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Wealth Management During COVID-19 Outbreak

Is investing an ideal way for managing one's assets during a pandemic? An expert discusses the ideal plans for investing and addresses consumer's doubts:

The Policy Bazaar Show is a series that decodes the grey areas of purchasing insurance. Through the 26-episode series, the show will highlight and discuss a magnitude of topics essential to everyone trying to secure their future. From purchasing the right cover to switching policies while shifting jobs, to ensuring a comprehensive child cover, insurance experts deliberate, simplify and, throw light on the complexities of purchasing insurance in India.

In this week's episode, our eminent host, Vivek Law will be talking to Vivek Jain, Head of Investments at about the investments that are available amidst the corona outbreak. One stands to realise that the pandemic has majorly affected many company’s inadvertently leading to multiple losses in the personal and public economy. In this scenario, is investment a safe option for wealth management?

#NiveshKarBefikar – Investing during a pandemic

There is an evidently drastic change that has taken place in the insurance sector when it comes to the penetration of policy supplies. Furthermore, there is a rise in the demand for insurance because of two reasons – digital transformation in the sector making it more accessible to the public and also, the current pandemic leading to a realization amongst the public about the need for insurance. Term insurances have been a popular choice owing to the tax benefits and the availability of a life-long cover.

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The consumers are also opting for investments during the pandemic; however, their preferences are mostly leaning towards a portfolio based investment. The portfolio investments are divided into three categories or parts, which are the large cap funds, mid cap funds and the debt funds. Consumers are opting for less equity based products and more of the products that involve a monthly payment process.

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Policybazaar recently launched the Smart Investment Packs, which ideally follow the portfolio based approach. Under the pack, the customer’s money is invested across different asset classes, therefore, diversifying the risk amongst different asset classes and enabling the consumer to some profit in either class. The insurance companies have also developed their ULIPs (Unit Linked Insurance Plans) making investments profitable, convenient and simple for the consumers. ULIPs are in many cases, better than a mutual fund, as it also provides a life time insurance cover to the consumer.

The Myth Buster

Why should I invest in ULIPs? It is not beneficial.

ULIPs are more beneficial than mutual funds because there is no premium allocation cost and there are many tax benefits. ULIP has no policy admin charge and also, a waiver in commissions. The mortality charges in an ULIP are refunded on maturity.

Watch the episode for more insights on the right investment plans.

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