Publication details: Money Manager – CNBC Bajar – 10-03-2016
Responses, opinion and view from Kartik Jhaveri.
Question sent by Satish Shukla:-
My monthly salary is Rs. 28,000. I have a 4 year old daughter and a 7 month old son. I have an LIC policy which I bought 7 years back and a Rs. 1 lakh money back policy. My home loan EMI is Rs. 6,000. I want to purchase a new LIC Jeevan policy but I’m confused as to which is the best investment which will provide me a higher return in 15 to 20 years. I can invest Rs. 3000 on a monthly basis. Currently I do not have any investments in equity mutual funds. Kindly provide me some advice.
- Insurance is a risk management tool and one should never mix life insurance with investment. Life insurance investment option is expensive and not appropriate.
- It is possible to save substantial amount of money per annum on buying a pure term insurance. The amount so saved could be invested in some other more profitable manner.
- If you are planning to invest for long term, then you can consider doing a monthly SIP in equity mutual funds.
- For instance a monthly SIP of Rs. 3,000 for the next 20 years, can amass approximately Rs. 40 lakhs, considering a growth rate of 14% p.a. Against this you will get approximately Rs. 11 lakhs via insurance. This is assuming a growth rate of about 4% p.a.