.com/mutual-funds/performance-tracker/eqd/ab


  4. Dear,
    Market plus is a equity related scheme nobody can predict what will happend after three years. You know that SENSEX was below 7000 a year before which reached again 17000 .It may go back to the 7000.
    so invest dont expect any how its a good scheme.
    If you are ready take risk so invest in good performing diversified equity mutual funds.
    good luck





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