The correct answer is C. Both A & B.
A unit-linked policy is a type of life insurance policy that allows you to invest your premiums in a variety of funds. The funds you choose will depend on your investment needs and risk profile.
If you are looking for a policy that will provide you with a steady stream of income in retirement, you may want to choose a fund that invests in bonds or other fixed-income securities. If you are looking for a policy that has the potential for higher returns, you may want to choose a fund that invests in stocks or other equities.
It is important to remember that all investments carry some risk. The amount of risk you are comfortable with will depend on your individual circumstances. If you are not sure which fund is right for you, you should consult with a financial advisor.
Here is a brief explanation of each option:
- Option A: Investment need. This refers to the purpose for which you are investing your money. For example, if you are saving for retirement, you will need to choose a fund that has the potential to grow over time. If you are saving for a down payment on a house, you will need to choose a fund that is more stable and less risky.
- Option B: Risk profile. This refers to your tolerance for risk. If you are a conservative investor, you will want to choose a fund that is less risky. If you are a more aggressive investor, you may want to choose a fund that has the potential for higher returns but also carries more risk.
- Option C: Both A & B. This is the correct answer because the choice of fund in a unit-linked policy should be based on both your investment need and your risk profile.
- Option D: None of the three. This is the incorrect answer because your investment need and risk profile are the two most important factors to consider when choosing a fund in a unit-linked policy.