ULIP is an insurance product that offers investors both insurance and investment under a single integrated plan. The policyholder can make use of the top-up facilities, switching between funds, reduce or increase the level of protection, additional riders and option to surrender.
Mutual Fund, on the other hand is an investment program that is funded by shareholders that trades in a diversified holding and is professionally managed. The investment risk is spreaded across different holdings. You can truly diversify your holdings with a small amount of money. Mutual Fund makes it easier for you to invest in stocks and bonds.
Mutual Funds provide a wider range of Products and more diversified benefits compared to ULIPs. So make your own Choice and get the best option for your Investment.