Its better to buy pure risk cover without return of premium they work out cheaper than ULIPs. The balance amount can be put in to good equity funds. This approach only demands one thing regular investing.
dear all, kindly remember the above sub. before signing any ulips. very very high MISSELLINGS can happen only in ulip selling due to its very complex charges deducted in units on monthly basis. thats why, markets jumped from 8000 to 17000 points(sensex),these so called fund managers shown a bad fund performance. thanks p.s.. i am still working as a sales consultant in one of the pvt. life company.
Once you Surrender the ULIP To encash whether after 3 year or 7 year you will lost your Insurance. That Means You need to buy another Insurance Policy Thus you lost All your First Insuracne Premium mony.
That is Why. Buy Insurance Separately and Invest Separatly.
Now About Mutual Funds. Mutual Funds Themselvs Says that Investing in Mutual Fund is Risky.. Please Read Offer Document Before Investing.
Past Performance or Name of the Schems are not the Garanty of Future Profit.
Thus One Must Read Offer Document Before Investing in MF..
I would not say or compare for that matter ULIP with M/F. Ulip is basket to enjoy equity linked returns along with some kind of insurance coverage. People who can endure the patience of having invested in ULIPs for periods for 7-10 years should try to go for ULIP.Believe me you shall be rewarded RICH. Others do get some information before entering to ULIPS...............Keep investing today 4 ur tomorrow.. :)
Re: Ulips not too bad to buy
by Atanu Chatterjee on Nov 26, 2009 06:46 PM
The same thing is true for equity MFs after a period of 7-10 yrs, and one should be richer considering MFs has much lesser charges and the schemes are more transparent than ULIPs. In MF one probably needs to be a little more proactive as automatic/manual switching to debt from equity and vice versa are not possible in MF
In ULIP since the amount is invested as well as used for cover, there is no way of determining the actual position either if it is a good investment or a good cover over a long term, besides the change in conditions, hidden clauses, etc. It is best to buy only pure insurance for specific needs and keep investments separate.
Re: Insurance and investment should be kept separate.
by katy on Nov 26, 2009 04:45 PM
ULIP has some illegal charges - Premium allocation charge - What is this charge - This no company explains - it varies from 20 % to 50 % of preium paid in the first year. All profits earned by life insurance companies come from this charge
Re: right observations......
by vadlamudi srinivas on Nov 25, 2009 04:50 PM
Please avoid ULIPs until the upfront Charges come down heavily, the agents are earning FAST money at once and the policy of the investor goes down to history. This kind of behaviour with ULIPs should change. Even Mutual Funds are having hidden charges, but it is still having the liquidity option anytime if you do not like , you can come out but ULIPs really all features are rigid for the investor.
Re: right observations......
by urmila gupta on Nov 25, 2009 09:53 AM
One just cant write about ULIPs with closed mind 5lacs broken into 4 is always better in long run from running the policies point of view. One may find it difficult at times to pay 5 lacs but can pay 2 or 3 1.25lacs. He is not looser here. Why crib on earnings of others without knowing well about something
Re: Re: right observations......
by Partha Datta on Nov 25, 2009 10:04 AM
My thoughts...dont venture into ULIPs....you will lose so much money on your initial charges, that you would rue later. Indeed if you make 10% CAGR on your money for 10 years, you actually just make a tad above 8% because of charges etc. Only benefits according to me are an impressive number of switches allowed from debt to equity and vice-versa and of course the tax exemption for your accumulated funds at end of period. But then again, if you are talking about 8% CAGR and tax exemption, won't just PPF be a good bet?
Re: Re: right observations......
by Ajay Narang on Nov 25, 2009 10:43 AM
I endorse what you are saying.... Financial goals are different and therefore the instruments to meet these goals can't be one... So comparison of MF and ULIPs is absurd. One imp factor everyone forgets while comparing these two is what a ULIP can provide a MF can't i.e. risk cover.. I can bet a ULIP scores much better when compared with Term Assurance MF when taken for a term 10 years or above... And obviously Life Insurance is never bought less than 10 Years : )
Re: Re: Re: right observations......
by kiran kumar on Nov 25, 2009 10:37 AM
The one lakh is for the premium part. Thats why they offer insurance. Agree with you that, one has to do their math right and compare ULIP with MF Term insurance combination before venturing into ULIPs
Re: Re: right observations......
by Subhayan Dutta on Nov 26, 2009 09:35 AM
Umm I didn't get you here. Why don't you divide your money and pay part of it for term insurance and the rest to good MFs? I am pretty sure you will end up with much more than a good ULIP plan. Also you can come out of MF anytime, which is not applicable for Ulips. But again if you like distributing money to people whom you do not know, who am I to pass a comment?
Re: right observations......
by Niraj Kumar on Nov 25, 2009 10:12 AM
Based on my personal investment experience so far ULIP is better than MFs. If you look at total charges in Mfs fund irrespective of what anybody has to say 5-6% of investor money even MFs charges and most of the time then even underperform the sensex. This is also true for so called popular funds which advertise claiming their outperformance. If you look at indian market from last 10 years money should have grown anyway around 6 times because overall market has grown that much. Then big Mfs houses also indulge in manipulating market during peak time or when sip is due to cheat common investor. Also in long run you can not rely on fund managers because in his personal interest he can invest your money in poor companies in return of his personal gain
Re: Re: right observations......
by Atanu Chatterjee on Nov 26, 2009 06:52 PM
If a MF underperforms, one can switch to another MF. And under-performance happens even in ULIPs. And fund managers investing for personal gains!!! its laughable. The fund manager needs to follow the policy & rules of the fund house. And even if i accept that fund manager has some vested interest, how is it different in ULIPs? In ULIPs also theres a fund manager who manages the fund allocation??
Re: right observations......
by kiran kumar on Nov 25, 2009 10:10 AM
ULIP is not a base investment instrument by itself. It combines the features of Insurance and Mutual fund. Subscribing into ULIP cannot be considered a way of diversification without alternatives. One can always purchase insurance, tax saving deposits and ELSS mutual funds in appropriate ratio to achive same kind of diversification and tax benefits. This will also avoid the investor being bound to one ULIP provider even after the terms and conditions change.
