save LTCG thro ULIPNo. of comments:3 rahul kulkarni, virar-mumbai, 38875 On 30-Jul-2014Ulips are not so popular as insurance agents wants to sell guaranteed products. But I find one hidden point in ulip. Now a days everybody is discussing new tax rule on debt funds. But if you invest thro ulip, you can switch from debt to equity or balanced funds or vice versa without thinking LTCG or short term capital gain tax. As in mutual fund if you sell within 365 days short term capital gain arises or LTCG is there on debt fund. however no such paperwork will require for ulips as switches are internal and no tax liability arises. (if I am wrong pl let me know). At present mf is charging around 2.5%, ulips are charging upto 1.5% fmc + policy administrative charge+mortality charge + entry load. However there is no big entry load like upto 40% in traditional plans. so one can choose option debt/equity according to current market scenario and his /her risk profile and switch to other option without thinking of tax liability. I know disadvantages are many as one can have agency of only insurance company etc etc. pl share your views.