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LIC Nomura enhances features of its ULIS

Accidental insurance, guaranteed maturity bonus and additional loyalty bonus meant to attract investors in this tax season

In order to attract more retail investors in the last leg of the financial year, LIC Nomura Mutual Fund has announced few new measures for their LIC Nomura Unit Linked Insurance Scheme (ULIS).

Now, insurance cover up to Rs 15 lakh along with accidental insurance of Rs 1 lakh will be provided for the investment of Rs 1 lakh in their scheme.

Investors falling under the age group of 12-55 can invest in 5, 10 and 15 year plans and can also claim deductions of up to Rs 1 lakh under section 80C of Income Tax Act. Further, they can also enter through monthly systematic investment plans (SIPs) for as low as Rs 100.

Nilesh Sathe, CEO, LIC Nomura MF, says: "We have brought in a few changes like accidental insurance, guaranteed maturity bonus and additional loyalty bonus (if amount is not withdrawn even after maturity). In the past also we have always worked towards adding value to our investors, and feature enhancement of ULIS is one such step."

Maturity bonus of 2.5 per cent for 5 years, 7.5 per cent for 10 years and 10 per cent for 15 years will be offered to the investors. "If investors wants to stay in the scheme even after terms get over, they will be provided with additional loyalty bonus of 0.5 per cent per annum," added Sathe.

There will be two investment options for investors: one will be uniform risk cover under which risk cover remains constant throughout the terms while second will be reducing risk cover where risk cover reduces with the course of time.

The scheme will be having a lock in period of 3 years and later investors have an option of complete or partial withdrawals. Despite weak performance in the equity schemes for LIC Nomura MF, fund officials are quite confident to attract decent amount in the coming months.

LIC Nomura MF ULIS fund, which is under hybrid-equity oriented category, has been struggling to show good returns. In the last one year the fund has managed to give returns of just 16.13 per cent compared to 23.67 per cent provided by the category.

"With officials from Nomura taking over the equity management we have shown some improvement in the last few months. We hope going forward we will continue to deliver positive returns for the investors," concluded Sathe.