Can ULIP ever make more profit than FD’s or conventional investment ?

POSTED BY Dipesh ON December 10, 2013 10:36 am COMMENTS (2)

Hi,

Can ULIP ever make more profit than FD’s or conventional investment instruments. If we switch the funds at correct time and take more efforts will ULIP beat the traditional instruments ?

Thanks!

2 replies on this article “Can ULIP ever make more profit than FD’s or conventional investment ?”

  1. ashalanshu says:

    Dear Dipesh, theoretical answer is Yes. Practical answer ‘ll depend upon your own ability to switch if you want to know it. 🙂

    thanks

    Ashal

  2. sindhisn says:

    Investment returns over long term horizon under ULIPs are expected to be higher than the investment returns offered by FDs/ conventional instruments (provided that more exposure is in equity related funds). However, the actual returns may/may not be higher compared to FDs/conventional instruments as returns under ULIPs are not guaranteed and investment risk is completely borne by the policyholder. For debt and money market related funds offered under ULIPs, returns are more or less in line with the returns offered by conventional instruments. However, they are again not guaranteed (as debt and bond returns are also volatile in nature) by the policyholder.

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