Latest news with #ULIP
Fashion Value Chain
30-05-2025
- Business
- Fashion Value Chain
National Industrial Corridor Development Corporation (NICDC) Honoured with Udyog Vikas Award
Palakkad Industrial Smart City to reshape Kerala's industrial landscape: Union Minister for State for Heavy Industries, Public Enterprises, and Steel, Shri Bhupathi Raju Srinivasa Varma Union Government committed to developing Greenfield Industrial Smart Cities across India National Industrial Corridor Development Corporation (NICDC) was honoured with the Udyog Vikas Award during the Udyog Vikas event organised by Janmabhumi Daily, a leading news daily in the state of Kerala. The event was graced by the presence of the Minister of State for Heavy Industries, Public Enterprises, and Steel, Shri Bhupathi Raju Srinivasa Varma who highlighted the Union Government's steadfast commitment to developing state-of-the-art Greenfield Industrial Smart Cities across India. From left: Arvind Devaraj, Vishnu Sharma, Minister B.R.S. Varma, Vikas Goel & Rahul Jagadish at the Udyog Vikas Award during the Udyog Vikas event During his address, Shri Varma lauded the transformational potential of the Integrated Manufacturing Cluster (IMC) at Palakkad, stating that the project is poised to reshape the infrastructure and industrial landscape of Kerala and the broader southern region of the country. The event also featured a technical session focusing on the National Industrial Corridor Development Programme, providing in-depth insights into the strategic vision, planning, and progress of the upcoming Palakkad Industrial Smart City. A dedicated session by NICDC Logistics Data Services Ltd. (NLDSL) further elaborated on the innovative digital solutions being deployed through the Logistics Data Bank (LDB) and Unified Logistics Interface Platform (ULIP). The Palakkad Industrial Smart City, spanning 1,710 acres across Pudussery Central, Pudussery West, and Kannambra, represents a major milestone in Kerala's industrial development. Strategically located 21 km from Palakkad city, 120 km from Cochin, and 50 km from Coimbatore, the project offers seamless interstate connectivity and significant logistical advantages, positioning it as a key industrial gateway for South India. With robust multi-modal connectivity via road, rail, and air, the city is designed to attract high-quality investments and drive regional employment and innovation. Key project milestones include: 81% of required land already in possession. Environmental clearances for all land parcels granted on January 01, 2025. Letter of Award issued to Project Management and Construction Consultant. Finalization of EPC tender documents in progress. The event also showcased NLDSL's contributions to transforming India's logistics ecosystem. Since its inception in September 2022, ULIP has integrated 43 systems from 11 ministries, connected through 129 APIs and more than 1,800 data fields, empowering over 1,300 registered companies and enabling more than 100 crore API transactions. This technology-driven platform exemplifies Prime Minister Shri Narendra Modi's vision for a unified, efficient, and transparent logistics network in India. NICDC's recognition at the Udyog Vikas event underlines its vital role in catalyzing India's industrial transformation and enhancing the country's competitiveness in the global manufacturing and logistics arena.
Hans India
28-05-2025
- Business
- Hans India
ULIP for Youth: Why It's Gaining Popularity Among First-Time Investors
If you are stepping into the world of investing for the first time, you probably have a lot on your plate right now – saving goals, budgets, and a list of jargon that you don't understand. But here is some good news: you are not alone, and you are certainly not out of smart investment options. Among these smart options, one financial plan that has quietly gained popularity among new investors like you is the unit-linked insurance plan or the ULIP. You can think of ULIP as a two-in-one deal – insurance coverage and market-linked returns under one scheme. The plan is flexible, tax-efficient, and completely customisable. And with access to handy online tools like the ULIP calculator, you do not need to be a finance guru to figure it out. This article will be a guide to understanding why more and more new investors are leaning into unit-linked insurance plans – and why it might be the ideal plan for you as well. Why Young Investors are Falling for ULIPs? Let's be honest, starting to invest can feel like you are expected to suddenly understand things that sound suspiciously like spells. ULIP, or unit-linked insurance plan, may have sounded like just another acronym thrown around by finance gurus, but once you get what it does, you'll see why so many young investors like you are jumping in early. So, what's the big deal? Why are ULIPs catching the eye of a generation that prefers everything instant, digital, and customisable? 1. The Best of Both Worlds If you are torn between buying life insurance to cover your dependents and trying to invest in a mutual fund to grow your wealth, ULIP might be the sweet spot for you. A section of your insurance premium goes toward life coverage, and the rest amount gets invested in market instruments – equity, debt, and other hybrid options. 2. Tax Benefits With ULIPs, the amount that you pay as a premium qualifies for tax deductions under Section 80C up to a limit of Rs. 1.5 lakhs, and the maturity benefit can also be tax-exempt based on some scenarios as per Section 10(10D). If your annual premium is above 2.5 lakhs, the gains on the premium amount will be charged as per capital gains. However, if your annual premium amount is less than the limit mentioned, the total maturity amount will be tax-exempt. 3. Total Control Over Risk Appetite You can choose the fund's investment aspect as per your risk appetite. Prefer slow and steady? Go with debt instruments. Can you afford a little risk? Consider more equity investments. Can't decide? Mix them both and go for a hybrid approach. You can even switch between funds if your financial goals or risk tolerance change over time. 4. Low Entry Barriers, High Growth Potential 'ULIPs are only for rich people' – this is a common misconception. Most entry-level unit-linked insurance plans are completely wallet-friendly. You can start with premiums as low as Rs. 1000 per month. Most plans come with a lock-in period, so these policies are long-term by design. Your small contribution can grow into something special in 7 to 10 years, given that you are consistent with the premium payment. 5. Transparency and Digital Convenience The new generation loves to track their progress in every field – be it fitness, food, or even sleep. ULIPs further complement this by offering digital convenience regarding financial progress tracking. You can monitor your fund performance, switch options, and calculate maturity amount projections with just a few clicks. Everything is transparent, and you have full control over everything. 6. Built-in Financial Discipline Another commotion misconception among new investors is that the lock-in period is a bad thing. In most cases, the lock-in period is set to 5 years. And trust us, your future self will thank you for not withdrawing early. It keeps you from panic-selling every time the market dips or when someone tells you to buy gold and invest in fixed-income instruments instead. Conclusion Getting started with investing can feel much like navigating a jungle of jargon. In such situations, ULIP might just be that shortcut that you require to get to your financial goals in a straight line. The plan helps you cover your base points – wealth creation, setting up a financial safety net, and tax savings – without drowning in them completely. All you need to do is to stay in control, switch your funds to separate plans whenever needed, and watch your money grow with the magic of compounding. Now, if you are a newbie, you can use tools like an online ULIP calculator to align your financial goals with your policy choices and make smart choices. So, don't wait for a 'perfect time' to start. The sooner you start, the more your money has time to grow. Trust us, your future self will thank you for this.
Mint
22-05-2025
- Business
- Mint
As a Singaporean living in India, should I buy global health insurance?
NRIs and high-networth individuals are increasingly choosing global health insurance. It is an effective way to get treatment anywhere in the world. However, these policies tend to be more expensive than local plans. The higher cost is driven by expensive geographies such as US. Since you do not anticipate staying in countries other than Singapore & India, it would be better to keep your local plans. Domestic plans provide access to localised service. They give you access to a wider network of hospitals, and a quicker claims process. Another significant advantage of domestic plans is that our regulations are policyholder-friendly, with benefits such as life-long renewability and no claim rejections allowed after five years. For your short business or leisure trips, you could buy travel insurance. Travel insurance plans provide coverage for emergency hospitalisation and medical expenses. Your understanding is correct. Costs, especially recurring ones, of a ULIP plan can significantly hamper the returns of any investment instrument. There are three key recurring expenses for a ULIP. The first recurring cost is the fund management fee, which depends on the underlying fund. It tends to be high for equity-oriented funds and low for debt funds. The fund management charge for an equity fund is around 1.35%. Then there is the policy allocation charge, which could be between 0 and 6%. Third is the policy admin charge. This is generally 0 to 0.9%. However, the regulator puts a cap on the total charges allowed. This cap depends upon the policy tenure. Charges allowed outside the cap are mortality costs – the cost of providing death cover. Generally, as the investment corpus grows, the sum at risk falls. So, for long-term plans the mortality costs tends to be negligible over time. Abhishek Bondia is a principal officer and managing director at SecureNow Insurance Broker Pvt. Ltd.
India Today
07-05-2025
- Business
- India Today
ULIPs, mutual funds or stocks: What's the best for long-term wealth creation?
When it comes to building wealth over the long term, people often come across three popular investment options: ULIPs (Unit Linked Insurance Plans), mutual funds, and stocks. But which one is truly the best for creating wealth over time? Let's break it down in simple terms. UNDERSTANDING ULIPs: A MIX OF INSURANCE AND INVESTMENT ULIPs are a mix of insurance and investment, meaning a part of your premium goes towards life insurance, while the rest is invested in various funds, like equity or debt. The key advantage of ULIPs is the insurance coverage that comes along with the investment. However, they have charges like mortality costs, higher fund management fees, and fund allocation fees. According Manish Kothari, CEO & Co-Founder, ZFunds, 'For ULIPs, the associated costs like mortality cost, higher fund management charges, higher fund allocation charges eat into investor savings. Also, ULIPs come with a minimum 5-year lock-in, making liquidity a challenge.' STRICT TERMS AND LIMITED FLEXIBILITY WITH ULIPS Also, ULIPs have stricter terms. 'Once you go in for a ULIP plan, you need to keep paying premiums without fail for three years or more before you can even take a withdrawal,' said Swapnil Aggarwal, Director, VSRK Capital. He added, 'ULIPs do not have the option to switch funds or AMC as frequently as mutual funds, either. You are well and truly stuck once you opt for a ULIP plan, and that is quite limiting during times of uncertainty in the markets.' STOCKS: HIGH POTENTIAL, BUT MORE RISK On the other hand, stocks are shares of companies listed on the stock market. Investing in stocks means you directly own a part of a company. Stocks can offer some of the highest returns over time, especially if you invest in growing companies, but they also come with more risk. Stock prices can be volatile, and short-term market fluctuations can lead to losses. Manish Kothari stated, 'For stocks, it is essential to plan the entry and exit prices. Making the right calls demands a combination of skill, research and time that the common investors might not have.' MUTUAL FUNDS: THE BALANCED OPTION FOR WEALTH CREATION This is where mutual funds have an edge. With mutual funds, you don't have to worry about market timing, and professional management helps reduce the chances of making costly mistakes. Swapnil Aggarwal, Director at VSRK Capital, agrees with this view, highlighting that mutual funds are superior to ULIPs due to their flexibility and liquidity. He mentioned, 'For long-term wealth creation, mutual funds are comparatively superior to ULIPS because of their flexibility and liquidity. While both ULIPs and mutual funds have similar overall returns, mutual funds give the investor greater freedom.' THE FLEXIBILITY OF MUTUAL FUNDS Unlike ULIPs, mutual funds allow you to invest or redeem your money at any time without being tied down for a certain period. 'With mutual funds, you have the option to invest or redeem your money at any time without being tied down for a certain period. You also have the choice of switching between the different funds or Asset Management Companies (AMCs) depending on your objectives or variation in the market,' he added. Manish Kothari, the CEO and Co-Founder of ZFunds, also believes that equity mutual funds are an ideal choice for long-term wealth creation. 'Equity mutual funds are best for long-term wealth creation as they help investors build a diversified portfolio across market caps and industries, that is managed by a professional fund manager. Having a diversified portfolio is crucial to mitigate the market risks and volatility,' said Kothari. COST-EFFECTIVENESS AND ACCESSIBILITY OF MUTUAL FUNDS Additionally, they are affordable, with fund management fees regulated and reduced as the fund size grows. You can start investing with as little as Rs 10, making them accessible to everyone, mentioned Manish Kothari. 'The open-ended design of mutual funds also enables additional investments and provides liquidity to investors. Thus, making them a more flexible option,' he added. WHICH IS BEST FOR LONG-TERM WEALTH CREATION? It really depends on your goals, risk tolerance, and investment knowledge. If you want a combination of insurance and investment, a ULIP might suit you, but if your focus is purely on wealth creation, mutual funds and stocks are usually the better options. Stocks might offer the highest potential returns, but they come with more risk and require more attention. Mutual funds provide a good middle ground with less risk and professional management. Ultimately, the best investment for you will depend on your personal financial goals and how comfortable you are with risk. Diversifying your investments across these options can also help you balance risk and return, ensuring that you're on the right path to building wealth over the long term.
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Business Standard
28-04-2025
- Business
- Business Standard
Market volatility nudges customer preference away from ULIPs in Q4FY25
The benchmark Nifty50 index fell almost 17 per cent amid sell-off by foreign investors, weak corporate earnings and global uncertainties due to the US tariffs Mumbai Listen to This Article Amid increased volatility in equity markets, customer preference is likely to have moved away from Unit Linked Insurance Plans (ULIPs) in the last quarter of FY25. For SBI Life Insurance and ICICI Prudential Life Insurance, the share of ULIPs in the product mix has reduced in the January-March quarter of FY25 (Q4FY25) from the year-ago period, while the share of traditional products increased. ULIP is an insurance product which offers both the benefits of investment and insurance to fulfil long-term goals. The premiums for ULIPs are divided towards life insurance coverage and the remaining part for investment in market-linked funds
