Benefits
About Insurer
HDFC Life commenced its operations in 2000 and has been one of the leading long-term insurance solutions providers in India. HDFC Life Insurance Company Limited (formerly known as HDFC Standard Life Insurance Company Limited) is a joint venture between Housing Development Finance Corporation Ltd (HDFC), one of India's leading housing finance institutions, and Standard Life Aberdeen plc, a global investment company. HDFC Life offers a wide range of plans that various customers need.
Eligibility
Investment Eligibility: Minimum Investment : Rs. 2,600/month or Rs. 12,100 per year.
Age Eligibility: Minimum : 18 years & Maximum : 60 years
Fund Performance
AUM : Rs. 70, 686 Cr.
Fund | Fund Size | 3 years Returns | 5 years Returns | 10 years Returns |
Nifty Alpha 30 Fund NAV: 9.5 | NA | NA | NA | |
Opportunities Fund NAV: 80.1 | 40,430 Cr | 20.2% | 24.2% | 16.6% |
Diversified Equity Fund Fund NAV: 43.1 | 3,652 Cr | 15.5% | 19.8% | 15.0% |
Blue Chip Fund NAV: 53.3 | 9,478 Cr | 14.8% | 18.5% | 13.5% |
Balanced Fund NAV: 39.9 | 6,879 Cr | 10.8% | 13.7% | 10.8% |
Bond Fund Fund NAV: 20.1 | 447 Cr | 4.7% | 5.7% | 7.0% |
Liquid Fund - Life Fund NAV: 75.5 | 78 Cr | 4.9% | 4.4% | 5.4% |
Discovery Fund Fund NAV: 41.7 | 7,247 Cr | 22.8% | 31.5% | NA |
Equity Advantage Fund Fund NAV: 29.3 | 926 Cr | 18.2% | 23.4% | NA |
Secure Advantage Fund Fund NAV: 13.8 | 34 Cr | 5.3% | NA | NA |
Flexi Cap Fund Fund NAV: 15.8 | 1,398 Cr | NA | NA | NA |
Charges
Type | Percentage or Amount | ||||||||||||||||||
Fund Management Charges | 0.80% p.a. of the fund value for Liquid Fund, Bond Plus Fund & Secure Advantage Fund 1.35% p.a. for Other funds | ||||||||||||||||||
Mortality Charges |
*The Sum at Risk for Life Assured is Death Benefit less Fund Value | ||||||||||||||||||
Policy Admin Charges | Nil | ||||||||||||||||||
Premium Allocation charges | Nil | ||||||||||||||||||
Switching charges | Nil | ||||||||||||||||||
Partial Withdrawal charge | Nil | ||||||||||||||||||
Premium redirection charge | Nil | ||||||||||||||||||
Discontinuance Charge | Nil | ||||||||||||||||||
Miscellaneous Charges | Nil |
Tax Savings
If you invest Rs. 50,000 per year for 5 years in the opportunities fund which grows at a 16.6% (last 10 years CAGR) for 10 years. Returns would be Rs. 8,74,420
Under Section 80C (Old tax regime) : Investment amount is tax free
Your investment amount Rs.50,000 per year for 5 years will be tax exempt. So Tax savings : Rs. 15,000 per year (assuming 30% bracket). Total tax saving for 5 years would be Rs.75,000
Under Section 10D : Realised profits are tax free
Profits from your returns are tax free i.e. Rs. 8,74,420 - Rs. 2,50,000 = Rs. 6,24,420 would be tax free. If you had invested the same amount in ELSS or MF you would have to pay 12.5% LTCG tax on profits. i.e. Rs. 78,052 (assuming same charges)
So total tax savings under both above sections would be Rs. 75,000 + Rs. 78,052 = Rs. 1,53,052