The thumb rule for investment is-INVEST RIGHT. However, investment comes with a share of risk as well. We always prefer putting our money where we find ourselves at a minimal risk. To ensure that your financial portfolio is well-balanced with the right type of investment tools, you should consider the products that offer lucrative returns. Given that, among the plethora of investment options in the market, selecting the right option can be a herculean task. However, among the various investment options, ULIP is still considered as one of the worthwhile options.
The popularity of Unit Linked Insurance Plan, abbreviated as ULIPs has increased hugely among the investors with the newly introduced Long Term Capital Gains (LTCG) tax in the Union Budget 2018. These innovatory life insurance products come with the triple benefit of investment, insurance and tax savings.
ULIPs are the perfect options for investors with high or low risk appetite. ULIPs link to the capital market and offer flexibility to invest in either equity or depth. Under this investment option, a share of the collected premium is utilised towards insurance benefit, while the other is utilised towards investment component. The best part is that the insured is allowed to select from a variety of fund option(s) to invest according to their investment goals.
When investing on a right fund under ULIP can go a long way in assuring lucrative returns, the sheer array of fund options may leave the investors in the state of confusion. By saying that, we’ve compiled a list of best 5 ULIP funds that assure good returns in FY 2018-19.
Best ULIP Investment Plans for FY 2018-19
|SL No.||Insurer||ULIP Option||Return (2017)|
|1||HDFC Standard Life||Balanced Fund Life Super II||21.73%|
|2||Future Generali Life||Future Dynamic Growth Fund||21.22%|
|3||Bajaj Allianz Life||Asset Allocation Pension Fund||20.04%|
|4||Kotak Mahindra Life||Balanced Fund||20.41%|
|5||Canara HSBC Life||Balanced Fund||21.75%|
*Note: This list doesn’t intend to rank insurers and funds (mentioned herein) and is in no particular order.
HDFC Standard Life- Balanced Fund Life Super II
ULIP products offered by HDFC Standard Life Insurance Company are the most preferred investment options among the investors. These insurance plus investment schemes allow the investor to experience a good return with comprehensive life coverage. Among the popular ULIP plans offered by HDFC Life include:
- HDFC Life capital Shield
- HDFC SL Crest
- HDFC Life Click2Invest Plan
- HDFC Life ProGrowth Plus
- HDFC Life Pension Super Plus
- HDFC SL YoungStar Super Premium
- HDFC Life ProGrowth Plus
- HDFC SL ProwGrowth Flexi
- HDFC SL ProGrowth Maximiser
- HDFC SL ProGrowth Super II
HDFC ULIP plans allow the investors to pay the fund value only after the ULIP policy matures. All the ULIPs of HDFC Life offer variety fund options for the insured to select from. But among them, the fund option that promises good returns in FY 2018 and 19 is ‘Balanced fund life super II’. This fund is popular for high return option with comprehensive coverage, in a short span of time. In 2017, the rate of interest offered was 21.73%.
Future Generali Life- Future Dynamic Growth Fund
Future Generali Life Insurance Company is another insurance provider that is well-known for its ULIP products. The various ULIP plans introduced by Future Generali are the ideal choice for average investors with medium or long-term investment goals. Among the various investment plans offered by the insurer include:
- Future Generali Pramukh Nivesh ULIP
- Future Generali Dhan Vridhi
- Future Generali Easy Invest online Pla006E
- Future Generali Bima Advantage Plus
- Future Generali Wealth protect plus
- Future Generali Bima Gain
These ULIPs offered by Future Generali come with a wide choice of fund options to choose from. Among them ‘Future Dynamic Growth Fund makes a cut above the rest, which majorly invests in equities. The returns are comparatively higher, as it showed 21.22% absolute returns in the year 2017.
Bajaj Allianz Life – Asset Allocation Pension Fund
Baja Allianz is counted among the pioneering insures not only for the insurance solution but the investment options on offer. One such product is ULIP plans of Bajaj Allianz. These are utterly popular among the investors as the product with best returns. The ULIP plans of Bajaj Allianz are specially designed and conceptualised to meet the requirement of investors with different risk appetite. The ULIPs are the best options for people with short or long-term investment goals. These include:
- Goal Assure
- Fortune Gain
- Future Gain
- Retire Rich
- Goal-Based Saving
- Principal gain
- Future Wealth Gain
Bajaj Allianz Life ULIP plans also come with a different types of fund options, allowing the investors to choose as per their requirements, budget or risk appetite. The ULIP plans are designed to cater to the needs of people at different life stages. Like those who are looking for a good investment option with a lucrative return can opt for Retire Rich ULIP option. This plan comes with amazing benefits such as death benefit and vesting benefit and ensures a secured future after retirement. Moreover, the various fund options offered has made it easier for investors to priorities their needs. Among them, the Asset allocation Pension Fund is worth someone’s money. It is well-known for offering high returns and this would be the perfect bet for the investors with a high-risk appetite. The returns in the year 2017 are offered at 20.04%.
Kotak Mahindra Life- Balanced Fund
ULIP plans offered by Kotak Mahindra have continuously been gaining popularity among the investors. Kotak Mahindra ULIP plans are week-known for handsome returns and comprehensive coverage. Similar to other ULIP policies, Kotak Mahindra Life ULIPs also spare a part of collected premiums towards various funds in the market to help the investors gain good returns. The most sought-after ULIP plans of Kotak Mahindra include:
- Kotak Platinum
- Kotak Single Invest Plus
- Kotak Invest Maxima
- Kotak Wealth Insurance
- Kotak Single Invest Advantage
- Kotak Ace Investment
Although all the ULIPs plans of Kotak Mahindra are well-famous, Kotak Ace Investment plan is one of the bestselling plans in the Indian investment market. The plan comes with a dual benefit of investment and insurance with a rewarding return. Under Kotak Mahindra ULIP plans, ‘balanced fund’ is the most sought after, which ensures a quick and high return on the capital amount. The rate of returns offered by this fund in the year 2017was 20.41%.
Canara HSBC Life Insurance- Balanced Fund
One of the leading insurance companies when it comes to offering ULIP plan is Canara HSBC OBC LI Company. The ULIP plans of Canara HSBC OBC are well known for offering comprehensive coverage and lucrative returns. Simply put, the ULIPs offered by the company are the most sought-after product in the market. Among the most famous ULIP products of Canara HSBC OBC LI Company are:
- Smart Lifelong Plan
- Grow Smart Plan
- Platinum Plus
- Dream Smart Plan
- Shubh Labh
- Smart One Pay
- Secure Bhavishya Plan
- Titanium Plus Plan
- Invest 4G
Canara HSBC OBC Life Insurance Company’s ULIP plans come with varied fund options to select from. However, among them the one that has outweighed the others in terms of return is ‘Balanced Fund’.
This fund has been performing well since last couple of years and has continuously been generating higher returns. The return rate offered for the year 2017 was-21.75%.
It’s Your Turn Now!
So, here you have got the top 5 ULIP options that assure lucrative returns. Nevertheless, before you jump into a decision or start investing in one of the above, a thorough research of the market is essentially required. No doubt, with the versatile feature and uniqueness of providing the triple benefit of life cover, high return and tax savings, ULIPs are sure-shot the best investment options one could ask for. However, as the true success of investment lies in proper strategizing, a strategic decision is what all you require.