The returns that reflect in mutual funds are after the expense ratio and is realisable in the hand of the investor
It is difficult to compare the returns of ULIPs like we do for mutual funds because of differing charges, benchmarks and asset allocation patterns used by different insurers.
However, UTI ULIP is a mutual fund that falls in the debt oriented hybrid category. You can compare its returns to other similar MFs. You should note that the returns of mutual funds are after the expense ratio and are realisable in your hands should you exit.
On the other hand, HDFC Click 2 Invest is a ULIP offered by an insurer which offer insurance protection with investments. You can check the fund value of your plan on the insurer's website and based on your premiums and the premium paying term you can calculate your average return. You can probably compare this return to the returns on the index to get at the relative performance of your investment.
HDFC Click 2 Invest is a low cost ULIP which charges for mortality risk and fund management alone. Fund management charges are reasonable too at 1.35 per cent per annum, which are deducted before an investment is made. For exit, ULIPs have a 5 year lock in period and lack the liquidity of open end mutual funds. These are market linked plans and if the plan doesn't perform you will be able to switch to a better fund only after the five year lock in expires.
We don't recommend ULIPs because it is not advisable to mix insurance and investment. Term insurance is the best way to get a life cover. Equity is the best form of long-term investment, and mutual funds the easiest way to invest in equity.
Top 10 Tax Saver Mutual Funds to invest in India for 2016
Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund
2. Axis Tax Saver Fund
3. Franklin India TaxShield
4. ICICI Prudential Long Term Equity Fund
5. IDFC Tax Advantage (ELSS) Fund
6. Birla Sun Life Tax Relief 96
7. DSP BlackRock Tax Saver Fund
8. Reliance Tax Saver (ELSS) Fund
9. Religare Tax Plan
10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
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