Some points that are unique to this fund -
The Reliance SIP Insure facility is an add-on feature of life insurance cover under Group Term Insurance to individual investors opting for SIP in the designated schemes.
It helps to encourage individual investors to save & invest regularly through Systematic Investment Plan (SIP) and help achieve their financial objective without any hindrance.
- Reliance SIP Insure provides free life insurance cover to investors at no extra cost… Can you believe that!!
- In the unfortunate event of the demise of an investor during the tenure of the SIP, the insurance company will pay for the balance amount towards the remaining unpaid SIP installments.
- Thus, the nominee would be able to continue in the scheme without having to make any further contribution.. Investor’s long term financial planning and objective of investing through SIP could still be fulfilled as per the targeted time horizon, even if he/she dies prematurely.
1. Equities provide relatively better returns among all asset classes over a longer period of time.
2. The benefit of Systematic Investment Plan:
- Inculcates Savings Habit
- Rupee Cost Averaging & Eliminates the need to time the market
- Helps to complete the planned investments
- Maturity Proceeds at NAV based prices
- Wide choice of eligible schemes
- Auto Debit from 4 banks namely ICICI bank, HDFC bank, AXIS bank & HSBC
- Minimum Investment per installment: Rs.2000 per month & in multiples of Re 1 thereafter. There is no upper limit
- Minimum Period of Contribution: 3 years and in multiples of 1 year thereafter.
- Maximum Period of Contribution: 15 years OR till attaining 55 years of age, whichever is earlier (e.g., a person can register an SIP of maximum 10 yrs at the age of 45 yrs.) The insurance cover ceases when the investor attains 55 years of age.
- Mode of payment of SIP installments is only through Direct Debit & ECS ( Post Dated Cheques shall not be accepted )
- An amount equivalent to the aggregate balance of unpaid SIP installments, subject to a maximum of Rs.10 lakhs per investor across all schemes / plans and folios will be invested in the Nominee’s* account.
- This amount will be invested in the same scheme/s (under which the deceased investor has enrolled for SIP) at the applicable price based on the closing NAV on the date on which the cheque for insurance claim settlement is received by the AMC from the insurance company, subject to completion of requisite procedure for transmission of units in favour of the nominee*.
The table shows the SIP amount required to be invested per month for achieving the target amount in the specified time period. The hypothetical rate of return on the investments is assumed at 10% p.a.
For example: One has to do an SIP of Rs 2,400 p.m for a period of 15 years to create wealth of Rs 10 lacs.
Now, isin't that a great Mutual Fund!! let me know your thoughts on this one.
7 comments:
this seems interesting let me check this option.
Thx for the review!!
yes its really good option and you can look into my blog where I have given AMFI exam tips and chapters for free download
http://knowinfonow.blogspot.com/
Listed below are reasons why you should not invest in Reliance SIP+Insure.
7 Reasons for not investing in Reliance SIP+Insure Plan.
1] The type of Insurance is Group Insurance Policy. The cheapest and easiest form of insurance policy available with any insurance company.
2] Only the 1st Holder is insured. So, in case, a couple subscribes to SIP +Insure then only one person can avail of the insurance benefits.
3] The Sum Assured, in case of death is not paid to the nominee, but shall go back to the scheme of the AMC(Reliance Asset Management Company). Remember, the scheme benfits more than the dependents of the deceased in case of death of the holder.
4] Huge exit load of 2% for discontinued SIP. If you agree to pay your SIP for 11 yrs but pay only for 10 long and tiring yrs, still the scheme charges you 2% for the remaining 1 yr which you do not wish to continue.
5] No insurance upto 90 days (exception to it is accident cases only) , i.e 3 months. In case of death within 3 months, except of accidental deaths, the scheme shall not pay the dependents a penny.
6] The dependents will end up paying the scheme 2% back if the death occurs within 3 months due to reasons other than accidental death.
7] Minimum period of investment is 3 yrs and Rs 2,000 for each installment, i.e totalling to Rs 36,000 for Group insurance worth less than 10 lacs.
There are group insurance polices availables at a very low costs, which can be availed of for insurance requirements. Insurance worth of Rs 10 lacs may or may not be sufficient for your entire family’s needs.
The Exit loads are relatively very high even if investor is paying his SIP for a long period, if he discontinues even 1 day prior, he ends up paying 2% Exit loads.
http://indian-mutual-funds.blogspot.com
Think about It and Decide.
thanks for visiting my blog.. ;)
-invest public mutual -
http://investpublicmutual.blogspot.com
thanks for visiting my blog.. ;)
-invest public mutual -
http://investpublicmutual.blogspot.com
Just because Insurance is being given, does not mean you should invest in it.
All Reliance Funds have been laggard for the past few months. I would rather prefer DWS Tax saving Fund which too offers Free life Insurance without the accompanying conditions. Visit my blog
http://goodfundsadvisor.blogspot.com
for more
Reliance mutual fund is good you should go for it.
for more insuranceguru.info contact insuranceguru
Post a Comment