Unit Linked Certification

.

Unit Linked CertificationMay 2006

2

Agenda

What is a ULIP? Asset Classes – Debt & Equity Financial Markets – Structure & Investments Financial Crime Products – Before & After

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What is a ULIP

A Unit Linked Insurance Plan is an effective combination of insurance with the benefits of market linked investments

The need for such plans have been felt for a long time

It was only with the privatization of the sector, that ULIP’s became popular

4

How a unit linked plan works

Premium

(Less) Charges

Mortality Charges for SA Other Charges

Investible Premium (this is unitized)

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How a unit linked plan works

Policyholder (Investible Premium)

Pool of Money (Various Unit Linked Funds)

Market Fluctuates

Invest / pool of money

Invested in stocks/bond as per the fund objective

Profit or loss from individual investment

Profit/Loss from portfolio of investment

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What is a Unit?

A unit in simple terms is a component or constituent. It represents a fraction of the total part

It can also be defined as “a precisely specified quantity in terms of which the magnitudes of other quantities of the same kind can be stated”

7

UNIT IN UL PRODUCTS

In a UL product, unit represents specified share of money / assets

It is a token of transaction of sale or purchase

Value of a UL product is calculated on the basis of the units

8

Unit

1 Unit = Rs 10 ( NAV )

Debt Market Equity Market Money Market

Financial BasicsAsset Classes – Debt &

Equity

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Asset Class - Debt

Debt Concepts Features of Debt Instruments

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Debt Concepts

Inflation Interest Time Value of Money

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What is Inflation?

Inflation is the increase in prices over time Correspondingly, it represents the fall in value

of money over time The purchasing power of money gets

reduced due to inflation

13

How is inflation determined?

Inflation would affect different entities to a different extent

The effect would depend on the price increase of their commonly used goods

Price increase would not be the same for all goods in a class

“Basket of Goods” concept

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What does inflation do?

The value of Rs. 1,00,000 will become

Inflation%

No. of yrs. 3 5 6

0 100000 100000 100000

5 85,873 77,378 73,390

10 73,742 59,874 53,862

15 63,325 46,329 39,529

20 54,379 35,849 29,011

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Inflation Indexes

List five different good/ commodities used by:A construction firmA urban household

Wholesale Price Index Consumer Price Index

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Wholesale Price Index (WPI)

Index of Wholesale Prices Basket of goods include

Wholesale grainsPowerCementSteel, etc.

Most commonly referred index

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Consumer Price Index (CPI)

Index of Retail Prices Basket of goods include

Grains (retail price)ToothpasteSoap, etc.

Captures the increase in “Cost of Living”

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Cost of Living Increase

1992 2003

% Increase

1 Kg of Potato Rs 1.50 Rs 8 433%

1 Litre of Milk Rs 6 Rs 16 133%

1 Balcony Ticket

Rs 20 Rs 80 300%

1 Mumbai-Delhi Train Ticket

Rs350 Rs1750 400%

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Cost of Living Increase

2003 % Increase 2013

1 Kg of Potato Rs 8. 00 433% 43

1 Litre of milk Rs 14 133% 33

1 Balcony Ticket Rs 80 300% 320

1 Mumbai-Delhi Train Ticket

Rs1750 400% 8750

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Interest

Simply put, it is the price of money

It is the compensation for the opportunity cost of lending the money

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Rate of Return

A rate of return is expected to at least account for inflation

Money would grow only if returns are above the inflation

Consequently, inflation also has a bearing on the interest rate

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5.5

4.5

86

7

22

6.5

6

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3.5

8

32

5

6

-10-10

-5

0

5

10

15

20

25

30

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BankInterest

Inflation

EquityInvestment

Impact

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Rate of Return

Nominal rate of return is the Absolute Return offered (eg. Infrastructure Bonds @ 9.00%)

All investment instruments are quoted in terms of nominal rate

Real Rate is return which has been adjusted to take inflation into account

Real Rate = Nominal rate – Inflation

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Rate of Return

You have made a FD @ 5% for one year. The relevant inflation index is 4.3%. What is the real rate of return?

Real = Nominal – Inflation Real Return = 5 – 4.3 = 0.7%

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Time Value of Money

Inflation robs away purchasing power @5% inflation, Rs. 105 next year is worth Rs.

100 today Hence, the timing of income/ payment

streams assumes importance Present Value (PV) = Future Cash Flow/

Appropriate Discount

(It tells us the worth of FCF today)

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Features of Debt Instruments

Nature Principal or Par Value Maturity Coupon Yield (Yield to Maturity) Price

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Nature

A debt instrument is in the nature of a loan The debenture/ bond that you buy is the loan

you have given Remember, “Debt” = “Loan”

Investor Issuer/ Borrower

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Par Value & Maturity

Par Value Face Value of the Bond Interest is paid on the Par Value

Maturity Date on which the Principal is redeemed Term to Maturity is the number of years before

the bond expires

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Coupon

Is the term used to denote the “interest” on the loan – declared at the time of issue

‘Coupon Rate’ determines the amount of regular payments/ interest that the investor will receive

Zero Coupon Bond (ZCB) pays no periodic

interest (does not carry a coupon).

Typically issued at a discount and redeemed

at face value.

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Yield to Maturity (YTM)

YTM is the that an investor will receive till maturity, if all coupon payments were reinvested

Varies inversely with price YTM = Risk Free Rate + Risk Premium YTM is also affected by Demand & Supply

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Price

Price of any financial instrument is the present value of the future or expected cash flows

Price of a Bond & YTM are inversely related

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Equity Concepts

Nature Principal or Par Value Maturity Dividend Price P/E Ratio

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Nature

An Equity instrument is in the nature of “ownership”

The equity share you buy is the proportion of ownership you bought

Remember, “Equity” = “Own”

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What is a Share?

A share represents the smallest fraction of ownership – it is a High Risk Instrument

Each such form of ownership is given a share certificate

A share certificate enables them to be easily bought & sold

Only a Long Term holding allows you to reduce the risk – on a Diversified Portfolio

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Par Value & Maturity

Par Value is the Face Value of the share

There is no maturity date of an equity share

Your investment can be redeemed only by selling the shares

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Dividend

A share gives returns to its owner through 2 methods: Dividends Capital Appreciation

Dividend is that portion of the profits which is distributed to owners

It is normally declared on Face Value per share

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What is a Stock Exchange?

The institution where the buying/ selling of stocks/shares takes place is the stock exchange

Popular stock exchanges in India are BSE/ NSE/ CSE

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What is Share Price Index?

A share price index is that ONE number which represents the market as a whole at any point of time

It comprises a fixed number of shares weighted according to a certain logic (usually, trading volumes)

The BSE comprises of 30 shares and the NSE of 50

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What is P/E Ratio?

P/E Ratio or Price Earning Ratio is the ratio between the Market Price and the Earning Per Share (EPS) of a company

If the P/E Ratio of the company is less than that of the index, it means that the market expects the future earning potential of that share to be superior than the market

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MUTUAL FUNDMUTUAL FUND

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Money Market Concepts

Money Market

Money Market Instruments – Low Risk , Low Return

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Money Market

Money Market is the market for short term requirement and deployment of funds

The instruments have a maturity period of less than 1 year

Highly liquid and tradable instruments Some common instruments are Commercial

Paper, T – Bills, Certificate of Deposit

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Money Market Instruments

Commercial Paper Issued by corporate entities to fund working capital

requirements In the form of Promissory Note – transferable by

endorsement and delivery Issued for a period of 90 days to 1 year – Short Term Two Key Regulations:

• Rating by a Credit Rating Agency (viz. CRISIL)

• Funds raised by CP is not treated as fresh borrowing by the corporate

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Certificate of Deposit Issued by Banks and FI’s Maturity ranging from 30 days to 3 yrs Credit Rating not compulsory Market is most active for 1 yr bracket Why is market active?

• No reserve requirements for banks

• No TDS

• Tradability

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Treasury Bills (T – Bills) Issued by RBI on behalf of GOIMaturity – 14 days, 91 days, 182 days and

364 daysShort term borrowing instrument of the GOISold by way of RBI auction on weekly/

fortnightly basis

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Repo A Repo is a repurchase agreement

A procedure for borrowing money by selling securities to a counterparty and agreeing to buy them back later at a slightly higher price

The interest rate paid is called the Repo Rate

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Reverse Repo In essence, refers to a repurchase agreement

From the customer's perspective, the customer provides a collateralized loan to the seller.

Financial BasicsFinancial Markets – Structure

& Instruments

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Asset Types

Physical Gold – to hedge against

inflation Real Estate – high

capital requirement. Low liquidity

Financial Equities Bonds/ Debentures Money Market

Instruments Fixed Deposits Govt. Savings

Instruments (PPF/NSC) Mutual Funds

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Physical Assets

Gold: Our National Obsession!! Considered to be a hedge against inflation Gold Bonds: Securitization of Gold

Real Estate Not for the small investor Liquidity is an issue

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Financial Assets

Issuer Type of Product Who can Invest

Banks Fixed Deposit All Investors

Shares All Investors

Bonds, Debentures All Investors

Fixed Deposit All Investors

Govt. Securities Companies, MF's

PPF Individual Investors

Other Personal Investments Individual Investors

FI's Bonds All Investors

Insurance Co. Insurance Plans Individuals Only

Corporate

Government

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Financial MarketFinancial Markets

Money Market

Debt Market

Forex Market

Capital Market

G - Secs Bonds

Central Govt.

State Govt.

FI Bonds PSU Bonds

Corporate Securities

Call Money T. Bills Commercial Paper Repo

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UNIT LINK LIFE INSURANCE PLAN

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What are fund options?

Funds are usually classified according to their investment objectives:

Protection of Income

Capital Growth

Balance between Protection of Income & Capital Growth

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What are AVIVA’s fund options?

Investment objectives of AVIVA’s Unit Linked Funds:

Protection of Income – Secure

Capital Growth – Growth

Balance between Protection of Income & Capital Growth – Balanced

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How are the funds constructed?

Secured Balanced GrowthEquity 0% - 20% 0% - 45% 30% - 85%

Debt Securities

60% - 100% 50% - 90% 0% - 50%

Cash and Money Market

0% - 20% 0% - 10% 0% - 20%

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Understanding Fund Returns

A person invests Rs. 10,000 into the Balanced Fund on 01.04.2006. Assuming, that the investment in Equity is 30%, in Debt 60% and in Money Market 10%, let us do a returns calculation.

NAV on 01.04.2006 – Rs. 26.50Returns on market – Debt : 8%

Equity : 60%Money : 4%

Calculate NAV & Annual Return % on 01.04.2007Answer: Rs. 32. 648Annual Return % : 23.20%

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CASE STUDIES

If Mr.Shahrukh Khan invests in growth fund let us assume that the distribution is like 85% in Equity,10% in Debt and 5% in Cash If the invested amount is Rs.10,000/-Rs.8500 will be invested in Equity unit price Rs 28.58Rs.1000 will be invested in Debt unit price Rs 14.45Rs.500 will be invested in Cash unit price Rs 10.78

Shahrukh gains 297.41 units in equity,69.20 in debt,46.38 in cash

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After one year if the unit price goes up to Rs.30 in equity, Rs.15.30 in debt and Rs.11 in cash

He gets 297.41x30=Rs 8922.30 in equity

69.20x15.30=Rs.1058.76 in debt

46.38x11=Rs.510.18 in Cash

Total he gets Rs. 10,491.24.

Profit(%) = 4.9124

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Let’s Calculate – 1

Taking the above distribution Let us assume Mr.X invests Rs.50000/- with unit price

Rs.25.68(E)Rs.13.79(D) Rs.11.21(C)

After 2 years the prices are Rs.35(E)Rs.16.45(D)Rs.12.50(C)

Distribution : 85% Equity,15% Debt

Calculate the Growth?(Percentage)

Ans:33.74%

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Taking the above distribution, let us assume Mr.Amir Khan invests Rs.1,50,000/- with unit price

Rs 28.68(E)Rs.12.79(D) Rs.10.21(C)

After 3 years the prices are Rs.33.48(E)Rs.15.45(D)Rs.11.20(C)

Distribution : 65% Equity,15% Debt ,20% Cash


Calculate the Growth?(Percentage)Ans:15.94%

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Taking the above distribution, let us assume Bipasha invests Rs.45000/- with unit price

Rs 22.68(E)Rs.16.79(D) Rs.10.12(C)

After 2 years the prices are Rs.29.88(E)Rs.16.45(D)Rs.10.88(C)

Distribution : 20% Equity,60% Debt ,20% Cash



Ans:6.63%

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Taking the above distribution Let us assume Mr.Akshay invests Rs.6000/- with unit price

Rs 25.68(E)Rs.13.79(D) Rs.11.21(C)

After 1 year the prices are Rs.24(E)Rs.12.45(D)Rs.12.50(C)

Distribution : 85% Equity,15% Debt, 20%Cash



Ans:15.2%

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Taking the above distribution Let us assume Kareena invests Rs.25000/- with unit price

Rs. 25.68(E)Rs.13.79(D) Rs.11.21(C)

After 4 years the prices are Rs.33.33(E)Rs.16.45(D)Rs.12(C)

Distribution : 20% Equity,65% Debt 15% Cash



Ans:19.548%

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TEST ON UNIT LINK CERTIFICATION

Products – Before & After

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Announced by IRDA on December 21, 2005; classified into 6

sections

Product design

Market conduct

Disclosure norms

Advertisements

Furnishing of information

Rating of unit linked funds

Ulip guidelines : Summary

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Summary & Impact: Ulip guidelines

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Ulip guidelines : Summary & ImpactProduct features

Impact on Aviva products

Single Premium: Increase SA to 1.25 times SP in LB; Opt for SA in the range of 1.25 – 5 times SA in LB Plus

Whole Life: Min SA different for each age (e.g. Min SA = 20 AP for age 30); major impact on LL, SG

Endowment: Min SA for different PT (e.g. Min SA = 10 AP for PT 20 years); impact on LS, LB5, FLP, YA with PT > 10 years)

Feature Guideline Implication

1 Min SA for Single Premium plans = 1.25 times SP 1aSA for SP plans not linked with policy term; SP plan with SA < 1.25 times SP to be changed

2a SA for RP plans linked with policy term

2b Different min SA for different ages / policy term

2c Min SA a multiple of AP at inception

3SA cannot decrease (except to the extent of PW in last 2 years before death or post age 60)

3a With every PW, the sum at risk will keep increasing

4 No cover to be extended after policy term 4aOnly maturity proceeds payable after maturity; no extended life cover

5 Guaranteed SA payable on Death 5aImplications on plans where policy fund or x% of premium is paid on death for initial few years (DGH products impacted)

2Min SA for RP plans = Higher of 0.5*PT*AP or 5*AP (for whole life PT = 70 - age at entry)

Sum Assured

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Full surrender: All products to be modified to allow full surrender after 3 years

Partial withdrawal wrt RP / SP: FLP, LB5, LB, LB Plus impacted

Partial withdrawal wrt ASP: All products (except TP, ELP where ASP not allowed) to

be modified

Impact on SA by PW: All products (except TP, PP where PW not allowed) to be

modified; SA not to decrease due to PW


1 Surrender value payable only after 3rd policy anniversary

1aMandatory lock-in of 3 years for full surrender, even to avail the SV accrued in the first 2 years

2PW allowed only after 3 policy years (for RP as well as SP)

2a

3PW from top-ups also after 3 years (except when made in the last 3 policy years)

3a

4No impact on SA except when PW made during last 2 years before death or after age 60

4aReduced impact of PW on SA, sum at risk increases with every PW

Minimum lock-in period of 3 years for partial withdrawal for all products and also for top-ups

Surrender & Partial withdrawals

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All products (except ELP, TP, PP): For policies with annual premium < Rs

40,000; Min ASP of Rs 10,000 in the first year will increase SA

Can restrict ASP in the initial years; with passing years as total RP

increases, top-up amounts can also be increased without impacting SA


1 Top-ups can be paid only if all due RP have been paid 1a No top-ups allowed for paid up policies

2No impact on SA till total top-ups < 25% total RP, any excess amount increases SA 1.25 times the amount

2a ASP will attract risk charges as SA increases

Top-up premiums

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All products: In case policy is paid-up, one cannot reduce SA to Zero (at present

policyholders enjoy this option)

All products: Min balance in the fund in case of paid up after 3 years > 1 year

premium as min SV = 1 year premium


If case of non revival, it can be terminated without making any payment or SV if any is paid

In case of non revival, policy terminates after paying SV or continued till FV = 1 yr premium & paid (min SV payable is one full year’s premium)

2a

Revival period (not defined in the guideline) to be given; No cover level during the revival period

1Premium

discontinuance before 3 years

1a

Premium discontinuance

after 3 years2

Revival period (not defined in the guideline) to be given; SA continued for revival period, charges deducted from FV

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Ulip guidelines : Summary & ImpactCharges

Impact on Aviva products: Significant impact

We now guarantee Mortality charges for policy term No bid / offer spread can be charged Fund Management Charge cannot be through cancellation of units but through adjustment in NAV Initial management charge to be on first year’s premium only


1 Uniform definition of charges for all UL products 1aDefinition of the charges have to be the same, across all products

2Premium allocation charge, including initial management charge

2aLevied at the time of premium receipt; on units created from 1st years' premium for a specified period

3 Fund management charge 3alevied as a % of value of assets at the time of computation of NAV, appropriated by adjusting NAV

4Policy administration charge (can be flat or vary at a pre-determined rate, max 5%)

4aexpressed as a fixed amount or a % of premium or % of SA (not as a % of NAV)

5 Surrender charge 5alevied on the unit fund at the time of surrender, expressed as a % of fund or as a % of AP

6 Switching charge 6a levied at the time of switching, usually a flat amount

7 Mortality charge 7a guaranteed during the contract period

8aAll riders to be filed separately; rider premium to be exclusive of expense loading

8bAppropriating rider cost by cancellation of units allowed if such cost < actual rider premium filed with IRDA

9 Partial withdrawal charge 9a levied on the unit fund at the time of partial withdrawal

10 Miscellaneous charge 10alevied for any alterations like increase in SA, premium redirection, change in policy term etc

Charges

8 Rider premium charge

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Ulip guidelines : Summary & Impact

Fund Management Charge (FMC)

Currently, we levy same FMC for all funds for a particular product

In LL, FMC is same for secure, Balanced, Growth funds (1%) while the

same Funds have FMC 1.25% in LB 5

This is possible by charging FMC through unit cancellation without

affecting the NAV of the funds.

Post guidelines, FMC will be charged through adjustment in the NAVs of the

Funds and not through units cancellation

Thus, we will have same FMC for a particular Fund across products

LL will have FMC of 1% for Protector Fund, 1.25% for Balanced fund and

1.5% for Growth Fund, Secure Fund (New 1.5%) And these FMC’s would

be same for all products

This has necessitated to have another fund called Protector wherein any

Maturity Guarantee is offered (e.g. Save Guard, Treasure Plus, Life Bond

Plus)

Charges

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Product Changes

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Before SA =10 times annual premium (AP) for

Policy Term (PT) 10, 15, 20, 25 years

Full surrender option available after 2 years

Paid up option available after 2 years

SA reduced to zero or maintained at same level till FV supports the charges

One switch per year free of charge

No settlement option

Charges Premium allocation: 99% - 101%

Admin charge: Rs 41 per month

IMC: 5% p.a. of initial units

FMC: 1% p.a. of fund value

Bid / Offer: 5% p.a. of annual premium

Mortality charges (not guaranteed over PT)

Surrender charge on Initial Units

Easy Life PlusAfter

SA = 10 times AP for PT 10, 15, 20 years, 12.5 times AP for PT 25 years

Full surrender option available after 3 years (SV will accrue after 2 years but cannot be exercised until after 3 years)


SA maintained at same level till FV falls below one year’s premium

Two switches per year free of charge (0.5% subsequent by cancellation of units)

Settlement option upto 5 years after maturity (No Cover)

Charges Premium allocation: 93% - 95%



FMC: 1%, 1.25%, 1.5% p.a. for Protector, Balanced, Growth Funds respectively

Mortality charges (guaranteed over PT)

Surrender charge on Initial & Accumulation Units

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Before

Min SA =5 times annual premium (AP)

Max SA = AP*PPT*CL (CL : 1 to 3)

Top-up premium: Min Rs 10,000; no max limit



SA maintained at same level till FV < Rs 10,000

Partial withdrawal (PW) allowed after 2 years, SA reduced by PW


Charges

Premium allocation: 100.5% - 103%


IMC: 5% p.a. of initial units up to 20 years





Freedom Life PlanAfter

Min SA =0.5*PT*AP

Max SA = 1.25*PT*AP

Top-up premium: Min Rs 6,250; max 25% of total RP paid till date

Full surrender option available after 3 years (SV acquires after 2 years)


SA maintained at same level till FV < 1 AP

Partial withdrawal (PW) allowed after 3

years, no impact on SA Settlement option upto 5 years

Charges

Premium allocation: 98.5% - 101%



FMC: 1.5%, 1.25%, 1.5% p.a. for Secure, Balanced, Growth Funds



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Before

SA =1.1 times single premium (SP)

Max age at entry : 75 years

Full surrender / Partial Withdrawal available from year 1



Charges

Premium allocation: 97% - 104.5%

Admin charge: 1.5% pa. For first 5 years, 0.5% p.a. thereafter



Partial Withdrawal charges

Life Bond

After

SA =1.25 times single premium (SP)

Max age at entry : 65 years

Full surrender / Partial Withdrawal available after year 3

Top-up premium: Min Rs 6,250; max 25% of SP (throughout term)

Two switches per year free of charge

Charges

Premium allocation: 97% - 104.5%

Admin charge: 1.5% pa. For first 5 years, 1% p.a. thereafter

FMC: 1%, 1.25%, 1.5% p.a. for Protector, Balanced, Growth Funds


Partial Withdrawal charges

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Before

Full surrender / Partial Withdrawal available from year 1



Charges

Premium allocation: 100% - 104%


IMC: 1.75% p.a. for first 3 years

FMC: 1.25% p.a. of fund value


Life Bond Plus

After

Full surrender / Partial Withdrawal available after year 3

Top-up premium: Min Rs 10,000; max 25% of SP

Settlement option upto 5 years

Charges



IMC: 1.75% p.a. for first 3 years



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Before

Whole Life, no max maturity age

PPT: 10, 15, 20, 25, 30 years

SA = 10 times (AP), max Rs 12,00,000





Partial withdrawal (PW) allowed after 10 years, SA reduced by PW


Charges








Save Guard After

Endowment, max maturity age 70

PPT (= PT): 10, 15, 20, 25, 30 years

SA = 0.5*PT*AP; max Rs 15,00,000 (DGH)





Partial withdrawal (PW) allowed after 10 years, no impact on SA


Charges






Surrender charge on Initial & Accumulation Units ERC = 1- 1/(1.07)^n

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Before

Entry age: 18-65 years, max maturity age 80 years

Policy term: 10 – 50 years

SA = 5 times AP


Full surrender available after 1 year

Partial Withdrawal available from 2 years, SA reduced by PW

Paid up option available after 1 year



Charges



IMC: 5% p.a. for first 5 years




Life Bond 5

After

Entry age: 18-50 years, max maturity age 60 years

Policy term: 10, 15, 20 years

SA = 0.5*PT*AP


Full surrender available after 3 years

Partial withdrawal available after 3 years, no impact on SA




Charges



IMC: 5% p.a. for first 5 years



Surrender charge ONLY on Initial Units ERC = 1- 1/(1.05)^n

82

Before

Min Annual Premium = Rs 3,500

Min SA = 10 times annual premium


Full surrender available after 2 policy years

Partial Withdrawal available after 3 policy years, SA reduced by PW

Paid up option available after 2 policy years


Charges



IMC: 5% p.a. on initial units (2 yr AP) for 30 years


Bid / Offer : 5% p.a. of annual premium



Life Long

After


Min SA = Max {0.5*(70-entry age), 5}*AP





SA maintained at same level till FV < One year Premium

Charges



IMC: 10% p.a. on initial units (1 yr premium) for 30 years




83

Before

Full surrender option available after 2

years



Charges


(RP); 103-104% (SP)




Bid / Offer: 5% p.a. of annual

premium


Pension PlusAfter

Full surrender option available after 3

years (SV acquires after 2 years)


Two switches per year free of charge

Charges


(RP); 98-99% (SP)



FMC: 1.5%, 1.25%, 1.5% p.a. for

Secure, Balanced, Growth Funds

respectively


84

Before

Min AP Rs 12,000 (Min SA Rs 1,20,000) for all PT




Partial Withdrawal in the last 5 years, SA reduced by PW


Charges








Treasure Plus

After

Min AP for 10 yr PT Rs 24,000 (Min SA Rs 2,40,000); for other PTs, as before



SA maintained at same level till FV falls below one year’s premium

Partial Withdrawal in the last 5 years, no impact on SA


Charges




FMC: 1.5% p.a. for Secure Fund respectively



85

Before




Partial Withdrawal available after 3 policy years, SA reduced by PW




Charges



IMC: 5% p.a. on initial units (2 yr AP)





Life Saver

After








Charges



IMC: 10% p.a. on initial units (1 yr premium)




86

Before




SA reduced to zero or maintained at same level till FV supports


Charges



IMC: 5% p.a. on initial units





Young AchieverAfter





Settlement option upto 5 years (Better version)

Charges



IMC: 10% p.a. on initial units (1 yr premium)




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Recap

TEST

.

Thank You

Documents

Unit Linked Certification