Unit Trust vs Investment-Linked Funds

I am currently evaluating unit trusts as a means of investment versus other forms of investments. The topic is narrowed down to unit trusts against investment-linked funds such as those offered by insurance companies, where they invest a portion of the money you give them in equities and other forms of investments in order to earn the investors a decent return. So far, my investigations have shown that each investment vehicle has their advantages and also weaknesses. Investment-linked funds can offer protection and some form of "guaranteed" returns but so far, the returns are only so-so in comparisons with an all-out unit trust investing in equities (shares). Returns guaranteed are a mere 3 to 5% and the rest is "projected" returns, which all-in-all will add up to around 8% if the returns are good.

On the other hand, unit trusts (especially equity), do not make any guarantees of returns but a good performing fund shows past returns averaging around 10 to 12% and on really good years, even 40% is not impossible. One just needs to have faith in this investment vehicle and be willing to wait out the years (at least 3 years wait) for it to start earning decent returns. Of course I am generalising here and some funds do better, others worse but I am just putting out some figures after comparing two specific products that are not so easily comparable.

Well, you know how the saying goes: No risk, No returns. And also" You can't have the cake and eat it". How true this is with with regards to my topic. If you want protection, you can't expect too high returns.. hey, the insurance company also has to make some money out of you so be fair with them.

Conclusion
In short, there are no shortcuts or easy no-brainer investment decisions. One has to decide based on one's appetite for risk and invest accordingly. Two links I found interesting was the fact that investment-linked funds end up being more expensive as one ages:

http://kclau.com/insurance/investment-linked-vs-traditional-insurance/

http://www.jeanchai.com/?p=20

Also, wise investors know that one should spread out their risks and not put all their eggs in one basket. Hence, one should invest in various investment vehicles in order not to end up being affected too highly in one area when the market goes down.