I had made three investments of Rs 10,000 each in Bajaj Alliance in 2007. My agent tells me that from an NAV of Rs 17.5, my investments have reached an NAV of Rs 18.5. Should I redeem or wait?
-Lalbabu
You have invested in a ULIP, and if investment was your goal then this hasn’t been the ideal way to go about with it. We would suggest that you carefully read your policy document and understand the redemption costs that you will have to pay. On a general basis, when it comes to the older ULIPs, you should continue investing for the first 3 years. Don’t redeem your money from these ULIPs within the first 5 years because the surrender charges will be high. Hence, we would suggest that even if you don’t pay any more premiums, don’t redeem till your policy completes 5 years.
This article was originally published on February 24, 2012.
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