CNBC Your Money: Bank told me Wealth Maximiser plan 5 is better than the FD. what should i do?

Hello,
My name is Mohini Singh from Meerut, U.P . I hold a saving account in ICICI Bank and want to make a FD. One of the representative told me about the Wealth Maximiser plan 5 that it is much better than the FD.
Kindly provide your assistance that what would be more beneficial for me.
Regards,
Mohini Singh

The exact name of the fund is needed but Maximiser fund V is a 100% equity oriented ULIP fund which is part of ULIP plans issued by ICICI Pru Life Insurance company. The ULIP plan will have inbuilt insurance as well. It clearly is a mis-sale by the bank representative to position this as a “safe” alternative to a fixed deposit with the same bank.
If you continuously invest in the fund over the long term (10 years or more) it is likely to provide better returns than a fixed deposit but unlike a FD the returns will vary very widely year to year including years in which the fund returns are negative.
The miselling epidemic in banks has spread rampantly and had been widely reported in the media. You need to be careful when buying any such investment schemes or insurance product. Please consult your investment adviser when any such products are been offered to you.

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