If we have the choice whether to use ULIP- Edelweiss Tokio Life Wealth Plus Vs ELSS tax fund for 15 Years span where depositor age is 42, is it worthwhile to invest Edelweiss Tokio Life Wealth Plus? Is it beneficial? Is it at per MF in point of return and expense?
How do you rate the plan Edelweiss Tokio Life Wealth Plus?
Bijit Guha Thakurta
First thing, even though they are showing the expenses equal to MF or ELSS Funds, but the biggest drawback is no track record of such funds. Also, the lock-in for 5 years (in case of ELSS it is just 3 years).
Also, in case of ELSS, if you invest in DIRECT funds, then the cost is further get reduced. If the fund is not performing in this ULIP, then you have no option to move out of it. You can only opt within the limited choices provided by the insurer.
However, if the same happen with ELSS, then you have various options to move to other funds freely.
Hence, never combine insurance with investment and totally avoid such junks.