The document compares and contrasts unit-linked insurance plans (ULIPs) and mutual funds. Both are investment options for individual investors that provide equity, debt, and hybrid funds. They calculate returns based on net asset value and measure investments in units. However, ULIPs provide insurance coverage in addition to investment benefits, have lock-in periods of 5 years for tax benefits, and are regulated by IRDA. Mutual funds only offer tax benefits for equity funds under ELSS, may not have lock-in periods, have better liquidity than ULIPs, and are regulated by SEBI. The best option depends on an individual's purpose, risk tolerance, life stage, investment discipline, and market knowledge.

1. By:
Shreya Pathak
14125420192
12 A

2.  Both are investment options for individual
investors.
 Both provide the options of Equity, Debt and
Hybrid / Balanced fund option.
 NAV concept applies to both the options.
 Both investments are measured in terms of
units.

3. ULIP
Insurance Cover +
Investment Benefit
Premium = Premium
allocation charges +
mortality Charges+
fund management
charges
Mutual
funds
Investment Benefit
Investment =
Expenses +
Investment in Units

4. ULIP
Tax benefit
under Section
80C
Lock In period
Applicable – 5
years
Mutual
funds
Tax benefit
only under
ELSS for equity
funds
Lock In Period
– May or may
not be
applicable

5. ULIP
Poor Liquidity
in short term
Regulator -
IRDA
Mutual
funds
Better
Liquidity in
comparison to
ULIPs
Regulator -
SEBI

6. Purpose
Risk appetite
Stage of life
Investment Discipline
Market knowledge

7. THANK
YOU 