What is bettar Policy or Mutual Funds ? In India which commpny's Policy u Prefer why? -

I just want to know about It bcoz i don't know anything about Policy Mutual Funds!! so plz give ditels. Mutual Fund means : A mutual fund is a professionally-managed form of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.In a mutual fund, the fund manager, who is also known as the portfolio manager, trades the fund's underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. Insurance is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. Insurer, in economics, is the company that sells the insurance. Insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. There are many type of insurance policy's and several kinds of mutual finds....and theres is a huge difference in investing objective in both these avenues.... People invest in insurance for long term(more than 10 years) this is against the risk of life...when something happens to the insurance investor the money with the bonus is returned...and if nothin happens the money will be returned only after the term(the maturity date).One cannot expect higher returns on insurance policy's...the return is less compared to the mutual funds and the risk is also very less when compared to that of the mutual funds... there are some policy's that give a higher rate of return they are called as ULIP's (Unit linked insurance plan).but again for this u have some 3 yrs period ..where u have to pay the money compulsorily and u cannot take the money till such time... I feel Mutual funds are best investment coz it reduces the rick of the investor by investing in diversified segments of the market and manage the portfolio effectively..they provide better returns with less costs...and the best part is the liquidity...u can take back the money when ever u need or when ever u want.. I hope i explained u...i wish u good luck Happy investing..!!!!!!! read economic times and money today;.. buy only term insurance... donot buy endowment policy.... buy index fund a type of mutual fund with minimum managment charges Policy means an insurance policy. Mutual funds is a vast subject. Mutual fund institutions collect money from public and invest it in prospective business (including shares). Then a percentage of profit is shared to the public. Thus they make profit from our money. Though they are investing our money, they won't let it lose, as they maintain a big establishment. They will make all the analysis before investing the money. There are unit linked insurance policies also. Like LIC's recent Future Plus, Money Plus, Market Plus etc. They act as insurance policy *** mutual fund. (The return will be lesser than mutual fund) I suggest you delink both and take pure risk coverage for insurance based on your liability and your family members independence i.e. if your out standing liability is 20 Lakhs and Your monthly income is Rs 30,000 then you need to take a risk coverage for a min of 50 Lakhs. Invest in Mutual Funds for returns based on your age factor. You can choose open ended schemes so that you can enter and exit any time and you can also monitor performance based on their ratings. If you want to invest only in ULIP then I suggest you take it from ICICI. Mutual funds are a pool of funds made by some people who have no knowledge of the market,and investment is made by expert people in the management of mutual funds.U may call the financial advisor of MNYL( Max New York Life Insurance Company Ltd).They are really experts in their field as compared to other companies.