A Study on Comparison between Mutual Funds and Unit Linked Insurance Plans with reference to South Gujarat Region in India

Ever expanding impact of economic liberalization, privatization and globalization; growing incomes, savings and investments by individuals to fulfil their future requirements through achieving higher returns; rising risk-return appetites. The evaluation of financial planning has been increased through decades. The saving objectives and source of information for investors advise the companies and individuals as to which is the most preferred investment avenue. A mutual fund is a type of professionally-managed type collective investment scheme that pools money from many investors. ULIP stands for Unit Linked Insurance Plan which combines the features of both insurance cover and investment opportunities under a single plan. Both ULIPs and mutual funds carry a certain element of risk in them that arise from investing. With this background this paper makes an earnest attempt to study the behaviour of the investors in the selection of these two investment vehicles in an Indian perspective by making a comparative study.