ULIP policy V/S Matured PPF Account

POSTED BY Jipal Shah ON February 26, 2012 6:41 pm COMMENTS (5)

I want to invest 60000 per annum. I have matured PPF account, running 19th year in PPF account means I can withdraw some partial money from PPF account every year.
My question is, if I continue invest in PPF I will earn 8.6% interest rate, does the ulip policy gives me more return than 8.6% compared to PPF.
I also came to know ULIP policy have some percentage of invested amount goes to charges in FMC, premium allocation charges, mortality charges etc.
Is it wise to invest in ULIP 5 yrs lock period policy to get more return than PPF?

Please advise.
Thanks in advance!

Thank you.

5 replies on this article “ULIP policy V/S Matured PPF Account”

  1. rashmi1agrawal@gmail.com says:


    I have not put across any amount in PPF , as I am earning out of India . So felt more fine to do FD instd of PPF is it ok or I shld think for PPF.

    Pls advice

  2. Jipal – ULIPs are truly speaking – just – MF + Insurance (AGreed there are debt plans within a ULIP but people buy ULIP anticipating euity will grow).

    You can get decent returns just by investing in MFs in a SIP way (against lumpsum). ULIPs have a dozen charges and the FUnd Management CHarges are the only one common between MFs and ULIP funds.

    As said If you want to diversify buy Mutual Funds. If you have financial obligations left opt for a term insurance for the next 10 or 15 years. This will accomplish creating your own ULIP, if you will.

  3. Jipal

    I would not recommend you even look for ULIP at this point . There are some points because I say this .

    1. You seem to be not understanding the ULIP product and how it functions.
    2. You seem to be old fashioned investor and in your 40-50+ yrs age (assumption)
    3. You have better options these days for your case like Senior Citizen Saving Scheme and attractive FD rates for Senior citizens ! .


  4. BanyanFA says:

    Hi Jipal,
    If you already have an insurance cover, then you don’t need to go for ULIP.
    It is a good idea to renew your PPF every year as now your PPF would mature after every 5 years.

    Is 60K your entire year’s saving ? If yes, then you should think about investing atleast 20K per year into Mutual Funds via SIP and remaining you can continue to invest into PPF. This would give you the same, rather more returns than ULIP.


  5. Dear Jipal Shah, Are you aware that for a period your basic investment may come down in abig way as the money is invested in share market. Please do not look in isolation for the return part. Please do note ULIPs are a combo product & these are beneficial only if you are investing for 20-25Y & not for 5Y.

    From your query – it seems that you do not have much idea of how ULIPs work? For the situation I w’d ask you to keep renewing your PPF account for another block of 5Y & keep investing in PPF.



Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.