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How to choose an investment strategy for a Unit-Linked product?

Investment life insurance Unit-Linked became available for Kazakhstani people last year. A potentially high return on investment makes this product. The chief of the investment life insurance department at Nomad Life told LIFE INSURANCE about investment strategy examples.
How to choose an investment strategy for a Unit-Linked product?

Each contribution under an investment life insurance contract is divided into two parts: insurance (guaranteed) and investment. The first part is invested in ultra-reliable fixed income securities, and the investment part is directed to highly profitable but also more risky assets. This distribution of client funds is intended to protect investments from market fluctuations. The client independently chooses where the money will be invested when buying an investment life insurance policy. The return depends on the strategy he chooses.

ZOLOTO NOMADOV Invest is intended for those who want to protect their loved ones in case of an insured event and increase their capital by investing in passive asset management funds. This is the best way to enter the world capital markets, as well as a lucrative financial instrument for diversifying funds,” explains Nurbek Abzhanov, chief of the investment life insurance department of JSC LIC Nomad Life.

So far, Nomad Life has formed eight investment portfolios based on the historical profitability of stock indices diversified both by sector and industry: “500 largest US companies”, “China Stock Market”, “High Technologies”, “Healthcare”, “Energy”, “Gold Mining”, “100 largest US IPOs”, “US Treasury bonds”.

“The main goal of each area is to follow the benchmark index. For example, the 500 Largest US Companies portfolio includes assets below the S&P 500 Total Return. I would like to note that we are not standing still and will replenish the list with several more investment areas very soon,” Nurbek Abzhanov emphasizes.

Benefits of ZOLOTO NOMADOV Invest

Flexible in management: throughout the entire term of the agreement, the client can independently redistribute the funds of the investment part between investment portfolios. If desired, the amount of savings can be replenished or partially withdrawn.

Investing in the best: assets in investment portfolios are managed by the world's largest investment companies, each of which manages more than US $3 trillion.

Profitability: financial instruments included in the investment portfolios of ZOLOTO NOMADOV Invest have a high historical return, which gives clients the opportunity to earn many times more than putting them on a bank deposit. However, it is important to remember that the client bears all investment risks and return is not guaranteed.

How to choose a strategy

Investment insurance policyholders choose strategies based on their preferences by analyzing the performance of historical profitability, geographic presence or sector. “The client can choose one investment portfolio or combination of investment portfolios. “Our clients can independently redistribute the funds of the investment part between investment portfolios throughout the entire term of the agreement, - explains the source. - We also have developed ready-made package solutions: “Balanced Strategy”, “Potential Growth Strategy” and “Conservative Strategy”, the names of which speak for themselves. While the first one includes general market indices, the second consists of indices with high historical returns, which include the US and Chinese stock markets. We placed low volatility indices but also low historical return in the Conservative Strategy”.

Photos are from open sources.

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