ICICI Prudential Life Insurance on Monday announced the launch of a debt fund, which will enable customers to lock-in their investments at current high interest rates, build long-term wealth and achieve financial goals.
The prevailing interest rate regime provides customers with an opportunity to invest in the debt fund – ICICI Pru Constant Maturity Fund – the first such fund in the life insurance market, the company said.
It added that with interest rates closer to their peak, any fall in interest rates makes debt instruments attractive as an investment option for customers. This is due to the inverse relationship between prices of debt instruments and interest rates – their prices increase when interest rates fall thus benefitting customers who have invested in these instruments.
The company in a statement said that this fund is available for investments with the company’s flagship Unit Linked Insurance Plans (ULIP). ULIPs provide customers with a unique proposition of life cover, financial security to the family and facilitate building wealth over the long-term.
ICICI Pru Constant Maturity Fund is available with Unit Linked Products from May 15, 2023.
Tax Benefits
Investments in ULIPs provide tax benefits. If annual investments made are up to Rs 2.5 lakhs and with a life cover of 10 times the annual premium, maturity proceeds are tax-free for customers.
How To Invest In ICICI Pru Constant Maturity Fund?
Customers have the option of investing in this fund through the Company’s ULIP offerings like ICICI Pru Signature, ICICI Pru Smart Life and ICICI Pru LifeTime Classic. Customers can reach out to their advisors or visit the Company website to buy these plans.
Arun Srinivasan, head of fixed income, ICICI Prudential Life Insurance, said, “We are excited to launch a unique debt fund which makes us the country’s first insurer to offer such a fund in the fixed income ULIP space. By investing in this fund, customers will be able to lock-in their investments at the high current interest rates and benefit from increasing NAV of the fund since bond prices are expected to rise over time.”
Srinivasan added that customers need to invest for the long-term and make regular contributions to achieve their financial goals such as buying the dream house or leading a financially independent retired life. Since this investment is locked up for a minimum of 5 years with the flexibility to switch between fund options, it would enable investors to build wealth, Srinivasan added.
Srinivas Balasubramanian, head of products, ICICI Prudential Life Insurance, added that besides steady and stable returns, it offers customers a life cover which financially secures their loved ones.
Moreover, investors must note to review the scheme documents carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.
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