Life Goals Loading…

Get Life Goals Back-up Plan

Have us call you

Please enter a Name
Please enter a Mobile No.
Please select a option
Please select a option

Thanks for sharing your details, A Sales representative from
Bajaj Allianz Life will contact you shortly.

Dear Customer, we request you to connect with us in our next business working hours, (Monday to Saturday 24*6) Thank you, Have a great day ahead.

Fund Switching In ULIPs – All You Need To Know

4 ULIP fund switching benefits

Fund Switching In ULIPs – All You Need To Know


February 21, 2020

By : Bajaj Allianz Life

When investing in ULIP plans you have an option to invest in equity funds, debt funds or combination of equity and debt funds. What’s more, ULIP plans offer you the option to switch between these funds as per your investment needs and risk appetite.Fund switching allows you to move your investments partially or fully from one fund to another fund within the same ULIP plan.

Switch to maximise returns

We all know that asset allocation is key in determining returns from one’s portfolio. ULIP fund switches give investors the freedom to alter their asset allocation according to market conditions, risk appetite and life goals. This helps them capitalize on returns on their investments, thus helping them achieve their life goals.

Here are top 4 benefits that ULIP fund switches offer:

1. Invest according to your risk appetite: Risk appetite is nothing but the amount of risk an investor can handle. Risk appetite differs from investor to investor. If you are an aggressive investor, you may have a majority of your investments in equity. If you have a lower risk appetite, you may choose to have a larger portion invested in debt. The risk appetite of an investor also changes with changes in life stages. As you grow older and move nearer to your life goals, your risk appetite decreases as your financial obligations go up. ULIP fund switches give you the flexibility to switch your investments from equity to debt and vice versa depending on your changing risk appetite.

2. Protect your investment options from market fluctuations: As an investor it is not possible to time the markets. However, there are times when an investor may want to make necessary adjustments to his portfolio due to market conditions. For example, if an investor foresees that the markets will go down in the immediate future, he can switch a portion of his investments into debt or liquid funds so that his capital is protected. Later he can make a switch back to equity funds when the markets are on their way up. This way ULIP fund switching can help an investor optimise his returns.

3. Aligning your portfolio to your life goals: ULIP fund switches also let you align your portfolio to your life goals. Let us take an example. If you are in your early 30s and saving for retirement, which is a major life goal, you are in a position to take more risks with your investments. So a large portion of your ULIP portfolio can be in equity funds. As you are nearing retirement age, it is prudent to move your investments into debt ULIP funds in a steady manner to reduce your risk. While the decision depends on your risk appetite, ideally you should start with a 90-100 per cent equity allocation and decrease your equity portion as you near your life goal.

4. Taxability: Another major advantage of ULIP fund switches is that it does not attract any capital gains tax which means there is no tax implication for any fund switches in ULIPs. And many new-age ULIPs allow you to do multiple switches without any transaction costs. Therefore, it allows an investor to plan their asset allocation in a more tax-efficient manner.

How to make fund switches?

You can exercise your fund switching options in two ways. One is to use the insurance company’s self-servicing customer portals either on company’s website or through customer servicing apps. The other way is by submitting a signed form to the nearest branch of the insurer mentioning the amount of transfer, name of the existing ULIP fund and the new ULIP fund chosen. Most of the ULIPs today offer unlimited free fund switches. Some ULIP plans, however, charge a fee after a given number of switches.

ULIP fund switches offer you the flexibility to change your asset allocation between equity and debt when required. If done smartly ULIP fund switches can help you maximise the returns and meet your life goals.

Bajaj Allianz Life Videos

Video Icon

Flexi Income Goal – Variants, Features, Benefits Explained

Video Icon

Why Choose Bajaj Allianz Life To Help Get Your #LifeGoalsDone?

Video Icon

#DostiWithDad - Happy Father's Day | Bajaj Allianz Life | Life Goals Done

Video Icon

Covid-19 Survivor Story | Bajaj Allianz Life Smart Protect Goal | Bajaj Allianz Life

Video Icon

Lage Raho India - Keep getting your #LifeGoalsDone

Video Icon

Don’t Let COVID-19 Lockdown Get in The Way of Your #LifeGoals

Video Icon

Coronavirus (COVID-19) Advisory Video #DooriHaiZaroori

Video Icon

Coronavirus COVID-19 impact on markets - CIO Commentary | #KeepCalmStayInvested

Video Icon

Bajaj Allianz Life Leadership Team | #PlankForIndia

Our MD & CEO, Tarun Chugh launches #PlankForIndia campaign and planks with Sanjiv Bajaj MD & CEO, Bajaj Finserv and Chairman Bajaj Allianz Life & the rest of the group leadership team.

Video Icon

#PlankForIndia | Bajaj Allianz Life

Bajaj Allianz Life will contribute to the training and development of India's future sports stars. Come together to Plank for Good Health, PlankforIndia.

Video Icon


#PehlaDinPehlaResolution | Happy New Year | Smart Protect Goal | Bajaj Allianz Life

Video Icon

Bajaj Allianz Life Goal Assure

Bajaj Allianz Life Goal Assure - A ULIP Investment Plan To Achieve Life Goals

Video Icon

Valentine's Day

Valentine's Day

Video Icon

Bajaj Allianz Health Care Goal

A Comprehensive Health Insurance Plan with Critical Illness Cover | Bajaj Allianz Life Health Care Goal

Video Icon

#36SecPlankChallenge video

Promote Healthy Living for a Better Tomorrow with our #36SecPlankChallenge

Contact Us

Bajaj Allianz Life Insurance Company Ltd.

Bajaj Allianz House, Airport Road, Yerawada, Pune - 411 006, Maharashtra

Tel No: 020-66026773

Fax No: 020-66026789

Branch Visit Timings:

Weekdays - 9:00 AM to 3:30 PM

Saturday - 9:00 AM to 12:00 noon

Customer Care Helpline:


Monday to Saturday: 9:00 AM to 7:00 PM (IST)

For NRI: +91 20 67871700 (Call charges apply)

Monday to Saturday 9.00 AM to 7.00 PM (IST)

Sales Enquiry Helpline:


Monday to Saturday: 9:00 AM to 7:00 PM (IST)

For NRI: +91 20 67688888 (Call charges apply)

Monday to Saturday: 9:00 AM to 7:00 PM (IST)