markettrend766
20-10-2008, 05:48 AM
The stock market has lost its shine but unit linked insurance policies (Ulips) are still attracting the investors. According to Mr Sanjay Tripathy, executive vice-president, HDFC Standard Life, “In 2007-08 out of the total investments in the life insurance sector, Ulips attracted 60 per cent and rest of the 40 per cent was in the conventional policies.”
He said, “The trend has continued in the last six months as well, in spite of the collapse of the stock market. In fact, Ulips are far more attractive as stocks are cheaper and you could earn good returns if the investment horizon is of 15 to 20 years as is in the case of insurance products.” Mr Tripathy said, “The Ulips have an advantage against the mutual funds on account of their structure. Normally inves-tments in the mutual funds are made with a horizon of three to five years, and the Ulips are designed for investment horizons of 15 to 20 years.”
He said, “If you stay invested for such a long period then history suggests that the ups and downs of the stock markets do not hamper you.” When the stocks are at lower levels mutual funds may face selling pressure and at the same time insurance companies get the advantage of buying the stocks at cheaper levels, Mr Tripathy said.
He said, “The trend has continued in the last six months as well, in spite of the collapse of the stock market. In fact, Ulips are far more attractive as stocks are cheaper and you could earn good returns if the investment horizon is of 15 to 20 years as is in the case of insurance products.” Mr Tripathy said, “The Ulips have an advantage against the mutual funds on account of their structure. Normally inves-tments in the mutual funds are made with a horizon of three to five years, and the Ulips are designed for investment horizons of 15 to 20 years.”
He said, “If you stay invested for such a long period then history suggests that the ups and downs of the stock markets do not hamper you.” When the stocks are at lower levels mutual funds may face selling pressure and at the same time insurance companies get the advantage of buying the stocks at cheaper levels, Mr Tripathy said.