I purchased TATA AIG life InvestAssure-II (ULIP) on 14-Sep-2006 (I don’t know why). Yearly Premium is Rs.20,000 and sum assured is 6,00,00. I have been paying regular premium till date. As per the policy documents there is no surrender charge after 6 years from date of purchase. I want to understand following points from you.
1. This ULIP is underperforming and I don’t see any change in total fund value. I understand ULIP is good if you track properly and smartly choose the fund which is difficult for me. I have invested apprx 1,20,000 so far and fund value is ~1,18,000. Do you suggest I should surrender this policy and invest in MFs.
2. If I surrender: Is it a good idea to invest in STP and start SIP with this fund?
Thanks a ton for your suggestion.
Regards,
Chintan