In general, an annuity is a contract by which an insurance company agrees to make regular payments. A fixed annuity guarantees principal and a specified interest rate, and may also offer additional amounts based on the claims-paying ability of the issuing company. A variable annuity does not make any guarantees. The returns and value of a variable annuity account will fluctuate based on the investment performance of the underlying securities in its portfolio.

annuity is an insurance company contract that can be used for accumulating assets for retirement or as a method of providing an income stream at some future date. Fixed annuities guarantee your principal(based on the claim paying ability of the issuing company) and a fixed rate of return and they are generally considered conservative and stable. A variable annuity's value will fluctuate because it is dependent upon the performance of the underlying sub-accounts managed in the separate account. See similar questions...

A fixed annuity earn a guaranteed rate of interest for a specific time period, such as one, three or five years. Once the guarantee period is over, a new interest rate is set for the next period. It also provides a guaranteed fixed benefit amount to the annuitant, expressed in terms of dollars per payment period. equity ? indexed annuity (EIA) is fixed annuity that offers all the advantage of traditional fixed annuities plus inflation protection because it invests in the stock market. See similar questions...

Annuities are a long-term investment. A fixed annuity provides slower growth, but has a fixed rate of return. A variable annuity may have more potential for growth and gives you more control over what is done with your money, but the element of risk can be greater. See similar questions...

We can accept variable annuities that are nonqualified. However, most variable annuities ARE qualified, which means they are equal to pre-tax dollars. Therefore, the owner must create a taxable event (i.e., sell the variable annuity) before donating the money. At death, annuities bring up the same considerations as retirement plans, although there are no minimum required distribution rules to consider. (See previous two questions for more on contributing from a retirement account. See similar questions...

per Sebi Regulations, mutual funds are not allowed to assure returns. However, funds floated by AMCs of public sector banks and financial institutions were permitted to assure returns to the unitholders provided the parent sponsor was willing to give an explicit guarantee to honor such a commitment. But in general, mutual funds cannot assure fixed returns to their investors. See similar questions...

Mutual funds are measured on relative performance ? compared to a benchmark index. Hedge funds are expected to deliver absolute returns ? under all circumstances, even if the indices are down. Mutual funds are not able to effectively protect portfolios against declining markets other than by going into cash or by shorting a limited amount of stock index futures. See similar questions...

It is a contract between you (the annuity owner) and a life insurance company. In return for your payment, the insurance company agrees to provide either a regular stream of income or a lump sum payout at some future time (generally, once you retire or pass age 59 1/2). Your premiums are invested in one or more sub-accounts and/or fixed interest accounts. The value will fluctuate so that upon redemption they may be worth more or less than the original cost. See similar questions...

With a fixed rate loan/line, the interest rate will not change during the term of the loan. With a variable rate, the interest rate will move up or down, according to a pre-selected index, over the term of the loan. Home Equity loans offer a fixed interest rate, and Home Equity Lines of Credit feature a variable rate. Interest rates are based on the amount you borrow and the loan term. See similar questions...

Fixed rate annuities have minimum guarantees and "fixed" (or declared) interest rates. They are meant for the conservative investor that wants to take advantage of tax-deferral within a conservative investment. Since the interest rate from year to year is pre-determined or declared annually, the investor has a good idea of what his or her account value will be from year to year. See similar questions...

Fixed annuities allow you to lock in a guaranteed rate of return for a predetermined period of time. At the end of this period, the insurance company may issue a new rate for the succeeding period. Additionally, the issuing company guarantees a return of the principal and rate paid into the contract. With these types of guarantees, a fixed annuity may provide a fixed and steady income during the payout phase. All guarantees are based on the claims-paying ability of the issuing insurance company. See similar questions...

Yes, there are a number of mutual fund schemes which give you fixed monthly income. Further, you can also get monthly income by making a single investment in an open ended scheme and redeeming fix value of units at regular intervals. See similar questions...

All reverse mortgages have variable rates that are tied to a financial index and will vary according to market conditions. See similar questions...

The securities in a UIT are professionally selected to meet a stated investment objective, such as growth, income, or capital appreciation. UITs employ a "buy-and-hold" investment strategy: once the trust's portfolio is selected, its securities typically will not be sold or new ones bought, unlike mutual funds. See similar questions...

A mutual fund is a trust that pools the money of several investors and manages investments on their behalf. Legally it is like any other company you know of. Hence, the fund is also called a mutual fund company. The fund company takes your money and like you from other new investors. This is added to the money that's already invested with the fund. Some investors see asset size as an indicator of popularity. A scheme with large assets could be subscribed to by large number of unitholders. See similar questions...