Insurance Premium and due date by Rajesh on Jul 27, 2009 06:26 PM | Hide replies
I have an HDFC ULIP Endowment policy for 15 yrs, and pay premium half yearly. I need to have some clarification.
1. Since it is an ULIP linked policy, What happens say, the premium due date is 15th March, and I pay the premium on 10th March. At what NAV value will I receive the units under the Insurance policy, Will it be the NAV value as on 10th March.
2. In the second case that is premium is due on 15th Sept, and I pay my premium on 10th Oct. Will the NAV units allotted to me be as on 10th Oct.
Is it a logical view that a fund with low corpus can deliver better returns than one with a higher corpus,if the same (capable)fund manager handles both?
My understanding is that, there is a fund manager who will take the decision to sell or buy the shares. If he sells so many shares, and has made gains, isn't this considerded at all in its NAV? If yes, how all the web-sites are considering while calculating the NAV?
Re: How NAV is calculated?
by Ram L on Jul 22, 2009 07:12 PM
You are partially correct. NAV means Net Asset value. The corpus available with AMC is invested at a certain price. To the AMC that becomes the asset cost. Now depending on the performance of the investment the latest market price will decide the investment value. From that value whatever the AMC spends or makes provision for liability is reduced to arrive at the net value of the assets. Similar to your salary. Your gross salary is your investment and the deductions becomes your liability and the take home is the net salary. This value gets divided by the number of units to arrive at the NAV. Hope i have clarified your doubts.
Many peoples got cheated in investing in NAV's.While investing the sellers showed lot of graphs that return will grow by 40%,50% etc but now the growth is in negative and they lost their own money. Instead they could have invested in safe and reliable FDs.
Re: don't invest in MF
by Viraj Choudhari on Jul 21, 2009 12:13 PM
Rahul it is true that agents show a different picture to invester but u must have the knowledge of the things otherwise u will suffer a loss.