This blog will cover the difference between Mutual fund & ULIP as two different financial products. Find the brief comparative analysis of ULIP & Mutual Fund below:
ULIP
- It gives a life cover and also generate returns by investing
- It generally has a lock-in period of 5 years
- In case of death of policyholder, the family member is compensated with the amount of sum assured
- No long term gain is applicable
- Amount of upto INR 1.5 lakh can be claimed as deduction in year
Mutual Fund
- It is purely investment product with no life cover
- It is totally liquid and you can enter and exit as per your investment plan
- In case of death of policyholder, the mutual fund investment is transferred to the nominee
- Long term capital gains on gains of over 1 lakh
- Amount of upto INR 1.5 lakh can be claimed as deduction in year but only for ELSS
Now that you briefly know the comparison between ULIP & Mutual Fund. I will deep into various aspects of it so that you can understand these financial services in detail & make a better financial decision.