Once you realise Ulips are not what you imagined, the urge to exit goes up and that is when you need to know where you stand for a hassle free exit.
Among the many forms of life insurance, the unit-linked insurance plans (Ulips) are most widely discussed for their merits and complex construct. Like every other financial product, if you understand what a Ulip does and take it, you will not be complaining. However, if you have taken it up because an agent sold it to you or you thought it was a wonderful investment instrument, chances are you will be wondering what to do with this lemon.
The year-end sales of Ulips go up mostly due to the last minute tax planning that people get into. Whatever the reason, it is also possible that you may feel the need to weed out Ulips from your portfolio while reviewing it. Before you take that call, you must weigh several options to make sure that you do not end up further compounding the mistake of buying an unsuitable Ulip.
Take the case of 35-year-old Dipan Gajjar from Mumbai; he bought a Ulip, entailing a premium of ₹33,000 in 2010 primarily to claim deductions under section 80C. “I had purchased it for tax-saving purposes, but the returns were poor. I was not happy with the Ulip,” he laments. It is not that only those without a finance background get it wrong; several people well-versed with finance could also get it wrong. Financial services professional Praful Ghildiyal, 28, faced a similar predicament in 2014 when he realised that his Ulip did not meet his requirements.
Esta historia es de la edición January 2017 de Outlook Money.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición January 2017 de Outlook Money.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Gold ETFs And FoFs
While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.
PLANNING TO BUY CHILD INSURANCE? THINK TWICE
Child insurance plans combine insurance and investment but often offer low returns due to high costs, making a combination of a term insurance cover and mutual fund a better option for securing your child’s higher education needs
How Do You Define Happiness?
Money does buy happiness, but after a while, the appeal fades. We talk about our relationship with money, but, maybe, it’s time to revisit our relationship with happiness
Avoid Crypto As It Is Highly Volatile
I am 22 years old and have recently started working. I want to invest a small portion of money in cryptocurrency. How should I go about it? Does it require a huge capital investment?
Invest Right, Don't Speculate
The lure of high returns and quick gains from equity tips, cryptocurencies, and equity F&O can be enticing. But remember, return of capital is more important than return on capital
The Wedding & Budget: Is Minimalist Trend The Right Knot For You?
Indian weddings are known for their pomp and grandeur, but minimalist weddings are also in vogue now. Dia Mirza was one such celebrity who went for a minimalist wedding. If you also want to keep things minimal on your big day, here’s how to do it
Here's How To Buy An ETF?
Mutual funds are the preferred choice for retail investors. However, they come at a cost and fund management risk, apart from other risks. A smarter alternative is to invest through ETFs.
How Passive Funds Help Diversify
Passive funds provide a simple way to invest in broad markets as well as in specific themes and sectors, making them ideal for an investor's satellite portfolio
The Rise Of Passive Funds
The popularity of passive funds among retail investors has risen post Covid, and fund houses are out with many variations of ETFs and index funds. Does this category present a new opportunity for investors?
Tax Reforms: What's In Store?
The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms