Hi, My income is around 2,50,000 pa. I have invested Rs 40,000 on LIC policy.?

I dont have any other investment right now. Is it wise to invest in mutual funds right now? Also i think i cann't pay a huge sum of 40, 000 in LIC and do other investments as well, since my parents are dependent on me.I have taken my LIC policy last year only, Should i surrender my policy and go for some mutual funds?

LIC will not refund any amount if the policy is cancelled with in 3 years. So it is left to you weather to discontinue payment or not. If you are not in need of money right now, I suggest you continue LIC. As per you, your parents are also depending on you.

Regarding mutual fund, right now it is some what risky because the index is around 20,000.

Anyway take your policy and visit your local LIC office and ask about the possibilities of surrender and loan. My advise is to continue LIC. But better to know the details. OK.

What lwould you get back if you surrender the LIC Policy now, if it is going to be a loss of say Rs.1,000 or so which you think you can put up with, then do it. Once you have done that.. Do invest in Mutual funds by contributing systematically every month depending upon your ability to contribute. Talk to a investment consultant who deal with Mutual Funds. Assured and safe returns are in PPF, that is public provident fund, which entitle you to tax benefit also when you come into tax bracket.

money saved is money earned......
ravi, your income will increase later, but the lic premium will remain the same throughout. my sugesstion is not to surrender it....you will need it when the times comes for u to be dependent on some1.

Rs 250,000 = about $4440 or 拢2148 pa, not really enough to try your skills at so called investing (gambling is more the truth of it), i think i would keep my life insurance and try your hand at increasing your salary by perhaps working part time in a hotel where you may make some tips from American and European tourists.

ignore the policy and money. not benifitful for investment. invest only in perfoming mutual funds only

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