Skip to main content

ULIP Review: Kotak ACE Investment

 

It won't be an overstatement if the offering from Kotak ACE Investment matches the speed of an ace on the tennis court. The similarity doesn't end there. It's not just about speed, but intensity that keeps the scoreboard ticking. With an exhaustive list of options, this product is no exception to that rule


   KOTAK ACE Investment is a type I unit-linked insurance plan (Ulip). It's a vanilla scheme that offers a wide array of investment options and riders. However, it's only the equity-oriented funds, including classic opportunity, frontline equity and balanced funds, that have projected a good show.

COST STRUCTURE:

Kotak claims ACE to be an investment-oriented Ulip and so, has kept the cost structure low. This allows more premiums to get transferred to the fund account and thus, reap benefits for policyholders in the long term. The mortality charges of Kotak ACE are nominal at 1.1 times the standard LIC charges. The only charge that may be heavy on investors' pocket is the fund management fee that is alike for all investment options, when generally the FMC on debt and money market funds are charged low.

PERFORMANCE:

Kotak offers an exhaustive mix of eight investment options, of which four are equity-oriented and the rest are debt funds. All these funds were launched just a little more than a year ago. Most of the equity funds excluding Dynamic Floor Fund II of Kotak have managed to outperform the respective benchmark with good margins while debts are yet to show their sheen. Even the last 1-year performance of Kotak equity funds has been very encouraging. Among debt funds, only the bond fund has outperformed the benchmark while others, including the Gilt Fund, Floating Rate and Money Market Fund, have either underperformed or been at par with the benchmark.

PORTFOLIO:

Kotak's equity portfolio is restricted to investing only in well-recognised large-cap companies. This fairly reduces its risk quotient. Banking and financial services, which is the major sector and accounts for almost 25% of the equity portfolio, has limited its investment to some of the top banking and financial services scrips, including HDFC Bank, ICICI Bank, HDFC, and SBI. Its other important sectoral investments include technology and energy. While the portfolio has a decent mix of sectors, it has limited its options when it comes to choosing stocks.

 

   The debt portfolio of the scheme is also well-diversified among FDs, mutual funds, government bonds and NCDs. The maturity profile of the debts is also spread well between 1-7 years.

DEATH MATURITY BENEFIT:

Upon maturity, the policyholder receives the amount accumulated in the fund, whereas in case of death, the higher of the fund value or sum assured will be received. For instance, say a 35-yearold healthy male invests 50,000 pa in Classic Opportunity Fund of Kotak ACE for 15 years. Assuming the sum assured equivalent to be 10 times the annual premium, the total sum assured receivable, in the case of any eventuality, would be 5 lakh. Now, by the end of 15 years, assuming the rates of return of 6% and 10%, the fund value shall be 1,024,511 and 1,434,103, respectively, receivable at the maturity.

OUR VIEW:

Kotak ACE Investment has a competent cost structure which, along with the outperforming equity funds, can prove to be an ace in the hole for the policyholder in unfortunate events. Investors with high risk return appetite can look forward to investing in Classic Opportunity or Frontline Equity Funds for good returns.

 

Popular posts from this blog

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Mirae Asset Emerging Bluechip Fund

Start Saving for Tax 2018 by Investing in ELSS Funds Online HOW HAS THE Mirae Asset Emerging Bluechip Fund PERFORMED?   With a 7-year return of 25.08%, the fund has outperformed both the category average return (18.04%) and benchmark (13.4%) by a wide margin.   Growth of Rs 10,000 vis-a-vis category and benchmark   Mirae Asset Emerging Bluechip Fund   is a mid-cap oriented fund continues its stellar run, clocking another year of outperformance over benchmark and peers—a feat it has achieved every year since inception. The fund manager plies a strictly bottom-up approach to stock selection and keeps risk contained by focusing on larger mid-caps. A year ago, it had stopped accepting lump sum investments and now the fund has also put restrictions on SIP investments—only allowing SIP on the tenth of every month with an upper limit of Rs 25,000.   It has done so to preserve its return profile in the face of mounting inflows and stretched valuations in the mid-cap space. This step should hel...
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