I am a 30-year-old software professional. I have one Ulip of HDFC Endowment type and also term insurance worth Rs15-20 lakh. I want to know whether I should go in for Bajaj’s Max Gain policy, where the net asset value is guaranteed?
— Nikhil Girme
The best way to plan your investment is to know yourself and your purpose of investment. If you are investing for good returns then you should not go for insurance products as they do not offer returns comparable with other investment options, including initial public offer, mutual funds and others.
I think you should first chalk out a detailed plan and define your investment surplus, period of investment, risk profile, future responsibilities, and desired returns viz-a-viz risk profile, then you should move to the next step, which is zeroing down on investment options. Based on what you have mentioned in mail, I think you should invest in mutual funds.