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is mutual fund better than insurance for invesment?

Created by : Ajay Sharma, Procurment Executive at Hospitality Solutions, Gurgaon  | 01 25 2011 05:14:18 +0000
Keywords : is mutual fund better than insurance for invesment?
Activity:  284 views;  last activity : 04 16 2012 02:18:30 +0000
 
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mutual fund Vs insurance
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Both these instruments are designed to serve different purposes and are not comparable. A unit-linked plan from an insurance company is an insurance policy designed to pay a lump sum on maturity or on death if earlier. Premium paid under these plans is eligible for tax deduction under Section 88 of the Income Tax Act. On the other hand, mutual funds are investment avenues to participate in the growth of financial markets and do not provide any tax deduction. In this regard Insurance is better than Mutual funds...
By Niranjan Meena, Actuary Manager, LIC  01 28 2011 04:10:07 +0000
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yes mutual funds are better than ULIPS as cost structure is very low in case of mutual funds and returns are generally high. combination of mutual fund and term insurance always give you better return.
By Danish khan, Business Analyst, cognizant business consultancy  | 02 06 2011 19:56:57 +0000
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Comparison of mutual funds and insurance will be inappropriate for all types of investment needs. Over the past few years there's evidence of fetching higher returns from mutual funds than insurance. Insurance plan and mutual funds are not comparable in the first place.Insurance, whether it is unit-linked or otherwise, is not a pure savings product, which a mutual fund is. The primary objective of an insurance product is protection. Seeing an insurance policy as an investment option would not be good because insurance policies are just for providing security against loss arising due to happening of an uncertain event. Mutual funds and insurance are two opposite terms as far as risk is concerned. In mutual funds we risk our capital in the hope of handsome return but in insurance plans we cover the risk by paying premiums. So I can easily say that for investment purposes mutual fund will be better source for an investor.
By shailesh , B.B.A student, kumaun university, ssj campus almora  | 01 29 2011 03:09:02 +0000
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Mutual funds, bonds, and stocks are fantastic investments for the future, but life insurance investment rather terrific. Life insurance is somewhat an investment in your future and in your family’s future as well.
By RAJENDRA S. BAGHEL, Exec. Finance, Io-Global Services P Ltd  | 01 28 2011 11:39:35 +0000
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mutual fund is far better than insurance policy, if we consider it for long term.
By Dipankar Nandi, Sales/BD Manager, Tata AIG Life Insurance Company Limited  | 01 28 2011 10:51:05 +0000
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i thinks mutual fund is more profitable but risky.
By Ajay Sharma, Procurment Executive at Hospitality Solutions, Gurgaon  | 01 25 2011 05:14:18 +0000
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Both are not comparable. one is risk avoiding and other is risky. But as per the situation of general Public insurance is better than the mutual fund. For a common man it is very difficult to put his saving with mutual fund because in short term it is very risky as well as in long term it always doesn't meet the people expectations.
By Vinod kumar, MBA (Finance) student, Punjab College of Technical Education  | 02 07 2011 07:30:44 +0000
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I agree with Niranjan that the two  (2)  instruments are for specific group of investors.

In addition, investment in mutual funds are for the  "aggressive"  individuals who would like to take risks.  We all know that  "aggressive individuals"  usually reap handsome rewards in their risks taking ventures, if the investment result is good. If investment result in failure, naturally the  "aggressive individuals"  behaviour is one of reactionary, if not violent.  This group normally has excess funds at their disposals.

On the other hand, investment in insurance is for  "conservative individuals," who want protection in the occurrence of unwanted events or events that one has no control.  People in this group want financial security at some future time in their lives; thus they are more than willing to force-save a part of their income, with sure interests; their money remain intact.  Under normal circumstances, people in this group do not have excess funds at their disposals.

Investment in insurance provide some form of relief from worries against investment losses as in the case of investment in mutual fund. 
By ALFREDO N. RAMIREZ, Freelancer, Freelancer  | 02 06 2011 10:48:33 +0000
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i think insurance is better compare to mutula because it will not all the investor to touch the money for specific period of time which wil incres your saving and gets the lumpsum amout which is tax free
By mohammed minhajuddin, na  | 01 28 2011 16:53:57 +0000
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according to my view insurance is much better way of investment because it increases the compulsory saving.rather than mutule fund where you can redeem your investment any point of time
By mohammad arif, Sales Head, previz financial consultants Pvt Ltd.  | 01 28 2011 08:20:35 +0000
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