#ulipreturns
It has been widely believed that Ulips are better than other financial services products over a long-term horizon. However, the recent changes to LTCG tax have made Ulips a compelling proposition for relatively shorter-term horizons as well. There are other reasons why Ulips are better. First, they offer dual benefits of long-term investment and protection cover. The protection cover serves as a safety net for the family. Second, unit-linked products offer the flexibility to provide individuals the opportunity to switch between different funds—equity, debt or balanced funds—depending on one’s view of the markets, without invoking a tax liability. Finally, Ulips inculcate the discipline to save regularly for the long term.The only shortcoming of Ulips is the inability to liquidate funds in the first 5 years. But, as most people invest with a time horizon of longer than 5 years, Ulips are an attractive investment vehicle to meet long-term investment goals.
