Page 256 - DCOM507_STOCK_MARKET_OPERATIONS

Unit 12: Mutual Fund

12.7.3 Consider Your Needs and Risk Profile while Choosing ULIPs Notes

In a volatile market situation, you can invest in ULIPs by way of Systematic Investment Plan
(SIP) and turn the volatility of the market into an advantage for you. Keep your long term
financial goals in mind while choosing a ULIP portfolio so you aren’t affected by short term
swings in the market. If you are a low risk profile investor, then pick debt heavy ULIPs. If you’re
younger or have a higher risk profile, then get into an Equity version.

12.7.4 Compare and Choose ULIPs

While choosing ULIPs you must find out how debt, equity and balanced schemes are performing.
What are the expenses you will incur with the choice of ULIPs? How many times can you change
the asset allocation of your ULIP account? Does your ULIP offer you a minimum guarantee?
Find answers to these questions before you choose a ULIP.

Task Research on new schemes of ULIPs in India.

Self Assessment

State whether the following statements are true or false:
15. ULIPs are a category of goal-based financial solutions that combine the safety of insurance
protection with wealth creation opportunities.
16. While choosing ULIPs you must find out how debt, equity and balanced schemes are
performing.



Case Study John Hancock Mutual Funds Financial Information
Portal

ohn Hancock Mutual Funds (JH Funds), a subsidiary of Manulife, manages more than
$50 billion in variety of open- and closed-end mutual funds and various
Jother investment instruments. In 2004, Manulife acquired John Hancock, and, during
its analysis of the various acquired business units, decided that it wanted to elevate JH
Funds, then ranked in the high teens among U.S. mutual fund providers in terms of assets
under management, to a top-ten provider. Seizing leadership in the online marketing of
mutual funds was a prominent part of its plan.
JH Funds had been an early pioneer in online mutual fund marketing, going live with
jhfunds.com in 1999. That website ran on ATG Dynamo, using an Oracle database and
Interwoven Teamsite as a content management system. Dynamo had mostly failed to gain
acceptance as a web development platform, and the site’s look and feel were showing
their age.

Requirements
JH Funds decided to undertake a complete rewrite of the site, with the following goals:
 Simpler, more intuitive site navigation
Contd...

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