Mutual Fund vs New ULIPS for long term investment ?

POSTED BY ON May 13, 2014 4:58 pm COMMENTS (2)

For long term investment, What is better ? Mutual Fund over ULIPS

There were times, when ULIPS charges are very high and people adviced to buy Mutual Fund. Now , IRDA has regulating and asked ULIPS not to charge more 4% for allocation charges.


Based on this, do we have any new suggestion or comments on Mutual funds Vs ULIPS (there are some ULIPS which allows to take without insurance )

Also comment on the tax on the final amount which is charged. e.g. I have Pension Plan, which is 10 years old and it has given 12% returns, and amount if I withdraw would be tax free …



2 replies on this article “Mutual Fund vs New ULIPS for long term investment ?”

  1. ashalanshu says:

    Dear Praveen, the surrender value in pension plan ‘ll be fully taxable at your slab rate.



  2. Nikhil Verma says:

    For long-term investment use Mutual Funds & for Insurance use Term Insurance. I’ll not suggest to use ULIPS to mix both the requirements.

    Compare the returns over long run for Mutual Fund & ULIPS. Also compare how much premium you will need to pay for same Sum Insured for ULIPS & online term plans.


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