How to Track the Performance of ULIP?

source: pnbmetlife

Many investors have a notion that once they start their ULIP investment, the only thing they should be careful about is paying the premium on time. However, their role does not end here. They must stay updated about the ULIP performance besides timely premium payments. This can safeguard them from encountering immense losses.

Here are some ways on how to track ULIP performance that can guide you through the right steps.

1. Manual Tracking

Manual tracking usually involves calculations involving large numbers and complex formulas. Here are some steps that you can follow to manually track the fund performance by determining absolute returns:

Step 1: Check the Initial and Current NAV

Net Asset Value (NAV) refers to Net Asset Value as the total assets of a company minus the total liabilities. 

NAV = Total value of ULIP policy – ULIP expenses 

All you must do is note down the initial NAV when investing. As for the current one, you can instantly get it on the website.

Step 2: From Current NAV Subtract Initial NAV

Once you get both values, subtract the initial NAV from the current NAV as per the following formula: 

Absolute returns = Current NAV - Initial NAV

This will allow you to estimate the absolute returns from your investments. 

Step 3: Multiply the Result Obtained by 100

Next, multiply the results by 100 to get the absolute returns percentage. 

Absolute returns percentage = Absolute returns X 100

This will give you an idea regarding the performance of ULIPs over a short period. So, you can decide if you want to keep investing in that fund or switch for increased returns.

Do you find manual calculations complicated and tiring? Here is an alternative option that you can look up for tracking ULIP performance.

2. Automated Tracking

Several online tools allow you to enter the values for automatic calculations. Here are some hassle-free steps that you can follow to use these online trackers:

Step 1: Visit the official website of your insurance provider.

Step 2: Move to the ULIP fund performance page.

Step 3: Navigate to the 'Fund Performance' tab.

Once done, you can get an estimate of average returns that will help you to select the best-performing assets. Furthermore, you can also calculate returns from your investments instantly by following the steps below:

Step 1: Move to the ULIP returns calculation page.

Step 2: Input the values accurately to view expected returns.

The online ULIP performance tracker provides you with instant and accurate results. This saves time and helps you get the desired results within a short time frame.

ULIP investments usually involve high risks due to the dependence on returns on money market funds. Here are some tips on handling risks and safeguarding your ULIP investments from market fluctuations.

Below are some clever tips that can help you in balancing out risks and safeguard ULIP investments:

• Select the Top-Performing Funds: First and foremost, you should consider selecting top-performing assets to deposit your money. For this, you can track the performance of funds and choose the one with the highest returns to maximise your profits.
• Stay Updated about Fund Performance: Staying updated about the performance of your funds can provide you with numerous advantages. For this, you can use a ULIP performance tracker to ease the monitoring process. Also, you can be sure about the accuracy of the results.
• Go for a Fund Switch at the Right Time: You should switch funds when you notice the market going south. This prevents you from incurring immense losses from money market funds. Also, several insurers offer free fund switching, which helps you save more.
• Avoid Surrendering ULIP before Maturity: ULIPs can provide you with high returns over the long term. However, surrendering ULIP before maturity can halt your expected returns from the policy. So, try not surrendering your policy before maturity to keep reaping increased returns.

Once you know how to track ULIP performance and the ways of safeguarding your investments, you can confidently estimate your returns. This will help you to plan your finances accordingly and look for opportunities to gain maximum profits.