How ULIP funds are calculated to generate returns?

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How ULIP funds are calculated to generate
returns?
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• Insurance plans are the best way to build
  financial security for our family. But due to the
  rising inflation costs, improvised lifestyle,
  growing aspirations of people, and
  ever-increasing needs, it becomes imperative to
  have a steady income that apart from insurance to
  match the pace of the rising living standards. We
  all want to see our money grow each day just like
  a money plant.

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• With this though in mind, insurance companies
  have introduced Unit Linked Insurance Plan
  (ULIPs). ULIPs not only offer insurance cover but
  give assured returns. ULIPs are just like Mutual
  funds, where investors purchase units at their
  Net Asset Value (NAV) from a fund, along with
  added advantage of having a life cover from an
  insurance company.
• Thats, why the term linked is involved. Your
  insurance component is linked to a ULIP fund.
  Insurance companies promise you guaranteed ULIP
  NAV returns. But it is advisable to talk to a
  financial expert and understand the
  conceptualization of a ULIP NAV and then go for
  investments

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• ULIP NAV is calculated by adding the ULIP funds
  for a particular day and deducting charges like
  management fees, operating expenses, marketing
  costs and other expenses incurred. Net Asset
  Value represents the value of the total holding
  of the ULIP fund. It is divided by the number of
  units held by investors. This represents the NAV
  per unit.

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• Most people think higher ULIP NAV would include
  investment in expensive funds and often choose to
  skip it from the investment agenda. They opt for
  an investment with a lower NAV just to save costs
  on premiums. However, let's understand that the
  NAV is merely the book value of the ULIP fund
  investment minus the related expenses. It only
  represents the fair price of the asset should the
  mutual liquate the investments on a particular
  day. Investors dont have to be worried about the
  price being too low or high. Instead, the
  significance of your investment should not be the
  basis for choosing the right ULIP fund.
  Therefore, a higher or lower ULIP NAV holds no
  importance and should not be the basis for
  identifying the right ULIP fund.

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