Jaya got another compliment for the biryani she cooked for lunch. One of her colleagues curiously asked her; “How do you get the recipe perfectly right? I have tried multiple times but I didn’t get it as right as you have got it.”
Jaya replied, “It’s because I used the right ingredient and the right proportion.”
The same thing applies to our investment portfolio. We have to create a blend of investment options that range from low to higher risk levels. Most of us simply park our wealth in banks or FDs because we are of the opinion that the risk involved in these investment instruments are the lowest.
We need to keep in mind that a portfolio dominated by a single asset class can’t deliver the same result as that of a well-balanced investment mix. Just like the food recipe, you need to allocate different ingredients to get the best out of your investments. So, you need to consider investing in debt and equity funds both, so that your asset allocation is done appropriately.
Asset allocation means the proportion of each asset in the portfolio according to the person’s risk appetite and duration for investment. If you are an aggressive investor then ULIP is a great option for you. They provide the dual benefit of market-linked returns and protection. ULIP is a great investment option for long-term wealth creation like retirement planning or child education. ULIP, an investment cum insurance product provides the investor with transparency and flexibility. It gives the investor an option to switch between funds based on risk appetite and market’s performance. The new age ULIP like Edelweiss Tokio Life Wealth Plus provides unlimited switches that too free of charge. It also has no policy and administration costs. It provides additional allocation at regular intervals so that you get good returns.
Hence, the new age ULIP can help you customize your investment ingredients just so that you get the right flavor of returns.