Written by : Knowledge Centre Team
2026-01-26
1109 Views
8 minutes read
Share
ULIPs, or Unit Linked Insurance Plans, are versatile wealth-building options from life insurers. ULIPs pack a punch when it comes to investing and allow investors to create and manage their multi-asset portfolios. ULIPs are one of the rare investment options which can fulfil all three objectives of investment through a single investment plan:
- Wealth creation
- Wealth preservation
- Wealth distribution
Inbuilt portfolio management features of ULIPs help you achieve these three objectives, especially the wealth creation goal. But, why do you need a portfolio management strategy? How is it different than investing in a single instrument? Wouldn’t it be better if we can invest in one place and simply hold for a long time?
Why Portfolio Management?
Viren and Hema are colleagues working and earning almost the same amounts. Their savings and investments are also identical – 50:50 equity and debt investments. However, there is one key difference:
- Hema keeps an eye on her investments and reallocates money to equity when markets are looking down and vice versa.
- Viren on the other hands doesn’t like to spend much time with his investments. He simply invests 50% of his savings in equity and 50% in debt funds.
In steady equity markets, both portfolios of both Hema and Viren would look almost identical. But, when the markets see a downtrend and then regain upward movement, Hema’s portfolio will see better gains than Viren.
This is simply because Hema readjusted her portfolio to the changing risk scenario in the equity market. She moved some money to equity funds from her debt holdings and when the markets recover; her equity portfolio would register more gains.
After the gains she will again readjust the portfolio to bring the debt-equity ratio back to 50:50; i.e. transferring the gains from equity markets to safer debt investments. This is why you need portfolio management. In short, portfolio management will help you:
- Maintain your portfolio risk as per your risk appetite
- Take adequate advantage of market movements
Remember your rate of return on investment is a result of the risk in the investment. The higher the risk, the higher the return on investment. But, you need to keep your portfolio’s risk as close to your comfort level as possible.
If your portfolio risk is too low, your investment growth will suffer. If it’s too high, your peace of mind will suffer and so the chances of loss will increase.
Therefore, balancing your portfolio risk-return profile is the key to long-term success with investments. This is what portfolio management will help you achieve.
Portfolio Management in ULIPs
If investment management is not something you want to do full time, you need to consider automating most of your investment transactions. While you can easily automate investing by allowing auto-debit from your bank account, automating portfolio management could be difficult.
But, with ULIPs like Promise4Growth Plus plan from Canara HSBC Life you can automate even the portfolio management. Promise4Growth Plus offers you four different portfolio management strategies to manage your asset allocation.
The best part is despite the automation you can have full control over your portfolio and intervene when you see the opportunity. You can also change the strategy within the policy duration.
But, once you choose a portfolio strategy, the plan will automatically manage and adjust your asset allocation regularly. This is why ULIPs can be your personal portfolio manager.
Portfolio management in ULIPs can help you tackle the market risk and exploit the market opportunities with minimum involvement.
Portfolio Management Strategies in Promise4Growth Plus
Promise4Growth Plus ULIP plan from Canara HSBC Life offers four different strategies to manage your portfolio:
Systematic Transfer Strategy in ULIP
Systematic transfer means a gradual flow of funds from one asset to another. In the case of Promise4Growth Plus, the money is moved from liquid fund to an equity fund.
Why Systematic Transfer?
The systematic transfer allows your lump sum investment into the plan to benefit from rupee cost averaging while getting into the equity funds. Rupee cost averaging means you receive more units when the markets are low and lesser units when markets are high. Thus, reduce your average cost of units in the fund.
How does it work?
When you invest your funds in the plan, your entire investment is saved in a liquid fund. Every month the plan will liquidate 12th part of total allocated units (in the beginning) and then use the funds to purchase equity fund units.
When to Use?
If you do not want to invest in monthly mode, you can use this strategy to create the rupee cost averaging for your equity allocation.
Return Protector Strategy
Money is transferred from equity funds to debt fund. This transfer is not systematic but depends only on the gains of equity fund allocation. Once the fund value grows to a set threshold, the gain is moved to a debt fund.
Why Return Protector?
Return protector helps you collect your gains from the equity funds. But does not increase your risk when equity markets don’t perform well. This strategy will gradually reduce your equity fund allocation and thus, your portfolio risk.
How does it work?
You can fix a return percentage for your equity fund allocation between 5-10%. The moment your equity fund allocation gains 5% (the fixed return value) the profit will be booked and transferred to debt fund.
When to Use?
If you want your portfolio risk to go down as you age, this strategy is perfect.
Auto Fund Rebalancing Strategy
This strategy works on a fixed asset allocation ratio. Once you fix the ratio of equity, debt and liquid assets in your overall portfolio the plan will adjust your allocation every three months to match the ratios.
Why Auto Rebalancing?
Auto rebalancing achieves the dual objective of keeping your portfolio risk stable while exploiting the market opportunities. Thus, you can consider this strategy the better of the three for wealth accumulation goals.
How does it work?
You fix the allocation ratio for debt, equity and liquid funds, say 50:30:20, or distribute only between equity and debt. The plan will revisit the allocation every three months and readjust the asset allocation to the decided ratios.
For example, after three months your allocation changes to 55:28:17. The plan will liquidate the gains in equity funds and distribute it to debt and liquid funds.
When to Use?
This strategy is great when you have 10+ years to stay invested and build your corpus. It works better for wealth creation goals and long-term financial goals.
Safety Switch Strategy
This strategy simply helps you save your accumulated corpus from market volatility in the final 4 years of your policy. The plan will gradually move your entire holding to liquid funds systematically over 4 years.
Why Safety Switch?
The safety switch option protects your accumulated corpus from market fluctuations as you close in on your financial goal. You can use this strategy with the other three strategies to ensure your gains on the high-risk allocations remain safe near the maturity.
How does it work?
In the last four policy years, the plan rebalances the portfolio at the beginning of each year. The rebalancing ensures that liquid funds allocation matches the scheduled weightage of 30%, 60%, 90% and then 100% for the last 4 policy years.
When to Use?
You can use this strategy with any of the other three strategies. If you use this strategy, in the last four policy years, only this strategy will be active.
Get a Personalised ULIP Plan for Wealth Creation & Protection
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy No.
Address of the Policyholder as per records
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Recent Blogs
Stop ULIP Before 3 Years? Penalties, Lock-in & Fund Rules
19 June '26
953 Views
7 minute read
Can you stop ULIP before 3 years? Know lock-in rules, penalties & what happens to your funds if you discontinue early.
Read More
Ulip
What Is Sum Assured in ULIPs? Meaning, Examples & Key Differences
19 June '26
2015 Views
7 minute read
What is sum assured in life insurance? Understand its meaning, importance & how it differs from maturity amount.
Read More
Ulip
What Is ULIP Plan? Full Form, Meaning & Benefits (2026)
19 June '26
1934 Views
7 minute read
What is ULIP? Learn its meaning, full form, benefits & why investors choose ULIPs for tax savings and long-term wealth creation.
Read More
Ulip
ULIP Pros & Cons: Benefits, Risks & Should You Invest?
19 June '26
1928 Views
7 minute read
Is ULIP a good investment? Compare ULIP advantages, disadvantages, benefits & risks to make an informed decision.
Read More
Ulip
What Happens If You Stop ULIP Premium? Lock-in & Fund Rules
19 June '26
1090 Views
7 minute read
What happens if you stop ULIP premiums? Learn about lock-in period, penalties, and how discontinued policy funds work.
Read More
Ulip
6 Best One-Time Investment Plans in India for High Returns in 2026
19 June '26
1221 Views
12 minute read
Looking for the best one-time investment plans? Discover top options in India offering high returns for different goals.
Read More
Ulip
What Is NAV in Insurance? Meaning, Full Form & Examples
19 June '26
1896 Views
7 minute read
What is NAV? Learn its meaning, full form, calculation & how it affects your investment value in simple terms.
Read More
Ulip
ULIP Tax Benefits & Taxation 2026: 80C, 10(10D) Explained
19 June '26
3939 Views
7 minute read
Explore ULIP tax benefits under Section 80C & 10(10D). Know tax-free limits, exemptions & how ULIPs help you save tax.
Read More
Ulip
10 ULIP Charges Explained: Allocation, FMC & Hidden Costs
19 June '26
1017 Views
6 minute read
Learn about ULIP charges including allocation, fund management & policy fees. Know how costs impact your returns.
Read More
Ulip
Unit Linked Insurance Plans - Top Selling Plans
Canara HSBC Life Insurance offers online ULIP plans that blend life insurance protection with investment growth, helping you build wealth while securing your family's future.
Wealth Today, Protection Always
Promise4Growth Plus
- Life Cover up to 100 Years
- 13 Fund Options
- Fund Switching Option
- Waiver Of Premium
Secure Your Future with Confidence
SecureInvest
- Life Cover up to 100× Annual Premium
- 12 Fund Choices
- Automated Portfolio Strategies
- Maturity Booster
Invest Smart, Live Smart
Wealth Edge:
- Flexible Premium Options
- Multiple Fund Allocations
- Systematic Withdrawals
- Premium Waiver Benefit
Popular Search
- What is ULIP?
- ULIP Tax Benefit
- ULIP Full Form
- ULIP Vs Term Insurance
- Best ULIP Plans
- Best ULIP Plan For Child
- Allocation Charges In ULIP
- ULIP Returns In 15 Years
- Difference Between ULIP and Mutual Fund
- ULIP Vs SIP
- Mortality Charges In ULIP
- What is NAV?
- How ULIP Works?
- Tips to Buy ULIPs
- ULIP Calculator
- Power of Compounding Calculator
- ULIP Tax Benefits in India