Instead of investing in stock markets, Puneites are now investing their money in traditional insurance products that promise guaranteed returns.
Instead of investing in stock markets, Puneites are now investing their money in traditional insurance products that promise guaranteed returns.The ongoing economic slowdown and berserk nature of stock markets across the globe has forced investors in Pune to play safe.
Instead of investing in shares and mutual funds, people are now opting for investments in traditional insurance products that offer guaranteed returns.
Besides, even the insurance sector has witnessed a paradigm shift. The investors are now considering traditional insurance policies over Unit Linked Insurance Plans (ULIPs) that offers high returns. And as a result, the ULIP sales have dropped in last two months.
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Also, the latest study done by the Insurance Regulatory Development Authority (IRDA) shows that premium collections of life insurers have dipped by 2 per cent.
Thus, to lure investors, insurance majors have come up with plans that are offering guaranteed returns.
Rahul Agarwal, chief distribution officer of ING Vysya, said, "There's a general feeling among the people that if they invest in ULIP, their capital might be at risk.
Thus, they are investing in traditional policies, as their capital amount and returns are far more secured."
Security firstSimilarly, Prem Pandey, business developer of HDFC Standard Life Insurance said that about 18 months ago, there was a trend of investing in ULIP.
But now, people are opting for plans in their money is secure.
Also, in the background of economic slowdown, professionals have postponed their investment plans. Pandey added, "As there's no assurance of jobs these days, it's quite difficult to convince people to invest."
