The daily ups and downs in the stock markets can be incredibly unnerving for a retail customer and can dissuade them from investing in the markets.
On March 1 this year, the Bombay Stock Exchange (BSE) Sensex closed at 34,047. Within five trading sessions, it had lost 739 points to reach at 33,307 on March 9. Such fluctuations can scare small investors from the equity markets, whose main priority is the safety of their investment. However, investment in equities provide healthy returns on your money.
Instead of being disillusioned by the ups and downs of the stock market, the solution is to leverage through Unit Linked Insurance Plans (ULIPs), which invest in market-linked instruments such as stocks and bonds. The value of each unit depends on daily price movement of the stocks and bonds in which it invests.
Here's how monthly investments in ULIPs can enable you to reduce market volatility: