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MFs or ULIP |
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What is better for long term savings? |
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Re: MFs or ULIP |
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If you are having financial discipline, invest in mutual fund else ULIP is best. |
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Re: MFs or ULIP |
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Ram
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| 16 October 2008, 23:58:07 |
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INVEST IN MUTUAL FUNDS FOR A SHORT TERM BENEFIT (i.e. 5 to 6 years)
INVEST IN ULIPS FOR A LONG TERM BENEFIT (i.e. 10 to 20 years)
AS THE MUTUAL FUNDS ARE GOING TO BE MORE EXPENSIVE AFTER 8 YEARS THAN ULIPS. |
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Re: MFs or ULIP |
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I feel irrespective of the investment in MF or ULIP, it should be for a long term. Long term means 10 to 15 years. If discipline is not there, one can choose ULIP on account of regular premiums and will lapse if stopped. In mutual fund, one will be tempted to withdraw the same. Strictly speaking one should not mix insurance with investment. Both are independent to each other. |
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Re: MFs or ULIP |
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ULIP on long term wealth Creation (More than 10 years ). |
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Re: MFs or ULIP |
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FOR INVT PURPOSE WHY SHOULD U INVT IN ULIP, IN ULIP THERE IS LOTS OF CHARGS, EXP MORTALITY, FMC, UP FRONT NEARLY ABOUT 60% AND IT IS INSURANCE PRODUCT, IF U WANT TO INVT FOR GOOD RETURNS U HAVE TO INVT IN MUTUAL FUND THROUGH SIP AND REGULARLY MONITOR UR FUND PERFORMANCE.
I DON'T UNDT WHY PEOPLE ARE COMPARES MF AND ULIP. |
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Re: MFs or ULIP |
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Raju
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| 18 October 2008, 13:33:26 |
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First upon you must decide what yoy want to do? Investment or insurance. Decide you goal then think about investment. for long term MF and Ulip both are good. any body wants to take insurance he must take pure term insurance which he/she will get for very amout and rest amount invest in MF. Which will create very very good wealth with in 10/15 years. |
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Re: MFs or ULIP |
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Term insurance coupled with a disciplined SIP strategy on MFs for the long term is better. However I think investors need to really figure out if they are disciplined in their investment approach or not. Continuing SIPs through rough markets really needs discipline. We tend to judge MFs more frequently than insurance products.
There is a financial Planning module on the this site which might be of interest. It pretty much reiterates this fact. |
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Re: MFs or ULIP |
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Jeni
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| 18 October 2008, 16:53:59 |
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If you wanna do long term investments than ULIPS are the better option because you get insurance cover with the flavor of market, which can give you higher return in long term.
For short term MF are best. Always invest for long term because it helps you realise all your goals.
Start Early to Invest in Life and Give your Investment Proper Time.
ULIPS are much better than MF.
Thank You. |
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Re: MFs or ULIP |
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Pramod
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| 20 October 2008, 20:21:27 |
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Actullay, ULIP or tradinal policy is for being secured the future. But as far as the concern of investment MF is the best vechile. In ulip policy there are a huge amount deducated from the invested amount, it may be from 20% to 60% whereas in MF there is entry load of 2.5% normally. and in many cases there is no charge at all. so breakeven for the mutual fund invester get early than the person invested in ulip policy. In MF there are so many mutual funds offering the insurance with the investment.like sipinsure of reliance where they are not charging any extra amount. While securing the future through insurance it should not related with share market. |
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Re: MFs or ULIP |
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Dear,
MF is much better than ULIP. Go for term insurance and MF this will give you better return and better protection.
sachdevapk@gmail.com |
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Re: MFs or ULIP |
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Anil
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| 22 October 2008, 15:13:46 |
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The combination of Term Plan plus MF is good. But on a longer term horizon the charges on MF will be more, since they deduct charges as their per their corpus. On the other hand ULIP from a few Life Insurance companies are good and the charges will be deducted on ur fund value, also not all companies deduct upfront charges of 60%-70%. There are plans which have less charges. Still it entirely depends on how or what you give to an investor. As it is one has to sell itself and not the product. Cheers. |
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Re: MFs or ULIP |
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two in ones never work efficiantly better invest in mutualfunds for insurence needs go for term policies friend
aishwarya |
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Re: MFs or ULIP |
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two in ones never work efficiantly better invest in mutualfunds for insurence needs go for term policies friend
aishwarya |
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Re: MFs or ULIP |
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Mutual Funds are better than ULIP's of Insurance companies becoz of less entry load and no exit load,Liquidity and need based provided one is disciplined investor.Otherwise, ULIP of UTI Mutual Fund is much better than ULIP of insurance. |
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Re: MFs or ULIP |
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Amal
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| 23 October 2008, 07:53:58 |
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please please stop comparing products. The simple idea is set your objectives first, and then look to what allocable funds are available with you and how well you can deploy this surpluses.
So first come first put a long term plan in place and (frequently review it) then depending on your current financial and other financial and non financial impactS, look to allocate funds with the objective in mind.
I fully agree with a term + mf combi as it will be more efficient of the two. but all this after you have in place a plan which will help you tide thru the vagarities of life. money easily available in short term emergencies and wealth being created in the long term. all this without forgetting that insurance is a protection which you can never ignore starting from life-critical illness-disability- hospital benefits-and all the others that you would need if you are exposed to the risks in your life day in day out.
so sir there is no single product miricle yet created to answer all the questions of an individual. you will need to have a slew of products to adddress to your various needs. SO FRIEND WATCH OUT OF THE GUYS LOOKING TO CON YOU..................................!!!!!!!!!!!!!!!!!!! |
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Re: MFs or ULIP |
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When there is need for creation of wealth then it is better to look for a product which has less load and more benefits.The markeets can not be perdicted.Therefore it is always better to go for SIP with Mutual Fund and for other benefits like insurance and all one should look for product where one pays less and enjoys more benefits unlike paying more entry loads and dreaming for high returns after waiting for unlimited number of years. |
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Re: MFs or ULIP |
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Ram
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| 25 October 2008, 13:53:46 |
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WELL LET US UNDERSTAND LONG TERM SAVINGS ARE THE REAL BENEFITS AS EVERY ONE AGREES TO THIS POINT - NOW LET US UNDERSTAND THE RETURNS FROM ANY OF THE INVESTMENTS i.e. MF'S AND ULIPS - IN ORDER TO CALCULATE WITH A CONSERVATIVE RATE OF % (PERCENTAGE) THE EQUATION IS INVESTMENT + (PLUS) RETURN OF INVESTMENT - (MINUS) EXPENSES = PROFIT.
1) EXPENSES - ENTRY LOAD (MF's) / ALLOCATION CHARGES (ULIPS), FMC (FUND MANAGING CHARGES) CHARGES FOR BOTH MF'S AND ULIPS, ADMINISTRATION CHARGES (ULIPS), MORTALITY CHARGES (ULIPS), SERVICE TAX etc.& OTHER MANDATORY CHARGES LIKE STT AND NPA (NON PERFORMING ASSETS) OF THE COMPANY.
IF YOU CAN CALCULATE BY CONSIDERING THE ABOVE EXPENSES FOR ANY INVESTMENT YOU CAN UNDERSTAND WHICH INVESTMENT IS PROFITABLE. |
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Re: MFs or ULIP |
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It is acording to person need, if he is looking for short term i.e 4 to 5 years he should opt for M.F and term plan and if a person need arises after 7-8 year letter he should go for ulip. |
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Re: MFs or ULIP |
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VJ
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| 29 October 2008, 14:01:19 |
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What is best?
It depends upon the person's need and the objective.
If at all if one is going with ULIP the investor should Look following things
1) Allocation charges
2) Exit Clauses
3) Fund Management Charges
4) Track record of fund (Bear Phase returns -Bull Phase returns) |
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Re: MFs or ULIP |
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I think many might have not noticed that in Mutual Fund you do not have an option to switch to Debt fund or secured fund etc. wherein you can earn something even when the markets are down. Whereas in ULIP you have an option to switch to Debt, secured or balanced etc. to reduce the damage during bearish market.
However you should see those ULIPs which have less charges. |
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Re: MFs or ULIP |
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Mr. Suresh, Even in Mutual Fund you can switch to debt. Please read the offer documents before commenting blindly. |
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Re: MFs or ULIP |
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VJ
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| 01 November 2008, 10:22:05 |
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I agree with mr Rajeshrao there are facilitiest like Scheme transfer and if it is with in same AMC there is no entryload also |
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Re: MFs or ULIP |
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U first decide your financial goal confirmly, then it is better talk about ulips and mutual funds. Mutual funds are best vehicles for short as well as long term investments. While ULIPS are only concerned for long term only. If u invest through ULIPS u have to wait for liquidity where as in open ended mutual funds u can liquidate any time. For perfect financial planning contact me.
Moreshwar Joshi
Cell. No. 9372727013
email. mpjoshiindian@rediffmail.com, mpjoshiindian@gmail.com |
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Re: MFs or ULIP |
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One should keep His investment and insurance needs separate and not mix the both as it is done in ULIP. I would strongly suggest SIP in Mutual Funds for investment needs and a Term Insurance or an Endowment Plan in Insurance. ULIP is costlier than the combined of both. |
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Re: MFs or ULIP |
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Amal
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| 02 November 2008, 07:41:04 |
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I am looking at a lot of people having coloured goggles and the prespectives are similar to the hues and shades of the goggles they are wearing.
Friends investing is all about planning correctly, fitting all the components in the right amounts and execute the plan. the resultant goal is still awaited don't try to even predict it (anticipating for the correct out come of the plan yes very important or change with the changing times the most appropriate stance weighing all the options with a competant and knowledgeable person). So Insurance-cash-Fds-stocks-mutual funds et all each of the products are a part of the wholesome diet for a healthy financial planning.
Plan correctly, no ad hoc buying, sticking to the plan lots of conviction should be the mantra to get the perpetual bliss. Din and Noise only creates discomfort by adding to the chaos. |
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Re: MFs or ULIP |
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I know if you are investing in MF as an investment not for tax saving, yes you have an option to invest in liquid or Debt funds or even to switch it to some other fund. If you are investing for tax saving in any tax saver fund will you be able to switch it to any other liquid fund when markets are going down? Please let me know if options are there.. |
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Re: MFs or ULIP |
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Please dont mix Insurance with Investments.ULIP plan is designed for Insurance with Investment.If you want Insurance with Investment then go for ULIP.But remember,go for maximum insurance for the premium you are paying.Some insurance companies offer upto Rs.8,00,000 insurance cover with Rs.12000 annual premium for a 30 yr.healthy man.Invest for long term in ULIP.Dont afraid of mortality charges it will give you insurance but beware of allocation charges because it directly related to agents commission.Take maximum term so you will get insurance cover upto the end of term even if you stop paying premium/premium holiday.For pure investment purpose go for any investment vehicle which suits yor objective/need or for pure insurance purpose first of all calculate your insurance need & take a single term insurance policy which will cover all your insurance need. |
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Re: MFs or ULIP |
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VJ
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| 04 November 2008, 10:14:40 |
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thats the ideal scenario Mr Patil one should try to protect the bottom of pyramid of financial planning by buying good term insurance |
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Re: MFs or ULIP |
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Nawaab
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| 13 November 2008, 11:36:10 |
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I personally feel one has to understand what one wants, and then invest accordingly. In both cases little knowledge is dangerous. One should not confuse insurance with investment. We tend to mix the two. MFs are for investments and ULIP too are for the same to some extent. However you have to monitor both and in your own interest, like switching between protector and maximiser in ULIPs. It is better to be in MFs as then you have the ease and flexibility of pulling out from a bad performer and move to a good performer or from equity to debt, of course at some cost i.e. load depending on tenure of investment, this is not so easy with ULIP. The charges that are deducted in first three yr of investment are discouraging enough as you find your money in negative for some time. The periodicity with which MFs have to declare their investments is much higher than the ULIPs and thus MFs happen to be more transparent in respect of use of your money. MFs have different flavour for one to choose from in terms of stock market segment they invest in. It is just that we want our money to grow at a maddening pace without putting any effort from our side and get insurance cover too, it is not possible. One cannot be lazy about this, learn-monitor-earn, no pain no gain. |
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Re: MFs or ULIP |
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ULIP = MF NOT COMPARABLE
ULIP= BENIFITS OF STOCK MARKET+ LIFE INSURANCE COVER
MF= BENIFITS OF STOCK MARKET ONLY
SIP IS VERY GOOD
ULIP SINGLE PREMIUM INVESTMENT WAS NOT GOOD |
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Re: MFs or ULIP |
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Any investment whether ULIP or MF is good for long term. If one invest in MF in Bull Market, he will make good profit for short term, b'coz one has an option to redeem his units at any point of time. Incase of ULIP, one needs to surrender his policy, which is very expensive.
But if one invest for long term view, both ULIP and MF will do good due to professional management. |
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Re: MFs or ULIP |
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Raghu
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| 14 November 2008, 16:57:24 |
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FOR A SHORT TERM AND INVESTMENT PURPOSE GO FOR MUTUAL FUNDS OR
ONE CAN INVEST FOR LONG TERM INVESTMENT AND INSURANSE IN ULIPS |
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Re: MFs or ULIP |
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definitely mf.ulips are too costly.go for ulips if & only if insurance is required.suggestion:10%in pure insurance & 90%in mf. |
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Re: MFs or ULIP |
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Anil
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| 26 November 2008, 19:10:14 |
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Wow after reading all those posts from all you it was very enlightening and mind opener.
The person who posted this thread just asked one single question and we had different answers for him.. If he is an investor he might get confused as he got many versions. In the end he will not do anything till someone who is really close to him convinces him of buying what his/her advisor sells to him.
I still observe this many times when my clients ask too many questions and they get confused in what to do. Well i will add one more solution to the question asked by "Unsavvy".
Make a financial goal of yours for e.g that you will need money after X no. of years for education, marriage etc. and how much money you can put aside from your income for savings purpose.
Now first calculate your income annually and multiply it by 20. Now that is the amount of insurance your family needs to survive in case of your early death/ disability etc. But all cannot afford to have that huge amount of insurance (except for some) so at least take some percentage (depending on your ability to pay premium)and then upgrade, buy more when you start saving more.
Now divide your savings into 4-5 options-
1. Amount you can afford to pay premium for insurance till you are at certain age. Please do not buy a policy where your agent says "pay for 3 yrs then you can stop paying". That is the continued current MANTRA for selling ULIP's.If you're buying insurance think of long term and then buy. Short term investment are good for Mutual funds. Buy policy as per your need. Term, Endowment, ULIP are various options. Term is always good if you want big amount of insurance. The charges in endowment plans are hidden and in ULIP's it is transperent.(Long Term)
2. Invest in Mutual Fund diversified equity, debt/ liquid fund, FMP's. SIP / STP will be also a good option. (Short - Medium Term)
3. Invest a little amount in blue chip stocks. Please do not always try to time the market. Book profit on regular intervals and recycle that money into another market segement or buy different stock.(Medium - Long Term)
4. Buy Gold in dematized or in physical form as bullion. (Medium - Long Term)
5. Fix deposit (Short - Medium)
I think I covered enough ground to give you an idea how to go about saving money. Insurance and Tax plans in mutual fund will give you benefit for your tax planning as well.
Also do keep your self updated with happenings in the market via news/internet/t.v.
Cheerss. |
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