The jokes are just not stopping. A friend had bought a unit linked insurance plan from a company. As is wont with friends, he called me a month after he had received the statement. He was shocked to find that he had paid Rs. 200,000 and the statement was showing an investment of only Rs. 86,000. This was invested in a “balanced fund”.

He asked me what it means. I asked him to check with the “salesman” who sold it to him. The truth was there was an entry load of 55% (obviously figures have been changed to keep all concerned happy). Which means only Rs. 90k got invested, and then risk charges, etc. were removed. Thus the amount being shown was Rs. 86000.

The client got a reply which said “Sir, it is a balanced fund, so the amount that is invested in the market is shown as an investment, and the balance is put in safe government bonds etc.” so actually all your money is invested, but since the gov bonds do not change in value, they are not included in the statement”

I was impressed!