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It is a know fact that investments in market requires an individual to have a good risk appetite. The recent yo-yo performance of the market has led many investors to think over again on their investment portfolios. Interestingly, the downfall of the market has not had a negative impact on the Unit Linked Insurance Plans (ULIP) owners.
ULIPs, also known as investment plans is a perfect package that comes with insurance coverage and investment options. So, that leaves you with the opportunity of investing in equities. But you do need to keep in mind that the investments in stocks are subject to the vagaries of the market. The volatility in equity markets can keep you uneasy and disturbed since you wouldn't like to see your reserve being affected. You need to know your risk appetite and then make a choice accordingly by choosing an appropriate fund. Given below are points that explain how ULIPs function:
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