MFs Vs ULIPs

[BlackCaps]

ULIP Policies have lot of dissadvantages -
1- Very high charges
2- Policy is not explained fully that is why so many are unhappy with it afterwards

3- It is not really insurance as only insured sum or policy value is paid in case of death and not both.

[shivkumar]

ULIP plans -
1. Invest for 12 - 15 yrs .
2. Go for monthly paying mode in maximum equity exposer
3. If ur motive is life insurance(1st), investment & tax benefit.
4. Can't take out before 3 yrs.
5. Expert agent / advisor needed for proper switching to gain 58% p.a.

Mutual fund-
1. Term for 3+ yrs.
2. Motive is investment and tax saving.
3. SIP is best way to invest / else when market is down 1500 points .
4. Can redeem after 3 year (without any exit load)
5. Proper market watch required to buy right MF


Happy Investing
Shiv Kumar

[Sanjay]

Go for mutual fund and term policy.

[Absar]

Please see this differentiation -

[PolicyWala]

Absar - Please put the source, If you are putting any info from other sites or source. Please take care of this next time otherwise I would ban you.

This is a good info for all, thanks for this.

[CONFUSED]

Good Info on SIP -

[Rahul]

If one has to invest for saving tax and also insurance then ULIPS are the best bet. If can time the market, you can make the most money of it by switching at right moments. So look for the ulip which has min admin charges over the years.

Next if some one is looking for tax saving and not insurance then ELSS are the best. These have the minimum admin charges too.

[BlackCaps]

ULIP's... No..

Go for a 'Diversified Mutual Fund', and 'Term Policy by LIC'.

[Expert]

Why ULIPs are not good over MFs?
1- Higher Agent Commissions
2- Costlier exit options
3- No Track record
4- Larger Commitments


Good article read here - ET.com

[best]

I think it will be wise to keep insurance, ie term insurance & SIP investments via MFs preferably dividend seperately bcos your charges for term insurance are much cheaper and if you take past 10 years records of good MFs the returns are much greater than your Ulips, whereas the charges in Ulips are much higher and mostly goes unknown as bundled.