I don’t generally write about ULIPs but once in a while it’s useful to see how bad these products have been. We wrote a long post about HDFC Crest which was being missold by bankers as if it was a fixed deposit. See: Don’t Buy HDFC Crest, It’s Not a Fixed Deposit Now there are many reasons why the ULIP is a bad product. Very little insurance Useless Guarantee High Costs (that are removed as fees in terms of number of units, thus making it non-transparent too!) Elusive Tax Benefits And Lastly Substandard returns compared to other instruments. But Just Compare Returns, No? Forget all the fees and all that. That’s highway robbery and terribly disgusting behaviour but what you can do, these are relationship managers with targets who don’t give a damn. One day, banks will be classified as brokers and we’ll get our day in court. Meanwhile, let’s see how bad the performance of a ULIP is.… (Read On…)
[via Capital MindCapital Mind]
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