What advantage does LIC's Market Plus "without life cover" have over a mutual fund? -

I took LIC's Market Plus without life cover last year. Since this policy is without life cover, isn't it like a mutual fund? If it is like a mutual fund, why do they have so high premium allocation charge of 16.5%? Since, I am just 23 years old, I don't want to continue it for 20 years. So, if I surrender it after 3 years, I will be at loss, right? What is the best way to get out this policy with as little loss as possible? LIC market plus is a ULIP. ULIP is not an intelligent investment as there is lot of initial charge in form of premium allocation charge These are also not good in term less then 10 year. It is like a mutual fund but mutual fund dont have these much charges If it is without insurance , I suppose it may be a retirement plan. You should think about retirement from now (yes at age of 23 years) as there is no pension scheme in jobs. If you want to surrender it, read the policy document about surrender charges surrender it when market peaks after 3 years. I always feel that insurance is sold in india as investment person opting for it ignore the charges associated with it. I am big fan of mutual funds only due to charges associated in ULIPs first of all no mutual fund charges 16.5 %, the highest entry charge is 2.5 %. Market Plus without life cover is no good at all. If you want to invest only for three year i would suggest you invest in ELSS mutual funds which have a lock in period three years only and the normal appreciaitons in three years is about 80 to 100 %. lic market plus cannot give u this kind of profit. go for hdfc tax saver or birla tax saver. It is always advisable to seek information before investing, but you had already invested. You could have chosen as single premium policy and the charges are 3.3% and for top ups only 2.5 please visit the following link http://www.licindia.com/market_plus.html I suggest you to pay atleast for 3 years and surrender it when the market would be on its peak to get higer benefits. good luck pnkmurthy@yahoo.com http://www.geocities.com/pnkmurthy/lic.h...