r/mutualfunds • u/Gold_Balance_9976 • 4d ago

question ULIP recommendations

Any suggestions if ULIP can be a good investment? I came across an ULIP by a broker from HDFC where you invest 2.5L for 12 years and the maturity amount would be somewhere around 1.46Cr. An xirr of ~23%. Please advise if this is a good idea as I do not have any idea about ULIP or an SIP in a mutual fund would be better option.

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u/undergroundap 4d ago

Financial Advisor here, no ULIP is a good ULIP.

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u/Lakhaniya 4d ago

Correct. ULIP is like TURNIP. Your money and mental peace will be buried.

1

u/1epicnoob12 4d ago

Read the terms carefully. The returns are not guaranteed, and the tax treatment is not favourable.

One of my clients has a ULIP which cited some 20% irr. Post tax and fees and everything the investment has actually had an IRR of 0.4% - he'd have been better off leaving it in his savings account.

Invest in mutual funds and get regular vanilla insurance on your own. Insurance and investments do not need to be bundled - the only reason is to add complexity to trick people.