As we was talking about ULIP,now this is one more post on ULIP.There are some good article available if you want to know more about ULIP then you can read next article.
What is ULIP
Read before buy ULIP
Mutual fund vs ULIP
Today I am showing some negative fact of ULIP, If we want to make money then we need to take some risk but there are some hidden factor of ULIP.Before investing investor must know about the hidden field of scheme.
This are some hidden factor or disadvantage of ULIP
- It is not a full insurance, remember in life that insurance is not an investment.If you want to make money then invest money but it is difficult to earn money using insurance.If you want to earn more then Keep your investment and insurance separate in life.
- Charges are high, In ULIP you have to pay high charges so it is another disadvantage.
- Investment track record is not fine : While most insurance companies have come into India post 2000, how well can they handle money while investing in markets is something to be seen over a long term period. Not to undermine their potential, but it would be difficult to convince myself to give my money to somebody who is new to me rather than someone(Mutual fund companies), who has been in this business for 10-20 yrs in India and has demonstrated the capability to give consistent returns.
- Before investing in ULIP compare it with different insurance companies.
In ULIP track record is not fine , and companies can change rules time by time. You will earn from ULIP if you keep your investment for 10-15 year but this is also not guaranteed.
Means ULIP work for long term so if you are thinking for short term profit then don’t invest in ULIP. One more point if you are investing in share market using ULIP then you are on wrong way just use mutual fund SIP for investing in share market.
For more detail Read advantage of SIP.
So it is not an issue profit and loss are available every where at same time. Every coin has two faces. It is about your need. . So identify your needs with a financial planner and then pick the product suitable for you.
This are top 5 stock at this time you must buy.
Top 5 stock buy for 2-3 years
Read treading rules before investing.
Suggested reading
- How to save petrol
- Post Office FD v/s Mutual Fund
- Should you invest at this level
- Advantage of financial planing
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Do not forgot to read Rules of Success.
