Aviva India launches a new range of unit-linked Products and Thematic Funds

Date: 30-Dec-2009

• 9 new unit-linked products cover savings, retirement, protection and investment needs of all customers
• The new products come with enhanced features and higher IRR
• Launches new thematic funds - Infrastructure Fund and PSU Fund
  

New Delhi:Aviva Life Insurance announced today, the launch of 9 new unit-linked plans including one of the market leading child, pension and savings products with14 new fund options covering savings, retirement, protection and investment needs of all customers. These products are in line with the recent IRDA guidelines on cap on charges and come with enhanced features and higher IRRs (Internal Rate of Return). The company has also introduced thematic funds - Infrastructure fund and PSU Fund across select products.

In compliance with the requirements of the IRDA circular, all unit-linked products launched by Aviva Life Insurance will have a standard charge structure not exceeding 3% for ULIPs upto 10 year term and 2.25% for ULIPs over 10 year term. Within this, the fund management charges will be between 1% - 1.35%. The new products will offer the benefit of higher protection to the customers through optional riders.

Speaking on the occasion, TR Ramachandran, CEO & MD, Aviva India said, “The new products are another positive step towards making ULIPs even more transparent and favourable for customers. We have used this opportunity to further enhance our products to include features like Loyalty additions and Guaranteed Maturity additions encouraging customers to stay invested over long-term. With a cap on overall charges, the customers stand to benefit in the form of higher returns on their investment.”

He added, “Given the current scenario, we believe there is a strong need for funds that would give investors high level of safety and liquidity. Through our Infrastructure fund and PSU fund, we will continue to strive to deliver market leading returns for our customers by prudently investing for the long-term.”

The Infrastructure and PSU funds aim to provide capital appreciation by investing in equity/ equity related instruments. For Infrastructure funds the investments in equity will be in the range of 60% - 100% and in Debt Securities & Money market in the range of 0% - 40%. The fund will focus on large cap and mid cap companies engaged either directly or indirectly in the infrastructure growth of the Indian economy. The sectors would include construction, Metals, Building materials, Energy, power, chemicals, and engineering among others. The PSU fund will invest in companies where the Central and State Government have a majority shareholding of more than 50% or the management control is vested with the Central/ State Government.

Aviva was among the first insurance companies to set-up its own in-house fund management team at inception in 2002 and manages current AUM (assets under management) of Rs. 6170 crore.