LIC New Children’s MONEY BACK PLAN – Features, Review & Returns Calculation

LIC New Children’s Money Back Plan (Plan / Table no 832) is a new Money back plan from Life Insurance Corporation of India (LIC). LIC has launched this plan on 4th March, 2015. This new money-back plan is a non-linked, with profits and regular premium payment policy. It is a savings cum protection plan.

Before analyzing the details and returns of this new LIC child policy, if you understand how this child plan works, I am sure you as a parent / guardian of your child, may definitely ignore these kind of meaningless plans.

Under this plan, you (parent / guardian) are the proposer. Whereas, your kid’s life is covered. Your baby’s life is insured. Sounds stupid? Yes, generally you would like to have a risk cover on your name/life, so that in case of any unfortunate event, your kid / legal heir/ nominee will receive the claim amount.

In this plan, in any unfortunate event (on kid’s death, can’t even imagine this happening!), you (parent) will receive the death benefits. If kid survives till maturity, he/she will receive the money-back payments (survival benefits) at periodic intervals (after 18 years of child’s age)

Unfortunately, if parent dies, kid will receive all survival benefits, only if ‘Premium Waiver Benefit Rider’ is selected.

Its very disappointing and disheartening to see LIC come up with a bad scheme like this. If you are convinced about my views, you may ignore buying this plan. Need more details?… you go!

Features of LIC New Children’s Money Back Plan

  • Minimum & Maximum Entry Age : 0 to 12 years (Kid’s age)
  • Life Assured / Insured : Your kid’s life is insured under this plan
  • Proposer’s Minimum / Maximum Age : 18 years / 55 years (Proposer can be Kid’s parent / guardian)
  • Policy Term : Maximum upto 25 years of kid’s age. (If kid’s age is 10 years, policy tenure is 15 years)
  • Premium Paying Term (PPT) : Maximum upto 25 years. (If kid’s age is 10 years, PPT is 15 years)
  • Minimum Sum Assured : Rs 1 Lakh
  • Maximum Sum Assured : No limit
  • Premium Waiver Benefit Rider (optional) : Available. (LIC’s Premium Waiver Benefit Rider is available as an optional rider on the life of proposer aged between ages 18 to 55 years by payment of additional premium. In case of death of the proposer, the premiums under the basic plan falling due after the date of death shall be waived.)LIC New Children's Money back plan

LIC New Children’s Money Back Plan – Death, Maturity & Survival Benefits details:

  • Death Benefit : If death occurs before the commencement of risk, an amount which is equivalent to the premium payments is paid. If death of the proposer occurs after the commencement of risk, death benefit amount which includes ‘Sum Assured on death + Accrued Bonuses + Final Additional Bonus‘ will be paid. (Commencement of risk is linked to kid’s age. If kid’s age is above 8 years, date of commencement of risk is immediate. Sum Assured on death is higher of 10 times of annualized premium or Absolute amount Assured to be paid on Death i.e. Basic Sum Assured.)
  • Survival Benefits (Money Back payments) :
    • 20% of Sum Assured is paid when child completes 18 years.
    • 20% of Sum Assured is paid when child completes 20 years.
    • 20% of Sum Assured is paid when child completes 22 years.
    • After the policy matures, maturity amount which includes 40% of sum assured + Accrued Bonuses (vested Simple Reversionary Bonuses) + Final Additional Bonus (FAB – if any) will be paid.

Illustration of LIC New Children’s Money Back Plan

Example : Mr Dev buys LIC’s new children policy. He takes this policy on his kid’s name (newly born baby). Let us now understand how this policy works with the below info-graphic.

LIC New Children's Money back plan illustration example 3

New Children’s Money Back Plan – Returns Calculation

This plan defeats the whole purpose of insurance. I believe that there is no need to do in-depth analysis on this plan. JUST IGNORE THIS PLAN!

My Opinion on LIC New Children’s Money Back Plan

Still not convinced? Lets now look at some other important factors. What is the main purpose of investing in child insurance plans? Most of us may say, ‘ I want to secure my child’s future’ (or) I want to accumulate / create a fund to meet my kid’s education or marriage expenses.

We all are aware of the rising costs of higher education. Each year, tuition, books and other expenses increase. Education inflation is definitely in the range of 10% to 15%. Do you agree with me?

In this scenario, if you choose to invest in this kind of savings cum protection oriented plan, which can generate returns of around 5% to 6% (or max 7%), your main objective (i.e., to secure your kid’s future) will not be met. You will be better off taking a good Term Insurance Plan (Read my article on “Top 7 best Online Term Insurance Plans“) and invest a portion of your savings in different asset categories. These asset categories can be mutual funds, bank deposits, equity (shares), Public Provident Fund, Sukanya Samriddhi Account Scheme… you have plethora of options to choose from.

Investment plans with names like ‘Child plans’ (or) ‘Retirement plans’ may not meet your actual requirements. These kind of defined packages will surely attract lot of investors.  You can create you own portfolio of investments and aim at beating the inflation. Be aware and beware of these kind of Child Plans.

What is your opinion on LIC New Children’s Money Back Plan? Do you think is it worth to invest in this scheme? Do share your views and comments.

Continue reading :

  • Sanjay says:

    Hi Sreekanth,
    Good article. Is the return on investment 6-7 % in all insurance plans.

  • Sujith says:

    Hai sreekant
    Unfortunately i have purchased this plan for my 4 year old son 28 Oct 2019.after reading the documents i have reached the same view as yours. What is the options to get rid of this plan , how much will i loose, i ve a plan with 25000 half yearly premium.

  • Gopi says:

    Pls suggest me ssa plan is best Or lic s pln are best for my 2 yr daughter

  • Raghav says:

    Anna, does the insurance company split premium paid into Insurance Part & Investment Part like in EPF wherein employer share is split into two parts, one contributes to lumpsum payment & the other for EPS (Pension). Emaina idea undha? Is that an internal matter of the company or is there any theory / design / planning behind it?

  • Raj says:

    Hi Sreekanth

    As you mentioned in article above as “Unfortunately, if parent dies, kid will receive all survival benefits, only if ‘Premium Waiver Benefit Rider’ is selected.” so why can’t we buy this plan if we select option “Premium Waiver Benefit Rider”.
    please suggest.

  • Dr P S Dhillon says:

    I am Dr Dhillon
    I want in clear terms that u please suggest me a policy for my 14 years daughter.
    My main aim is that she gets around 25-30 L on maturity.


    This is KUMARASWAMY age 32. This article is very informative and I changed my mind after reading it. I was recently blessed with baby boy (second kid). I am earning 10L per annum. I have LIC policies for 33K and I took HDFC term plan for 1Cr for 35Years 2 years back. For my first kid, I am investing 5500/- per month in 3 equity and 1 ELSS funds. Now I want to invest for my second kid for 6000/- for 20Years. Could you please suggest me best investment plans for 20Years.

  • RAJ says:

    Dear Sreekanth,
    Fully agree with your openion. One should never buy child plan with child education in mind. This policy max returns is 6% and education cost now a days is rising at 10-12% per annum. So this does not serve any purpose.
    Thanks a lot for this article. Keep up the good work. Proud to read your articles. Understood a lot about finance management. Hats off to you.


    • Sreekanth Reddy says:

      Thank you dear Raj. Glad that you are finding my blog posts informative & useful to you. Keep visiting 🙂

  • pranali says:

    Hii my doughter is 5 month old plz suggest best policy

    • Sreekanth Reddy says:

      Dear pranali ..Kindly understand that the your kid does not need any life cover.
      Do you (parents) have enough life cover?
      Read: If Life is unpredictable, INSURANCE can’t be optional

      • Sreenivas says:

        Hello sir,

        My son age is 5 yrs, Pl suggest one best policy for life cover, Education and money back policy.

      • Deepak Gupta says:

        Dear Sreekanth,

        I completely agree with your views. Child life cover is not needed, yes I have taken a LIC term insurance of 50 for me ( Age 28 Years). But considering expenses to be incurred 20 years down line for children, I wish to start investing 5000 per month. one option is to go with SIP or Fixed deposit or recurring deposit in Bank. Kindly suggest some more options, return rate may be around 6-8%. Do we have some good options in LIC considering safe investment.

        • Dear Deepak,
          Good to know that you have taken right decision by getting life cover through a Term insurance plan.
          By the by, you are referring to inflation (expenses after 20 years from now), so why would you like to settle down for 6 to 8% return on investment?
          (considering how the inflation will impact the returns…)

  • anusha says:

    hello my name is anusha i want to invest in LIC for my kid . he has 2 yrs which policy is best and i idnt want any moneyback policy

  • Sandeep says:

    Now I know why LIC AGENTS r rich. Because of all foolish people who don’t understand difference between insurance and investment.
    Very nice article.


    My daughter age 12 years policy. please suggestions best policy

  • upendra kumar says:

    My son age 1 years policy. please suggestions good policy

  • RAJESH says:


  • RAJESH says:

    CONTACT FOR lIC………………………….9880026925

  • RAJESH says:


    • Dear RAJESH ..Why do you think ‘some ideas are useless’, which are those ideas? Kindly share your views.

      • Barin says:

        Rajesh is correct because you don’t understand difference between investment and insurance. This is insurance coverage. For investment you might have lot MF like hdfc200. For investment nobody prefer lic.

  • ch brahmhani says:

    hi sir My son age 10 years I want money back policy. please suggestions good policy

  • My daughter age 9 yrs, suggest any suitable plan for 10 yrs, premium approx 1-2 k per month

  • B. K. KAR says:

    dear sir,

    I have children (girl) with ages 34 month please suggest good policy scheme for their future. ( Stalment monthly Aprochmetly Rs.1000/- )

  • Kapil Garg says:

    Hello, really good article. but i had already buy this plan and now feeling bad about it. how can i get out of this plan and get my money back. i have paid 2 times. please suggest.

  • Pravin says:

    Whereas, your kid’s life is covered. Your baby’s life is insured. Sounds stupid?

    Not just stupid, it sounds cruel too. Who would want that money as a death benefit (Yes, can’t even imagine that happening)

    Good article.

  • Ramesh says:

    Hi Srikanth,
    Need an advise. I am 30yrs old and I have one insurance plan on my name with ICICI Prudential Guaranteed Savings scheme. I am paying 25k per annum from the last four years. Can you suggest a insurance plan, apart from Team plans

  • Ali says:

    *Apologise for the spelling error in the earlier comment.

    Thanks Srikanth for the detailed review of the Child Money Back Policy. I had decided to buy this policy, but after reading your review, I rejected the idea. Thanks.
    Could you please advise me on few long term investment options. I want to diversify my investment but not sure how. I am more inclined towards, PPF, NSC, Mutual Funds, Fixed Deposit…. Please advise.

  • Ali says:

    Thanks Srikanth for the detailed review of the Chind Money Back Policy. I had decided to buy this policy, but after reading your review, I rejected the idea. Thanks.
    Could you please advise me on few long term investment options. I want to diversify my investment but not sure how. I am more inclined towards, PPF, NSC, Mutual Funds, Fixed Deposit…. Please advise.

  • karan says:

    sir I want to know about lic moneyback policy for the term period of 20 years. if possible let me know

  • Subhash yadav says:

    I want know new policy for my child, she is girl. Please all details send me. Ex- Fixed and other

  • yogesh vitthal bachhav says:

    sir, i want 2 buy mediclaim inssurance for my family, my new born baby, wife & me please suggest me the companies who also covered maternitry.

    • Dear Yogesh..Suggest you to check out ‘Heart beat family floater plan’ offered by Maxbupa. Do read the policy wordings before you take final decision.
      The plan provides you maternity benefits for up to two deliveries. To avail this benefit, both you and your spouse should have been covered under this policy for two continuous years..

  • B.MOHAN says:

    Hi, i need one good plane expected lot of day. yesterday i serch the website i got the point.
    so Usefull the plane.

  • Mayuri says:

    I doesn’t hv website..there are many good plans hv come up for children’s future higher studies..I am a LIC agent residing in Mumbai wadala ..anybody interested can phone me up on 9821634451.

    • Mohan S K says:

      I am an LIC & General Insurance Advisor. residing in Bangalore near Banaswadi RamamurthyNagar,
      In am in this Insurance Business for the past 13 Years.I can Insure everything including Vehicles,Health,Building,Household Equipments, Foreign Travel Your Business Place like Shop,Office etc.

      I will be giving service like Timely Renewal Intimation,Picking up premium from your place, Handing over Your Policy Papers,At your convenient time & also help you in your Claims if any thing arises,
      Please feel free to call me at any time for any Insurance Needs
      MY Mobile No is 9916391841

  • Ravi Sejwal says:

    For Advisory in Delhi & NCR
    Please Contact us at
    Cell-9289423663, 01126666645

    You are like the “light”, if you are dead and gone,
    its going to be complete darkness for your “family”,
    I can provide the “light”, for your family.
    You can also ask for Mediclaim, Car, Bike, as well as fire, factory, cash, and house holds insurance etc.

  • vishal sharma says:

    I am interested in this plan so how can I contact for the same.

  • rahul kataria says:

    dear sir,

    i have children (girl) with ages 6 month please suggest good policy scheme for their future.

  • suryakameswari says:

    dear sir,

    i have 2 children (both are boys) with ages 2 and 3 respectively. please suggest good policy scheme for their future.

    thanking you

  • Srikanth Matrubai says:

    Perfectly summed up Sreekanth.
    Running down a LIC product is NOT the goal.
    Investor education is!
    If, an LIC Agent, feels bad…….what can be done?
    Kannada proverb …
    ಕುಂಬಳಕಾಯಿ ಕಳ್ಳ ಬೆನ್ನಿ………….

  • Ram Gautam says:

    Children’s money back plan of Lic is also a very good plan. The best thing about this plan is it is designed to secure child future. This is an investment plan for child education and you can take PWB in this policy. You can calculate the return of every LIC policy on the basis of the last year bonus and final additional bonus declared by LIC. So every Lic policy gives a good return. This is a good Lic policy.

  • Ram Gautam says:

    I think LIC jeevan anand policy is brtter than a term plan. A person having age of 30, he can pay 5000 per month. The Sum assured is 2000000. The insurance cover will start with 2500000 with the accidental risk cover of 2000000. So the total insurance cover starts with 4500000 and insurance cover of 200000 increases every year. The return after 35 years will be one crore and insurance cover will continue till whole life. There is no tetm plan in the market which will give you insurance cover for whole life. After taking jeevan anand policy of lic, no need to take any term plan or do not need to worry about your retirement.

  • Nikesh says:

    Hi Sreekanth,

    Its a really detailed review of LIC’s newly launched child moneybank plan. I am very much convinced why not to go for the above plan. But, if I wanna go for any insurance plan, which child future plan will you suggest? I read your article – ” Top 7 best online term plans in India “, but min age entry for these plans is 18 years.


    • Dear Nikesh,
      Why do you want to take a Life insurance plan on child’s name?
      Do YOU have sufficient insurance coverage? As an earning member of the family, you need to have insurance. Do not invest in child plans..
      Suggest you to take a term plan and invest your savings in different investment options, to secure your kid’s future.
      Read my articles on ” calculate how much to save for your kid’s education” & “Retirement planning in 3 simple steps“.

      • Santanu says:

        Hi Sree,

        You are absolutely correct. There is no point to buy an insurance plan for children. Why a child need insurance until the guardian is alive? It is the guardian who need to insure his/her life so that in case of their absence child’s future plan should not hamper.

        Regarding this policy data, I am strange by seeing that at the age of 18 years, only 20% of amount will be provided as money back. This is the pick time when you invest money for your kids education. And to get a handy money back we have to pay a unbelievable yearly premium. I think it is far better to keep the money in bank account till 18 years of age, rather paying premium and getting back 20% as money back.

  • Narendra says:

    Hi Srikanth,

    I am Narendra, the same guy from the below conversation.

    I have a quick query, if I stop paying premiums of my LIC policies and it becomes paid up, does it affect during my income tax retuns filing or in any other way in the coming financial years. because i am showing those 2 policies premiums under section 80C for the last four years.

    My concern is regarding any loss of extra money if I don’t show it in IT returns from this year onwards.


  • Srikanth says:

    Recently these Certified Financial Planner think after they got CFP certificate, they are genius. These Insurance Products are framed and designed by Actuarians. Dont Insult Our Acturians

    • Dear Srikanth,
      Just because an insurance product is designed by an Actuarian does not mean its a good product (Returns wise or client’s requirements wise). They go by the rules and regulations, thats it.
      We need to tell our clients / prospects about the Pros & Cons of the financial products. That’s what I am doing here.
      By the by, I don’t believe in certificates,knowledge is more important. Willingness to learn is more important. Cheers!

  • Abhi says:


    I met LIC Agent yesday and suggested me Children Money BackPlan . Investing 50 K every year upto 18years and returns would be 2.4 Lakh in 18 , 20 & 22 years and 25 lakhs in 25th year.

    Is this plan really have such returns of around 32lakhs if we invest around 12.8lakhs…Pls suggest ,child age is 2 months.

  • Joydeep Choudhury says:

    Wring against LIC products has become the day to dusk habit of CFPs…..

  • Joydeep Choudhury says:

    Writing against LIC,LIC products and anything related to/with LIC has become the HABIT of CFPs…..The internet has actually helped CFPs to defame LIC….Just make LIFE INSURANCE mandatory and these posts will disappear….I am fed up reading these stories…these CFPs make an anatomical examination of the product and eventually rubbish them off… If term plans are the best plans then these CFPs can file a petition in SC and ask IRDA to withdraw all products other than their favorite Term plan……But these CFPs will leave no stone un turned to scoff at LIC products……..I am fed up reading these bloggers…….Better that these CFPs evolved a blog called LIC HATE BLOG and posted their comments there…………My gosh….when will they stop this ? I am tired are not they….?

  • Joydeep Choudhury says:

    Good news for CFPs…… Pvt Insurance plans have introduced a TERM PLAn where premium is ZERO and INSURANCE coverage is Rs 100000000000000000000000000000000000000000000000000000000000000000000000000000000….Hope this will make them jump with joy……..

    • Dear Joydeep,
      This shows that how much importance you give to ‘clients’ requirements’.
      It this turns out to be true, then i am sure you will be the first person to buy a term plan (with zero premium). Lol 🙂

  • shiva says:

    can u please suggest me the best child plan any company

  • Ramachandran says:

    Dear Friends,
    I am Lic insurance Agent in Chennai.If u want any existing policy service or to take new policy u can contact me by

  • Balaji M says:

    Whats alternate to Childrens money back plan. I have a 2 yr old son, want something like sukanya samriddhi scheme, where i can deposit small amounts every month .

  • Narendra says:


    Ok. I am Convinced to even surrender the policy if required.

    Its a big headache for me to pay that 60000 as premium per year, becuase of this i am unable to save much amount for other investments.

    Waiting for your reply.


    • Dear Narendra,
      Thank you for going through my articles.
      Kindly let me know the commencement dates of the policies.

      I appreciate you for leaving your comments here. These will help / motivate many more investors who are stuck with bad or unwanted life insurance policies.

      The psychological barrier of losing the money, is stopping many policyholders to exit from these kind of policies. It is better to exit from the unwanted policies, instead of compounding the mistake. There are plethora of financial products available. Choose a better product(s) and achieve your financial goals.

      • narendra says:


        The date of commencement of both the policies are 28/09/2011.


        • Dear Narendra,
          Since you have paid three premiums, you may either surrender or make them paid-up (Read my article on “How to get rid off bad insurance?“)
          But, buy a good term insurance plan with sufficient insurance coverage before surrendering these policies.

          • Narendra says:

            Hi Srikanth,

            OK, I have decided to make them a paid up policy, because, atleast in the future I get the reduced Sum assured where I can get back atleast all the premiums I have paid, in the year 2027. Paid up looks better than Surrendering the policy.

            So, I will ignore the existing two policies and will not think about it till maturity in 2027.

            I am planning to take term insurance policy. Which one you suggest. I know the first choice is LIC, but what happens if i ignore the current two policies and take a new term policies. Is there anything to concern in this?? I am still eligible right to take a new term insurance by making the other two paid up?

            Also, Regarding investment, I have one more thing to ask you.

            Apart from the Mutual Fund schemes you advised before, how about Nifty bees.

            Say, from the monthly salary, even after I invest 10000/month in various mutual fund schemes, I am still left with surplus money. So I am thinking to invest 6000/month in Nifty Bees as well. This is also for long term investment. Your advice please?


          • Dear Narendra,
            Yes, you are eligible to take Term insurance plan. While submitting the term insurance proposal, do mention about the exisitng policies and coverage details.
            Anyways, these policies will be in-force ones till September 2015 right? (next premium due date)
            Kindly try to buy a term plan before Sep 2015.
            You can consider Nifty Bees Exchange Traded Scheme.

          • Narendra says:

            Hi Srikanth,

            Thanks for your continuous & valuable support.

            Yes, next premium due date is on or before October,2015.

            This year is 4th year since I took policies ,So, I am eligible to get some amount from money back policy(4th, 8th, 12th years I get some percentage of amount from money back policy and 16th year is the maturity year). I think I get that amount this year september only.

            So, my plan is to take that money and ignore those two policies till the maturity year, so automatically it becomes a paid up policy.

            Now, If I take new term insurance before september, does it create any issue to get amount from the money back policy? Does my new term policy make LIC suspicious on me?, mainly my LIC agent. He told me to remind him in september so that he can arrange me to get money back policy amount.

            Can’t I able to get the money directly from LIC? do I have to go through him? I am planning to dump him.



          • Dear Narendra,
            It won’t create any issue.
            You may try to take LIC’s e-term plan (Term insurance plan) online.
            Did you submit NEFT form to LIC? If done, you have to receive your money-back (survival benefit payment) through online money transfer (direct credit).

          • Narendra says:

            Dear Srikanth,

            I will follow your advice.

            Thanks for all the support so far. I will first settle all these things, then I will talk to you some days later once I start with the investment plans.

            Again, thanks for the support so far.


          • Dear Narendra,
            You are welcome. Keep visiting!

          • Shyamkumar Rudrapati says:

            Risks Associated with MF investments

            ‘Mutual funds investments are subject to market risks, please read the offer document carefully before investing’ is a much repeated, but crucial advice. Market risks can be in the form of economic, financial and political factors that might affect your investments.

            Market risks are broadly classified into two types -systemic and non-systemic risks.

            · Systemic risks are the ones that affect the entire market. It includes volatility in the stock market (equity risk), interest rates (interest risk), foreign exchange rates (currency risk), changes in commodity prices (commodity risk), political factors prevailing in a country and even extreme changes in weather.

            The most effective way to counter systemic risks is to look for investment ideas that can counter volatility of the markets.

            · Non-systemic risks affect investments of a particular sector or industry. While systemic risks are usually unexpected and unavoidable, a diversified portfolio can reduce the impact of non-systemic risks.

            An investment in mutual funds, like any other, requires a thorough understanding of how various markets operate. Investors should understand that risk and reward go hand in hand and are a part of every investment.

            Contact Us [through the Query form in right hand side] to learn more about Mutual Funds.

          • Shyamkumar Rudrapati says:

            dont risk your hard earned money in the so called mutual funds. they r not worth..

            they will perform well till the time market is good. If at all we have a situation like the layman bros in 2008 people will go bank rupt.

            pls do think twice before going for mutual funds / SIPs as they go hand in hand with market.

            if you have adequetely insured yourself with term plans for risk cover and traditional plans for long term returns and still hv surplus then only advisable to go for SIPs and mutual funds…

            money is urs risk is urs beneficieary is urself, mine is just suggestion.

          • Dear Shyakumar,
            I believe you are a hardcore fan of LIC. No issues…
            You have not replied to my questions posted on another post (LIC Jeevan Lakshya)
            Are you aware how much money LIC invests in Direct equity (forget about Mutual Funds)?
            Do you know how much money LIC invests in Public Sector Banks / companies (who have high debts/non-performing assets).
            Once LIC gets listed in the market (stock exchange) then we can see some astonishing facts, as they have to disclose their investments. What say?

          • Narendra says:

            Mr. Shyam Kumar Rudrapati,

            Kindly stop misleading me. Seriously, just becuase of some Real LIC agent Idiots like you, we already suffered, Go and show your talent and skills somewhere else.

            Just becoz the large indian public not aware of the difference b/n the investment and insurance, your so called LIC mixed both of those and then confused & cheated INDIA for this long time. How dare you are?.

            If I hear you again saying the word LIC MATURITY BENEFITS from traditional policies, I will slap you with my sli****.

            B*****D, the sole purpose of LIC is to insure their policy holder adequately.THATS ALL, not to cheat them by showing LIC traditional policies as investment growth option.


            Sorry for those Unparliamentary language. I just can’t control myself because I am already the victim of this wrong LIC agents guidance and now again I see one more tym , So…


          • Dear Narendra,
            I can understand your situation & agony.
            Whenever i post my honest reviews about LIC new plans, I am observing that few LIC agents post meaningless comments, without justifying their generic statements.
            Everyone is free to post their views/ comments on my Blog. But, one needs to justify their views.
            Best example is ..look at the above comment..

            Mr Shyamkumar says, ‘dont invest in mutual funds’. But when i asked few queries, there is no response.

          • Narendra says:

            Yeah, Srikanth,

            I agree with you.


  • sam says:

    Can you suggest good LIC plans for KIDS(7 yrs Girl). I heard AIG and HDFC kid’s plans are good. Can you recommend plans with good returns or point to the link if you have already posted?.

  • Narendra says:

    Hi Srikanth,

    I am Narendra, from Bangalore. I work with the IT MNC company here. Aged 28 years.

    My Sincere Thanks for this portal service.

    My financial goals:

    1. Wealth accumulation at the Retirement age of 55.

    For this, from next month onwards, I have planned to start investing in Mutual fund SIP as 6000/month. One Large Cap & One Mid & Small cap MF SIP for the next 27 years. For large cap, my first choice is SBI Blue Chip Fund, becuase SBI being most trusted one for long term and it is ranked No.1 in crisil ratings for last quarter, But I would like to know your view on this. Or do you have better advice than this?

    For Mid & Small Cap, not sure which one to go for. Please suggest me the best one.

    Also, please let me know whether these two schemes enough? better? for long term wealth accumulation?
    How about Diversified equity fund?

    2. To purchase decent luxury 2 bhk apartment in bangalore, say after 5 years, with 35 to 40 lakhs max price

    No Idea. you have to suggest me the type of MF SIP I have to choose?

    Waiting for your reply.



    • Dear Narendra,
      Good to know that you have set your financial goals. Do you have dependents?

      1- You may consider investing in ICICI Pru Focused Bluechip fund, UTI Mid cap, Franklin Prima Plus and HDFC Balanced Fund for your retirement goal. Kindly note that, do not stay invested in equity MFs till goal target year. You may to move your accumulated funds slowly to deft / safe investment avenues (may be 3-5 years before reaching the goal year)
      2 – Are you planning to take a home loan?

      • Narendra says:

        Hi Srikanth,

        Thanks for the reply.

        1. Yes, I am married. my wife is dependent, my parent are not dependent since they get enough pension every month.

        2. Regarding purchasing apartment flat here in bangalore in localities like whitefield or sarjapur road, definetely i need 30 to 35 lakhs. i have started house purchase plan now only, so, it will take 3 to 5 years for me to actually save some amount for down payment and buy a 2 bhk apartment. and the rest I have to go for home loan only. I think to save more money for down payment(say max 40%) in 5 years so that after 5 years, when i purchase home, i dont have to take huge amount in home loan. Your ideas, please?

        • Narendra says:


          In addition to the above questions,

          How much should I depend on Crisil rating of fund companies, while choosing the funds?


          • Dear Narendra,

            Before creating an investment plan, let’s work on insurance requirements first.
            Do you have adequate life insurance coverage? What about your health insurance?

            Do not give too much importance to STAR ratings, as most of them track recent performances only. Look at funds with track record of > 10 years. Kindly read my artilce on “Top Equity funds” , you may get rough idea about the criteria to select good funds.

          • Narendra says:

            Hi Srikanth,

            Thanks for the reply.

            Yes, I have the adequate life insurance coverage from LIC from the last 4 years(2 policies namely Jeevan Anand & Money back policy).

            Regarding Health insurance, my employer provides me the health insurance coverage of 2 lakhs as of now, however after reading lot of info form the internet, i am convinced to go for one more health insurance policy on my own. I would like to request you to suggest me some good health insurance policies here.

            Also, do you deal with Property advice service too. Let me know how can I reach you, if posiible, in Person.



          • Dear Narendra,
            I believe that you do not have adequate life insurance coverage, because you have bought endowment/money-back policies. What is the total sum assured?
            Regarding property service – kindly reach me at sreekanth [at]

          • narendra says:


            The sum assured is 5 lakhs in each policy

          • Dear Narendra,
            I believe you are under insured.
            Suggest you to read my article – “Is term insurance a waste of your money?” & “Top 7 best online term plans in India.”

          • Narendra says:


            Seriously, your article on term insurance plan is an eye opener for me.

            God bless you for educating us when we are in need.

            I would like to fix this once for all. I would like to change my present lic policies to a single term insurance ploicy.

            I have jeevan anand(premium 34800 per year) and money back policy(24,600). So per year i m paying 59000 as premium for these two policies. this is for 16 years.

            Now,I have come to the conclusion that Jeevan Anand doesn’t suits to my financial future.

            I don’t want to cancel JA but i would like to change this policy to a best term insurance policy. i heard about alteration in lic. Srikanth, I want your advice. How can I do this?

            Also, what should I do about money back policy?

            Please guide me the best options available to me now.

            Thanks in advance.


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