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When it’s about money, everybody dreams the same: to increase it safely and steadily. But in the modern era, where costs continue to rise, it won’t do just to save money in a bank account. You require an intelligent combination of safety and growth. Here’s where ULIPs (Unit Linked Insurance Plans) and Savings Plans can work in tandem like a magic team.

Let’s discuss how you can mix these two together to develop a well-balanced portfolio that provides you with financial security now and growth in the future.

First, what is a ULIP Plan?

A Ulip plan is a unique form of life insurance that also functions as an investment.

• One portion of your money is invested in life insurance (so your loved ones are financially secure if anything happens to you).
• The second half is invested in market-linked funds such as equity, debt, or a combination of both.

That is to say, ULIPs provide you with protection + investment under one scheme.

If you wish to earn more returns, you can invest in more equity funds. If you want security, you can invest in debt funds. And for a balance, you can invest in a combination of both.

And what is the Best Savings Plan?

A savings plan is primarily meant to save your money securely and, at the same time, provide you with assured returns. These are low-risk plans, so your money is secure and you know the return at the end of the plan.

A good savings plan can assist you in:

• Creating a fixed corpus for your future needs.
• Arriving at a regular income post-retirement.
• Reaching short-term or long-term objectives such as education, marriage, or purchasing a house.

The most suitable savings plan for you will be based on your goals, the amount of investment you can put in, and the duration for which you want to save.

Why combine ULIP Plans and Savings Plans in your portfolio?

Imagine your portfolio as your meal. You don’t consume just sweets (equity) or plain rice (safe savings). You combine them to have the optimum nutrition.

Similarly:

• ULIPs provide your money with the opportunity to grow faster since they invest in the market.
• Savings Plans provide your money with safety and assurance.

By mixing them, you have:

• Growth from ULIPs.
• Safety from Savings Plans.
• Life Cover from both.
• Tax advantages under Section 80C and 10(10D) of the Income Tax Act.

A step-by-step guide to making a balanced portfolio

1. Understand your goals

Ask yourself:

• What am I saving for?
• Do I desire growth in the long run or assured money at a specific point in time?
• How much risk am I willing to take?

If you are young and willing to accept some risk, you can invest more in ULIPs. If you are nearing retirement or prefer assured money, you can invest more in savings plans.

Know your risk appetite

Your risk appetite is your tolerance for market fluctuations.

• High risk: You are able to accept fluctuations – Select a ULIP with greater equity exposure.
• Low risk: You don’t want market tension – Prefer more debt funds in ULIPs and depend more on savings plans.

3. Choose your investment proportion

Easy starting point:

You can adjust this proportion depending on your age, income, and requirements.

4. Select the appropriate ULIP plan

Opt for a ULIP that provides:

• Fund switching facility (so that money can be transferred from equity to debt and vice versa)
• Low fees
• Past fund performance
• Flexible payment of premiums

Example: In case the market is good, you can retain more in equity funds. If the market is down, you can switch to debt funds in order to safeguard your returns.

5. Choose the optimum savings scheme

The optimum savings scheme shall:

• Provide assured maturity returns.
• Provide you with the flexibility of a lump sum or periodic income.
• Be reasonably priced.
• Be from a reputable insurance company.

Rebalance your portfolio periodically

Markets fluctuate. Your life shifts. So your portfolio needs to shift as well.

• Review your ULIP fund performance every 6–12 months.
• Realign your investment ratio if necessary.

Example: If you are nearing your goal, you can gradually shift your ULIP funds from equity to debt to secure your returns.

Advantages of this blend

Balanced growth and security

• ULIPs offer greater growth opportunities.
• Savings plans provide constant returns.

Life protection

• Both provide life cover, hence your family is secured in the event of any unfortunate incident.

Tax advantages

• Premiums of both are tax-deductible under Section 80C.
• Maturity payouts are tax-free under Section 10(10D), provided certain conditions are met.

Flexibility

• ULIPs enable you to change funds.
• Savings plans allow you to select income or lump sum options.

Peace of mind

• You know half your money is growing while the other half is secure.

Example of a balanced portfolio with ULIP and Savings Plan

Assuming you have ₹10,000 as a monthly investment:

• ₹6,000 → ULIP plan (invested in 50% equity and 50% debt funds)
• ₹4,000 → Top savings plan (with guaranteed maturity benefit)

In 15–20 years, the ULIP can reward you with high returns in good markets, and the savings component will provide you with a guaranteed return irrespective of how the market performs.

Avoid these common mistakes

• Not reading the policy details – Always review charges, lock-in period, and returns.
• Stopping the ULIP early – ULIPs are best when held for a minimum of 10–15 years.
• Overlooking reviews – Don’t buy and forget. Check your portfolio once a year at least.
• Keeping all money in one plan – Never rely upon only one form of investment.

Conclusion

Building a balanced portfolio is like constructing a strong, stable boat; it must ride smoothly in both serene and turbulent waters.

By putting together a ULIP plan for growth and the best savings plan for security, you can achieve:

• Good returns in the long run.
• Guaranteed cash when you need it.
• Family life cover.
• Tax relief annually.

The secret is to begin early, save regularly, and review your portfolio periodically. With this wise combination, you won’t just be saving, you’ll be building wealth while also securing it.

Bhupendra singh chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur kiranhis insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.