Recently, my thoughts on ULIPs and why they should be avoided (even by HNIs) were published on Morningstar (India).
In this one, I try to clear the air about the recent change in taxation of maturity amount of ULIPs and why people should avoid such products. More so for HNIs who had till very recently started investing large amounts in ULIP due to their tax benefits (which now stand withdrawn).
So if you are invested or planning to invest in ULIP, then you might like to read this about Why ULIPs are not a great investment
Here is the link to the original article with the same title:
Why ULIPs are not a great investment?
ULIPs are hybrid products that combine insurance and investment in equity and debt. I have long maintained that we should not mix insurance with investments. Something that products like ULIP and traditional insurance plans like endowment and moneyback policies do.