1. Fears guide us towards sensible choices. I listen to my fears, realizing they are in place to save me from disasters.

    You have fears but for some reason are reluctant to listen to them. These are your very own instincts talking to you. You need to listen to them!

    Good, sound investments result from smart decisions which follow intense study and consideration. Fears develop when either we remain confused after due diligence or we haven’t done explored things sufficiently. I’ll let you decide which of these fits you.

    But I’ll urge you to listen to your instincts for they’re the best friends you could ever have.


  2. Sebi bans ULIPs of 14 pvt life insurance cos:

    TIMES NEWS NETWORK 10.04.2010

    Mumbai: In a significant order late on Friday,market regulator Securities and Exchange Board of India (Sebi) banned the issuance of Unit-Linked Insurance Plans,popularly known as ULIPs, by life insurance companies.
    Sebi has asked 14 private insurance companies, including market leaders like SBI Life, ICICI Prudential Life and Reliance Life Insurance, not to issue any more ULIP products. Interestingly, the Sebi order does not cover state-owned insurance major Life Insurance Corp of India (LIC). There is no immediate clarity on the fate of the existing products.
    At present, over 70% of the new business premium for most insurance companies come from ULIPs, running into thousands, if not lakhs of customers.
    The genesis of the Sebi order goes back to the feud between mutual funds and insurance companies when the latter started issuing ULIPs about 5-6 years ago, offered huge commissions to insurance agents and flooded the market with these products which nearly mirrored mutual fund (MF) products. ULIPs are products that combine insurance and investment for the insured and are mostly market-linked.
    Between 2005 and 2008, when the stock market was on a bull run, MFs lost business but insurance companies mopped up large sums of money through ULIPs.
    In December 2009 and January 2010, Sebi had issued show cause notices to 14 insurance companies asking why action should not be initiated against them for issuing investment products without Sebi’s permission.
    On Friday, Sebi wholetime member Prashant Saran passed the order putting a ban on ULIP products of these 14 insurers. One of the main contentions for Sebi was that although a ULIP is an insurance product which comes under IRDA, part of it is also an investment product which should ideally be regulated by Sebi.


  3. Avoid Insurance as an Investment. For Insurance , go for PURE TERM COVER.

    For Investment , go for a combination of PPF / SIP in mutual funds / Direct equity

    All investments have risks. In equity related the risk is transparent. The moment you try to avoid any risk , be prepared to get lower returns. Inflation is a big & silent risk. Ideally you should invest in all avenues. Equity is good for long term. A younger person can invest more in equity. Not investing in equity at all – you run the biggest risk of losing your money power.

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