Below is an illustration of returns from HDFC Unit Linked Endowment Plus based on term of the plan. These illustrations are for a 34 year male. Assuming returns of 10% per annum the following is what the figures look like.
| Term | Premium | Sum Assured | Fund Balance | Net Returns |
| 3 Years | 25,000 | 1,25,000 | 68,796 | LOSS |
| 10 Years | 25,000 | 1,25,000 | 3,17,657 | 7.17% |
| 15 Years | 25,000 | 1,25,000 | 7,37,790 | 8.07% |
| 20 Years | 25,000 | 1,25,000 | 13,01,447 | 8.43% |
| 25 Years | 25,000 | 1,25,000 | 21,74,310 | 8.62% |
Clearly, if you look at the net returns, investment in ULIPs only work if you plan to stay invested for long term. If someone is selling you a ULIP for a time frame of 3 to 5 years, it will not work. All he is doing is mis-selling
2 comments:
I think the investment returns for government issued bonds like KVP is also around 8%. If this is correct, then i think it is not advisable to invest money for a long period of 20-25 years for a low return like 8.5%.
In ULIP, if i invest for 3 years(50,000 per year) and leave it as such...will i get better returns after 5 or 6 years....
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