LIC vs MF

[NitishKumar]

Hi Team,

Initially though of below LIC jeevan utsav plan to gift 50k/Annum for my daughter ,

--Invest 40k per annum till 13 years
--wait 14th and 15th year and from 16th year my daughter will receive 50k (yearly once) on her birthday till life long.

Now thinking of another option,
--Invest same 3333 (40000/12) Rs per month SIP (mostly only one fund) in Mutual Funds till 13 years. Later setup SWP for her.

1) Now which one is best, either large or mid or small or flexi cap ? (also mention the fund name as well).
2) Can i start SIP on my daughter's name, she is 3.5 years old.
3) If NO, i will start SIP on my name and is there any option after 13 years i setup/transfer SWP on my daughter's name. so that amount will be credited to her account.
4) Is there any option in SWP to receive amount yearly once but not monthly?

Kindly reply to these 4 points.

Thanks in advance.

 

[ShavirB]

Please understand that LIC won't give you a pure investment scheme, it'll have an Insurance component. Because of this Insurance component the returns from Investment won't be that great.

I'd recommend you to watch this video to understand the investment options you have for your daughter

 

[NitishKumar]

Hi @ShavirB

Thank you for the video suggestion.

Already had SSY and SGB, now planning for MF.

1) Now which one is best, either large or mid or small or flexi cap for 3333 Rs SIP for around 12-13 years? (also mention the fund name as well).
2) Is there any option in SWP to receive amount yearly once but not monthly?

 

[ShavirB]

Selection of Mutual Funds will completely depend on your risk appetite. Given you have a fairly long time frame, if you can afford to take some risk - you could think of either a momentum fund (Nifty 200 Momentum 30) or a Mid/ Small Cap. To understand decent funds in different categories you can check out this video

Not sure if SWPs allow the flexibility to choose yearly payout (instead of monthly).

 

[MAJIDUR58]

Now LIC is used less, you can choose ETF Or MF. Large cap low return low risk, mid cap modate return modarate risk, small cap high return high risk

 

[zacobite]

Hi Team,

Initially though of below LIC jeevan utsav plan to gift 50k/Annum for my daughter ,

--Invest 40k per annum till 13 years
--wait 14th and 15th year and from 16th year my daughter will receive 50k (yearly once) on her birthday till life long.

Now thinking of another option,
--Invest same 3333 (40000/12) Rs per month SIP (mostly only one fund) in Mutual Funds till 13 years. Later setup SWP for her.

1) Now which one is best, either large or mid or small or flexi cap ? (also mention the fund name as well). - Navi Nifty 50 Fund
2) Can i start SIP on my daughter's name, she is 3.5 years old. - Yes, you will be primary
3) If NO, i will start SIP on my name and is there any option after 13 years i setup/transfer SWP on my daughter's name. so that amount will be credited to her account. - no.. You cannot transfer to different person.. you can withdraw and then put in hers
4) Is there any option in SWP to receive amount yearly once but not monthly? Yes
SSY is better than LIC if u want govt guarantee

Kindly reply to these 4 points.

Thanks in advance.

 

[The INSANE Trader]

Hi Team,

Initially though of below LIC jeevan utsav plan to gift 50k/Annum for my daughter ,

--Invest 40k per annum till 13 years
--wait 14th and 15th year and from 16th year my daughter will receive 50k (yearly once) on her birthday till life long.

Now thinking of another option,
--Invest same 3333 (40000/12) Rs per month SIP (mostly only one fund) in Mutual Funds till 13 years. Later setup SWP for her.

1) Now which one is best, either large or mid or small or flexi cap ? (also mention the fund name as well).
2) Can i start SIP on my daughter's name, she is 3.5 years old.
3) If NO, i will start SIP on my name and is there any option after 13 years i setup/transfer SWP on my daughter's name. so that amount will be credited to her account.
4) Is there any option in SWP to receive amount yearly once but not monthly?

Kindly reply to these 4 points.

Thanks in advance.

1. It's better give a try to flexi cap funds because in that your investment will diversify to Large, Small and midcap. Funds Name- Parag Parikh Flexi Cap Fund Direct-Growth, Quant Flexi Cap Fund Direct-Growth, Edelweiss Flexi Cap Fund Direct-Growth.
2. Yes, you can start a SIP in your daughter's name. You'll likely need to open a mutual fund account in your daughter's name, and you may need to provide some documentation, such as her birth certificate, for the process.
3. You can start SIP in your daughter's name. Nothing to worry.
4. Yes, in a SWP, you have the flexibility to choose the frequency of withdrawals according to your needs.

According to me MF investment will be better for your Angel's future than LIC.

 

[NitishKumar]

@ShavirB , @zacobite and @The INSANE Trader first of all thank you for your inputs.

Finally decided to go with small cap funds , found below funds.
Not sure which one to choose.
Kindly suggest 2 small cap funds (1 for each kid) from below list or some other good funds.
SIP : 3333 Rs
Time horizon : 12 years
Risk : High
Target : achieve 20-25 % return at the end

 

[The INSANE Trader]

@ShavirB , @zacobite and @The INSANE Trader first of all thank you for your inputs.

Finally decided to go with small cap funds , found below funds.
Not sure which one to choose.
Kindly suggest 2 small cap funds (1 for each kid) from below list or some other good funds.
SIP : 3333 Rs
Time horizon : 12 years
Risk : High
Target : achieve 20-25 % return at the end





View attachment 718

@ShavirB , @zacobite and @The INSANE Trader first of all thank you for your inputs.

Finally decided to go with small cap funds , found below funds.
Not sure which one to choose.
Kindly suggest 2 small cap funds (1 for each kid) from below list or some other good funds.
SIP : 3333 Rs
Time horizon : 12 years
Risk : High
Target : achieve 20-25 % return at the end





View attachment 718

@ShavirB , @zacobite and @The INSANE Trader first of all thank you for your inputs.

Finally decided to go with small cap funds , found below funds.
Not sure which one to choose.
Kindly suggest 2 small cap funds (1 for each kid) from below list or some other good funds.
SIP : 3333 Rs
Time horizon : 12 years
Risk : High
Target : achieve 20-25 % return at the end





View attachment 718

I invest in Quant small cap fund the performance till date is awesome but, the thing of concern is the NAV is quite high in comparison to other funds but I must say if you are concern of quality then you can prefer Quant Small Cap Fund but 1 risk in this fund it will correct a lot during crash cause you are investing in small cap and in this category you will not going to get any comfort cushion during crash you will experience a roller coaster ride and if you want Quantity prefer Edelweiss Small Cap Fund #DYOR. And one more thing don't invest In one category for example for 1 kid invest in small cap fund and for another prefer flexi cap fund the return of both funds will be nearly same.

 

[NitishKumar]

@ShavirB , @zacobite and @The INSANE Trader first of all thank you for your inputs.

Finally decided to go with small cap funds , found below funds.
Not sure which one to choose.
Kindly suggest 2 small cap funds (1 for each kid) from below list or some other good funds.
SIP : 3333 Rs
Time horizon : 12 years
Risk : High
Target : achieve 20-25 % return at the end

@The INSANE Trader Thank you, any suggestion for flex cap ?


@ShavirB , @zacobite and others request you to share your suggestions.

 

[The INSANE Trader]

@The INSANE Trader Thank you, any suggestion for flex cap ?


@ShavirB , @zacobite and others request you to share your suggestions.

Flexi Cap and Multi cap is same. So here are some funds mentioned below.

1. Nippon India Multi cap Fund:- Expense Ratio:- 0.82% /// Return P.A:- 35%
2. ICICI Prudential Multi Cap Fund:- Expense Ratio:- 0.88% /// Return P.A:- 29%
3. Kotak Multi Cap Fund:- Expense Ratio:- 0.38% /// Return P.A:- NA
4. Quant Active Fund:- Expense Ratio:- 0.62% /// Return P.A:- 31%