Does Risk Involved On Ulip Investment As Equity Shares

2024-08-02

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People who are solely dependent on their income for their well being are more likely to face financial crisis in case of an unfortunate event. You can generate wealth and live a peaceful life through financial planning. All you have to do is to put some money in an investment channel that ensures the financial security of your family while keeping your financial needs in mind.

So if you want to multiply your wealth within a certain period of time, then investment is the best option for you. But, to initiate this, you first need is to choose the right investment option. Though, there are numerous investment channels available in the market, but if you are a beginner, then it's good to invest in a risk-averse option.

ULIP, also known as Unit Linked Insurance Plan is a market linked investment product that allows you to invest money across multiple asset classes. As compared to other traditional life insurance plans, ULIP is different as it is linked to risk factor. This savings-cum-protection plan is considered as the best investment option among investors as it helps you to maximize your savings by investing money in multiple investment funds. Although, before investing in a ULIP, you need to understand that these funds are based on stock market investment. Therefore, they are prone to risks and can affect the return on investment due to any market fluctuation.

There are different types of funds available as per your needs. You can just assign the amount of your savings to these funds as per your risk appetite. The types of investment funds include - debt funds, equity funds, balance funds, etc. If you are reluctant to take risks, then you can invest in debt funds as they involve less risk. On the other hand, equity funds are liquid in nature. Equity Funds or growth funds are ideal for generating long-term returns. So if you are ready to take risks, then investing in equity funds can be a great option. As it will help you get good returns when the market performs well. Equity funds usually deal with company shares and have good growth rate and is riskier among other asset classes.

Although, before making an investment in any of these shares, you need to evaluate certain things. The allocation of equity/debt funds varies across companies. Also, you have the right to choose your fund as per your risk appetite. And the return you get from investment depends majorly on the type of fund you choose. ULIPs also provides you the flexibility to choose and switch funds between debt and equity. Like if the market is performing bad, you can invest in debt funds, but if the market is performing well, then you can switch from debt funds to equity funds.

On the whole, risk factor in case of ULIP investment depends totally on the market condition. Therefore, you need to be updated of the current market scenarios so that you are well aware of the trends and can switch funds accordingly.

Besides, if you are planning to invest in ULIPs, then choose to go with Invest 4G plan by Canara HSBC Life Insurance. This plan not just helps you to save for your future financial goals, but also offers the protection for life at minimum charges.

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