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
  

Happy New year

Dear Friends,

             Happy new year.... Hope this new year will get all success for every one of you... :) 

Best in Unit Linked Plans

Dear Friends,

           So many people will afraid to invest in unit linked products, most of the people know only one side of the coin of unit linked plan,  There is other side of the coin for these unit linked plans which offer us some kid of less risk, Lets see how these unit linked products work for a intelligent investor.

For example i am taking a product in which there are 5 fund options. The reason why i am taking like this is typically all the unit linked products will come with 5 fund Options and 2 to 4 switches free per year (in some funds there will be 2 free allotment switches free per year).

If we suppose two investors Mr.Mukesh and Mr.Mahesh how took this Unit Linked Plan ( any thing with insurance or with out insurance ), both invested 50K per year. If we suppose these people started investments in 2006 when markets (BSE-SENSEX) are at 10K levels, at these levels if they all ready invested two premiums then lets think the fund value is 1lakh, i will consider the funds in the Unit Linked Plan are Index performers ( most of the times funds will out perform the indices's).  

Lets see how these people made money in the markets with the help of unit linked plans.

           This image will show there funds values at levels when BSE Sensex fall to 8K in recent times. Mr. Mukesh used switching option provided by the Plan to grow his fund value and Mr. Mahesh Simple invested and stayed like that with out any switching in the funds.  

Simple logical thing every one should understand about this fund switching. when Stock markets are at low levels we should start putting our money and when its going up we should start with draw or move that to debt fund options provided in the Plan, these type of debt funds are not going to depend on the Equity markets. 

Lest so how this happened in this Scenario.. When Sensex is at level 10K both fund values are at 1,00,000 and when market reached 20K level there funds values gone up in a short time of duration so he switched his funds at 20K level to debt funds. after the 20K mark Sensex reached 21K level also but it started falling down.. this may be because of economic problems, in general there will be a small correction in the market followed by a relay in the market. 

At 20K level there fund value is 2,00,000 (2 lakh), because Mukesh moved his funds into debt fund there is no down fall in his fund value but for Mahesh fund is gone down with sensex. At 8K level Mukesh moved his funds (2lakh) in to equity oriented fund so when it gone up to 10K level (2.5 Lakh) the fund value he moved it back to debt fund. Ultimately he is with 2.5lakh now at the current levels. but where are Mr. Mahesh did not do all these things so he is with 75,000 now.

This is the big advantage of Unit Linked Plan over other investment Options ( Mutual Funds ). so if every one try to use this option what really help them to grow their fund value much better than any other funds.

why you need to plan for retirement?

Dear Readers,

Greetings from Ram Financial Consultancy, I would like to share some important facts with all of you about some pension plans which are use full for your tax planning as well as your retirement planning, now a days so many people are neglecting about the retirement plans. First i would like to share some survey results with all of you.



Year 2020 prices are just productions with minimum price increase in the products. Even in the worst situations prices may cross this or may be less also.




In above tables will show you how cost of leaving is rising in India, to day you are working so you can spend but thinking about tomorrow once you are retire from your job, Do you know how much you need to send per month for you and your wife to maintain same life style.

Your Today's Spending per month : 20,000 ( for a family of 3 people )
After 25 years from now expenses per month : 3,83,000 ( for a family of 3 people )

this table is created by taking the cost of leaving is rising @ rate of 9% per year. simple logic behind this.

So to ensured that you are maintaining the same life style you need to keep up and plan for your retirement.

Government is showing that inflation is near 5% from last 4 to 5 years but actually the prices are rising more than that. please keep your eye open so the real inflation.

For best retirement or Pension plan please contact us @

Email id : sriram.adviser@gmail.com
phone no : +91-9741598945 (India)
+1-408-250-9952 (USA)