How to know about the Equity of Market as i want to invest on Reliance Health + Wealth Policy?

Question

How to know about the Equity of Market as i want to invest on Reliance Health + Wealth Policy?

Answer 1

Since this is basically an insurance plan with some benefits from the equity market, you do not have to study  in deep about the equities.  Also this scheme might not invest in equities completely - but invest in various other instruments also.

Answer 2

Friend,

Said policy is not a ULIP but is it coming in the group of ULHP (Unit Linked Health Plan). One policy from LIC is the only competitor for this.

In my personal opinion, taking this policy is costly because of its complicated and difficulty to understand the structure nature. In plain word, just forget the same. that is better. If you still want the same by captivating its advt. go ahead. But before, be aware about this one well to not lose your money in the future.

This policy is more complicated than ULIP and cost is very huge and not affordable. Last week Outlook money has a very nice feature about this policy. By it and read then decide. (outlook money June 9 edition)

does this make sense

Answer 3

Knowledge of equity market is not required to buy a insurance plan. You need to understand plan and investment instrument.

As a thumb rule if you are buying a ULIP Plan as the RH&WPlan is you should plan for maximum duration.

Another rule for investing is if you are planning for more then 7 yrs go with maximum equity fund but remember you should opt diversified fund as now insurance companies are also launching sector/ themetic funds. If your investment horizon is 4-7 yrs you can opt maximiser or high equity balanced fund. So reduce equity component as your maturity comes closer.