Manish talking to Puneet:

Here is where I disagree to some extent , If you disagree that Tradional Insurance can beat Term + Balanced Funds in long run , then you are disagreeing the fact that Equity investments risk goes down in long run , Take two case

Case 1 : A buys Traditional Insurance
Case 2 : A buys Term Plan + balanced funds (not pure equity)

Do you think Case 1 can beat Case 2 ? Why ?

Tell me a case , when traditional insurance is better in terms of safety and returns MF + Term combo ? Do not tell me pure safety , if only safety is the concern , not taking any risk at all with your money is the biggest risk I can think of .

All over the India people like PV subramanyam , Monika Halan and other top notch financial planning enthusiast have said that traditional plans do not give even inflation adjusted postive return , if you are arguing that they do not make sense to you , you already defeat me because I trust them .
Subramanyam’s comments: Thanks these are nice things to hear!

‘Personally I am an equities person (I started investing at my age of 18) and have handled the family portfolio maybe even at 17. I am an incorrigible equity enthusiast. My stand costs my clients money. My clients are banks, life insurance companies, mutual funds and brokerage houses for whom I do training. 

Traditional plans unfortunately do not disclose how they are managed and my view on an employee – who is not responsible for the brand image – is a big issue. Most fund managers have a right to screw up and then move on. So whether it is a fund business or any other business an employee’s fluctuating loyalty will ensure that traditional plans (and ULIPs) will do badly over long periods of time. I am repeating this – we have 20 competent fund managers and more than 500 schemes running.

Traditional plans have so far been run (whose results are visible) by LIC only and it is evident from the results that the traditional plans have underperformed PPF, but till HDFC standard life came out with a term plan, LIC did not have a term plan. When I say ‘has not happened’, I mean ‘has not happened’. Some people can assume that ‘has not happened’ means ‘Will not happen’ – I am responsible to my clients. The readers of my blog should take anything available in the public domain with a pinch of salt including this post.

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  1. That LIC did not have a term plan till HDFC…..who told you Sir? The world did not know that LIC always had a term plan (premiums were high, but then returns from MFs were higher too!) till the private insurance company’s agents started hard-selling term insurance, highlighting the obvious benefits (just too many to list in a response)….the reasons for LIC agents to supress the facts are/were obvious…but Subra can you tell why the private life insurance companies never bothered to promote term plans (it was always the conscientious agent who did so) and even now will only make token noises (read advt & promos)about them? End of the day there is nothing to differentiate between an unethical LIC agent and the senior management of private insurers (ok, include LIC also :D)!

  2. Manish is making fool to people……his blog says financial planning blog……

    But, he knows BIG ZEROOOOOOOOO about financial planning.

    He works for yahoo. lagta hai ki Yahoo me kuch kaam nahi hai…..nahi to itane saare “faltu” comments karane ke liye time kidhar se miLata hai… he use commenting method to increase traffic on his blog.

    He is making his own financial planning through Google Ad sense.

    Now, we have to say “Jago Visitor……jago”

  3. @Amol

    Hey we must encourage Manish for the work he is doing man. He is posting many thing which many persons doesn’t know. Let him get some money from Google AD Sense, what is the wrong thing in it??? You or Me (or anybody) is not losing a single pie., but after reading his educational blogs many people were saved from making mistakes (or realized the mistakes they had done).

    P.S: I didn’t know any person who made a fortune with Google Ads except GOOGLE. It may get some reasonable money but its worth for the work some body is doing.

  4. no more hate / love Manish comments. So far have received only 2. All of us are trying to say something, do something, sell something. It is for the reader to decide what to do.

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