Deductions to the tune of 30% in ULIPS means you start about 2 years behind vis-a-vis ELSS making ULIP unattractive to start with. Dont know why IRDA which is there to safeguard investors interest allows it.
RE:Ulips Vs ELSS
by Lakshminarayanan V on Feb 15, 2007 07:35 AM Permalink
It is not that way, Mr. ATUL - Please understand that ULIPs are destined to be long term Investments - so over a period of time, the initial loading fees gets negated & averages out to be around 4-5% every year, which is nominal. The high fromt end charges on ULIPs is to make sure people don't with draw the amount after 3 years lock-in period gets over & to promote long term savings.
