October 25, 2019 8:01 am,
ULIP is a unit linked plan usually for long term investment options. ULIP is linked to stock market. So, being long term products, they help you to make good amount of money and achieve your goals. Though ULIPs are market linked we can always expect huge returns considering its long-term investment horizon.
ULIPs are the best investment tool to create wealth. They also provide life insurance benefits.
Let us see how stock market plays a major role when it comes to ULIPs
Predicting markets Ups and downs is a difficult task even for researcher’s and regular investors. Even the best analysis may go wrong with stock market some times. So, before buying you must understand few things about stock market and NAVs. There fore it is better to invest in ULIPs which provide market linked benefits along with life insurance and tax benefits.
This approach work well in the long run as it averages the market volatility over the long term. Unit linked insurance plan investors can make changes to their fund preferences throughout the duration of their investment. The funds offer transferring flexibility. Numerous investment options are also available including stock funds, bond funds, and diversified funds. So, the chances of incurring loss due to market volatility is negligible.
ULIP investment offerings are primarily concentrated in India where they were first launched. HDFC Life is a leading provider of ULIP investments. The firm’s plans offer varying provisions, terms and investment options.
ULIP vs Stock market
To conclude, it is always advisable to invest in ULIPs to reap huge profits in the long run. Stay invested in spite of stock market volatility to get the maximum benefits. Switching the funds based on market performance is a key factor in getting good returns.
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