Thursday, June 5, 2008

ULIP's better product or Mutual Funds

ULIP's or Unit Linked Insurance Product are as the name suggest provides insurance as well as Investment avenue both combined into one product. Most of us human being by nature want more. so we feel very happy when we take an ULIP because it has insurance also.
but BEWARE Most of the ULIPs currently in the market has heavy upfront charges of as high as 25% to 50% of your first year premium. This products are always good only for the agent who sells them because they get high commission.

If you need an insurance then always opt for a pure vanilla Term Insurance which is the cheapest of all kinds of insurance. If you want to save money and create wealth then you can do an SIP in mutual funds (Mutual funds have and entry load of only 2.25%) which is much much less then 25% to 50% charged by ULIPs.



2 comments:

ANAND BAIRAGI said...

sir, i want to start investing through SIP with Rs. 1000/- can you suggest me the name of the mutual fund with i should look into.

Experts said...

You can invest in top performing large cap diversified equity mutual fund.
1) Reliance Vision Fund
2) HDFC Top 200 Fund
are two of the good funds.

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