Dear Policy Holders,
Do you know that close ended MFs charge 6% of the funds generated as fee but amortise them over a few years thus giving distorted NAVs to that extent till the charges are fully reflected? The open ended funds mostly charge 2.25% as entry fees. The govt. is contemplating to allow only 2.5% as the entry level charge for the open ended schemes also and they would have to show the NAV post this charge from the beginning itself.
Should you , therefore , not regard the ULIPs as much more cost effective and transparent . In case of the ULIPs from HDFC SLIC further top ups and premiums after two years are charged only 1% in contrast.
Hari Om
Krishna Kumar Khandelwal
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