jai babay di 11

8/8/2019 jai babay di 11

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About IIFL

The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd(NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading playersin the Indian financial services space. IIFL offers advice and execution platform forthe entire range of financial services covering products ranging from Equities andderivatives, Commodities, Wealth management, Asset management, Insurance, Fixeddeposits, Loans, Investment Banking, GoI bonds and other small savingsinstruments. IIFL recently received an in-principle approval for Securities Tradingand Clearing memberships from Singapore Exchange (SGX) paving the way for IIFLto become the first Indian brokerage to get a membership of the SGX. IIFL alsoreceived membership of the Colombo Stock Exchange becoming the first foreignbroker to enter Sri Lanka. IIFL owns and manages the website,www.indiainfoline.com, which is one of Indias leading online destinations forpersonal finance, stock markets, economy and business. IIFL has been awarded theBest Broker, India by FinanceAsia and the Most improved brokerage, India in theAsiaMoney polls. India Infoline was also adjudged as Fastest Growing EquityBroking House - Large firms by Dun & Bradstreet. A forerunner in the field ofequity research, IIFLs research is acknowledged by none other than Forbes as Bestof the Web and a must read for investors in Asia. Our research is available notjust over the Internet but also on international wire services like Bloomberg,Thomson First Call and Internet Securities where it is amongst one of the most readIndian brokers.

A network of over 2,500 business locations spread over more than 500 cities and townsacross India facilitates the smooth acquisition and servicing of a large customer base.All our offices are connected with the corporate office in Mumbai with cutting edgenetworking technology. The group caters to a customer base of about a millioncustomers, over a variety of mediums viz. online, over the phone and at ourbranches.

IIFL/India Infoline refer to India Infoline Ltd and its subsidiaries/ group companies.


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History & Milestones

India info line was founded in 1995 by Mr. Nirmal Jain (Chairman and ManagingDirector) as an independent business research and information provider. It graduallyevolved into one-stop financial services solutions provider. it was originally incorporatedon October 18, 1995 as Probity Research and Services Private Limited at Mumbai underthe Companies Act, 1956 with Registration No. 11 93797. We commenced ouroperations as an independent provider of information, analysis and research coveringIndian businesses, financial markets and economy, to institutional Customers.It became a public limited company on April 28, 2000 and the name of the Company waschanged to Probity Research and Services Limited. The name of the Company waschanged to India Infoline.com Limited on May 23, 2000 and later to India InfolineLimited on March 23, 2001.


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Vision& Strategy of company


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Company Structure


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India Infoline Limited is listed on both the leading stock exchanges in India, viz. theStock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also amember of both the exchanges. It is engaged in the businesses of Equities broking,Wealth Advisory Services and Portfolio Management Services. It offers broking servicesin the Cash and Derivatives segments of the NSE as well as the Cash segment of the

BSE. It is registered with NSDL as well as CDSL as a depository participant, providing aone-stop solution for clients trading in the equities market. It has recently launched itsInvestment banking and Institutional Broking business.

India Infoline Media and Research Services Limited.

The content services represent a strong support that drives the broking, commodities, mutualfund and portfolio management services businesses. Revenue generation is through the sale ofcontent to financial and media houses, Indian as well as global.

It undertakes equities research which is acknowledged by none other than Forbes as 'Best of theWeb' and 'a must read for investors in Asia'. India Infoline's research is available not just overthe internet but also on international wire services like Bloomberg (Code: IILL), Thomson First

Call and Internet Securities where India Infoline is amongst the most read Indian brokers.

India Infoline Commodities Limited.

India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. Ourexperience in securities broking empowered us with the requisite skills and technologies to allow


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us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoymemberships with the MCX and NCDEX, two leading Indian commodities exchanges, andrecently acquired membership of DGCX. We have a multi-channel delivery model, making itamong the select few to offer online as well as offline trading facilities.

India Infoline Marketing & Services

India Infoline Marketing and Services Limited is the holding company of India InfolineInsurance Services Limited and India Infoline Insurance Brokers Limited.

(a) India Infoline Insurance Services Limited is a registered Corporate Agent with the InsuranceRegulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICIPrudential Life Insurance Co Limited, which is India's largest private Life Insurance Company.India Infoline was the first corporate agent to get licensed by IRDA in early 2001.

(b) India Infoline Insurance Brokers Limited is a newly formed subsidiary which will carry outthe business of Insurance broking. We have applied to IRDA for the insurance broking licenceand the clearance for the same is awaited. Post the grant of license, we propose to alsocommence the general insurance distribution business.

India Infoline Investment Services Limited

Consolidated shareholdings of all the subsidiary companies engaged in loans and financingactivities under one subsidiary. Recently, Orient Global, a Singapore-based investmentinstitution invested USD 76.7 million for a 22.5% stake in India Infoline Investment Services.This will help focused expansion and capital raising in the said subsidiaries for various lendingbusinesses like loans against securities, SME financing, distribution of retail loan products,consumer finance business and housing finance business. India Infoline Investment ServicesPrivate Limited consists of the following step-down subsidiaries.

(a) India Infoline Distribution Company Limited (distribution of retail loan products)

(b) Moneyline Credit Limited (consumer finance)

(c) India Infoline Housing Finance Limited (housing finance)

IIFL (Asia) Pte Limited

IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in Singapore topursue financial sector activities in other Asian markets. Further to obtaining the necessaryregulatory approvals, the company has been initially capitalized at 1 million Singapore dollars.

Management Team


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Corporate Governance


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Business Model


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Product and Services


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It is a one-stop financial services shop, most respected for quality of its advice,personalized service and cutting-edge technology.

Equities

IIFL is a member of BSE and NSE registered with NSDL and CDSL as a depositoryparticipant and provides broking services in the cash, derivatives and currency segments,online and offline. IIFL is a dominant player in the retail as well as institutional segmentsof the market. It recently became the first Indian broker to get a membership of theColombo Stock Exchange and is also the first Indian broker to have received an in-principle approval for membership of the Singapore Stock Exchange.

IIFLs Trader Terminal, its proprietary trading platform, is widely acknowledged as oneof the best available for retail investors. Investors opt for IIFL given its uniquecombination of superior Service, cutting-edge proprietary Technology, Advice poweredby world-acclaimed research and its unparalleled Reach owing to its over 2500 businesslocations across over 500 cities in India.IIFL received the BQ1 broker grading (highest grading) from CRISIL. The assignedgrading reflects an effective external interface, robust systems framework and strong riskmanagement. The grading also reflects IIFLs healthy regulatory compliance track recordand adequate credit risk profile.IIFLs analyst team won Zee Business Indias best market analysts awards 2009 forbeing the best in the Oil and Gas and Commodities sectors and a finalist in the Banking

and IT sectors.IIFL has rapidly emerged as one of the premier institutional equities houses in India witha team of over 25 research analysts, a full-fledged sales and trading team coupled with anexperienced investment banking team.The Institutional equities business conducted a very successful Enterprising India globalinvestors conference in Mumbai in March 2010, which was attended by funds withaggregate AUM over US$5 trillion and CEOs and other executives representingcorporates with a combined market capitalization of over US$500 billion. The DiscoverSri Lanka global investors conference, held in Colombo in July 2010, was attended bymore than 50 leading global and major local investors and 25 Sri Lankan corporates,along with senior Government officials..

Over the last five years, India Infoline sharpened its competitive edge through the

following initiatives:Multi-channel delivery model :

The Company is among the few financial intermediaries in India to offer a complementof online and offline broking. The Companies network of branches also allows customersto place orders on phone or visit our branches for trading.


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Integrated middle and back office :

The customer can trade on the BSE and NSE, in the cash as well as the derivativessegment all through the available multiple options of Internet, phone or branch presence.Multiple-trading options :

The Company harnessed technology to offer services at among the lowest rates in the

business.Membership:The Company widened client reach in trading on the domestic and internationalexchanges.Technology :

The Company provides a prudent mix of proprietary and outsourced technologies, whichfacilitate business growth without a corresponding increase in costs.Content :

The Company has leveraged its research capability to provide regular updates andinvestment picks across the short and long-term.Service :

Clients can access the customer service team through various media like toll-free lines,emails and Internet- messenger chat for instant query resolution. The Companiescustomer service executives proactively contact customers to inform them of key changesand initiatives taken by the Company. Business World rated the Companies customerservice as Best in their survey of online trading sites carried out in December 2003.Key features :

Membership on the Bombay Stock Exchange Limited and the National Stock Exchange .Registered with the NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market.Broking services in cash and derivative segments, online as well as offline.Presence across 350 cities and towns with a network of over 850 business locationsEquity client base of over 500,000 clientsProvision of free and world-class research to all clients.

Commodities


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India Infolines extension into commodities trading reconciles its strategic intent toemerge as a one stop solutions financial intermediary. Its experience in securities brokinghas empowered it with requisite skills and technologies. Increased offering: TheCompanies commodities business provides a contra-cyclical alternative to equities

broking. The Company was among the first to offer the facility of commodities trading inIndias young commodities market (the MCX commenced operations only in 2003).Average monthly turnover on the commodity exchanges increased from Rs. 0.34 bn toRs. 20.02 bn. The commodities market has several products with different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrationsin the business.India Infoline distinguished its business through the interplay of knowledge and

technology:

Complete solution :

The Company provides a complete - advice to execution solution facilitated byinformation and advice on likely commodity trends in the Indian and international

environment.

Technology :

The Company has extended the trading terminal to the investors home/workplacereinforced with real-time commodity information and ledger position.

Rates :

The Company harnessed technology to offer services at among the lowest rates in thebusiness. Membership: The Company widened client reach in trading on the domesticand international exchanges.

Key Features :

Enjoys memberships with the MCX and NCDEX, two leading Indian commoditiesexchanges.

Recently acquired membership of the DGCX.

Multi-channel delivery model, making it among the select few to offer online aswell as offline trading facilities.

Extended commodity trading to retail investors, among the few Indian financialintermediaries to do so.

Online business at 80% of revenues dominates commodities trading revenues

Provides regular commodity updates pertaining to the Indian and internationalenvironment

Insurance


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An entry into this segment helped complete the client's product basket; concurrently, itgraduated the Company into a one stop retail financial solutions provider. To ensuremaximum reach to customers across India, we have employed a multi pronged approach

and reach out to customers via our Network, Direct and Affiliate channels.Following the opening of the sector in 1999-2000, a number of private sector insuranceservice providers commenced operations aggressively and helped grow the market. TheCompanies entry into the insurance sector derisked the Company from a predominantdependence on broking and equity-linked revenues. The annuity based income generatedfrom insurance intermediation result in solid core revenues across the tenure of thepolicy.

Over the last five years, India Infoline sharpened its competitive edge in this

business segment through the following initiatives:

Client base :

Grew its 40,000 strong client base through knowledge-led analysis, translating intoan attractive opportunity to cross-sell products and generate referral business.

Distribution network :

Invested in a distribution network of 177 branches across 19 states, which provided it

with an unmatched reach within its segment.

Hands-on training :

Invested aggressively in training its field force more than 100 hours a year in productattributes across the insurance sector - highlighting various product details andmarketing skills apart from regular meets where best practices are shared.

Technology :

The Company provides a prudent mix of proprietary and outsourced technologies,which facilitate business growth without a corresponding increase in costs.

Research and advice :


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Provided clients with advice on diverse investment products based on the customersexisting and prospective financial profile.

Key features :

India Infoline was the first corporate in India to get the agency licence in early 2001.

The Company is the biggest corporate agency in India for life insurance products.

The Company operates multiple channels, namely branch network, preferred clientgroup, direct marketing, corporate tax advisory, walk-ins and seminars, to reach outto customers.


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Research

IIFL special research cell where some of India's finest financial analysts bring you

intensive research reports on how the stock market is faring, when is the right time

to invest, when to execute your order and more.

IIFL make sure that investors are always prepared to make own investment decisionwhen the opportunity arises.IIFL bring you intensive research reports - whether sectoral or company-wise or more -that tell you exactly when and where to invest. So whenever there is an excitinginvestment opportunity, you are in the know and always ready to invest. Research reports

IIFL will help you choose your investments wisely, without wasting time. Presented in alucid and easy-to-understand format; these reports help you make informed decisions.


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Get daily market updates and stock ideas on your mobile through SMS (5 messages

per day).

Real Time Trading Tips (Inclusive Intra-day, Delivery,Future & Option andBTST Tips)

Investment Ideas. Market Sensitive News. Global Market Updates (US, Asian, European), Crude Oil price. Support & Resistance Level for Nifty (Pre-market) Current level of NIFTY & SENSEX. Latest Company Results.


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Investment Banking

IIFLs investment banking division was launched in 2006. The business leverages uponits strength of research and placement capabilities of the institutional and retail salesteams. Our experienced investment banking team possesses the skill-set to manage allkinds of investment banking transactions. Our close interaction with investors as well as

corporates helps us understand and offer tailor-made solutions to fulfill requirements.The Company possesses strong placement capabilities across institutional, HNI and retailinvestors. This makes it possible for the team to place large issues with marqueeinvestors.In FY10, the team advised and managed more than 10 transactions including four IPOsand four Qualified Institutions Placements.


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Wealth Management Service

IIFL offers private wealth advisory services to high-net-worth individuals (HNI) and

corporate clients under the IIFL Private Wealth brand. IIFL Private Wealth is managedby a qualified team of MBAs from IIMs and premier institutes with relevant industryexperience. The team advises clients across asset classes like sovereign and quasi-sovereign debt, corporate and collateralised debt, direct equity, ETFs and mutual funds,third party PMS, derivative strategies, real estate and private equity. It has developedinnovative products structured on the fixed income side. It also has tied up withInteractive Brokers LLC to strengthen its execution platform and provide investors with aglobal investment platform.


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Credit and finance

IIFL offers a wide array of secured loan products. Currently, secured loans (mortgageloans, margin funding, loans against shares) comprise 94% of the loan book. TheCompany has discontinued its unsecured products. It has robust credit processes andcollections mechanism resulting in overall NPAs of less than 1%. The Company has

deployed proprietary loan-processing software to enable stringent credit checks whileensuring fast application processing. Recently the company has also launched Loansagainst Gold.


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Invest Online

India Infoline has made investing in Mutual funds and primary market so effortless.

All you have to do is register with us and thats all. No paperwork no queues

and No registration charges.

INVEST IN MF

Indiainfoline offers you a host of mutual fund choices under one roof, backed by in-depthresearch and advice from research house and tools configured as investor friendly.Investing in Mutual Funds has never been easier.

APPLY IN IPOs

You could also invest in Initial Public Offers (IPOs) online without going through thehassles of filling ANY application form/ paperwork.

Asset Management

India Infoline is a leading pan-India mutual fund distribution house associated withleading asset management companies. It operates primarily in the retail segmentleveraging its existing distribution network to reach prospective clients. It hasreceived the in-principle approval to set up a mutual fund. The group recentlycommenced its offshore asset management business under the IIFL Capital brand.Also, IIFL Securities Pte Ltd received approval from the Monetary Authority ofSingapore to carry out global asset management operations. The Singapore arm cannow offer broking, asset management and investment banking services. IIFL Increceived an FII license, thereby facilitating the investment of dedicated funds inIndia. With offices in New York, Singapore and Dubai, IIFL Capital aims to offerIndia-focused equity products, fund management and advisory services for offshoreand domestic wealth management customers.

Portfolio Management

You get recessions. You have stock market declines. If you don't understand that's going

to happen, then you're not ready; you won't do well in the markets. No need to worry. Weat India Infoline would take care of all issues related to managing your hard earnedmoney. Our Portfolio Management Service is a product wherein an equity investmentportfolio is created to suit the investment objectives of a client. We at India Infolineinvest your resources into stocks from different sectors, depending on your risk-returnprofile. This service is particularly advisable for investors who cannot afford to give timeor don't have that expertise for day-to-day management of their equity portfolio. It is allabout your money, being managed by the experts, while you continue with your routine


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life. Isn't it simple and totally hassle free. What's more, you can keep track of yourdividends / bonus / rights issues with paperless tracking. So you always know how fastyour investment is growing. It basically means assigning the right job to the right person.

Salient Features of India Infoline PMS:

Expert team of Research Analysts Stock Picking done by the Investment Committee Dedicated Relationship Manager Technology and Service driven Back-Office.

Newsletters

The Daily Market Strategy is your morning dose on the health of the markets. Five intra-day ideas, unless the markets are really choppy coupled with a brief on the global marketsand any other cues, which could impact the market. Occasionally an investment ideafrom the research team and a crisp round up of the previous day's top stories. That's notall. As a subscriber to the Daily Market Strategy, you even get research reports of IndiaInfoline research team on a priority basis.

The India Infoline Weekly Newsletter is your flashback for the week gone by. A weeklyoutlook coupled with the best of the web stories from India Infoline and links toimportant investment ideas, Leader Speak and features is delivered in your inbox everyFriday evening.


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ULIPs are a category of goal-based financial solutions that combine the safety ofinsurance protection with wealth creation opportunities. In ULIPs, a part of theinvestment goes towards providing you life cover. The residual portion is invested in afund which in turn invests in stocks or bonds. The value of investments alters with theperformance of the underlying fund opted by you.

Simply put, ULIPs are structured such that the protection element and the savingselement can be distinguished and hence managed according to your specific needs,offering unprecedented flexibility and transparency.


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It is critical that you understand how your money gets invested once you purchase ULIP.

Once you decide the amount of premium to be paid and the amount of life cover youwant, the insurer deducts some portion of the premium upfront. This portion is known asthe Premium Allocation charge and this varies from product to product. The rest of thepremium is invested in the fund or mixture of funds chosen by you. Mortality charges andadministration charges are thereafter deducted on a periodic (mostly monthly) basiswhereas the fund management charges are deducted on a daily basis

Since the fund of your choice has an underlying investment either in equity or debt or acombination of the two your fund value will reflect the performance of the underlyingasset classes. At the time of maturity of your plan, you are entitled to receive the fund

value as at the time of maturity. The pie-chart below illustrates the split of your ULIPpremium in a graphical format.

In addition to the investment fund ULIPs give you the benefit of insurance cover as well.The mortality charge mentioned above goes towards provision of this cover.

Over a period of time, the component of charges as a percentage of the premium paidtends to decrease. Which is why, you should continue paying your premiums regularly.That is the best way of making your ULIP deliver on its dual benefit of protection andwealth creation.


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One of the big advantages that a ULIP offers is that whatever be your specific financialobjective, chances are that there is a ULIP which is just right for you.The figure below

gives a general guide to the the different goals that people have at various age-groups andthus, various life-stages.

Depending on your specific life-stage and the corresponding goal, there is a ULIP which

can help you plan for it


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Retirement is the end of active employment and brings with it the cessation of regularincome. Today an increasing number of people have stated planning for their retirement

for below mentioned reasonsAlmost 96% of the working population has no formal provisions for retirementWith the growing nuclearisation of family structure, traditional support system of theyounger earning members is no longer availableDevelopments in the healthcare space has lead to an increase in life expectancyCost of living is increasing at an alarming rate.

Pension plans from insurance companiesensure that regular, disciplined savings in such plans can accumulate over a period oftime to provide a steady income post-retirement. Usually all retirement plans have twodistinctive phases.The accumulation phase when you are saving and investing during your earning years tobuild up a retirement corpusANDThe withdrawal phase when you actually reap the benefits of your investment as yourannuity payouts begin.In a typical pension plan you have the flexibility to make a lump sum payment or aregular contribution every year during your earning years. Your money is then invested infunds of your choice. You can opt to receive the annuity at any time after vesting age(age at which you become eligible for pension chosen by you at the inception of theplan).

Most of the Unit linked pension plans also come with a wide range of annuity optionswhich gives you choice in structuring the post-retirement benefit pay-outs. Also at thetime of vesting you can make a lump sum tax-exempted withdrawal of up to 33 per centof the accumulated corpus.

In a retirement plan, the earlier you begin the greater you gain post retirement due to thepower of compounding.

Let us take an example of Gaurav & Hari. Both of them want to retire at the age of 60.Gaurav starts investing Rs. 10,000 every year from the age of 25 till the time that he


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retires. In all, he would have invested Rs. 350,000. If his investments were to earn 7%return every year, at the time of his retirement, Gaurav will have a retirement corpus ofRs. 13, 82,368.

Now, Hari starts investing 10 years later (i.e. at the age of 35) and in order to make up for

the lost time, invests Rs.15,000 every year (which is 50% more than Gauravs annualinvestment). So, by the time of his retirement, he would have invested Rs. 3,75,000. Andassuming the same annual return of 7%, he will end up with a retirement corpus of Rs 9,48,735

So, you see how despite setting aside more than 50% of Gauravs annual contribution,Hari ends up with a retirement corpus which is almost a third lesser than Gauravs. Thatis the power of compounding.

Which is why, it is never too early to invest in a ULIP for retirement planning.


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ULIPs are the right insurance solutions for you if you are lookingfor a strong wealth creation proposition allied to a core insurance benefit. Such plans areideal for people who are in their late 20s and early 30s and by investing in such a plan getthe flexibility of using it to fund any of their long-term financial goals such as purchase

of a house or funding their childrens education. The added element of life cover servesto make these plans a wholesome financial investment option.

Wealth Creation ULIPs can be primarily classified as

Single premium - Regular premium plan : Depending upon you needs & premiumpaying capacity you can either opt for a single premium plan where you need to paypremium only once during the term of entire policy or regular premium plans where youcan premium at a frequency chosen by you depending upon your convenience

Guarantee plans Non guarantee plans: Today there are wealth creation ULIPS

which also offer guaranteed benefit. These plans are idealinsurance-cum-investment option for customers who want to enjoy the potentially higher returns (overthe long term) of a market linked instrument, but without taking any market risk. On theother hand non guarantee plans comes with an in - built range of fund options to choosefrom ranging from aggressive funds (Primarily invested in equities with the general aimof capital appreciation) to conservative funds (invested in cash, bank deposits and moneymarket instruments with aim of capital preservation) so that you can decide to invest yourmoney in line with your market outlook, time horizon and your investment preferencesand needs.Life Stage based Non life Stage based: Life Stage based Ulips factor in the fact thatyour priorities differ at different life stages & hence distribute your money across equity

& debt. Here the initial allocation is decided as per your age since age is a significantindicator of risk appetite. Such a strategy ensures that the asset allocation at all times is insync with your age and changing financial needs.
http://www.iciciprulife.com/public/Life-plans/Life-Insurance-Plans.htmhttp://www.iciciprulife.com/public/Life-plans/Life-Insurance-Plans.htmhttp://www.iciciprulife.com/public/Life-plans/Life-Insurance-Plans.htmhttp://www.iciciprulife.com/public/Life-plans/Life-Insurance-Plans.htmhttp://www.iciciprulife.com/public/Life-plans/Life-Insurance-Plans.htm


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One of the most important responsibilities you have as a parent is to ensure that yourchild gets the best possible education that can be provided. Apart from conventionalschooling, it becomes important to expose your child to different activities such as dance,painting and sports training for holistic development. As a parent, you want to ensure thattheir development is not hampered either due to rising costs or unforeseen circumstances.

Today there are ULIPs that offer money at key milestones of your child's education thusensuring that your childs education continues unhampered even if something unfortunatehappens to you. While, the death of a parent is an irreparable emotional loss, childeducation plans safeguard the child against the financial ramifications of the death of aparent.Apart from above mentioned benefit, child plans also offers below mentioned

features.


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When you are young and working you save for various goals likemarriage, education, retirement etc. but saving for health care is never considered or leftfor later. During these years we have various sources of income or savings on which wecan rely for health emergencies. But with increasing cost of healthcare, proportion of thisspend is increasing at an alarming pace. This is forcing families to borrow or sell assets tomeet expenses during medical emergencies. And during old age health care expensesincrease due to health deterioration because of age and higher incidence of chronicillness. Thus it is important for you to invest in health insurance today so that tomorrowyou are fully prepared to meet rising healthcare expenses, which would be incurredduring old age, with the right health insurance plan.

Health ULIP is a recent innovation from the health insurance industry. In a health ULIPpart of your premiums are allocated for investment designed specifically to build a healthfund to meet future health related expenses. It aims to create a health savings kitty byinvesting in a long term flexible savings plan with multiple fund options. The health fundthus created allows you to claim for health related expenses of any kind and also fundyour future health insurance charges. You can also avail of tax benefit on premium paidu/s 80D.


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Get the most out of your ULIP

Whether you are in the process of deciding which ULIP to invest in; or whether youalready have a unit linked insurance policy to secure your important financial goals thereare some key principles which should govern any decision related to ULIPs. Adhering tothese key principles will allow you to make optimum utilization of your ULIP.


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The ULIP edge

ULIPs are dynamic plans and are flexible by nature and hence allow for changes and high

degree of customization in the plan as opposed to most of the financial plans which oncepurchased cannot be modified. It is because of embedded characteristics of transparency,flexibility, liquidity & goal based savings that ULIPs have emerged as preferredinvestment option today.


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Flexibility to change your life cover: ULIPs give you the flexibility to choose your sumassured (insurance cover) at the time of policy inception. Moreover, some ULIPs allow

you to increase your sum assured over the term of the plan. This is crucial as yourprotection needs keep on changing with time .Typically, greater the financial liabilitiesyou have such as repayment of a home loan, greater will be your need for protection.

Flexibility to opt for a rider: ULIPs also enable you to customize the policy withoptional riders to enjoy additional protection. Riders are additional or supplementarybenefits that are bought along with the main insurance policy. Some of the commonlyoffered riders by most insurance companies are critical illness benefit rider, accident &disability benefit rider, waiver of premium rider etc. For ex. a critical illness rider covermajor critical illnesses like heart attack etc. In case of contracting any of the aboveillness, the insurance company pays the insured amount.Flexibility to choose your fund option: Most of the ULIPs come with an in - built rangeof fund options to choose from ranging from aggressive funds to conservative funds sothat you can decide to invest your money in line with your investment preferences andneeds. Whats more, ULIPs even come with the option of switching between differentfund options so that you are able to reap maximum benefits from your investments.


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One of the key advantages that ULIPs offer is complete transparency which makes theworking of a ULIP abundantly clear to the investor. Thus, you are empowered to make

informed decisions on how to best use your ULIP.

Benefit Illustration

As a customer it is your right to ask for a sales benefit illustration. Sales benefitillustration will help you understand how premium paid by you is utilized & what are thecharges deducted year by year, by the insurance company for the term of the plan . It willalso illustrate how your policy will grow in accordance with the choosen sum assured &premium. In fact IRDA has mandated that all insurance companies use two scenarioswith 6 % & 10 % return rate to depict future returns.

The table below is a sample benefit illustration which shows the premium amount, thevarious charges deducted and the corresponding fund value.

Policy Year 1 2 3 4 5

Age 30 31 32 33 34

Premium 20,000 20,000 20,000 20,000 20,000

Sum Assured 1,00,000 1,00,000 1,00,000 1,00,000 1,00,000

Premium allocation

charge3,400 1,800 200 200 200

Mortality Charges 141 123 94 58 16

Policy Admincharge

480 480 480 480 480

Total Charges 4012 2403 774 738 696

Fund Value 17,662 38,659 63,299 90,169 1,19,478

Surrender Value at

the end of the year- - 60,767 88,366 1,19,478

Death Benefits 1,00,000 1,00,000 1,00,000 1,00,000 1,19,478


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Brochures and key feature documents:

While benefit Illustrations play a significant role in explaining the quantitative aspects ofULIPs, it is also important for you to know the other features and benefits which theULIP offers. All insurance companies come out with brochures for prospective customers

to go through & understand the plan thoroughly. You should ask your insurance advisorto provide brochure of the ULIP you intend to purchase.

Once a policy gets issued, your insurer will send you a key feature document capturingall the essential features of the plan. This is to ensure complete comprehension of the planpurchased.

Free-look period

ULIPs also offer you a distinct feature that no other financial product offers as of now. Itis called Free-look period which is a 15 day window during which you can close the

policy & get paid back the entire premium less charge borne by company in issuing thepolicy in case you are unhappy with the product.

Net Asset Value

It is critical that you monitor the performance of your policy on a regular basis. This willhelp you ascertain whether you are on right financial track or not. To help you do so alllife insurance companies publish the NAV of different fund options on their website on adaily basis so that you can track the performance of your policy on a regular basis. Thiswill also help you make informed decisions when it comes to comparing fundperformances.


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Everyone needs to save for their important life goals. One of the prudent ways to do so isby investing in ULIPs which are long-term systematic investment options designed to

address key financial goals. ULIPs help you cultivate a disciplined savings pattern whichensures that the money being set aside will go towards the fulfillment of the specificobjective. In the absence of such a focused approach, there is a high possibility of savingstowards one objective getting utilized for an immediate short-term requirement, thusjeopardizing the long-term goal. ULIPs are a potent safeguard against such a tendency.


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The wide range of ULIPs available in the market might make it difficult for a consumerto choose the correct ULIP. However if you were to follow a few simple steps choosing

the right ULIP can be a smooth process.

Understand the concept of ULIPs thoroughlyDo your homework well and read as much as you can about ULIPs as you can beforeinvesting. Read the literature available on ULIPs on the web sites and brochurescirculated by insurance companies. This will help you know the benefits and structure ofthe ULIP.Focus on your requirements and risk profileIdentify a plan that is best suited for you keeping in mind your risk appetite. In case youhave a high-risk appetite, opt for a more aggressive fund option (an option that investshigher percentage in equities) and vice versa.

Understand the peculiarities of the planUnderstand all the charges levied on the product over its tenure, not just the initialcharges. A complete charge structure would include the initial charges, the fixedadministrative charges, fund management charges and mortality charges.

Examine the performance of the planCompare the performance of the plan with benchmark indices like BSE Sensex or Niftyin the past two or three years to get a better idea about the performance. Ensure that youcan easily get information about your NAV when you need it. Thoroughly understand theflexibility and redemption conditions of an ULIP.

Understand the charges levied on the productUnderstand all the charges levied on the product over its tenure, not just the initialcharges. A complete charge structure would include the initial charges, the fixedadministrative charges, the fund management charges and mortality charges. You notonly need to understand the charges in the first year but also through the term of thepolicy.

Compare ULIP products of different insurance companiesCompare products of different insurance companies in terms of premium payments, coststructure, performance of the scheme (equity as well as debt schemes), additionalfacilities such as top-up premium and free switch between different fund options,flexibility in terms of increasing or decreasing protection, reporting structure andflexibility in redemption.

Know about the CompanyLast but not least, insure with a brand you can trust to honor its commitment and servicein accordance to your requirements.


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MAJORLIFE INSURANCE COMPANIES WHICH ARE PROVIDING

ULIPS IN INDIA

Aviva Life Insurance

Bharti AXA Life Insurance

HDFC Standard Life Insurance

ICICI Prudential Life Insurance

ING Vysya Life Insurance

Kotak Mahindra Old Mutual Life Insurance

Life Insurance Corporation of India

Max New York Life

MetLife India Insurance

Reliance Life Insurance

Sahara India Life Insurance

SBI Life Insurance

TATA AIG Insurance


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IRDA's ULIP guidelines

The Insurance Regulatory and Development Authority (IRDA) recently introduced its

guidelines to govern unit-linked insurance policies (ULIPs). Till the privatization of the

insurance industry around the end of the century, only the Unit Trust of India (UTI) sold

unit-linked insurance plans, apart from the Dhanaraksha Plan of the LIC Mutual Fund.

Though unit-linked insurance schemes have proved to be very popular, there itre no

regulations and there itre complaints that some insurance companies itre taking unfair

advantage of this, selling ULIP policies that itre little more than thinly disguised mutual

funds. IRDA's new regulations are aimed at ensuring that the customer gets a fair deal, atenhancing transparency, providing a better understanding of the product design and

assuring a reasonable amount of insurance cover in ULIPs, consistent with the long-term

nature of life insurance products.

IRDA in its new guidelines on ULIPs

IT has increased the lock-in period for ULIPs from 3 to 5 years.

All ULIPs, except Pension and Annuity to have mortality and health cover.

New guidelines are effective from September 1.

Besides all Top Up Premiums to have insurance cover.

No partial withdrawals for ULIP Pension/Annuity products.

ULIP pension products must be converted into an annuity.

ULIP Pension/Annuity Products to offer guarantee of 4.5%/Year.

Insurers to distribute overall charges evenly during lock-in period.

Loan upto 40% of NAV can be sanctioned.

ULIP charge structure evened out over tenure of product

For policies < 10 yrs, 3% p.a can be levied as charges

For policies > 10 yrs, 2.25% can be levied as charges

Front loading of charges can be done only for first 4 years


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