Children Plan

Dear Friends,

             Greetings from Ram Financial consultancy, Every one know that now a days higher education is becoming much costlier than any thing else but no one want to compromise the children education, people are investing money for children now a days. There are so many insurance companies are lunching the Unit Linked Insurance Plans which provides life insurance coverage to the person earning in the family and wealth creation use full for children education.

                  We did some analysis about these plans which will help the people in the process of selecting the best children plan for them. We did this analysis by taking leading companies products.

Report of the analysis :

To enlarge the image please click on the image and open in new web page.

Coming to the point about the plans and the graph in this people can select any plan as per their requirement. But we are prefer Birla Sunlife Children Dream Plan because it gives the capital protection ( guaranteed maturity benefit, which is guaranteed always ) along with equity investment fund options, this guaranteed maturity benefit will be greater than the amount we payed as premium if we are not selecting very high insurance coverage (Enhanced Coverage). Not only this in this particular plan we can increase the insurance coverage to the higher amount with small increase in the premium which means the life insurance will provide the financial security to the family in the absences of the life insured so in this way also the child future is secured.

please check the new article on child plan for more updates.

For more details please contact us at 

sriram.adviser@gmail.com

What type of funds in ULIP

Dear Friends,

           Every one any know about Unit Linked Insurance Plan, This is the time for tax savings investments most of the people with out knowing about all the details about Unit Linked Insurance Plan they are trying to pretend like they know every thing i feel most the people don't know much about the Unit Linked Insurance Plan... 

In this article i would like to present about the different types of funds valuable in ULIPs, before starting about i would like to tell you that all the funds are not subjected to equity risk ( they are not or less dependent on equity markets )

Simple terms the funds are divided into the following there types 

1. Debt Funds
   
2. Balanced Funds 
   
3. Equity Funds 
   

Debt Funds : 

An investment pool, in which core holdings are fixed income investments. A debt fund may invest in short-term or long-term bonds, securities products, money market instruments or floating rate debt or in Fixed deposits. The fee ratios on debt funds are lower, on average, than equity funds because the overall management costs are lower.

Some examples of Govt Securities : 

GOI SPL OIL BOND 2012

GOI 2026

GOI SPL OIL BOND 2015

Balanced Funds :

A fund that combines a stock component, a bond component and, sometimes, a money market component, in a single portfolio. Generally, these hybrid funds stick to a relatively fixed mix of stocks and bonds that reflects either a moderate (higher equity component) or conservative (higher fixed-income component) orientation. 

Example for moderate balanced fund is 60 to 70% in stocks and 40 to 30% in Debt market ( this means in bonds, Govt Securities ect..)

Example for Conservative balanced fund is 20 to 30% in stocks and 80 to 70% in debt market ( this means in bonds, govt securities ect... )

Equity Funds : 

A fund that invests principally in stocks. It can be actively or passively (index fund) managed. In these kind of finds majority of the funds will be invested in stocks. For example i can say 90 to 100% equity investments.

Then what is the risk involved in the Unit Linked Products if you selected Debt Funds or Balanced Funds... When you are choosing these type of funds investor should be very carefully about the charges in Unit Linked Products, why i am ask to look about the charges is simple reason. If a investor chooses debt fund option and first year entry load charges are say 25% to 50% then in that case it will take year to get the fund value to the amount what we payed... For best cost analysis about any Unit Linked Plan you can mail us at sriram.adviser@gmail.com

Related Links :

• Know about charges in ULIPS
  
• Traditional Plans Vs ULIPS