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Equity Funds: Mutual fund
that principally invests in stock is known as the equity funds. Equity funds also known as the stock funds.
Some stock funds target specified market like health care, real estate etc know
as the “specialty stock funds”. This
risk factor associated with equity funds is high.
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Income, Fixed interest and Bond Funds: Investment in corporate bonds, government
securities and other fixed income securities. Fixed income investments
generally pay a return on a fixed schedule.
In this kind of ULIP risk is lowest.
People invest heavily in fixed income bonds because of the reliable
return.
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Cash Funds: Also known as
money market funds- investment in bank deposits, cash and money market
instruments. Cash funds are the open ended mutual funds that invest in short
term debt securities. Cash funds may be wise option if you are planning to
retire in the next few years.
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Balanced Funds: Combination
of equity funds and fixed interest is known as the balanced funds. Generally
these hybrid funds geared towards investors who are looking for a mixture of
safety and income.
Investment returns in ULIP plans may not be guaranteed, the
investment risk in investment is borne by the policy holder.
ULIP plans have some unique features like flexibility,
transparency, liquidity etc and are the most discussed about investment options
in India. On what bases you should decide which plans suited you better? Every
insurer has some different offerings and each and every plan has a number of
details that need to be reviewed before buying any policy.
Bajaj Capital Insurance is here to provide best available
options in the market. If you have questions about ULIP plans, we will happy to
help you. Just call us on 1860-266-1226 or write us an email at
info@bajajcapitalinsurance.com
Very Informative article which has given clear understanding of ULIP. Thanks Bajaj Capital Insurannce.
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