I am currently investing in mutual funds, as per your suggestions to maintain 60:40 equity, debt ratio I went to bank to open a PPF account in ICICI.where the bank guys has suggested me to take wealth builder II and there is a complete Debt portfolio where the amount would be invested in government bonds, corporate bonds. Statistics show this gave a return of 9.45% . Could you please suggest whether I can opt for this!! For your information both investment and returns are tax free in the scheme. My time horizon is 10 years.
First thing they are misguiding by saying it is completely DEBT product. But in reality is is a typical ULIP product which comes with high charges. If their debt portfolio is giving you the 9.45% returns then go ahead at your own risk. Check the 9.45% return is from PURE DEBT or EQUITY product. Such products are hard to re-balance in future. Rest left with you.
Bankers now turn to be most hazardous species when it comes to investment.
thanks for your suggestions,
the banker has said that the 9.45% is the return over entire range of funds in wealth builder II, which ranges from equities to debt. I will crosscheck with them on the returns on debt portfolio.
by the way which debt product do you suggest over a 10-15 year horizon. at present I do not have a specified goal, but want to stay invested.
9.54% is the return over entire range fo funds is just VOGUE answer. What is the asset allocation? How the debt performed and where they invest and same way for equity is a MUST to understand. They claim many things which only applies in AIR.
PPF (if time horizon matches with maturity) otherwise short term or ultra short term debt funds are enough to manage your debt portfolio.