Tuesday, March 17, 2015

ULIPs vs Mutual Funds

Low-cost ULIPs have recently entered the market (2005) and brought in stiff competition for Mutual funds. 
       Between ULIPs and MFs, it is not about which one is better and where to invest. Rather your deciding factor should be what do you want and who you are. Understand your requirements - Do you want to invest or buy insurance or both? Do you want garanteed returns (or) are you fine with some risk?

Parameters

ULIP

Mutual Fund

Definition

ULIP allow investors to direct part of their premiums into different types of funds (Equity, Growth, Money market, SBI Bond, etc.).

A mutual fund pools the money from investors and uses it to invest in various securities according to a pre-specified investment objective.

Purpose
For both Investment and Insurance purpose.
Primarily for Investment purpose. No Insurance benefit.
Lock-in-Period
Lock in period for 5 years; you can withdraw your money. If the policy is discontinued in the first year, the surrender charge is 20% of the premium.
There is no Entry load and after one year there is no Exit load either. You can enter and exit at any time depending on market conditions and personal choice.
Loyalty Benefits
It comes with long-term investment.
No Loyalty (or) Long-term Investment benefits.
Track Record
Actually came into existence from 2005.
Established Product. Until 1987, UTI enjoyed monopoly in market, and then host of government financial companies came up with their own funds.
Tax Status
All Unit Linked Plans offer tax benefits under section 80C.
Only investments in tax saving funds are eligible for section 80C benefits.
Charges Structure
Charges in a unit linked plan include mortality charges for the life insurance provided. In addition, premium allocation charge, fund management charge and administration charges are applicable.
Mutual fund charges include an entry load, the annual fund management charge and an exit load, if applicable.

Friday, March 13, 2015

Smart Money Back Gold - Life Insurance

State Bank of India and Cardiff, a BNP Paribas Company, have entered into a joint venture to form SBI Life Insurance.

SBI Life - Smart Money Back Gold is a savings plan with added advantage of life cover and cash inflow at regular intervals. It is a participating traditional money back insurance plan.

 a)  Policy Name : Smart Money Back Gold;
b) Entry Age: Min = 15 Years,  Max = 55 Years;
c) Policy Term = 12/15/20/25 Yrs.;
d) Premium Mode = Monthly / Quarterly / Half-Yearly / Yearly;
e) Premium Paying Term (PPT) = Policy Term (Same as)
f)  Sum Assured = Life Insurance Coverage = 10 times the Premium Paid(calculate on Year basis).
S.NoPremiumMoney Back on 3rd Year (20%)Money Back on 6th Year (20%)Money Back on 9th Year (20%)Money Returns on 12th Year (50% + Vested Bonus)Pension/Month (Life-Long)
1100020,00020,00020,0001,10,000733
2200040,00040,00040,0002,20,0001,466
3300060,00060,00060,0003,30,0002,300
4400080,00080,00080,0004,40,0003,100
550001,00,0001,00,0001,00,0005,50,0004,000

Thursday, March 12, 2015

Your Financial Advisor

I am Suripeddi Koundinya, being an Certified Financial Advisor since 2013, I am here to guide you on how to manage Money (your Income) in right way to establish secure financial conditions for future.

You all aware of the phrase ' Dress makes a Man', but "Money makes you Real Person". 
Most of us esp. middle class society are poor in savings. Our basic regular needs like Food, Home-Rent, Electricity Bills, Groceries (Commodities), Petrol expenses, Child-education , etc. consumes more than half of our Salary i.e. in Monthly Income. So, We fail to plan for tomorrow. We only realize when we are in critical condition, looking back not a single Penny left to spend, end up with cursing our past deeds.

Why not Plan anything / everything in advance?  Why can't we Start now saving a little amount whatever we have today? Small contribution in Young days turn out to be Asset in Old age.

I am not here to tell you to become Rich in short-time. "Rome was not built-in a day".

First-of-all, all we require to have is 'Patience' and stop using the word 'Excuse' for trivial things. We are all used to say " I don't have time", "I won't believe in Insurance", " Risk in Share Market", I never heard about Mutual Funds", I spend too much money", "I am not Interested", "I have Loans to payoff", "Sorry", etc.... Until unless we depend on specific continuous source of income, there is unimaginative to be Secure.

More we grow, more Risk we are bound to. None escapes death. Death comes all of a sudden. Be Prepared now. Get Pension and Life Coverage in your last days.

Let's come to the point: Properly Planning, Research Online, Take Advice and Begin Investing your little Income in Insurance; Stock areas like Equity, F/O, Mutual Funds, Bonds; Recurring (R.D) & Fixed (F.D) deposits in Banks; Advertiser zone in Affiliate marketing; Building a Website; Purchasing a Land; Starting a New Business; etc yield some-day a huge profits.

I am here to provide you 3 services :
1) Life Insurance Policies: Being a SBI Life Insurance advisor since 2013, I can guide you what plans are suitable (whether it may be Term, Traditional or ULIPS) based on your financial conditions to achieve future goals keeping in mind of your family situations.

2) Stock Market Trading: Do you have a Demat Account? If not, don't worry. I will help you to open one. It costs you zero to open trading Account. 

First Year AMC free, Rs. 300 plus GST from Second Year onwards.
Brokerage - 0.30% per trade (from Buy /Sell).

Based on my experience, I can suggest you on where to invest in which share or funds of companies. It may be Equity or Derivatives (Futures & Options).

If you already have demat account (not willing to create another one), then I will charge Rs. 500 per each tip. I will clearly state how much amount (how many shares need to buy) need to be invested in so & so Stocks and for how long you need to keep (duration) to generate good profits.  


3) Mutual Funds: MFs are investments that pools money from investors to purchase stocks, govt. bonds and other assets. The aim is to give higher returns to investors by diversifying portfolio which are managed by fund managers.
     There are different category of Mutual Funds - Equity, Hybrid, Debt and Index/ETFs.

Returns in MFs are better & safer than Bank FDs/ RDs and Insurance. I will help to open Mutual Fund Account for you with Zero AMC life time.

Click the below links to Register for Stock Trading as well as Mutual Fund Account:



Come forward to "Join Hands" with Me. Lets help yourself first and help others. - This is My Motto.


   


Your Financial Advisor,
 S. Koundinya (since 2013)
Mob:  09533791525
  NISM & NCFM Certified
  ARN-134715 holder
  EUIN - E225283
  Hyderabad, India.                                                                 

Tuesday, March 10, 2015

Smart Wealth Builder - Best Investment Returns SBI Plan

You may have ever changing needs, but as your preferred life insurance company, SBI Life definitely understands all your financial & insurance needs. SBI Life - Smart Wealth Builder, a unit linked, non participating, insurance plan is an attempt to meet all your financial & insurance needs through a single product. You can use it the way you like. You can choose your required life insurance cover subject to a minimum and a maximum level. 

Kindly go through below details with patience:

Plan 1

Premium    : Rs.50,000/- yearly for 5 years

Sum Assured : Rs. 5,00,000/- (Insurance coverage)


Maturity Benefit  : Rs.23,35,000/-

Tax Benefit  : Section 80 C benefit

Tax free Maturity Benefit : Section 10(10D)

(or)
You can take monthly pension life-long self and nominee with capital refund.


Plan 2


Premium    : Rs.1,00,000/- yearly for 5 years

Sum Assured :Rs.10,00,000/-(Insurance covera
ge)


Maturity Benefit  : Rs.46,70,000/-


Tax Benefit  : Section 80 C benefit


Tax free Maturity Benefit : Section 10(10D)

(or)

You can take monthly pension lifelong self and nominee with capital refund.


Age* at EntryMin: 7 years
Max: For Regular Premium & Limited Premium: 60 years
For Single Premium: 65 years
Age* at Maturity70 years
Plan TypeRegular Premium / Limited Premium / Single Premium
Policy Term^Regular & Limited Premium Payment - 10 years, 15 to 30 years (both inclusive)
Single Premium - 5 to 30 years
Premium Payment TermFor LPPT:
5/8 Years for Policy Term of 10 Years.
5/8/10 Years for Policy Term of 15-30 Years (both inclusive)
Regular Premium - Same as Policy Term
Single Premium - One-time payment at policy inception
Premium Amount
(X 100)
Plan TypePremium FrequencyMinimumMaximum
Regular premiumAnnualRs. 30,000Rs. 3,00,000
Limited premiumAnnualRs. 40,000
Single premiumSingleRs. 65,000
PremiumPolicy TermMaturity BenefitYearly PensionMonthly Pension
Rs.50,000 yearly (for 5yrs only)10 years4.42 lacs35,2402,587
15 years 6.67 lacs53,4004,450
20 years10.12 lacs80,9206,743
25 years15.16 lacs1,21,48010,106
30 years23.35 lacs1,86,80015,566
Premium
Rs.1,00,000 yearly (for 5yrs only)10 years8.81 lacs70,4805,174
15 years13.35 lacs1,06,8008,900
20 years20.23 lacs1,61,84013,486
25 years30.32 lacs2,42,56020,213
30 years46.70 lacs3,73,60031,133

Unit Linked Insurance Policies

ULIPS abbreviated as Unit Linked Insurance Plans are long-term Investment cum Protection plans purely depend on Market risks. The first ULIP was launched in India in 1971 by Unit Trust of India (UTI). Major guidelines for ULIP issued by Insurance Regulatory and Development Authority (IRDA) in 2005.


1) I would like to invest in ULIPS. Do you guarantee the fixed return interest along with money i invested in funds ?
There is no guarantee fixed returns in all other ULIP funds except in SBI Bond Fund. We assure 10% growth without considering Capital Markets.

Note: The Premium paid in Unit Linked Insurance Policies are subject to investment risks associated with capital markets and NAVs of the units may go Up or Down based on the performance of the fund and factors influencing the capital markets. Policy Holder is responsible for his/her decisions.

2) what are funds available to invest in ULIPS ?
There are 9 Funds :
a) Index fund;  b) Equity fund;  c) SBI Bond fund;  d) Top 300 fund;  d) Money Market fund;  e) Growth fund;  f) Balanced fund;  g) Equity Optimizer fund and  h) P/E Managed fund.

3) What are Premium modes and Minimum Investment in ULIPS ?
Premium Frequency : Single/Yearly;  Minimum Investment is Rs. 24000 in case of Child Education Plan while Rs. 50,000 in case of all other ulip plans.

4) I need security of income for my Child future studies. Do you have any such Plans ?
Yes, we have Child Education Policy also known as Smart Scholar only available in SBI Life.
Entry Age: Child = 0 to 17 Yrs;  Proposer (Father) = 18 to 57 Yrs;  Max Maturity Age = 65 Yrs; Policy Term = 8 to 25 Yrs less child's age at entry; Premium Paying Term (PPT) = Policy Term
For E.g: If Father Age = 35 yrs;  Child Age = 5 yrs; Policy term = 25-5 = 20 yrs;  Premium = Rs. 24000;  then Investment Returns = 10%;  Maturity Benefit = Rs. 1212900; Sum Assured = 240000 (10 times the premium paid)
Advantage: In case of Proposer dies in the middle of the term, SBI Life will pay rest of the Premiums till the end to support Child Education.

Traditional Plan Insurance

Traditional Plans are long-term, risk-free, regular savings plan with in-built life coverage. This has multiple benefits with Riders.

1) How much guaranteed return interest in traditional plans?
5% guaranteed interest of Sum Assured calculated till the end of the term (Vested Bonus).

2) What are available Traditional plans ?
A) Shubh Nivesh (Endowment Whole Life Plan); B) Smart Money Back Gold.

3) Explain Shubh Nivesh Policy ?
Entry Age: Min 18 yrs to Max 50 yrs; Maximum Maturity Age: 65 years, which increases to 100 years if the Endowment with whole life option taken; 
Policy term = 15-30 years; Premium Frequency = Monthly/Quarterly/Half-yearly/Yearly; Premium Paying Term (PPT) = Policy term; Minimum Savings per Month = Rs. 1000. Maximum Savings Unlimited.

For E.g: if a person of Age 31 opt for Life Insurance coverage = Sum Assured (S.A) of Rs. 4,00,000 with policy term for 15 years (yrs), then the calculated Premium is Rs. 32,654/Year (or) Rs.2721/Month; Maturity Benefit = Rs. 4 Lacs + Rs. 3 Lacs (Vested Bonus for 15 yrs) = Rs. 7 Lacs (or) can take Pension of Rs. 4666/Month whole life. After death of Insured, his/her nominee can claim the pension.

4) What is Smart Money Back Gold Policy ?
Smart Money Back Gold is a savings with added advantage of life cover and cash inflow at regular intervals. Fixed cash inflows which meets your various financial obligations. Survival Benefit of 110% of Sum Assured paid till maturity.

Entry Age: 15 to 55 yrs;  Maturity Age: 27 to 70 yrs;  Policy terms = 12/15/20/25 years; Premium Frequency = Monthly/Quarterly/Half-yearly /Yearly; Money Returns on every 3rd/4th/5th years depends upon Policy TermPremium Paying Term (PPT) = Policy Term; Minimum Premium = Rs. 500/Month; Maximum Premium Unlimited.

E.g: If a person would like to save Rs. 2000 per Month for 12 years, then his Insurance Coverage = Sum Assured (S.A) = Rs. 2 Lacs; he will receive Money of Rs. 40,000 (20% of S.A) in regular intervals on 3rd, 6th, 9th years and at the end of 12th year , he will get Rs. 2,20,000 extra (50% of S.A + Vested Bonus).

5) What are Riders available for Traditional Plans ?