How can you achieve your financial goals?

You wish to travel, you need money. You want to buy a car or a home or anything you would need money and systematic planning.

So how would you go about planning to achieve your dream/ goal?

First, articulate your dream. When would you need the money?

Estimate the approximate money you would need to fulfill your dream.

Based on these you will have to decide how much money you need to invest today.

ULIP’s is one instrument where you can invest for long-term where you get returns plus protection.  Protection comes in form of risk protection – ULIP covers you for life risk and also offer capital appreciation by investing your corpus in either equities or bonds, it’s for you to decide where to invest.

There are various benefits which ULIP’s offer.

First and foremost it provides you return on investments and insurance coverage as discussed earlier.

It helps in easy diversification. You can choose where you would like to invest be it bonds or equities. You also get an option to select partial of bonds and partial of equities (hybrid). They also offer a wide range of products for wealth creation and capital protection both.

You get the flexibility to alter the premium amount and add top-ups, also you can partially withdraw for an emergency.

You get the transparency as the NAV is reported on a daily basis.

ULIP’s help you in rupee cost averaging which takes care of the short-term volatility and you don’t have to time the markets.

Are ULIP’s better than mutual funds?

ULIP’s provide an add-in advantage of insurance element as compared to MF’s.

The fund management charge in a ULIP is a maximum of 1.35% as compared to 2.5% in Mutual funds (excluding the index funds). Less fund management fee directly results in more returns in investors pockets.

How do ULIPs perform well in long-term?

ULIP’s are directly related to the economic and market conditions. As India has a favorable long-term growth story investing in ULIP’s would make sense. ULIP’s from Bajaj Allianz has been ranked one of the best by Morningstar.

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