The most common confusion occurs between insurance products in the nature of unit linked policies and mutual funds, the cause could be the scheme’s name, which does not give inkling on the nature of the product and the way in which it is structured. Since there is an investment angle to these areas it becomes easy to confuse between them. Investors who are also not very clear about the exact nature of the products should understand what the basic product is and what an add-on to the product is.
Necessity to differentiate:
This is necessary to ensure that there is no overlap of the various offerings and that a person does not end up with something that they do not actually want. Many people realize only later that what they have bought is not what they require but by then it is already too late.
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