Maximize Returns Through Fund Switch

Returns in unit linked insurance plans are market linked and not guaranteed. However, an important feature of ULIPs is that it allows you to control your investment and may optimize your returns. Under ULIPs, you can not only decide the amount to be invested across different asset classes, but also switch between funds or re-direct your future premiums in different funds based on the changes in your risk profile and market conditions.

What is switching?

Switching is the option under which you can move some or all your units from one unit linked fund to another.Under the IndiaFirst Smart Save Plan and IndiaFirst Young India Plan you are allowed 2 free switches every month, i.e., 24 free switches a year. However, the unused free switches cannot be carried forward to the next month/ year.

What is premium redirection?

Under Premium Redirection you can redirect your future investments towards a different fund or set of funds. However, under the premium redirection option your past allocation of premium does not change.

For example: At the age of 30, you choose to invest your premiums in an equity fund, which is prone to high returns (in the long term) and high risk (in the short term). Five years hence, you have additional responsibilities and do not wish to take high risks with your investments. You can change your investment preference by redirecting future premiums to debt or tailor made products which have low to moderate risks in short term. You can continue to keep your existing investment in equity since it is long-term investment.