Anushka Rathod Instagram – Don’t make wrong choices!!
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This is Day 5 of 10 Smart Tips for your Mehnat ki Kamai,
Follow along as next reel will be on how much money do you need to retire!
Here’s why you should avoid them-
1.Endowment plans & ULIPS –
a. These plans combine Investment and insurance. While suitable in some cases, they usually offer inadequate insurance, lower returns and come in long lock in periods.
b. Plus, these plans have various charges, like premium allocation, policy administration, fund management, mortality, and surrender charges, which reduce your returns
2.Digital gold –
a. There is no regulatory authority for digital gold platforms to secure the interest of consumers plus, they also have charges like storage fees and 3% GST which reduce the returns.
b. Also, when buying gold, buyers often pay a higher price than what sellers get. This price difference is called the ‘bid-ask spread,’ usually 2-3% for digital gold.
3.Child Insurance plans –
a.They operate similar to either ULIPs or Endowment Plan.
b.The difference is, in child plans if the parent dies, future premiums are waived, and the insurer keeps investing. The maturity benefits are paid as planned.
c.However, both types often provide low coverage and returns, making them less effective as insurance or investment. So, it’s better to take a separate term insurance for yourself and invest for your child education separately.
4.Risky Stocks and trading
a.Unless and until you are a trader or you have professional guidance, it is better to stick to long-term investing in equity mutual funds and good quality stocks.
Disclaimer: This video is for education purpose only and should not be a replacement for professional investment advice.
[Anushka Rathod, finance, investment, mistakes, mutual funds]
#anushkarathod #finance #investment #mistakes #mutualfunds | Posted on 17/Jun/2024 17:07:00
