Most of the life insurance companies offer multiple options of funds to suit the investment needs,
risk apetite and time horizons for the policyholder.
This kind of fund is suitable for the people with low to medium
risk apetite.
Multiple Options for investment: To suit various policyholders with a different
risk apetite, unit linked insurance plan offers multiple fund options varying from debt, equity, balanced fund.
This kind of fund is suitable for the people with high to medium
risk apetite.
Investment is done as per the asset class chosen by the policyholder based on
his risk apetite.
It is important to buy a unit linked plan based on your goal setting,
risk apetite and for a longer tenure to reap the optimum benefits under this investment cum insurance plan.
Switching allows you to change your existing proportion of investment from one fund to another due to the market fluctuations, your changed
risk apetite, etc..
After reading your articles I realised that best way for me would be mutual funds as I have long term plans, have high
risk apetite but lack the time need to be given if investing in stocks.