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Should I invest in Urja?

Samraat

Samraat Jadhav  |2220 Answers  |Ask -

Stock Market Expert - Answered on Sep 18, 2024

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more
Asked by Anonymous - Sep 16, 2024Hindi
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Is it worth investing in Urja?

Ans: NO
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |8077 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 23, 2024

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How good it is to invest in ULIP?
Ans: Understanding ULIPs: A Critical Analysis

ULIPs, or Unit Linked Insurance Plans, have garnered attention as investment-cum-insurance products. Let's delve into the intricacies of ULIPs and evaluate their suitability as an investment avenue.

Assessment of ULIPs

ULIPs offer a blend of investment and insurance, presenting themselves as a convenient one-stop solution. However, it's imperative to dissect their features and weigh their pros and cons before making an informed decision.

Analyzing the Disadvantages of ULIPs

Despite their apparent appeal, ULIPs come with significant drawbacks that warrant careful consideration:

High Charges: ULIPs typically entail various charges, including premium allocation charges, policy administration charges, mortality charges, and fund management charges. These charges can significantly erode your investment returns over time.

Lack of Transparency: ULIPs often lack transparency regarding the allocation of premiums and associated charges, making it challenging for investors to gauge the true cost and performance of their investment.

Complexity: The structure of ULIPs can be intricate, with multiple components such as insurance coverage, investment funds, and associated charges. This complexity may hinder investors from fully understanding the product and its implications.

Limited Flexibility: ULIPs impose restrictions on switching between funds and altering premium payment terms, limiting investors' ability to adapt to changing market conditions or financial goals.

Market-Linked Risks: While ULIPs offer the potential for market-linked returns through investment in equity and debt funds, they also expose investors to market risks. Volatility in the market can adversely affect the performance of ULIPs, impacting the value of your investment.

Comparative Analysis: ULIPs vs. Mutual Funds

When juxtaposed with Mutual Funds (MFs), ULIPs pale in comparison due to several inherent disadvantages:

Cost Efficiency: Mutual Funds typically have lower charges compared to ULIPs, translating to higher returns for investors. With ULIPs, a significant portion of your investment may be absorbed by various charges, diminishing your overall returns.

Transparency: Mutual Funds offer greater transparency regarding costs, fund performance, and portfolio composition, enabling investors to make informed decisions. In contrast, ULIPs often lack transparency, leaving investors in the dark about the true cost and performance of their investment.

Flexibility: Mutual Funds provide investors with greater flexibility in terms of investment choices, asset allocation, and redemption options. Investors can switch between funds, adjust investment amounts, and redeem units as per their financial needs. ULIPs, on the other hand, impose restrictions and penalties on such actions, limiting investors' flexibility.

Expert Fund Management: Mutual Funds are managed by professional fund managers who possess expertise in financial markets and investment strategies. These managers strive to optimize returns while managing risks effectively. In contrast, ULIPs may lack the same level of expertise in fund management, potentially impacting investment performance.

Tax Efficiency: Mutual Funds offer tax benefits such as indexation benefit for debt funds and tax exemptions for certain equity funds. ULIPs also provide tax benefits under Section 80C of the Income Tax Act, but the overall tax efficiency may vary depending on the structure and performance of the ULIP.

Warning: The ULIP Trap

It's crucial to recognize ULIPs for what they are: a potential trap for unwary investors. The seemingly attractive blend of investment and insurance may camouflage exorbitant charges and complex structures, ultimately undermining the financial goals of investors.

Recommendation:

As a Certified Financial Planner, my recommendation would be to steer clear of ULIPs and opt for more transparent, cost-effective, and flexible investment avenues such as Mutual Funds. By choosing Mutual Funds, you can benefit from expert fund management, lower costs, and greater control over your investment portfolio.

Conclusion:

In conclusion, while ULIPs may appear enticing on the surface, a deeper examination reveals significant drawbacks that outweigh their perceived benefits. As you navigate the investment landscape, prioritize transparency, cost efficiency, and flexibility to achieve your financial objectives effectively.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

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Archana

Archana Deshpande  |103 Answers  |Ask -

Image Coach, Soft Skills Trainer - Answered on Mar 04, 2025

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Hi Mam, Hope you are doing well. I am very worried about my son who is now 12.5 years old and studying in 7th standard in a very reputed school. Since childhood, he has no interest in studies, unless we doesn't seat in front of him, he doesn't study. Every teacher from his kindergarten days upto now has the same complaint that he is doesn't pay attention in class and the result is he doesn't get good marks in the exam. When we scold him for studies, he does it for that particular time only and then get back to his non-interest mode again and start to run from studies. He will play video games, goes to play around with his friends, he will find some or the other reason for not doing studies or homework. The irony is that he is not interested in any sports or any other kind of activities. In every summer holidays, we make him to join some sports or music classes, but there also he doesn't show interest and do things just for the sake of showing. From last year, we have started sending him to tuitions also, but no change in attitude. This year we have found a teacher of his reputed school who is retired and taking tuitions, we are sending him to her and she is charging a big amount for tuitions. please guide how can we change his attitude and make him more serious in any activity he does as he doesn't have interest in anything (we have observed doing everything we can).
Ans: Hello Sunil!!

I am doing great, thank you for asking, God bless you!

I can totally understand when you say you are worried.

Your son is 12.5, he will soon be a teenager. There will be different challenges, I want you to read up on parenting a teenager and be ready to handle him well.

The problem as I see it is that everyone of you, his teachers included have made studies like a burden for him.... and subjected the young child to a lot of anxiety, he just wants to run away form it....
"Every teacher from his kindergarten days upto now has the same complaint that he is doesn't pay attention in class".... this statement of yours... it is the teacher's duty to ensure the child listens to him/her, how can she start labeling a child like this. From a young age your son has been conditioned to believe that he is not not good in studies, he doesn't focus and he doesn't sit in one place. All my sympathies are with your son...every child comes with immense potential and it's our duty as parents and teachers to nurture the child.

The following is what I propose so that we bring him back to loving to learn ( not score marks, that should never be the barometer)-
1. Love your child the way he is now
2. Give him lot of positive strokes
3. Have one on one sessions for any activity you plan for him... let him choose the activity, empower him
4. choose a teacher, who can get along with him and help him develop a positive attitude towards studies and life in general
5. look for a school where they nurture him... not just a reputed one...less number of students and a teacher who is invested in her/ his students,

If you can connect with me, I can help him. Have had many a students in this kind situation.
This is my website..
https://transformme.co.in/

Loads of best wishes to the whole family..

...Read more

Archana

Archana Deshpande  |103 Answers  |Ask -

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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