Need help with ULIP Switching

POSTED BY Amit ON May 11, 2012 4:42 pm COMMENTS (6)

I have invested in ICICI Pru Life – Premier Life Pension Plan. At present I have kept my investment in Balancer, Protector & Rich funds. Can you please guide me on switching fund to get maximum return? I want to know when to move in which fund?

6 replies on this article “Need help with ULIP Switching”

  1. Amit says:

    Thanks… Will take that action…

  2. Amit says:

    I m not paying any premium now. I m just holding on my investment & want to get max return at the time of maturity.

    1. Dear Am,it, to get max. return, you should redeem & reinvest the surrender amount in to pure investment products like Eq. MFs.



  3. Amit says:

    Thanks a lot for your detail reply.

    Yes, I have to buy the ULIP because of some reason. But now as a investor I want to get maximum return out of it.

    So as a investor I should keep my investment in Equity & Balanced fund. Move gain in equity to balance. Right?

    Is it right time to switch my current investment Debt fund to Equity?

    1. Dear Amit, from your query it seems that you were forced to purchase this ULIP due to any pressure from some close quarters. If my guess is right, may I know why are you still continuing with this ULIP if you were (are) not convinced for it’s performance?

      Regarding switching, please do not keep any money in debt fund i.e. protector. Switch it as soon as possible to Eq. fund



  4. If we all know when to switch funds to maximize returns we are better off with direct investing in stocks, aint?

    Looking at the fund names you have:
    1) Balanced (Balancer)
    2) Debt (Protector) and
    3) Equity (R.I.C.H)

    For ULIPs to provide long term decent returns almost 100% must be invested in Equity options. At this point the markets have taken a good beating from the Jan/Feb highs. I dont know if this is the best time to move money into Equity schemes because the markets can even fall another 2000 or 10000 points from here – who knows?! However if you look at several components of the Index they have all grown over the last 3-4 years and if the Index levels have not gone up the P/E of the Index has come down substantially. Also given the current slump compared to markets levels of close to 18k just few weeks ago there are relative bargains now. Considering a very long horizon it should not make a difference when you switch to Equity. IMO, sooner the better. May be when the markets (your NAV) specifically has gained substantially you can consider moving a small part of the gains to a Balanced fund. Forget the Debt funds in ULIP. You have much better options in Debt outside the ULIP.

    And – I hope you have a substantially good reasoning why you need this ULIP at all. Most and almost all ULIPs are usually a drain of money.

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