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Guaranteed return products are undoubtedly very popular among us Indians. We use at least one of these products, say, bank deposits, NSC, KVP, PPF, REC Bonds, etc., to pick up a decent fixed return. For long, the market was dominated by the government-backed guaranteed return products, but now private players have entered the fray to give them a stiff competition. Sensing the money-making opportunity, private players have experimented with capital protection plans and market-linked guaranteed return plans. The latest offering is by ICICI Prudential which has introduced ICICI Pru Pinnacle, a guaranteed return unit-linked insurance plan (ULIP). But the question remains as whether this plan will succeed in attracting investors by offering something new or fall flat.

The going has been tough for equity-oriented schemes from the last one year. All these schemes are giving negative returns, and it is very difficult to convince investors to make further investments in this area. Equity-Linked Savings Schemes (ELSS), which are tax saving schemes with a diversified nature, are also facing a similar situation. In [...]