Uti Unveils 1:10 Bonus For Ulip-71

Unit Trust of India (UTI) has announced a bonus in the ratio of one unit for every 10 units held (face value Rs 10) under its Unit Linked Insurance Plan 1971 (ULIP-71), its second largest fund. The record date for the purpose is fixed as July 25.

The net asset value of the scheme was Rs.14.12 as on July 9. Meanwhile, UTI has also increased the target amount under the plan to Rs 2 lakh with effective from August 1. Thereby, the annual contribution is Rs.20,000 per annum for 10-year plan and Rs 13,333 for 15-year plan.

UTI has announced that existing members are also eligible to increase their target amount to Rs 2 lakh by applying afresh for the balance amount. Further, UTI has removed the sales load of 1.5 per cent under the plan. With this, members joining ULIP can now be allotted units at NAV. Similarly after the completion of 10 or 15 years, will also be at NAV.

 

However, for the premature withdrawal/ partial repurchases before the 10 or 15 year period, the repurchase load of 1.5 per cent of NAV will continue. Also, the administrative charges for premature closure under the plan has already been discontinued.

UTI has announced that ULIP continues to the remain a unique plan offering 5-in-1 unique benefits such as a phased/regular investment and planned tax rebate year after year, insurance cover without any medical examination and at a low cost for 10 or 15 years, free accident cover, growth in savings at a rate in line with market for similar instruments and ability to time investments over any three months for paying premium.