Fresh investment can be considered in the units of UTI Unit Linked Plan 71, a unit-linked insurance plan (ULIP) with a track record of 40 years.
UTI ULIP is the only unit linked insurance regulated by the Securities Exchange Board of India and has a more attractive expense and load structure than most products floated by insurers.
The fund has a mandate to invest up to 40% in equity and the rest in debt. The fund has not only outperformed its benchmark CRISIL Hybrid Debt (60:40) index consistently but has positioned itself among the top-performing funds in the debt-oriented balanced mutual fund category over a one-, three- and five-year time-frames. While the benchmark generated an annualised return of 5.4% for a three-year period, UTI ULIP returned around 8.1% annually. The fund offers a life insurance cover of up to Rs 15 lakh.
Additionally, the fund may give a 5-7.5% of the target amount (invested amount over the plan period) as additional bonus on maturity apart from the NAV returns. Tax deduction under Section 80C would further boost the yield of the fund.
Suitability: UTI ULIP is strictly for investors who have a very long-term investment horizon as the fund`s portfolio management strategies also are focussed towards delivering returns in the long term.
Categories: Life Insurance