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Have you invested in the stock market and has the recent downfall of it left you upset? Have you invested in the funds through unit-linked plans? If yes, then it's about time to make use of the 'switching' feature, which the plan offers.

Now, if you have been under the impression that ULIPS have been badly hit because of the negative performance of the stock market then you are probably wrong. You might be surprised to know that such has not been the case with market-linked plans. ULIP investors are still going strong. This can be credited to investors' approach of investing lower prices in equity, which is meant for long term investing and not for short-term gains. Many investors have abided by this fact and it has helped them sail through this rough storm. Sources point out that individuals who have invested in equity schemes with short-term goals have experienced radical fall in their gains. So there is a lesson to learn in every mistake that is made. Being glued to the market with long-term goals is any time better than entering with short-term plans.

Coming back to the 'switching' feature, a unit linked plan offered by the state insurer lets you choose from four funds, which are bond, income, balanced and growth fund. Based on the kind of risk you want to take, select the fund. If you want to gain higher returns you have to take higher risks that will come with the equity natured fund i.e. growth fund. If you are risk averse, you can choose the debt fund. This fund is least affected during the volatile performance of the market. The best part of switching is that many insurers allow upto four switches free of cost, any additional switching is charged by the insurer. With the switching option, you can invest in the fund that best suits the changing situation. Now, if you have invested in the growth fund, read below to know what is the best that you can do in such a scenario.

Be prepared in advance for the worst of situation; keep a check on the performance of your funds at least once in three months. Consider a switch in the funds if there is a change in the level of risk you are willing to take or the performance of the market compels you to do so. The most effective step that you can do is to keep a tab on your funds, estimate the value in comparisons to other funds and then take the decision. If the confusion still persists, consult your insurance advisor, who would be in a better position to guide you through the rough path. Further, unlike other financial products, all life insurance plans come with a 15-day free look feature. This lets you to return the policy if doesn't suit your needs or prospects. So, there's no better deal that can come with a market-linked plan.

So, after having learnt the benefits of the switching feature, do not forget to make the use of it. Whenever the market falls, you can bet on getting least affected by it.