As the financial year is coming near close, the insurers in the industry have flooded the market with the advertisements on highest guaranteed NAV during the past two months. Be it LIC, ICICI Prudential Life, Bajaj Allianz, SBI, Tata AIG, Reliance and Birla Sunlife, all of them are trying to tap the consumers by luring them with such advertisements.

However, experts are of a view that these schemes may prove costly for the consumers in the long-run. Firstly, the clause of the Guarantee income under these schemes is the one which may prove a hurdle for the consumers. This is the amount the companies are charging for providing a guarantee for the consumers' income.

Moreover, with the highest NAV guarantee, it doesn't mean that the income is guaranteed it is just giving the guarantee of the capital invested. It is recommended that the big players who have a portfolio manager running their portfolios can invest in such schemes which is result in lowering the risk and cost for them but smaller players should stay invested in schemes like ELSS mutual funds or tax-based small savings plans.