A friend of mine Mansukh recently bought to my notice an article on Jeewan Asthaa, a new policy by LIC which is creating a buzz in the market. He says that I should put it in my blog, so many a friends who would have missed the story can benefit from it.
Sandeep Shanbhag writes: It is in school that we are taught the basic difference between simple and compound interest. We are taught the fundamental principle that compound interest and not simple interest is the effective rate of return on any investment.
However, it increasingly seems to me that this is a lesson that is either not learnt well or is forgotten way too early. How else does one explain people falling over each other to invest in what essentially is a fixed deposit that, depending upon the age of the investor, offers at best 7.32% per annum (p.a.) and at worst a 4.32% p.a. return?
Interested? Well continue to read the entire story here!
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