DWQA User Profile subbu090102Questions(1)Answers(0)Posts(0)CommentsHi Sreekanth : I have a similar endowment plan from Max Life. Unfortunately I purchased in 2003 and have been paying a premium of Rs25000 per annum. The policy ends on 2023. There is an annual bonus they declare each year which has an option to buy additional paid up additions or we have an option to adjust it against annual premium or encash it. They promise some sort of bonus on maturity. Over the years I realised they gave an illustration that captures the expected bonuses each year and what they have actually declared is much lower. The policy has accumulated some money over the years as I have not dipped into policy additions. Now I am not sure what to do I have paid 14 years and have 6 years pending. Do you suggest I cancel the policy or wait for the policy to get over which is another 6 years. About 1.5 L is to be paid in the next 6 years and you are right I will probably get about 6% finally. I now invest more prudently in MFs thanks to sites like yours.On Discontinuation of Endowment planHi Srikanth : High corpus in FD is largely due to the accumulation of salaries we have a sweep in facility on the corp salary account and over the years the amount accumulated, also I have a separate account for the MF and SIP investments ; I transfer from the salary account on a need basis. It was not so bad until a few years back as the interest component on the FD was reasonable and the stock markets were largely flat from 2008 until 2013. My SIP accumulation shot up considerably due to the bull run but the auto renewal have only resulted in each cycle of renewal dropping ROI to 6.5% range. Entering the market with lump sum investments at these levels might not be wise and neither is it wise keeping the money in FD. That's when I read your article on MIP and Debt funds and was wondering if It is OK to invest in MIPs. I did invest in Birla Dynamic bond fund which lost its shine after Feb.Am fine to take calculated risk, so will be ok with whatever you recommend or any approach you suggest or any investment channels you recommend. I would prefer the conservative MIPs to aggressive ones though I already have some exposure to Birla MIP 25. I also like the arbitrage funds because of Tax free returns after one year but am not sure what to expect from them since the market is on a upswing. But if I do not generate a return of at least 10% the inflation will anyway eat up my capital.On Answer for Long Term lump sum InvestmentCrop
