Sunday, 25 April 2021

POWER PLAY YOUR INVESTMENTS THE T20 WAY !

Greetings,


While there are 100s of reasons which attract many to the exciting world of T20 Cricket, what strikes me most is the POWERPLAY 

Earlier the trend was of TEST CRICKET and I would openly say TEST CRICKET is the place where the real skill of any cricketer is tested to the hilt and hence appropriately called the TEST Cricket.

Then came the era of One Day International (50 overs each) which brought the speed to the supposedly long Test Cricket.

But the game-changer was the advent of the T20

20 overs per team and it was a sort of seeing the highlights of an ODI match.

Suddenly the interest in cricket zoomed

 

POWERPLAY:

The one aspect of T20 cricket which everyone loves is the POWERPLAY

Powerplay is the 1st phase of the Innings where there is Fielding Restrictions (only 2 fielders outside 30-yard circle) and Batters have the opportunity to hit the Big Shots.

Even if a couple of wickets falls, the batting side is not bothered as they have a long list of batters to follow.

This is exactly what gives the license for the openers to go after the bowling and try their best to hit Big Sixes and Fours.

 

 

 

 

Every Dot Ball is an Opportunity Lost

This is exactly what happens with our Earning Life

When we start earning the person, she has the least committed expenses (Fielding Restrictions) due to fewer responsibilities.

She is not yet married.... or maybe just gets married and obviously is without kids and thus expenses is very restricted.

That's exactly why the person should start INVEST in a BIG WAY.

and most importantly start with EQUITIES

And even if the investment goes through a couple of Down Periods (wickets falling), still due to long period away towards retirement, she can always do a course correction and get things back on track.

And moreover, the earlier the investment starts, the The wonderful concept of COMPOUNDING start playing and lets you achieve all your financial goal and RETIRE



WEALTHY.

Every SIP missed will result in a HUGE dent in the Final Retirement Kitty. Do not miss even a single month's SIP (don't give dot balls)

 

AVOID EMIs:

Batters are also aware of not going after the bowling blindly and lose wickets. They do take, what is known as, Calculated Risk and reap maximum benefits

Likewise, you should avoid getting trapped in EMI and credit obligations blindly.

 

Scoring fast in the initial overs allows Batting teams to tackle quality wicket-taking bowlers carefully and not take the risk.

Investing big in the initial earning years allows Investors to tackle big-ticket expenses like Kids School, Own Home with Own corpus without depending on unwanted EMI.

 

OPPORTUNITY  TO SCORE BIG :

And we all know whenever a batting side scores big in Powerplay the overall total will be a WINNING score

Exactly, whenever the Initial investment is HIGH, the overall corpus tends to HUGE

 

APPLY POWERPLAY TO YOUR INVESTMENT LIFE AND CREATE HUGELY WEALTH FOR YOURSELF AND BECOME FINANCIALLY INDEPENDENT earlier than your peers!

 

 

MOST IMPORTANT POINT :

No batter will come to cricket pitch without having the necessary protection of Helmet, Guard, Pads, Gloves, etc

The batter has the BAT to score runs but these tools will protect her from

Of course, make sure you have TERM INSURANCE AND HEALTH INSURANCE before you begin investing.

 

 


You can watch the video of this Article here



All the best

Have a Great Innings!!

Srikanth Matrubai

 

#DontRetireRich

#WealthyHabits

 

 











You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH
Do read the book and give your valuable feedback and request you to post positive comments on Amazon.

   https://amzn.to/3cHUM6M/


You can purchase the book on Amazon and Flipkart

 Please subscribe to my TELEGRAM channel https://t.me/MutualFundWORLD/

Friday, 23 April 2021

MAKE YOUR HOME LOAN INTEREST FREE! HERE’S HOW





HOW TO TURN YOUR HOME LOAN INTEREST-FREE?

Namaste and Greetings

Would you like to make your loans INTEREST FREE?

Would you like to get back all the Interest Paid to the Bank at the end of your Home Loan Tenure?

Yes….

It's definitely possible to make your Home Loan free.

Interested?

Let's understand how to do it

Having your own HOME is a DREAM for every Middle-Class person.

Our earlier generation used to work throughout their career, accumulate their hard-earned money, and at the end of retirement, the period used to have their own home.

But this generation is lucky that they can dream and actually have their OWN HOME due to the easy availability of Home Loans.

And due to peer pressure, even youngsters who have just started to earn dream of having their own home.

And we all know that Home Loans tend to be huge and come with big interest costs.

So when you do get your own dream home, you are very happy but the happiness gives way to a bit of stress and tension.

Why?

Because you have to pay monthly EMI.

And friends, do you know, you end up giving MORE amount via EMI to the Bank than the amount you have taken as Loan.

For example :

Suppose you take a Rs.50 lakh loan at 8% interest

for 20 years, the EMI will be Rs.41,822 and total repayment = Rs.1,00,37,281

for 25 years, the EMI will be Rs.38,591 and total repayment = Rs.1,15,77,243

for 30 years, the EMI will be Rs.36,688 and total repayment = Rs.1,32,07,762


the EMI reduces when you increase the tenure of the loan

but whatever the tenure…the sad reality is that you end up paying MORE than your loan amount to the Bank and this is called INTEREST.

Today WEALTHY HABITS readers will be shared a secret on how to GET BACK THIS INTEREST AND MAKE YOUR HOME LOAN INTEREST FREE

Even if you don’t like Mathematics, seeing the formula we are sharing you will start loving Mathematics !!

WHAT YOU NEED TO DO?

Very simple.

Friends, you need to THINK / ASSUME that your EMI is 10% more (if you w

Meaning, if your EMI is Rs.20,000 you need to think it is Rs.23,000

or

If your EMI is Rs.25,000, you need to think it is Rs.28,750


Now this extra 10% you shouldn't give to Bank but you need to INVEST in Mutual Fund through a SIP (monthly Systematic Investment Plan)

Make sure to invest in that product/fund where the returns are expected to be MORE than your Bank Loan Interest.

Now you may say, “I am already paying so much EMI, how can I afford another 10%”

Well dear friends, when you go to Bank for EMI and bank says 8% and after coming home, taking friends and family advise, completing all paperwork and go to Bank again and now they say “Interest is not 8% but 9%”

Will you then cancel the purchase of your Dream Home?

No….You will definitely tell yourself….

“Somehow I will manage and arrange this extra 10%”

Isn't it?

You may feel awkward that instead of helping to reduce interest we are talking here of MORE interest.

As we said earlier….you need to INVEST THIS ADDITIONAL 10% AMOUNT IN FUNDS WHICH HAS POTENTIAL TO GIVE RETURNS MORE THAN YOUR HOME LOAN

Now…suppose you take a Home Loan of 50 lakhs for 30 years at 8% interest, then your EMI will be Rs.36,688

Now 10% of this will be Rs.3,700 (rounded off)

You need to INVEST THIS Rs.3700 in a Mutual fund.

With our more than 3 decades of experience and long-term return proof, let's assume that your investment of this additional EMI of Rs.3,700 SIP will result in a return of 12% p.a.

Now this will result in OUTGO of

TOTAL AMOUNT PAID FOR 30 YEARS

EMI = 1,32,07,762

SIP = 13,32,000

TOTAL EMI + SIP = Rs.1,45,39,762 is the OUTGO from you

Remember your loan is Rs.50,00,000

which means

Rs,1,45,39,762

-Rs.50,00,000

= Rs.95,39,762 is the INTEREST you have paid


Now let's check how much Rs.3,700 (extra assumed EMI ) invested in Mutual funds at 12% would have grown.

Friends, it would have grown to Rs.1,13,99,601

Total outgo of Rs.1,45,39,762

Amount recd from Mutual fund = Rs.1,13,99,601


Net OUTGO

 1,45,39,762

-1,13,99,601

= 31,40,000

You had taken a Loan of Rs.50,00,000

but due to OUR FORMULA, you have paid only Rs.31,40,000


NOT ONLY DID YOU RECEIVE YOUR ENTIRE INTEREST AMOUNT BACK BUT AS A BONUS YOU ALSO RECEIVED SOME AMOUNT OF PRINCIPAL TOO !!

How did this magic happen?

Just by a simple formula of assuming/thinking that you are paying 10% extra EMI


BY THE WAY, IF YOU ASSUME AND CAN INVEST 15% OF THE EMI AS SIP IN EQUITY MUTUAL FUNDS THEN YOU WOULD EASILY BE ABOVE WATER

AS YOU CAN SEE FROM THE ABOVE IMAGE, YOU COULD ACTUALLY END UP  HAVING MORE MORE THAN YOUR TOTAL INTEREST PAID PLUS THE PRINCIPAL WHEN YOU INVEST 15% OF THE EMI. 

In fact, in the above image, I have assumed Home Loan at 11% (as worst-case scenario) 

This is not magic my friend, but pure REALITY in front of you. 


Friends, this monthly SIP amount is indeed small but because you are giving a long time of 30 years, the COMPOUNDING MAGIC helps in making it such a big amount that it not only made your HOME LOAN Interest Free but also helped you get back some Principal amount!

In India,, as soon one gets married, the pressure to have an OWN home starts and the majority get sucked into the EMI trap and forced to mentally shut out all the other saving options due to mounting expenses.

But following our formula, you can not only have your dream home but also recover all the interest you have paid.

All you need is some discipline of setting a small portion of your income along with your EMI payments.



And yes, do not forget, since equity mutual funds are market-linked, you will have to contend with the volatility in the interim period.

You are strongly advised to consult with a Financial Expert or a Mutual Fund Distributor and make a considered decision.


Regards,

Srikanth Matrubai



P.S. I would like to thank my mentor JIGAR PAREKH for the idea 

***********************************************************************************



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You are strongly encouraged to consult your financial planner before taking any decision regarding this investment. The views expressed here is the authors personal views and should not be intrepresented as a recommendation to invest/avoid.
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH
Do read the book and give your valuable feedback and request you to post positive comments on the Amazon. https://amzn.to/3cHUM6M/ You can purchase the book on amazon and flipkart Please subscribe to my TELEGRAM channel https://t.me/MutualFundWORLD/

Sunday, 18 April 2021

2 SHARES OF AMAZON BOUGHT IN 1997 ARE NOW WORTH AN HOUSE AND MUCH MORE !!





In his annual letter to shareholders, Chairman of Amazon, Jeff Benzos shared a story of a couple who bought 2 shares of Amazon in 1997 and after a phenomenal rise of 172000% are now buying a house with selling a part of their shares. 
Note... only a part not full. 

The letter is attached herewith. 










The 2 shares grew to 24 shares after 3 splits. 


See the content of the letter. 



Jeff Benzos says 
"I am approached with similar stories all the time. I know people who've used their Amazon money for college, for emergencies, for houses, for vacations, to start their own business, for charity - and the list goes on. I'm proud of the wealth we've created for shareowners. It's significant, and it improves their lives."
He further said "Remember that stock prices are not about the past. They are a prediction of future cash flows discounted back to the present. The stock market anticipates."



See how much they have GROWN ALONG WITH THE COMPANY. 

The couple was NOT lured by short-term profits. 
They bought it with a clear focus on LONG TERM and most importantly HELD THE SAME 
The couple admit they were attracted to book profit but reminded themselves of the LONG TERM GOAL and held on
And now they are reaping the benefit

1 share is now worth $3,400
those 24 shares are now worth $81,600which in Indian Rupees is approx Rs.61 lakhs 
Yes you read it right

Want to know the cost?
To make it simple for you to understand......I will present in Indian Rupees
Amazon came out with an IPO of $18 per share
Indian Rupee was 42.15
So, the 2 shares cost the couple Rs.758
and now in 2021, the couple (if they sell) will get Rs.61,20,000



Those 2 shares of Amazon bought in 1997 at a cost of Rs.758 is now worth Rs.61,20,000 /- 

WHAT A FASCINATING TRUE COMPOUNDING STORY. 


Investment = Rs.758
Present Value = Rs.61,20,000

a compounded return of 53.5% 
A CAGR of 53%
Yes... a return of 53% year after year COMPOUNDED !!!
Business Insider says based on the closing price of the IPO day of Amazon, the returns are 172499% 

If I round off this investment to Rs.10,000 then it will look like this

Investment = 10,000 (in 1997)
Present Value = 8,07,38,000  (in 2021) 
Yes that 10,000 investment would be worth Rs.8 crore today 


Where the Real Estate Fans?


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PLEASE NOTE :

An individual stock can boom or bust and you need to keep a constant vigil.
I would still stick out my neck and say a combo of 
Term Insurance
20% Direct Stock
80% Equity Mutual funds 
is the best way to create Super Wealth over a long period of time.

DO NOT YIELD TO TEMPTATION. 
IF IT IS FOR YOUR KIDS EDUCATION GOAL......FOR GOD'S SAKE ....HOLD IT TILL THEN. 
DO NOT SELL 



Jeff Bezos in his final letter as Amazon CEO: ‘The world wants you to be typical. Don’t let it happen’
So don't be a typical Indian Investor and put money in FD and Gold
Be different, look at Equity mutual funds
So, DON'T RETIRE RICH
Become Financially Independent and Retire SUPER WEALTHY by following WEALTHY HABITS 

All the best
Srikanth Matrubai
Author - DON'T RETIRE RICH




You are strongly encouraged to consult your financial planner before taking any decision regarding this investment. The views expressed here is the authors personal views and should not be intrepresented as a recommendation to invest/avoid.
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH
Do read the book and give your valuable feedback and request you to post positive comments on the Amazon. https://amzn.to/3cHUM6M/ You can purchase the book on amazon and flipkart Please subscribe to my TELEGRAM channel https://t.me/MutualFundWORLD/

Thursday, 15 April 2021

CORE AND SATELLITE APPROACH TO INVESTING

 

 

WIN-WIN approach to Wealth under all market conditions

 

 

The SECRET OF WEALTHY Investors is that they follow strategies and approaches which take less of their time but at the same time, give better returns than the average portfolio and one approach which the majority of Wealthy Investors swear by is the CORE AND SATELLITE approach to investing.

 

THE CORE AND SATELLITE approach is suitable for ALL TYPES OF INVESTORS and for all types of markets.

 

A poll in the Financial Times (June 2020) found that more than 2/3rd of  400 list of leading advisors have built core-satellite portfolios for their wealthy clients.

 

 

CORE AND SATELLITE approach is one of the simplest, effective, proven way to derive the best of both worlds of having a good decent all-weather portfolio and also make good returns

 

CORE & SATELLITE approach is to SPLIT your portfolio into 2 components namely the CORE part and the SATELLITE part.

 

CORE part of the portfolio focusses on LONG TERM and focus on BUILDING A STRONG FOUNDATION and making sure that nothing can shake the strength of your portfolio. CORE component tends to have Large Caps, High Dividend Yield, ETFs, REITs, and even Debt exposure.

 

SATELLITE part of the portfolio focusses on giving you that EXTRA kicker (the extra returns) and focuses on companies which could become MULTI-BAGGERs and consists more of Mid-caps, Small-caps, and even Theme/Sectors with clear-cut idea to MAXIMISE returns.

 

 

 

CORE is the bedrock and broader-based and the intent is to PROTECT

SATELLITE is more company-specific (could be theme/sector funds too) and is geared towards EXTRA returns.

 

 

CORE part of the portfolio is BORING and seldom needs your attention. CORE tends to give returns on par with Index and maybe just a bit slightly more

 

SATELLITE part of the portfolio is more geared towards the EXCITEMENT and needs constant monitoring and the investment requires constant regular monitoring.

 

 

 

Benefit of Core and satellite is

It increases the productivity ....in a sense.... you can now FOCUS on creating that EXTRA returns via the SATELLITE component of the portfolio as CORE component does not require that much energy and research

 

Of course, cost too as only the SATELLITE is being moved in and moved out whereas CORE will STAY as it's intended for long term

 

To begin with... FOCUS more towards building up the CORE part of portfolio till you get a hang of things and only later when you have sufficient knowledge.... you should look at SATELLITE and increase the same.

This applies to both Mutual funds as well as Direct Equities

 

 

The default is to have 30% in Satellite part of the portfolio and 70% in Core part of the portfolio.

 

Young investors and slightly aggressive oriented investors do tend to have 60% in Satellite and 40% in Core

 

The percentage of your exposure to Core and satellite depends on various parameters like your Risk Profile, Time Horizon which an experienced MFD/CFP would be able to do for you.

 

It’s generally the rule of thumb that the exposure to Satellite component of the portfolio is to be gradually reduced as you approach your Retirement.

 

 Do read my book  DONT RETIRE RICH and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/



The Perfect CORE & SATELLITE portfolio brings various benefits like

a) Provides adequate Diversification.

b) Stable Portfolio hugely cushioning the negative surprises.

c) Requires less time than a full-fledged regular portfolio

d) Reduces transaction cost as only the SATELLITE component is tinkered with.

e) Tax Outgo too is reduced

f) Beats Inflation

g) The right balance between Risk and Returns.

h) High Potential to outperform the Markets.

 

Core and Satellite is like having the BEST CRICKET TEAM full of Top-Quality Batsmen, Top quality bowlers and an amazing combination of All Rounders who can beat any team on any pitch on any day!

 

 

NOTE:

The SATELLITE part of the portfolio should be Complimentary to the CORE part and should make the portfolio COMPLETE in all aspects.

The idea is to PROTECT and at the same time, INCREASE RETURNS without compromising on the safety aspect.

 

 

 

 

 

To conclude the CORE & SATELLITE is an approach, ultimately to make this approach successful, you need to have the right kind of funds/stocks to compliment them and for that, you need to have someone who is EXPERIENCED enough who has successfully handled investors portfolio overall types of market cycles.

 

Hence, it’s a request to please contact a proven successful experienced MFD who has been there and done that and surely you will be on the Expressway to super Wealth Creation Road.

 

 

 

Please note that there is no such thing as the BEST WAY TO BUILD A PORTFOLIO.

Having said that CORE & SATELLITE is a proven concept and should be seriously considered for a trouble-free Wealth Creation Journey.

 

All the best in your Wealth Creation Journey and Please DON’T RETIRE RICH.
FIRE AND RETIRE WEALTHY WITH WEALTHY HABITS!

Regards,

Srikanth Matrubai

SRIKAVI WEALTH











Author : DONT RETIRE RICH





You are strongly encouraged to consult your financial planner before taking any decision regarding this investment. The views expressed here is the authors personal views and should not be intrepresented as a recommendation to invest/avoid.

Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on the Amazon. https://amzn.to/3cHUM6M/
You can purchase the book on amazon and flipkart

 Please subscribe to my TELEGRAM channel https://t.me/MutualFundWORLD/

Friday, 2 April 2021

WHICH IS THE BEST CHILD INSURANCE PLAN ?

Greetings Friends,

 

The Birth of a Child brings a lot of joy to parents.

After the initial euphoria settles down, the future expenses start staring at your face. Even if you don’t think about this, the innumerable ads on TV, in newspaper, Bill Boards will not let you forget them.

 

They start emotionally attacking you

 

“Are you a Responsible Parent”?
“Have you planned for your Child’s Higher Education”?
“Have you planned for your Child’s Marriage”?

 

So, then, you are forced to start thinking of your Childs Future.

 

 

And, what do you see?

Of course, the umpteenth Child Plans splashed across. Whether you like it or not, you will be bombarded with the "specialties" of these plans and the Companies leave no stone unturned to make you feel that they are next only to God when it comes to protecting your dear child's future.

 

They promise you that they will pay for your Child’s Higher Education, her Marriage, etc.

And, yes, these Ads spare no effort to instill fear in you 

 

“What will happen to your Child in case of your untimely death?”

 

This one line is enough for every parent to run to Insurance Agents to get a Child Plan.

 

Before diving into the sea of these Child Insurance Plans, you will do well to do some basic homework like

 

1.     1. When will your child need the money?

 

2.    2.  How much will you need for the particular goal (Marriage, Education)?

 

3. How much you will be able to save?

 

 

4.     4. How much Insurance Cover I need?

 

Besides the above, you will also have to consider various factors like whether you have any loan, you have your own house, are there any other breadwinners in the family, etc

 

 

 

UNDERSTANDING CHILD INSURANCE PLANS :


There are basically 3 types of Child Insurance Plans namely

1. Money Back :
This is by far the most POPULAR plans. Under this plan, your child will get Survival Benefits at regular intervals.

For ex :

AT your Child's 18 years of age, she would get about 20% of Sum Assured, and a further 20% at age of 20 and so on.

This Plan is useful for those who feel the need for Lumpsum requirement at regular intervals and helps you in Life Stage Planning. 

Another good benefit, is these plans offer Premium Waiver Benefit which ensures that in case of death of a Parent, then the Premiums are waived off and The policy continues with benefits.  (Please make sure, that this benefit is there in the policy before taking one).

 

The BIGGEST disadvantage with these plans is the dismal returns often failing to match even Inflation returns.

Especially, if you are planning to buy Money Back Plans for your Child's Education, then this is definitely NOT advised. Education Inflation is at around 12% and this Money Back should be giving you less than 7%........leaving you grossly underprepared at the time of Goal.

Also, the Premiums are steep and are best avoided.

 

MOST IMPORTANT

These Plans actually cover the Child and not the Parent! (How stupid). So, in case of the untimely death of your Child, you will get the Sum Assured. I wonder which Parent would like to take this?? It is your Child who needs Financial Security and not you!

If the Child survives





The term, then you will get the entire Sum Assured along with Accrued Bonus, et al.

 

 

2. ULIPS :

ULIPs are Unit Linked Plans which are non-traditional plans wherein Returns are Market Dependent.

 

Under ULIPs, the Life Insured is the Parent. If the Parent dies (or in some policies gets diagnosed with Critical Illness), then the Child would receive the Sum Assured in Lumpsum. Not only this, but the Future Premiums are also waived off (the Company pays the same) and on Maturity, the Child would get the Fund Value too!’

ULIPs plans offer a variety of funds ranging from Conservative to Balance to aggressive.

Under ULIPs, you can change from Debt to Equity and vice versa without the worry of Taxation, thus enabling you to benefit from both Timings the Market and Rebalancing your Portfolio.

 

 

Sadly, the charges are too high in ULIPs. These ULIPs levy a variety of charges on your Child Plan by way of Premium Allocation Charges, Policy Administration Charges, Mortality Charges, Fund Management Charges, etc.

This would affect the returns generated by investment in Market Related Instruments and ultimately the Corpus that your child receives.

 Another negative against ULIPs is in case of emergency and you want to surrender or do partial withdrawal, the charges are high and also attract Tax.

 

While a long Term ULIP (above 15 years) could cost less than a Mutual Fund, flexibility is a huge issue. You just cannot move from one ULIP to another ULIP as in case of Mutual Funds.

Putting money in Child ULIP plans is akin to putting all your eggs in One Basket!

If the ULIP underperforms on a consistent basis, you are stuck!

 

I always say ULIPs are expensive products with high initial charges. I am not in favor of any child plan. If one has enough term cover that will do. Child plans are long-term gambles like ULIPs. How well an insurance company manages your investment part is a gamble. These are all ways to get more money from you. At maturity, you will realize that the returns are not great. Better to keep INSURANCE & INVESTMENT separate.

 

 

ENDOWMENT POLICIES:

Endowment Policies are one where lumpsum amount is paid at the time of the Maturity along with bonuses.

This type of Policy is very useful to plan for your Child’s BIG expenses like Wedding, Higher Education, etc

And, unlike ULIPs, there is a minimum guaranteed amount of payment. Besides, you may get Bonuses too. Endowment Policies too invest in Market backed securities, but unlike ULIPs, they invest only in Debt products and the returns too are not exactly spectacular.

 

 

There are two major drawbacks with Endowments Plans

1.               The Returns are pathetic, with less than double digits, and come nowhere even near Inflation, forget about the Education Inflation which is in High Double Digits.

2.               The Insurance Cover too is almost always very little. (If you require higher cover, you will obviously pay a steeper premium).

If you do want to take up an Endowment Policy, treat it as a Debt Portion of your overall Asset Allocation.

 

Almost all Child Insurance Plans cover the Parent and thus, if in an event of an unfortunate untimely death of the Parent, the Child’s needs would still be taken care of by way of Lumpsum payment on death and also on Maturity.

 

 

 

Child Plans are just Attractive Packages with nothing inside.

Yes, on the untimely death of Parent, some policies offer Waiver of Premium and the Policy continues but this benefit comes at a high cost as the Premium increases due to this Rider. And, Mortality Rate Charges for a Child Plan are quite high too.

 

Insurance should be taken only for covering your Life and should never be taken as a part of Investment. Never.

So, if the Child Insurance Plans are not matching your needs, what is the Alternative??


The Alternative, my friend, is the COMBINATION OF TERM PLAN AND MUTUAL FUNDS:

 

Term Insurance Plans are the BEST way to cover your life as they are very affordable.

 

And Mutual Funds ensure that you get Market Returns without the painful payment of High Charges which you may have to bear in case of ULIPs.

 

So, in nutshell, my dear investor, please remember that just investing in CHILD EDUCATION PLAN does not guarantee you get the money you require for your Child’s education.

You need to invest in the Right Asset Class after taking Protection through Life Insurance Cover.

If you are still a fan of Insurance combo than, you are suggested to take a ULIP, especially if the goal is at least 15 years away.  But, do remember, that ULIPs may leave in the false hope of adequate coverage as the Premiums will be steep as the Cover goes up. They leave you Under-Insured.


Endowment and Money Back are a strict NO-NO. Investing in an Insurance Plan which gives less than 7% when the Inflation is growing at 7% is definitely not a wise thing to do.


T





he financial future of a child matters and mere emotions will not ensure a luminous career and life for the child. It has to be backed by a pragmatic and concrete financial plan so that dreams get translated into reality.

My Final Take is that there is nothing to beat the Combination of Term Insurance Plan with Diversified Mutual Funds.

 

And, yes, along with this also invest in other products like Sukanya Samruddhi, PPF, etc

So, dear friends, selecting the right plan for your child is  NO CHILD’S PLAY

Please take the advice of a Competent Financial Advisor. 

 

Best of luck,

Srikanth Matrubai

CEO,

Srikavi Wealth

Certified Volatility Coach,

Author – Don’t Retire Rich

 

 You are strongly encouraged to consult your financial planner before taking any decision regarding this investment. 

The views expressed here is the authors personal views and should not be intrepresented as a recommendation to invest/avoid.








You are strongly encouraged to consult your financial planner before taking any decision regarding this investment. The views expressed here is the authors personal views and should not be intrepresented as a recommendation to invest/avoid.
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH
Do read the book and give your valuable feedback and request you to post positive comments on the Amazon. https://amzn.to/3cHUM6M/

You can purchase the book on amazon and flipkart



 Please subscribe to my TELEGRAM channel https://t.me/MutualFundWORLD/

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