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4 reason why ulips are best?
Insurance cover plus savings, Multiple investment options,
Flexibility, Works like an SIP
SIP- is systematic investment planning that is in MUTUAL FUNDS
and ULIP is Unit LinkedInsurance Policies
A unit-linked insurance plan (ULIP) is a type of life insurance
where the cash value of a policyvaries according to the current net
asset value of the underlying investment assets. It allows
protection and flexibility in investment, which are not present
in other types of life insurancesuch as whole life policies . The
premium paid is used to purchase units in investment assetschosen
by the policyholder.
In India investments in ULIP are covered under Section 80C of IT
Act. However, the concept of having an investment e governed by the
Insurance Regulatory and Development Authority (IRDA). [
mutual fund is used as a generic term for various types of
collective investmentvehicles available to the general public, such
as unit trusts , open-ended investmentcompanies ( OEICs ,
pronounced "oyks"), unitized insurance funds , UCITS (Undertakings
for Collective Investment in Transferable Securities,
pronounced"YOU-sits") and SICAVs (socit d'investissement capital
variable , pronounced
Advantages of mutual fundsMutual funds have advantages compared
to direct investing in individual securities .[3] Theseinclude:
Increased diversification Daily liquidity Professional
investment management Ability to participate in investments that
may be available only to larger investors Service and convenience
Government oversight Ease of comparison
[edit ] Disadvantages of mutual fundsMutual funds have
disadvantages as well, which include [4]: Fees Less control over
timing of recognition of gains Less predictable income No
opportunity to customize
The first mutual funds were established in Europe. One
researcher credits a Dutchmerchant with creating the first mutual
fund in 1774. [5] The first mutual fund outside
http://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Cash_valuehttp://en.wikipedia.org/wiki/Net_asset_valuehttp://en.wikipedia.org/wiki/Whole_life_policyhttp://en.wikipedia.org/wiki/Unitised_insurance_fundhttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authorityhttp://en.wikipedia.org/wiki/Unit_trusthttp://en.wikipedia.org/wiki/OEIChttp://en.wikipedia.org/wiki/Unitised_insurance_fundhttp://en.wikipedia.org/wiki/UCITShttp://en.wikipedia.org/wiki/SICAVhttp://en.wikipedia.org/w/index.php?title=Mutual_fund&action=edit§ion=3http://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Cash_valuehttp://en.wikipedia.org/wiki/Net_asset_valuehttp://en.wikipedia.org/wiki/Whole_life_policyhttp://en.wikipedia.org/wiki/Unitised_insurance_fundhttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authorityhttp://en.wikipedia.org/wiki/Unit_trusthttp://en.wikipedia.org/wiki/OEIChttp://en.wikipedia.org/wiki/Unitised_insurance_fundhttp://en.wikipedia.org/wiki/UCITShttp://en.wikipedia.org/wiki/SICAVhttp://en.wikipedia.org/w/index.php?title=Mutual_fund&action=edit§ion=3http://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Life_insurance
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the Netherlands was the Foreign & Colonial Government Trust,
which wasestablished in London in 1868. It is now the Foreign &
Colonial Investment Trust andtrades on the London stock
exchange
The first open-end mutual fund with redeemable shares, was
established on March
21, 1924. This fund, the Massachusetts Investors Trust, is now
part of the MFSfamily of funds . However, closed-end funds remained
more popular than open-endfunds throughout the 1920s. By 1929,
open-end funds accounted for only 5% of theindustry's $27 billion
in total assets
Types of mutual funds
Open-end funds, Closed-end funds, Unit investment trusts,
Exchange-traded funds
Hybrid fundsHybrid funds invest in both bonds and stocks or in
convertible securities. Balanced funds, assetallocation funds,
target date or target risk funds and lifecycle or lifestyle funds
are all types of hybrid funds.
A Systematic Investment Plan (SIP) is a vehicle offered by
mutual funds to help you saveregularly.
It is just like a recurring deposit with the post office or bank
where you put in a small amountevery month. The difference here is
that the amount is invested in a mutual fund.
The minimum amount to be invested can be as small as Rs 100 and
the frequency of investmentis usually monthly or quarterly.
Benefits of SIP
Regular saving habit, Protects you from timing the market, Tax
planning,
SIP lead to building wealth, Ignore the spreadsheets
http://en.wikipedia.org/wiki/Foreign_&_Colonial_Investment_Trusthttp://en.wikipedia.org/wiki/MFS_Investment_Managementhttp://en.wikipedia.org/wiki/MFS_Investment_Managementhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Post_officehttp://en.wikipedia.org/wiki/Post_officehttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Foreign_&_Colonial_Investment_Trusthttp://en.wikipedia.org/wiki/MFS_Investment_Managementhttp://en.wikipedia.org/wiki/MFS_Investment_Managementhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Post_officehttp://en.wikipedia.org/wiki/Bank
