This ULIP Has Given 26.4% SIP Returns In 5 Years, SIP Starts With Rs 500

A Unit Linked Insurance Plan (ULIP) is a life insurance programme that provides risk protection as well as investment alternatives in a variety of qualified investments such as stocks, bonds, or mutual funds. They combine the advantages of protection and savings into a single instrument.

UTI Unit Linked Insurance Plan (ULIP) - Direct Plan

This ULIP is a Dynamic Asset Allocation mutual fund scheme from UTI Mutual Fund launched October 01, 1971. It has Rs 5,299.27 Crores worth of assets under management (AUM). The Net Asset Value (NAV) of as of 21st April 2022 is Rs 34.1236. It has an expense ratio of 0.88%. Its expense ratio is similar to its category average expense ratio.

This ULIP seeks to invest no more than 40% of its funds in equities and stock-related securities, with the remainder invested in debt and money market products with a moderate to medium risk profile. Individual investments in the plan are deductible from income under section 80C of the IT Act 1661. Furthermore, the plan provides Life Insurance and Accident Insurance coverage.

It is a moderately high-risk ULIP. It is an open-ended medium-sized fund of its category. Its benchmark is Nifty 50 Hybrid Composite debt 50:50. For investment, this ULIP requires a minimum of Rs 15,000 for Lump-sum payment. For SIP, the minimum Required amount is Rs 500. This Scheme has no lock-in period as well as exit charges.

 

Absolute And Annualised Returns

Lump-Sum Investment

Since its launch, it has delivered 9.16% average annual returns.

Investment Period	Absolute Returns	Annualised Returns
1 Year	11.47%	11.44%
2 Year	43.90%	19.96%
3 Year	27.59%	8.43%
5 Year	48.47%	8.22%
Since Inception	130.43%	9.41%

SIP Returns

SIP Period	Absolute Returns	Annualised Returns
1 Year	2.33%	4.35%
2 Year	13.62%	12.81%
3 Year	20.25%	12.35%
5 Year	26.40%	9.30%

Portfolio

The fund has a 38.29% investment in stocks. It has 60% investment in Debt of which 28.27% in Government securities, and 30.65% in funds invested in very low-risk securities. The fund's equity portion is primarily invested in the Financial, Technology, Healthcare, Services, and Materials sectors. The debt portion of the fund has moderate credit quality indicating the quality of borrowers it has lent it to is good. The fund's top holdings are in GOI, Gujarat State, Housing Development Finance Corp. Ltd., Canara Bank, Larsen & Toubro Ltd.

Disclaimers

Mutual fund/ULIP investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.