How to Get Better Returns on ULIP Investments?

ULIP Investments

Investing your hard-earned money has now become crucial to help plan a worry-free future for your loved ones. One such popular investment option is Unit-Linked Insurance Plan, which enables you to invest in market-linked funds and gain a life cover against mishaps. But just plain investment may not earn you good ULIP returns in 10 years. This is why some insider tips can go a long way in securing a lump sum maturity benefit to fulfil your life goals. So, here are some ways you can ensure to earn better returns on your ULIP investment.

  1. Stay updated about the market

Market-linked instruments highly depend on the movement of the share market with no fixed returns. However, it is crucial to stay updated about the market and keep an eye on the fluctuations while investing in Unit-Linked Insurance Plans. This shall also enable you to switch between funds in case the equity market starts seeming beyond your risk appetite. Also, if you come to a point where you can now move from debt to equity funds, learning about the market can help you invest wisely.

  1. Make use of the fund switching option

With ULIPs, you can switch between funds to earn better returns from your investment. This may come with some charges, but such an option can highly benefit you. In the event where you can afford to take more risk, and want to switch from debt to equity funds, ULIP investment shall enable you to do so. When you use this option to earn ULIP returns in 10 years, a smart allocation strategy shall go a long way.

  1. Utilising the ULIP calculator

Don’t we all prefer planning our investments for the long-term to help align our goals? This can now be done easily with the help of a ULIP return calculator, which is a free online tool. By selecting the tenure, the maturity amount you require and allocating your investment, the calculator estimates the returns. With this information, you can efficiently plan your investment with the ULIP return calculator. It is easy to use and doesn’t require you to be tech-savvy.

  1. Opting for long-term investment

You could be investing in ULIP due to its dual benefit or to fulfil some long-term plans. But something you should remember to gain better returns is that staying invested for a longer tenure is more beneficial. Though many investors may exit the policy after the lock-in period gets over, your investment starts growing to offer good returns. This is because the impact of charges associated with ULIP lessens with time and the power of compounding enables the corpus to increase. Therefore, opting for long-term ULIP investment shall offer lucrative returns.

  1. Applying life-stage strategy

Depending on your age and the life stage you are at, it can help define your risk appetite. If you have just begun your professional life and have no family responsibilities, you can easily take more risks when it comes to investment. But as you grow older, it is advised to switch to debt funds that are less risky, to balance your financial requirements with your investment. In your mid-40s, you cannot afford to take many risks, as you might need to save up for your child’s education or your retirement. Thus, the life-stage strategy can assist you earn better returns.

Now that you know the ULIP meaning to secure good returns in the future, you can easily plan your long-term goals. It is advised to read the terms and conditions of your ULIP policy carefully and talk to your insurance provider before signing off on the documents.