Year end Investments, Insurance or Mutual Funds?

This is the time that Insurance Agents and Mutual Fund salesman love the most. Instead of the usual pestering phone calls from the call center agents of Banks and Insurance companies, Hawking for Mutaul funds or Insurance, It is the investor who frantically calls up friends to ask for the friendly advisor's number who gave him a discount (** Rebate or discount by Insurance agents on the Premium paid is Illegal). The companies Bulletin baord is full of messages asking for contact details of Insurance agents.

It must be a heyday for the Agents and Insurance companies. Insurance Policies are usually hardsold..

I suggest that You should not buy Insurance for the purpose of savings, and tax savings. You stand the chance of getting wrong-sold, or buying the wrong policy just to save on Taxes. If you want to buy Insurance, do a proper research, and buy for protection of your Family. The tax Incentives are given for just that, Incentives. Incentives for you to buy Insurance. What policies to buy blah blah..... Just buy WHole Life Policies or Term Policies. Fist get adequate cover, and think about the other frills of Insurance.

For Investment purpose, we just happen to be in very lucky Times. We don't have to anymore allocate 10000 on pension plan, 10000 on Infrastraucture bonds, another 20 on National Savings Certificate blah blah Blah.. You can put the whole 1 lakh on any savings instruments Like Tax savings Mutual Funds also called Equity Linked Savings Scheme, Insurance premia, Bonds etc...

If you are running amok for last minute Investment, chances are that, you are a young professional, who forgot to save... I invested in Mutual Funds. There are a hosts of Mutual Funds to choose from, and I chose three Mutual Funds where I invested. These Mutual funds had good allocations into Certain Mid Cap Stocks, and since I am investing for at least 3 years, some of the mid caps could reap huge dividends.. I have chosen SBI Mutual Fund's Magnum Tax Gain, Icici Prudential Tax Plan-growth, and HDFC longnterm advantage fund.

Icici Prudential Tax plan hasn't grown yet, but the other two have started to grow exceptionally wel even in a short time..

If at all you are buying Insurance, SBI life sells very cheap Term cover. Get yourself a 50 lakh term cover. You will sleep in peace.Max New York life has a very good whole Life Plans.. You can try them too.