ICICI Prudential Life Insurance launched a debt fund on Monday 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 excellent opportunity to invest in the debt fund – ICICI Peru Constant Maturity Fund – the first such fund in the life insurance market. 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.
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.
Investments in ULIPs provide tax benefits. If annual investments made are up to Rs 2.5 lakh and with a life cover of 10 times the annual premium, maturity proceeds are tax-free for customers.
