Skip to main content

ULIP Review: Birla Sun Life Platinum Premier

 

Birla Sun Life Platinum Premier is an investment product rather than insurance. Though it offers guaranteed give benefits the guaranteed, only the highest first three NAV premiums 550

 


   LAUNCHED in December 2009, Birla Sun Life Platinum Premier Plan provides guaranteed highest net asset value (NAV) on the premium invested. The policy offers two investment strategies, such as guaranteed fund option and self-managed option. However, there is not much difference between both these strategies. This is because, in the guaranteed option, the fund assures guaranteed NAV only on the premium paid in the first three years. Thus, after the third year under both the strategies, funds are self-managed. Investors who are more conservative in their approach may find the guaranteed strategy more suitable though it has higher fund management fees. Irrespective of strategies chosen, the plan offers 10 investment options having various asset allocation compositions that cater to all segments of investors. For instance, investors with high risk return appetite can choose from magnifier, maximiser, multiplier and super 20 fund while those looking for conservative returns can go for some balanced or debt-oriented fund.

COST STRUCTURE:

The gross cost structure is on a higher side compared to other similar products in the market. The premium allocation charge in total is 55% of the premium; policy administration charges are fixed at 720 except for the first three years. But if one sees the net cost that is calculated after factoring for the loyalty units and maturity benefit the product stands quite at par with its competitors. The fund management charge is higher especially for the guaranteed fund option.

BENEFITS:

The policy offers flexibility in terms of funds. The policy gives guaranteed benefits, but the catch here is that only the first three premiums are invested in the guaranteed platinum premier fund and earn guaranteed highest NAV, while the rest seven premiums are invested in the 10 fund options available. This policy also offers maturity benefit worth 50% of the annual premium. Also it gives an option to stop premium payment after the third policy year. In this case your whole investment earns highest guaranteed NAV. This is a regular pattern of investment followed in this type of plan.

PERFORMANCE:

The plan offers a platinum premier fund in which the first three premiums are invested. The highest NAV is calculated on a daily basis for seven years three months. It's a closed-ended and after every three months, the company closes the existing fund and releases a similar new fund. Since it's a guaranteed fund, it is managed in a conservative manner. The returns are not as high as that of an equity-oriented fund. But for a risk-averse investor, it's a good choice since the fund does not carry high risk and at the same time gives guaranteed highest NAV at maturity. The fund has not done so well since its inception but in the past one year, its performance has been phenomenal with 34% return. Being a mid-cap, it can deliver high returns but at a high risk and one should be cautious while investing in it. For investors looking to get advantage of the large cap can opt for super 20 since this fund invests only in long-term bluechip funds.

PORTFOLIO REVIEW:

Birla Sun Life has an equity-oriented basket of funds, which suggests high risk with high returns. The company has high mid-cap equity exposure, the equity fund comprises about 15% funds parked in mid-cap stocks. The company has comparatively low exposure in banking and oil and gas sectors. At the same time the exposure in capital goods and IT sectors is considerably high. The fund manager is quite bullish on sectors such as capital goods, pharma, auto and cement while metal and FMCG are a few sectors where the company has reduced its exposure. The fund manager is also positive on companies such as Bharti Airtel in the telecom sector. While the fund manager has affirmed occasional churning of the portfolio, it is restricted to only 25% of the stock comprising of mid-cap stocks.

DEATH/MATURITY BENEFITS:

In case of death, higher of the fund value or sum assured will be received whereas upon maturity, the policyholder receives the amount accumulated in the fund. Accumulated amount will include guaranteed amount from the platinum premier fund on the first three premium invested and the rest available in the funds. The platinum premier fund guarantees at least a minimum of 10 per unit in the fund.

OUR VIEW:

Birla Sun Life Platinum Premier Plan is mainly an investment product rather than insurance. It is a short-term product with flexibility of paying only three premiums. Cost structure is decent when compared to similar products. Guaranteed NAV is an attractive concept but it is mainly for investors who are risk averse. In this plan, guaranteed NAV is only earned in the first three premiums. The good thing about the product is the varied basket of funds available for investment. Conservative investors can opt for either three premium payments with guaranteed returns or the guaranteed investment option. However those expecting higher returns on their investment can opt for self-managed fund and opt for both equity and balanced funds in right proportions.

 

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now