Bajaj Allianz Life Insurance has announced the launch of a unit-linked plan that offers a minimum guarantee of 170% at maturity. This Ulip with guaranteed returns will be available for customers from January 11. This is a single-premium life insurance policy, known as Shield Plus, and the term is fixed at 10 years and the minimum premium requirement is Rs 25,000. The returns, which work to around 5.45% on this product, could be compared to that of a bank or a post office deposit. But since the product has an equity exposure, there is a strong possibility of outperformance over the long term, say experts. The sum assured could be equal to 1.1 times or five times of the single premium paid, which takes care of the protection element of the Ulip. However, the insurer has capped the maximum sum assured at 1.1 times the single premium for individuals in the age group of 56-65 years. The product offers a choice of six funds but only Shield Plus Fund offers minimum guaranteed unit price at maturity.
MUTUAL funds are considered to be an investment option for those who do not generally devote a lot of time to monitoring and managing their portfolios. Investors experience both good as well as tough times as far as mutual fund investments are concerned. But while evaluating the portfolio of their equity mutual fund holdings there are a few points that one should check to know about the level of risk that they are facing. Often there are situations where there is a higher risk than what was estimated initially. Here are a few ways to evaluate various risk levels. Individual holding exposure : The portfolio of the equity fund where one has invested or plans to invest needs to be scrutinised to see whether the risk levels are such that could lead to a larger volatility in the holdings. Depending upon this factor and the risk taking ability of the investor the choice about a particular fund as an investment should be made. One key point to watch out is whether there is a large ex...
