Is Life insurance better than SIP

[nishank]

Can anyone shed their ideas. As 5% will get back through Tata Neu and the fund performance is way high if i consider tax free returns

 

[magscas]

Can anyone shed their ideas. As 5% will get back through Tata Neu and the fund performance is way high if i consider tax free returns

Last 5 Years have been good for many funds. But if you see the last 1 year return for the same Tata AIA fund, it has been in the negative. Also, you also need to consider the fact that insurance firms charge higher fund management fees compared to mutual funds. If you want to know further details and a deepdive on insurance and alternative investment avenues, you can dm me. I am a financial and insurance advisor.

 

[nishank]

Bro I am also a Chartered Accountant. Posted this as thought someone can share their thoughts what would have been the return for same investment amount, period and class in mutual funds. I just don't wanted to deep dive

Last 5 Years have been good for many funds. But if you see the last 1 year return for the same Tata AIA fund, it has been in the negative. Also, you also need to consider the fact that insurance firms charge higher fund management fees compared to mutual funds. If you want to know further details and a deepdive on insurance and alternative investment avenues, you can dm me. I am a financial and insurance advisor.

 

[magscas]

Bro I am also a Chartered Accountant. Posted this as thought someone can share their thoughts what would have been the return for same investment amount, period and class in mutual funds. I just don't wanted to deep dive

If you consider say the mid cap category, the segment leader or the top 3 funds have given similar returns (30%+) for a 5 year period. Small cap segment leading fund has given 35%+ returns. Since the above table also includes sectoral fund, Infra MFs have given 37% returns on a 5 year period. But also to your point of CC rewards, Neucoins are capped at 2000 per month for insurance rewards. So that gives much less than 5% effective returns.

 

[nishank]

If you consider say the mid cap category, the segment leader or the top 3 funds have given similar returns (30%+) for a 5 year period. Small cap segment leading fund has given 35%+ returns. Since the above table also includes sectoral fund, Infra MFs have given 37% returns on a 5 year period. But also to your point of CC rewards, Neucoins are capped at 2000 per month for insurance rewards. So that gives much less than 5% effective returns.

Appreciate you analysis
Was thinking that credit card rewards could increase the returns but that is not the case

 

[magscas]

Appreciate you analysis
Was thinking that credit card rewards could increase the returns but that is not

Appreciate you analysis
Was thinking that credit card rewards could increase the returns but that is not the case

One more thing to consider is the taxation
LTCG exemption for equity MFs is only upto 1.25L per year but ULIP proceeds can be exempted upto 2.5L. So there could be some tax savings as well. So my answer is that depends. Frankly speaking, I'm surprised by the good performance of certain ULIP funds. Usually they are way behind in performance compared to MFs.