By Mr. V. Viswanand, Max Life Insurance
Here
are a few points that can help you choose the right fund category in your Ulip:
(
1 ) Investment horizon for your Objective..
If
you have medium term goal (5 to 10 years), you could invest in funds 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.
Balanced
funds are ideal for investors with a mid (10 to 15 years) to long-term
investment horizon.
 |
V. Viswanand, Max Life Insurance |
(2)
Your age and risk taking capacity..
Typically,
a person of 30 years of age should invest 60% to 70% her / his money in equity-oriented funds,
while a person of 50 years of age should invest 50% to 60% in conservative
funds.
(3)
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 and 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.
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
this, the premium paid and the policy fund is dynamically allocated in debt and
equity at a predetermined percentage in the pre-determined funds based on the
years remaining for maturity.
About
the author..
Mr. V. Viswanand is Head (Products
Solutions Management) at Max Life Insurance
Mr. V. Viswanand Max Life Insurance
Director & Head of Products and Persistency
Max Life Insurance
Expertise : Insurance
ABOUT Mr. V VISWANAND
|
V. Viswanand, 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 9 years. A founder team member, V Viswanand joined the company in Nov 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 six 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 over 30 banks with a network spanning over 1750 branches, including Axis Bank, Yes Bank, Barclays Finance, top Urban Cooperative Banks. On the other hand, Max Life Insurance Direct team (Customer Advisory Team) has completed it`s transformation to predominantly focus on SOW initiative on Max Life Insurance`s DCS customer base and inbound leads.
Since May 2008, Mr. Viswanand has also been leading a core group to improve the company`s Persistency ratio and Renewal Income growth, by driving a cross-functional agenda across distribution channels, renewals and recovery teams. Today the company has an industry best-in-class conservation ratio of more than 80 % for the fifth consecutive financial year. Since January 2010, Mr. V Viswanand has taken charge of the Product Management Group and is responsible for new product development, launch and life cycle management.
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