Dear Sir,
My personal banker advise to invest in HDFC pro growth plus plan instead of standard mutual fund.
Some benefits explained to me is as follows:
- Comes under 80C tax saving
- Different options for investment like mutual fund, Equity,Debt, Balance and bonds.
- Returns are also non-taxable
- Death insurance
- min. locking period 5 years
- min. value of investment is 25K
1 Answers
Hi,
HDFC pro growth plus is an Unit Linked Insurance plan.
The premium you pay to this plan is divided in to two portions, a portion of it is invested in the Fund chosen by you (returns and risk may vary depending on the type of fund option you opt for..) and the remaining portion of the premium is used to get you Life cover (towards mortality charges).
The key point here is, the part of premium towards investment is not invested entirely, the insurer may deduct lot of charges like Admin fee, marketing expenses, fund management fee, etc and then invests the net premium.
Generally these charges are higher than the charges applicable on Mutual Funds.
Also, your banker may get higher commission on this product than on mutual fund schemes.
Personally, I prefer investing in Mutual funds schemes to ULIPs.
If your investment horizon is long-term say 5+ years, and one of your investment objectives is Tax Saving, you may consider ELSS Tax saving mutual funds.
In case, your requirement is getting adequately covered + tax saving then you may opt for Term insurance plan.
Suggested readings :
https://www.relakhs.com/best-elss-funds-2017-2018/
https://www.relakhs.com/best-online-term-insurance-plans-india/
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