Hdfc Life Sanchay Plus
Many people have asked me “Is Hdfc Life Sanchay Plus” a good plan …?
I have seen the product and it looks like it will give you about 6.4% p.a. IRR over a real long term. I mean you could put in the money today…for 12 years you get nothing and then you start getting the return…and the IRR works out to about 6.3-6.4% p.a. return.
If you have appetite for Rs. 6L of debt products in a year, PPF will take care of your needs. If you are a well paid executive and have voluntary provident fund, you could pump Rs. 30L into that plan. Both these are surely good options. However, if you are a businessman looking to put in Rs. 30L a year in a debt instrument and you are under 50 years of age…it is surely worth looking at Sanchay Plus. I am over 50 years of age and hence am not eligible for the same, and hence not investing in the same. Saving is a better word than investing.
I do think that over a 30 year period when interest rates go down it is doubtful whether any instrument will be able to give you post tax return of 6.4% p.a. guaranteed return. Surely there are produts like SBI listed debentures which might get you say 7%…but remember this is tax free.
Am I recommending this product? well I know many people who have bought this product – pushed by Hdfc bank – very aggresively. As I have not bought my research is not thorough. Here is a note by Basunivesh….do read on…and take your own decision.
https://www.basunivesh.com/2019/06/07/hdfc-life-sanchay-plus-a-guaranteed-trap/
Pradeep
Gone are the days when you recommended only equity for a goal as far as even 10 years. We expected you to say straightforward No to Sanchay Plus for a period of 30 years which is like retirement savings. But you are sitting on the fence is a big surprise.
V. Madhusudhan
Dear Subra sir, i have a simple question or more of a doubt on your statement bellow: ”
If you have appetite for Rs. 6L of debt products in a year, PPF will take care of your needs.”
If i understand correct one person can do max 1.50L only in PPF, so i dont get you when u say max 6L? How? Pls. reply.
Financial consultant
“I never lose, either I gain or I learn”.
I have now bought shares in HDFC life and HDFC Bank & the returns are fantastic.
How did I learn – my HDFC RM palmed me off an HDFC savings assurance plan for which I continued paying premium for 10 years. The lump-sum I rec’d in the 11th year amounted to an IRR of 5.1%. I honestly felt cheated with this product and found so many like me crib about the product. But as HDFC BANK & HDFC LIFE continued to make handsome gains I realized, I need to move from the customer (victim you might say) to the owner side and enjoy the benefits.
Kindly keep morality out of investment as evidenced time & again by big corporations across the world.