8 Replies to “In India, what is the best form of investment?ULIP? or Mutual Fund?”

  1. as m a financial advisor so i would suggest you to invest in ulip.bcoz in ulip the returns are very high.bt invest for a good time say 5 or more years

  2. Mutual Funds are best for long time investment, and ULIP is also good if the at the time of purchase NAV is lower, if nav is more then 10 plus ignore it

  3. Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms of their structure and functioning. As is the case with mutual funds, investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.

    Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance component.

    However it should not be construed that barring the insurance element there is nothing differentiating mutual funds from ULIPs.

    ULIPs vs Mutual Funds

    Investment amounts:
    Determined by the investor and can be modified as well with ULIPs
    Minimum investment amounts are determined by the fund house
    with Mutual Funds

    No upper limits, expenses determined by the insurance company with ULIPs
    Upper limits for expenses chargeable to investors have been set by the regulator with Mutual Funds

    Portfolio disclosure:
    Not mandatory with ULIPs*
    Quarterly disclosures are mandatory with Mutual Funds

    Modifying asset allocation:
    Generally permitted for free or at a nominal cost with ULIPs.
    Entry/exit loads have to be borne by the investor
    with Mutual Funds.

    Tax benefits:
    Section 80C benefits are available on all ULIP investments
    Section 80C benefits are available only on investments in tax-saving funds with Mutual Funds

    * There is lack of consensus on whether ULIPs are required to disclose their portfolios. While some insurers claim that disclosing portfolios on a quarterly basis is mandatory, others state that there is no legal obligation to do so.

    It appears to me like ULIPs would be the most logical choice for you to make in India as an investment.

    Here is the website where I found this information and good luck to you on your choice.

  4. ulip and mf both r different u ‘ll get more returns in mfs while in ulip u r insured aswell but for an investment purpose ulip is a best option no doubt abt it.

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