Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Asset Allocations in ULIP - Know the Top Benefits

ULIP plans not only give the benefits of investment and market-related returns in one plan, but they also offer the benefits of asset allocation, which we shall discuss in detail.

  • Apr 27, 2022

ULIPs are becoming a popular way to invest money in various assets including stock, debt, and money market funds. The policyholder pays a certain amount, called a premium, from which a portion is assigned to various fund possibilities, and the advantages of the investment are realized. Moreover, when purchasing ULIP, an individual does not need to acquire a separate life insurance policy because it is incorporated in the plan.

ULIP plans not only give the benefits of investment and market-related returns in one plan, but they also offer the benefits of asset allocation, which we shall discuss in detail.

Benefits of Asset Allocation in ULIP

  • Profitable Returns

People who do not efficiently arrange the allocation of funds tend to invest without planning. It also makes it difficult for them to decide whether the return on investment is adequate to meet their financial objectives. On the other hand, a few investors are too ambitious or overly cautious and make investments appropriately.

You’ll be able to estimate how much return on that investment you may expect depending on your appetite for risk with the right skills for an asset allocator fund.

  • Risk Mitigation

Every investor will make investment plans and portfolio allocation based on their previous investing experiences and tolerance for risk. For example, if you’ve had a good return on past investments, you might be ready to take a bigger risk by investing in equity-oriented funds. On the other hand, if your assets have not produced satisfactory results, you may want to try investing in fixed-income products such as a fixed deposit or recurring deposit.

Your previous investing selections can aid you in following a correct asset allocation strategy, helping you to accomplish your financial objectives even more easily. Thus, asset allocation will help you in reducing investment risk and increasing your confidence in accomplishing the desired goal.

  • Asset Allocator Fund Tax Benefits

Investments in ULIPs qualify for a tax deduction under section 80(C), and the policy returns are tax-free upon maturity as per section 10 (10D) of the Income Tax Act.

  • Aligned Timeline

Aside from your risk appetite, the time frame is an important consideration in asset allocation. The timeline element will assist you in determining which asset type you should invest the majority of your funds in.

It’s worth noting that the longer your time frame, the more you can invest equity funds and a small amount in debt funds for secured returns.

  • Market Fund Benefits

Asset allocation is a continuous process, not a one-time event. Most ULIPs now allow policyholders to move funds up to a set number of times per policy year. As an investor, you can utilize this feature to match your investments with market volatility. For example, if the markets are trending bullishly, you may raise your equity allocation. In contrast, if the markets are going bearishly, you could transfer your money to debt funds.

To summarise, after learning about the advantages of allocation of funds in ULIPs, it is clear that this plan offers several advantages. However, you must conduct thorough research before making important decisions about your portfolio allocation.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Safe Investment Options with High Returns for FY 2018-19

Building wealth through regular investing

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

How to Fulfil Your Financial Goals in the Next 10 Years?

Creating a second source of income with life insurance

Can ULIP Policy be Transferred?

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

Investments Options to Buy a house in India

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

What is the Time Value of Money (TVM)?

Is the ULIP Policy Surrender Value Taxable?

Why Should I Invest in ULIP?

What are the Best Investment Options for Students in India?

Difference Between Passive and Active Investing

4 Benefits of ULIP Fund-Switching Feature

ULIP vs FD - Which is Better and Why?

How to Plan your Investment to Achieve Periodic Financial Goals?

Got a Salary Hike? Here’s How to Plan your investment further

What are Some of the Safest Investment Options in India?

How to Calculate Your ULIP Returns?

Difference Between ULIP and Endowment Plan?

Is This The Right Time To Invest In ULIP? Why or Why Not?

Short Term and Long Term ULIP Plans for Wealth Creation

Different Types of Endowment Plans

Corporate Bonds: Meaning, Types & Benefits

यूलिप प्लान में परिपक्वता लाभ क्या हैं: फंड वैल्यू सम एश्योर्ड या ओनली फंड वैल्यू?

Factors Affecting Stock Markets

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Top 10 Investment Strategies to Create Wealth

What is Compound Interest, And How Do I Calculate it?

Why Do You Need A ULIP Plan - All You Need To Know

Why Should You Build an Emergency Fund?

How To Diversify Portfolio In 2023?

Do You Know the Difference Between Savings and Investment?

How to Plan Your Child's Education - A Step-by-Step Guide

What's Better for Your Child's Education? Child Plans or Mutual Funds?

ULIP Plan as a Gift

What is NAV in ULIP, and How is it calculated?

Top 5 Investment Options in 2022 for Healthy Returns

Savings Plan for Grandchildren

8 Important Tips to Maximize Gains with ULIP Investments

ULIPs Investment – A Boon or Bane?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Why ULIP is Better Investment for Long-Term Wealth Creation?

Are Gains from ULIP Sale Taxable?

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Best One-Time Investment Plans in India

A Step-by-Step Guide: How To Make An Investment Plan?

6 Important Tips to Maximize Your Gains with ULIP Investments

Best Investment Options in India in 2022

What is ULIP and Its Benefits?

Endowment Plan vs Fixed Deposit?

Benefits of ULIP as a Child Insurance Plan

What is the Importance of Saving Money?

What are Index Funds and How Do They Work

Receiving regular payouts at various stages of life

What Is Financial Planning?

Long Term Savings Plan - Best Savings Investment Plans in India

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

ULIPs: Suitable for all

Top 5 Principles That Need to be Followed for Wealth Creation

What is Direct Investment and its Types?

What are the Best Investment Options for Young Adults?

यूलिप के फायदे और नुकसान क्या हैं?

ULIP Benefits You Can Avail from Early Investing

Learn About Safe Investments with High Returns in India

8 Charges in ULIP That You Must Know

ULIP NAV Meaning & How is the Return Calculated in ULIP

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

How to Manage Inheritance Money?

Four Financial Lessons from The Vedas on Living Life to The Fullest

What are the Best Investment Options For Females?

What is a Savings Plan and What are is Benefits?

Early Investing and the Power of Compounding

Importance of Portfolio Management

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

How Does an Endowment Plan Work?

What is ULIP Plan, and How Does it Work?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

What are the Best Short-Term Investment Plans with High Returns?

यूलिप के फायदे (Benefits of ULIP in Hindi)

Learn About Safe Investments with High Returns in India

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Which are the Best ULIP Plans in India for Children?

Why Should Parents Invest in Endowment Plan?

Are Investment Returns Guaranteed in a ULIP?

How to Cancel ULIP Policy?

Here's Why it's a Good Time to Explore ULIPs as an Investment

What are Mutual Funds?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

ULIP as an Investment for Your Child

Everything You Must Know About ULIP Riders

Which is a Better Investment - Mutual Funds Or ULIP?

What is Money Management? Definition & Example

How to Use Recurring Investment Strategies to Build Wealth?

Difference Between Guaranteed Savings Plan and ULIP

Why are ULIPs One of the Best Tax Saving Instruments?

How Much Wealth Can You Create from ULIP in 10 years?

What is Equity Mutual Funds: Meaning, Types & Benefits

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

Planning Financial Goals and Objectives of Financial Planning

The lesser-known facts about ULIP policy that customers should be aware of?

The Importance of Starting Early: Securing Your Child's Future with a Child Education Plan

How to Make Your Financial Portfolio?

What are Financial Assets & their types?

Can ULIP Help in Achieving Short-Term Financial Goals?

What are the Best Investment Options for Beginners or Amateur Investors in India?

What are the Advantages and Disadvantages of ULIP?

Best Investment Options to Cover Your Child's Education

How To Track ULIP Performance?

वित्तीय संपत्तियां और उनके प्रकार

Are Money Back Policies Helpful? A Complete Guide

What is a Child Money Back Plan, and How Does it Work?

What is SIP Calculator, And How Does it Work?

How To Invest Money In ULIP?

Best Investment Plans for Children - Secure Your Child's Future

Planning for Your Child's Higher Education? Explore These Investment Options

How to Plan Savings from Salary?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

How to Increase Net Worth Along with Family Protection

लॉयल्टी एडिशन क्या हैं, और वह यूलिप में कैसे काम करते हैं?

Why Are ULIPs Called Flexible Investments?

Things to Know Before Buying an Endowment Plan

What is ULIP Renewal?

What are Tax-Deferred Savings Plans?

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

How to Manage Your Portfolio Like a Professional?

How to Choose the Best ULIP Plans to Invest in 2022?

What is a Credit Score and How Can Insurance Help You Improve it?

Customising investments to manage your wealth

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

Successful Financial Planning for Urban Women

Why Should You Invest in Term Insurance And ULIP?

How Do One-Time Investment Plans Work?

How Can ELSS Funds Help You Save Tax & Create Wealth?

Rate of Interest on Different Investment Plans in India

What are loyalty additions, and how do they work in a ULIP?

Top 10 Investment Plans Available in India

How to Start Saving Money in 10 Simple Ways?

Investment Options for NRIs in India