Monday, July 9, 2007

Private insurers` ULIPs beat Sensex in returns

Unit-linked insurance plans (ULIPs) of private life insurers have outperformed the Sensex over the last six months and three months.

While the 30-share benchmark index of Bombay Stock Exchange has gained only 5.24 per cent during December-May, the ULIPs of most private insurers have gained in the range of 6-17 per cent.

Tata AIG Life Insurance’s equity fund led the pack, providing absolute returns of 15.99 per cent in the last six months, followed by Bharti Axa Life Insurance’s Grow Money with 14.69 per cent returns.

Sensex was at 14,411.38 on May 29, at 14,092.9 on January 30 and 13,693.31 on November 30. Two more funds from Tata AIG have made it to the top five, namely Aggressive Growth (12.13 per cent) and Growth Fund (11.84%). The other entrant in the top five is Max New York Life Insurance’s Growth scheme with 10.47 per cent returns.

The data on absolute returns, compiled by India Insurance Research & Consultants, was calculated by considering the net asset value on the last day of May, February and November, 2006.

The ULIPs have gained popularity in the last few years, primarily because of their simplicity and transparency. The tax saving aspect has also added more value to these products.

During Mar-May, while the Sensex gained 2.25%, Tata AIG’s Equity Fund gave a return of 16.74 per cent, followed by Reliance Life Insurance’s Equity scheme with 15.18 per cent and Kotak Mahindra Old Mutual Life Insurance’s Aggressive Growth scheme, which reported 14.77 per cent returns.

Bajaj Allianz Life Insurance’s Equity Index II (14.09 per cent) and MetLife India Insurance’s Multiplier (13.37 per cent) have also made it to the top five during Mar-May.

Source: Business Standard

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