Hello Basu, Last Year onwards, I took ULIP plan under Exide Life Insurance. This policy is Wealth Maxima-Invest. There are 3 option – Invest-Family-Child. There are 8 funds which will be equity, balanced, debt. I chosen purely equity fund – Prime Equity fund – 100% allocation. My Investment is 99,000 and policy term is 20 years. After 5 years, we can Fully withdraw or partial withdraw will be allowed. Ref: http://www.exidelife.in/products/savings-and-investments/investment-options/ULIP-plans Is this ULIP is good for creating enough wealth ? My expectation is In 5th-year completion, 5 Lacs is turn to 8-9 Lacs. Is this possible ? I request you to review/suggestion to me. Please help me.
Few basics you must learn are as below. Never combine insurance with investment. The concept of 100% equity is totally a disaster for any financial goal. Equity meant for long term like minimum of 5+ years. Look at high charges. These ULIPs are costlier than mutual funds. Now decision is left with you.
Hello Basu, Thanks for update, I made BIG mistake in this. Anyway, I started, I think i’ll continue with this. I have started SIP also for long term. i.e 5+ years. I choosen HDFC Top 200 Growth for my SIP, monthly, 2k.
If your investable surplus is only Rs.2,000 for this 5+ years of goal, then you must reduce the exposure to HDFC Top 200 for around Rs.1,000 or Rs.1,500. Invest rest Rs.1,000 or Rs.500 in debt funds like short term or ultra short term funds. Never invest all 100% into equity. It must be a combination of debt and equity to safeguard your investment.