I wanted to switch my holdings in a Ulip fund and when attempting the same, the person at the call center asked me if I wanted to switch or redirect. I am confused what to do now?
Anika Pal, Dehradun
In the context of Ulip fund holdings, a switch enables you to shift the existing units that you hold of your Ulip into a different type of fund available within the Ulip. For instance, if your investments were in fund A of a Ulip, you could switch it to fund B or C depending on the number of such fund options available to you under the same Ulip. However, a switch does not change the future premium allocation. This means if your money was instructed to go into fund A when you commenced the Ulip, it will remain so, even after you make a switch to say fund C. To ensure future premiums go to fund C and not fund A, you will need to redirect it to fund C. Now that you know the difference between the two – you can choose the option you wish to exercise.
