MF Rankings

These Mutual funds are rated as good performers in Outlook Money- April edition. I have taken the star ratings ,where they invest and the type of returns from valueresearchonline.com

• SBI Magnum Contra - invest more in energy - 5 star with high returns
• DSPML Equity - invest in energy,techonology - 5 star with above avg returns
• SBI Magnum equity - invest in technologyand technology - 4 star with above avg returns
• DSPML India TIGER Reg - invest in energy, financial services and metal - 5 star with high returns
• Sundaram BNP Paribas select focus - invest in technology, energy and financial services - 4 star with above avg returns
  Many more mutual funds are mentioned but these are my favourites.

Whats ULIP?

ULIP stands for Unit Linked Insurance Policies. A percentage of money you give as premium is invested in the equity market. So the returns could be more than the conventional insurance policies but has more risks. They merge insurance and market linked investments into a single product. It has a locked in period of 3 years. After 3 years you can chose to close the policy. You can get tax benefits by investing in ULIP.

Few questions arise for which I am not sure of the answer...
> If I already have an insurance policy why should I go for another ULIP? Won't I get better returns if I invest it in a mutual fund rather than in ULIP?
>I think ULIP takes more than 3 years to start showing good profit. Is it not better then to invest in a mutual fund?

I think if you are sure to continue the ULIP for its full term then you will be benefited otherwise it is better to invest in a mutual fund.

Save for a rainy day

Conservation of money is of huge importance to everybody. Deciding where to to invest is a huge confusion to most of us. Lets see various instruments where one can distribute his/her assets...

• Savings account (in the bank -3.5% interest rate)
• FD - Fixed deposits (Currently banks offer around 8.5% to 9% for a term deposit of one year) - absolutely risk free. Can save tax if FD term is for 4 years.
• Life insurance (there are Unit Linked Insurances Plans too - ULIP- this gives better returns than the conventional insurance policies but contains risk)
• PPF - Public Provident fund
• NSC - National savings certificate
• Infrastructure bonds
• Mutual Funds(Can save if invested in ELSS for 3 years)
• Invest in the Stock market.