Investment, Mutual Funds, ULIPS – The season of 80 C

#Fact: Insurance is not an investment: A good insurance policy is gold when it comes to risk

It’s the time of the financial year when the deceleration done by the employee need to be submitted under section 80 C .This is also the time when maximum ULIP policies are sold, mis-sold  and resold .  Let’s explore the reasons

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 is 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. Continue reading “Investment, Mutual Funds, ULIPS – The season of 80 C”