Insurance Plans Reviews and Articles

Reliance Mutual Fund Introduces Fixed Maturity Plan

Posted in Mutual Funds by kishosingh on April 14, 2010

Recently, Reliance Mutual Fund unveiled fixed maturity plan. The news came in light through ET online news paper.

The online news portal, economictimes.indiatimes.com, writes about the fixed maturity plan of Reliance Mutual Fund, “Reliance Mutual Fund has come up with a fixed maturity plan —Fixed Horizon Fund – XIV – Series 9. As per the scheme information docu-ment, the primary investment objective is to generate regular returns and growth of capital by investing in central and state government se-curities and other fixed income or debt securities, normally maturing in line with the scheme’s maturity, with the objective of limiting in-terest rate volatility.”

So, the Mutual Fund has come with a fixed maturity plan. It belongs to a series of Fixed Horizon Fund – XIV – Series 9. Reliance Mutual Fund will generate regular returns and growth of capital by fixed maturity plan investing in central and state government securities and other fixed income.

The statement makes the objective of fixed maturity plan very clear. With the fixed maturity plan, Reliance Mutual Fund will try to generate fixed money investing capital in government sectors.

Reliance Mutual Fund unveils fixed maturity plan for a limited period. About the period, ET writes, “The close-ended scheme, which opened for sub-scription from April 7, 2010, will close on April 15, 2010. The mini-mum subscription amount for the scheme is Rs 5,000.”

So, Reliance Mutual Funds offer the fixed maturity plan for just a month only. Subscriber can buy it between the date periods. A subscriber can invest a minimum amount of fund also that is Rs. 5,000 in this scheme.

Reliance Mutual Funds has made the fixed maturity plan very comfortable with Rs. 5,000. The scheme has been launched broadly to attract almost all classes of people.

We already have seen the performance of Reliance Life with Highest NAV Guarantee plan. Now, Reliance Mutual Funds tries to collect some huge money from market by fixed maturity plan.

New ULIP Plan Launched by ICICI Prudential Life Insurance

Posted in insurance by kishosingh on December 29, 2009

Recently, Prudential Life Insurance launched a new ULIP plan that is called ICICI Pru LifeTime Maxima. The insurance policy follows two different portfolio strategies – fixed and trigger portfolio. Fixed portfolio strategy provides an option to choose from any of the seven funds — Opportunities Fund, Blue-chip Fund, Multi-Cap Growth Fund, Multi-Cap Balanced Fund, Income Fund, Money Market Fund and Return Guarantee Fund.

On the other hand, trigger portfolio strategy is a market base portfolio to generate good funds from the market.

If you invest your money in trigger portfolio strategy then your investments will be distributed between two funds: Multi-Cap Growth Fund and Income Fund in 75:25 ratios. In this plan, fund manager maintains the asset allocation between the Multi-Cap Growth Fund and Income Fund at 75:25.

First year premium allocation charge is 7.5% in this investment. Second and 3rd year charge will be only 3% while it is 0% from the fourth year onwards. In this investment, fund management charge would depend upon the choice of funds between 0.75-1.35 percent.

Administration charge for the policy will be necessary for 1st five years in this plan that would be 0.8-0.9 per cent.

The policy offers some good features such as changing of portfolio strategy once a year free of cost, top-up option and partial withdrawals from the sixth year up to a maximum of 20 per cent.

You can withdraw minimum Rs 2,000. You can withdraw your funds in a systematic way yearly, half yearly, quarterly or a monthly basis on maturity. During the settlement period, you can withdraw your entire fund.

You should go in trigger portfolio strategy because it works in a volatile market. Your fund is managed by professional fund manager who understands the vagaries of the stock market.

The analysis is taken from Economic Times. It is nothing but an investment with a secure policy. Basically, it is the market policy. Recently, TATA AIG had also launched Life InvestAssure Superstar ULIP but it was not market based plan.