POSTED BY November 29, 2012 5:51 pm COMMENTS (5)ON
I’m looking out to generate a lumpsum fund in nxt 6-8 years for my son’s education (graduation). recently came across ICICI Pru Wealth builder fund. Is it a good option? I know lots of debate between ULIP vs MF in this forum. I also know the breakeven for anyULIP is 7-8 years typically.
Pl advice? Is ICICI Pru wealth builder worth its salt!
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5 replies on this article “ICICI Pru Wealth builder”
HI Manish, Karthik, Thanks, You are right about ULIP. So far I have restrained from ULIP and heavly invested in MF. But sometime I worry about child education and think I should invest in Child plan – incase of death immediate SA paid, end of term SA is paid again and future premiums are waived off. Don’t you think that is a good plan?
Still I dont think its a good idea . You can cover that with term plan + MF investmnts anyways
Quite rightly mentioned, its quite difficult (practically) to use switching facility. Only good feature I see in this policy is that the premium gets allocated in Gvt securities and every month approx 8.3% of the same gets invested in Equity based on option selected. Also ULIP is always a long term commitment, so liquidity is an issue.
For investment in MF, you need to be in constant touch with the fund , need to be disciplined to switch from one to another etc.
So I’m in quite a dilemma :).
Dont see any other options as well. Thanks for quidance.
I think you can tell us how you plan to use the ULIP . I mean how differently you will use it against a MF . Where you can invest and have liberty to choose other funds with better options . How is ULIP giving you an edge (if you are not going to be using its switching facility)
Never go for ULIP.
Invest in HDFC Balanced fund (65% equity) or HDFC Children’s Gift Fund (20% equity) based on your risk profile.
buying ULIP may give you immediate pleasure by seeing lots of respect from the so called ‘Advisors / brokers’ and colorful documents, which you wont get in mutual funds.