CANARA HSBC Oriental Bank of Commerce Life has come up with three unit-linked products — Stay Smart Plan, Retire Smart Plan and Saral Bima Plus. These products conform to IRDA’s strictures capping ULIP charges at 3% of the gross yield for 10-year policies, and 2.25% for those with a term of over 10 years. Fund management charges cannot exceed 1.35% for all policies. The Stay Smart Plan, which offers life cover till the age of 99 years, specifies a minimum premium of Rs 25,000, while the death benefit will be higher of the fund value or the sum assured. The second plan, catering to retirement needs, comes with two options – pure pension or pension with life cover. Under the Saral Bima Plus, targeted at the semi-urban and rural segment, life cover is offered on the basis of a ‘Declaration of Good Health’. The minimum premium payable is Rs 6,000, while the maximum is Rs 1 lakh p.a. The sum assured is five times the annual premium.
Average Gain Between Any Two Downturns Has Been 186% IF you have lost a fortune in shares by now, the best way to make it up perhaps could be by buying some more. Since the Great Depression of 1929, the world has undergone 12 major bear market phases. The average bear market has lasted about 22 months, and the market has fallen by an average of 51%. However, the average gain during the bull market between any two downturns has been an eye-popping 186%. The index here in question is the S&P 500. Bull markets — after every recessionary phase — have always been good for investors. All major bull rallies since end-1930 have resulted in markets gaining between 50-500%. Historic numbers show that the magnitude (size or breadth) of a bull market is much heavier than that of a bear market. The million dollar question is: Are we at the threshold of another bull market rally? Markets could go up intermittently, but convincing rallies will take time to happen. The current bear phase is...
