more than 30% return in ulip what to do now?

[smithjohn1948]

and yes please give us all the name of the insurance company and its wonderful scheme which gives a return of 30% on total investment on index fund when index rises by just 3%

sorry for late reply. its Aviva Life Insurance's Life Bond 5. you already know its Index fund and allocation is to be exact 99% equity 1% money market.

UPDATE: According to Aviva Investor Quarterly Guide - As on 31 Dec 2009 Last 1 year Portfolio Return is 74% (not mine, Aviva's Index Fund). Though Since Inception its still down by -6.9%.

hope it helps.

KEEP NOTE: I'm NOT an Insurance Adviser neither i have any kind of for profit connection to any insurance or amc company in exchange of these suggestions. what i am suggesting here is my conclusion of mine and only mine experience with only 1 policy which is also my first policy.

My conclusions are as following:

1. ULIPs only gives return in long term, especially if you are invested in Equity.

2. My fund rose up 30% because i stay invested in Equity (index fund) despite the bad economy.


If i am not wrong the only reason i have gained 30% in bad economy is because the units were bought when they worth less cause of bad economy. and now as economy is recovering so company's share price is going up and if i am not wrong those units are basically representing those shares so its obvious as the share price is going up so as units value.

my conclusion also confirms by NAV of my fund. when i buoght the policy on may 2008 it was somewhere around 6 now its 8.


PLEASE LET ME KNOW IF MY CONCLUSION IS WRONG.

 

[findvikas]

You can withdraw 3 years before subject to 2% exit load.

ULIP comes with lock-in period of 3years atleast... many comes with minimum term of 5yrs where you cannot withdraw a penny until 3yrs complete and with 2% exit load between 4th - 5th year...

correct me if I am wrong.. I am waiting for July for my first stupid investment to mature...

ULIP = U Locked in Pain...

 

[findvikas]

an index fund grown by 30% does not mean index has to gain 30% as well... its not ETF people its ULIP... where fund managers withdraw their funds... book profit at right time and then reinvest it back... otherwise it make no sense in going for a Index fund over Index ETF which has very less charges when compared to ULIP and no lock-in period..