In India for investment is ULIP better or mutual funds?

in India both MF and ULIP are doing well.
which is the better is to be decided according to individual. if you have adequate life insurance cover already, then MF is better for it does not have any addl charges like mortality charges. if you don't have adequate life insurance coverage, then Ulip is the best, since it contains life coverage, minimum sum assured.
consider this factors, and decide your self which is better for you.

I will start the comparing in a different way.. my point is "When to choose investing in ULIP??".

In short, ULIP = Insurance + Mutual Fund

1. If you don't need insurance, ULIP is not the best bet
2. If you need insurance and want to invest in mutual fund kind of instruments, ULIP is the BEST bet
3. ULIPs are hybrid products. that means, they have insurance and investment component
4. ULIPs offer insurance at a very cheaper rate than term insurance, as others say, I don't agree to the point that term insurance + mutual fund is better.. I don't agree. you can compare for yourself.
5. In ULIP, you can switch between Equity fund to Debt fund and vice versa without any entry/exit charges but you can't do that in Mutual funds. in MFs, there will be entry/exit charges if you do that
6. You have to invest for atleast 3 years in ULIP, but MFs are not like that
7. ULIPs are eligible for Section 80C tax rebate. MFs are not (except tax saving MFs)
8. ULIPs have lock-in period of 3 years where as MFs are not (except tax saving MFs)
9. Returns on ULIPs are not taxable, but returns on MFs are taxable if you withdraw within 1 year
10. You can invest surplus amount in ULIP with minimal entry load or charge, where as there is nothing like surplus in MFs.. in MFs everything is considered as plain investment with same charge
11. ULIPs may or may not disclose the holding portfolio but mutual funds have to disclose where they are investing
12. ULIPs generally have low expense ratio than MFs
13. ULIPs have additional charges on insurance where as MFs doesn't have any insurance component
14. ULIPs have additional charges called "Allocation charges".

So, choose wisely, invest wisely. Bottom line is,

"If you want some insurance at cheaper price and also want to investment in mutual funds, ULIPs are the best instruments to invest in"
if you want to know which ULIP is better, feel free to contact me. I can able to sent detailed comparisons which I gathered during my investment.

my mail ID is
devaraj0910@yahoo.com

have a fruitful investment.

Mutual Funds hands down

if this is just for investment mutual funds is any day better....but it depends upon ur personal invest portfolio

Both the investments are in two different lines. It depends on you in which stream you wants to invest. ULIP is limited and is on Unit Linked Plan for which you get income tax benefit. The return is fixed. Mutual Fund can be invested in Debt or Equity schemes and the return in not certain.

Neither.

With a little sensible selection of scrips, one can reap atleast double the returns in equity by oneself than depending on these platforms (ULIP & MFs) to perform for you, with a time horizen of 1 year.

Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms of their structure and functioning. As is the case with mutual funds, investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.

Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance component.

However it should not be construed that barring the insurance element there is nothing differentiating mutual funds from ULIPs.

Visit he following link, which gives a very good comaprison betwween the two.

http://in.rediff.com/money/2005/oct/15perfin.htm

http://sify.com/news/thethursdayinterview/fullstory.php?id=14195072

If you ask me, MF oveR ULIP

I would recommend Fidelity, or SBI or Reliance MF. You can also subscribe to JP Morgan (new fund) or AIG

(I am not connected to any of these guys, nor do I sell MF - I am an investor)

Mutual funds are better then Unit linked Insurance Planes, You can en cash the mutual funds if the price is up, but in ULIP you are tied up and you can do nothing but wait for the value to rise, which happen only after long time, decide you want long time or short time plane

Mutual Funds are better than ULIP. This is because ULIP is an insurance product and hence charges that are deducted are very high. So in case of ULIP, only a portion of premium goes towards investment while in case of mutual funds charges are very low.

If you are looking for an insurance cover plus investment product then take a term insurance and invest rest of the money in mutual fund.

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