Business Daily from THE HINDU group of publications
Monday, Feb 04, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Monday, Feb 04, 2008 ePaper | Mobile/PDA Version |
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Markets
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Interview Money & Banking - Life Insurance We prefer to invest in large-cap stocks and small exposure to mid and small-cap stocks. 
Mr Y.V.D.V. Prasad Suresh Parthasarathy BL Research Bureau How should one look at ULIPs (unit-linked insurance plans)? Is it a short term or a long term saving instrument? In a e-mail interview with Business Line, Mr Y.V.D.V. Prasad, Director Business Development, ING Vysya Life Insurance, makes a case for investing in ULIPs. Excerpts from the interview: How should one look at ULIP? ULIPs view stock market with a long-term horizon. Unlike mutual funds (MFs), the ULIP funds are managed with a view of long-term capital appreciation rather than short-term gains. These plans are long term in nature, comprehensive and often customised solutions, offering savings, investment along with protection to customers. ULIPs are more flexible than traditional products offering customers the freedom to switch from one sub class of funds like debt, equity, growth etc to others with minimal or ‘zero’ cost when compared with MFs. This creates more opportunities for customers to invest based on their financial needs. What is your sales force and how they are trained to sell ULIP products? ING Vysya Life invests a lot in training its advisor force. It has over 50,000 advisors, who are supported by a strong in-house team of over 150 trainers across locations. The advisors undergo specific training to sell such products and their product knowledge is kept updated on a regular basis. How do your rate the performance of ING ULIP compared with diversified funds? ING Vysya Life launched ULIPs in 2004 with four fund options. Its equity fund option was launched in 2006. With entry load being waived in MF for direct investment or you foresee similar situation in insurance industry? Life Insurance policies differ in nature in comparison with MFs. The similarity between both the financial instruments is that their funds are invested in the capital market. However life insurance policies involve regular servicing over long duration and require interaction between the customer and the company in collecting renewals and other related services. Markets off late become highly volatile. Is it advisable for the investors to use switch? ULIPs offer customers the flexibility to choose their investment portfolio in line with their risk profile. However informed customers based on their risk appetite and need have the freedom to switch funds from high to low or low to high. How often you churn your portfolio? What is the mixture of your portfolio (large, mid and small cap)? We prefer to invest in large-cap stocks and small exposure to mid and small-cap stocks. The portfolio composition varies based on market condition. During the recent market correction, how did policyholders utilised the switch? Investors preferred to switch from debt to equity not the other way around. More Stories on : Interview | Life Insurance | Investments
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