Investment Plans 127 views August 21, 2021

A Unit-linked Insurance Plan (ULIP) gives life cover as well as helps you grow your money to achieve your financial goals. What helps raise your money is the fund/s you select for the ULIP. Yes, ULIPs come with multiple fund options for you to choose from based on your risk appetite – aggressive, conservative or a mix of both. Aggressive investors should choose funds that invest mostly in equities. Whereas the conservative ones should keep an eye on funds investing in debt instruments. In case you are both aggressive and conservative, look for hybrid funds.

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The performance of the fund over the years dictates the return you will earn by the time the policy matures. So if you want to invest in the ULIP, do analyze the fund options available to you. We can also help you by detailing the fund options of unit-linked insurance plans. Read the details and decide accordingly.

Top ULIPs and Their Fund Options

Check out the fund options of unit-linked insurance plans mentioned below.

Max Life Platinum Wealth Plan

Under this policy, you’ll get six fund options that are as follows:

High Growth Fund: A multi-cap fund with a focus on mid-cap equities, where investments are mostly done in equities of companies with high growth potential. This fund targets high growth in capital value assets. At least 70% of the fund corpus is invested in equities. While the remaining goes into government securities, corporate bonds and money market instruments.

Growth Super Fund: An equity-oriented fund wherein 70% of the fund corpus is invested in equities and the remaining in debt instruments such as government, corporate and money market papers.

Growth Fund: Here, the investment is done in various asset classes such as Equities, Government Securities, Corporate Bonds and Money Market Instruments. The exposure to equities is a minimum of 20% not exceeding 70%.

Balanced Fund: Primarily investments are done in debt instruments such as Government Securities issued by the Government of India or State Governments and also in Corporate Bonds and Money Market Instruments. A minimum of 10% and a maximum of 40% of fund corpus is invested in equities.

Conservative Fund: This fund invests primarily in debt instruments such as Government Securities, Corporate Bonds, Money Market Instruments, etc. And up to 15% of fund corpus is invested in equities.

Secure Fund: This is a debt-oriented fund, so investments are done in Government Securities, Corporate Bonds, Money Market Instruments, etc. And no investment will be made in equities.

HDFC Life Click 2 Wealth

HDFC Life Click 2 Wealth allows you to invest in a combination of funds, so you can choose your fund options from the following:

Diversified Equity Fund: Aims to generate long term capital appreciation by investing in high potential companies across the market cap spectrum.

Blue Chip Fund: The primary investment is done in large-cap equities and equity-related instruments.

Balanced Fund: The risk rate is moderate to high as there is dynamic equity exposure to enhance the returns while the debt allocation reduces the volatility of returns and balances the risk.

Bond Fund: There’s an active allocation across all moderate-income instruments.

Discovery Fund: This fund generates long-term capital growth by investing predominantly in mid-cap companies. The fund may invest up to 25% of the portfolio in stocks outside the mid-cap index capitalization range. Whereas up to 10% of the fund may be invested in fixed income instruments, money market instruments, cash, deposits and liquid mutual funds.

Equity Advantage Fund: A long term capital growth is the objective of this fund through investments in companies across the market capitalization spectrum. Up to 20% of the fund is invested in fixed income instruments, money market instruments, cash, deposits and liquid mutual funds.

Opportunities Fund: Here, the investments are done in equity-related instruments.

Liquid Fund: The liquid fund invests in bank deposits and high-quality short-term money market instruments, so there is very low risk.

Bond Plus Fund: The risk rate is moderate to high and it helps you get steady returns from interest accruals on high grade bonds. Also, the funds are invested in equity instruments and investment trusts.

Secure Advantage Fund: Earns you steady returns from higher interest accruals on high-grade bonds.

Bajaj Future Gain

Bajaj Allianz Future Gain provides you the following fund options:

Equity Growth Fund II: The investment objective of this fund is to provide capital appreciation through investments in select equity stocks. 60% of funds are invested in equities, while the rest are in bank deposits, money market instruments, cash, mutual funds.

Accelerator Mid-Cap Fund II: Aims to achieve capital appreciation by investing in a diversified basket of mid-cap and large cap stocks. Here, 60% of funds are in equity while the rest in money market instruments, cash, mutual funds.

Pure Stock Fund: This fund aims to specifically exclude companies dealing in Gambling, Contests, Liquor, Entertainment (Films, TV, etc.), Hotels, Banks and Financial Institutions. The fund allocates the investments in equity, bank deposits, money market instruments, cash and mutual funds.

Asset Allocation Fund II: The investment objective of this fund is to realize a level of total income, including current income and capital appreciation. So, the assets are allocated among equities, bonds and cash. The fund strategy is to adjust the mix between these asset classes to capitalize on the changing financial markets and economic conditions. Asset Allocation Fund II will adjust its investments in equity, debt and cash based on the relative attractiveness of each asset class.

Bluechip Equity Fund: The risk profile is high in this fund as the primary investments are done in equity. The investment objective is to provide capital appreciation through investment in equities forming part of NSE NIFTY.

Bond Fund: This fund has a moderate risk profile and provides an accumulation of income through investments in high-quality fixed income securities such as fixed deposits. money market instruments, cash, mutual funds.

Liquid Fund: The objective of this fund is to protect the invested capital through investments in liquid money market and short-term instruments like bank deposits and money market instruments 100%.

Note: The maximum investment in mutual funds is under the purview of relevant Insurance Regulatory and Development Authority of India (IRDAI) guidelines.

Conclusion

Hope you have understood the functions of fund options of unit-linked insurance plans. Choose the option that you think can help achieve your goals easily.

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