3 Replies to “What is the difference between Mutual funds and Insurance ?? can anyone be held in higher pedestal?”

  1. Both are investments. Mutual funds are shares investment.Insurance is investment on your life As for their pedestals it depends on profits and your longevity.

  2. Insurance is a loss reducing avenue for unforeseen events. Insurance will not make you rich. It is not an investment. It is only an expense. Ideally no insurance is the best option. But when you have dependents , taking life insurance is a safer option ,especially in the earlier years when you have not much savings or assets. For Insurance , go for PURE TERM COVER only. Mutual funds is a good and safe way to invest in equity, although direct equity is still the best. Start with SIP in mutual funds and shift part of your savings to direct equity after a few years. Stick to only the top 10 companies which are leaders in their sector. Buy in small lots. Visit http://www.valueresearchonline.com to learn more about mutual funds.

  3. A mutual fund is an investment company whose product is a portfolio of assets. The management sells the portfolio to investors who, after putting down funds for it, are entitled to a portion of ownership of the fund.

    Insurance is a guarantee against substantial loss in the event of an unexpected circumstance. For example, homeowner’s insurance is a guarantee that up the bearer will be compensated up to a certain amount in the event of damage to the home. Life insurance is a guarantee that in the event of death, the beneficiary of the policy will receive a sum of money known as the death benefit.

    Insurance is used as a hedge against uncertainty. Mutual funds are an investment. They offer a chance for money to grow.

Leave a Reply

Your email address will not be published. Required fields are marked *

12 − three =