ULIPs are clear winners

Dear Policy Holders,

I do hope you have been continuously enjoying the benefits bestowed by the ULIPs you hold. I advise you to keep parking your savings in ULIPs you possess, as top-ups, as it would be at minimal cost and deliver all benefits due under a policy besides maintaining your short-term liquidity. The growth/gains will not be taxed even when you withdraw your gains.

For your information, the Renewal Premium under ULIPs for 6 months ended 30 Sept 09 have equaled Rs 25433 crs (up 34%) while the non-linked products have equaled Rs 36996 crs (up 10.2%). It is clear that ULIPs are finding favour with the public and rightly so because in non-linked products you lose a lot of you premium by way of higher commission paid to advisors which is normally 5% for renewal premium under such policies. The ULIP renewal or top-up attracts only 1% commission payable to advisors.

This apart, the companies have a larger share of earnings as their profit and distribute less in case of traditional non-linked policies. In case of ULIPs, they get only the fund management charge which is fixed and is low. In this light, the ULIPs are clear winners and are the exclusive platform for saving on payable taxes on returns/gains/growth.

Krishna Kumar Khandelwal

Fund Switching Advice as on 3 Nov 2009

Dear Policy Holders,

I am addressing you once again about 'Fund Switch Advice' after 12 Sep 09.
Today has been a day of big fall on global cues. The Indian Inc has performed alright in the quarter ended Sep 09 and hence when the Nifty closed at around 4550, it is time that you exercise you switching option in the following manner:

- the aggressive investors should switch in to 'Growth Fund' entirely and patiently wait for further advice.

- the moderate investors should be switching in to 'Balance Fund' entirely.

- the moderate investor should be switching in to 'Defensive Fund' entirely.

You are aware that HDFCSLIC allows you to switch 24 times in a year, without charges. This is a great advantage, also no taxes are involved if you book profit under the exercise.

If any of you has any point to clarify, I am available at Mobile nos. +919724313034/++919376168780. My mail address is khandelwal.kkinsurance@gmail.com. Your queries are always welcome.

With best wishes,

Krishnakumar Khandelwal

P.S. You have a facility of topping up funds on your existing policy and your investment to the extent of 99% goes direct into investment in your desired fund. You must use this facility to the fullest extent. The withdrawals are permitted and hence your liquidity remains intact. Your topped up amount will qualify for rebate under section 80C.

If you have PPF account than please pay in minimum amount there to keep the account current. You should be aware that the fund grow faster in ULIPs you already have.

Some of you may have larger amounts to invest. You may write to me and I will suggest a ULIP meeting your precise requirements and at minimal cost.

Happy Diwali

Dear Policy Holders,

Wish you all Happy Diwali and a rewarding new year like the past one. All of you must have been pleased to see your fund grow back to level which is best in the whole time since the policy inception.

Who have paid premiums regularly in past twelve months have had more to gain. The once who have actively switched funds have yet more to be pleased about. Now it is an established fact that the ULIPs are the best, in good times or bad. The proof is before you, the worst period in time (for the investors) has been seen and there has not been any damage rather there have been gains.

I once again tell you that the policy you have can absorb more by way of contribution, most of you can access your funds for your needs, in full as well in parts, the amounts paid as premium qualify for tax saving and what is most of all benefits is that the gains remain tax free and would remain tax free even when withdrawn.

So what are you waiting for, you must put all your savings in to the policy as top-up premium, leave it there for as long as you don't need funds and take out when you need it. Does it not defeat the Fix Deposit option in terms of convenience of liquidity without cost and does it not beat it also for attracting no tax while interest on FDs will be subjected to TDS.

Further more, you have also what a Mutual Fund offers but at lower to nil cost and have ultimate flexibility and freedom of switching. You can see your policy detail on line and do switching on line (just obtain the client I'd and pass word). You may contact me for any further guidance at khandelwal.kkinsurance@gmail.com or phone up at +91972431304.

The SIP (systematic investment plan) is so much talked about but you must know that this is inherent in ULIPs. I would appreciate if you discuss your financial goals and what plans you have. I think I would be able to give you some useful guidance about how you can plug leakages and grow money fast, how you would have necessary cover and have tax savings.

Wish you all best once again for Happy Diwali

Krishna Kumar Khandelwal