I am 25 years old and planning to buy a unit-linked insurance plan (Ulip). Should I go for the growth option? What are the risks associated with such plans?—Sameer KumarBuying a Ulip is an investment decision and you should understand the market risks.
You can also consider other non-insurance investments. The growth option in a Ulip is, typically, equity-oriented. Such schemes have over 65% or a majority portion of the funds in equity.
The remaining is in government and corporate debt instruments.Equity entails higher risk of market volatility and investment returns.
For intervals, it can have negative returns. However, over a long 10- to 15-year period, equity has been known to deliver relatively better returns.
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