The idea of getting the benefits of both mutual fund and insurance in one product interested almost everyone and in no time AMCs introduced SIP with insurance. DSIJ explains what is SIP with insurance and is it worth investing in?
People have still not got over the reintroduction of LTCG (Long Term Capital Gains) tax on equity and equity-oriented mutual funds. ULIPs (Unit Linked Insurance Plans), which were spared from any tax, are being sold by insurance companies and agents, which highlights the tax benefits of ULIPs over mutual funds. However, there are some AMCs (Asset Management Companies) that have started giving term insurance cover on select mutual funds. The cover is directly proportional to the monthly SIP investments made by the investor. This insurance cover is technically free. You do not have to pay any additional premium to avail this facility. The premium for such insurance cover is funded by AMCs. Let us dive deep to understand the product and whether or not you should opt for such product.
What does SIP with insurance cover mean?
Some of the AMCs have started providing term life insurance cover to investors who are investing through SIPs. They do come with certain terms and conditions, such as the insurance being a group insurance cover and not an individual cover and the tenure of the SIP must be at least 36 months and it is only available on investment in select mutual funds. The cover starts after a waiting period of 45 days, except for accidental death. There is also age criteria applicable to this feature. Investors who are aged above 18 years, but not more than 51 years at the time of first investment would be eligible for the insurance cover. Once the investor attains the the maximum age as prescribed by the fund house, the cover automatically ceases to exist.
How does it work?
Diese Geschichte stammt aus der January 21, 2019-Ausgabe von Dalal Street Investment Journal.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der January 21, 2019-Ausgabe von Dalal Street Investment Journal.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
