Author Topic: Mutual Fund or VUL? (Read 56391 times)

sardonyx · « **Reply #16 on:** Jul 17, 2007, 11:18 PM »

pero di ba, there's also such a thing as overinsuring oneself? if you invest the same amount in a mutual fund instead of investing it with VUL, mas malaki ang kikitain with the same amount of money even if VUL generates a higher yield. it's only 1-2% difference in yield. but since VUL is an insurance with an investment component, only a portion of your money is invested.

ekimonk · « **Reply #17 on:** Jul 19, 2007, 04:09 PM »

is VUL withdrawable or redeemable anytime like that of a mutual fund?

i bet if VUL is less risky and earns higher than a mutual fund.. it must be a lot less liquid

PMT Forum · « **Reply #17 on:** Jul 19, 2007, 04:09 PM »

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nailbiter · « **Reply #18 on:** Jul 19, 2007, 04:32 PM »

You can withdraw anytime din sa VUL but if you withdraw the entire fund value, then you'll be surrendering the policy. Option mo na yon. Sa Sun Life, may minimum withdrawal amount and one free partial withdrawal within a policy year. Succeeding withdrawals may charge na.

Less risky ba ang investment funds ng VUL? I don't really think so. They invest in the same instruments so they're subject to the same risks.

rainmen · « **Reply #19 on:** Jul 19, 2007, 10:48 PM »

i agree, very true

freedomfighter · « **Reply #20 on:** Jul 20, 2007, 09:15 PM »

sardonyx · « **Reply #21 on:** Jul 25, 2007, 01:43 PM »

if you have extra money, it's always good to have enough insurance. but if it's just enough to sustain you, make sure that you provide for your own current needs first. yun lang naman.

about mutual funds and VUL naman, if you want insurance, IMO, get the pure insurance and if you want to save and grow your money, get the pure mutual funds. it's cheaper that way and you get higher returns of your investment.

rainmen · « **Reply #22 on:** Jul 26, 2007, 01:38 PM »

Quote from: sardonyx on Jul 25, 2007, 01:43 PM

about mutual funds and VUL naman, if you want insurance, IMO, get the pure insurance and if you want to save and grow your money, get the pure mutual funds. it's cheaper that way and you get higher returns of your investment.

you get higher earning in VUL compare to MF
for a 1M investment in VUL and 1M investment in MF - investing in the same kind of fund your investment in VUL gives you a higher yield

why do you say its cheaper if you invest in MF?

sardonyx · « **Reply #23 on:** Jul 26, 2007, 02:06 PM »

rainmen · « **Reply #24 on:** Jul 26, 2007, 02:20 PM »

Quote from: sardonyx on Jul 26, 2007, 02:06 PM

but i've read that getting VUL is the worst way to save money. if you want insurance, get it separately and save your money using other vehicles.

so you've only read about this matter?
you have not experience it yet?

raindance · « **Reply #25 on:** Jul 26, 2007, 03:19 PM »

Hope I'm not too late omekin, just discovered this site hehe..

I think it depends on what your trying to achieve if you want to have a life insurance and investment in one then I think you should choose VUL. But if you already have a life insurance and your sole purpose is to invest then go for MF.
I've tried MF in sunlife its really doing well.
If you want you can also try UITF it's similar to Mutual fund.

rainmen · « **Reply #26 on:** Jul 26, 2007, 07:24 PM »

@raindance
if i may ask which investment vehicle yields better VUL or MF?

dwin · « **Reply #27 on:** Jul 26, 2007, 08:55 PM »

sardonyx · « **Reply #28 on:** Jul 26, 2007, 09:57 PM »

in my understanding, it's not guaranteed that your investment in VUL will yield higher than mutual funds. it just so happens that past performance says so. they don't have the same rate of return because they have different fund managers. in the future, it's possible that MF may fare better than an investment in VUL.

rainmen · « **Reply #29 on:** Jul 27, 2007, 06:26 AM »

Quote from: sardonyx on Jul 26, 2007, 09:57 PM

it just so happens that past performance says so. they don't have the same rate of return because they have different fund managers. in the future, it's possible that MF may fare better than an investment in VUL.

true they have different fund managers, that is why VUL is far superior than MF, and base from what you state that performance in previous year prove no less, we dont base our investment in the future, we always review its history.