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Fantasy Fortunes

When someone promises fancy returns on investments, be very careful

I am being told  that if I invest Rs 50,000 per annum in Kotak Mahindra for three years that I will get Rs 3 lakh in return. Is it possible?

No, it is not possible. This is a warning for everybody. Be wary of anyone promising returns of this nature.

Please tell me about three tax saving funds. Also, can I take a loan on the New Pension Scheme (NPS)?

Sunderam Taxsaver, Canara Robeco Taxsaver, and HDFC Taxsaver are good funds and will serve your purpose well.
You cannot take a loan on NPS. However, NPS is a very good option if you want to save up for your retirement.

I would like to know about unit-linked insurance plans (ULIPs). Which plan is good?

ULIPs are a bad idea. They are expensive and most investors would be better off not mixing their insurance and investment goals. In insurance, you need a very close estimation. If you have a very serious need for insurance, then go for a standalone policy and the best insurance comes in the form of term insurance, which works like a car insurance where you pay the premium and if something happens to you, you get a substantial coverage. If nothing happens, it expires. If you are thinking about investment, don’t think of ULIPs. 

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