Insurance for 6 month old baby

June 15, 2009 5:38am CST
One Mr.Sanjay Lala asked : Sir, I have a 6 month old baby. I want to invest in such an insurance plan whereby after 15 to 20 years hence, he will get a good amount for his future career. Can you please suggest any plans?"" Srikanth shankar Matrubai replied : Dear Sanjay Lala, I have always maintained and advised that Insurance and Investments should be never mixed and kept separate. Insurance have very high cost, little transparency and strict withdrawal conditions. A diversified Mutual Fund is a much better option due to its low cost, high transparency and moreover, give you much MORE returns compared to Insurance. To begin with, first you cover your life with Adequate Term Insurance Cover. Later, invest in 4-5 Good diversified Mutual Funds with a Long Term View. About 2-3 years before you need the money, slowly start switch all your Equity Funds to Debt Funds to avoid volatility and protect capital. Also, for your information, most Mutual Funds, these days offer FREE LIFE INSURANCE COVER. You can avail of these benefits too. Some of the Mutual Funds which do offer FREE LIFE INSURANCE COVER are : Birla Mutual Fund through its Birla Century Sip Deutsche Mutual Fund through DWS Tax Saving Fund Kotak Mutual Fund through its Kotak Star Kid Reliance Mutual Fund through its Reliance SIP Insure. Best of luck, Srikanth
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