Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. 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 life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. 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.

8 Important Tips to Maximize Gains with ULIP Investments

A ULIP is one of the financial products with one of the fastest-growing consumer markets in terms of life insurance and investing. In addition to giving your family lifelong security in the case of your death, it also allows you to invest and grow your for

  • Apr 14, 2022

Simply investing your money in financial tools isn’t enough - understanding how to maximize your investment returns is the actual key. For example, the popularity of ULIP plans has climbed to unprecedented heights. ULIP returns have become everyone’s favourite and a household name for a plan that comes with a mandated 5-year lock-in period that offers both investment and a life insurance plan.

    Key takeaways

    Important Tips to Maximize Gains with ULIP Investments:

  • Don’t Shy Away from Switching Funds
  • Examining The Economic Scenario is Your Best Friend
  • Longer The Tenure Greater The Returns
  • Stay Aligned With Your Goals
  • Start Investing As Soon As Possible
  • Maximize the Amount of Investment
  • Invest in Equity Funds
  • Change your investments to safeguard your gains before maturity

The benefits of insurance and market-linked profits plus partial withdrawals are an amazing combination for an efficient financial plan. We will share all of the secrets and tips you need to know to make a significant capital gain on ULIP returns in this article.

Don’t Shy Away from Switching Funds

Switching funds is a word that refers to diversifying your assets across several asset types. It is a big part of determining a portfolio’s risk-reward ratio. You may build a big portfolio by diversifying your assets over various asset classes, thereby enabling the benefit of one asset class to compensate for the loss of another. As a result, your investment’s overall risk is lowered, adding to the ULIP long-term capital gain.

Another advantage of holding a Unit linked insurance plan in India is that policyholders have unrestricted access to switching between various funds. You can modify the debt and equity fund options in your ULIP plan at any time throughout the policy’s duration for capital gain on ULIP performance.

Examining the Economic Scenario is Your Best Friend

This step works in combination with the switch option. You must be knowledgeable of the present economic atmosphere as well as the prediction for both national and worldwide markets to swap your finances effectively.

Leading indicators, such as the price of crude oil and the increase in international political tension, are critical in predicting market performance and, as a result, the gain on ULIP returns.

Longer the Tenure Greater the Returns

You are aware that ULIP investment aids in wealth growth; therefore, you must invest in ULIP insurance for a longer period of time for long-term capital gain on ULIP. It has a five-year lock-in term which implies that you may only make partial withdrawals from your ULIP returns insurance once five years have passed.

This lock-in period enables investors to pay premiums on a regular basis and to think about wealth growth as a long-term capital gain on unit-linked insurance.

Stay Aligned With Your Goals

Your income composition, appetite for risk, long-term financial goals, and investment objective must all be considered when choosing a policy. When picking a plan, keep your financial objectives in mind, whether they are definite events like a child’s wedding or more ambiguous ones like building money for the future. The ideal strategy aids you in achieving your objective and gets you there with the least amount of obstacles and the most gain on ULIP investments. To make your selection, look at the plan’s investment ratio in both equity and debt funds.

Maximizing gain on ULIP is not as complex as it may appear. All you have to do is stay updated with market circumstances, align them with your financial goals, and research and make the best decision possible to benefit from long-term capital gain on ULIP returns.

Start Investing As Soon As Possible

Any investment professional will tell you that “yesterday” is the best time to start investing. Essentially, this indicates that the longer you wait to start investing, the more money you can make. Regarding ULIPs, the earlier you enrol, the more you can get out of your ULIP. You have a longer time horizon to gain profits on your investment when you invest early.

Additionally, you can maximise the wealth-building benefits of compounding with a ULIP. For instance, if you begin investing a percentage of your income as soon as you begin working, you are not only developing a wise habit of saving but also increasing your wealth.

Maximize the Amount of Investment

A decent general rule of thumb is to start out by investing a sizable sum, as much as you can, in a ULIP. Your ULIP’s potential returns can be maximised if you can set aside a sizeable sum for it. Over a lengthy period of time, consistent small-capital investments grow your wealth into a sound corpus.

Invest in Equity Funds

History teaches us that, as long as equity is kept for a long time, investing in equities may produce excellent returns. Equity investments also carry risks, but if you keep equities patiently, you can reduce them. In a ULIP, a portion of your plan corresponds to an investment (in equity funds, debt funds, or a combination of the two), and the remaining portion relates to life insurance.

You might see strong returns if you decide to invest only in stock, but there are associated market-related dangers. There are methods that various ULIPs might reduce the risk element in your plan while still enabling you to make significant gains.

Reinvesting Returns

There is an additional method to make the most of your ULIP investment portion. If your returns exceed a predetermined threshold, you can reinvest them or book gains.

Fund Rebalancing

Your funds can be rebalanced in a way that provides you with appropriate returns to diversify your fund portfolio in a ULIP and to maximise your ULIP. To lower the risk factor, investments in a mix of debt and equity in various ratios might be made.

Change your investments to safeguard your gains before maturity

The auto rebalancing of funds option keeps your ULIP portfolio’s assets practically risk-free, while it may not always do so. In addition to having your portfolio automatically rebalanced, ULIPs also give you the option of switching funds. Depending on your insurance provider, you may be able to effectively utilise this to further reduce your risk.

This simply causes your capital allocation to automatically transfer to a liquid or debt fund if there is a particular potential risk from markets. This can lower your exposure to market risk and strengthen your portfolio, allowing you to maximise the value of your ULIP when it matures.

This automatic fund-switching feature in ULIPS kicks in four years before your ULIP insurance is scheduled to mature. This will ensure that your money is protected from market volatility and that you can generate money without taking any risks until your maturity date.


There are several ways to make the most of your ULIP that provide you with the chance to amass riches. Additionally, you benefit from having life insurance protection and may stop worrying about your loved ones. The most serious investors are the only ones who may find value in such twin advantages.

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

Can You Have ULIP Plan and Health Insurance Plan Both?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Will AI be Your Future Financial Adviser? What Role Will Humans Play?

Tax-Deferred Savings Plan: Overview, Benefits, Works

How to Make Your Financial Portfolio?

Creating a second source of income with life insurance

Building wealth through regular investing

Top ULIP Myths That You Must Stop Believing In

How Can ULIP Plan be as an Investment for Your Child

5 Reasons to Have a Child Education Plan

What are Financial Assets & their types?

FAQs on Taxation of ULIPs

Benefits of ULIP as a Child Insurance Plan

ULIP Investment Benefits You Must Know

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

What is Money Management? Definition & Example

Early Investing and the Power of Compounding

यूलिप के फायदे (Benefits of ULIP in Hindi)

Importance of Portfolio Management

What are Fixed Maturity Plans and Why Should I Invest in Them?

Develop an investing plan

What is the Time Value of Money (TVM)?

ULIP Plans Riders You Should Know About

Difference Between Linked and Non-Linked Insurance Plans

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

ULIP Vs Life Insurance Plan Know the Difference

How To Invest Money In ULIP?

Top 5 Investment Options in 2022 for Healthy Returns

Here's Myths on Investments in ULIP Plans

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

How and when should you exit from bad-performing ULIP?

Why Should You Invest in NPS?

Different Types of ULIP Investments in India

What is Lock-In Period in ULIPs?

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

Investments Options to Buy a house in India

6 Important Tips to Maximize Your Gains with ULIP Investments

Why are ULIPs One of the Best Tax Saving Instruments?

ULIP Frequently Asked Questions (FAQ) - Kotak Life

What is ULIP and Its Benefits?

How Safe is it to Invest in ULIP plans?

Do ULIPs Give Good Returns On Investments?

How to Use Recurring Investment Strategies to Build Wealth?

Is Life Insurance Investment Worthy Enough

What Is Social Impact Investing and How Does It Benefit Society?

ULIPs Investment – A Boon or Bane?

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

ULIPs: Suitable for all

What is Mutual Funds? | How Mutual Funds Work, Definition

यूलिप के फायदे और नुकसान क्या हैं?

How to Cancel ULIP Policy?

How ULIPs can help you achieve your financial goals

4 Rules To Keep In Mind To Secure Your Child’s Future Financially

ULIP Benefits You Can Avail from Early Investing

What is SIP Calculator, and How it Works?

ULIP NAV - Everything You Need to Know

Here's Whether You Should Link ULIP Plan with your Term Insurance

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

Best Investment Options to Cover Your Child's Education

What is ULIP Plan, and How Does it Work?

How Do One-Time Investment Plans Work?

Is ULIP A Good Investment Option?

Savings Plan for Grandchildren

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

What are the Minimum and Maximum Investments in ULIP?

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

Endowment Plan vs Fixed Deposit?

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

How Increasing Your SIP Every Year Helps You Reach Your Financial Goal Sooner?

Will You Need to Withdraw or Surrender Money From ULIP

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

ULIP Plan as a Gift

वित्तीय संपत्तियां और उनके प्रकार

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

How to Plan your Investment to Achieve Periodic Financial Goals?

What are the things to consider before buying ULIPs?

How to Manage Your Portfolio Like a Professional?

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

What are the Best Investment Options for Students in India?

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

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

Planning For Children's Future

Difference Between Guaranteed Savings Plan and ULIP

Can NRIs Invest in ULIP Plans Offered in India?

Are Money Back Policies Helpful? A Complete Guide

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

Long Term Savings Plan - Best Savings Investment Plans in India

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

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

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

Are Investment Returns Guaranteed in a ULIP?

ULIP As An Investment Option For Senior Citizens

How to Set Financial Goals for Your Future

What are the Best Investment Options For Females?

What are the Best Investment Options for Young Adults?

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

What is Premium Redirection in ULIPs Plans | ULIP Insurance Plans | Kotak Life Insurance

First Job? Here are Some Tips on How to Manage Finances

ULIP Plan or Traditional Insurance Plans - Which is better?

5 Best Long Term Investments To Add To Your Portfolio in 2023

What is ULIP Renewal?

How to Build a Strong Financial Foundation For the Future?

Know How to Invest at Every Age for Larger Returns

Can You Invest in Both Term Insurance and ULIP?

Learn About Safe Investments with High Returns in India

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

यूनिट लिंक्ड इंश्योरेंस प्लान में लॉयल्टी एडिशन कैसे काम करते हैं

What are ULIPs and their Types?

Do You Know the Difference Between Savings and Investment?

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

How To Track ULIP Performance?

Can ULIP Help in Achieving Short-Term Financial Goals?

Are Gains from ULIP Sale Taxable?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

What is a Savings Plan and What are is Benefits?

How to Save Money from Salary?

Planning Financial Goals and Objectives of Financial Planning

What are Some of the Safest Investment Options in India?

Why ULIP Should Be a Part of Your Investment Portfolio?

Can ULIP Policy be Transferred?

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

Why Should I Invest in ULIP?

All you need to know about claiming maturity proceeds from Ulip

How to Start Saving Money in 10 Simple Ways?

What Is a Credit Score? Definition, Factors, and Ways to Raise It

How to Manage Inheritance Money?

ULIP Tax Benefits: यहां निवेश करने पर मिलते हैं 5 बड़े फायदे

ULIP policy: What happens when you stop paying ULIP policy premium during lock-in period

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

What is Partial Withdrawal in ULIPs?

How to Create Short-Term and Long-Term Wealth with ULIPs - Kotak Life

Difference Between Passive and Active Investing

Planning For Son or Daughter's Wedding

How to Apply for Death Claim Benefits in ULIPs - Kotak Life

What Is Financial Planning?

Difference Between ULIP and Endowment Plan?

How to Calculate Your ULIP Returns?

Is the surrender value of ULIP taxable?

Why Should You Build an Emergency Fund?

यूलिप और उनके प्रकार क्या हैं?

Corporate Bonds: Meaning, Types & Benefits

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

Investment Options for NRIs in India

Customising investments to manage your wealth

What is Fund Value in ULIP?

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

All you need to know about Fund Switching in ULIPs

Best Investment Plans For You To Invest In 2023

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

5 Reasons to Buy ULIPS for a Financially Secured Future

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

What are the Advantages and Disadvantages of ULIP?

8 Charges in ULIP That You Must Know

Know Why You Should Stay Invested in Your ULIP Plan

How to Fix the 9 Most Common Financial Problems Your Family is Facing

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

Can I Surrender My ULIP Policy after 2 Years?

Understanding ULIP Risks: What are the Odds of Losing all my Money and Projected Returns?

What is Direct Investment and its Types?

ULIP vs FD - Which is Better and Why?

ULIP Withdrawal Conditions - Before and After 5 years

What Happens If I Stop Paying My ULIP Policy Premium After Paying the First Premium? Will I Still Get The Return?

What is Savings and the Importance of Saving Money

Top 5 Principles That Need to be Followed for Wealth Creation

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

5 Reasons Why ULIP Plans are One of The Best Retirement Planning Instruments

Top 11 Investment Plans Available in India

What are Index Funds, and How Do They Work?

What is Equity Mutual Funds: Meaning, Types & Benefits

How has ULIP Grown Over the Last 3 years?

Safe Investment Options with High Returns for FY 2018-19

Is ULIP a Complex Financial Product?

How to Increase Net Worth Along with Family Protection

Receiving regular payouts at various stages of life

Why Are ULIPs Called Flexible Investments?

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

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

Best Investment Options in India in 2022

Factors Affecting Share Prices In The Stock Market

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Asset Allocations in ULIP - Know the Top Benefits

What is a Bond Fund and How It Works?

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

How Can ULIPs Help You Plan for Your Child's Future?

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

Which is a Better Investment - Mutual Funds Or ULIP?

Which are the Best ULIP Plans in India for Children?

Best One-Time Investment Plans in India

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

Balancing Investment Between Risk and Return on Investments

Top 10 Investment Strategies to Create Wealth

Single Premium ULIP or a PPF - Which One is Better?

Successful Financial Planning for Urban Women

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

Learn About Safe Investments with High Returns in India

Rate of Interest on Different Investment Plans in India

Here's are the uses of ULIP your must be aware of