Thank you for your contribution and support for the financial well being of us.
Though I also believe and have been investing in mutual funds, term insurance all separately explored and selected by myself, I find it time taking and feel eased to have some investment (I am already doing SIPs and want to say keep 5000 per month) in a ULIP solely due to the tax considerations. In the light of recent tax implications and government supporting retirement oriented funds, insurance linked funds,insurance assuming all retirement oriented funds would also be made tax free returns in future, IS IT POSSIBLE WE CAN HAVE A FEW GOOD ULIPS OR A REVIEW ON THEM? (Goal is I keep investing at least 50000 yearly in it over 20-25 years and I will withdraw tax free amount at specific intervals every 5 years starting 10th year (starting withdrawal as 2 lakh and going at least to say 5 lakh at 20th year) and lumpsum at the end, insurance is not priority nor needed but due to tax implications, I want good performing ULIPs).
I am investing myself on various funds but still want this input, in case I feel a fund is good at least performing as well as a balanced fund, I may consider investing.
What about the liquidity and managing the asset allocation? ULIPs are like your marriage with them for long term. Also, taxation on equity MF will not affect that much when you look for long term.
I am already investing sufficient money (as per my planning) every year asset allocation done as per my goals and invested in insurance,MFs (spread across aggressive mostly, some balanced and a small amount in liquid fund), stocks and PPF.
The MFs and stocks part of mine is an analysis (to some extent well researched). I still feel I will try not to take money out of this hoping for greater returns the longer I invest. I feel happy when say a ULIP is beneficial to me as I feel I owe that money and feel like withdrawing as planned, whereas the MF and stocks investment to me is more like try not to withdraw unless your need demands or the market is at peak raising a bell to redeem some funds or stocks. Anyways, the 10% LTCG on equity/equity funds is not small for profit amount over a lakh. Also, the equity investments (apart from ELSS) are not tax exempted. I think I can invest some part in ULIP as part of balanced investment or a debt fund for long term per these considerations.