Life insurance is a necessity and not an investment. There is no substitute for life cover, none whatsoever, it is the only mean of providing security to your near and dear ones against your untimely death or to yourself against your old age. The yield on investment is of no importance. The compulsory saving aspect is only of physiological value and all individuals should avoid the compulsion. It is a necessity, if and only if, the demise of the breadwinner of the family would put immense financial pressure on the family members left behind.
However, if that is not the case, leave insurance alone, every product has its cost and so does insurance. Do not buy a product you do not need. Excessive insurance injures financial health. Carry out a cost benefit exercise and also assess your human life value before entering insurance. Get a truthful and unsentimental answer to Do I need a life-cover?' it is necessary to insure only protectible life value. In your effort to provide for the future of your family, do not rob its present.
[...] Second Phase 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec Punjab National Bank Mutual Fund (Aug Indian Bank Mutual Fund (Nov Bank of India (Jun Bank of Baroda Mutual Fund (Oct 92). [...]
[...] Such a high level of regulation seeks to protect the interest of investors. Liquidity: In open-ended mutual funds, you can redeem all or part of your units any time you wish. Some schemes do have a lock-in period where an investor cannot return the units until the completion of such a lock-in period. Convenience: An investor can purchase or sell fund units directly from a fund, through a broker or a financial planner. The investor may opt for a Systematic Investment Plan or a Systematic Withdrawal Advantage Plan In addition to this an investor receives account statements and portfolios of the schemes. [...]
[...] If not, the returns can only be compared to either a broad-based index or a combined set of sectoral indices. Choosing market benchmarks in practice: The best alternative in practice for the investor and his advisor is to rely on the expert performance tracking agency reports and analyses, since the choice of appropriate benchmark can become a difficult technical exercise. In India, benchmarking for retail investors is done using a menu of indices in combination. Agencies such as credence prefer the BSE200 because of its broad-based nature. [...]
[...] fund suffers with unique risk as well systematic risk. A long term, systematic high return earning portfolio would have high square and beta nearing to 1.00 or less than STANDARD DEVIATION The standard deviation is a measure of funds `total risk', both systematic and unique risks. The risk of any portfolio can be reduced by diversification. In a R-square = 100% condition a portfolio is said to be fully diversified equivalent to market and carry only systematic risk not the unique one. [...]
[...] In case of floating rate fund, templeton floating rate income gave good return in 2002-03 but HDFC and ICICI were Negatives in all three years. On analyzing the liquid funds it can be seen that only prudential ICICI Institutional and growth fund gave good returns others are negative performance. 2.MUTUAL FUND AND TAXATION Overview of the study: The paper tries to analyze tax benefits issues with respect to mutual fund from the point of view of companies and investors. Scope and Period of the Study: To day there are around 34 mutual funds with approximately 500 products classified under a dozen generic heads. [...]
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