Fund Options

The policy offers four fund options namely

 

Fund Option Segregated Fund Identification number (SFIN)
Group Balanced Fund 4 ULGF02105/06/13GBALANCE04121
Group Equity Fund 4 ULGF02205/06/13GEQUITYF04121
Group Corporate Bond Fund 3 ULGF02305/06/13GCORBOND03121
Group Money Market Fund 2 ULGF00930/09/08GMONMRKT02121

 

The asset allocation investment policy and Segregated Fund Identification Number are given below:

 

Fund Name Investment Objectives Asset Category Asset Allocation Range (%) Target (%)
Group Balanced Fund 4 (SFIN: ULGF02105/06/13GBALANCE04121) The investment objective of the fund is to provide investment returns that exceed the rate of inflation in the long term while maintaining a low probability of negative returns in the short term. The risk appetite is defined as 'low to moderate'. Money market instruments incl. liquid mutual funds and bank deposits 0 - 10 0
Debt Securities such as gilts, corporate debt excluding Money market instruments 0 - 85 80
Equities 0 - 25 20
Group Equity Fund 4 (SFIN: ULGF02205/06/13GEQUITYF04121) Provide high real rate of return in the long term through high exposure to equity investments, while recognizing that there is significant probability of negative returns in the short term. The risk appetite is 'high' Corporate bonds and other debt instruments/ Bank deposits/ Money market instruments. 0 - 10 0
Equities 0 - 100 100
Group Corporate Bond Fund 3 (SFIN: ULGF02305/06/13GCORBOND03121) Provide returns that exceed the inflation rate, while taking some credit risk (through investments in corporate debt instruments) and maintaining a moderate probability of negative return in the short term. The risk appetite is 'low to moderate' Money market instruments incl. liquid mutual funds and bank deposits 0 - 10 0
Corporate bonds/ debentures and other debt instruments excluding money market instruments 0-100 100
Group Money Market Fund 2 (SFIN: ULGF00930/09/08GMONMRKT02121) Maintain the capital value of all contributions (net of charges) and all interest additions, at all times. The risk appetite is 'low'. Money market instruments incl. liquid mutual funds and bank deposits 100 100

 

Within a fund, if the target investment in one asset class is less than 100%, the remaining balance would be invested in the other asset classes mentioned under a fund.

Whilst every attempt would be made to attain target levels prescribed above, it may not be possible to maintain the prescribed 'target' at all times owing to market volatility, availability of market volumes and other related factors. The 'target' may be attained on a 'best effort' basis. However, the asset allocation will fall within the asset allocation range mentioned in respect of each fund but in exceptional circumstances it may deviate.

Computation of NAV

The NAV for a particular fund shall be computed as: Market Value of investment held by the fund plus the value of current assets less the value of current liabilities and provisions, if any. This gives the net asset value of the fund. Dividing by the number of units existing at the valuation date (before creation/redemption of units), gives the unit price of the fund under consideration.
In case the valuation day falls on a holiday, then the exercise will be done on the following working day.

Allocation of units

The company applies premiums/gratuity contributions to allocate units in one or more of the unit-linked funds in the proportions which the master policyholder specifies. The allotment of units to the policyholders will be done only after the receipt of premium / gratuity contribution proceeds as stated below:

In case of New Business, units shall only be allocated on the day the proposal is completed and results into a policy by the application of money towards premium/gratuity contribution. In the case of renewal premiums/gratuity contributions, the premium/gratuity contributions will be adjusted on the due date, whether or not it has been received in advance. (This assumes that the full stipulated premium/gratuity contribution is received on the due date.) Renewal premiums / gratuity contribution received in advance will be kept in the deposit account and will not earn any returns until the renewal premium/ gratuity contribution due date on which the same will be applied to the unit funds.In respect of premiums/gratuity contributions received or funds switched up to 3.00 p.m. by the company along with a local cheque or a demand draft payable at par at the place where the premium/gratuity contribution is received, the closing NAV of the day on which the premium/gratuity contribution is received or funds switched, shall be applicable. In respect of premiums/gratuity contributions received after 3.00 p.m. by the company along with a local cheque or a demand draft payable at par at the place where the premium/gratuity contribution is received, the closing NAV of the next business day shall be applicable.

In respect of premiums/gratuity contributions received with outstation cheques or demand drafts at the place where the premium/gratuity contribution is received, the closing NAV of the day on which cheques demand draft is realized shall be applicable.

Cancellation of units

To meet fees and charges, and to pay benefits, the company will cancel the units to meet the amount of the payments which are due. If units are held in more than one unit linked fund, then the company will cancel the units in each fund to meet the amount of the payment. The value of units cancelled in a particular fund will be in the same proportion as the value of units held in that fund is to the total value of units held across all funds. The units will be cancelled at the prevailing NAV per unit (unit price).

Redemptions

In respect of valid applications received (e.g. surrender, benefit payment, switch out etc) up to 3.00 p.m. by the insurer, the same day's closing NAV shall be applicable. In respect of valid applications received (e.g. surrender, benefit payment, switch out etc) after 3.00 p.m. by the insurer, the closing NAV of the next business day shall be applicable. The NAV for each segregated fund provided under this product shall be made available to the public in the print media on a daily basis. The NAV will also be displayed in the web portal of the company.

Delaying encashment

The Company may delay encashing units from a fund if it is necessary to do so in order to maintain fairness and equity between unit holders remaining in, and unit holders leaving a fund. Where this applies, the Company may delay encashing all or part of the funds for up to 30 days. If the Company delays the encashment, the unit prices that apply on the day on which the encashment actually takes place will be used.

Special rules for large transactions

For a very large transaction above a threshold level, in order to maintain equity and fairness with all unit holders, the Company may choose to apply special treatment for all transactions, which involve purchase or sale of underlying assets. The number of units allocated may reflect the expenditure incurred in the actual market transactions which occurred. The value of units obtained from encashment may be the actual value obtained as a consequence of the actual market transactions which occurred. Transactions may occur over a number days. The threshold level will vary from time to time, depending on, amongst other matters, the liquidity of the stock markets. Our current threshold for large transactions will be Rs. 50,000,000 for a fund predominantly investing in Government securities and Rs. 25,000,000 for a fund investing in highly liquid equities.
The Company reserves the right to value less frequently than daily in extreme circumstances, where the value of the assets may be too uncertain. In such circumstances the Company may defer valuation of assets until normality returns. Examples of such circumstances are:

a) When one or more stock exchanges which provide a basis for valuation for a substantial portion of the assets of the fund are closed otherwise than for ordinary holidays
b) When, as a result of political, economic, monetary or any circumstances out of our control, the disposal of the assets of the unit fund are not reasonable or would not reasonably be practicable without being detrimental to the interests of the remaining unit holders.
c) During periods of extreme volatility of markets during which surrenders and switches would, in our opinion, be detrimental to the interests of the existing unit holders of the fund.
d) In the case of natural calamities, strikes, war, civil unrest, riots and bandhs.
e) In the event of any force major or disaster that affects our normal functioning.
f) If so directed by the IRDA.

Disclaimer

For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. UIN for Reliance Group Gratuity Plus Plan is 121L081V02.

Share your feedback on
Comments
How did you find about RelianceLife.com
Please tell us about yourself
This Feedback is related to your experience with this website only. If you have any queries related to your Reliance Life Policy, please feel free to contact us at 3033 8181 / 1800 3000 8181 (Toll Free).