I made mistake in investing money. Advice needed.

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6pack

Mastermind
guys with knowledge of investing or in stock market sector please help.

Today I was sold a ULIP plan disguised as a mutual fund by an icici direct agent.
All the while I was thinking it was a open ended mutual fund, but now i saw that it is a closed ended fund where lock in is 5 years and i have to pay same premium every year as first year.

I invested about 1 lac today. so i have to invest 1 lac in that scheme every year.
The guy actually said i dont have to invest anything after 1st year, since i told him i wont be investing more than a lac in it.
Even the branch manager sitting beside him said the same thing when i asked if the fund had any lock in period. both said there was no lockin period and i could withdraw the units after 1 st year partially.

fund name is icici prudential - pinnacle II.
now on the site of pru icici i saw its a unit linked insurance plan with 5 year lock in period. :@
problem is i dont feel like paying 1 lac of premium every year now after seeing that.

i already gave cheque of 1 lac today evening. what should i do to get back the one lac? should i call them and say i changed my mind and i dont want to invest money in a ulip plan tomorrow morning? should i make stop payment on the check?
since its icici concern, i'm sure money will go by tonight to their icici pru account since i paid using icici bank cheque. :(

I am really really really stupid. i'm sure of that now. :ashamed: :(
 
Dude simple..stop payment immediately or remove all money and bounce ur cheque..:))...u r vry early to realize this crap called ULIP..most disgusting investment product ever..have looted ppl a lot..
 
^ i think fool like me got lucky. i stopped the cheque payment and sent sms to the agent to call me up tomorrow so i'll shout at him for lying at me.

will these insurance guys do some backlash or something now that i made them a loss in their earning of 1 or 2%?

thing is i also gave some offline mutual funds to be redeemed. maybe i shouldn't have sent sms and waited for them to call me back saying cheque bounced or something.

Edit: forgot to mention this. what made me start thinking was guy was promoting it so much for 1 lac rupees and showing NAV of another plan - pinnacle 1 fund. So i searched the net for the plan (that stupid place didnt have net connection too or it might be restricted)

What they said vs What the actual truth is:

1 - there is guaranteed returns of highest NAV value at time of selling. ( In reality you get highest NAV subject to some rotten conditions like you cannot surrender the instruments before 3 years, etc etc.)

2 - No lock in period. (hell - according to irda rules with effect from jan 2011 or something there's cumpolsury lock in of 5 years)

http://wealth.moneycontrol.com/columns/ulip/new-ulip-rules-what-do-they-mean-for-you-/15122/0

3 - penalty is some 3k max if all units or partial units withdrawn in 1st year. (hell - i saw the prospectus and penalty was 6k in 1st year)

In this product, we guarantee the highest Net Asset Value (NAV) recorded on

a daily basis, in the first 7 years of launch of the Pinnacle II Fund, subject to a

minimum of Rs.10. The guarantee will be applicable only at maturity. The

period of 7 years starts from the date of launch of Pinnacle II Fund and will end

on the completion of 7 years (from 26/10/2010 to 26/10/2017). Guaranteed

NAV is based on the NAV of the series of the Pinnacle II Fund, in which the

premiums are invested.

The ‘highest NAV Guarantee’ of the product is linked to the inbuilt Pinnacle II

Fund and not solely to the equity market index.

Guaranteed NAV (Conditions Apply T&C 26)
Click to expand...

The product provides the "highest daily NAV” of the Pinnacle II fund in first

7 years, guaranteed at maturity. This guarantee is applicable only at

maturity and is not available on partial withdrawal, surrender and death.

There will be an additional charge for the cost of investment guarantee of

0.10% per annum. These will be made by adjustment to the NAV.

26.
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Year in which premium payment is discontinued - Premium discontinuance charge

1 - 6% of lower of (AP or FV), subject to a maximum of Rs. 6000

2 - 4% of lower of (AP or FV), subject to a maximum of Rs. 5000

3 - 3% of lower of (AP or FV), subject to a maximum of Rs. 4000

4 - 2% of lower of (AP or FV), subject to a maximum of Rs. 2000

5 and onwards - Nil
Click to expand...

Edit 2: Guys investing - please read all terms and conditions carefully before signing. atleast ask someone or two or search on moneycontrol.com for advice. Don't make mistake like i did and start investing blindly. After all its easy to loose money but hard to earn it.
 
To all people who are going to invest there money.Do you research before entering into market....

If you want to invest then study market for few month and look for fund Portfolio where your money is going invest in that fun...

If it only about fund then look http://www.valueresearchonline.com/ for stats and info it like moneycontrol but only for funds..
 
A word of advice, never mix investment with insurance. the two should remain separate, insurance guys get highest commission on ULIPS, hence they aggressively try to sell them..
 
+1000
Look for term based insurance plans for your life cover. Invest your saving in any good shares, MFs, NSC or other good stuff.

Life Insurance Corporation of India

I don't trust this ULIP crap
Aces170 said:
A word of advice, never mix investment with insurance. the two should remain separate, insurance guys get highest commission on ULIPS, hence they aggressively try to sell them..
Click to expand...
 
6pack said:
I am really really really stupid. i'm sure of that now. :ashamed: :(
Click to expand...
Why because you were tricked by them ?

This is worse than some damn ISP selling you a plan and promising good service.

I'd go to the media with this.

Where is magnet btw, he's big fan of ULIPS i think.
 
u can pay for just a year .

there is no further obligations to pay further.

u will hold the investment as units to the amount you pay.

as for insurance policies it is the decision of IRDA and SEBI that they have made the lock in period of all insurance policies to 5 years.

frankly speaking insurance policies do not invest in high risk, high gain shares.

so whatever the investment you would start to see those returns only by the 10th year.

so to remain in the investment or walk out is the decision purely upto you.

you can always block the payment of the cheque.
 
If I understand correctly, there's a 15 day free look period for every insurance policy. You can surrender the policy within that time frame without losing money. Clarify this with your agent and feel free to do so.
 
yup, all ulips have a 15 day free look period.
2ndly some ulips do come with a 1 pay option but they certainly cant be withdrawn before 5 yrs.
3rd and most importantly, with ulips its not really the upfront cost that matters, but also the other costs, aka mortality administrative and management cost. Considering this do a comparison between the mf and ulip plan cost wise and take a call.

@ggt, what in the world is a high or low risk share. Its large mid small sectoral etc..
For your and everyone else reference, what makes a ulip relatively less risky in terms of manager investment strategy is that n a ulip unless a mf, the fund manager of the ulip has to inform irda about portfolio changes and follow irda as welll as ulip fund management strategy as laid down before the incorporation of the fund. In short ulips fund managers dont have a free will to park money without been checked unlike a mf fund manager.

@op, if you need more help with the salient features and understanding them better, pm me the entire plan and fund strategy
 
blr_p said:
Why because you were tricked by them ?
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yes and also cause i was stupid enough to give out a check without looking into it. i did ask for time to think but they were saying its the last day and it will close soon. (this line they kept repeating made me think again and again and so i looked up the plan on the web).

esanthosh said:
If I understand correctly, there's a 15 day free look period for every insurance policy. You can surrender the policy within that time frame without losing money. Clarify this with your agent and feel free to do so.
Click to expand...
unfortunately,

1: the agent didnt tell me it was a ulip plan. he was selling it like it was a open ended MF.

2. he with held a lot of facts about it being a insurance plan. infact i didnt even know insurance was involved in the subject matter.

3. he didn't mention the 15 day free look period even once.

edge111hussain said:
yup, all ulips have a 15 day free look period.

2ndly some ulips do come with a 1 pay option but they certainly cant be withdrawn before 5 yrs.

3rd and most importantly, with ulips its not really the upfront cost that matters, but also the other costs, aka mortality administrative and management cost. Considering this do a comparison between the mf and ulip plan cost wise and take a call.

@ggt, what in the world is a high or low risk share. Its large mid small sectoral etc..

For your and everyone else reference, what makes a ulip relatively less risky in terms of manager investment strategy is that n a ulip unless a mf, the fund manager of the ulip has to inform irda about portfolio changes and follow irda as welll as ulip fund management strategy as laid down before the incorporation of the fund. In short ulips fund managers dont have a free will to park money without been checked unlike a mf fund manager.

@op, if you need more help with the salient features and understanding them better, pm me the entire plan and fund strategy
Click to expand...
thanks, but i've had enough of this insurance stuff. i've decided not to go for any ulip based plans after seeing the agents lie for some commission. if the agents do this to their own bank's customer, then i have no faith and trust in them.

i think this is the link to the plan if your'e interested in seeing what the details are. http://www.iciciprulife.com/public/Brochures/Pinnacle_II_brochure.pdf
 
^^ This plan was pitched to me just 3-4 days ago. Fortunately, I know enough about ULIPs. I have always disliked them after I bought one of them through a similar "advice" long, long ago. I surrendered it once the lock-in period was over. Most agents won't tell you about the Free look period at all. They are all after their nifty commissions. Why would they care about your money as long as they have their big upfront commissions and trailing commissions? The bank would also get a % cut (even if it's within the same group) as the distributor. So, I am not surprised that the bank manager was in on it.

Now that you've learned your lesson the hard way, you'd be very careful in tackling these agents from next time. Just learn a bit more to ask the right questions. Most of them don't have enough knowledge to stand the scrutiny. That's how I survive ;)
 
@m-jeri, i dont mind anyone hijacking my threads if its for a good purpose. better to hijack a thread and let everyone learn about these, than make a mistake and open a new thread afterwards :)

Also an update from my side regarding this "ulip insurance scam".

Had a half hour talk with the agent (supposed to be my fund manager!) and his senior. Both are saying its not a ULIP plan and insurance is given by default!

I asked them why the prospectus is lying its a ULIP plan and still they maintained it was not a ulip plan.

I also asked why they didn't say insurance was involved in it - guy said he forgot (while selling a ulip plan, he forgot to mention insurance- the main subject!!)

In the end after arguing with the senior who kept asking me for another meeting date i told him i would meet them but wont buy the plan. he hung up.

thankfully, i didn't shout or anything, just put the facts in their face which they couldn't counter.
 
@OP : you did the right thing by stopping cheque payment and withdrawing from your committment.

These executives are being forced to missell the products.

In recent past my father was inquiring about "TAX SAVING FD" at one ICICI bank branch, the person immediately pouched the opportunity and duped him to a 5 year lock in ULIP, but as he is above 60 he cant be primary investor, so joint name was mine, while back from work he told me ICICI bank person will come to get my signature, for joint account. I said Ok.

When the form and person arrived I was shocked to see he was being sold a ULIP, I fired them instantly and told them to shoo off, also called her branch manager and blasted him for misselling the product.

Like Aces170 told never mix Insurance and Investment, they both just dont walk together.

Like many here have said, go to moneycontrol, valueresearchonline, traderji, market vision and read about what you can do with your money. If you have specific questions do ask here will be happy to answer to my abilities and also many others will throw some light.
 
6pack said:
guys with knowledge of investing or in stock market sector please help.

Today I was sold a ULIP plan disguised as a mutual fund by an icici direct agent.
All the while I was thinking it was a open ended mutual fund, but now i saw that it is a closed ended fund where lock in is 5 years and i have to pay same premium every year as first year.

I invested about 1 lac today. so i have to invest 1 lac in that scheme every year.
The guy actually said i dont have to invest anything after 1st year, since i told him i wont be investing more than a lac in it.
Even the branch manager sitting beside him said the same thing when i asked if the fund had any lock in period. both said there was no lockin period and i could withdraw the units after 1 st year partially.

fund name is icici prudential - pinnacle II.
now on the site of pru icici i saw its a unit linked insurance plan with 5 year lock in period. :@
problem is i dont feel like paying 1 lac of premium every year now after seeing that.

i already gave cheque of 1 lac today evening. what should i do to get back the one lac? should i call them and say i changed my mind and i dont want to invest money in a ulip plan tomorrow morning? should i make stop payment on the check?
since its icici concern, i'm sure money will go by tonight to their icici pru account since i paid using icici bank cheque. :(

I am really really really stupid. i'm sure of that now. :ashamed: :(
Click to expand...
There is 15 days free lookup period when you buy ULIP. Its there for all ULIPS, you can surrender the policy mentioning the appropriate reason. Its better if you submit the surrender application yourself instead of getting it done by the same agent.

Although the below information is for another ULIP plan read your policy document as the free lookup clause will be there.
What if I am not satisfied?
Keeping our customer first approach in mind, we try to ensure that our customers are satisfied by our products and services; however, if under any circumstances, you feel that the product or services offered by us are not up to your expectations, you can select to view your queries through one of the following options:
o
Grevieance redressal
o
Call us at 1800 22 2020

If you are still not satisfied with any of our product, you have an option of canceling the policy within 15 days of receipt of the policy documents (Freelook period). Kindly refer the policy document for detailed terms and conditions on the freelook period.
Click to expand...

ICICI Prulife - Contact us, Chat with Advisor, grievance redressal, meet ICICI Prudential agent
 
I learnt the hard-way when 3 years back invested in a similar insurance, termed investment vehicle. Most of us do it for 80C. My amount was in a similar ball park, but the lock-in was less. Regretted it. The value of the investments has hardly moved. :( ULIP being sold as investment is really bad.
 
There is 15 day review period for the policy, if you don't like it you can get the money back. No charges are applied. After 15 days you are screwed.

I too was screwed by ICICI for ULIP policy. Lost 16k. :( But now I work at ICICI and I have screwed them for more than I have lost. :ohyeah:
 
6pack said:
yes and also cause i was stupid enough to give out a check without looking into it. i did ask for time to think but they were saying its the last day and it will close soon. (this line they kept repeating made me think again and again and so i looked up the plan on the web).
Click to expand...
Sounds like you got the pressure sales routine :(

I've found whenever the seller is agressive like this then there is something fishy.

esantosh said:
^^ This plan was pitched to me just 3-4 days ago. Fortunately, I know enough about ULIPs. I have always disliked them after I bought one of them through a similar "advice" long, long ago. I surrendered it once the lock-in period was over. Most agents won't tell you about the Free look period at all. They are all after their nifty commissions. Why would they care about your money as long as they have their big upfront commissions and trailing commissions? The bank would also get a % cut (even if it's within the same group) as the distributor. So, I am not surprised that the bank manager was in on it.

Now that you've learned your lesson the hard way, you'd be very careful in tackling these agents from next time. Just learn a bit more to ask the right questions. Most of them don't have enough knowledge to stand the scrutiny. That's how I survive
Click to expand...
I actually ended up getting this pitch for altogether different reasons. A year ago, I went to my bank when i read an article in the local paper saying their ATMs dished out fake notes. After having a chat with one guy who told me it was an outsourcing problem and that it would not happen some other guy poked his nose into the conversation and then led me off to his desk.

Then he started to badger me about details about some insurance plan etc. I let him finish the spiel, took the brochure and told him i'd let him know. At this point he insisted i give him my name as thats what the rules stated. I flat out refused. He then got a bit aggressive and told me he'd find out my name from others, to which i retorted why i had to tell him anything then. He just grabbed the brochure from my hand, which i found wierd. So i told him i needed time to decide, grabbed the brochure back from him and walked out.
 
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