Close
Close

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

Close

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.

How To Track ULIP Performance?

Tracking the performance of your ULIP plan is as important as investing in it. Know how to track the performance for switching different types of funds.

  • Jul 04, 2022
  • 5,465 Views

Keywords: how to track ULIP performance, track ULIP performance,

Unit Linked Insurance Plan or ULIP is a very popular modern financial tool that people are opting for. It is a product that offers both insurance and investment in one product. Moreover, the investment part of the ULIP policy allows you to grow with the market by allowing you to invest in market-linked products like equity, bonds, debts, shares, etc.

Although, buying a ULIP policy is not rocket science, and your insurance agent will easily guide you through the process, managing one is something that you need to become an expert at. It is not a very tough thing and with the help of some expert advice, precautionary guidelines, and predefined strategies, you can easily buy and manage your ULIP policy.

How to track the performance of a ULIP fund

Another important aspect of ULIP is to understand how to track ULIP performance and what are the steps to track ULIP performance. Without learning ULIP performance tracking, there is no way you can manage your ULIP policy efficiently. In this article, we will discuss how you can track the performance of your ULIP plan.

Strategies To Ensure Safe & Secure ULIP Investment:

Before we move on further to discuss how to track ULIP performance, it is important to understand that there are certain strategies that every investor must follow for safeguarding their investment. This will help in keeping a check on risk factors and, at the same time, guarantee stable performance. So, if you are a ULIP policyholder, the following strategies will help you ensure a safe and secure investment in the market-linked ULIP funds.

Select the right fund

Your investment is all about your financial goals. Having the right investment is your path to achieving your goals. In ULIPs, you need to choose the funds. So, it is advised to make sure that you are aligning for funds that offer good long-term returns and have lower risk factors. Alternatively, based on your risk appetite, you can choose different types of funds as per your goal.

Fund switching

It is one of the best features of ULIP policies that an investor can use to minimize their losses or make profitable gains. A policyholder can switch between their ULIP funds based on the risk appetite and market trends to gain more profit or minimize loss. Although, it is advised that before making a fund switch, the policyholder must investigate the history of the fund and check its performance over the years. Generally, an insurance company allows as many as four free fund switches. You can make unlimited switches between funds by paying a nominal switching charge if your free switch limit is over.

Stay Updated

Since you are dealing with market-linked funds, it is advised to keep yourself updated about the market funds and trends. Based on the movement of the market and its outlook, the policyholder can adjust the ULIP investment strategy and change the allocation of funds.

Do not surrender your policy

A ULIP policy has a minimum lock-in period of five years. Also, the longer you keep the money invested in ULIPs, the better returns you can get out of it. Thus, to ensure that you make a good return, you should stay invested in ULIP for a longer-term period. Surrendering the policy before five years can incur discontinuation charges along with other penalties and thus, can lead to a loss.

How To Track ULIP Performance?

The key factors to calculate ULIP performance are the premium and the duration for which the premium is to be paid. Now you need to calculate the Net Asset Value (NAV) of your ULIP policy and compare it with the initial NAV to get the absolute return value. Here are the steps to be followed for calculating absolute return:

Step 1

Calculate Initial NAV and Current NAV.

Step 2

Subtract Initial NAV from Current NAV (Current NAV - Initial NAV = Absolute return).

Step 3

Multiply absolute return value by 100 to get the percentage value.

It must be noted that the absolute return percentage only indicates the performance of ULIPs in the short term. As the ULIP investment grows on compounding factors over a longer tenure, you might not get the true picture by calculating absolute return. So, to track the actual performance of your ULIP policy, you will have to calculate the compounded annual growth rate (CAGR) value of your policy. You can get a better estimate with CAGR value, but as ULIP is a market-linked product, and CAGR does not consider market volatility, you will not get an exact estimate. The absolute return percentage and CAGR are enough to paint a picture for you to decide on your next moves.

From this discussion, the two best things that you can take out are that ULIP is a great investment product if you stay invested in it for a longer tenure and regularly maintain its performance. Even under dire circumstances, you must try ensuring that your policy is intact and you are not thinking of withdrawing it. Instead, make a partial withdrawal and do not discontinue your ULIP policy.

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

Kotak e-Invest

Download Brochure

Features

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

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

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

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

Are Money Back Policies Helpful? A Complete Guide

Safe Investment Options with High Returns for FY 2018-19

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

How to Manage Your Portfolio Like a Professional?

Difference Between Guaranteed Savings Plan and ULIP

Best One-Time Investment Plans in India

Everything You Must Know About ULIP Riders

Top 5 Principles That Need to be Followed for Wealth Creation

What is ULIP Renewal?

What are the Best Investment Options For Females?

How To Invest Money In ULIP?

What are Financial Assets & their types?

Early Investing and the Power of Compounding

6 Important Tips to Maximize Your Gains with ULIP Investments

Best Investment Options in India in 2022

Which are the Best ULIP Plans in India for Children?

How to Manage Inheritance Money?

Asset Allocations in ULIP - Know the Top Benefits

Can ULIP Policy be Transferred?

Top 10 Investment Strategies to Create Wealth

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

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

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

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

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

Learn About Safe Investments with High Returns in India

यूलिप के फायदे और नुकसान क्या हैं?

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

Top 10 Investment Plans Available in India

Can ULIP Help in Achieving Short-Term Financial Goals?

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

How Does an Endowment Plan Work?

Best Investment Options to Cover Your Child's Education

How to Use Recurring Investment Strategies to Build Wealth?

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

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

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

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

Is the ULIP Policy Surrender Value Taxable?

Why Are ULIPs Called Flexible Investments?

ULIPs: Suitable for all

How to Plan your Investment to Achieve Periodic Financial Goals?

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

ULIP Benefits You Can Avail from Early Investing

How to Increase Net Worth Along with Family Protection

Rate of Interest on Different Investment Plans in India

ULIP Plan as a Gift

What is the Time Value of Money (TVM)?

What is a Savings Plan and What are is Benefits?

What is SIP Calculator, And How Does it Work?

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

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

यूलिप के फायदे (Benefits of ULIP in Hindi)

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

What is Money Management? Definition & Example

What is the Importance of Saving Money?

What are Index Funds and How Do They Work

What is Direct Investment and its Types?

Investments Options to Buy a house in India

Customising investments to manage your wealth

ULIPs Investment – A Boon or Bane?

Are Investment Returns Guaranteed in a ULIP?

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

What are the Best Investment Options for Young Adults?

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Long Term Savings Plan - Best Savings Investment Plans in India

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

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

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

What is ULIP and Its Benefits?

What are Tax-Deferred Savings Plans?

Learn About Safe Investments with High Returns in India

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

What are the Best Investment Options for Students in India?

Top 5 Investment Options in 2022 for Healthy Returns

8 Charges in ULIP That You Must Know

वित्तीय संपत्तियां और उनके प्रकार

Why Should I Invest in ULIP?

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

How to Plan Savings from Salary?

Investment Options for NRIs in India

8 Important Tips to Maximize Gains with ULIP Investments

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

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Different Types of Endowment Plans

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

How to Make Your Financial Portfolio?

Things to Know Before Buying an Endowment Plan

What is Equity Mutual Funds: Meaning, Types & Benefits

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

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

Difference Between ULIP and Endowment Plan?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

How Do One-Time Investment Plans Work?

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

Short Term and Long Term ULIP Plans for Wealth Creation

Creating a second source of income with life insurance

What are Mutual Funds?

Importance of Portfolio Management

Factors Affecting Stock Markets

Savings Plan for Grandchildren

Which is a Better Investment - Mutual Funds Or ULIP?

Benefits of ULIP as a Child Insurance Plan

ULIP NAV Meaning & How is the Return Calculated in ULIP

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

Corporate Bonds: Meaning, Types & Benefits

Receiving regular payouts at various stages of life

Why are ULIPs One of the Best Tax Saving Instruments?

What are Some of the Safest Investment Options in India?

Planning Financial Goals and Objectives of Financial Planning

Why Should You Invest in Term Insurance And ULIP?

Are Gains from ULIP Sale Taxable?

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

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

ULIP as an Investment for Your Child

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

Successful Financial Planning for Urban Women

What Is Financial Planning?

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

How To Diversify Portfolio In 2023?

Difference Between Passive and Active Investing

What is ULIP Plan, and How Does it Work?

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

Endowment Plan vs Fixed Deposit?

How to Cancel ULIP Policy?

Building wealth through regular investing

Why Should You Build an Emergency Fund?

How to Calculate Your ULIP Returns?

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

How to Start Saving Money in 10 Simple Ways?

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

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

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

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

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

Do You Know the Difference Between Savings and Investment?

4 Benefits of ULIP Fund-Switching Feature

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

What are the Advantages and Disadvantages of ULIP?

ULIP vs FD - Which is Better and Why?

Why Should Parents Invest in Endowment Plan?

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