Positive Growth by HDFC Life

Dear Policyholders,

HDFC Life is the only company which has had positive growth during last year. Even LIC hasn't been able to show positive growth last year.

The year was bad for all as  many changes were brought about by IRDA in line with policy of keeping interest of policyholders supreme and compelling companies to reduce costs and charges. Since HDFC Life has always been alive to this, it could negotiate a period of turmoil for the industry at large in absolute comfort.

You should now be satisfied and proud to be with HDFC Life. As for returns on various funds for ULIP Holders , the lead is maintained by HDFC Life. You may check fund performance by visiting www.hdfclife.com .

The total fund under management of HDFC Life have crossed the mile-stone of Rs 25000 crs.

Please contact me with your specific requirement of insurance coverage, funds investment and tax planning , I promise to give you entire satisfaction on all scores, HDFC Life provides me plateform to do it.

Thanking you,

Krishna Kumar Khandelwal

What we can do in respect of our funds under our ULIPs?

Dear Policyholders,

The Nifty is under attack and what should we make out of it. Let us see what we can do in respect of our funds under our ULIPs . I am doing the loud thinking to have a firmer opinion and list it below, pointwise :

1. Should one take some risk to avoid missing the bus when bullish moves come back, I think one should take some risk and get into equities because if the bench mark yield is 8.20 pc for 10 year paper and inversely it is 12.2 PE for it. We know that the PE for Nifty would be about 17 at the current level. There is however one difference between the two ie the PE for bonds would be static but for Nifty the growth in profits of whatever magnitude will bring the PE down every coming year. The trouble may come only when there is negative growth in profits of companies but that is unthinkable for the time being as the GDP growth remains above 8pc and expected to be so in near future.

2. There is fear that FIIs will sell further and dent Nifty. Here we seem to presume that FIIs are irrational entities and would not look at the value-price ratio while selling. In fact the sell off in 2008 was an exercise in irrationality caused by the collapse of financial system in US. There is no possibility of a similar event happening now or in near future, so down the line buying need will emerge with fall in prices beyond a level.

3. The domestic savings find way into equities to some extent and would add to demand for equities and not supply because Indian masses sell only at some profit and not at loss (short-term traders apart).

4. The follow-on public offering by companies over the last three years at premium have arrested the slide in such companies.

5. There is a lot of capacity creation by companies by ploughing back profits in to capex. This makes the base for greater profitability in good times and let's companies have assets that grow in value due to inflation but which show lower book-value due to depreciation adjustment. The writing-off cycle for most assets is far lower than the real life and residue for these assets.

6. Sector-wise :

Cement : this sector has been discounted in line with performance and should have good times ahead.

Banking : this forms a large part of Nifty and has been under price pressure though has delivered better numbers for latest quarter and no fear of further slide is seen.

Auto : this sector has seen great run-up and is on its way down which will have reached the safety point in a few more weeks. The high interest rate regime has cast some shadow on its growth prospect but the intensity of demand seen in past may not just die down so easily.

Telecom : the share prices of companies in this sector are at very low ebb already , if any thing , it may see rising fortune.

Infrastructure (including cap-goods manufacturers ) : this sector would grow in size always , the profitability may fluctuate , however, it has been robust. For example BHEL's quarter ended 12/10 delivered profit of Rs 1403 crs against Rs 790 crs of quarter ended 12/08 ( two year - double profit) .

Oil, Gas and Petroleum : this is represented by heavy -weights like ONGC and Reliance. Other are in marketing and have limited scope of going up or down. Both biggies gave out good results which are more than double of what it was in quarter ended 1208.

Pharma : this has many names with good track records, the Nifty has no worries on account of them..

Housing : this sector has little representation in Nifty and is one of the unstable ones. DLF is already down enough to worry for future.

IT : this has regained its importance and improved performance due to US economy on recovery path. They would progress and are on firmer ground. The profits have improved but prices are in normal range

Metals : there has been good capacity creation in this sector and profitability is OK, so, here also worries should remain at bay.

FMCG : this sector has best of the corporate level practices, HUL and ITC are very strong companies which would grow only in positive direction in future and keep Nifty in balance.

Power : the likes of NTPC have no parallel , the price also is on the lower side. With distribution and bill collection problems under check, power sector should remain OK and growing. Profitability of this sector is ensured.

(I have talked of sectors with particular reference to Nifty because HDFC Life's equity funds have bulk from the Nifty universe. The rest are very meticulously researched and collected and give the opportunity of beating the indices year after year. )

The Price to Book ratio is at historically low point and would put-up resistance against price fall.

The big fall in 2008 had occurred when the PE for Nifty was high at 27-28. The case is quite different this time. If there is over-selling , then the bears will take care of Nifty from going further down . You should have resurgent mood rather than sombre mood at present. This is my message. You are aware that any thing may happen , designed or otherwise , so you have to arrive at your own judgement before you convert idea into action.

The food and commodity prices have bearing on industrial economy and not so much on the rest like Pharma, IT, FMCG and services. High commodity prices give commodity producers to improve margins. High interest rates affect in a similar way. Since the industrial have far lower representation than they used to, the situation should not be taken to be very alarming.

With best wishes ,

Krishnakumar Khandelwal

Dear Policyholders,
   I am addressing again after about a month which has seen indices go up very fast and the Nifty has now reached a high level of above 5900. I have noticed pointers which indicate that a correction of about 5 to 10 % is on cards. Respecting this very observation I now advise you to transfer funds entirely in to 'secured fund' . This is for all three ie for the conservative, the moderates and also for the aggressive. 
  The RBI has raised the policy rates by a small margin but the bond prices are down and if you enter the secured fund now you also have a chance of appreciation in the bond values when the interest rates are revised downward and I expect it to happen after about six months from now. It is not that stocks have a bleak future but the risk-reward equation is at such point that the prudent investors keep funds in safe pocket and this applies more for the insurance and pension plan funds as they are for long term goals. My resolve is to advise you in way which takes care of safety as well as of decent growth. I am happy that this has been practically achieved since the time I began to advise you in these columns.
   The new plans have been introduced by companies as per the IRDA guidelines but what I find is that the charges like policy fee and fund management have been raised and the fund allocation charges in the first two years have been brought down. The fund-switching also will cost in future policies as against free switching for 24 times in a year in respect of plans sold to you so far. This makes the old plans worth more than gold, therefore please ensure that you keep paying the premium without fail and also keep topping up with every rupee that you save only on the ULIPs you already hold. You are aware that there is no withdrawal restriction or charge on your presently held policies (in a few cases the withdrawal is possible after three years, so check your policy issue date). Its only you who will have the cake and eat it too. 
  So, rejoice and enjoy your most valuable investment asset to the hilt. If you neglect to take full advantage, you are only going to damage the cause of fund growth and tax saving and hassle free management of funds.
Wishing you all the best,
Krishnakumar Khandelwal

Fund Switching Advice as on 23 Aug 2010

Dear Policy Holders,
  Its time to take stock of situation in Indian equity markets and readjust out funds in different pockets. The Nifty as also other indices have seen good run up during the month of August '10. Although at this time in the year we should be getting readied to fully invest in equities as the period beginning after Ganesh Chaturthi or Dussera moves the markets up due to release of money in the hands of businesses along with profits, part of which finds way back in to govt coffers by the end of Financial Year. The floating surplus pushes up the demand for investible securities including equities. The insurance companies sell more policies in the six month of Oct-Mar. The ULIPs remain the most preferred option. All this augurs well for the markets but I am going to advice in a reverse way, due mainly to the disturbing factor of down moves in foreign markets on one hand and due to Indian markets being at three year high at this wrong point during the year which sees some downward pressure usually. Since some thing has not happened in an ordinary way, we have also to be slightly more cautious. I therefore advise you to do the following :
a) the aggressive should park entire fund value in Balance Managed Fund.
b) the moderates should get there funds into Defensive Fund.
c) the conservative should be opting for Stable Managed Fund only.
  As per the IRDA guidelines, newer products will be announced by HDFC SLIC as also other companies wef from 1 Sep 2010. After studying them, I will give you my assessment and tell you merits of the same.
Thanking you,

Krishna Kumar Khandelwal

Fund Switching Advice as on 27 Mar 2009

Dear Policy Holders,

I last addressed you on 27 Feb 2009 on the subject of 'growth fund' portfolio of HDFC Std Life Ins Co and I had advised earlier in Dec 08 to all ULIP holders that the 'growth fund' pocket was best to be invested in. My one important reason to say that was that the valuations were already reasonable and market could not have declined much in worst of the circumstances and the other was that it would be difficult for any body to catch the bus when there is some good news and people rush to convert cash into equity (includiing MFs and FIIs). The circumstances did get worse in the mean time but Oct 08 lows were not breached. Then the news flows became positive on balance and people rushed for buying equities.

The last fifteen days have been historic and the Sensex is perched at above 10000 and Nifty above 3100 (gaining more than 20 pc). Now should we shy away from keeping investment in 'growth fund', I think not. However, my advice to all classes of people is to just move 25 pc value to 'secured fund' and rest should remain in 'growth fund'

I will be coming back with the required analysis and guidance whenever there is further need to switch funds.

Those who have some investible funds but do not have a ULIP policy to absorb it may contact me with details so that I may suggest a right plan to take care of their needs. Needless to say that the ULIP are ultimate products for all investment and risk cover needs. It is also a must that your financial advisor is capable of studying economic environment and advising rightly. So, choose your advisor first and the plan later.

HariOm,

Krishna Kumar Khandelwal

Remain invested in Growth Fund

Friends,

The ULIPs (unit linked insurance plans) have gained popularity recently and have have given negative returns for the first time in past twelve months. Reason is not far to seek, the USA’s financial disorder has to do every thing with and therefore it was something which the fund managers could not have controlled or assessed. I decided to evaluate the ‘growth fund’ portfolio of HDFCSLIC. Their top holdings with more than 1 pc investment of the gross amount with the fund is as under (CMP on 020209):

ASIAN PAINTS (2.66 pc): Its book-value is 97/- against CMP of 778/- and EPS is Rs 37.10. Its 52W H/L happens to be 1314/778. This is good scrip and has good stability and brand image.It’s leadership is undisputed.It can be held for long term withiout fear as the management is top class.

BHEL (6.67 pc): Its book-value is 153/- against CMP 1308/- and EPS of Rs 59.3. The 52W H/L is 2366/984. This is company which has least worries on account of slowdown due to robust oerder-book. This is slated to give handsome returns over long period and is one of the best picks.

BHARTI AIRTEL (2.92 pc): Its BV is 106.3 and EPS is Rs 39.10. The CMP is 715/- and 52W H/L happens to be 950/484. This is a great company by all standards and is in a field that is growing by leaps and bounds. It has head start over other players in the field and should be one of the best bets at the time.

BLUE STAR (1.83 pc): Its B//V is 29.30 and EPS is Rs 17.70 while CMP rules at 140/- against H/L of 500/122. This is an old player in air-conditioning and has very resonable price against EPS.

COLGATE (3.18 pc): Its BV is 11.90 and EPS is Rs19.70 while the CMP is 415/- against 52W H/L of 460/341. This is one of the best managed companies and its brand value is tremendous. This should be a part of any good portfolio and for consistancy. FMCG sector is growing even in todays gloomy times.

CROMPTON (4.05 pc): Its B/V is 25/- and EPS Rs 10/- and CMP rules at 130/- against 52W H/L of 336/106. A player in elecrical equipment sector and with good pedigree , this gives absolute comfort in a portfolio.

DISHMAN PHARMA (1.59 pc): Its BV is 58.2 and EPS Rs 10.8 while CMP rules at 112/- against 52W H/L of 350/97. This pharma comapny is discouted very favourably just now and carries value.

DIVI’s LAB (2pc): Its BV is 135 and EPS is Rs 63.50 while CMP rules at 862/- against 52W H/L of 1635/797. This also falls in same catagory as Dishman Pharma and has scope of appreciation.

EXIDE (2.90 pc): Its B/V is 12.40 and EPS Rs 3.50 while CMP rules at 40/- against H/L of 84/37. This is at reasonable level of price and has no risk of further slide.

GLAXO SMITHKLINE (1.69 pc): Its B/V is 183.40 and EPS Rs 44.80 while CMP rules at 585/- against 52W H/L of 766/480. In packaged food business, this company has good track record and is good scrip to hold.

ICICI BANK (4.53 pc): Its B/V is 417.40 and EPS Rs 37/- while CMP rules at 385/- against H/L of 1245/282. This is a bank with great strides in expansion of business. It was under bad publicity but without substance, over time it gain old glory and will increase value of portfolio.

INFOSYS TECH (5.44 pc): Its BV is 235.60 and EPS Rs 94.90 while CMP rules at 1049/- against 52W H/L of 2017/1040. This company is known all over the world for right reasons and is a good addition to portfolio.

ITC (6.58 pc): Its BV is 31.80 and EPS Rs 8.40 while CMP rules at 132/- against 52W H/L of 232/178. A leader in all its field of operations and consistant growth in EPS this is best addition to portfolio.

L and T (4 pc): Its BV is 162.70 and EPS Rs41.30 while the CMP rules at 662/- against 52W H/L of 1937/611. This is under some cloud over investment in ’satyam’ but would soon regain glory. Its business is growing on compounding basis and would add good value to portfolio over time.

NESTLE (2.76 pc): Its EPS is Rs 70/- and CMP rules at 1477 against 52W H/L of 1520/1335. This is a company of high esteem and stable business and great brands. This would give stability to portfolio as also decent returns.

ONGC (4.21 pc): Its BV is 330.20 and EPS Rs 77.20 while the CMP rules at 639/- against 52W H/L of 1124/538. This is a company which may be called backbone of India. It global aquisitions have tremendous scope of giving profits. Its a ‘must-keep’ for any good portfolio.

RELIANCE (5.41 pc): Its BV is 608.20 and EPS Rs99.90 while CMP rules at 1278/- against 52W H/L of 2707/930. This company is capable of negotiating any rough patch without losing out. A very efficient refinery and oil exploration business make it a all time company. Should be improving performance in coming time.

SATYAM (2.30 pc): This would have been a dead investment but some how has been saved by the new team at work after being subjected to greatest fraud by its own executives.This may have been added due to more attractive ratios but due to concealed reasons. No further damage will be there on account of this investment.

SEIMENS (2.69 pc) :Its BV is 61.30 and EPS Rs 21.40 while CMP rules at 201 against 52W H/L of 865/186. At current price and the capacity generate profits in future give is a special status.

STATE BANk (6.73 pc) : Its BV is 772/- and EPS Rs 130/- while CMP rules at 1096/- against 52W H/L of 2310/991. This is pure value at current price. Would be star performer in coming time.

UNITED PHOSP. (3.99 pc): Its BV is 43.50 and EPS Rs 3.90 while CMP rules at 96/- against 52W H/L of 185/65. Catering to vast agri-sector of India , its a very effcient player in the field. Almost must for a good portfolio.

ZEE ENT. (3.64 pc): Its BV is 49.40 and EPS Rs 7.40 while CMP rules at 104/- against 52W H/L of 280/90. This has been picked for the sectoral preference. I have some reservations about the quality of corporate governance even though it may give good returns.

The above companies represent 82 pc of the investible funds under ‘growth fund’. The rest comprises of small investments in a few equities and rest is in bonds etc. As you may have noticed that the investments are of two types ie where the business is ever growing and is not subject to recessionery conditions and where there is value. The value stocks have been choosen keeping in mind the line of business which is again less prone to recessionery conditions. This is a good strategy adopted by the fund managers. I have looked in to each of above stock and may say that given time and given normal conditions, each of above companies may see doubling of the share price. It is for this reason that I have been insisting on investors/policy-holders remaining invested in ‘growth fund’. It could have been suggested that one remains partly invested in ‘growth fund’ but at such fantastic values which naturally ensure safety in long term, it is only advisable to remain invested 100 pc. The bus may be missed by those try to time the market and mid-way it may be more risky to enter. I hope you appreciate what I say, for confirmation please wait with patience.

HariOm,

Krishna Kumar Khandelwal

Fund Switching Advice as on 28 Mar 2008

Dear Policy Holders,

The markets have come in to bullish mood and result season is around the corner. You were advised lastly on the 17 Feb 08 and you must be keeping 50% in Growth Fund and 50% in Secured fund. This was applicable for all the categories of investors as there was no substantial risk of down slide.

Now I would like the aggressive amongst you to go for full investment in Growth Fund, the moderates may keep their funds in Equity Managed Fund where the equity component is between 30% to 70%. The conservatives should be ready to book profits when the Nifty goes past 5400 points.

I hope that you are keeping track and benefiting. Those of you who do not have I-PIN for online switching convenience may write to me for the necessary forms etc. Please make sure before you apply for it that you should have your own E-mail ID.

I have also to tell that those who have on line banking facility may pay premium on line. The company site www.hdfcinsurance.com provides this facility to all policy holders.

Hari Om

Krishna Kumar Khandelwal

What may be the solution to be out of the clutches of 'inflation' ?

Dear Friends,

It is often forgotten that today we face a grave risk of out living our savings due to medical advancements and with knowledge about how to prolong life which though may not be very productive yet requires maintenance of high order. Therefore one of the big risk of all is shortfall risk.

In India too now people retiring at 60 face the serious prospect of spending two to three full decades in retirement.

That means investors using an overly conservative approach, investing in Gilt-edged securities, FDs and other money market instruments for earning safe interest, are often taking a big gamble with their portfolios and their retirement lifestyle needs than is generally realised. This is almost a sure thing to happen that you face the money crunch in late years when you consider that 'inflation' continuously eats into our savings worth.

What may be the solution to be out of the clutches of 'inflation' ? The solution in fact lies in building up your retirement provision through the use of 'Unit Linked Pension Plan' of a good reliable company which has past record of beating the benchmark indices on an ongoing basis and remain invested and keep contributing in the 'balanced fund' where there is about 50% equity flavour to be enjoyed. It is an established fact that no other investment beats the inflation as the equity portfolio in professional hands.

There is a further imperative that you have this plan early in age and contribute a sum of not less than 10% of your income or not less than 25% of your yearly savings, depending on what is the character of your income. If you still are without a 'Unit Linked Pension Plan' what ever your age at present please go for one immediately. The tax implications are benign under this plan hence your savings remain intact and are not eaten away by taxes. I have a further point to make and that is that you must compare fund management charge before choosing a company for this purpose. This charge applies to the whole corpus and year after year. I also have to tell you that 'HDFC SLIC' scores over the peers on both counts ie in respect of quality of fund management and the charges.

Please do give me an opportunity to explain any thing that remains unexplained to you by asking for it.

Hari Om

Krishna K Khandelwal

Case for investing in ULIPs

Friends,

The following what appeared recently in 'The Hindu' and represents excerpts of an interview of Mr. Suresh Parthasarathi of Bharati AXA Life and explains ULIPs in a good way:

" What differentiates ULIPs (Unit-linked insurance plans) from other market-linked savings schemes? Should you invest in them? In an e-mail interview with Business Line, Mr V. Srinivasan, CFO, Bharti AXA, makes a case for investing in ULIPs, highlighting their flexibility and tax efficiency as reasons that make them an attractive “wealth management- financial protection” solution. Excerpts from the interview:

Why should one invest in ULIPs?

Unit-linked plans (ULIPs) are a category of financial solutions that combine financial protection with market-led investment returns. Today, ULIPs have developed to becoming an able financial partner at important life stages of diverse customer segments.

ULIPs enable long-term wealth creation for a future need, such as children’s higher education, marriage and retirement, which is typically the foremost objective of any financial planning exercise. They offer long-term financial protection and scope for wealth creation and management in accordance with the customer’s risk appetite. Financial protection encourages the customer to confidently live a quality life, as it provides scope to protect his dependents financially should an eventuality arise. All this, while allowing for investment.

Again, doing a cost-return comparison between ULIPs on the one hand, and other market-linked saving instruments and separate financial protection on the other hand, ULIPs indicate a better performance than such instruments and standalone life insurance put together. Also, the cost of purchasing life protection separately through a term plan is more than the in-built mortality charge within ULIPs. The ULIP charge structure is comparable and at times, even competitive to other market-linked products over a term of over eight years.

Some ULIPs offer special loyalty additions over longer tenures, thus ensuring that the fund value grows at a pace faster than the returns generated, helping the customer beat the pressure of inflation.

In what way are ULIPs more flexible than other market-linked savings schemes?

ULIPs allow the flexibility of switching funds for a given number of switches every year for free. However, the customer bears the entry load (and even exit loads in some cases) for moving into a debt or equity fund from the other, in other forms of market-linked investments.

ULIPs also provide flexibility to decrease or increase protection over the term of the plan, as the protection needs of an average customer changes over his/her lifespan. Further, ULIPs offer the flexibility to add health insurance coverage by adding critical illness riders. Most ULIPs also offer customisation whereby the customer can enhance or reduce or even totally drop such additional insurance covers during the term of the product.

Flexibility in premium payment is another benefit provided by ULIPs. Most ULIPs provide options to increase or reduce premiums after three years. While stopping premium payment is not conducive to long-term wealth generation, ULIPs, with their low or nil surrender charges, are customer-friendly in that they allow withdrawal of fund value in emergencies. ULIPs also provide an option to “enhance” the kitty using top-ups that add to the existing fund value.
Such flexibility to add, reduce and shift funds within the same policy is unique to ULIPs.

ULIPs are as transparent as other market-led investments. Every time the customer chooses a ULIP, he/she is provided a sales benefit illustration that explains the premium utilisation and charges, year by year, for the term of the plan.

From a tax perspective, the premiums paid and the maturity proceeds from ULIPs are generally tax-free. However, the maturity proceeds from debt-oriented funds are classified as capital gains.

All these benefits rolled into one single product category is available only with ULIPs, making them an attractive ‘wealth management-financial protection’ solution.

Do you have any unique offerings within ULIPs?

AspireLife, our best-selling product, is the first-of-its-kind for the Indian life insurance industry.
It offers the customer a clear benefit that differentiates it from other products in this category — the first year premium is kept aside to provide the customer guaranteed special additions, up to 175 per cent of the first year premium, at maturity.

From the second year onwards, if the premium is Rs 50,000 or more, the premium allocation charges are waived i.e. 100 per cent of the premium is invested in the funds.

In addition, the product promotes long-term and systematic investments by offering term options of 15, 20 and 25 years.

What differentiates Bharti AXA Life from its competitors?

Bharti AXA Life benefits from the product strengths of its global parent. AXA has proven expertise in product design to suit diverse consumer segments. The company’s product blueprint serves as a ready reckoner for any of its markets to launch products to suit the local market condition.

For us, such expertise has offered our products not just quick time-to-market but also the opportunity to bring to the Indian customer the best of product benefits available in global markets. One key benefit is the long-term nature of our products, which offers scope for wealth creation while providing insurance protection over the term.

In addition, AXA believes in providing insurance solutions based on a thorough understanding of customer needs. The company follows a research-based approach to understand customer trends and protection and investment attitudes. The AXA Retirement Scope launched in 2004 evaluates retirement attitudes of people across the globe. This year, research was conducted in 26 countries, with India as a first-time participant.

Are your charges competitive to your peers?

The charge structure of every product is different and cannot be the only measure of product benefit to customers. It is important to evaluate the net return to customer in the light of total investments made. This can be ascertained by comparing the IRRs (Investment Rate of Returns). "

Krishna Kumar Khandelwal

Unit Linked Young Star Plan:An all aspected and friendly Plan from HDFC SLIC

I have been specially advocating unit linked plans for a variety of reasons.Two most important reasons are that unit linked plans are most cost effective,transparent and have capacity to grow your money faster.There are four such plans :

1)Unit Linked Endowment Plan

2)Unit Linked Pension Plan

3)Unit Linked Pension Plan (Single Premium)

4)Unit Linked Young Star Plan

I discuss below what each of the above is meant for:

1) Unit Linked Endowment Plan: This covers your life risk at up to 40 times of your chosen yearly premium. Like for example if you decide to opt for the premium payment of INR 10K per year(this is the minimum level) you may get the life risk cover of INR 4 lacs and also may get INR 4 lac of Accidental Risk Cover additionally.There is a further provision where you may take the rider of Health Insurance Cover and get INR 4 lac coverage for the health i.e. cover against six life threatening diseases.

Under the provisions of plan you are compulsorily required to pay premiums for the first three years.Beyond three years many more useful provisions unfold for the policy holder.You may then go for premium holiday and you policy continues.You may withdraw you money in one or more instalments including the growth subject to maintenance of balance equal to one years' premium in the policy fund.You would be able to top up extra monies from time to time.The choice of six fund for the investment is common to all plans and the special provision of allowing you to switch between the funds in any proportion for up to twenty four times in a single year free of cost , is a special benefit provided by HDFC SLIC.This enables you to stay in safe waters and still grow your money faster.You may refer to the enclosed sheets giving the actually achieved returns by the policy holders whom I have given Unit Linked policies since Feb '04. You may further see that the team managing your funds has beaten the bench mark index by over 10% each year since inception in respect of the growth fund.Not only this HDFC SLIC stands ahead of peers as per the study by the AMFI.The facility of nomination is common to all Unit Linked Plans.All the payments as premiums qualify for rebate under section 80 C.

2) Unit Linked Pension Plan: This plan does not provide the risk cover but the other features are common excepting that after three years you may not withdraw money in instalments but in case of need may get the whole sum without any deduction by surrendering the policy.The pension starts at the end of the policy term as per you instructions as there are four different ways that you may choose for getting the pension.This decision is not required to made now but at the time of commencement of pension payment. For getting this plan the medicals are not required.

3) Unit Linked Pension Plan ( Single Premium): It has all the feature given above except that this can be taken with Single Premium of INR 25 K or more and further premiums are not required to be paid. However, you may keep topping up extra money according to your need and availability of free cash for accumulation for pension needs.This is particularly useful for the people with erratic/uncertain income.

4) Unit Linked Young Star Plan: This is a plan which has all the features under the ULEP discussed in the first para.It is empowered with a special provision of payment of premiums for the full policy term by the company itself in case of an unfortunate event of demise of the policy holder as well as in case of his suffering from one of the six dreaded diseases(if health cover is also chosen).Thus there are payments by the company first at the time of the unfortunate happening equal to the sum assured and then second time when the plan matures equal to the money invested out of the premiums along with the growth ( this usually would be much more than the sum assured).This provision makes this plan particularly useful for people who have children of tender age and have in mind to take care of their welfare and have to make provision for their higher education or marriage.I have seen practically that those who opted this plan for their children's sake are having blissfully peaceful mind.It is not that what you save under this plan can not be used by you during the policy period.You as policy holder may withdraw money more than once after first three years have passed. You may like wise increase, decrease premium or go on premium holiday as is the case with ULEP.This is why I call this plan as the most useful single platform for money management,tax saving, provision for children and life/health risk management.

Coming to specific charges I would request you to refer to brochures of the company and also refer to the comparative study of charge structure of different leading companies offering Unit Linked Plans.I am sure you would have some further points to clarify,please do call me at 09376168780 and let me visit you personally to explain in light of your income pattern, family structure and your personal leanings and safety concerns.

Hari Om

Krishna Kumar Khandelwal