Aviva Life Insurance launches new unit-linked funds
By Our Banking Bureau | 24 Jan 2004
Aviva claims to have delivered consistent and market leading returns since its launch in June 2002. The Balanced Fund from Aviva Life Insurance delivered a return of 52 per cent in the past 12 months and a CAGR of 40.3 per cent since launch. With an excellent fund performance Aviva has decided to offer a wider array of investment options to its customers.
Speaking on the occasion, Mr Stuart Purdy, managing director, Aviva Life Insurance said, "Globally Aviva is regarded as a prudent manager of people's funds. In a short span of time we have been able to build such a reputation in India too. We are one of the few to have built a specialised fund management operation in a life insurance company in India. With our unit linked products consistently outperforming the benchmark indices we have decided to further expand our portfolio of fund options to provide flexibility to our customers."
The three fund options include:
Secure Fund
The investment objective of this fund is to provide a progressive return on investments with a capital guarantee on maturity. The fund comprises debt securities in the range of 50-100 per cent equities in the range of 0-20 per cent and money market and cash in the range of 0-20 per cent. Initially the equity exposure will be 10 per cent.
Growth Fund
The investment objective of this fund is to provide high capital growth by investing higher element of assets in the equity market. The fund will comprise debt securities in the range of 0-50 per cent equities in the range of 0-85 per cent and money market and cash in the range of 0-20 per cent. Initially, the equity exposure will be 75 percent.
Balance Fund
The investment objective of this fund is to provide capital growth by availing opportunities in debt and equity markets and providing a sound balance between risk and return. The fund comprises debt securities in the range of 50-90 per cent equities in the range of 0-45 per cent and money market and cash in the range of 0-10 per cent.
This is Aviva's flagship fund with the current asset mix on December 31, 2003, being: equities 42.67 percent government securities 52.89 percent and cash and money market 4.44 percent.
Aviva is introducing these funds through a new product, LifeBond 5. It is a fixed term unitised savings and investment plan. LifeBond 5 has a policy term of 10 to 50 years. The Sum Assured is five times the annual premium. The product provides tax benefits on the premium while the policy proceeds are tax-free. It offers three unit-linked investment funds: Secure, Growth and Balance Fund with the flexibility of switching from one fund to the other. The Secure Fund provides a minimum guarantee of return on premium at maturity, irrespective of the fund's performance, while yielding higher benefits.
