Mutual funds VIS-à-VIS Ulips: An evaluation

ULIPs are largely sold as solely investment products. It has been strong positioning that a larger share of retail investors money enters the market through ULIPs than through pure investment products like mutual funds. Mutual Fund is an investment vehicle which collects the funds from small investor and invests in large Organizations. ULIP distinguishes itself through the multiple benefits that it provides to the consumer. These are quite similar in terms of their structure and functioning. But they are different in terms investment, expenses ratio, risk and Return characteristics. The study made to evaluate the performance of both selected schemes of Mutual Funds and ULIPs in India. The study based on secondary data and covers a period of 5 years for evaluating the performance of the schemes. It concluded that Mutual Funds are given better opportunity to small investor in terms of return, low expenses ratio, lower the Risk and Volatility, return to variability and volatility compared to ULIPs. The Mutual fund Schemes and ULIPs can become a best investment alternative, provided, awareness is created among the investors.