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Life Insurance - A glance at ULIPs after Sensex reaches 10,000-mark

14 Feb 2006

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The impatient wait of seeing the market to reach its all time high has brought a smile to the investors. With Sensex crossing the magical 10,000-mark, the Unit Linked Insurance Policy (ULIPs) holders are just too happy to get the best of both insurance and the stock market. With the market plunging and rising, it took the breath away of the investors with its robust performance when it reached the five-digit figure for the first time.

An eager wait has brought good returns for ULIP holders and it’s worth the risk that has gone in. The investors have found all new reasons to celebrate. There are many like you who are captivated with the bull market and crave for being a part of it. But are in a dilemma whether to enter the market through ULIPs at this time or not. Well you need to know that you cannot really clock the entry and exit time of the market. Being a part of the market demands to have a risk appetite. The returns have been the most attractive aspect and hence there are more and more individuals making a bid for it.

Follow the experts’ advice and you can minimize the risks to a greater extent. First of all stay invested for a long-term than entering the market with short-term exit plans. With the IRDA’s new introduced change of a minimum three year lock-in period for ULIPs, an investor cannot make an early exit until the specified term has been fulfilled. Ideally the investor should stay invested for a minimum of 5 years. Another feature that you can make use of is Systematic Investment Planning (SIP) like the one available in mutual funds.

Depending on the risk factor that you are ready to digest make a plunge in the market. Don’t get carried away with the short-term gains. Moreover your premium and administrative costs needs to be recovered which is possible only if you stay invested for a long time.

Source: insuremagic.com BACK

To be added soon

Priyanshu B. Tanna

SEBI registered IFA

ARN119467 & EUIN E-183966

To be added soon

Bharat Tanna

SEBI registered IFA

ARN26176 & EUIN E-044509

To be added soon

Kundan B. Tanna

SEBI registered IFA

ARN294073 & EUIN E-553599

Risk factor

Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

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