ULIP or Unit Linked Insurance Plans from insurance companies offer you the opportunity to obtain life insurance coverage and at the same time put your money to work in investment funds.
A majority of ULIP plans offer the flexibility to invest in bond funds, equity growth funds, and balanced funds. The returns you can expect from such funds are dependant on the performance of the underlying securities in which these funds invest and thus are subject to market risks.
Based on your risk appetite you could invest in bond funds (low risk appetite) or equity growth funds (high risk appetite) or balanced funds (medium risk appetite). the returns you should expect could range from 6% for bond funds to 10% for equity funds over a period of five years and above.
One thing you should keep in mind before investing in ULIPs is that the upfront fees and commissions are fairly high and that you could consider mutual funds instead, which are a relatively inexpensive alternative, unless you plan to keep your investment in place for at least 15-16 years.
Some ULIP plans available in the market, which you could consider are Reliance Automatic Investment Plan, LIC Market Plus or ICICI Life Time Super.
This message was edited 1 time. Last update was at 29/10/2008 13:39:27
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