Investing In Debt ULIPs Can Provide Risk Free Investment To Beginners

Vivek Law: Amit Tiwari has a question. I don’t have any idea about the Unit-Linked Insurance Plan (ULIP). Can you suggest me any investment with very low risk as a beginner?

Santosh Agarwal: If this is your first time as an investor, you should consider ULIP. You can enter through a debt ULIP where the money is being invested in government bonds in which the risk is very low. Whenever you feel that you have gained some confidence and you are able to decide whether you want to switch to equity, you can do that freely in a ULIP. There are no charges for it. You can switch easily between debt and equity anytime. You may start with an online ULIP which has no commission. There is only a fund management charge in ULIPs which is even lower than a mutual fund. 

[ Also read | What Makes ULIP The Most Transparent Financial Product?]

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