A policyholder may choose to invest in any one or more of the four funds: Conservative, Balanced, Growth or Bond Fund in a given proportion chosen by them. At a later date, the policyholder can amend this proportion.
The investment mix of these funds is as follows:
|Asset Type||Conservative Fund (%)||Bond Fund (%)||Balanced Fund (%)||Growth Fund|
|Risk Factors||Low Risk||Low Risk||Medium Risk||High Risk|
|Money Market Instrument/Cash||0-20||0-40||0-20||0-20|
The Company may add, amend, alter, combine or close a fund or funds as per the File & Use procedure of the IRDAI. Policyholders will be informed at least 60 days before such action and policyholder will be allowed to transfer their fund to alternative funds free of any charge provided their request is received by the Company before the schedule date of such amendment, alteration or the closure. In case policyholder does not respond within the given time period of 60 days, the company shall transfer the existing funds to the "least risky" of the available funds. "Least risky" refers to the fund with the highest proportion of Government securities.
The investment objective of these funds is as follows:
Conservative Fund (SFIN: ULGF00317/04/06GRATCONSER104): The investment objective of the Conservative Fund is to invest mainly in low risk assets for e.g. Government Securities and Corporate Bonds. The fund will not invest in equities.
Bond Fund (SFIN: ULGF00707/02/13GRATPLBOND104): The investment objective of the Bond Fund is to generate higher returns in fixed income space (no exposure in equities) by a dynamic mix of investments in Government Securities and Corporate Bonds with liquidity support from a proportion invested in money market instruments. Risk-reward trade-off between government securities and corporate bonds shall be the guiding factor to decide on the mix of the two investment classes.
Balanced Fund (SFIN: ULGF00217/04/06GRATBALANC104): The investment objective of the Balanced Fund is to have a mix of Government Securities, Corporate Bonds, Equities and Money Market instruments so that the risk-return profile of the fund is balanced.
Growth Fund(SFIN:ULGF00117/04/06GRATGROWTH104): The investment objective of the Growth Fund is to have a mix of Government Securities, Corporate Bonds, Equities and Money Market instruments with relatively higher exposure in equities in the expectation of higher returns from this fund.