Which is the best ULIP for investment and what are the things to check for comparing in ULIPs?

POSTED BY Patrick ON February 22, 2014 10:09 am COMMENTS (16)

I checked the return rates of HDFC ProGrowth Plus ULIP  for last 10 years and  and it is 30% And the charges they cut are also less than other companies(ICICI, SBI, Aviva life insurance) . I am planning too invest Rs 2500 monthly in this ULIP for 15 years.

16 replies on this article “Which is the best ULIP for investment and what are the things to check for comparing in ULIPs?”

  1. nilay says:

    i have purchased hdfc sl progrowth plus every year 100000 is it worth?

  2. Hemanth Chandra says:

    As Arun said above, the annualized return is around 13 % but not 30% which you thought.

    If you want to invest in balanced fund, directly invest in HDFC Balanced fund, why to invest in a ULIP which in turn may (or maynot ) invest in HDFC Balanced Fund.

    Also, I came to know that HDFC Mutual Fund is a fund in which is having more than 65% of investments in Equity stocks from the below article. So, if you invest for 1 year in this fund, there will be no tax.

    http://www.tflguide.com/2011/12/mutual-fund-taxation-in-india.html

    If you want to invest in Balanced Fund, pick a good fund from value research online and invest in it. HDFC Balanced fund is a fine fund with decent returns, but there are some other balanced funds which performed better than HDFC Balanced Fund in recent years, so the rating is less for it.

    If you want to take insurance, take pure term policies. Don’t invest in ULIPs for insurance and investment purpose.

    Regards,
    Hemanth.

  3. akgc2 says:

    You can refer below link for this particular mutual fund performance

    http://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=844

    At this page I see that from 01-Mar-2004 to 01-Feb-2014 (10 Years) monthly SIP of Rs 1000/- making total investment of Rs 1,20,000 (in 10 Years 120 installments) has grown to approx Rs 2,42,000/- which means an annualized return of 13%.

    Regards
    Arun

    Regards
    Arun

  4. akgc2 says:

    You mentioned that

    “i checked on above link where it shows absolute return of 319.7% for 10 years”

    If you calculate annualized returns it is just 12.3% and not 30% so again the claims made buy the guy are false.

  5. akgc2 says:

    Beware of PolicyBazaar people. They make false claims to sale the policy for their commission.

    Never ever invest in any of ULIP plans. The charges are always high.

    Also there is no TDS on mutual funds. IT totally a false statement.

    For direct types of investment in mutual funds and holding for more than one year there is no entry and exit load and also the returns are tax free.

    At any time if you want to invest in stock market do it directly into stocks or buy mutual funds. For insurance part buy Term Insurance policies where you get Insurance for upto 1000 (Thousand) times of your annual premium. i.e. for Rs 10K you may get Rs 1 Cr insurance depending on your age and health conditions.

    Regards
    Arun

    1. Patrick says:

      Hi Akgc2,

      Where can i find this information that no TDS will be deducted(as u mentioned above) on Mutual Fund returns ?

  6. ashalanshu says:

    Dear Patrick, the called ULIP was not available even 5Y ago, how did you manage 10Y old data?

    Thanks

    Ashal

    1. Patrick says:

      Hi Ashalanshu,

      A policybazaar guy told me that balanced fund of HDFC ProGrowth Plus ULIP is same as HDFC balanced mutual fund and he showed me its performance on this link:
      http://www.moneycontrol.com/mutual-funds/nav/hdfc-balanced-fund/MHD002

      1. ashalanshu says:

        Dear Patrick, do you want insurance or investment or both? As far as the comments made by policybazaar executive, I think it’s a fit and proper case to report IRDA to cancel the license of policybazaar. Please do note, fund management of ULIP under HDFC Life insurance has nothing to do with the performance of HDFC balanced fund operated by HDFC AMC. In both cases, HDFC is the owner only but other than this, no similarity is there in the 2 things.

        Thanks

        Ashal

        1. Patrick says:

          Hi Ashalanshu,

          Actually i am only looking for investment but policybazaar executive misguided me. He told me that ULIP is better than mutual fund because no TDS is deducted on returns.

          But here i got the truth.

          1. ashalanshu says:

            Dear Patrick, as you are looking for return only and not insurance, please invest in the MFs directly. Which MFs to select to invest in, is a matter of separate discussion. 🙂

            Thanks

            Ashal

  7. Hemanth Chandra says:

    Hi Patrick,

    I tried to check the perfomance of this fund in the below link, where I found different plans of this fund like balanced,blue chip etc. with different NAVs. In which option you wish to invest.

    http://www.indiainfoline.com/PersonalFinance/Insurance/ULIP-Performance.aspx

    Also, the 30 % returns that you mentioned is annualized or absolute ??

    Can you please give the link where you have checked the fund performance for last 10 years.

    Regards,
    Hemanth.

    1. Patrick says:

      I checked balanced fund of ULIP.
      http://www.moneycontrol.com/mutual-funds/nav/hdfc-balanced-fund/returns-calculator-MHD002.html
      i checked on above link where it shows absolute return of 319.7% for 10 years

      and there is 1 more link:
      http://www.moneycontrol.com/insurance/ulip/hdfc-standard-life-insurance-HD/hdfc-life-progrowth-plus-balanced-fund-IHD389.html
      where it shows 11.50% for 2 years

      Actually a policybazaar guy told me that HDFC ProGrowth Plus balanced fund is same as HDFC balanced mutual fund.

      And he also told me that benefit of taking ULIP instead of mutual fund is that no TDS will be deducted on returns in ULIP.

      1. Patrick says:

        I am wishing to invest in Income and Balanced fund

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