Pankaj Ladha - A Mutual Fund Distributor

ULIP V/S MUTUAL FUND  I believed that discussion between ULIP Vs  Mutual Fund  was settled long back but I was wrong. In all of my sessions we have clearly mentioned and explained to keep investment and insurance separate. But to my surprise, a few days back one of my regular investor asked me– Which is better ULIP or  SIP ?  This confusion came because his banker told him that Ulip vs Mutual Fund + Term Insurance is a gimmick by mutual fund industry. Now if someone  depends on his banker for financial advice  how anyone can help. We always suggest  don’t mix investment and insurance  but let’s still check ULIP vs Mutual Fund comparison. What is Unit Linked Insurance Plan? Unit Linked Insurance Plans also known as ULIPs are insurance products that combine investment and protection against  risk . A ULIP holder pays a periodic premium. Part of the premium is for life insurance and part of it is invested just like in a mutual fund scheme. This continues for many years.

Five key Rules in the world of Investing 1.     Start investing today – Investing is a choice that you must make at the right time and history has shown that the time is always right. Especially for growing economies like India, long term value investing is a great tool for wealth creation. It is a disciplined approach of wealth creation that builds foundation for your future.  Example- At age of 25, if you start investing 5000 per month and money grows at 12% per year, then at age of 60 you have 2.70 crores. Just a delay by 1 year (or 60000 less), will make your savings to be 2.40 crores at the age of 60 years. That is you have 30 lakhs less, just because of 1 year delay. This is because of power of compounding. 2.      Nurture the habit of investing - If you had invested 1 lac in sensex in 1984, it would have become 1 crore in 30 years, i.e 100X multiplication. In equity market, compounded interests are boosters in your long term wealth creation process. Just like we s

BENEFITS OF CHOSSING ELSS        Tax Benefit - One of the primary reasons to invest in ELSS is to save tax.   Investments in     ELSS qualify for tax deduction under section 80C of the income tax   act of 1961. Also any dividend or long term capital gain earned by the investor is   exempted from income tax. Simply, your returns from ELSS become tax free. You can   invest into ELSS and deduct upto Rs. 1,50,000/- from your taxable income to   effectively reduce your tax liability. 2.       Lock in period – It has dual benefits. Firstly the lock in period of ELSS is shortest as compared to other 80 C deduction options. Secondly, Pertaining to the performance of the mutual funds, good mutual fund portfolios are constructed for long term investments, however, they are not bound with the lock in periods. But in case of ELSS, the funds are locked in for at least 3 years. Which means, in ELSS fund you are obligated to stay invested for 3 years or more to exempt from taxes ap

Emotions in mutual funds Emotions plays an important role in every facet of our life. It also does in our investment decision. What we have seen is that entry in mutual fund or equity for that matter is very easy. The day you decide to buy a fund, you take entry. But the more important question is when you exit the fund or how to decide when to exit the fund? Human is a greedy creature. That is very basic characteristics of all of us. When market is rising we seem to buy more equity, more our existing portfolio is doing good.  And when market is not doing good, we focus on selling everything. One of the perfect example for this is what actually happened with me. One of the investor came to me in 2016 starting. At that time I forcefully asked him to allocate atleast 50% to equity. But he insisted to allocate maximum 20% to equity. I persuaded him and just because we were connected from like last 10 years he agreed to me. It took me 1 hour to convince him for the same. He h