Regarding Fund Switching in ULIP Plans.

1. 

   Anonymous
   

   Unregistered
   
   

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   If we switch the fund type, what happens to the number of units currently holding?
   Will it increase or decrease?
   How the no of units are calculated after fund switch?

   Posted 2 years ago #
2. 

   Ami
   

   member
   Joined: Jun '09
   Posts: 10

   Reputation:13

    

   When we switch from one fund to other then first of all, the present units are converted into rupees and than the converted amount is invested in the new fund and accordingly units are allocated.

   E.g.

   Bond fund _ NAV Rs. 10 (at the time of investment)
   Amount invested Rs. 20000
   Unit allocated = 2000
   Present NAV for Bond fund = 15 RS.
   Value in rupees = 2000 units x 15 RS = RS. 30000/-

   Now suppose the investor want to switch from Bond to Secured fund then in that case the above amount of 30000/- will be invested in Secured fund.

   Present NAV -Secured fund Rs. 20/-
   Unit Allocation would stand after switch over - 1500 units
   i.e Rs. 30000/20 = 1500 units

   Hope the above illustration is of help.

   Posted 2 years ago #

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