Can Ulips give guaranteed returns?
Devika Sapru, Bhopal
Most Ulips do not guarantee returns as they are linked to the market. Their track record depends on the performance of the under- lying funds, which invest in the market. The benefit illustration shown by the agents gives only projected returns. A few Ulips do guarantee returns, but at a cost. You should choose the Ulip that suits you best. Risk appetite is an important criterion for the choice. If your risk appetite is high, then an aggressive investment option with a high equity component is likely to work for you. While comparing performance of the Ulips in the market, find out how the debt, equity and balanced schemes have done. Study the portfolios of various plans. Take a look at expenses too.
