Long term Investment/deposit.

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John4321

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I am here to know and discuss about investments/deposits which we all are doing in our everyday lives.

Like I have taken a plan for 20 yrs LIC where i shall get 5 lakhs after 20 yrs and in every 5 yrs 1 lakh rs. The premium that I am paying is 32043 Rs only. So I would like to know what others in this forum are investing in for a long term please share it here by replying to this thread. It would help us all.
 
In my opinion, these money back / ULIP policies are one of the worst ways of investing money. Think about this. You are paying a heavy premium of 32043 annually. Over a 20 year period, that translates to 640860. In return, you get 5 + 3 = 8 lakhs. A return of roughly 25% over 20 years. Terrible. A fixed deposit would give much better assured returns over that period. Even better, over such long terms, equity mutual funds almost always give fantastic returns. In the current policy, I don't even think the insurance value would be high. Is it anywhere close to even 20 lakhs? Based on your age, you can get an insurance cover of a crore anywhere between 7 and 12K per year. You don't anything if you survive the term, but in case of any unfortunate incident, your dependents get a lumpsum. The balance of the annual investment could be made to a mix of debt and equity with the latter component decreasing as your age increases.
 
LIC is not an investment, its basically insurance and can be called as expenditure.

Seeing the detail, i think some guy had mapped you into multiple pension policy, generally called as ATM or Life-time pension by LIC broker.

Instead you should divide your liquidity according to your needs. Can take idea from my basic rule

20% physical property + 30% FD's + 15% Equity fund + 25% Debt fund + 10% on insurance :)

i am 1000% sure he has been duped by some LIC agent :234: , and now he might be making a good profit margin in the range of 4-5k from what he is paying
 
what ever you choose do not go for LIC..

after 20yrs, 5lacs will be sufficient for kindergarten admission fee and 1 lac will be you 50% of your household expenses.

better you choose Mutual funds in SIP form or if you are sooo.. reluctant to touch equity market, go for recurring deposit..

good luck..
 
sigh , even i had got conned into payying a 1 year premium and i let that be a lesson and never let anyone pressurise me into investments
 
The best invest I make are the form of Land or properties (Gold is going to be my next buy). They make money through rents and they always grow. If they dont grow, you still have an asset to your name.

I just bought an apartment for 25 lakhs. It saves me about 1.2 Lakhs a year on rent. Grows ar about 15% to 25% in value. Take that over a 20 year period, it not only negates inflation, it would actually make me richer. But that is assumign that the market wont tank. Incase it does, the property values will drop like a stone. So you should always have another asset which will give you better ROI in a recession environment. That would be Gold.

Economic Progress? Land value goes up. A small increase in Gold Value
Recession? Gold value will jump overnight to keep your assets safe. Land value will either drop slightly or stagnate.

Insurance should be used only for what it is supposed to be. Not as an investment. I lost 20K before I realized my mistake.
 
I think the Real-estate bubble will burst in India by the end of 2014, still its a good investment option. Just dont plough all of your savings onto it, just imagine the situation, you need some lump-sum urgent cash, and no one is ready to buy your saving aka flat, you will end up selling for cheap, making a little more profit :234:
 
So Guys tell me what should I do now. Some one who is getting a good income after depositing for 20 yrs please let me know those plans what have you invested in and you can make a crore. How much are you investing every year. If not a crore atleast 50 lakhs
 
Being.smart said:
I think the Real-estate bubble will burst in India by the end of 2014, still its a good investment option. Just dont plough all of your savings onto it, just imagine the situation, you need some lump-sum urgent cash, and no one is ready to buy your saving aka flat, you will end up selling for cheap, making a little more profit :234:
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It depends on where you are buying. Spread your investments, even within the sector you're investing in.
 
John4321 said:
I am here to know and discuss about investments/deposits which we all are doing in our everyday lives.

Like I have taken a plan for 20 yrs LIC where i shall get 5 lakhs after 20 yrs and in every 5 yrs 1 lakh rs. The premium that I am paying is 32043 Rs only. So I would like to know what others in this forum are investing in for a long term please share it here by replying to this thread. It would help us all.
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I invest in PPF,mutual funds and soon will start liquid funds(replacing fds in some cases) and also NCD,company fd(of stable and strong companies).
 
Being.smart said:
Can anyone tell how good is Shriram FD's , planing to drain some money onto it :)
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CRISIL : FAA+,
ICRA : MAA+ ratings.

FAA+::This rating indicates that the degree of safety regarding timely payment of interest and principal is strong. However, the relative degree of safety is not as high as for fixed deposits with 'FAAA' ratings.

MAA+The high-credit-quality rating assigned by ICRA. The rated deposits programme carries low credit risk.
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You can invest but do keep a timely check on the companies whether its involved in any shady deals or not in future which hurts its listed shares.
 
Being.smart said:
I think the Real-estate bubble will burst in India by the end of 2014, still its a good investment option. Just dont plough all of your savings onto it, just imagine the situation, you need some lump-sum urgent cash, and no one is ready to buy your saving aka flat, you will end up selling for cheap, making a little more profit :234:
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With the Population Census Currently..
The Property Rates by No Chance with ever Come down,with so many New Projects Coming in Remote Areas..
I guess Property and Gold are Safe Assets to me
 
You shouldn't be asking for financial advice on a forum where people ask if it is okay to take massages from girls :P
 
^ I think with 2014 elections approaching, 10000's of crores of black money which is pumped into the real-estate will be withdrawn in order to spend during election.. this will surely lead to falldown of prices in many tier-1 cities, while i dont think it will effect tier-2 or 3 cities. So if you want invest in bhilai :234:
 
John4321 said:
I just came across this plan in policy bazaar. Its a money back plan including death cover. Let me know what do u all think about this http://sis.edelweisstokio.in/SISOnline/SISPDF/32924235-903e-45e1-9627-df2c96e93e7d.pdf
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Surrender Value is not something to boast off . Its a paltry amount . PPF is a good long term Savings instrument for at least 10-15 Years until government decides to decrease the Interest rates .

Why not invest In equities or Even mutual fund's for this matter . They will give a better return over a longer period .

For me LAND never game me returns . It was always negative . And the ticket size now for any investment in DELHI is a big amount for middle class Families . Also it is not necessary that land will continue giving high returns . During 1980-93 land prices actually fell .
 
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