by Mr. V. Viswanand, Max Life Insurance
Investment horizon for your objective..
If you have medium term goal (5 to 10 years), you could invest in funds - Unit Linked Insurance Plan (ULIP) that are conservative, as these funds will ensure a decent return and no loss of capital.
However, if you want to invest for a longer term (greater than 15 years), investing in an aggressive fund is advisable as aggressive funds have a better chance of doing well in the long term.
Balanced funds are ideal for investors with a mid (10 to 15 years) to long-term investment horizon.
Your age and risk taking capacity:
 |
| Mr. V. Viswanand Head - Products Solutions Management, Max Life Insurance |
Typically, a person of 30 years of age should invest 60 % to 70 % of her / OR his money in equity-oriented funds, while a person of 50 years of age should invest 50 % to 60 % in conservative funds.
Your risk appetite..
The appetite for risk may differ from person to person, irrespective of the age or the life stage. Even a young investor who is not comfortable with volatility & is risk averse should not invest a majority of their savings in equity funds. Today, life insurers offer various mechanisms to ensure that the impact of volatility can be reduced.
One such mechanism is systematic transfer of funds that ensures that the consumer's investment hits the market in 12 equal instalments. It works on the concept of `rupee cost averaging' and thus makes the volatility in the market work to one's advantage.
Another mechanism to contain impact of volatility is dynamic fund allocation that enables an automatic rebalancing of portfolio keeping in view the risk appetite of the customer at different stages of life.
Under dynamic fund allocation, the premium paid by the customers & the policy fund is dynamically allocated in debt & equity at a pre-determined percentage in the pre-determined funds based on the years remaining for maturity.
This helps strike a right balance between risk and return throughout the policy tenure.
Mr.V. Viswanand Head - Products solutions management, Max Life Insurance
Mr. V. Viswanand is a BITS Pilani, Master in Management Studies and joined Max Life Insurance after working in the sales and branch management function of ANZ Grindlays Bank for about 10 years
A founder team member, Mr. V. Vishwanand joined the company in November 2000, and set up the company's Agency distribution channel in South And East India, and thereafter launched the Bancassurance and Direct Sales Distribution channels.
Over the past 6 years, both channels have evolved to become significant strategic contributors to Max Life Insurance growth. Today, the Bancassurance channel has established exclusive tie-ups with more thanr 30 banks with a network spanning abover 1750 branches, including Axis Bank, Yes Bank, Barclays Finance, top Urban Cooperative Banks.
No comments:
Post a Comment