Deutsche Mutual Fund-DWS has launched its first mid-cap oriented scheme in a market where investors are flooded with so many choices
There are as many as 55 mid-cap oriented mutual fund schemes, excluding close-ended schemes, which are available for investment. With most small and mid-cap schemes delivering double-digit returns in excess of 75% over the past year, fund houses seem to be using this opportunity to attract investors. Deutsche Mutual Fund too has joined the league of mutual funds that offer a mid-cap oriented scheme. The fund house recently launched a three-year close-ended scheme— DWS Mid Cap Fund. With a high allocation to mid-cap stocks, investors should be aware of the risks associated with the scheme, especially since it is a close-ended scheme with no prior track record.
The scheme will invest 70%-100% of its investments in mid-cap companies. Up to 90% of the portfolio will be invested in non mid-cap companies. According to the offer document of the scheme, mid-cap companies are companies are defined as those “with a market-cap within the market-cap range of the companies in the CNX Mid Cap Index.” The performance of the scheme will be benchmarked to the CNX Mid Cap Index.
Akash Singhania will be the fund manager for equity investments. He has around 10 years experience. Rakesh Suri will be the co-fund manager. He has an experience of 16 years.
Modi has impressed me so far with his willingness to shake up the bureaucratic inertia inside of India, however it is a long-term project and we will have to see how successful he is, the US President says
US President Barack Obama Thursday praised Prime Minister Narendra Modi's efforts to shake up the 'bureaucratic inertia' in India, less than a month after he described the Indian leader as a 'man of action'.
However, Obama said that this was a long-term project and one would have to see how successful Prime Minister Modi is in his efforts.
"Modi has impressed me so far with his willingness to shake up the bureaucratic inertia inside of India. But that is a long-term project and we'll have to see how successful he is," Obama told a business roundtable, which was attended by top corporate leaders of the country.
The roundtable was organised to discuss the current economic condition of the US and across the globe.
Last month in Myanmar on the sidelines of the East Asia Summit, Obama in his brief interaction with Modi had told him that he is a 'man of action'.
On his return from the 10-day trip to the Asia Pacific region that took him to Beijing, Myanmar and Australia, Obama announced that he has accepted an invitation to be the chief guest at the annual Republic Day Parade in New Delhi on 26th January next year.
In his interaction at the business round table, Obama said the US, over the last six years, has put more people back to work than Europe, Japan, and the rest of the advanced world combined.
The growth of emerging markets has been slower than anticipated, he noted.
Newspapers have claimed that New India Assurance's newly launched top-up policy is the cheapest. These articles assert that you can even do cosmetic surgery and claim the amount over the deductible, for expenses covered by mediclaim. Here is the truth
New India Assurance (NIA) has launched a top-up plan, which is being hailed by few newspapers like the Times of India (ToI) and Economic Times (ET) as the cheapest product available. This is incorrect. The NIA top-up plan is not the cheapest and it is more expensive than super top-up products which are a better option.
The ToI article states - A unique aspect of NIA's cover is that for the threshold limit to be reached, all hospitalization expenses are taken into account irrespective of whether the expenses would qualify as an insurance claim. This means that the insured can spend Rs5 lakh on a cosmetic surgery (which is not covered under mediclaim) and recover any additional health expense (covered under mediclaim) under the top-up plan. This is absolutely incorrect information. Moneylife wrote about the discrepancies to New India Assurance, but there was no response till the writing of this article. In fact, there is no health insurance product that covers cosmetic surgery.
NIA top-up has deductible of Rs5 lakh and Rs8 lakh. It is a high deductible plan. There are top-up/super top-up products available in the market with deductible from Rs2 lakh onwards. The lower the threshold deductible, the higher are the chances of being able to file a claim and benefit from the policy. With NIA top-up limiting the deductible to be a high amount of Rs5 lakh and Rs8 lakh, the product has limited flexibility.
The premium for a 41 year old person buying NIA top-up with deductible of Rs5 lakh and coverage of Rs5 lakh, will be Rs1800 + tax, which is Rs2022. United India's top-up for the same deductible and coverage will have a premium of Rs1910. Apollo Optima Plus is a top-up plan with a premium of Rs1348 for the same parameters. It is obvious that the NIA top-up plan is not the cheapest, as claimed by leading media publications.
L&T my: health Medisure Super Top Up and United India’s Super Top-Up are the only standalone super top-up policies available in the market as of now. The premium for L&T super top-up plan is Rs1112 for the same parameters and United India's super top-up is Rs2135. It means L&T super top-up is cheaper than NIA top-up and United India super top-up costs a little more premium. Moreover, you should prefer super top-up products over top-ups as these offer better benefits.
The difference between super top-up and top-up is that in the case of a top-up policy, the expenses for a single treatment should be over the threshold, whereas in a super top-up the total expenses in a year must be above the threshold level for the policy to be useful. Thus, between a top-up and super top-up, the latter is more beneficial for customers. Examples of top-up products that you should avoid are - United India Insurance (Top-up medicare), Bajaj Allianz (Extra Care), Apollo Munich (Optima Plus), ICICI Lombard (Health Care Plus) and Star Health (Super Surplus). You can add NIA top-up plan to this list of products to avoid.
NIA's policy wording clearly states –
The following Hospitalisation expenses incurred in respect of all the Insured members shall be considered for determining the Threshold under the Policy:
• The admission in the Hospital should have happened during the policy period.
• The Insured should have been admitted as an inpatient (outpatient treatments are not to be considered).
• The Hospitalisation should be for an Injury or Illness.
• Pre–Hospitalisation and Post–Hospitalisation expenses will not be considered.
The exclusions section specifies following non-covered procedures - Circumcision, cosmetic or aesthetic treatment, plastic surgery unless required to treat Injury or Illness.
If the policy clearly states that deductible threshold will only considered hospitalisation for injury or illness and exclusions specifies cosmetic surgery as non-covered, then how can TOI and ET media get it wrong?