Will it be possible for the insurance company to give good returns on their equity linked products in the current turmoil of financial world. :?: :?:
Total Comments: 2
Posted: Mon Nov 24, 2008 08:42 am Post Subject: Equity Linked Products and their performance.
Taking care of the present scenario,one cannot expect to get a huge return on the investment. But that doen't mean that one should stop investing in equity linked products as its the perfect time to invest and use an equity linked policy just like a secured deposit. Besides the number of units one will get will be much higher which may give huge returns if its kept over a period of 5 to 6 years. Besides,its better to switch the funds and keep 70% of the fund in equity portfolio and the rest in debt instruments to keep a portion safe.
Posted: Mon Nov 24, 2008 09:49 am Post Subject:
Will it be possible for the insurance company to give good returns on their equity linked products in the current turmoil of financial world.
May be not but since the insurance companies don't promise a guaranteed return for the indexed plans, it may not affect them. The insured may receive 1%-2% of return on their funds, as minimum return.
The return may also depend upon the financial strength of the insurance company as well on the nature of the portfolio, but since the market meltdown is affecting all the sectors indiscriminately , all the funds may suffer losses.
Posted: Mon Nov 24, 2008 08:42 am Post Subject: Equity Linked Products and their performance.
Taking care of the present scenario,one cannot expect to get a huge return on the investment. But that doen't mean that one should stop investing in equity linked products as its the perfect time to invest and use an equity linked policy just like a secured deposit. Besides the number of units one will get will be much higher which may give huge returns if its kept over a period of 5 to 6 years. Besides,its better to switch the funds and keep 70% of the fund in equity portfolio and the rest in debt instruments to keep a portion safe.
Posted: Mon Nov 24, 2008 09:49 am Post Subject:
Will it be possible for the insurance company to give good returns on their equity linked products in the current turmoil of financial world.
May be not but since the insurance companies don't promise a guaranteed return for the indexed plans, it may not affect them. The insured may receive 1%-2% of return on their funds, as minimum return.
The return may also depend upon the financial strength of the insurance company as well on the nature of the portfolio, but since the market meltdown is affecting all the sectors indiscriminately , all the funds may suffer losses.
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