I have purchased a HDFC ULIP 2 days before with a monthly investment of ₹4000. I am 27 years old. As it has a surrender period of 30 days should I stay in it or surrender? I have to save tax also. So please give feedback for tax saving as well as good investment. I have a term plan with HDFC click to protect for ₹50 lakh.
- Siddhartha Dhal
We at Value Research don't recommend ULIPs because it is not advisable to mix up insurance and investments. You must still be in the free-look period for this plan during which you can surrender the plan without heavy charges. As you already have adequate term insurance, we would suggest you return this ULIP and invest the amount in tax saving mutual funds in a systematic manner to be able to earn higher returns. Some of the ELSS funds you can choose from are Axis Long Term Equity Fund, ICICI Prudential Tax Plan, SBI Magnum Taxgain Scheme and Reliance Tax Saver Fund.