WHICH IS BEST AND SAFE TO INVEST?



TELL ABOUT THE SBI LIFE INSURANCE . IS IT GOOD INVESTMENT. TELL THE PAST RECORDS OF SBI LIFE.
IN FUTURE HOW ITS RECORDS WOULD BE

WHICH IS BEST AND SAFE TO INVEST?
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5 Replies to “WHICH IS BEST AND SAFE TO INVEST?”

  1. Firstly, invest in a fully owned Government Bank is always safe. We are sure to get our Principal amount and also Interest. According to me, this is the best.

    SBI Life Insurance is also a good investment when compared to other Private sector investments. But you have to be very careful in choosing the Plan. For example, if you choose Share market linked policy, there is always a risk involved in the nature of the scheme itself.

    When you want steady investments, better to invest in Government Scheduled Bank. Especially for retired persons, this is the better one.

    If you are a tax payer, the better investment is to take deposit for 5 years. You will get deduction under 80-C also.


  2. If you read the insurance product document you can see the sbi life insurance is the name of the company and will not guarantee —– so on. some years back i have made an investment in SBI mutual fund and I lost. You may make a deposit in SBI and it is almost secured. Again insurance policy is not a good investment opportunity. You might have been planing to invest in the ULIP . what is the difference in SBI life insurance, birla sunlife insurance , icici or hdfc insurance buys L& T share from the market for you. what you will get a NAV based on the performance of the shares like that of L&T and others. So as they said do not go for the name go for the investment portfolio of the company go for the minimum charges, go for performance. all the insurance companies in India are regulated by IRDA with a uniform set of regulations.


  3. Buying an insurance product is not an investment. When you want to cover a risk then you buy insurance. Say you are the only earning member of your family. Now God forbid but if you are no more then your loved ones will suffer economically. So you get insurance on yourself to safeguard this situation for your family.

    Now let’s come to investment. One invests continually and as early as possibly with discipline to meet future financial contingencies, commitments and for one’s retirement..when one is no longer in a situation to earn. One invests to set aside money profitably to meet financial goals such as children’s studies, buying a home, even going on a pilgrimage in the future.

    Now for this one does financial planning and lists out time bound goals. Like in 10 years children will need money for entrance in medical or engineering. Say in 30 years one is going to retire.
    So he can roughly estimate how much will be required for each of the financial goals and when are the goals maturing.

    Then one looks at current levels of income to see how much maximum can be set apart for the future financial goals.

    Then comes the question of where to invest. This is known as Asset Allocation. Here one can draw a line starting from Bank fixed deposits and Post office savings schemes to mutual funds of different risk levels to direct investments in shares.
    None of these assets are unreliable or bad in itself. It all depends on 1. how much risk one is able to take at a stage in life 2. how soon one may want to liquidate that asset for its money’s worth and 3. How much returns each asset broadly can give.

    Let me give you an example.

    Say a 22 year old is on a decent job and is earning Rs. 20000 pm.
    After meeting his current obligations he can set aside Rs 7000 for investments.

    Therefore his Asset Allocation could possibly be like this.
    1.
    Financial Goal: Marraige.
    Goal Maturing After: 3 Years
    Asset Allocation: Fixed Deposit. Put Rs. 2000 every month on a 3 year FD. This could rougly fetch at the end of 3 years 70000 to 80000 at 10% pa interest rate.
    2.
    Financial Goal: Expenses for Children.
    Goal maturing after : After 5 years
    Asset Allocation: Mutual Fund scheme having an investment objective in Diversified large cap funds. Here Rs. 500 will give approx. Rs. 50000. at an annualized rate of 18% which is fair considering 5 years.

    3.
    Financial Goal: Buying a home.To pay for own equity on mortgage.
    Goal maturing after: 7 years
    Asset Allocation: a. Equity mutual fund scheme- Invest Rs. 3000 Per month. This would fetch after 7 years Rs. 5 lacs approx at annualized 18% minimum.b. Invest in A class shares and this could fetch an additional amount with a time horizon of 3 years with the money left after other goals have been left and when the salary increases.

    So on and so forth… one can plan.

    of course the above advice and example is just an indication of how investment basically works and I cannot take any responsibility if the investments entirely fail to perform. Like I said risk you have to take. Go through scheme documents, talk with advisors or friends who are into this and go ahead.


  4. In these trouble times, go for bank fixed deposits, which are giving you assured returns.

    Till the financial mess across the globe is cleared, don risk your investment in asset classes such as equities.


  5. You should always diversify your investments. A major part of the money should be put in Fixed term deposits.
    The remaining can be put in Equity markets which can earn you higher returns in the long term





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