Tweets on 2012-03-07

by Vinaya HS on March 7, 2012

in Finance

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Read elsewhere –

Risk is typically measured as the variability of returns. Thus, a bank fixed deposit with sure shot 10 percent returns versus a mid-cap stock that could return 30 percent or lose 10 percent have very different risk-return profiles.

I also happened to read an interview with the CEO of a life insurance company where it was quoted that “the insurance company asked its customers if they’d like the insurance company to manage their investments and 95% of the customers replied in the affirmative.”

That’s one risk-return bet I’d advise you not to take — ever.

Life insurance — and insurance in general — shouldn’t be a risk-return game. It’s a risk-only game. You can do much much better elsewhere on the returns-game.

Seriously, I wonder who these people who replied in the affirmative are. Then again, I have my own doubts about the sample set chosen.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 2 comments… read them below or add one }

Rakesh March 21, 2012 at 10:28 PM

Vinaya,

Hmm, strange 95% people said that. God help them.

Vinaya H S March 22, 2012 at 12:10 PM

@Rakesh:

I doubt if God can. :-) My guess is that they’d convince even God to go for a ULIP.

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