What are the investment fund options under the SUD Life Group Retirement Benefit Plan?
Can the Master Policyholder change the allocation of contributions or switch funds under the SUD Life Group Retirement Benefit Plan?
What charges are applicable under the SUD Life Group Retirement Benefit Plan?
What are the Fund Management Charges (FMC) for the different funds under the SUD Life Group Retirement Benefit Plan?
How is the Net Asset Value (NAV) calculated, and how are units allocated under the SUD Life Group Retirement Benefit Plan?
What is the Force Majeure condition under the SUD Life Group Retirement Benefit Plan, and how does it affect fund valuation?
How can the SUD Life Group Retirement Benefit Plan be surrendered?
The plan offers four fund options to cater to different investment goals and risk profiles: Group Growth Fund (SFIN: ULGF 001 20/03/15 SUD-GN-GR1 142): Focuses on long-term capital appreciation with a mix of equity (30–60%) and debt instruments, suitable for higher-risk tolerance. Group Balanced Fund (SFIN: ULGF 002 20/03/15 SUD-GN-BL1 142): Balances moderate equity exposure (10–30%) with a larger focus on debt (50–90%), ideal for medium-risk investors. Group Debt Fund (SFIN: ULGF 003 20/03/15 SUD-GN-BN1 142): Prioritises stable returns through full exposure to high-quality debt instruments (70–100%) with low to medium risk. Group Money Market Fund (SFIN: ULGF 004 20/03/15 SUD-GN-MM1 142): Ensures capital safety with money market investments (70–100%), offering low-risk returns. Employers can choose funds based on their objectives and risk appetite, with flexible allocation and switching options to optimise returns.
Yes, the Master Policyholder can redirect future contributions and adjust allocation percentages for different funds, with a minimum of 10% in each selected fund. There is no limit to how often redirection can be done. Additionally, the policyholder can switch any amount of fund value, provided the minimum switch amount is ₹5,000 and the allocation remains at least 10% per fund.
The plan has the following charges: Allocation Charge: 0.5% of each contribution, with a maximum of ₹1 Lakh per policy year. Fund Management Charge (FMC): Charged as a percentage of the fund value, included in the unit price of each fund on a daily basis, and adjusted daily in the NAV. Mortality Charge: ₹1 per ₹1,000 Sum Assured, deducted monthly through unit cancellations. No charges for switching or redirection of contributions. No surrender or discontinuance charges.
The FMC varies across the available funds: Group Growth Fund: 0.60% annually. Group Balanced Fund: 0.50% annually. Group Debt Fund: 0.40% annually. Group Money Market Fund: 0.30% annually. These charges are deducted from the fund value and reflected in the unit price, affecting the net asset value (NAV).
The NAV is calculated by dividing the total amount of the fund's investments (market value of assets plus current assets minus liabilities) by the total number of units in existence on the valuation date. Units are allocated to the Master Policyholder based on the contribution received: For contributions received before 3 p.m., the NAV of the same day is applied. For contributions after 3 p.m., the NAV of the next business day applies. For outstation drafts, the NAV is based on when the draft is credited. Contributions via Standing Instructions or ECS are allocated based on when the credit is realised.
Under the Force Majeure condition, the company may delay fund valuations in extreme situations beyond its control, such as market closures, political instability, natural disasters, or economic crises. In such cases, the valuation may be deferred for up to 30 days, subject to consultation with the IRDAI. This ensures that valuations are only made when asset values are stable and accurate, protecting the interests of policyholders.
The policy can be surrendered by the Master Policyholder with a one-month prior notice in writing. Upon expiration of the notice period, the surrender value, which is the fund value on the date of surrender, will be paid. For policies with a fund value of up to ₹5 crores, the surrender value is paid immediately, and the contract is then terminated.
