Papa has a suitcase full of LIC bonds, I wanted to dig around returns so went LIC office yesterday to get the surrender value quotes. 📈

Read this Mini Thread 🧵 before your family LIC uncle tries to sell you the next policy!

‘Don’t mis insurance with an Investment.’
So LIC Agents earn the commission for the policies they sale. LIC offers 25% to 35% commission on the policy premium for the first year, then 7.5% for 2nd & 3rd Year + 5% till the policy maturity.
Now, I wouldn’t call this a SCAM but for sure it’s the biggest MLM (Multi-Level Marketing) scheme ever, well marketed/sponsored by authorities.

You can sell anything in India if you can play around emotion and trust, LIC has built a robust network of branch, distributors/agents.
So is adopting the personalised sales approach, you’re more convinced to trust your relatives vs a Bank RM.

Just check the global and Indian market share of LIC.
Talking about returns on your investment, if the agents are promised to receive 5% every year till you pay premiums so I believe you can do the maths yourself.
I will make it more easy for you, visit the nearest LIC branch with your policies and ask for surrender value. You can also request the same over email.

Now, Compare the returns with FD, Gold and Mutual Funds and instruments you feel comfortable investing.
The average CAGR of policies that my father holds ranges from 4-6% which doesn’t even beat PPF returns.

Well they say - ‘Zindagi ke Sath bhi, Zindagi ke Bad Bhi.’

Guaranteed poor returns seem missing in the line. ❌
So how does LIC makes money?

(Important)

They trap you with poor insurance plans while they themselves invest in equities.

Well LIC booked a whopping record ₹37,000 crore profit from share sales in 2020-21, the highest in its 65-year history!

livemint.com/companies/news…
Insurance is not an investment so don’t mix them, I never ever recommend investing in LIC policies to anyone. If insurance/risk-cover is the question in the subject just get a decent Term Insurance Cover.
If retirement planning is your goal, go with ELSS, PPF, EPF and other compounding instruments but just don’t let a family uncle make a sweet commission on your hard-earned money.
Thanks for reading!

Be informed about your investment decisions, if you liked reading this thread please consider RT so it reaches more people. 🙏

Happy Investing.💰
Ignore the grammatical errors please, wrote this from mobile keyboard so autocorrect is the intern who made mistakes. 😛

CC - @venkyHQ @pooniawalla @dipikajaikishan @SejalSud
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More from @Ravisutanjani

10 Jul
It’s absolutely fine to learn from people who are younger than you, experience does play a significant role but it’s not a bar anymore.

I keep writing on personal finance, credit cards, my startup exp, etc and surprisingly I got some bad wishes and hate today. Here’s a note.⬇️
Some day to day commentary I come across:

I'm older so I probably know better.

How you can earn 3-4x of me?

How you can be a good leader with just 4-5 years of work ex, I’ve 15 so....

You shouldn’t talk about Personal Finance without spending 10 yr in the market... etc etc.
Just a bit of an Introduction. I started earning from part-time gigs when I was just 16-17. Proudly funded my 10+2 education and coaching fee, took admission in engineering, got my first credit card, made mutual fund investments, did solo traveling to almost 15 states in India.
Read 10 tweets
10 Jul
Credit Score tells a lot about one’s discipline with finance and credit management.

Unlike the US, we’ve only a few firms checking CIBIL scores for employment. I highly believe it should be part of the recruitment and background check function.

Any startups doing this practice?
Okay so this is blowing, Thanks to trollers.

First of all Credit Card and Credit Score is not at all related to any privileges or elite class.

If you believe it is, stop reading this thread right here!
Now anyone can get credit cards regardless of your credit score, profession, and salary amount.

Just make a fixed deposit of a minimum of ₹10/20k and you will be assigned a 90% credit limit of your FD amount.

SBI, HDFC Bank, Axis, ICICI, BoB, all leading issuers support this.
Read 10 tweets
4 Jul
Neobank(s) - Old wine in a new bottle? 🏦🍷

• FI Money
• Jupiter
• NiyoX.

We've 3 Neo-banks in India, They’re basically Fintech companies promising to provide 100% cutting edge digital banking services.

But are they really good? What’s new?

Sunday Special Thread 🧵⬇️
Let’s check the basics first,

Almost similar benefits. Same zero balance account with free debit card etc. I will be pretty straightforward with my review so get your popcorn handy. 🍿💰
First of all the concept of waiting list these Fintech(s) are using is a marketing gimmick to create hype, some introductory offers, and BS. Same as a Flash sale on an e-commerce website for newly launched electronics.

If your product is so good, just open it for everyone. 👎
Read 16 tweets
2 Jul
I don’t know who need to hear this,

But if you pay direct taxes please learn to seek explanations from the government.

Ask where your money is being spent, how they’re progressing in terms of developments?
I’m one from millions of honest taxpayers who pays IT, GST, LTCG/STCG etc and my yearly contribution is equivalent to around 50-60g of Gold in today’s price.

Sense proud to contribute my bit but at the same time feel miserable when I see we don’t even have basic infra right.
We still lack good healthcare, quality and affordable education, sanitisation and employment etc.

Not even talking about broader cause like equality, sustainability, corruption, pollution etc.
Read 4 tweets
2 Jul
Which Mutual Fund Apps are best for Investing? 📈💰

This is the most common question I hear so here’s an explanatory thread. 🧵⬇️

#FridayInvesting #PersonalFinance
We have around 44 AMCs (Asset Management Company who manages your fund) that offer more than 2500 mutual fund schemes.

Yes India is one of the fastest-growing markets for Equities Investments. 📈
And there you have dozens of third-party apps extending Mutual Fund related offerings,

• Zerodha Coin
• Groww
• Kuvera
• INDMoney
• Paytm Money
• ET Money and more

And two RTA’s apps:
• CAMS
• KFinKart (Karvy)
Read 17 tweets
29 Jun
All about Credit Cards 💳⬇️

A Thread that will help you understand how it works? How to use them effectively so that you can beat 90% of people who fall into the debt trap?

Long 🧵 (Part-1)

#CreditCards #PersonalFinance #Startup #Money #CreditScore #Banking
Statistics say there are around 60Mn credit cards users in India 🇮🇳 and we are an underpenetrated market as compared to western countries. Millions of new Credit Cards get issued by leading Indian banks every year but the concern is do they promote any formal education about it?
Credit Cards are one of the most profitable businesses for banks, just check the annual reports of HDFC and SBI Cards.

v1.hdfcbank.com/assets/pdf/inv…

sbicard.com/en/who-we-are/…

Read 19 tweets

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