Thursday 26 December 2013
Operating Your ULIP Plan Investments Wisely
A revolution in the world of personal
finance, ULIPs are perfect for those who seek for the perfect blend between
insurance along with returns on their investments. This insurance product also
avails you of the tax-saving benefits. Over the years, the assured return on
insurance investments through ULIPs has impressed investors from all over the
country.
On one side you have the conventional
insurance products wherein the insurance component takes an edge over the
saving component. However, in the case of ULIPs insurance cover is the
secondary focus. Here, the return part of investment is focussed more. They
offer opportunity for an investor to select a product which matches their
risk-factor profile. Accordingly, he/she can select the type of ULIP plan. They
are often confused with mutual funds, in terms of their functioning, premium
payments and declaration of units in terms of the NAV (Net Asset Value).
Before you go about selecting a ULIP
plan, it’s important to be well
informed about its functioning. If done right, ULIPs are one of the most
amazing investment avenues. Here, the key is to make well informed decisions
while investing in them.
Once you’ve become a part of the best ULIP plan
for you, now comes the main task of making the right investments. Before taking
a major step, you should always find and select a financial advisor. A good
advisor will know your profile in and out. He should be going through your past
investment decisions and your current profile, risk profile etc. This way, he
can help you with the best advice possible.
It’s always better to look out for an
advisor who asks for payments for his advice. With this, he will be working for
your welfare only and not for insurance company whose products he may try to
sell. Look into his credentials and experience in the financial field. He
should have a thorough knowledge of the different insurance instruments in the
market. Also make sure that the advisor you seek for is unbiased and
independent. He should not be a broker of some company. Positive reviews from
his past clients can assure you that he is a well-known and qualified financial
advisor. Don’t make the advisor do just the small work for you. Make him a part
of your each investment related decision you make.
Now that you have gained enough
knowledge of ULIPs, don’t hesitate to get one!
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