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Mutual Funds Agents are everywhere nowadays wooing the potential investors, but we should analyse the mutual funds and don't go by the words of these agents.
Always check for the NAV and dividend difference because dividends in mutual funds is our own money and if the dividend rises then the NAV amount decreases by the same amount hence providing no net addition to our hard earned money. So always Have a look at difference between growth and dividend option in mutual funds.
I met with some agents who told that premium can be stopped after 3 years or 2.5 years, which is again a wrong representation and a possible trap. We can stop paying in ULIP schemes after 1 year and would not loose 100 percent of our money so keep in mind that the Mutual Funds agents which tell that we can stop paying premium after 3 years or so is a wrong point as ULIP premiums can be stopped even before 3 years, there is just lock in period of 3 years.
Check out the percentage returns of the mutual funds in last few year's and purchase only if the return is substantially more then the returns from the Stock markets. One should always remember that A simple thumb rule is that anything beyond bank FD returns will always carry some level of risk, other wise why will someone buy FD at all if they can get some guaranteed returns.
Always ask for IRR of the policy before getting one for you, Also dont fall to the agents who say that money will double in just 2 years or three years that is totally ridiculous and false. Mutual funds gives from 10 to 17 percent generally.
So concluding the post by saying that analyse the policy properly, you can google about the basics of ULIPs anytime and yell out at agent which tries to fool you in future HAPPY INVESTING!!!
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