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Money Thread

Discussion in 'Hangout' started by Bala, Sep 23, 2010.

  1. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Three years back,I had started investing 1Lakhs rs a year in Money plus(LIC) and after 3 years,with market at 20k,the 3 lakhs I've paid has become 3.2 lakhs!,what a bad investment? :cry: .If I had bought gold for the same money,the 3 lakhs would have become 6 lakhs,what a loss?.(I was shocked to read that the allocation charge was 26% for the first year,what a daylight robbery? :sad1 )Saving grace is the Rs.5 lakhs insurance cover
    I had similarily invested money in ICICI PRULIFE and Bajaj alliance,mislead I was.
    If only some one here can give good info on investment?...
  2. I have never been a fan of ULips. Its only recently that I took the plunge. Try looking at Lifestage Pension plus from ICICI. It seemed good. But thats it for me when it comes to Ulips. Even Gold wouldn't have doubled your money in the last 3 years ( if you are buying jewelery i.e.), yes Gold ETF's might have.
    I invest in MF's with SIP. They have not failed me so far. And MF's that I bot 3 yrs back are giving me handsome returns now ( thanks to Sensex @ 20k)
  3. J Ravi

    J Ravi Esperto

    Messages:
    2,293
    Bangalore
    I have invested 50% in fixed deposits with Sundaram Fianance. The remaining 50% in bluechip shares bought by me using my online trading and demat accounts with Kotak Securities. I am fully satisifed with both. This way, I got average returns even when the Sensex touched a low of 8 k. As regards to shares, I am a long-term investor and I keep the shares with me for a minimum period of one year as long-term capital gains are completely tax-free. I invested a few lakhs of rupees when the Sensex touched 8 k and started investing systematically. Now, I do not buy any shares. I shall start selling when the Sensex touches 22k. When the Sensex drops again, I will accumulate. I follow Warren Buffet's advice: Buy when others sell. Sell when others buy! I have invested in ornament gold too when the price was less than Rs 1000/g.
  4. amogh

    amogh Staff Member Janitor

    Messages:
    1,377
    Pune
    Grande Punto 1.3
    Awesome thread !! I invest only in mutual funds.

    I have one ULIP from HDFC : but I look at it for a long term perspective (20-25) years. ULIP's are never good for short term.
  5. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Excellent Thread.

    Yes ULIP is not for short term, don't see the returns in 3 years. In 3 years you got break-even, that is actually good return, thanks to market.

    Everybody must prepare investment pattern, based on age and risk appetite. Try to stick to it as far as possible. I see J Ravi's investment patetrn as excellent. Amogh, you must invest ~25-30% in blue chip stock.

    I invest ~25% in ULIP(HDFC) and LIC (pure insuarnce - this is not investment but just coverage).
    ~40% in Mutual Fund, through SIP.
    And rest in Stocks.
  6. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Here I should say that only the Money plus that I had invested did not perform well where as MARKET PLUS(LIC) at the same point of time has done remarkably well,1Lakh invested by my uncle has become 1.80 lakhs now in 3 years.I did not go for that because it did not have insurance cover and obviously it did well because money was not deducted for insurance coverage.
    I agree that ULIPS shouldn't be looked at short term intervals of 3 years
    Yes,the LIFE STAGE PENSION plus scheme of ICICI as mentioned by ancient mariner is doing well from what I could see fromthe statement I receive from them every year.I am putting in 18,000Rs every year in the same and it seems to be doing well
    My investment pattern is like this(every month)
    1O,000 Rs in PO RD
    10,000 RS in PO IVP
    10,000 RS in LIC premiums(not an investment but a life coverage),not the ULIPS
    15,000 Rs in housing loan repayment
    5,000 Rs in ULIPS
  7. That is discipline :) Mine is a bit staggered. I have made plans so that there is a regular stream of income (hopefully i.e.) between the ages 50 and 60 . Then there are short term goals for which I have invested in 5 yr bonds and FD's ( to save tax), SIP's in various MF's and blue chip stocks. For ultra short term, I'd like to gamble in stocks :)
  8. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    True,ancient mariner,one should have a regular stream of income when he is in the age of 50 s and 60s and that was my purpose of investing in IVP s,which can not be withdrawn and encashed before 3 years and even if the interest is too low,atleast it is safe and should be handy when the capacity to earn might decrease due to old age
    Do FD's save tax??,isn't the interest too low,wouldn't gold be better for short term goals??.Last year on one particular day it was Rs.900 a gram,see,now in 1 year it has doubled.
  9. amogh

    amogh Staff Member Janitor

    Messages:
    1,377
    Pune
    Grande Punto 1.3
    Even in ULIP, the premium redirection matters. Although ULIP's are long term and you are expected to get good returns, its good to build some caution in the portfolio. This is how I have allocated my premiums:

    Secure Managed Fund II - 10%
    Defensive Managed Fund II - 10%
    Balanced Managed Fund II - 25%
    Equity Managed Fund II - 10%
    Growth Fund II - 45%

    The HDFC Insurance guy had recommended me a portfolio of 90% Growth Fund (all equity) and 10% Defensive Managed Fund (mostly debt instruments). I did not quite buy his idea.

    For long term : 60-70% Equity and 30-40% debt is a good distribution I feel.

    From the mutual funds : IDFC Premier Equity (Growth), HDFC Equity & Canara Robeco have given me handsome returns.

    Tata Life Sciences & Technology Fund is an absolute bummer !!
  10. There are 5 yr FD's. Well Yes, Gold is definitely good if invested at the right price and the right instrument (ETF's Vs Jewelery Vs Gold Bars/Coins). Have invested in Gold as well.

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