IN A scheme you have an option of switching between your funds. You can choose either to switch or stay in the same funds. According to your risk appetite and other factors one should make a move.
While investing in an ULIP scheme you have an option of switching from an equity fund to a debt fund that too without paying a fee. In the stock market one would switch their funds or stocks according to the market conditions to earn profits. But they make a very calculated move. In an ULIP scheme since it is a mix of an investment and insurance portfolio before switching one should be very sure. Switching would mean interfering with your insurance cover. So before doing so make sure it’s a well planned decision. - Check if the switch is in line with your long term goals. Also if you have to switch check if it will hamper your financial goals or will it be beneficial to you. - Finally before switching check how many more years are left for the policy to mature. If it is more than 10 years you should stay invested in the same funds but if it lesser then you can switch. Disclaimer: Please note that the information provided is collected from sources publicly available & we believe to be reliable. The website doesn’t warrant the accuracy, reliability & absolute information available on the website. Participation by site visitors or registered customers is on a voluntary basis. The policies are offered by various life Insurance & non-life insurance offering companies and Bimadeals does not seek to, either directly or indirectly, advise, offer, solicit or recommend that any person who is or proposes to become its member should purchase the Policy.
- While switching keep in mind your asset allocation ratio. This should be according to your financial needs and goals. One should stick by the ratio decided and not move according to the market situation. For example if you have decided to have an 80:20 equity-debt ratio, even if markets situation change upwards or downwards you need to stick to the same ratio. Or if you have to switch make sure the ratio is maintained.
- Age is also big factor while switching your funds. The younger you are the more risk appetite one has and hence you can switch to equity funds. And if you are older around the age group of 40-45 years, your policy term will terminate sooner so you must make a move whereby you get maximum returns.
Hence before switching check if the above factors hold good for you and then make your move. Besides this you are allowed upto 3 free switches a year. 
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