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ULIPs give you the dual benefit of saving for various life stage goals along with an insurance cover. You can choose from a list of available funds based on your needs, appetite for risk and time horizon.
Type of Funds in ULIPs
| Fund Name | Fund Objective | Risk Rating |
Growth Super Fund
|
Focus on Equity markets with 70% of the fund invested in equities at all times The remaining 30% is invested in debt instruments across Government, Corporate & Money Market papers |
High |
Growth Fund |
The equity exposure in the fund is 20% - 70% Remaining 30% - 80% is invested in debt instruments across Government, Corporate & Money Market papers |
High |
Balanced Fund |
Investment primarily in debt instruments such as Government securities, Corporate Bonds & Money Market papers issued by Government of India/State Governments and to some extent in Corporate Bonds and Money Market Instruments The equity exposure is between 10% - 40% |
Medium |
Conservative Fund |
Investment primarily in debt instruments such as Government securities, Corporate Bonds & Money Market papers issued by Government of India/State Governments and to some extent in Corporate Bonds and Money Market Instruments The equity exposure is upto 15% |
Low |
Secure Fund |
Invests in debt instruments such as Government securities, Corporate Bonds & Money Market papers issued by Government of India/State Governments, Corporates and Banks The fund also invests in Money Market Instruments as prescribed by IRDAI No investments are made in equities |
Low |
ULIPs are transparent life insurance products that provide you with the flexibility to change the chosen investment funds based on market conditions.
Switching and Redirection
Switching and Redirection are two of the many strategy options available to manage the volatile market. These are the two options by which you can manage their returns in volatile market conditions.
Switching is to shift your corpus from fund(s) to other available fund(s) while re-direction is allocation of future premiums, in full or parts, to fund(s) available.
You choose your fund based on your changing risk-appetite and financial goals as your life progresses. These are convenient options which will protect you against market fluctuations by balancing the investment portfolio between debt and equity.
Unit Linked Insurance Products (ULIPs) are different from the traditional insurance products and are subject to the risk factors. The premium paid in the Unit Linked Life Insurance Policies is subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Please know the associated risks and the applicable charges from your Insurance agent or the Intermediary or policy document of the insurer. In ULIP, the investment risk in the investment portfolio is borne by the policyholder. The linked insurance products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of fifth year.
ARN: Oct22/Bg/12V
