Many people ask me why I suggest New India for medical insurance, but never suggest LIC for life insurance. The answers are simple. Medical insurance is a simple product and the probability of getting a good interpretation of the policy is quite high with New India. In fact if you have not lied in the policy application, and paid your premium on time, the chances of a genuine claim getting passed is very high with New India. My personal experience with Cholamandalam in medical insurance was not very good – they tried a million excuses to drop my mother from the plan after she crossed 67 years of age. So it was back to just New India for all of us.
However if my money has to be invested I prefer good mutual funds like Templeton, Icici, Dsp or Hdfc. Look at the recent Ntpc FPO. Personally I do not like to invest in psu shares – the only 3 exceptions were companies which had built up scale. These companies were Ntpc, Ongc, and SBI. However a Goldman Sachs report says how the government took away $ 20 billion to subsidise the downstream units. Similarly when Narasimha Rao’s son cheated SBI – by an amount of Rs. 130 crores, the matter was hushed up.
Now the NTPC FPO. Personally the shares were attractively priced. However the market did not think so, and rejected it. Companies, merchant bankers, investors, speculators, traders, all have to respect the market. Pranab Mukherjee need not respect the market. LIC and SBI were forced to buy the shares. In the longer run LIC and SBI may make money, but now neither did SBI ask its shareholders nor did LIC ask its policyholders! So once again the shareholders of SBI have funded Mr. Pranab Mukherjee’s deficit.
So if you are worried about ‘directed’ investments, stay away from PSU shares and PSU ‘money managers’. Like it or lump it LIC, SBI, NTPC, BSNL, WILL all be governed by managers who bow to the ‘babu’ and do what he / she says is. Look at the BSNL employee union. They are asking for a good top management that will not bow to the babu and the ministers, the government is not too pleased with this request. Subir Raha stood up to the babus when he ran ONGC….but such stories are rare. So if you want to buy a term plan go to google..and you will find Religare ageon plan on the net. For managing money there is always I Pru Discovery, Franklin India Blue chip, Hdfc top 200, Hdfc prudence…
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