Presenting…….UTI - Unit Linked Insurance Plan

ek Sampoorna YojnaThe first Unit Linked Insurance Plan of the country launched on

October 01, 1971.

ICRA Awards UTI ULIP has been ranked as a 5 star

Fund in the category of Open Ended Marginal Equity Schemes

1 year PerformanceFor details, please refer to Slide No 18

Flow of Presentation…….Flow of Presentation…….• What is UTI Unit Linked Insurance Plan (UTI-ULIP) ?

• What are the important points which an investor ought to consider

before buying an ULIP?

• Where does the UTI-ULIP stand on all the parameters mentioned

above?

• UTI-ULIP – Key Features & Benefits

• UTI-ULIP – Facts & Figures

ICRA Awards UTI ULIP has been ranked as a 5 star

Fund in the category of Open Ended Marginal Equity Schemes

1 year PerformanceFor details, please refer to Slide No 18

UTI Unit Linked Insurance Plan (UTI ULIP) is an Investment cum savings product in a true sense with other benefits such as –

1. Insurance Cover : - Life Insurance Cover equivalent to chosen target amount up to Rs.15 Lakhs at a very very low cost - No medical Examination for Cover -The Life Insurance cover for female investors having no

regular and independent income is restricted to a maximum of Rs.5,00,000/-.2. Accident Cover : Personal Accident cover of Rs.50,000/- irrespective of the chosen target amount at no additional cost

3. Tax Benefits :Tax Rebate under Sec 80C of IT Act,1961 *

4. Marketed Related Returns: Please refer to the slide on performance

Contd…….

*subject to prevailing tax laws

5. Easy Liquidity : - Full Premature withdrawal in case of any exigency with only a 2% exit load -Facility of Partial withdrawal also available after completion of 7 Years or 10 Years in case of 10 Year or 15 Year Plans respectively subject to maintaining a minimum balance of

Rs.5000/- calculated at NAV prevailing on such date with insurance cover remaining intact

6. Bonus at Maturity: 5% in 10 Year Plan; 7.5% in 15 year Plan

UTI Unit Linked Insurance Plan (UTI ULIP) is an Investment cum savings product in a true sense with other benefits such as –

Isn't it really ‘Ek Sampoorna Yojana’ you are looking for? Isn't it really ‘Ek Sampoorna Yojana’ you are looking for?

Important points which an investor ought to consider before buying an ULIP?

• Charges deductible under the policy

• The quantum of premium deducted for providing Life Insurance Cover

• Payment Clauses on premature surrender i.e. Exit Loads in case of Premature withdrawal

• Lapsation and Forfeiture Clauses, if any, and its consequences…...

• Limitations and exclusions, if any…..

• Features & benefits

• Past performance i.e. the track record

• Other Disclosures, if any

Where does the UTI-ULIP stand on all the parameters mentioned above?

UTI Unit Linked Insurance Plan (UTI ULIP) stands as a winning proposition on all the

fronts mentioned above.

We discuss each point one by one……

Charges deductible under UTI ULIP…..

1. In UTI ULIP units are allotted at the prevailing NAV (without any Entry Load) after deduction of the premium paid to Life Insurance Company for life insurance coverage.

2. No other expenditure is involved except for the Annual recurring Expenses which are subject to the following SEBI’s limits:-

First Rs.100 Crores – 2.25% Next Rs.300 Crores – 2.00% Next Rs.300 Crores – 1.75% Balance - 1.50% This includes the Fund Management Charges and all other

charges like Marketing expenses, R & T fees etc.

3. However, in case of premature withdrawal an exit load of 2% would be charged.

It is easy to understand and there are no hidden charges whatsoever.

Age of the Investor

Annual Premium payable to Life Insurance Corporation of

India per Thousand Sum Assured

Annual Premium for a Sum Assured of Rs. 1.00 Lakh under UTI-ULIP Fixed

Term Insurance Cover

31 1.30 13032 1.35 13533 1.40 14034 1.45 14535 1.55 15536 1.65 16537 1.75 17538 1.90 19039 2.05 20540 2.25 22541 2.45 24542 2.60 26043 2.80 28044 3.05 30545 3.35 335

The quantum of premium payable to Life Insurance Corporation of India for Fixed Term Insurance Cover in UTI-ULIP

For full details please refer to Scheme Information Document

Payment Clauses on premature surrender i.e. Exit Loads in case of Premature withdrawal……….

UTI ULIP provides easy Liquidity in two ways:-

i) Full Premature withdrawal in case of any exigency with only a 2% exit load. *

ii) There is also a Facility of Partial withdrawal after completion of 7 Years or 10 Years in case of 10 Year or 15 Year Plans respectively subject to maintaining a minimum balance of Rs. 5000/- calculated at NAV prevailing on such date, with insurance cover remaining intact.

* Subject to prevailing tax laws

Lapsation and Forfeiture Clauses, if any, and its consequences…...

1. No Lapsation under UTI ULIP :- UTI ULIP offers you advantage of continuity of Insurance coverage even if

you falter on paying your premium by redeeming existing units, subject to authorization by unit holders.

2. No Forfeiture under UTI ULIP :- There is no question of any forfeiture of the amount deposited by the

investor under UTI ULIP.

(i) UTI-ULIP offers the advantage of continuity of insurance coverage even if the investor falters on paying premium by redeeming existing units to the extent of premium payable to life insurance company subject to authorization by unit holders.

(ii) In the event of absence of authorization of the investor, the units

continue to be in the investor’s a/c which can be redeemed by the investor as and when he/she likes. However, in such case, Insurance Coverage would discontinue.

Limitations and exclusions, if any…….. Life Insurance cover under UTI ULIP will be limited to the extent indicated

in the following Table :-

Period elapsed since the commencement of membership/ date of revival of the membership and death of unit holder

Extent of the amount of the Life Insurance Cover payable to the Successor/nominee

Less than 6 monthsRefund of premia paid to Life Insurance Company

6 months and above but less than 1 Year

50% of the target amount unpaid but not due if under declining term insurance cover or50% of the target amount if under Fixed Term Insurance Cover

1 Year and above

100% of the target amount unpaid but not due if under declining term insurance cover or100% of the target amount if under Fixed Term Insurance Cover

* However, the limitation indicated above will not apply in case of death due to an accident and the claimant in such case may get full amount of the Life Insurance Cover viz. the unpaid but not due target amount in case of Declining Term Insurance Cover or 100% of the Target Amount under fixed term insurance cover.** The unit holder means the first unit holder.

UTI ULIP – Key features & benefits…….

• Investment Objective – To provide returns through growth in NAV or through dividend distribution and reinvestment there of.

• Eligible Investors : Open for investment to Resident Individuals as well as NRIs including investment in the name of the Spouse/Child subject to the following age limit.

Entry Age :- for 10 Year Plan : between 12 Years and 55 ½ Years - for 15 Year Plan : between 12 Years and 50 ½ Years• Plans/options offered : Choice of two Plans : 10 year Plan or 15 Year Plan with option of - Declining term insurance cover - Fixed term Insurance cover• Asset Allocation: - Debt Securities : Minimum 60% - Equity and equity linked instruments – Maximum 40%

UTI ULIP – Key features & benefits contd….

• Target Amount : Minimum - Rs.15,000/- ; Maximum – Rs.15,00,000/-

An investor can invest more than the maximum target amount of Rs.15 Lacs in one or more installments, the life insurance cover will, however, be limited to Rs.15 Lacs. The renewal contributions can also be paid in advance.

• Accidental Insurance cover – Personal accidental insurance cover of Rs.50,000/- irrespective of the target amount chosen.

• Load : Entry Load - Nil

Exit Load - 2% in case of premature withdrawal • Liquidity : - Premature withdrawal with an exit load of 2%

- Partial withdrawal also allowed after completion of 7

Years under 10 Year Plan and after completion of 10

Years under 15 Year Plan subject to maintaining

minimum balance of Rs.5000/-.

UTI ULIP – Key features & benefits contd…

• Maturity Bonus* : 5% under 10 Year Plan and 7.5% under 15 Year

Plan• Post Maturity Bonus : @ 0.50% for each completed year after the

date of maturity

• Tax Benefits** : - The contributions made qualifies for Tax Rebate

under Sec 80C of IT Act, 1961

- No Tax deduction at source

- The Maturity amount will come under the purview of

Long Term Capital Gains Tax and Short Term

Capital Gains Tax depending on the holding period

of units.

* No maturity Bonus will be paid in case of Premature/Partial withdrawal.

**subject to prevailing tax laws

UTI-ULIP now also comes with SIP Advantages…

Options Monthly/ Quarterly

Minimum SIP InstallmentMonthly: Rs. 500/- & in multiples of Rs. 100/-

Quarterly: Rs. 1500/- & in multiples of Rs. 300/-

Minimum Target Amount under 10 Yr Plan Rs. 60,000/-

Minimum Target Amount under 15 Yr Plan Rs. 90,000/-

Eligibility     

Monthly SIP:

a. 10 Year Plan: between 12 yr - 48 1/2 yrs

b. 15 Year Plan: between 12 yr - 42 1/2 yrs

Quarterly SIP:

a. 10 Year Plan: between 12 yr - 55 1/2 yrs

b. 15 Year Plan: between 12 yr - 50 1/2 yrs

Payment Options ECS, Direct Debits & PDCs

Fund Facts - UTI ULIP (As on June 30, 2010)

Launch Date 26th Dec.1994

Fund Size Rs.2,648.03Crs

No of Unit Holding Accounts 3,39,391

Fund Performance (As on June 30, 2010)

Compounded Annualized Returns

NAV CRISIL Debt Hybrid (60:40)%

1 Year 19.67% 12.65%

3 Year 13.01% 9.03%

5 Year 14.17% N/A

Since Inception (Oct 01,1971) 11.16% N/A

Assuming that all pay-outs during the period have been re-invested in the units of the scheme at the immediate ex-div NAV. Past performance may or may not be sustained in future.

Source: UTI Fund Watch July 2010

UTI ULIP - Asset Allocation as on June 30, 2010

SOURCE: UTI Fund Watch July 2010

UTI - ULIP

Disclaimer:The ranks assigned by ICRA/ICRA Online are based on an objective analysis of information obtained from the entities concerned as also other sources considered reliable by ICRA/ICRA Online. However, the ranks must be construed solely as statements of opinion and ICRA/ICRA Online shall not be liable for any losses incurred by any user from any use of the ranks. Also, the ranks are neither a certificate of any statutory compliance nor any guarantee on the future performance of the ranked entities/schemes.Ranking and Award Source: ICRA Limited /ICRA Online Limited MethodologyICRA Mutual Fund (MF) Awards are based on the proprietary ranking methodology devised jointly by ICRA and ICRA Online Ltd. The ranking process considers only growth oriented open ended equity and debt schemes apart from liquid and ultra short term schemes where Institutional plans are also considered. The eligibility criteria is based on the median category AUM, and stringent disclosure norms for portfolio and NAV over one and three year periods. The ranking methodology dynamically factors in the actual investment pattern rather than on the scheme’s stated objectives. The scoring model for the final ranking, factors norms for Risk-adjusted returns, Average Maturity, AUM size, Liquidity analysis, Credit Indicator, Concentration analysis . The rankings are conducted for 29 different categories over the one-year and three-year horizon. Schemes are assigned 1- star, 2- star, 3- star, 4-star and 5- star based on a ranking scale. The best scorer amongst the 5- star in a category is ranked as 7- star or the best fund in the category. This is however subject to the fund’s AUM being of at least more than Rs 100 Cr or greater than the category average; whichever is lower.

Source: www.mutualfundsindia.com

ICRA awards UTI ULIP as a Five Star Fund in the category of “Open ended Marginal Equity” schemes (for its one year performance till December 31, 2009).

A Winner

In a nut shell, UTI-ULIP is an unique bundle of multiple benefits offering an opportunity of Wealth Creation along with 1. Life Insurance Cover at a very low cost2. Accidental Insurance Cover3. Market Related Returns4. Tax Rebate* under Sec 80C of IT Act 1961 5. Liquidity with only 2% exit load

The multiple benefits embedded in the The multiple benefits embedded in the scheme makes it “ek Sampoorna Yojna” scheme makes it “ek Sampoorna Yojna”

*Subject to prevailing tax laws

Disclaimer Risk Factors : - All investments in Mutual Funds

and securities are subject to market risks and the NAV of the schemes may go up or down depending on the factors & forces affecting the securities market. All Mutual Funds and securities investments are subject to market risks and there can be no assurance that the fund’s objectives will be achieved. Past performance of the Sponsor/Mutual Fund/ Scheme(s)/AMC is not necessarily indicative of the future results and may not necessarily provide a basis for comparison with other investments. UTI Unit Linked Insurance Plan is only the name of the scheme and does not in any manner indicate either the quality of the scheme, its future prospects or returns. Please read the Scheme Information Document carefully and consult your financial advisor before investing.

Thank You