ICICI Prudential Life Insurance on Monday launched a debt fund to help clients lock in investments at current high interest rates, build long-term wealth and reach their financial goals.
The current interest rate regime offers clients an excellent opportunity to invest in the life insurance market’s first debt fund, the ICICI Pull Constant Maturity Fund. With interest rates nearing their peak, bond products become an attractive investment option for clients as interest rates fall. This is because there is an inverse relationship between the prices of fixed income products and interest rates. Customers investing in these commodities benefit because prices rise when interest rates fall.
The fund is available for investment in the company’s flagship product, Unit Linked Insurance Plans (ULIP). ULIP offers its clients a unique proposition of life insurance, family financial security, and facilitates long-term wealth building. The ICICI Pru Constant Maturity Fund will be available for unit-linked products beginning May 15, 2023.
Investing in ULIPs offers tax incentives. With an annual investment of up to Rs 2.5 lakh and a whole life insurance of 10 times the annual premium, the maturity benefit is tax exempt for the customer.
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How to invest?
Customers have the option to invest in this fund through the company’s ULIP products such as ICICI Pru Signature, ICICI Pru Smart Life and ICICI Pru LifeTime Classic.
Arun Srinivasan, Head of Fixed Income Division at ICICI Prudential Life Insurance, similarly commented, “We are launching a unique fixed income fund that will be the first insurer in the country to offer such a fund in the fixed income ULIP space. I’m excited about it,” he said. With the interest rate cycle nearing its peak, it’s a great opportunity for clients.
Channelize your investment in the ICICI Pru Constant Maturity Fund. Investors are encouraged to allocate a portion of their savings to his ULIP bond fund for capital preservation and long-term wealth creation. ”
“By investing in this fund, clients will be able to lock in their investments at the current high interest rates and benefit from the increased NAV of the fund as bond prices are expected to rise over time.” Customers are required to make long-term investments and make regular contributions to achieve their financial goals, such as buying a dream home or living a financially independent retirement.This investment is locked for a minimum of five years. Investors can build wealth with the flexibility to switch between fund options.All of our debt funds have consistently outperformed their respective benchmarks since inception. A track record of zero non-performing assets (NPA) in the portfolio over the entire market cycle,” he added.
Srinivas Balasubramanian, Head of Products at ICICI Prudential Life Insurance said: The ICICI Pru Constant Maturity Fund is available in our linked savings products. Customers can invest their premiums in this fund to take advantage of the generally high interest rates and lock in their investment over the long term. ”
ULIPs also offer their customers a tax-efficient mode to build long-term savings, as they can invest up to INR 2.5 crore per year for the duration of the policy and take the maturity amount home tax-free.
“In addition to stable earnings, we provide our customers with life insurance that financially protects their loved ones. Our customers trust us because of our track record of delivering on our promises for over 20 years,” said Balasubramanian. added Mr.
