ULIP Returns in last 10 Years

Table of Content

1. What Is a 10-Year ULIP Policy?

2. How Does a 10-Year ULIP Policy Work?

3. Why Choose a 10-Year ULIP Policy?

4. How Are 10-Year ULIP Policy Return Rates Calculated?

5. Key Factors Affecting ULIP Returns in 10 Years

6. Projecting ULIP Returns After 10 Years

7. Maximising ULIP Returns After 10 Years 

8. Conclusion

9. FAQs on ULIP Returns in last 10 years

Over a decade, ULIP returns in last 10 years reflect steady long-term growth as market cycles balance out short-term fluctuations. Returns evolve as invested funds benefit from compounding, improved market stability, and strategic asset allocation. 

Equity-oriented ULIPs may show higher but more volatile growth, while debt and balanced funds offer steadier performance. Over 10 years, fund selection, asset allocation, and market-linked appreciation play a crucial role in shaping outcomes. 

Additionally, ULIP charges reduce over time, allowing a larger portion of the premium to remain invested. Therefore, staying invested for a full decade helps capture complete market cycles, improving return consistency and overall potential.

What Is a 10-Year ULIP Policy?

A 10-year ULIP policy refers to staying invested in a Unit Linked Insurance Plan for a full decade. This allows the investment component to grow through market-linked returns. 

Over this period, compounding works more effectively, helping build long-term wealth. A 10-year period is ideal because it balances risk and growth, especially for equity-oriented funds. 

Additionally, ULIP returns in 10 years benefit from reduced charges over time and smoother performance across market cycles. When viewed alongside ULIP returns in the last 10 years, this duration provides a realistic insight into how ULIPs perform when held for the intended long-term investment period.

How Does a 10-Year ULIP Policy Work?

A 10-year ULIP policy works by allocating a portion of the premium toward life insurance and the remaining amount into market-linked funds such as equity, debt, or balanced options. Returns are based on NAV (Net Asset Value), which reflects the daily market value of the chosen fund. 

Charges like premium allocation, fund management, and policy administration apply. However, these charges gradually reduce, allowing more money to stay invested over time. When assessed through ULIP returns in the last 10 years, the long-term horizon supports steady compounding.

For example, if an investor contributes ₹1 lakh annually for 10 years and the fund earns an average of 8% per annum, the accumulated value may grow to approximately ₹14.5 lakh. This shows how market participation, lower long-term charges, and disciplined investing help build wealth over a decade.

Why Choose a 10-Year ULIP Policy?

A 10-year ULIP encourages disciplined savings, market-linked growth, and built-in protection. Staying invested long-term will help investors benefit from compounding and steadier performance, as seen in ULIP returns in last 10 years. Additionally, it supports goal-based planning and stronger long-term wealth creation.

• Market-linked Returns

ULIPs generate growth through market-linked instruments such as equity, debt, or balanced funds. Over 10 years, well-performing ULIPs have delivered around 8% to 12% CAGR, depending on fund type and market conditions. 

Returns vary with market cycles, and staying invested helps capture both ups and downs for more stable long-term outcomes.

• Flexibility

ULIPs offer flexibility through fund switching, allowing investors to switch between equity and debt based on market conditions or evolving financial goals. This adaptability supports changing risk appetites and helps optimise long-term performance. 

Fund redirection and top-ups strengthen portfolio control. This makes ULIPs responsive to market shifts and personal needs.

• Tax Benefits

ULIP taxation offers tax advantages through a deduction of ₹1.5 lakh under Section 80C for eligible premiums. The payout to the nominee upon the policyholder’s death is completely tax-free under Section 10(10D)¹. 

This dual benefit supports disciplined saving while improving tax efficiency. Hence, these provisions make ULIPs for NRIs and for Indian citizens useful for long-term financial planning with compliant, structured tax advantages.

• Life Coverage

ULIPs combine investment with life insurance, ensuring policyholders receive life cover throughout the policy term. This protection safeguards the financial future of dependents in case of unforeseen events. Furthermore, ULIPs provide peace of mind alongside market-linked growth by integrating wealth creation and essential security within a single plan.

• Long-term Investment

ULIP returns in last 10 years allow investments to grow steadily through compounding. Therefore, consistent holding helps smooth market volatility and supports wealth accumulation. With patience and disciplined contributions, investors can achieve meaningful financial outcomes aligned with long-term aspirations.

Explore HDFC Life ULIP plans to start building long-term wealth with protection and market-linked growth. Compare fund options and begin your 10-year investment journey with confidence today.

How Are 10-Year ULIP Policy Return Rates Calculated?

Understanding how ULIP returns in last 10 years are calculated helps investors realistically evaluate growth. Returns primarily come from fund performance, reflected through NAV appreciation over time. ULIPs use a simple formula: 

(Current NAV – Purchase NAV) ÷ Purchase NAV

1. ULIP Fund Investment

ULIP premiums are allocated across equity, debt, or balanced funds according to investor preferences and risk appetite. Diversification spreads risk across asset classes, helping manage volatility. 

Strategic fund allocation influences long-term performance, leading to enhanced growth. On the contrary, balancing market exposure for more consistent returns over a 10-year horizon.

2. Net Asset Value (NAV)

NAV represents the per-unit value of a ULIP fund and reflects its daily market performance. Changes in NAV directly impact investment returns, as gains or losses are reflected through unit value appreciation or depreciation. 

Monitoring NAV growth helps investors understand how their fund is performing over time. For example, if the NAV rises from ₹20 to ₹22 over a month, the investor’s holding value increases proportionally, reflecting the fund’s growth.

3. 10-Year Return

Long-term ULIP returns are often measured using CAGR, which shows annualised growth over 10 years. For example, ₹1 lakh invested at a 10% CAGR can grow to approximately ₹2.59 lakh. 

4. ULIP Flexibility

ULIPs allow fund switching and premium redirection to align with changing financial goals or market conditions. Adjusting allocations during market shifts can protect investments and enhance returns. Therefore, regular review and strategy updates ensure the portfolio remains optimised for long-term growth.

For example, an investor can switch 30% of their equity fund to debt during market volatility to reduce risk. Similarly, they can increase contributions to high-performing funds to capitalise on growth opportunities, maximising potential ULIP returns in last 10 years.

Note: Returns vary depending on fund type, market performance, and investment duration.

Key Factors Affecting ULIP Returns in 10 Years

ULIP returns in 10 years depend on several external factors, like market trends, and internal factors such as fund choice and policy charges. Understanding these variables helps investors make informed decisions and achieve more stable, long-term growth.

• Market Fluctuations

ULIPs are market-linked, so returns rise or fall with fund performance. Short-term volatility may affect growth, but staying invested through market cycles helps smooth returns. 

On the contrary, long-term investment enables averaging out fluctuations, improving consistency and maximising potential over a 10-year horizon. For instance, even if an equity fund dips 15% in a year, holding it over the full 10-year tenure can still yield strong cumulative growth as markets recover and compound.

• Fund Selection

The type of fund chosen in a ULIP (equity, debt, or balanced) directly influences returns over time. Subsequently, equity funds carry higher risk but offer greater potential growth, while debt funds provide stability with moderate returns. 

Balanced funds combine both. Aligning fund selection with risk tolerance, investment horizon, and financial goals is essential. This is because active choices have a significant impact on long-term performance and overall wealth accumulation.

• Charges That Impact Returns

Policy-related charges can significantly affect ULIP returns over time. These include fund management fees, premium allocation charges, and surrender charges, which may reduce the amount invested and overall profitability. 

Choosing lower-cost ULIP plans ensures more funds remain invested and also enhances long-term growth. Hence, investors should carefully review the charge structure before purchasing to maximise ULIP returns in last 10 years and achieve better long-term outcomes.

Start your 10-year investment journey with expert-managed funds and flexible options for sustained growth. Explore HDFC Life ULIPs to optimise long-term returns with smart fund choices and transparent charges!

Projecting ULIP Returns After 10 Years

Past performance does not guarantee future results. However, it can help investors make informed estimates about potential growth. For instance, the ULIP returns in last 10 years for a ₹1,00,000 investment may grow as follows based on different CAGR scenarios:

These projections demonstrate how returns can vary depending on fund selection, premium allocation, top-up contributions, and market cycles. Consistent investments and long-term holding help smooth market fluctuations and benefit from compounding. This enhances the overall wealth accumulation.

Investors should use these estimates as guidance for planning their financial goals, reviewing their portfolio periodically, and maintaining disciplined, goal-based investing. This will help them to optimise potential ULIP returns in last 10 years over a full investment horizon.

Note: Equity-focused ULIPs may offer higher growth but with greater volatility, while debt or balanced funds provide steadier performance. 

Maximising ULIP Returns After 10 Years

Maximising ULIP returns is not just about choosing the right plan. It is about consistent investment, market awareness, and staying committed for the long term. A disciplined approach, combined with smart fund selection and understanding market dynamics, can significantly maximise ULIP returns in last 10 years. 

1. Start Early

Investing in ULIPs at an early stage allows compounding to work over a longer horizon. This helps your money grow exponentially. In addition, early investments provide a buffer against short-term market volatility, giving your portfolio time to recover and benefit from long-term growth trends.

2. Choose the Right Fund Type

Selecting equity, debt, or balanced funds based on risk appetite and financial goals is crucial. This is because equity funds may offer higher returns but involve higher volatility, while debt funds provide stability. Furthermore, balanced funds combine growth and security. Aligning fund types with your risk tolerance can significantly impact long-term performance.

3. Monitor & Switch Funds

ULIPs offer fund-switching flexibility, enabling investors to adjust to changing market conditions or financial goals. Therefore, regularly reviewing and adjusting allocations between equity and debt can optimise returns, manage risk, and take advantage of market opportunities throughout the 10 years.

4. Minimise Charges

Policy-related costs, including fund management and administration fees, reduce effective returns. Choosing lower-cost ULIPs and understanding the charge structure ensures more of your premium remains invested. This, in turn, maximises wealth accumulation over the long term.

5. Stay Invested for the Full Term

Remaining invested throughout market fluctuations allows compounding to work fully and reduces the impact of short-term volatility. A disciplined, long-term holding period significantly improves the potential for stable and higher returns.

Conclusion  

ULIPs combine life insurance with market-linked investments, offering long-term growth, flexibility, and tax benefits over 10 years. Staying invested in ULIP returns in last 10 years helps you get the compounding effect benefit. However, fund-switching options and strategic allocation help optimise returns.

Charges should be considered to maximise profitability, and disciplined, goal-oriented investing remains key. Therefore, investors can harness ULIPs as a reliable wealth-building tool by understanding past performance and planning wisely. 

A thoughtful evaluation today can secure financial stability and long-term growth for the future!

FAQs on ULIP Returns in 5 years

Q. Can I withdraw my ULIP investment before 10 years?

Yes. You can make partial withdrawals in ULIP investment before 10 years, but only after a 5-year lock-in period, with limitations on the amount you are allowed to withdraw annually. However, pulling out a part of your investments before 10 years can considerably lower the eventual returns. 

Q. What are the average ULIP returns over a 10-year period?

The ULIP returns over 10 years depend on the fund selection and the market performance. While equity funds offer high returns, debt funds are more stable. However, the typical range of ULIP returns is 8 to 12%. Long-term investing in ULIP hedges the impact of short-term market fluctuations.

Q. How do market conditions impact ULIP returns in 10 years? 

The market conditions affect ULIP returns in 10 years. A bullish trend in stocks and bonds indicates a strong market, and the returns are higher. During a bearish environment, the performance is sluggish and depreciates the returns. A long-term investment neutralises the short-term market downs and stabilises the returns.

Q. How to calculate ULIP maturity value after 10 years?

To calculate the ULIP maturity value after 10 years, use the formula CAGR = {[(Current NAV / Initial NAV) ^ (1 / Number of years)] - 1} * 100, where the current value is the value of the units at the end of 10 years, the initial value is the value of the units on the date of purchase, and the number of years is 10 years.

Q. Are ULIP returns in 10 years sufficient for long-term goals? 

Yes. ULIP returns in 10 years are sufficient for long-term goals such as children’s education, retirement planning, buying a house, etc. However, it is better to use the ULIP calculator to assess how much monthly investment is required to create the corpus required for your long-term financial goals. 

Q. Is it safe to rely on ULIP returns from the last 10 years for planning?

A study of past ULIP performance gives an insight into how a fund has performed. However, it does not guarantee future returns. You can use the historical performance of a fund as a guide to your investment. You can control the returns by reviewing the performance and switching funds periodically, depending on the market trend to suit your goals and risk appetite.

Q. How have ULIPs performed over the past 10 years (2015–2025)?

ULIPs have delivered steady long-term growth over the past 10 years (2015–2025). The average returns range from 8% to 12% depending on fund type and market conditions. Equity-oriented ULIPs showed higher but more volatile returns, while debt and balanced funds offered stability. Therefore, consistent investing and staying invested through market cycles allowed investors to benefit from compounding and effectively capture the full range of market trends.

Q. What is the average CAGR of ULIPs in the last decade?

The average CAGR of ULIPs in the last decade has generally ranged between 8% and 12%, depending on the fund type and market conditions. Equity funds delivered higher but more volatile growth, while debt and balanced funds offered steadier returns. Hence, long-term investments and disciplined contributions enabled investors to benefit from compounding, smoothing market fluctuations, and achieving consistent wealth accumulation.

Q. Are ULIPs a good investment in 2025 based on past returns?

ULIPs continue to be a viable long-term investment option in 2025 based on past performance. This is supported by the fact that historical ULIP returns in the last 10 years indicate steady growth, especially for equity and balanced funds. They offer disciplined savings, life cover, and market-linked wealth creation. 

Q. How do ULIP charges affect 10-year returns?

ULIP charges directly impact 10-year returns by reducing the invested corpus. These charges include premium allocation, fund management, and surrender fees. Higher charges leave less capital available for growth, lowering overall profitability. Over a decade, even small differences in fees can significantly impact wealth accumulation. Therefore, choosing lower-cost ULIPs and understanding the charge structure is crucial for maximising ULIP returns in last 10 years.

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