Are ULIPs really bad? A detailed analysis

[HumorSimpson]

Plz reduce 5% in every ulip Premium which u pay by credit card and earn reward or cashback. That 5% can be further invested in mf. Now calculate.

5% of cc may not stay forever and moreover not everyone can get hands on those Prem cards . Anyways let's see his analysis on that too.

 

[shashank08]

Plz reduce 5% in every ulip Premium which u pay by credit card and earn reward or cashback. That 5% can be further invested in mf.
Still ULIP is lower but if any1 have cc with better rewards then it will be beneficial

that 5% or 18% is person specific.. not everyone have the CCs which can give rewards.
My analysis is in general terms thats why I didnt consider tax harvesting on MFs which will have no tax up to 1.25L of the capital gains per year.

 

[drvirag]

that 5% or 18% is person specific.. not everyone have the CCs which can give rewards.
My analysis is in general terms thats why I didnt consider tax harvesting on MFs which will have no tax up to 1.25L of the capital gains per year.

Yes ur analysis is perfect. People can change it according to benefits they get from every source.
U saved my time buddy. I was thinking to compare it from many days

 

[Hemang]

Sau baat ki ek baat hai, jis chiz me consumer ka fayda hota hai directly in shorter or even longer horizon me, unme se koi bhi chiz banks, mutual fund promote nahi karte hain.
They always promote what benefits them directly or indirectly in longer horizon.

Life insurers paid Rs. 60296 crore in commission in FY 2025 - Cafemutual.com

LIC India, HDFC Life, and ICICI Prudential Life incurred the highest commission expenses last financial year.

cafemutual.com

When i got my first stipend in PGI, i went to sbi bank to open PPF, they constantly tortured me for Tax saver FD, ULIPs for 15 minutes, till then they did not gave me the ppf account opening forms. They never push for PPFs.

 

[HumorSimpson]

When i got my first stipend in PGI, i went to sbi bank to open PPF, they constantly tortured me for Tax saver FD, ULIPs for 15 minutes, till then they did not gave me the ppf account opening forms. They never push for PPFs.

Someone here rightly said ULIP means U Loss I Profit for banks

 

[m4b]

Brother is a certified yapper! It's like justifying sun rises from West. Firstly, I don't think anyone thinking of getting term insurance when you are on door of death counting your last few years. It's better to keep FDs now. Sleeping on whole life over insurance and suddenly wakes up in the 50s to feel the need. Failing to plan an insurance isn't a justification for bad products. Even banks knew it so they change names from ULIP to something Smart Protect Super Max Pro so that "Customer ko batli me utara jaye" They're now even offering Premium CCs against ULIPs...lol. I don't see it happening with term insurance. You can wait for 15 years for ULIP but can't for better MF returns ?

Bro has been yapping for more than a here about ULIP on TF. His argument are childish everytime. I said it before it’s fine you have taken Infinia against ULIP but don’t go and preach about how much you love ULIP and calling it as a diversification 🤣
His justifications are ridiculous.

 

[m4b]

Bro has been yapping for more than a here about ULIP on TF. His argument are childish everytime. I said it before it’s fine you have taken Infinia against ULIP but don’t go and preach about how much you love ULIP and calling it as a diversification 🤣
His justifications are ridiculous.

Bro would likely to preach investing in regular MF soon after taking Infinia Reserve, calling it another diversification.

 

[shashank08]

Plz reduce 5% in every ulip Premium which u pay by credit card and earn reward or cashback. That 5% can be further invested in mf.
Still ULIP is lower but if any1 have cc with better rewards then it will be beneficial.
Thanks for this excel. It will clear all doubts

5% of 2L = 10K
Invested every year for 10 years and then no further investment after 10 years but withdrawal hasn't been done.
One can get around 8.17L as final corpus for 10K.

Even after that MFs are better and if we give tax harvesting favor to MFs then MFs will become even more beautiful.
😉 😉

 

[m4b]

If you are rebalancing your portfolio in shorter term, that means you aint investing right. You aren’t Quant fund with high churn rate, you would get amazing return by switching to debt/equity time to time with ULIP. Your strategy sucks big time. You won’t get benefit with such rebalancing with in 15 years.

 

[Hemang]

Do we have a comprehensive guide for tax harvesting of stock or a mutual fund on TF community ?? I could not find one, we should request legends of our community to give some insights on this topic.

 

[shashank08]

Do we have a comprehensive guide for tax harvesting of stock or a mutual fund on TF community ?? I could not find one, we should request legends of our community to give some insights on this topic.

Tax harvesting is simple.
This is how I do..

Sell and buy for the equal amount same day in the same fund and scheme.. sell the units which are already 1 yr or more old.

Mf and stocks selling follow FIFO methodology..

Reach till 1.25L of capital gain and stop..

Thats it..

 

[Abhi5467]

Bro has been yapping for more than a here about ULIP on TF. His argument are childish everytime. I said it before it’s fine you have taken Infinia against ULIP but don’t go and preach about how much you love ULIP and calling it as a diversification 🤣
His justifications are ridiculous.

I wasn't prepared for someone defending ULIP on technofino which are notorious for mis-selling and poor returns. Even laziest FDs have more returns. Either he deliberately advising ULIP or an agent. There are thousands of videos on YouTube against ULIPs.

 

[hender]

5% of 2L = 10K
Invested every year for 10 years and then no further investment after 10 years but withdrawal hasn't been done.
One can get around 8.17L as final corpus for 10K.

Even after that MFs are better and if we give tax harvesting favor to MFs then MFs will become even more beautiful.
😉 😉

Shashank Bhai, open a different thread, or use any existing MF Thread, and guide this scheme thoroughly, as it will help many to achieve financial gains in long run.

 

[shashank08]

Tax harvesting is simple.
This is how I do..

Sell and buy for the equal amount same day in the same fund and scheme.. sell the units which are already 1 yr or more old.

Mf and stocks selling follow FIFO methodology..

Reach till 1.25L of capital gain and stop..

Thats it..

There was typo.. it should be FIFO.. corrected in original post

 

[shashank08]

Shashank Bhai, open a different thread, or use any existing MF Thread, and guide this scheme thoroughly, as it will help many to achieve financial gains in long run.

Bilkul nayi post banaate hai..

 

[BhaiyaJi]

I assumed 14% return in case of both ULIP

Is 14% possible in ULIPs?

 

[BhaiyaJi]

In the case of ULIPs, we are stuck for a very long time; we can't take breaks or reduce our investment size. In case of MFs we have full liberty.

Also tax free is now 2.5L so thats around 20-25K per month. For people looking for big corpus and good investment size its nothing. So I would say MFs win here.

 

[shashank08]

Is 14% possible in ULIPs?

Usually if you create a good MFs portfolio.. mix of large/flexi, mid and small then post tax return of MFs will always be 2-3% higher than max return you can get with ULIP.

Here I considered almost equivalent return for both ULIP and MFs..

Just for the comparison I considered 14% return for ULIP but you are right 14% long term returns in ULIPs are difficult to get but you can get it in MFs in a properly curated portfolio.

 

[BhaiyaJi]

Banks while selling show NAV growth rate hiding the fact that first the fund needs to grow by 5-6% to come at cost to cost for the investor because of falana dhimkana fees and charges.

 

[drvirag]

Usually if you create a good MFs portfolio.. mix of large/flexi, mid and small then post tax return of MFs will always be 2-3% higher than max return you can get with ULIP.

Here I considered almost equivalent return for both ULIP and MFs..

Just for the comparison I considered 14% return for ULIP but you are right 14% long term returns in ULIPs are difficult to get but you can get it in MFs in a properly curated portfolio.

Wo sab chodo bhai apna portfolio share kar do bus. Itni mehnat karne ki jarurat hi nhi kya le kitna le.