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POSTED BY ON March 11, 2013 9:45 pm COMMENTS (5)
Hi,
I had invested in Birla Platinum Plus II fund. I paid the premium for the 3 yrs only. Now it’s the 5th year. I see that the fund has a Guaranteed Maturity Unit Price = 18.2026 which means if I wait for 5 more years, I will get at least this much NAV. But if I decide to withdraw now, the NAV is 17.5154.
The question I have is, is it really worth waiting for 5 more years and hope that the NAV will go beyond 18.2026 OR does it make sense to withdraw at a lower NAV and invest somewhere else.
Thanks in advance,
Vijay
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Ok thanks for the help guys!
Dear Vijay, as it’s ULIP, no tax if you surrender now.
Thanks
Ashal
This is a ULIP. Currently it is giving 13% annualized returns. Considering the last premium was paid 2 yrs back, is there any tax if I withdraw now?
Dear Vijay, are you talking about ULIP or Mutual fund?
Thanks
Ashal
one way to look at it is:
If my goal associated with this fund is far away (more than 5 years) then it makes sense to exit and invest in a balanced fund
another way is (only if the goal is strictly 5 years away)
Assuming the amt you get now is X. Assuming the NAV after 5 yrs is 18.5 or even 19 such that the maturity amt is Y.
If you withdraw X now and invest elsewhere for 5 yrs calculate the return ‘r’ needed to generate amt Y (taking taxes into account)
If this post-tax ‘r’ is much lower than the current average rate of return of the fund then I will withdraw. Hope I made myself clear.