fund performance may

7/31/2019 Fund Performance May

1/4

M a y 2 0 1 1

For internal circulation only 1

After a good fiscal year end rally, investor sentiments

dampened due to weaker-than-expected IP and higher-

than-expected inflation numbers reported over the month.

Additionally, rising global commodity prices and lower

margins reported by companies in Q4FY2011 results also

had an adverse impact on the performance of Indian equities.

Surprisingly, despite these headwinds FII flows remained

supportive over the month, while DIIs tuned net sellers.March inflation surprised sharply on the upside, at 9% oya

(1.4% m/m,) significantly higher than expectations. Non-food

manufacturing prices rose a further 1.3% m/m suggesting

that inflationary pressures continue to mount sharply. Equally

revealing is the fact that the increase in manufacturing

prices was very broad-based, with almost every single sub-

category showing a sharp increase over the previous month.

The only good news in this month was that primary food

inflation moderated further to 9.5% oya (-0.6% m/m) from

10.6% oya the previous month and levels of about 15% a

few months ago. Liquidity remained comfortable during the

month resulting into some relaxation in short-term yields.

10-year benchmark treasury yield increased by 15 bps to

8.13% over the month. Higher-than-expected inflation data

for March dampened investor sentiments.

have seen a trend of margin decline, though sales are as per

expectations. In Financials, credit growth and NIMs have seen

better-than-muted expectations. Asset quality also held up well.

IT Services companies reported a mix set of numbers; demand

environment has improved & managements are cautiously

confident on growth outlook. Cement companies have reported

better-than-expected numbers on better realisations.

Indian equity market lost a marginal 1.4% over the

month and underperformed the Emerging Markets index.

Consumer Discretionary, Consumer Staples and Healthcare

were relative outperformers, whereas Telecom and IT Services

underperformed. FIIs remained net buyers of Indian equities

over the month. FIIs bought net USD 1,618 million over April.Over 2011 so-far, FIIs have been the net buyers of USD 1,098

million. DIIs were net sellers and sold a marginal USD 57 million

of Indian equities. Insurance companies sold USD 51 million,

while Mutual Funds sold USD 6 million over the month.

Indian companies are reporting Q4FY2011 earnings. A

notable trend has been that of healthy volume growth margin

pressure felt across sectors. In Industrial and Autos, we

Prashant SharmaCorporate Vice President, Investment

Indias High Net Worth Individual (HNI) population grew

by 50.9% in 2009

India presents a great opportunity and remains an

important market for wealth management providers

Indias growth in the number of HNIs is the second fastest

in Asia Pacific Indias GDP grew by 8.2% in 2010 and is expected to

grow by 8.5% in 2011

Most big insurance companies in India are increasingly

tapping the HNI segment and have done a total business of

` 3,000 crore through HNI sales in the last nine months

Indi i on of hf gowingHNI markets

Market View

Equity

Fixed Income

Share on New Business from policies with Ticket Size> ` 1 Lac

ICICI Pru

0%

5%

10%

15%

20%

25%

30%

35%

40% 38%

4%

13%

SBI HDFC Reliance Bajaj MNYL Birla Tata AIG Kotak

PremiumPolicies

2%

33%

5%

9%

0%

15%

1% 1% 1%

10%

28%

18%

1% 2%

8%

HugeB

usiness

opportu

nity

As this segment has its own way of spending and savings,

we have developed a product Max New York Life Fast Track

Plan, which is ideally suited to meet the needs of the HNI

segment. Max New York Life Fast Track Plan ensures that yourcustomers meet their financial needs in the shortest time so

that they can live the lifestyle they want and deserve.Source: 2009 World Wealth Report 2008 and Merrill Lynch Wealth Management India

HNI Definition: People who have liquid assets of more than `40 lac

IndiaSingapore

0%

5%

10%

15%

20%

25%

21.2%20.5%

16.0%15.5% 15.4%

14.1%13.3% 12.9%

12.6% 12.2%

Indonesia Russia UnitedArabEmirates

SouthKorea SouthAfrica CzechRepublic HongKongIsrael

HNWIPopulationGrowth(%)

India is the second largest country

in HNI population growth


2/4

12%

0%1%

87%

27%19%

1%

53%

Fund Watch

For internal circulation only

Benchmark Definitions:

SyntheticBenchmarkistheweightedaverageofindicesrepresentingdifferentclassesofinvestments

Forequityinvestments:S&PCNX500Index Forfixedincome:CRISILBondIndex

Forgovernmentsecurities:I-SecGiltIndex

Disclaimer: Past fund performance is not an indicator of future performance. Growth Super Fund, Growth Fund, Balanced

Fund, Conservative Fund and Secure Fund are names of funds being offered by Max New York Life at present. They do not in

any way indicate the quality of respective funds, their future prospects or returns.

Reliance Industries Ltd

Infosys Technologies Ltd

ITC Ltd

Larsen & Toubro Ltd

Housing Development Finance Corp Bank

Our traditional fund comprises mainly fixed income

securities and is valued on HTM (Held Till Maturity) basis.

Asset Allocation of our Funds as on 30 April 2011

2

Growth Super Fund (Minimum Equity Exposure: 70%) Secure Fund (100% Debt Fund)

Growth Fund (Maximum Equity Exposure: 70%)

Controlled Fund (Traditional Fund)

Conservative Fund (Maximum Equity Exposure: 15%)

Top Equity Holdings

Balanced Fund (Maximum Equity Exposure: 40%) Legend

26%

27%

21%

26%

13%

27%

51%

9%

17%

32%51%

0%

34%

4%

62%

0%

Government Securities

Equities

Corporate Bonds

Cash and Cash Equivalents


3/4For internal circulation only 3

Whats In

Max New York Life has launched Max New York Life Fast Track

Plan, a life insurance plan ideal for High Net Worth Individuals.

This new Unit-Linked Plan (ULIP) would provide protection

to policyholders in the age group of 30-70 years.

This product not only provides the customers with flexibility

to choose premium, but also the choice of funds. Fast Track Plan

lends an opportunity to policyholders to multiply their wealth for

long-term by paying premium for a limited period only, supported

by a balanced mix of attractive investment options.

Key highlights of the plan and their benefits

Plan feature Benefit to you

Short pay terms Allows payment for short-term while

accumulating for longer time horizon.

You no longer need to commit

premiums for long years

Systematic

Transfer Plan

Allows systematic investment into

equity, which spreads out purchase

price that helps in lowering it in volatile

markets. This feature takes away the

hassles of managing your investments

on your own, and STP feature does it

all for you automatically

Option of six

investment

funds

Investment options to suit wider range

of risk profiles from conservative

to aggressive

Option to select

the level of

insurance cover

Policyholder can choose the amount of

cover as per need, from 1.25 times to

20 times of the premium

Option of

Dread Disease

and Personal

Accidental

Benefit Rider

Additional protection in case of disease,

death/disability due to an accident at a

lower cost

The minimum premium for this plan is ` 1 lac per annum

and there is no limit on the maximum premium; the premiumscan be paid in yearly, half yearly, quarterly or monthly modes.

Investment Options

MNYL Fast Track Plan provides the customers the

flexibility to choose from six different funds or combinations

thereof to suit all risk profiles as displayed.

TrckFast

IntroducingMx New York Life

The plan also offers an option called Systematic Transfer

Plan, specially designed for policyholders who want to invest

in equities, but want to do it systematically to take advantage

of marked volatilities.

Systematic Transfer Plan Under this option, which is

available only to those who choose the annual payment mode,

the net investable premium will be initially directed to the

Secure Plus Fund (debt-oriented fund). Subsequently, on each

month proportionate number of units will be transferred to

the Growth Super Fund (equity-oriented fund). This staggered

investment into an equity-oriented fund enables systematic

investment into equities to spread out the purchase of units

and helps take advantage of market volatilities.

Keeping in mind the need of liquidity, the plan also

offers partial withdrawals and rider benefits to enhance

protection cover.

Charges

The premium allocation charge is 4% of Annual Premiumthroughout the payment term for five-year and 10-year

payment options. The allocation charge for Single Pay option

is 2%. Policy administration charges are ` 1,500 p.a for 5/10

year payment term and ` 900 p.a for Single Pay option.

The policy administration charge increases by 5% every

year from policy year 2.

Return

Secure

Conservative Balanced

GrowthGrowth Super

Risk High

High

Low

PLaN


4/4

Watch Out

For feedback and comments, please write to us at

[email protected]

ClaimsDesk UpdateHospitalisation Benefts Product Fixed Benefts Model

Insurance is the subject matter of solicitation

For internal circulation only4

Scenario 1

Life Assured (LA) was a 49 year old female, Medicash

Plus Policy was issued in January 2009 and she opted for

two units

Hospitalised for five days in February 2011 for

Hysterectomy, insured incurred ` 35,000 expenses

towards hospitalization and surgery charges

Claim is settled for ` 43,000 towards hospitalisation and

surgical benefit. (Hysterectomy is 24 months exclusion,

this insured is eligible for surgical benefit as the policy

completed 24 months waiting period)

At the claims stage, all the required medical records and

claim form were provided, claim was paid within 30 days

to the insured

Insured has actually incurred ` 35,000 towards hospital

expenses where as this product has reimbursed ` 43,000

to the insured

Scenario 2

Life Assured (LA) was a 49 year old female, Medicash

Plus Policy was issued in January 2010 and she opted for

two units

Hospitalised for five days in February 2011 for

Hysterectomy, Insured incurred ` 35,000 expenses

towards hospitalisation and surgery charges

Claim is settled for ` 8,000 towards hospitalisation

benefit only. (Hysterectomy is 24 months exclusion and

insureds policy has not yet completed waiting period,

hence, not eligible for surgical benefit)

At the claims stage, all the required medical records and

claim form were provided, claim was paid (only hospital

cash benefit) within 30 days to the insured

Insured has actually incurred ` 35,000 only towards

hospital expenses whereas this product has reimbursed

` 8,000 only to the insured

Ensure that:

You read and understand the product correctly and accurately to the best of your knowledge.

Medicash/Medicash Plus Policy should not be compared with regular Mediclaim policy as Mediclaim reimburses all

incurred expenses.

This health product is unit based fixed benefit policy and reimburses the eligible amount irrespective

of the expenses incurred.

together, we promise to make you feel a little

more special!

Growth

Lower FMC Charges

Settlement option help you

stay invested till you reach

your goal

Six well managed funds to

suit your risk appetite

Make the most of market

volatility with STP

Flexibility

Option to choose SA up

to 20 times of ATP

Flexibility to choose

protection with DD & PAB

Rider

12 partial withdrawals in a

policy year and all are free

of charge

Short Premium Payment

Terms (Single Pay/

5 Pay/10 Pay)

Give and Get

A policyholder of age 35 pays a premium of ` 5 Lac for

five years. He chooses an insurance cover of 10 times the

annual premium. He opts for the Growth Super Fund.

Maturity value at the end of 10 years: ` 4,428,776 (This

value is at 10% growth rate scenario)IRR to the customer: 7.3%. This IRR is inclusive of all

charges and is basis the net fund value at the end of the term

at 10% growth rate scenario

Insurance cover at any point during the policy term:

` 50 lac + fund value at time of death

What more in the Max New York Life Fast Track Plan?

This product welcomes its customers to a world of

exclusive privileges at the prestigious Gold Circle.

With Max New York Life Fast Track Plan, your customers

would be inducted in the exclusive Gold Circle Loyalty

Programme to enjoy an array of exclusive privileges

As a Gold Circle member, customers will always remain

on top of MNYL priority list & enjoy differentiated

welcome processes with all these bundled benefits

fund performance may

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