comparison between mutual fund and insurance, which is a better option for investment? what are the returns that you get on insurance and mutual funds? and analysis of same.
2006-07-21 17:56:05 · 4 answers · asked by mango123 2 in Business & Finance ➔ Insurance
You don't go to a Dentist when you have chest pain. You will go to General physician or a Hear specialist.
While Insurance and Mutual Funds are part of financial products they server different purpose. A product supplied by a Insurance company primarily is an "insurance product" and masked and old to unwary customers as "investment product". While the previous statement is not 100% true, at least the products are not "true investment products" and insurance products bundled with investment.
If you are looking for a "pure investment" product go for mutual fund. If you need insurance coverage, it is better to buy it separately as the "investment products" sold by Insurance companies have high cost built into eroding your returns.
Please go through few articles related to this subject and avoid the insurance products for "investment".
Good luck.
2006-07-21 20:23:33 · answer #1 · answered by glib 3 · 0⤊ 0⤋
Most investment counselors will suggest that you live on 80% of your income, invest 20%. They suggest that you further break down that 20% by putting 10% of your income into a diversified stock portfolio or a mutual fund (which is basically a pre-diversified stock portfolio), 5% into life insurance (whole life, not term), and 5% into an easily accesible savings account. Each serves a different purpose. Life insurance and easy access savings are called "risk management". Life insurance takes care of "final affairs" risks, savings takes care of any loss of employment issues. Mutual funds go beyond risk management, they build opportunities for the future. Both are important in their own way.
2006-07-21 18:27:57 · answer #2 · answered by squirellywrath 4 · 0⤊ 0⤋
SWOT - Strength ,Weakness, Opps and threats.....in a mutual fund i think opps and threats are more as ur investing in shares as there is a risk occuring portfolio in it...but there is balanced one where in there is guranteed returns but at low rate not as much directly when u invest in shares. Insurance - where strength are weakness plays a role....strenght because its a back up for your financial which u provide by insuring certain things.....but weakness is the time limit as its takes years to this investment to get mature...so hope u got the difference
2006-07-21 18:02:40 · answer #3 · answered by hotgy4999 3 · 0⤊ 0⤋
A decent mutual fund will get you a better return on your dollar than insurance.
2006-07-22 05:38:50 · answer #4 · answered by Anonymous 7 · 0⤊ 0⤋