A long time ago, traders used to assemble and trade physical shares under a tree. This was followed by a ring system where traders yelled in a herd to buy and sell shares.
Now, the investment domain has taken on a remarkable trajectory where numerous financial products have been introduced and are sold in the market.
One such product is the Unit Linked Investment Plan. Let’s not forget about the product’s tag : killing two birds with one stone.
ULIP is an insurance+investment plan where the buyer pays a premium. This premium is deployed into both insurance and investment tools as decided by the buyer. Investments can be in equity, debt, or balanced funds.
In investment, someone who is looking forward to wealth accumulation and growth can opt for an equity fund, whereas someone who is looking for capital protection can invest in a debt fund. A balanced fund is a mix of both.
Before 2010, ULIP had a lock-in period of 3 years but IRDA (Insurance Regulatory and Development Authority of India) made it to 5 years where partial withdrawal of investment returns is allowed. This scheme also offers tax benefits.
ULIPs come with a lot of flexibility that allows you to choose your premium amount, tenure, and payment term. You can pay the premium amount monthly, quarterly or half-yearly. Not only this, you can start with a low amount and top-up later.
Moreover, you can adjust its risk-reward structure by choosing the asset class you would like to invest in. With equity comes higher returns but with downside risk. So is the case with debt which has less risk and so are the returns.
With the revolution in the tech era, Trading and Investment, which once was a hard nut to crack, is moving to automation. Even small retailers can benefit from passive income through the share market thanks to this.
To assist novice traders in their trading journey and make life easier for experienced ones, AlgoBulls comes up with an end-to-end automated AI-Backed platform for algo trades. Algo trades assist your trading system from head to toe, such as from order entry, indicator chipping, stop-loss management, time period, exit order, risk management and more.
In addition to being fully automated, AlgoBulls allows its users to define their trade quantity and P/L for it; this eliminates the requirement for initial or minimum investment capital and gives investors a competitive edge, whether they are retailers or HNI individuals.
Thus, a tech revolution aided by another algo-trade revolution!