Anand Mohan Agarwal
CEO Samvardhan

Phone: +91 40 6546 2364; Mobile: +91 924 650 9367

Please open ULIPs_Vs_MFs_Analysis to view an illustration 

Columns A to O show the details of charges and projections for a ULIP.

To compare this with investment in Mutual Funds you need to go through Columns Q to W.
Col Q shows the amount of premium required for a Term Plan (pure risk cover) of Rs 96 lakhs. Get the quotations from all Insurance Companies by giving your Date of Birth, Death Benefit / Life Cover required and the Duration for which it is required. Use the lowest quote
Col R indicates the amount available for investing in MF. It is equal to the total amount you wish to invest minus the amount of premium for the Term Plan.
Col S calculates the entry load @ 2.5% of the amount in Col R
Col T shows the actual amount invested in the MF (Col R - Col S)
Col U calculates the Growth (assumed same @ 10% for ULIP and MF).
Col V calculates the Fund Management Charges (FMC) @ 2.25% of the average fund value for the year.
Col W shows the Amount Under Management (AUM) = Amount actually invested + Growth - FMC.

You can copy and paste the returns of any other ULIP offered by any other Insurance Company in Column P. You may draw the illustrations for any other ULIP by visiting the website of the Insurance Company and giving the same input parameters, viz.:

1. Your Age (actually, you should give your Date of Birth. Some Companies like LIC, ICICI etc calculate age nearer. Others calculate age last. So, if you are 35 years and 6 months old, the first set of Companies will calculate your age as 36; the rest will calculate it as 35 only.
2. The Amount of Premium you wish to pay
3. For how long
4. The life cover you wish to take.

Make sure the illustrations are generated assuming a 10% fund growth and are NET of all expenses. Just copy the "Account Values" generated and paste it in Column P.

You need to compare the figures in Columns L, P and W and then select the best option.

I help you in:
1. Investing in the option that gives you the maximum returns NET of all expenses assuming the funds are growing @ 10%. In case the funds give a higher or lower return, the returns will be proportionately higher or lower for all the funds.
2. Switching: When the NAVs go up, you should switch to a 0% Equity Fund and when they come down you should switch back to the 100% Equity Fund. By doing this you may add extra growth (of say 5+5=10%) every year. The cascading effect of this on your portfolio after 25 years could give you a few extra Crores. You may practice "Switching" in MFs too; but you will have to pay the Exit Load, 15% Short Term Capital Gains Tax (in case you are "Switching" in less than one year) and the 2.5% Entry Load every time you "Switch". You get four free switches in some good ULIPs. 

You can also see the effect of switching in worksheet #2 titled "Switching" and the effect of infaltion in worksheet #3 titled "Inflation".

If you wish to see the projections assuming the funds are growing @ 17%, type 17 in Cell U1

If you wish to see the difference Switching can make to your fund growth, type 10 in Cell K1

If you wish to change the entry load in MFs to zero, change the vlaue in Cell S1 to 0

If you wish to change the Fund Management Charges in Mutual Funds to any other value, change the vlaue in Cell V1

Only those who have attended my lectures can call me on ' 0 924 650 9367' to get their doubts cleared. Others will have to wait till they attend my lecture and then ask the questions.

If you can help in organizing a presentation in your office, you may visit

http://fitnessfundas.googlepages.com/publictymaterialforcorporate to download the publicty material.


If you can help in organizing a presentation in your residential area, you may visit

http://fitnessfundas.googlepages.com/publictymaterialforresidentialareas to download the publicity material.