Two products with a similar purpose
A פוליסת חיסכון and an investment portfolio are tools for managing free money. In both you can be exposed to the capital market, but the way the money is managed is different.
A פוליסת חיסכון is managed by an insurance company on specified tracks. A managed or independent investment portfolio is usually held in a securities account, with specific assets that can be viewed and changed.
Differences that are felt over time
In a פוליסת חיסכון, switching between tracks may be simple and convenient. In the investment portfolio, the control is higher, but buying and selling operations may create tax events and trading costs.
Transparency is an important difference: an investment portfolio usually shows individual holdings, while a savings policy mainly presents the investment track, policy and returns.
Who is suitable for what?
A פוליסת חיסכון can suit those who prefer a managed and relatively simple product. An investment portfolio can suit those who want control, transparency and flexibility.
In any case, a decision should start from defining a goal: money for the children, medium-term capital, savings for old age or a liquid component in the family portfolio.