Generally speaking the best saving plans out there gives around FD + one or two percent more in terms of IRR. With a lock in period of many years.

Saving plans when compared to pure investment (example a equity UTF) sure lose. It is like comparing lemon and orange. The best quality lemon will always be less sweet than the lousiest quality orange.

However, who will benefit most from saving plans?

I) Those who already have enough money and want to create a trust for their next of kin (who after many years will be adult to collect the benefit)

II) Those who already have enough money and want to create a trust that is creditor proof versus pure investment UTF that is not creditor proof.

Xuzen

p/s Saving plan is not a good tool to generate wealth. It is a better tool to preserve wealth and to prepare smooth transfer of wealth to the next of kin.

This post has been edited by xuzen: Sep 8 2016, 10:47 AM