Actually, SuperBoy, the secret is not to overthink it.
bluethehero wrote: »
^go to www.icap.com.ph then try to get some info about mutual funds.
as to how to invest, it is always best to go to the mutual fund office itself and ask about their different funds.
but for the question, in my limited understanding,
both are managed portfolios or pooled funds. the only difference is that the Variable Life Insurance has an insurance component. meaning, everytime you place money for investment, a percentage is allocated for insurance, while the rest are placed in the investment portfolio. for example, Pru-Life UK has a minimum of 75% investment 25% insurance for a minimum of 50K initial investment and 1k mandatory monthly investment (not sure if this still applies).
Mutual Funds obviously have no other components except for the portfolio itself.
so what's the basic consideration if an investor is having a dilemma between a mutual fund and variable life insurance? well, 1) do I need an insurance, 2) after carefully examining the previous performance of the mutual fund company and the variable life insurance company, which fund had the better return, 3) which between the two has the higher risk?, 4) which has the investment terms and policies that will suit my finances?