Presentation Structure Return Guarantee Fund: Our New Offering RGF: Benefits & Advantages Fund Launch: Process & FAQs
Customer Journey Fear is still the dominant emotion today  &   Guarantee is a strong desire Wow ! I feel great about this ...
Presentation Structure Return Guarantee Fund: Our New Offering RGF: Benefits & Advantages Fund Launch: Process & FAQs
ICICI Prudential presents
Competition <ul><li>LIC Jeevan Astha: 6%-7% </li></ul><ul><li>AVIVA Bond: 7% (Closed)‏ </li></ul><ul><li>Bajaj Capital Shi...
What is the Return Guarantee Fund? <ul><li>Return Guarantee Fund ( RGF) is a close ended debt fund  </li></ul><ul><li>It o...
Reasons for launch Excellent customer response to LifeStage Assure Customer/ Sales feedback to extend this  philosophy to ...
Opportunity in Debt <ul><li>Interest rates have reached a high last seen in 2001-2002 </li></ul><ul><li>RBI is cutting int...
Advantage: Debt funds With decrease in interest rates, bond price is set to increase If interest rates on 5 year G-Secs fa...
Opportunity in Debt ? Debt funds gave high returns Debt could be expected to perform better this year
Presentation Structure Return Guarantee Fund: Our New Offering RGF: Benefits & Advantages Fund Launch: Process & FAQs
Get the all round advantage RGF Life &  Pension variants Upside  Potential Guaranteed  NAV  Flexibility
Guaranteed NAV at Maturity Get a Minimum Guaranteed NAV of 15 on  December 20, 2013 Rs.10 Rs.15 5  yrs
Snapshot of RGF Minimum Guaranteed NAV of 15 Term: 5 years Closed Ended Fund FMC: 1.50% Subscription starts on Dec 20, 200...
Upside Potential <ul><li>On Dec 20, 2013 you get Min Guaranteed NAV of Rs 15 or the NAV on that day; whichever is higher <...
Flexibility <ul><li>LIQUIDITY: </li></ul><ul><li>SWITCH: </li></ul>*Guarantee will not be applicable in such cases Partial...
Available with…
Presentation Structure Return Guarantee Fund: Our New Offering RGF: Benefits & Advantages Fund Launch: Process & FAQs
RGF – Features <ul><li>RGF is a close ended fund of 5 years term </li></ul><ul><li>It will open with an NAV of Rs.10 on De...
RGF - Features <ul><li>New Customers:  </li></ul><ul><ul><li>If RGF is chosen, the first premium deposit (cheque amount) n...
Subsequent Premiums <ul><li>Only your First Premium Deposit is invested in the RGF </li></ul><ul><li>Subsequent Premiums: ...
Automatic Transfer Strategy (ATS)‏ ATS allows you to invest a lump sum amount in Preserver and transfer a pre-defined amou...
Automatic Transfer Strategy (ATS)‏ <ul><li>Has ATS replaced ATP? </li></ul><ul><li>NO </li></ul><ul><li>Currently ATS can ...
LifeCycle Based Portfolio Strategy  <ul><li>Initial allocation based on customer’s age </li></ul><ul><li>Rebalancing on a ...
RGF-For the volatile times <ul><li>If equity market stabilizes after 1 year: </li></ul><ul><ul><li>Subsequent premiums can...
What happens on termination date of RGF? <ul><li>Termination Date: This is the date 5 years from the launch of RGF. For th...
Limited Period Offer Hurry !!! Offer open only for Subscription period Rs.10 5  yrs Rs. 15
Words of wisdom Warren Buffett Invested $5billion in Goldman Sachs  Investing $3 billion in General Electric   -   New Yor...
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Return Guarantee Fund

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  • Return Guarantee Fund

    1. 2. Presentation Structure Return Guarantee Fund: Our New Offering RGF: Benefits & Advantages Fund Launch: Process & FAQs
    2. 3. Customer Journey Fear is still the dominant emotion today & Guarantee is a strong desire Wow ! I feel great about this investment Maybe the markets are not for me Temporary Setback I am a long term investor 2007 2008 Desperation Relief Optimism Despondency Optimism Euphoria Thrill Excitement Depression Fear Denial Anxiety Panic Capitulation Hope
    3. 4. Presentation Structure Return Guarantee Fund: Our New Offering RGF: Benefits & Advantages Fund Launch: Process & FAQs
    4. 5. ICICI Prudential presents
    5. 6. Competition <ul><li>LIC Jeevan Astha: 6%-7% </li></ul><ul><li>AVIVA Bond: 7% (Closed)‏ </li></ul><ul><li>Bajaj Capital Shield: Premium Guarantee </li></ul><ul><li>Religare Aegon: 7.2% </li></ul><ul><li>All are Single Premium offerings launched in the </li></ul><ul><li>market in the recent past. </li></ul>
    6. 7. What is the Return Guarantee Fund? <ul><li>Return Guarantee Fund ( RGF) is a close ended debt fund </li></ul><ul><li>It offers a Minimum Guaranteed NAV at the end of 5 years. </li></ul>Fund Management Charge: 1.50% 100 100 Debt, Money market & Cash Min (%)‏ Max (%)‏ Indicative Portfolio Allocation
    7. 8. Reasons for launch Excellent customer response to LifeStage Assure Customer/ Sales feedback to extend this philosophy to other products Provide the flavor of guarantee to our existing products through the introduction of a fund Great opportunity in Debt in the current market scenario
    8. 9. Opportunity in Debt <ul><li>Interest rates have reached a high last seen in 2001-2002 </li></ul><ul><li>RBI is cutting interest rates to kick start growth by encouraging lending, especially to businesses </li></ul><ul><li>When interest rates fall, bond prices rise which helps you to get better returns in debt instruments. </li></ul>Example : Bond A gives 7% returns. Its price is 100. Tomorrow, if interest rate falls to 6%, all new bonds give 6% except A which continues to give 7%. So Bond A becomes more valuable and hence its price will go up
    9. 10. Advantage: Debt funds With decrease in interest rates, bond price is set to increase If interest rates on 5 year G-Secs fall from 7% to 6%, bond price appreciates from Rs. 100 to Rs. 104.15 Interest Rate 7% 6% Rs. 104.15 Rs. 100
    10. 11. Opportunity in Debt ? Debt funds gave high returns Debt could be expected to perform better this year
    11. 12. Presentation Structure Return Guarantee Fund: Our New Offering RGF: Benefits & Advantages Fund Launch: Process & FAQs
    12. 13. Get the all round advantage RGF Life & Pension variants Upside Potential Guaranteed NAV Flexibility
    13. 14. Guaranteed NAV at Maturity Get a Minimum Guaranteed NAV of 15 on December 20, 2013 Rs.10 Rs.15 5 yrs
    14. 15. Snapshot of RGF Minimum Guaranteed NAV of 15 Term: 5 years Closed Ended Fund FMC: 1.50% Subscription starts on Dec 20, 2008 Subscription ends after 1 month Fund terminates on Dec 20, 2013
    15. 16. Upside Potential <ul><li>On Dec 20, 2013 you get Min Guaranteed NAV of Rs 15 or the NAV on that day; whichever is higher </li></ul><ul><li>The falling interest rate regime is expected to boost the returns given by debt funds- as seen in the past </li></ul>GET THE ADVANTAGE OF HIGHER RETURNS WITH THE PROMISE OF A MINIMUM GUARANTEE
    16. 17. Flexibility <ul><li>LIQUIDITY: </li></ul><ul><li>SWITCH: </li></ul>*Guarantee will not be applicable in such cases Partial Withdrawal and Surrender allowed at any point of time at the prevailing NAV* <ul><ul><li>Switch out of Return Guarantee fund at </li></ul></ul><ul><ul><li>the prevailing NAV at any point of time and </li></ul></ul><ul><ul><li>re-invest in any of our other funds </li></ul></ul>
    17. 18. Available with…
    18. 19. Presentation Structure Return Guarantee Fund: Our New Offering RGF: Benefits & Advantages Fund Launch: Process & FAQs
    19. 20. RGF – Features <ul><li>RGF is a close ended fund of 5 years term </li></ul><ul><li>It will open with an NAV of Rs.10 on Dec 20, 2008 </li></ul><ul><li>Subscription to this fund is open for a limited period </li></ul><ul><li>The fund can be closed by giving a notice of 5 working days notice </li></ul><ul><li>The fund will terminate (mature) on Dec 20, 2013 </li></ul>
    20. 21. RGF - Features <ul><li>New Customers: </li></ul><ul><ul><li>If RGF is chosen, the first premium deposit (cheque amount) net of charges will be invested entirely in this fund </li></ul></ul><ul><ul><li>Subsequent premiums will be allocated in our other funds as per customer’s fund allocation choice </li></ul></ul><ul><li>Existing customers: Can switch their funds into RGF during this period </li></ul>
    21. 22. Subsequent Premiums <ul><li>Only your First Premium Deposit is invested in the RGF </li></ul><ul><li>Subsequent Premiums: </li></ul><ul><ul><li>Allocation must be chosen at inception ( in app form); and can be allocated into any of the fund / strategy available with the product </li></ul></ul><ul><ul><li>Active Customer- Automatic Transfer Strategy </li></ul></ul><ul><ul><li>Passive Customer- Life Cycle Based Portfolio Strategy </li></ul></ul>
    22. 23. Automatic Transfer Strategy (ATS)‏ ATS allows you to invest a lump sum amount in Preserver and transfer a pre-defined amount every month into any one of the chosen equity funds (Multiplier, R.I.C.H., Flexi Growth)‏ Automatic Transfer Strategy is modification of Automatic Transfer Plan (ATP)‏ <ul><li>Customer can opt for ATS in the APPLICATION FORM </li></ul><ul><li>If opted, customer needs to allocate funds in Preserver </li></ul><ul><li>The 40% cap on Preserver has been removed </li></ul>
    23. 24. Automatic Transfer Strategy (ATS)‏ <ul><li>Has ATS replaced ATP? </li></ul><ul><li>NO </li></ul><ul><li>Currently ATS can be opted for only in these 4 products </li></ul><ul><li>ATP service request forms will continue to be available for all other ULIPs </li></ul><ul><li>The source fund in ATP has also been replaced with Preserver. </li></ul><ul><li>Why has Protector been replaced with Preserver? </li></ul><ul><li>Preserver being a money market fund is more stable and less volatile than Protector. </li></ul><ul><li>IRDA has removed the 40% cap on Preserver. </li></ul>
    24. 25. LifeCycle Based Portfolio Strategy <ul><li>Initial allocation based on customer’s age </li></ul><ul><li>Rebalancing on a quarterly basis </li></ul><ul><li>As age progresses, allocation changed to suit change in Lifestage </li></ul><ul><li>In the last 10 quarters corpus shifted from equity to debt to ensure capital preservation </li></ul>
    25. 26. RGF-For the volatile times <ul><li>If equity market stabilizes after 1 year: </li></ul><ul><ul><li>Subsequent premiums can be invested in equity funds via the ATS route </li></ul></ul><ul><ul><li>The funds in RGF will provide diversity to your portfolio, mitigating investment risk </li></ul></ul><ul><li>If equity markets remain volatile/ sluggish after 1 year: </li></ul><ul><ul><li>We will launch more series of RGF </li></ul></ul><ul><ul><li>If not, subsequent premiums can be invested in debt funds </li></ul></ul><ul><ul><li>Guarantee in a debt fund will be the icing on the cake </li></ul></ul>
    26. 27. What happens on termination date of RGF? <ul><li>Termination Date: This is the date 5 years from the launch of RGF. For this tranche, it is 20 Dec 2013 </li></ul><ul><li>On that date, the customer will get higher of Guaranteed NAV (Rs.15) or existing NAV </li></ul><ul><li>This RGF terminal value (maturity value) will be allocated as per existing fund allocation in other funds & policy will continue till end of policy term. </li></ul><ul><li>Example: On 20 Dec 2013, the customer has his funds in RGF: 1 lac, </li></ul><ul><li>RICH: 3 lac, Balancer: 1 lac. Since RGF terminates and is allocated as per existing </li></ul><ul><li>fund allocation, this 1 lac is divided into 75K into RICH and 25K into Balancer </li></ul>
    27. 28. Limited Period Offer Hurry !!! Offer open only for Subscription period Rs.10 5 yrs Rs. 15
    28. 29. Words of wisdom Warren Buffett Invested $5billion in Goldman Sachs Investing $3 billion in General Electric - New York Times 23 rd Sept ’08 You know, five years from now, ten years from now, we'll look back on this period and we'll see that you could have made some extraordinary (stock market) buys. That doesn't mean it won't get more extraordinary a week or a month from now. I have no idea what the stock market is going to do next month or six months from now. I do know that the economy, over a period of time, will do very well, and people who own a piece of it will do well. - Warren Buffet He really meant it, when he said so See what he did Therefore, it might be one of the best time to make an investment

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