Comparison between mutual fund and ULIP plans?

While Mutual Funds have their advantages, ULIPs come with the benefit of Insurance cum investment. ULIP stands for UNIT LINKED INSURANCE PLAN. They are a combination of Insurance and Investment plan. You could start with a small investment. ULIPs give you the benefit of investment and an insurance policy together. They are good avenues to invest in.

A ULIP is nothing but Mutual Fund + Insurance. Apart from the fact that ULIPs provide Life Insurance, the working of a ULIP is very similar to how Mutual Funds work. They both invest in the Stock Market.