ULIPs and mutual funds are two popular yet distinct investment avenues, each coming with its unique set of benefits and drawbacks. Know which one is better for your individual needs and preferences.
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As the world of finance continues to evolve, innovative financial instruments are being harnessed to offer investors unique opportunities while ensuring the safety of their initial investments.
One such product is the MSCI Index, a capital guarantee plan prominent in the UAE. The MSCI Index, intrinsically tied to global market performance, offers a robust investment opportunity that extends beyond traditional boundaries.
Its standout feature is an investor-friendly approach that reassures individuals their principal investment will be safeguarded from potential losses. Simply put, regardless of how the underlying investments perform, the fund company absorbs the incurred losses and ensures that the principal amount remains untouched. This striking feature alone offers an appealing safety net for investors venturing into the uncertain landscape of financial markets.
In our discussion below, we will delve into the key features of the MSCI Index, exploring its specific features, the application process, benefits, and associated risks to offer comprehensive insights to both seasoned investors and beginners alike.
A capital guarantee plan is an investment strategy that promises the protection of the principal amount invested. This type of plan is designed to guard investors against potential losses by ensuring that the principal amount invested remains intact, irrespective of the performance of the underlying investments.
This innovative financial instrument provides a significant degree of security for investors, making it a highly appealing choice for those who wish to venture into the financial markets without risking their initial investments.
The MSCI Index, which is a significant part of the capital guarantee plan in the UAE, is a globally recognised index that offers an investment opportunity for investors. In the context of a capital guarantee plan, the MSCI Index serves as the underlying investment that the plan is tied to.
As the performance of the plan is linked to the performance of the MSCI Index, it provides investors with the opportunity to benefit from potential market growth while having the assurance that their initial investment is safeguarded from potential losses.
The MSCI Index plan offers a wide range of benefits, which include affordable minimum contributions, guaranteed principal protection, loyalty bonuses, free partial withdrawals, and a guaranteed death benefit, among others. However, it's important to note that these features and benefits are subject to specific conditions and guidelines outlined in the plan document.
Without further ado, let’s take a look at the salient features and benefits of the MSCI Index -
Important: It is important to note that some features such as monthly payments, loyalty bonuses, and principal protection are subject to specific conditions and guidelines outlined in the plan document. Investors are advised to familiarise themselves with these details before subscribing to the plan.
The MSCI Index allows for a diversity of investors and welcomes applications from individuals, companies, and other legal entities. The plan allows up to two applicants per policy, which creates an opportunity for shared investment responsibilities.
Other eligibility criteria are listed below -
The MSCI Index plan comes with both partial and full withdrawal provisions.
Check out the following points to understand the functioning of beneficiaries with respect to the MSCI Index -
Note: The selection of a printed version doesn’t mean the replacement of the electronic delivery method.
Applying for the MSCI Index plan is a straightforward and hassle-free process, especially when done through an efficient insurance platform like Policybazaar Insurance UAE. Here's a step-by-step guide on how to apply -
Applying for the MSCI Index plan through the platform of Policybazaarinsurance.ae simplifies the whole process and makes it more accessible to a broad range of investors. With this simplified application process, you're just one step closer to securing your financial future!
Apart from the capital-guarantee plans, you can check out some other investment options in the UAE -
In mutual funds, the funds are collected from numerous investors to form a diversified portfolio encompassing various types of securities like bonds, stocks, and other assets. This investment portfolio is overseen by skilled fund managers. For individual investors, mutual funds present a chance to venture into a variety of asset classes without necessitating a large upfront capital investment.
Stocks, at their core, are investment instruments representing ownership in a company. When an individual or investor acquires a stock, they become a shareholder, which grants them a share of the company's earnings and assets. The trading of stocks occurs on stock exchanges where their prices vary based on the demand in the market and the performance of the respective company.
An Exchange-Traded Fund (ETF) serves as an investment vehicle that amasses funds from a multitude of investors to invest in a diverse portfolio that may include stocks, bonds, and various other assets.
These funds are then traded on stock exchanges, which allows investors to buy or sell shares throughout the day at market prices. Given their versatility and the potential for long-term growth, ETFs have risen in popularity among investors looking for a diversified, yet affordable, investment solution.
Check out some frequently asked questions related to MSCI Index in the next section.
Ans: The MSCI Index plan provides a range of features such as flexible contribution plans, convenient currency, affordable minimum contributions, flexible payment options, and guaranteed principal protection. It also has a structured fee, loyalty bonuses, provision for free partial withdrawals, and a guaranteed death benefit. There are also various other features related to policy management, like termination, reinstatement, loan provisions, and assignment.
Ans: Individuals, companies, and other legal entities can easily apply for MSCI Index Plan. However, it's not available for sale in the United States and for U.S. citizens, residents, or those residing in the Cayman Islands. As there might be some restrictions for residents of specific countries, potential investors are advised to inquire about these before applying.
Ans: After the initial period, investors can make partial withdrawals provided they maintain a surrender value of USD 2,400. There's also an option for a full surrender after the initial period (subject to surrender charges).
Ans: Yes, you can change the beneficiaries of your MSCI Index plan by sending a written request to the company.
Ans: Upon the maturity of your MSCI Index plan, you will be notified by the company and asked to provide instructions regarding the disbursement of the funds.
Ans: The MSCI Index plan offers multiple payment options - credit card, direct debit, check/cashier check, and wire transfer. You can also change your payment method and/or frequency without any additional charges.
Ans: Yes, the MSCI Index plan offers a policy loan provision, which allows plan participants to borrow up to 40% of the Cash Surrender Value (subject to the company's approval).
Ans: Yes, the ownership of the MSCI Index plan can be transferred by submitting a written request to the company. This allows for flexibility in managing the investment and can be useful for estate planning purposes.
Ans: The MSCI Index plan offers a range of benefits for long-term investors such as attractive principal protection guarantees and loyalty bonuses. It also rewards long-term commitment by reducing the surrender charge over time. Additionally, the structured fees, affordable minimum contributions, and flexible payment options make it suitable for long-term investment.
Ans: In the unfortunate event of a death, the MSCI Index plan provides a guaranteed death benefit that amounts to 101% of the account value, which gives financial security to the investor's family. However, it's subject to certain conditions like whether all premiums were paid within the grace period and so forth.
Ans: Yes, while you can decrease the premium after the initial period, this action may negate the guarantee. Moreover, you must adhere to the minimum contribution amount rules.
Ans: If the plan participant fails to make premium payments during the initial period or the policy runs out of accumulation units at any time, the policy will lapse. However, the plan participant can request to reinstate the policy within two years after the lapse date provided that they cover all past-due premiums and charges.
Ans: Application for the MSCI Index is made quite easy through online insurance platforms like Policybazaar Insurance UAE. You can start the process by accessing the platform and selecting ‘capital guarantee plans’ from the ‘investment’ drop-down menu.
Once done, fill out the lead form with your personal and financial details. Choose the MSCI Index plan from the quotes page if it aligns with your financial objectives. After submission of the application, a representative will connect with you to help you with the next steps.