Unit investment plans are investment plans for persons who understand the value of hard-earned money. These investment plans assist you observe your money yield rich reimbursement and help you save tax yet you don’t have steady income.

A Unit investment plan is mainly a combination of insurance as well as investment. Some portion of the payment paid is utilized to give insurance cover to the policy holder while the left over segment is invested in different equity and debt plans.

The money collected by the insurance provider is used to make a pool of fund that is used to invest in various markets instruments (debt and equity) in varying segments just like mutual funds. The investor has the preference of opting for the kind of funds (debt or equity) or a combination of together based on their investment requirement. Like mutual funds Unit investment plan holders are too provided units and each unit has a net asset value (NAV) that is stated on a daily base. The NAV is the value based on which the net rate of returns on Unit investment plan are determined. The NAV differs from one to another based on market circumstances and the fund’s performance.