Unit-linked insurance plans (ULIPs) are becoming more and more popular in India, especially with younger investors.
IRDAI regulatory modifications have compelled insurers to offer more affordable and transparent ULIP plans.
Investor interest in ULIPs has increased due to the Indian equity market’s ongoing strength, particularly among younger investors.
ULIPs give investors the ability to modify their strategy by providing market-linked returns and the freedom to move between fund options.
ULIPs, however, have a 5-year lock-in term that is required, so investors must be ready for market volatility.ULIPs are ideal for anyone with a ten- to fifteen-year investment horizon; risk-averse investors and those looking for more liquidity should look into other choices.
1. What are the key regulatory changes that have impacted the ULIP market in India?
2. How has the performance of the Indian equity market influenced the popularity of ULIPs?
3. What are the potential drawbacks of investing in ULIPs that investors should be aware of?
4. Who are the target investors for ULIPs, and what are the recommended investment horizons?
