A glance at ULIPs after Sensex reaches 10,000-mark

The impatient wait of seeing the market to reach its all time high has brought a smile to the investors. With Sensex crossing the magical 10,000-mark, the Unit Linked Insurance Policy (ULIPs) holders are just too happy to get the best of both insurance and the stock market. With the market plunging and rising, it took the breath away of the investors with its robust performance when it reached the five-digit figure for the first time.

An eager wait has brought good returns for ULIP holders and it’s worth the risk that has gone in. The investors have found all new reasons to celebrate. There are many like you who are captivated with the bull market and crave for being a part of it. But are in a dilemma whether to enter the market through ULIPs at this time or not. Well you need to know that you cannot really clock the entry and exit time of the market. Being a part of the market demands to have a risk appetite. The returns have been the most attractive aspect and hence there are more and more individuals making a bid for it.

Follow the experts’ advice and you can minimize the risks to a greater extent. First of all stay invested for a long-term than entering the market with short-term exit plans. With the IRDA’s new introduced change of a minimum three year lock-in period for ULIPs, an investor cannot make an early exit until the specified term has been fulfilled. Ideally the investor should stay invested for a minimum of 5 years. Another feature that you can make use of is Systematic Investment Planning (SIP) like the one available in mutual funds.

Depending on the risk factor that you are ready to digest make a plunge in the market. Don’t get carried away with the short-term gains. Moreover your premium and administrative costs needs to be recovered which is possible only if you stay invested for a long time.