In India, linked policies (ULIPs), insurance policies are units that combine reporting of risk in investing in the stock / bond markets. In fact, they are designed to function like normal insurance and mutual funds.

A review of the investor obtains ULIPs in some types of portfolio investment, he / she chose. The policy usually pays on the basis of market returns at the end of the period insured. Therefore, it is aInteresting, since a great savings vehicle can cover.

ULIPs Features include:

1st units are allocated under ULIP schemes net asset value (NAV) declared a regular basis, like a mutual fund

2nd Investors can use other types of investment portfolios - Capital growth, balanced and debt funds, etc., can move across portfolios, investors, usually at a nominal cost

3rd Investors may be as a lump sum (single premium) or payments to invest on an annual basis,half-yearly, quarterly or monthly. premiums can change the course of life ULIP

4th Investments classified under § 80C of the Income Tax Act. Maturity proceeds from ULIPs are tax free. There are no long-term capital gains tax and 10% of short-term capital gains on shareholdings in ULIP. To finance long-term debt is capital gains tax of 10%, while that of short-term marginal tax rate investor.

5th However, fees charged by insuranceCompanies can be very confusing - so, investors should compare them with similar funds to see if the costs are reasonable.

Despite their interesting structure and potential benefits offered to investors to understand clearly the types of portfolio performance of fund managers and cost / fees before investing in ULIPs.

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