When we talk about market investments, we talk about portfolio management. The new-age or 4G ULIPs provides customers an option of 7-8 listed funds which can be broadly categorized as Liquid Funds, Equity Funds, Balanced Funds and Debt Funds. Depending upon the risk appetite and market fluctuations, an investor may choose to invest in high risk, moderate risk and low risk funds. The switching between these funds is also free of charges in 4G ULIPs.
Here is a transcription of the video in which, Anuj Mathur, MD and CEO, Canara HSBC Oriental Bank of Commerce Life Insurance, is talking about the portfolio management option in detail.
Vivek Law – One of the biggest benefits of 4G ULIPs is the whole asset allocation piece. I think earlier there used to be a certain limit towards the switches across the funds i.e. there was a limitation to move from one particular fund to the other fund in the same scheme. As I understand that’s also been completely liberalized you can do as many switches as you want. If that is the case then you can move from equity to equity mid-cap or to a large cap and so on that too without paying any charges and taxes.
Anuj Mathur – Absolutely! We call it a portfolio management option where the customers can choose which fund to go for. There are seven funds which are available, so depending upon their risk appetite customers can choose which fund to go for. A customer can also opt for various options, let’s say the policy is for twenty-five years and near the maturity he wants to move from equity to debt funds then there is a facility which provides a customer with such an option. There is also an option where a customer can decide that 10% of my fund will go into debt, 50% will go into balance and the remaining 40% will go into equity. So, all these options are available there and it’s very convenient for the customer. Anytime in future, if he/she wants to change the option, he/she can log in to the customer portal and can make whatever changes are required
We have given all these options considering customer needs which are there from time to time. When a customer grows older he or she can actually decide to go for the fund in which the debt exposure is higher. The benefit of online is that you can decide what you want to do and the complete information is available. We also have a call center to help and assist our customers in terms of their requirement.
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