ULIPs vs Mutual Funds: Which One Should You Choose ?

Introduction

Both ULIPs (Unit Linked Insurance Plans) and Mutual Funds help you grow wealth, but they serve different goals. Choosing the right one depends on your financial objectives.

ULIPs

• Combines insurance + investment

• Lock-in period of 5 years

• Tax exemption under Section 80C

• Provides life cover

Mutual Funds

• Pure investment product

• Highly liquid

• Lower charges compared to ULIPs

• Suited for wealth creation

When to Choose What?

• Choose ULIPs if you need both protection & long-term investment.

• Choose Mutual Funds if your focus is high returns and flexible investing.

Conclusion

Both tools have their advantages, but your financial goals and risk appetite should guide your decision.

---