What is mean by ULIP & SIP, What is Mean by Mutual Funds., I?

Question

I am interested to invest if i get detail information about this....

Answer 1

Unit Linked Insurance Plan is for those who want to have both insurance while simultaneously expecting some returns from the stock market.Some portion of the amount that you pay as premium will go towards insurance coverage and the remaining will be invested stocks where the probability of returns high in the long run.These are offered by insurane companies and the funds will be managed by the fund managers appointed by them.


SIP or Systematic Investment Plans are for those who can commit some amount regularly for a certain period, they say 6 months is the minimum.The money collected will be invested in the stocks and /or debt markets.You will be given an option to choose a date, say 5th or 10th or 20th of every month, and you will be allotted units of the scheme you have choosen at their NAV(net asset value) on that choosen date.If the markets are weak on that particular date you will be allotted more units as the NAVs will fall, and if they go up,you will be allotted lesser units, for the fixed amount that you pay them every month.The importance of SIPs comes from the fact that it is impossible to time the markets i.e entry and exit levels can never be timed.So this way you can get to average your investment tiding over the uncertanities and fluctuations that occur regularly in the markets.You will also be forced to save some amount every month this way as you have to give pre-dated checks for the duration of your commitment and you have to honour them.In a way it will be good that we make a habit of saving.They may or may not yield good returns in the short term of 6 months to 1 year.But,if one can have a long term view, say, a minimum of 5 years, there is every chance of fine returns which beat inflation.


Mutual Funds are funds run by asset management companies which collect money from the individual investors,corporates,trusts and institutions and manage the money on behalf of them by investing in stocks,bonds etc.For this service and the administrative and marketing expenses they incur, they charge load and/ or exit fees as a percentage of the NAV.

Answer 2

Im forgetting full form of ULIP but SIP is systemetic investment plan.
Mutual funds are companies which invest in stock mkt in bulk amount by taking small amounts from investors and invest in various scripts to avoid risk (seggregated risk) and maximise returns.

Answer 3

Mutual fund is an investment in risk if the company flourish u go up or go dwn as per the company. U hold the share of company for some specific years and if the money which u all invest is fruitful u get the return or loss.
Invest in Mutual fund. Life is a risk factor so why worry fr 2moro

Answer 4

ULIP : Unit Linked Insurance Plan
SIP : Systematic Investment Plan

Its not simple as you asked on Mutual Funds...
you better visit some mutual fund advisors..
or get an AMFI Book..
http://www.easymf.com

Answer 5

ULIP- unit linked investment plan
SIP - systematic invt plan

the 1st one is applicable in insurace sec.where u take a ULIP policy ..ur money will be invested in share mkt & u'll be getting insurance cover also.

the 2nd 1 is applicable in Mutual fund sec.where u invt ur money in share mkt like ULIP.the only difference is here u wont be gtg insurance cover.

In ulip they take around 40% of ur money in 1st year in the name of mgt charges which is a huge amt.in sip they take only 2.5%(max) but if u dont have any Life insurance u shud go got ulip...coz if life is safe everythg is safe.

Answer 6

Unit Linked Insurance Plan.
Systematic Investment Plan.
Mutual funds collect money from a lot of investors. Invest in different ways / diff. companies. Total income - expenses = profit. It is divided among investors. No hera pheri.

Answer 7

What Is Meant By Sip