If u r an expert trader, trading is better than Mutual Funds for you.
You are likely to beat the returns of MFs.
But If trading is not ur cup of tea, then mutual funds are good options for you.
Professional managers manage the fund to get good return.
They put ur money in the stocks after doing thorough research.
But the best option is ULIPs!
They too are managed by professional fund managers but have the added advantage of
"Switching"
Whenever the market is dangerously high u can "switch" "out of the market" to safer funds.
This will protect your profit as the market corrects.
After the correction, you can again "switch" back from debt or safe fund to equity fund, thus making huge profits!
In case of mutual funds u have to slide down with the market except when u shift to another fund at a cost!
But even safer funds slide with the market.
The mortality & fund management charges are dwarfs before the huge extra profits locked by "Switching" in ULIP.
That ur family is getting "insured" is not bad, i suppose!
Pity, people don't use the best option of the ULIPs - the facility to Switch!!
How to time the switch?
Well, use RSI combination of 14/1d (3 month chart) and 14/30m (1 month chart).
Switch out of "Equity" fund when rsi combination has exhausted in overbought territory.
Switch back to "Equity" fund when rsi combination has exhausted in oversold territory.
ULIPs of all companies are good.
However, Insurance is subject matter of solicitation.
And ofcourse, if u r good at trading with rsi urself, u can consider taking up an insurance agency and advise ur clients about when to switch (at their risk)!
Happy "Switching"!
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