A CEO of a tech Startup invested Rs 50000/- in a ULIP when the Sensex was around 10000.
“Why is the value Rs 47000 now when the markets have gone up to 14000+?”, he asked me.
“Well, only 30-35000 would have been invested in the markets. Rest goes to the advisors and other costs. So your fund has performed well. Only you were not told about the costs”, I replied politely.
I did not tell him that even though he is a CEO, he’s still a moron when it comes to investing. 
Infact, he’s lucky that the fund value is Rs.47000. It could easily be 25-30000 only, if the markets were not rallying so well in the recent past!
With the costs involved, ULIPs are indeed daylight robbery.
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