Due to the popularity of Index Funds or Mutual Funds, insurance companies are launching ULIP Index Funds. Why you must NOT invest? What is the catch here?
These insurance firms mainly focus on small-cap and mid-cap sectors, driven by the outstanding recent performance in both market segments.
Max Life recently introduced the Midcap Momentum Index Fund, Max Life Nifty Smallcap Quality Index Fund, and now PNB MetLife has taken it a step further with the launch of PNB MetLife Small Cap Fund (ACTIVE FUND). The names of these funds may lead new investors to mistakenly believe they are investing in Index Funds or Mutual Funds, but in reality, all of them are ULIPs.
Life Insurance companies usually introduce ULIP plans rather than mutual funds for their product offerings. As a result, when you decide to invest in these products, you indirectly cover the cost of life insurance coverage and ULIP expenses. These plans come with ULIP features, but not the features typically associated with…