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Municipal bonds re-enter
Municipal bonds are back after a gap of 14 years. Pune Municipal Corporation (PMC) became the first civic body to issue these bonds.
PMC raised ₹200 crore through the first tranche; it has received permission to raise a total sum of ₹2,264 crore.
These bonds that will mature in 10 years have received AA+ rating from CARE and India Rating. The face value of the bonds is ₹10 lakh and it offers 7.59 per cent interest, payable semi-annually.
Insurance, pension funds and State-owned banks are the primary investors. The bonds are traded on the BSE.
ULIP from Bajaj Allianz
Bajaj Allianz launched the ‘Life Future Wealth Gain’, a unit-linked investment-cum-insurance plan, offering customers a choice of two variants, ‘Wealth Plus’ and ‘Wealth Plus Care’.
At maturity, a person will receive the fund value, including guaranteed loyalty additions.
The guaranteed loyalty additions helps one get higher returns, as it provides 30 per cent of one year’s premium for a policy term of 25 years, payable at the end of every five years, starting from the 10th policy year.
To enhance fund value, the plan also offers fund boosters that will be added to the regular premiums on maturity.
The death benefit under the ‘Wealth Plus variant’ assures benefit of 105 per cent of premiums paid. This will be higher of the sum assured or fund value.
Under the ‘Wealth Plus Care variant’, in addition to the death benefit, the customer is entitled to an income benefit, payable on death or first diagnosis of cancer of the life assured during the premium payment term.
Axis MF launches Nifty ETF
Axis Mutual Fund has launched Axis Nifty ETF, an open-ended exchange-traded fund, which would track the Nifty 50 Index.
The investment objective of Axis Nifty ETF is to provide returns that closely correspond to the total returns of the Nifty 50 Index, subject to tracking errors.
The Nifty 50 Index in the last five years has offered compounded annual returns of 14.33 per cent as on May 31, 2017 with one-year return at 17.91 per cent and return since inception at 11.06 per cent.
The creation unit size under the scheme is 5,000 units and in multiples thereof with a pricing per unit of approximately one-tenth of the Nifty Index Value.
Ashish Naik would be the fund manager for the Axis Nifty ETF.
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