How to compare / evaluate various Ulips?
Comparison between various Ulips can be made based on two broad parameters. First is cost or internal rate of return (IRR) and second criteria is the fund performance as depicted by actual gross returns (growth in NAV over a period of time) being generated by various funds of Ulips. Finally, the best ULIP is one with the lowest cost structure and highest relative returns. However, while making comparison we’ve to ensure apple-to- apple comparison. Put simply, Type I Ulips have to be compared with other Type-I Ulips only and not Type II Ulips. Furthermore, while comparing two Ulips, fund options also need to be similar. An equity fund option of, say, Type II Ulip can’t be compared with debt fund option of another Type ULIP II ULIP.
