What do you think is the best investment.

United Arab Emirates
July 20, 2010 12:36pm CST
What do you prefer investing in mutual funds or insurance. In insurance the returns are guaranteed. but mutal funds involves risk.
2 people like this
8 responses
@savypat (20246)
• United States
20 Jul 10
Well you know the risk is directly related to the earnings. So if you can afford the risk why not go for the higher earnings. If you can't afford to loose stay with the low risk.
• Philippines
21 Jul 10
Yes. Risk only the money you can afford to lose. But although mutual fund is riskier than insurance, it is not actually like that. If you do your research first before investing, and you invest in a good, solid, mutual fund company, the risk will be lower and the returns will be higher. If only we can find funds today that are excellently managed like the way Peter Lynch managed his fund during those old days..
• India
9 Sep 10
Dear Edward, You may be shocked to know, that not all Insurance products have return guarantee. And the returns, are pathetic, to say the least. Mutual Funds do have their own place in every portfolio. they may carry risk, but over time the volatility and risk get evened out and you will making great money. Mutual Funds are the best return generator and is the best proxy play on equities.
@Suminundu (193)
• Malaysia
26 Jul 10
If I had enough money I would invest in both. Insurance has magic. If I die before its maturity, my beneficiaries would get the lum sum. We can invest in Mutual fund money that we can afford to lose.
@darylT (85)
• Philippines
23 Jul 10
when you take out insurance for yourself, there's supposed to be a fixed return on the maturity date. unlike with mutual funds, you won't know if you've made money until you redeem it. i've tried both, i've lost money in insurance because i placed it in a company that isn't stable. the company went bankrupt. i got mutual funds from a bank. i redemmed it after 2 years and the amount that i got was just a little over a savings deposit account. so, i guess, it's important to get insurance from a reliable company. as for the mutual funds, timing is also crucial. i bought my mutual funds during its high price. its price went down after i bought it. i had to wait until its price went up before redemption.
• Belgium
21 Jul 10
for me insurance is a real investment coz the company is taking care of you and after ending the insurance period you get what you deserve.it's up to you how much do you want to invest !!
@yspmyl (3438)
• Malaysia
20 Jul 10
I would prefer mutual funds instead of insurance, with mutual funds, if you keep investing, you will get a return like 20% to 40% as what I know. But it will take a long time and with less investment risk. The fastest will be invest in stock market but this one will be at high risk where you can earn fast and also fall fast. So do be wise to choose which one to invest. Hints: To invest in both, you need to have extra money in hand. I mean extra money is the money that you do not need it in a 6 months period.
@Mitraa (3188)
• India
20 Jul 10
In this present time, Insurance can also be taken as a good field of investment. Along with investment, one has the life risk coverage also there in Insurance policies! I always prefer Insurance to any other source of investment! Thanks for this nice topic Joy!!
@ram_cv (16516)
• India
20 Jul 10
I do not consider Insurance to be an investment. Insurance is as the name suggests insurance if anything goes wrong with you. Insurance agencies have been clever in attaching the word investment with it and give abysmally low rate of returns for charging the premium over the insurance money. I feel that mutual funds are definitely better, but they have risks involved. There are also some more safer funds like bonds which each country issues for various things. In India we have infrastructural bonds which give more rate of return than insurance schemes and are equally safe!! Cheers! Ram