Great article, Ammar Bhai! I have a few questions, if you have sometime to answer
A- What fixed income funds in Pakistan are capable of off setting the effect on purchasing power of the rupee due to double digit inflation, rising power prices and depreciation of the Rs against the USD. What is the lowest rate of return which is required to off-set these factors.
B- How do you see the stock market performing this year with all that is going on with the state bank, IMF, and the electricity prices?
I am trying to understand how both can help in the current scenario if someone is starting out right now.
C- Are there any banks in Pakistan who give you access to non-PK securities market when you maintain a premium relationship with them, like the UAE for instance.
Would love to hear your thoughts on the above. Thanks, again for taking out the time to write this blog.
Dear Sir I just got duped by Bank Alfalah IGI Vitality [Zindagi Premier Takaful Savings Plan policy]. After repeated requests I finally got my policy statement and was shocked to see 104,000 against 1st year premium of Rs 250,000 in my account. I raised some simple queries by email. I did receive some customer agent calls but I refused to talk and insisted on written reply for record. The Bank officer who sold the policy did not even inform me in writing / email / whatsapp that it is a recurring expenditure. I was led to believe that 250,000 will earn profit (minimum 8%) plus providing death / hospitalization coverage. No hint whatsoever regarding hefty insurance fee deductions. Well shockingly the bank agent can hardly differentiate between bank statement and policy statement. He has no clue regarding various parameters of policy statement which are way over my head. But then I am a layman trying to invest post retirement funds by taking out the policy in my son's name. I want to go lock stock and barrel against them and lodge official complaint in SECP. How to proceed in this regard? Desperate for help and guidance.
What if the first year commissions were reduced to say 20-25% which is more in-line with other insurance products. Will that make the returns comparable to other instruments?
Thank you very much for taking time to educate us, the naive. Couple of questions
1) how likely or any precedence that these insurance companies go bust or not give such returns. How they perform in situation like 2008 financial crisis. This in comparison to likelihood of individual making bad bets. Im thinking of worst case scenario, where our money is more save
2) how the net return percentage was calculated in the sheet, sorry if this look stupid for the maths
A comment: the insurance schemes demand financial discipline that on individual level we might not be able to follow
Great article, Ammar Bhai! I have a few questions, if you have sometime to answer
A- What fixed income funds in Pakistan are capable of off setting the effect on purchasing power of the rupee due to double digit inflation, rising power prices and depreciation of the Rs against the USD. What is the lowest rate of return which is required to off-set these factors.
B- How do you see the stock market performing this year with all that is going on with the state bank, IMF, and the electricity prices?
I am trying to understand how both can help in the current scenario if someone is starting out right now.
C- Are there any banks in Pakistan who give you access to non-PK securities market when you maintain a premium relationship with them, like the UAE for instance.
Would love to hear your thoughts on the above. Thanks, again for taking out the time to write this blog.
Publish in a newspaper like Tribune
How do mutual funds compare to insurance investment products wrt returns and management/commission charges?
Dear Sir I just got duped by Bank Alfalah IGI Vitality [Zindagi Premier Takaful Savings Plan policy]. After repeated requests I finally got my policy statement and was shocked to see 104,000 against 1st year premium of Rs 250,000 in my account. I raised some simple queries by email. I did receive some customer agent calls but I refused to talk and insisted on written reply for record. The Bank officer who sold the policy did not even inform me in writing / email / whatsapp that it is a recurring expenditure. I was led to believe that 250,000 will earn profit (minimum 8%) plus providing death / hospitalization coverage. No hint whatsoever regarding hefty insurance fee deductions. Well shockingly the bank agent can hardly differentiate between bank statement and policy statement. He has no clue regarding various parameters of policy statement which are way over my head. But then I am a layman trying to invest post retirement funds by taking out the policy in my son's name. I want to go lock stock and barrel against them and lodge official complaint in SECP. How to proceed in this regard? Desperate for help and guidance.
if you deeply study the finance, banks and insurance actually shop out of our investment. Acts like they do paying extra pie generously.
What if the first year commissions were reduced to say 20-25% which is more in-line with other insurance products. Will that make the returns comparable to other instruments?
Thank you very much for taking time to educate us, the naive. Couple of questions
1) how likely or any precedence that these insurance companies go bust or not give such returns. How they perform in situation like 2008 financial crisis. This in comparison to likelihood of individual making bad bets. Im thinking of worst case scenario, where our money is more save
2) how the net return percentage was calculated in the sheet, sorry if this look stupid for the maths
A comment: the insurance schemes demand financial discipline that on individual level we might not be able to follow
Well written and easy to understand.
Good read! Life insurance should only and only be taken for the purpose of “death hedge” and not as a savings product
Is it worth it to count your losses 2 years in and get out 🙄... Or just let it be?
Asking for a friend. :)
Insightful! great work. Excited about the next iteration.
Life insurance is still a myth in Pakistan.. but thumbs up to your analysis Ammar.
Excellent post.
Besides bid ask spread, management fees and commissions, is there any other charge in unit linked plans? Like mortality charges. How much are these?
Also how is bancassurance structured in region? Does the same-thing happen in India too ?