Well depends on where you sit….

Let me tell you what the ‘new’ Online Ulip sales brigade was trying to tell me…..

1. Sir there is a small upfront charge – spread over a long time it does not matter.

Me: 0 vs anything. I do think ‘zero’ is smaller, I would stay there.

Salesman: The amc charges are ONLY 1.35% p.a vs 2.5% for a multi cap or large cap mutual fund

Me: What have you been smoking? I have ETF of Hdfc sensex and the amc charges are 0.05% p.a. So mathematically I am right.

SMan: Sir the switches are tax free – this is not available in mutual fund

Me: True, I am a small investor I prefer investing Rs. 25000 pm in an equity fund and Rs. 12500 per month in PPF

Sman: You have still not answered my question of switching

Me: I am dumb. I do not switch, so this is not applicable to me. To those to whom it matters, they can consider.

Sman: I am sure you have NO answer to this. Ulip is taxfree. MF is taxable.

Me: Are you telling me that Ulip will be tax free for the next 30 years? And by the way I can invest Rs. 25000 a month i.e. Rs. 3L per annum. In about 3 years time I will withdraw Rs. 1L (tax free profit) and put it back…for the next 25 years. This will keep my product tax free. Little laborious, but tax free for sure.

SMan: Sir this combines life insurance. Oops I forgot I have enough cheap term life insurance. Max was cheaper than your company when I compared term insurance. I just spoke to Max and they assured me that my wife will get the claim. Or I will become a ghost and chase Abhinav Rahul and Manik Nangia. They are surely scared of ghosts – I just found out. So please do not give me this gyaan about your company being more reputed. In my books you are not.

Sman: Sir I need to make a living.

Me: Now that is a great argument. I do not have an answer. My bias stays.