MFs Vs ULIPs

[koolz]

MF Vs ULIPs
Investment should not be mixed with insurance.
Mutual fund is for 1-5 yrs investment, ULIP is investment plus insurance.

It is advisable to take Mutual fund plus term insurance(low cost) instead of ULIP(High cost).

[Naresh]

Key features of ULIPs:

1. Combination of investment + insurance.
2. Long-term, systematic and goal-based investment.
3. Automatic asset allocation/Diversification in several asset classes.
4. Flexibility and transparency.
5. Switching funds at no extra cost.
6. Tax benefits under Section 80c of the Income Tax Act.