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How ULIP funds are calculated to generate returns?

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Iffco Tokio Bike Insurance Online Premium Payment!!

Most of the people prefer travelling through two wheelers as they don’t want to waste their time and money in the congested traffic. With the ever upgrading technology, most of the two wheelers are coming equipped with unique and interesting features like, disking breaking, high speed and more. But all these features also increase the risk of accidents. Indian roads are also somehow responsible for accidents. For safeguarding the precious life, people invest their money in bike insurance online, to provide a financial aid I case the person meets an accident. What is Iffco Tokio? Iffco Tokio Bike Insurance ensures that the insured get high financial coverage in terms of any damage done to the two-wheeler. This wonderful bike insurance online policy tailors the insurances pack... Read more

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Insurance plans are the best way to build financial security for our family. But due to the rising inflation costs, improvised lifestyle, growing aspirations of people, and ever-increasing needs, it becomes imperative to have a steady income that apart from insurance to match the pace of the rising living standards. We all want to see our money grow each day just like a money plant.

With this though in mind, insurance companies have introduced Unit Linked Insurance Plan (ULIPs). ULIPs not only offer insurance cover but give assured returns. ULIPs are just like Mutual funds, where investors purchase units at their Net Asset Value (NAV) from a fund, along with added advantage of having a life cover from an insurance company.
That’s, why the term linked is involved. Your insurance component is linked to a ULIP fund. Insurance companies promise you guaranteed ULIP NAV returns. But it is advisable to talk to a financial expert and understand the conceptualization of a ULIP NAV and then go for investments.

ULIP NAV is calculated by adding the ULIP funds for a particular day and deducting charges like management fees, operating expenses, marketing costs and other expenses incurred. Net Asset Value represents the value of the total holding of the ULIP fund. It is divided by the number of units held by investors. This represents the NAV per unit.

Most people think higher ULIP NAV would include investment in expensive funds and often choose to skip it from the investment agenda. They opt for an investment with a lower NAV just to save costs on premiums. However, let's understand that the NAV is merely the book value of the ULIP fund investment minus the related expenses. It only represents the fair price of the asset should the mutual liquate the investments on a particular day. Investors don’t have to be worried about the price being too low or high. Instead, the significance of your investment should not be the basis for choosing the right ULIP fund. Therefore, a higher or lower ULIP NAV holds no importance and should not be the basis for identifying the right ULIP fund.


Expert suggest when there are no major movements in markets, your product will work at its best as the ULIP NAV will go up in a steady manner. If the market falls, your debt earnings will be locked. Once the market recovers your equity earnings will rise. Remember, the debt part of your portfolio has secured bonds that ensure the highest Net Asset Value at maturity. So over a period of time, in your portfolio equity funds will shrink and shift towards debt based funds. Depending upon how much the market falls, at that point during the tenure, companies usually make a smooth exit from the stock market and invest in secured funds.

Saving on the costs of charges associated with Ulip Plan Comparison will ensure higher returns. Ideally, there is premium allocation, administrative, management, upfront, partial withdraw, fund switching or surrender charges associated with the plan. Ensure that your charges should not eat away the entire profit, else there is no point in making the investment. Your ULIP policy should have a minimum charge and provide better flexibility in terms of cash withdrawal, bonus receipt, and term of policy.
Added 11 days ago
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