Life Goals Loading…

    4

    Notifications4

    • Get Life Cover worth Rs.1 Crore at Rs.18 per day2 – Bajaj Allianz Life Smart Protect Goal

      PLAN NOW
    • Fulfill your Life Goals with Bajaj Allianz Life Goal Assure

      PLAN NOW
    • Life Insurance Term Plan with Return Of Premium

      WATCH NOW
    • Get your Life Goals Done with Bajaj Allianz Life Smart Assist – BINA MILEY MIL-KAR

      KNOW MORE

    Looking for a Term Plan?

    Get Exclusive Discount on online purchase^

    Have us call you

    Please enter a Name
    Please enter a Mobile No.

    ^3% Discount is available for regular premium and limited premium payment frequency under all variants of Bajaj Allianz Life Smart Protect Goal A Non Linked, Non-Participating Pure Life Term Insurance Plan.

    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

    Have Us Call You

    Get your Life Goals Done

    Have us call you

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

    What Is Wheel Of Life Portfolio Strategy In A ULIP?

    Know what wheel of life ULIP portfolio strategy means

    What Is Wheel Of Life Portfolio Strategy In A ULIP?


    calender-blue

    June 12, 2019

    By : Bajaj Allianz Life

    When we are young, our ability to take risks in life is higher but as we grow older we become more and more cautious. When this philosophy is applied to our investment plans, it becomes a great strategy for finding a balance between consistent growth and assured fulfilment of our life goals. Such investment strategies start with a higher weightage towards high return, but riskier investments and then gradually shift towards stable return instruments as the portfolio approaches maturity.

    This 'Wheel of Life' portfolio strategy lets you take advantage of the high-return equity markets in the initial stages of your investment cycle. Towards the later stages, your corpus is eventually de-risked by moving your investments towards fixed return instruments. This approach ensures that you will get a steady return on your investment at maturity, even if the equity markets remained unfavourable. It is preferable for those with long-term life goals such as buying a dream home, providing for child's higher education or early retirement.

    New age Unit Linked Insurance Plans (ULIPs) offer 'Wheel of Life' portfolio strategy out of various portfolio strategies that can be chosen by the investor. This strategy provides a "years to maturity" based portfolio management. It becomes a strategic tool for stable wealth creation as it gradually allows to shift from equity funds to bond and liquid funds over the policy term based on the outstanding years to maturity. ULIP plans also come with a built-in life insurance cover, so that your family's goals are fulfilled no matter what happens.

    Many of the new age ULIPs are highly flexible and allow you to calibrate your portfolio, as per your requirements and risk appetite, over time. When you opt for a Wheel of Life portfolio strategy, say for a 20-year goal, then initially 100% of your investment is allocated to equity funds. As can be seen in the table, the total exposure to equity is higher in the beginning of the goal at 100%. Within that, 30% exposure is to the mid-cap equity fund. But as the term to maturity of the goal reduces, the equity exposure also reduces, and within that -exposure to blue-chip and large-cap/multi-cap equity fund is increased, while exposure to relatively riskier mid-cap equity fund is reduced. Therefore, equity exposure is gradually brought down to 0% before the maturity of the goal, while making 100% allocation is made in bond and liquid funds. The combination of large-cap, mid-cap, mid-cap, bond and liquid funds in your ULIP policy makes sure that your investments are spread evenly between low-risk/return to high-risk/return, thus allowing you to achieve optimal returns. Such ULIP plans not only help in fulfilment of your life goals, but also manages your asset allocation as per your investment horizon and term to maturity.

    Asset allocation Mix or Glide Path for a 20 year goal (in %)

    Years to Maturity

    BlueChip Equity Fund

    Large-cap/Multi-cap Equity Funds

    Mid-cap Equity Funds

    Total Equity Exposure

    Bond Fund

    Liquid Fund

    20

    20

    50

    30

    100

    0

    0

    19

    30

    50

    20

    100

    0

    0

    18

    30

    50

    20

    100

    0

    0

    17

    30

    50

    20

    100

    0

    0

    16

    30

    50

    20

    100

    0

    0

    15

    40

    40

    15

    95

    5

    0

    14

    40

    40

    10

    90

    10

    0

    13

    40

    40

    5

    85

    15

    0

    12

    40

    40

    0

    80

    20

    0

    11

    40

    35

    0

    75

    25

    0

    10

    40

    30

    0

    70

    30

    0

    9

    40

    25

    0

    65

    35

    0

    8

    40

    20

    0

    60

    40

    0

    7

    40

    15

    0

    55

    45

    0

    6

    40

    10

    0

    50

    50

    0

    5

    40

    0

    0

    40

    55

    5

    4

    30

    0

    0

    30

    60

    10

    3

    20

    0

    0

    20

    65

    15

    2

    10

    0

    0

    10

    70

    20

    1

    0

    0

    0

    0

    80

    20

    A cricket batsman is a wonderful analogy for understanding how the Wheel of Life strategy works. When a batsman comes to the crease, his willingness to take risks is higher, and with some heavy-hitting, he may get to the 90s quickly. However, most of the times you will notice that as he approaches his century he becomes careful - the closer he is to the three-figure mark, the safer he plays. This is exactly how the Wheel of Life portfolio strategy works and protects your corpus from market volatility as your dreams come closer to becoming a reality. Life is a cycle, and so are the markets - they rise, they fall and they rise again. ULIP plans which follow the Wheel of Life portfolio strategy create a well-calibrated balance between risk, growth and investment continuity to help you not only reach your investment goal, you exceed it at times.

    Bajaj Allianz Life Videos

    Video Icon

    Smart Protect Goal | Pay For 5 Years, Get Term Insurance Coverage For Life | Bajaj Allianz Life

    Video Icon

    Happy Independence Day 2020 | #IndiaSolveKarteJaa | Bajaj Allianz Life

    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

    #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

    Customer Care Helpline:

    1800-209-7272

    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:

    1800-209-4040

    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)

    Find Us Online