ULIP Investments

Many insurance companies offer policies that are connected to the share markets. Can the value of my investment go down in such policies? -Megha

The policies that you're talking about are called Unit Linked Insurance Plans (ULIP). In a ULIP, a small part of your money is considered as insurance while the rest of it is invested in equity and debt. Hence, this money that is invested will face an increase and decrease in value as per the movements in the equity markets.

This article was originally published on July 09, 2012.