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Small-cap fund, SIP, NFO…. Is that insurance or mutual fund? Here's how to avoid being mis-sold investment products

Money ControlMoney Control · 8m
Small-cap fund, SIP, NFO…. Is that insurance or mutual fund? Here's how to avoid being mis-sold investment products

Life insurance companies and mutual fund houses are competing to attract last-minute tax-saving investors. While both offer products eligible for deductions under Section 80C, there are differences in commissions, withdrawal conditions, and lock-in periods. Some insurers have started using terms associated with mutual funds, leading to confusion. Certain factors can help distinguish between the two, such as minimum investment period, medical check-up requirements, recurring investments, benefit illustrations, post-sale calls, and taxation. If a mistake is made, there is a free look period for canceling the policy or options for complaint resolution.

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