ULIPs vs Mutual Funds : Which is Better?
Mutual funds are trusts that pool money from many investors who share a common investment objective. The money is then invested in stocks, bonds, money market instruments or other securities depending on the investment mandate of the mutual fund scheme. A ULIP is a life insurance plan that offers the twin benefits of investment to fulfill your long-term financial goals, and a life cover` to financially protect your family in case of an untoward demise. ULIPs come with a built-in life insurance cover. Mutual Fund investors need to buy life insurance separately. ULIPs have a very low mortality cover which is insufficient for life insurance goals. Also they have higher charges than mutual funds.
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Disclaimer: These are not any recommendations for any funds or stocks and are meant only for educational purposes.
ULIPs vs Mutual Funds : Which is Better?
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