ULIP is one of the best investment options in the market. It is a market-linked plan that gives greater returns over the period of time you stay invested. However, since there are so many plans available in the market, it can be quite a challenge to find the best plans with greater returns over the lifetime of the investment. Using a ULIP calculator can help you find plans that are best aligned with your financial goals, and your risk appetite. Since every investor has a different risk appetite, it’s important to determine yours before you decide to invest any amount of money into the market.
What is a ULIP Calculator?
A ULIP calculator helps you explore various ULIP plans available in the market, and shortlist those that are best aligned with your financial goals. It gives you an estimated figure based on the sum you wish to invest, the duration you want to stay invested at prevailing market interest rates and estimating returns on market performance.
How Does a ULIP Calculator Work?
A ULIP calculator works on a simple formula:
- You enter a few basic details – your name, gender, etc.
- Enter the sum you want to invest, duration, etc.
- The estimated results are shown to you across various ULIP plans
Benefits of Using a ULIP Calculator
Now that you know the basics of a ULIP calculator, and how it works; let’s look at a few of the benefits of using a ULIP calculator!
1. Make Informed Decisions
Informed decisions give you the maximum returns on your investments because they are based on logic and facts. And, unless you make smart investment decisions, you cannot expect great returns. An investment calculator will help you determine the best types of investments in India for yourself based on your risk appetite to match your future financial goals.
2. Cuts Down the Manual Process
Manually going through every single plan, making comparisons, calculating the returns on your investment based on prevailing interest rates, and estimating market returns can be a tedious process. It isn’t always possible unless you are a seasoned investor. A ULIP calculator and savings calculator automate the entire process and give you instantaneous results reducing time and effort.
3. Saves Time
Since the entire process is automated, it saves time. When it comes to investments, the sooner you invest, and the longer you stay invested, the greater the returns you can expect in the longer run.
4. Helps in Financial Planning
It’s important to plan your financials in a way that you get returns that can help you meet your long-term financial goals like buying a property, sending your kids to a foreign university, getting them married, or building a corpus for a comfortable retired life. No matter what your goals may be, the importance of proper planning cannot be discounted.
5. Meet Short-Term Goals
It’s not only about long-term goals, even meeting short-term goals requires proper planning. A ULIP calculator and a savings calculator enable you to plan for short-term financial goals by investing your money in plans that give you greater returns over a short period as well.
6. Helps in Diversifying your Portfolio
The importance of diversifying your financial portfolio can’t be overlooked. for the overall well-being of your financial future. By investing your money across various financial instruments, you can generate greater returns over the time you stay invested in the market. Smart investors never invest all of their money at the same place, and neither should you if you want stable and good returns.
7. Helps You Prepare for Inflation
Preparing for inflation is very important, and therefore, planning your investments in a way that it can match up to future inflation rates is crucial. Unless your investments match up to the inflation rates, it can get difficult to meet your financial goals. Since investments are on a constant upswing year-on-year, your investments should keep pace with rising costs as well.
If you are really planning on getting the returns you want, then never make investments based on a hunch alone. Research, compare, and shortlist investment plans based on facts and logic, and you are sure to get the best ROI on your investments.
So, do yourself a favor and use the calculator now that you know how it can help you make informed investment decisions!