The statement that "return on invested premiums is based on the performance of a real fund" is not true about equity-linked insurance.
While equity-linked insurance products do offer the potential for higher returns than traditional life insurance policies, they are not directly invested in real funds. Instead, they typically track the performance of a stock market index or a basket of stocks. This means that the returns on equity-linked insurance policies are not subject to the same level of risk as direct investments in real funds.
Many equity-linked insurance policies offer a guaranteed minimum return, even if the market index or basket of stocks performs poorly. This provides some protection against downside risk.