Investors play safe, turn to fixed-return policies
The shift towards guaranteed-return products from Ulips reflects the risk aversion of investors hurt by last year’s steep decline in share values
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Instead of merely investing huge amounts in Jeevan Aastha, I believe that HNIs should look at a guaranteed return pension plan. If combined strategically, a single time investment could get you following returns: 1. after 20 years - 250% of investment paid back as Guaranteed tax free lumpsum 2. from 21st year - a Guaranteed tax free pension at 12% p.a. for entire lifetime 3. lifetime insurance cover without any cost 4. loan and surrender options available whenever required
The above is a combination of multiple plans from LIC of India, so the security of investment cannot be questioned as it is under a sovereign guarantee of Govt. of India.
Bhushan