Unfortunately before knowing the pros n cons of ULIP, i’ve ended up taking an SBI ULIP. i’m paying 40,000 yearly. but current trend of the market is very low. i m allowed to make 1 free switch for my fund every month.
Currently my funds 50% in equity & 50% in bonds. i’m getting confused to choose where to switch my funds? there are so many categories listed as below. Can you help to switch to get better returns?
SBI Smarty Wealth Builder
- Equity optimizer
- Money market
- Top 300
May I know the name of ULIP, commencement date and the remaining tenure (term) on your ULIP policy?
What are the current returns on it?
Policy name: SBI life smart wealth builder
Tenure : 5 years have to pay premium of 40k/year (3 premiums paid). cover valid for 10 years
Returns: 4.2% (loss current scenario)
Current investments of funds: 50% in bonds and 50% in equity
If you can remain invested for next 7 years, can afford to take risk with an aim to get better returns, you may consider switching to ‘Top 300’ or ‘Equity Optimizer’ Fund option.
I am assuming that your current allocation is ‘Balanced Fund’.
Related article :
Mutual Funds Vs ULIPs – Which is better? | Post Budget (2018) LTCG Tax proposal on Equity Mutual Funds & Shares