Wednesday, May 21, 2008

Reliance SIP Insure

Reliance SIP Insure facility is an add on feature of life insurance cover under Group Term Insurance to individual investors opting for SIP in the designated schemes. Reliance SIP Insure provides free life insurance cover to investors at no extra cost. In the unfortunate event of the demise of an investor during the tenure of the SIP, the insurance company will pay for the balance amount towards the remaining unpaid SIP installments and benefit amount to nominee.*
*Nominee account would mean nominee in case of single holding & second or joint holder in case of Joint Holding.
Benefits:
  • The benefit of Long Term Equity Investment
  • The benefit of Systematic Investment Plan
  • Free Life Insurance Cover
  • Flexibility (choice of schemes)
  • Convenience (Auto debit/ ECS facility)

Option available in the schemes:

􀂾 Reliance Growth Fund - Retail Plan
􀂾 Reliance Vision Fund - Retail Plan
􀂾 Reliance Equity Opportunities Fund - Retail Plan
􀂾 Reliance Equity Fund - Retail Plan
􀂾 Reliance Equity Advantage Fund- Retail Plan
􀂾 Reliance Regular Savings Fund – Equity option
􀂾 Reliance Regular Savings Fund – Balanced option
􀂾 Reliance Banking Fund
􀂾 Reliance Pharma Fund
􀂾 Reliance Media & Entertainment Fund
􀂾 Reliance Diversified Power Sector Fund – Retail Plan
Under Reliance SIP Insure, the investors are provided life insurance cover without any extra cost under a Group Term Insurance. In the unfortunate event of the demise of an investor during the tenure of the SIP, the insurance company will pay for the balance amount towards the remaining unpaid SIP installments subject to a maximum of Rs 10 lakhs.

Eligibility:

􀂾 All individual investors enrolling for investments via SIP & opting for ‘Reliance SIP Insure’
􀂾 Only individual investors whose completed age is greater than 20 years and less than 46 years at the time of investment.
􀂾 In case of multiple holders in the any scheme, only the first unit holder will be eligible for the insurance cover.


Investment Details:
􀂾 Minimum Investment per installment: Rs.2000 per month & in multiples of Re 1 thereafter. There is no upper limit
􀂾 Minimum Period of Contribution: 3 years and in multiples of 1 year thereafter.
􀂾 Maximum Period of Contribution: 15 years OR till attaining 55 years of age, whichever is earlier (e.g., a person can register an SIP of maximum 10 yrs at the age of 45 yrs.) The insurance cover ceases when the investor attains 55 years of age.
􀂾 Mode of payment of SIP installments is only through Direct Debit & ECS ( Post Dated
Cheques shall not be accepted )


Amount of Life Insurance Cover Available:
􀂾 An amount equivalent to the aggregate balance of unpaid SIP installments, subject to a maximum of Rs.10 lakhs per investor across all schemes / plans and folios will be invested in the Nominee’s* account
􀂾 This amount will be invested in the same scheme/s (under which the deceased investor has enrolled for SIP) at the applicable price based on the closing NAV on the date on which the cheque for insurance claim settlement is received by the AMC from the insurance company, subject to completion of requisite procedure for transmission of units in favour of the nominee.

Commencement of Insurance Cover:

The Insurance cover shall commence after “waiting period” of 90 days from the commencement of SIP installments. However, the waiting period will not be applicable in respect of accidental deaths.


Cessation of Insurance Cover:
The insurance cover shall cease upon occurrence of any of the following:
􀂾 At the end of mandated Reliance SIP Insure tenure. i.e., upon completion of payment of
all the monthly installments as registered.
􀂾 Discontinuation SIP installments midway by the investor i.e., before completing the opted
SIP tenure /installments.
􀂾 Redemption / switch-out of units purchased under Reliance SIP Insure before completion
the mandated SIP tenure / installments
􀂾 In case of default in payment of two consecutive monthly SIP installments or four
separate occasions of such defaults during the tenure of the SIP duration chosen.
Note -There is no provision for revival of insurance cover, once the insurance cover ceases as
stated above.
Exclusions for Insurance cover:
No insurance cover shall be admissible in respect of death of the SIP-Insure unit holder
(the insured person) on account of –
􀂾 Death due to suicide
􀂾 Death within 90 days from the commencement of SIP installments except for death due
to accident
􀂾 Death due to pre-existing illness, disease(s) or accident which has occurred prior to the
start of cover.
Load Structure:
􀂾 The Entry Load under Reliance SIP Insure shall be same as applicable to normal
purchase /additional purchase transactions in the respective designated schemes
􀂾 However, there will an Exit Load of 2%, if the accumulated units acquired or allotted
under Reliance SIP Insure are redeemed or switched out to another scheme before the
maturity of SIP tenure as opted in the respective scheme either by the SIP-Insure unit
holder or by the nominee*, as the case may be.
Note:
􀂾 In the event of the death of the investor before completion of SIP Insure Tenure, in case of any
contingency there is an option with the nominee* to redeem the amount by paying an exit load
of 2% on the repurchase units.
􀂾 However, if the units are redeemed on completing the opted SIP tenure, there will not be any
exit load in the respective scheme.
􀂾 The insurance cover for the above schemes is being arranged by the AMC through “Reliance
Group Term Insurance Scheme” of Reliance Life Insurance Company Limited. The cost of the
insurance premia shall be borne by the AMC.
􀂾 Grant of insurance cover is discretionary on part of Life Insurance Company (as there is no
pre-medical test) and the cover is subject to non-medical underwriting in the form of selfdeclaration
of health by the insured person.
Recommendation: “Invest”. Reasons to invest in this product: - Equity provide relatively
better returns among all assets class over a longer period of time, free life insurance cover,
long term investment in mode of SIP, flexibility in terms of choice of different equity schemes,
benefit of rupee cost averaging in times of volatile market, SIP inculcates savings habit, helps
to complete the planned investments goal, SIP eliminates the need to time the market, benefits
of compounding returns over the long term, benefit as same of other scheme with extra benefit
of life insurance etc.
Disclaimer:-The information contained in this report is obtained from reliable sources. In no
circumstances should it be considered as an offer to sell/buy or, a solicitation of any offer to,
buy or sell the securities or commodities mentioned in this report. No representation is made
that the transactions undertaken based on the information contained in the report will be
profitable, or that they will not result in losses. SPA and/or its representatives will not be liable
for the recipients’ investment decision based on this report.

Lotus India Banking Fund

Now after Sunderam AMC, Lotus has come out with an NFO.

NFO Opens: May 19, 2008

NFO Closes: June 17, 2008

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Aggrasive Portfolio

  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

Best SIP Fund For 10 Years

  • IDFC Premier Equity Fund (Stock Picker Fund)
  • Principal Emerging Bluechip Fund (Stock Picker Fund)
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund)
  • JM Emerging Leader Fund (Multicap Fund)
  • Reliance Regular Saving Scheme (Equity Stock Picker)
  • Biral Mid cap Fund (Mid cap Fund)
  • Fidility Special Situation Fund (Stock Picker)
  • DSP Gold Fund (Equity oriented Gold Sector Fund)