Sir, My mom invested Rs.4,00,000 in SBI Magnum Balanced fund from which Rs. 1,00,000 each year will be transferred to SBI Life premium for the next 4 years and Rs. 4,00,000 in SBI corporate bond fund for 4 years in September 2016. She dont know much about the funds but she invested because her financial advisor advised to invest in those funds as those are best for her. Now,it is becoming tough for her to understand and she wants to redeem the funds. So sir i want to ask you what should we do now? Should we redeem the funds or continue till its time period?
What was the purpose of investment? Now what your FINANCIAL ADVISER saying?
The purpose was that she had retired and had no short time expenses at that time so she was going to open FD in SBI but her advisor advised her to invest in Mutual fund as the interest was much low in FD as compared to those funds. So she invested for 4 years in corporate bond fund and 4 years in magnum balanced fund from which 1 lac per year will be transferred to Sbi wealth builder as premium.Now advisor is saying to continue but my mom is confused a bit on that.It will be a great relief for us if you suggest us what is best for us.
He PURELY trapped your mother. Equity investment without any time horizon is the BIGGEST RISK. Second thing, who made him as an adviser don’t know. Invest lump sum in Balanced Fund and Debt Fund ( and that too risky corporate bond fund) and from there to some LIFE INSURANCE product.
Really great technique he used to SELL and EARN.
Now what you have decided?
Sir can we redeem our funds now and if yes what will be the best way for us to redeem both the funds.We can open an FD and pay the life insurance premium from there.Is it safer than this sir?
Yes, you can redeem the funds. But do you feel she need Life Insurance?
Will it be best for us to continue the life insurance upto 3 years ? And is it okay if we redeem our funds as soon as possible and open fd.It is now 6 months when she invested in those funds.
Provide me the full name of the Life Insurance product you invested and also the date when you started.
The life insurance product is SBI Smart Wealth Builder.It was started in September 2016.