Looking for Investment Advise

[chandannasta 4]

Hello Guys, First I would like to wish you all a very Happy New Year. Now I need to know since 2012 has already started which are the good policies that I can invest upon if I got some money to Invest.

1. Should I go in for the 20 Yrs investment which will give me good returns after 20 yrs? If yes then which policies are best for new year and you personally have tried yourself and benefitted from it. You personally have not been harassed when your maturity date comes and u dont have to go here and there for any kinda thing when the payment comes. So I wanna know such plans where no hidden charges are there. It should be explain neatly at first only and then you can invest easily and no harassment of anything or idhar is afsar ke paas jao usko khilao not that kinda thing should happen.

OR

2. Should I go for a money back policy which is like kinda I keep getting the money after every 5 Yrs and this goes on for 20 yrs and then good the good amount so that I dont have a money problem. If yes then which policy is the best which would give good returns after every 5 yrs.

OR

3. Should I invest in something else? If yes then bonds debentures what please let me know?

Now guys for all these 3 questions I need your opinions based on your personal experience and you have all benefitted from that till date. Dont juz give names if u don know anything abt that policy. I dont have any knowledge abt shares or mutual funds so I cant invest in those as I m novice in that. So juz wanna know where could I get good returns in policies like governmental or private which 1s juz name them and you yourself have reap the benefit out of it. The money which i should Invest should save my tax and the money which I should get in return should be tax free. So let me know such plans/policies please.

[commonman 228]

you need to decide what you want. Do you want an insurance cover or an investment option?

A product that tries to achieve both ends up achieving none. It is like a multipurpose river-dam project where one objective is flood control (for which the dam must be kept empty all the time) and the other objective is irrigation (for which the dam needs to be kept full). In the end it is neither kept full nor empty but half full. So when the flood really comes, it can not control it and again when drought comes, it can not provide enough water for irrigation.

Separate your insurance and investment needs. Go for pure term policies to take care of your insurance needs at very nominal premiums. Utilise the balance amount in hand for pure investment products.

If you do not want to take risk, go for the tax-free bonds now available. Very good options for those who are in 30% tax bracket. Utilise the Rs.1 lakh per year limit for PPF - the interest is taxfree. If you want to take some risk, go for Gold ETF or mutual fund.

The only exception to the above rule is for those who are Defence or Central/State Govt or PSU employees. Take an endowment policy under Postal Life Insurance (Max. limit Rs.10 lakh face value). It provides life insurance and also consistently has declared 7% annual return (in form of bonus) for past several years.