CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
10 October 2008Hi friends,
Can you answer me with reasons whether ULIP's are still a better option to invest??? Which one is better between "ICICI or HDFC".
Thank you in advance !!!
Nilay
(asdsa)
(48 Points)
Replied 10 October 2008
ULIP's are the worst form of investment due their are high entry level charges upto 30-40%.These are recovered in the first 3 years itself.
Comparatively mutual funds will charge only 2-3% p.a for managing your money.
With the current meltdown all ULIPs will take a sound beating since which investment will fetch returns the one which starts with -30% or -3% ?
Instead,you may opt for a term insurance plan and invest the balance in mutual funds.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 10 October 2008
So do you mean that better to take a seperate Insurance policy and make Investment seperately??
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 10 October 2008
So do you mean that better to take a seperate Insurance policy and make Investment seperately??
Exactly...I agree wit Nilay.. Its better not to mix ur tax planning and insurance. ULPIs r the worst.. They end up giving neither.. Better take a seperate insurance policy and go for ELSS for tax planning... ELSS s also good in the sense that its long term in nature... Short term volatility can be negated...Hope this s useful...
Yes, ULIP is still better option for investment. In ULIP your fund is invested by a team of experts which you may not do. Secondly in next 4 - 5 years the investment in equaties may give a good return on investment. But Switch over of funds from time to time may also help in getting more. Although this needs extra knowledge and care. This is pureily my opinion.
Investment is your decision. Although the risk in investment is equaties is more than Bank deposits. In favourable conditions the return is also more.
Ramalingam K
(Founder & Director - Holistic Investment Planners (P) Limited)
(21077 Points)
Replied 03 June 2014
What is ULIP?
Unit Linked Insurance Policy (ULIP) is a product offered by insurance companies that unlike a pure insurance policy gives investors the benefits of both insurance and investment under a single integrated plan.
https://holisticinvestment.in/blog/surrender-ulip-policy/
Regards
Ramalingam K, MBA, CFP,
Director and Chief Financial Planner,
Holistic Investment Planners
“Best Performing Financial Advisor Award” Winners from CNBC TV18
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