Stocks and Investing Stocks and Investing
Tue, December 17, 2024
Mon, December 16, 2024
Sun, December 15, 2024
Sat, December 14, 2024
[ Sat, Dec 14th 2024 ] - Yahoo Finance
10 Top Stocks to Buy in 2025
Fri, December 13, 2024
[ Fri, Dec 13th 2024 ] - CNBC
The best annuity companies of 2025
Thu, December 12, 2024
Wed, December 11, 2024
[ Wed, Dec 11th 2024 ] - Forbes
6 Best Value Stocks To Buy In 2025

How ULIPs are different from MFs


//stocks-investing.news-articles.net/content/2024/12/13/how-ulips-are-different-from-mfs.html
Published in Stocks and Investing on Friday, December 13th 2024 at 10:41 GMT by Business Line   Print publication without navigation

  • Mutual funds invest in financial assets with strict SEBI norms, transparent disclosures, and standardised fees, making them ideal for focused investing. Unit Linked Insurance Plans (ULIPs) combine investments with life insurance,

The article from The Hindu Business Line discusses the differences between Unit Linked Insurance Plans (ULIPs) and Mutual Funds (MFs). ULIPs combine insurance and investment, allowing policyholders to invest in various funds while also providing life insurance coverage. A portion of the premium goes towards insurance, and the rest is invested in equity, debt, or balanced funds. They offer flexibility in switching between funds, tax benefits under Section 80C, and the maturity amount is tax-free if the premium does not exceed certain limits. On the other hand, Mutual Funds are purely investment vehicles without an insurance component, focusing solely on wealth creation through diversified investments in stocks, bonds, or other securities. MFs offer various schemes like equity, debt, or hybrid funds, with returns linked to market performance. They do not provide life insurance but can offer tax benefits on certain types of funds like ELSS. The key distinctions lie in ULIPs' dual benefit of insurance and investment, lock-in periods, and charges, whereas MFs provide more liquidity, lower costs, and a broader range of investment options without the insurance aspect.

Read the Full Business Line Article at:
[ https://www.thehindubusinessline.com/portfolio/personal-finance/how-ulips-are-different-from-mfs/article68981217.ece ]

Publication Contributing Sources