Hi Chandan,
Well good question?? Is it really necessary to take risk???...
Answer to that is YES... Well if you wana higher return, you have to take highest of risk... But there is ways by which you can avail the benefits of market but with some moderate risk if you let the prof... manage your money...
Risk always there but the rewards also too high...
First plan out... the horizon of your investment... If you dont have ne objective you wont able to invest properly
Well good question?? Is it really necessary to take risk???...
Answer to that is YES... Well if you wana higher return, you have to take highest of risk... But there is ways by which you can avail the benefits of market but with some moderate risk if you let the prof... manage your money...
Risk always there but the rewards also too high...
First plan out... the horizon of your investment... If you dont have ne objective you wont able to invest properly
Hi,
Heres 10 year performance comparative of above example of MF, HDFC, Bajaj and ICICI. Last three columns provides you details of yearwise Cumulative Units Held, Net NAV for the year ended and Fund Value at the end of that year.
Industry Norm for charges:
1. Admin Charges levied by "cancellation of units"
2. Fund Management charges are adjusted in NAV
3. There is also Mortality charges ranging from Rs.1-5 per thousand of sum assured depending on the age. These are also levied as "cancellation of Units".
Also, in many ULIP's Death Benefit = Sum Assured or Fund Value whichever is higher. So beyond certain policy term, fund value is bound to be more than sum assured and thus mortality charges paid so far becomes opportunity loss.
Lastly, also take a note of surrender charges applicable in case ULIP's are closed before maturity, which varies company to company and policy to policy, year to year, hence cannot be quantified here.
Regards
Heres 10 year performance comparative of above example of MF, HDFC, Bajaj and ICICI. Last three columns provides you details of yearwise Cumulative Units Held, Net NAV for the year ended and Fund Value at the end of that year.
Industry Norm for charges:
1. Admin Charges levied by "cancellation of units"
2. Fund Management charges are adjusted in NAV
3. There is also Mortality charges ranging from Rs.1-5 per thousand of sum assured depending on the age. These are also levied as "cancellation of Units".
Also, in many ULIP's Death Benefit = Sum Assured or Fund Value whichever is higher. So beyond certain policy term, fund value is bound to be more than sum assured and thus mortality charges paid so far becomes opportunity loss.
Lastly, also take a note of surrender charges applicable in case ULIP's are closed before maturity, which varies company to company and policy to policy, year to year, hence cannot be quantified here.
Regards
Last edited:
Mr.Market,
ULIP's option of fund swithc only makes sense, if exercised at market 21000.After collapsing to 14000 there is no point switching fund, unless we are to see further downside. Same applies to MF. We can always redeem our MF units @21000 if we can call the top.
However, benefit in later is that in situations like this, we can discontinue adding units (partly/fully) to exisiting MF and allocate our money to new funds, based on valuations.
For ex. Suppose we had invested in power and infra sector funds in last 2-3 years, we can carry those units for long term and switch to real estate and banking sector funds based on thier reasonably cheap valuations. This is just for the sake of example as we may see NFO coming in this sector, especially after economic reforms.
Hope this helps.
Regards
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