ULIP V/S Mutual Fund

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

1. It gives a life cover and also generate returns by investing
2. It generally has a lock-in period of 5 years
3. In case of death of policyholder, the family member is compensated with the amount of sum assured
4. No long term gain is applicable
5. Amount of upto INR 1.5 lakh can be claimed as deduction in year

Mutual Fund

1. It is purely investment product with no life cover
2. It is totally liquid and you can enter and exit as per your investment plan
3. In case of death of policyholder, the mutual fund investment is transferred to the nominee
4. Long term capital gains on gains of over 1 lakh
5. 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.