Saturday, June 2, 2012

All About ULIP ( United Linked Insurance Policy ) positive and negative

ULIP ( United Linked Insurance Policy ) :

Short Note about it :
One of the best Investment in the market to secure your family with the good life cover.
Any uncertainity happens this will be help full.
But, you all should aware of the hidden charges and returns.
Let me list out few charges name which I've come across.

  • Fund Allocation Charges
  • Policy Admin Charges
  • Fund Management Charges
  • Initial Management Charges
  • Mortality Charges
  • Rider Premium Charges
  • Fund Switching Charges
  • Service Tax Charges
  • Service Tax Charges on Fund Management


Don't get tired by reading this. Addition to this we have many other Terms and conditions too.
So, When your Financial consultant approach you, don't forget to ask about these charges in detail, If possible with best example.

Let's come to returns:
If you invest 10000 in the First Year
they will buy 950 Units based on the NAV (Net Asset Value) at that time.
Lets consider NAV is Rs.10 at that time.

In the second year your NAV remains same or it goes up very minimal such as Rs.10 or Rs.10.25 or Rs.10.50

You will face a very big loss.
which means your fund value will be approx. Rs.8250 only
Shocked !!!!...
Eventhough the market is up by few points you will not get your capital amount.

So, my suggestion is, "Learn more and more before you invest".
Once invested that's it, the charges will be levied on your Capital

No comments:

Post a Comment