MFs Vs ULIPs

[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.

[Mahesh]

Advantages to ULIP Plans -
1. Transparency
2. Tax free returns
3. Switch between various options
4. Tax Benefits

[PolicyWala]

Advantages to ULIP Plans -
1. Transparency
2. Tax free returns
3. Switch between various options
4. Tax Benefits

Mahesh - I agree with all the above advantages, but if you compare with the dis-advantages than going with term + MFs is the best option.

[anish09]

Thumb rule - If you are investing for less than 15 year than you must go with mutual fund, and if you are investing for more than 15 years than you must go with a good ulip plan.