POSTED BY August 22, 2012 11:08 am COMMENTS (4)ON
From this forum, I have read a lot about pros and cons of MFs way of creating corpus over ULIP Pension Plan.
I do acknowledge the felxibility MF corpus bring over ULIP (while accumulating corpus and finally when going for Annuity)
I have a observation on taxation front.
As everybody would agree, when we will reach closer to our retirement age we will start moving our equity MF investment to Debt MF (to save from market fluctuation).
At the time of retirement age, we will take out complete money (from Debt fund) to buy a annuity. My understanding is that this will attact LTCG or STCG tax as the case may be.
Where as if I would have used ULIP, I would be saving on Tax completely…
Am I missing something? Why we think the ULIP (without Tax implications) would be a bad choice?