I am holding ULIP 10 year plan by UTI. Investing 30k annually (annual payment). Holding this for last 5 years(from Jan 2011) .
Invested Amount : 1,48,139
Current amount : 1,85,549
current nav : 19.382
100 % of investment is in debt funds.
Returns looks disappointing. So could you please advice me whether I should hold and keep investing in this or redeem/sell ?
Thanks for your help.
PS : I am 27 yrs old and don’t have any other major investments ( mutual funds or term insurance)
Mithun-Why you invested in this product and what was your expectation while investing?
2 things 1)tax saving 2) investment with less risk and insurance for 7-10 yrs.
Mithun-The major mistake you did as not understanding your FINANCIAL GOALS. But considering TAX SAVING as a major goal of investment. When you do this, then the result is wrong investments. If you had invested the same amount in tax saving FDs, then returns might be more. Never try to combine insurance with investment. Insurance for just 7-10 years only? Are you able to live without insurance after that? Whether there will not be any financial dependents after 7-10 years? First COME OUT OF IT.
Buy term insurance to the tune of 15-20 times of your yearly income. Buy health insurance and accidental insurance on your own (even if employer provided those for you). Create an emergency fund of at least 6-12 months of household expenses. Identify goals. Then start investing. Product selection must be LAST process. However, in your case you selected the product first.