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ULIPs vs Mutual Funds: Which is better investment

ULIPs vs Mutual Funds Which is better investment

ULIPs vs Mutual Funds Which is better investment

ULIPs vs Mutual Funds Which is better investment? When we talk about mutual funds investment in India, many investors mixed up between Mutual Funds and ULIPs (Unit Linked Insurance Plans). Both of them help you grow money, but they operate differently. Let’s clear things up and help you choose which one suits you better.

What Are Mutual Funds?

Mutual Funds collect funds from different investors and invest in equity, debt, and hybrid investments. They are completely investment products with no insurance plans.

Why people prefer Mutual Funds:

What Are ULIPs?

ULIPs mix insurance with investment, in which a part of your premium contributes to life cover, whereas the rest is invested in funds of your choice.

Key features of ULIPs:

ULIPs vs Mutual Funds Which is better investment: Direct Comparison

Returns: 

Explore more on sebi.gov.in for regulatory insights on mutual fund returns.

Liquidity:

Tax Benefits: 

Costs: 

Refer to irdai.gov.in for ULIP cost disclosures and charges.

Which Should You Choose?

Your choice of picking any one plan totally depends on your financial goals:

How Interest Rates Impact Debt Mutual Funds in India

How to Decide Smartly?

Before you start your investment, always:

Understanding how to choose the right mutual fund in India is crucial. Make sure to do your research, read the policies of the funds carefully, and take advise from a financial advisor if needed.

Conclusion 

Both Mutual Funds and ULIPs have their own pros and cons. But for most Indians, who are focusing on pure wealth creation, mutual funds investment in India remains a realistic choice. Split your insurance needs and grow your money wisely.  

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