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Like the Many Dishes in a Thali, Your Financial Portfolio Will Also Need a Variety of Plans

  11/4/18 5:42 AM

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Rishi loves to try a different restaurant and different cuisines. Recently he got an opportunity to taste Rajasthani thali with his wife Anshika.

While enjoying their favourite food they got an opportunity to meet their friend Avinash who is a financial advisor.

Anshika is very happy to see Avinash as she was actually looking for a financial advisor.

Anshika then asked Avinash, “Can you please help us in creating our financial portfolio? We have no idea where to put our money to get better returns in long-term for our child’s education and marriage.”

Avinash replied, “Yes,of course, that is very simple. I will elaborate this will the help of your Rajasthani thali.

A food-crazed nation like India has a number of dishes originating in diverse cultures. Foodies like to get their knowledge about the food before sinking their teeth in. Likewise, investors should draw this inquisitive trait of foodies, when it comes to evaluating their investment decisions.

What are the dishes in the thali?

Consider the thali a popular dish, or rather series of dishes. It is not uncommon to find a thali that bears the signature of a region or culture. So, we have the Gujarati thali, Maharashtra thali, and Rajasthani thali, among others.

Typically, a thali includes rice, dal, vegetables, curd, chapati, with a little chutney/pickle and at the outcome, there is dessert which serves as a sweet reminder for another go in the future.

The thali has everything in proportion. It’s as if the chef took efforts to understand the needs of both the health as also the palate.

It would be difficult to find a better-rounded dish than the Indian thali. A wise investor can take a lot from the thali, apart from the food. The construct of the thali, the number of items, the balance across the ingredients with an eye on health as also the taste buds.

A prudent investor looks for the same well-rounded edges in his investment. He wants his money to take him as far ahead as possible. Simply put, he wants his investment to achieve multiple goals at the same time think one thali, many dishes.

ULIP An investment thali brimming with options.

ULIPs offer individuals the opportunity to select a product in harmony with their risk profile and investment objectives. Thanks to a large number of fund options available, the individual can buy a ULIP that represents his profile and is like a signature of the individual. Think Gujarati foodie one who opts for the Gujarat thali and so on.

For instance, an investor with a high-risk appetite can opt for ULIPs offering a fund with a high equity component. The moderate risk-taking investor will eye the balanced fund ULIP since it has equity and debt in roughly the same measure and sits well with his profile.

Like the foodie ogling over the dishes in the thali, understand what ULIPs bring to the table.

  1. ULIPs offer the opportunity to create wealth through investments in capital markets (equities and debt)
  2. They offer a life insurance cover
  3. They offer diverse fund options/plans targeting different investor segments in the same plan
  4. There are several portfolio strategies allowing an investor to pick the most suitable investing style
  5. Higher premium allocation (as mandated by the insurance regulator) which means a larger portion of your premium is working for you
  6. You have the option to decrease the Sum Assured
  7. You can avail unlimited fund switches without any charges
  8. Those pressed for time can buy ULIPs online
  9. Tax benefits under Section 80C and 10(10D) which means on premium paid and returns received
  10. Option to add protection through add-on riders

These are the salient features of ULIPs in general. Not all ULIPs offer identical benefits. So, like the discerning foodie, look at the ULIPs on your plate carefully and select the ULIP that is best suited to your needs.

ULIPs provide the chance to achieve life goals like child’s education and marriage, and retirement planning, among others.

All you need to do is study the ULIP landscape carefully and select the ULIP that is best suited for your risk profile and needs.

Edelweiss Tokio Life- Wealth Plus is a unit-linked investment plan which provides an additional allocation to make sure you get extra to fulfill your financial goals.

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