Switching

Switching lets you move your holding from one fund to another without ending the policy — from equity to debt as you approach a goal, for instance.

The rules and any limits are set out in the policy document. It is one of the genuine advantages of a unit-linked plan over a fixed savings product.

Related terms

• ULIP A unit-linked insurance plan. Part of the premium buys cover, the rest is invested in funds you choose.
• Fund value The current worth of the units held under a unit-linked policy.
• NAV Net asset value — the per-unit price of a fund, published regularly.

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