MFs go one up on ULIPs

Dear All,
Recently, Mutual Funds like Reliance, Birla and DWS have started spicing up their SIPs with FREE Life Insurance Cover.
It is a known fact that ulips charge high premium on your investments ranging upto 20% of your invesments, whereas Most, if not all, mutual funds charge a maximum of only 2.5%., but still people blindly invest in Ulips and think twice about investing in Mutual Funds.
Both Mutual Funds as well as Ulips invest in Stock Markets and thus can't give different returns. The reason Mutual Funds beat ulips in returns is due to their low Charges.
Investors should definetely invest in Sips of Mutual Funds rather than Ulips. The most important reason because, returns from Ulips catch up with those of mutual funds only after approximately eight years! For mutual funds, the lower lock-in period of investment money and lesser loads, entry and exit, would enable them gain investor interest.
Even ValueResearch's respected CEO Dhirendra Kumar is of the opinion that the SIPs with Free Life Insurance is an excellent value-added benefit.
Go all for it.
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Srikanth Shankar Matrubai.