My mother (52 year old) is interested in investing 50k per anum for 5 years in icici pru retirement plan (she got this advice from an agent ) and then reap the benefit after 10 years . I want your opinion on this investment.
is there any better plan available than this which gives average return with security as well (considering her age) ?
If we invest in this plan which type we should chose secure OR balanced ?
This is the typical ULIP plan sold in the name of RETIREMENT. Stay away from any product which is sold you in the name of Retirement, Pension or Child Plans. They are most dangerous when it comes to liquidity and expenses.
Instead, use alternatives based on your requirement. Such products are a lucrative business for advisers.
Thanks a lot for the advice and quick response.
It would be great if you can tell something more about alternative options.
It depends on your requirement. With limited piece of information, it is hard for me to guide anything blindly.
Keeping the investement period for 5 years and 50 thousand per anum (current age 52 years). The goal is invest this money as one part of her retirement. (She has other investment as well)
I am planning to invest 40% in a largecap fund and 60% in a short term debt fund using SIP.
However as maturity time (10 years) comes near i will reduce the equity portion to 0-5% for safety.
Now the generated corpus she can use it as one go if required OR can do a SWP.
Does this plan sounds better to you ?
If your goal is just 5 years away from today, then better to stay away from equity.