i feel ulips are great products as far as returns go. over a longer horizon, the initial so-called higher charges will definitely even out and give u reasonable returns. what one must not ignore is the insurance aspect. keep adequate cover needed and invest regularly to reap the reward at the end of the term. it is definitely a no-no for short term. minimum 10 years should be the cutoff to expect reasonable returns.there is an intelligent article on rediff today which predicts how long term inv in stock market yields good.pl read it all.
RE:ULIPS- the brighter side
by Lakshminarayanan V on Mar 24, 2007 09:45 AM Permalink
Rightly Said - ULIPs are for long term. And I would say, no one has the discipline to stay long term as far as investments goes - then how do you expect people not to redeem their mutual investments with in 3 yrs or 5 yrs - And please from now on do not ever compare mutual funds & ULIPs - they are both completely different products. DO NOT look at returns of ULIPs in 2-3 year horizon - go for it for your long term dreams - as a disciplined savings. This sharp fall in the market weeks back resulted in around 35% shave-off in Mutual Fund NAVs where as ULIPs from LIC for instance has come down only by around 10%. So this goes to say it is better to diversify in all investments available - at the end of the day - Having a peaceful retired life & watching our children grow is what is needed
