ULIPs: Identifying Awareness, Preferences and Buying Pattern in Mumbai

Girish Kirtani

Abstract

An investment is an asset acquired with the goal of generating revenue and capital appreciation. It refers to the allocation of resources with the expectation of generating wealth to be used in the future. There are various investment choices available in India such as financial investments, real estate, commodities etc., the choice of which depends on various factors such as tenure of investment, risk appetite, financial goals etc. ULIP is one of the investment options available for investment. ULIP stands for unit linked insurance plan. It is a financial product that offersthe dual benefit of investment and insurance to investors. The present paper tries to study people’s perception and preferences towards ULIP as an investment option. The study aims to determine whether ULIP plans are fulfilling the needs of society and to examine the factors taken into consideration while opting for the ULIP policy. The information for the study has been collected from both primary and secondary sources. Primary data is collected with the help of a well-designed questionnaire from respondents from Mumbai city, and secondary data consists of information collected through various websites, newspapers, and articles. It was observed that ULIP plans are known to almost everyone and a significant portion have already invested in ULIP, the primary reason being the dual benefit of insurance as well as investment. Yet there are people who are reluctant to include ULIP in their portfolio for different reasons.