Recently my father's LIC Money back policy policy matured and he received a return of around 126000 INR, although he considered this a success even after investing an amount 6560 every year for 20 years, I was skeptical around the return.
So I decided to compare that with returns of other famous investment vehicles like Nifty 50 and Gold.
There was a moneyback from the policy every 5 years considering that, here is the result of such comparison from 2001 to 2021
Summary:
Return on Gold : 12%
Return on Nifty: 15%
Return on LIC: 5%
(calculation attached with G Sheet)
Note: The comparison is made with absolute data based on actual dates and values
If you want to calculate the same for your ULIP/ LIC, here are the steps to follow:
So I decided to compare that with returns of other famous investment vehicles like Nifty 50 and Gold.
There was a moneyback from the policy every 5 years considering that, here is the result of such comparison from 2001 to 2021
Summary:
Return on Gold : 12%
Return on Nifty: 15%
Return on LIC: 5%
(calculation attached with G Sheet)
Note: The comparison is made with absolute data based on actual dates and values
If you want to calculate the same for your ULIP/ LIC, here are the steps to follow:
- get Nifty date wise NAV from VRO
- Gold price date wise from Google
- LIC returns in actual
- feed to a spread sheet like Excel and use XIRR formulae