I am holding two Ulips and despite investing for four years in them; I am not getting proper returns and my fund value is less than the capital I had invested. Should I stay invested in these two plans?
Mukund Shekhar, Agra
Ulips being hybrid products are a mix of insurance and investments. Due to high charges in the initial years, only a small portion of the premium that you pay goes towards investing. Evaluate the surrender value of the policy from your insurer before you take the decision to continue or exit this policy. Ideally, you should evaluate your insurance needs and appropriately take insurance, preferably term plans which are low cost pure risk life insurance policy. With the surplus that you will be left with look at making SIP investments in mutual funds instead. If you do take an Ulip, stay invested in them for a long period or definitely the tenure of the policy.
