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

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.

Impact of Demonetisation

The government's move to demonetise `500 and `1,000 currency notes will immediately impact reserve money and money supply in the system along with the balance sheet of the Reserve Bank of India, the sole authority in the country for accepting currency notes and coins as legal tender. ET explains the interplay of currency, reserve money and money supply. 1. What is currency in circulation? It is the total value of currency (coins and paper currency) that has ever been issued by the central bank minus the amount that has been withdrawn by it. Currency in circulation comprises currency notes and coins with the public and cash in hand with banks. It is a major liability component of a central bank's balance sheet. 2. What is reserve money? It is essentially the central bank's money . It is also called high-powered money , base money and central bank money . As per the definition, reserve money equals currency in circulation plus bankers' deposits

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l
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