HDFC Invest Wise: One more ULIP

With the market already full of ULIPS that inflicted losses on the savers, here’s another product that joins the category. Will it be any better than the existing ones?

HDFC Life Insurance has launched a single premium ULIP (unit linked insurance product) plan named “Invest Wise”, which is an investment product aimed at saving for long-term goals, such as for children’s education and marriage or else investors’ own retirement planning. Targeted towards its so called “Wisdom Investor” segment, the plan is meant for the age group of 45 to 70 years with a fixed term of 15 years and offers a five-fund option for investment. The settlement options include withdrawal of funds in various patterns included the one for five years. The sum assured is fixed at 1.1 times the premium. There is no cap on the premium.


Since the sum assured is low, more of the premium money would be directed towards investment, which means more returns at withdrawal or maturity. Also, since the term is fixed, investors should be able to align the plan to the life goals they wish to fulfil through it.


In case death happens before 60, the sum assured minus withdrawals made in two years proceeding the year of death or the fund value, whichever is higher, would be paid. However, in case of death after 60, all withdrawals will be deducted from the sum assured for comparison with the fund value.


Many such plans exist in the market, the only minor difference being that this plan would invest in more market-oriented instruments compared to the other child or retirement ULIPS. In other words, this seems to be a me-too product with little difference. The bigger issue is that we are never sure how the corpus would grow over time.



Madhusudan Thakkar

4 years ago

How can IRDA pass such inferior, deficient, flawed, faulty, defective, substandard, imperfect & abysmal product?On the one hand IRDA chief is singing about adequate "Insurance" component. Why IRDA has closed its eyes in above?Since this plan does not offer 10 times of life cover there is no question of tax benefits also.


4 years ago

I invested in same kind of unit linked plan 2 yrs back named HDFC sl crest highest investment guarantee fund , which is giving guarantee for Rs.15, my average investment ratio for 2 yrs around Rs.9.5, ie 7.5% p.a return on the policy maturity, I invested when benchmark nifty around 5400, Nifty went upto 5620 but the fund is not even crossed Rs.10 and include all other charges like FMC ,Mortality, etc., nothing the investor will get at the end. moral of the story: Use the product for the purpose they developed, Insurance is for security to life and majorly not for wealth

CAG refuses to join public debate on coal issue

In a statement, the Comptroller and Auditor General said it has been getting repeated calls from the media for reactions, but CAG Vinod Rai feels that it would be improper on his part to join a public debate on this issue

New Delhi: The Comptroller and Auditor General (CAG) on Tuesday declined to join a public debate on the controversies over its findings on the coal blocks allocation which have come under attack from Prime Minister, the Congress party and critics, reports PTI.
"Being a Constitutional authority, the C&AG (Vinod Rai) feels that it would be improper on his part to join a public debate on this issue. It is hereby stated that the organisation of C&AG would clarify on the report at the appropriate forum when required," an official statement from the CAG office said.
The statement said the CAG office has been getting repeated calls from the media for reactions to the news stories on the allocation of coal blocks and augmentation of coal production presented in Parliament on 17th August and subsequent clarifications in this regard.
Yesterday in Parliament, Prime Minister Manmohan Singh questioned the CAG findings on coal blocks allocation describing them as "disputable and flawed".
"The policy of allocation of coal blocks to private parties, which the CAG has criticised, was not not a new policy introduced by the UPA. The policy has existed since 1993 and previous government also allocated coal blocks in precisely the manner that the CAG has now criticised," he had said.
In a 32-point rebuttal of the CAG findings on the coal blocks allocations Singh said "the observations of the CAG are clearly disputable."


Parliament fails to transact business for sixth day

Both the Lok Sabha and the Rajya Sabha witnessed scenes of the last five days, with BJP members starting slogan shouting as soon as the Houses met, leading to adjournments

New Delhi: The Indian Parliament failed to transact any business for the sixth straight day today as  Bharatiya Janata Party (BJP) continued to create ruckus by pressing its demand for resignation of Prime Minister Manmohan Singh even as other Opposition parties wanted to take up debate on Comptroller and Auditor General (CAG) report and other business, reports PTI.


With BJP being adamant on disrupting Parliament, Congress President Sonia Gandhi went into a combative mode as she told the party MPs to take on the main Opposition "aggressively" and herself led them in the Lok Sabha in doing so.


Both the Lok Sabha and the Rajya Sabha witnessed scenes of the last five days, with BJP members starting slogan shouting as soon as the Houses met, leading to adjournments.


In the Lok Sabha, BJP members trooped into the Well, chanting slogans against the government and demanding resignation of the Prime Minister over the CAG report on coal block allocation.


However, their colleagues from NDA allies Shiv Sena, JD-U and Akali Dal did not join them in the Well but raised slogans from their seats.


Displaying determination to aggressively take on BJP, Gandhi led from the front by egging on her members to counter opposition's sloganeering on coal allocation issue.


Earlier in the morning, she had told a meeting of party MPs not to be deflected by the "intemperate Congress bashing" by the opposition and hit back.


Even before the Question Hour began, she was seen engaged in an animated conversation with leaders of key UPA allies -- NCP chief Sharad Pawar and NC head Farooq Abdullah.


Then, she walked up to Samajwadi Party supremo Mulayam Singh Yadav's seat and sat with him for a chat. She wished Yadav with a "namaste" and left with a "shukriya" (thank you).


Gandhi's pro-activeness was visible later when the Lok Sabha met again at noon after the Question Hour was adjourned.


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