Something went wrong with the connection!
 Breaking News

ULIP vs. New Mutual Fund: Where Should You Place Your Funds?

ULIP vs. New Mutual Fund: Where Should You Place Your Funds?
January 28
11:22 2020

A Unit Linked Insurance Plan (ULIP) offers you dual benefits as it provides you with an investment vehicle that puts your money to work with some market-linked investments whilst also giving you peace of mind that comes with having life insurance cover.

Choosing a ULIP saving plan is often driven by your specific investment goals and proposed timeline for getting where you want to be from a financial perspective and when you invest in a ULIP you will be opening up a potential gateway to wealth creation.

One question to consider when you are considering your options would be to work out whether it would be better to go with a ULIP over a mutual fund. Here is a look at some of the fundamental differences and advantages to consider before deciding where to put your money.

Spot the difference

A good starting point would be to look at the specific differences between a ULIP and a mutual fund. Mutual funds have been around for a lot longer than ULIP’s and they are basically an investment vehicle with a specific purpose. It is designed to offer you exposure to equities with the aim of achieving capital growth over a period of time.

By comparison, ULIPs are a financial product that consists of two specific elements, life insurance cover, and investment inequities. What you get when you invest in a ULIP is insurance against your death so that your family is provided for if you pass away unexpectedly and prematurely.

A tax-efficient way of investing

You always have to consider how you can invest your cash in the most tax-efficient way so that you get to keep as much of your money as possible and legitimately avoid paying more tax than you have to. This is a feature that puts a ULIP ahead of a basic mutual fund.

You are permitted to make tax deductions under section 80C of the Income Tax Act and this means that the amount you invest in a ULIP is allowable as a deduction against your taxable income.

Looking to the future

It tends to follow that if you can give yourself the longest amount of time possible to achieve your financial goals you will improve your chances of enjoying better returns as your money will have had plenty of opportunities to grow in value.

On this basis, you would have to say that ULIP investments are more favorable, as you get the advantageous combination of a long-term financial wealth investment plan combined with the highly worthwhile backup of life insurance to cover you against the unexpected.

If you have a family to take care of and future plans for yourself and your children, you can use a ULIP investment vehicle to enjoy the prospect of capital appreciation via your exposure to equities and government securities along with life cover so that your family is provided for if when you are no longer around.

Mutual funds have proved to be enduringly popular and with a ULIP you get the great combination investment and insurance. Where will your money be invested to meet your future financial aspirations and goals?

Comments

comments

Related Articles

Polls

Will SAARC cooperation improve due to COVID19 crisis

View Results

Loading ... Loading ...

E-paper Latest Edition

Subscribe to our Digital Edition

Epaper

ADVERTISEMENT – DR HORTON

Dr Horton Skyline Ridge

ADVERTISEMENT – SEVEN JACPOTS

casino

ADVERTISEMENT – BETRALLY INDIA

betting India

ADVERTISEMENT – DR HORTON

ADVERTISEMENT – NRIA NET

www.nria.net

ADVERTISEMENT – Star Tours

Star Tours

ADVERTISEMENT – INKASA INTERIORS

Inkasa Interiors | Interior Designer in Delhi

50 SPIRITUAL APPETIZERS – VINOD DHAWAN

50-ad-Indiapost

It’s a lovely book. It feels energetically clear and light. It’s easy to read, dip in and out and most importantly it offers information without fluff! Blessings on this project.

Jac O’Keeffe
Spirituality teacher based in USA.

*Available on Amazon, Flipkart & other online stores*

ADVERTISEMENT – JOBSORA- FIND A JOB NOW!

Jobsora Jobs

Follow us On Twitter

RT @PTI_News: Doordarshan all set to bring back iconic shows like 'Shaktimaan' & 'Chanakya' during #lockdown
h J R
@Indiapost_News
RT @sportstarweb: 🚨JUST IN Tokyo to host the postponed Olympics from July 23 to August 8 2021. #Tokyo2020 #Tokyo2021
h J R
@Indiapost_News
Stuck in LA, Soundarya Sharma raises funds for Indian community - https://t.co/jzIV2QICzm Get your news featured u… https://t.co/nDgbs2MCWY
h J R
@Indiapost_News
ICICI Lombard, #BharatPe plan ... - https://t.co/umoDyEo17K Get your news featured use #IndiaPostUSA #Coronavirus… https://t.co/jcTcNtS1vH
h J R
@Indiapost_News

POPULAR CATEGORIES

Subscribe To Our Mailing List

Enter your email address:

Delivered by FeedBurner

Subscribe to IndiaPost by Email

Download Media Kit

India Post Media Kit