Sensex surges, NAV drops!

POSTED BY Hrushikesh Swain ON February 22, 2012 2:23 pm COMMENTS (11)

I have recently received unit statement from Icici prudential life insurance company for my policy (LifeTime, Maximiser fund), which I’m continuing since Jan’2004. Total fund value shown as on 1st Jan’2012 was 195818.85 (nav 67.69) which became 186029.69 (nav 64.08) by 31st Jan 2012 !

The statement shows, 10.21 utils of bonus been issued of value 631.04.

My question is when any bonus is issued, why the total fund value including that of the issued bonus units fall by 5.33% while I receive a meager 0.32% as bonus ?

Above all, the sensex has appreciated 10.8% from 1st to 31st January’12 !

11 replies on this article “Sensex surges, NAV drops!”

  1. kenny says:

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  2. Dear Hrushikesh Swain, Please lodge a formal complain with ICICI Pru Life. The NAV in your unit statement sent to me is matching for 23 Jan & 31st Jan with the NAV available on the site.

    The opening NAV for 1 Jan (actually it’s 30 Dec 2011 NAV) is not 67.69 as given in your unit statement but the actual NAV as available on site is 56.28.

    In actual your opening fund value as per site NAV of 56.28 is 162811.2864 Rs.

    So there is a good rise of NAV as well as fund value from 56.28 to 64.08 & from 1.62L to 1.86L Rs.

    Please get the matter clear from ICICI Pru Life.



  3. Dear Hrushikesh Swain, if you want to mail me, please do the same. I’ll check it & ‘ll update my findings here in this discussion.



  4. Hrushikesh Swain says:

    Dear Ashal, I am not sure, if I should believe the the NAV in the site or the statement the company has dispatched to me. I have copied the exact figures as it is from the unit statement.

    For some reason, I couldn’t upload it as an attachment here. But I surely can email it, if you want me to.

  5. Dear Hrushikesh, I checked the data of NAV at for the following product icici life time maximiser.

    From the data, the NAV as on 31-12-2011 is 56.28, where as on 31st Jan 2012 it’s 64.08.

    Now do tell me where as the drop in NAV, you are talking about.



  6. Hrushikesh Swain says:

    (@Ashal) Let me give the details of the nav fluctuations in January, as per the statement received.

    Transaction date Description Units NAV as on date Amount

    01/01/2012 Opening Balance 2892.88 67.69 195818.84

    23/01/2012 Bonus unit allocation 10.21 61.82 631.06

    31/01/2012 Closing balance 2903.09 64.08 186029.69

    (@justgrowmymoney) My complain isn’t just about the fund performance, its more about the extend of drop of NAV after the bonus unit allocation.

  7. The charges in ULIP (Except for Fund management charges) are very specific to every individual so all such charges are levied only by decreasing the units a person has.

    If the NAV has decreased while sensex went up it should be very surprising but not impossible. Just because Sensex rises does not mean every scheme must go up. Not at all.

    Even when Sensex is rising on an average 60% of stocks go up in a given day. This means this particular fund mostly contained the rest of the falling stocks => NAV fell. I think that is a pathetic performance but definitely possible!!

    If a Mutual fund performs like this consistently one has a choice to exit it. If all funds in a ULIP plan perform like this it is hard luck. You can still stop contributing to this ULIP and go with picking MFs.

  8. Dear Hrushikesh, Please check with the Insurer for the fall in NAV. There is something missing in your query. In general, NAVs have increased from 1st Jan on wards.



  9. BanyanFA says:

    Hi Hrushikesh,
    You have a very valid point. This is one particular reason of we mentioning that ULIPs are not the best investment channel. Possibly you may be investing on a yearly basis, which does the averaging over a period time, but it’s averaging is not as efficient as the one done through monthly investing via Mutual Fund SIPs.

    The reason why the NAVs may have dropped is due to excessive charges being put by the Insurance Company and deduction of Life Insurance charges (Mortality charges) from your policy.

    How much are you investing per year into the policy ?


    1. Hrushikesh Swain says:

      Thanks for the response.

      My yearly premium is Rs.20000 and the policy is in its 8th year.

      Yes I agree, but the the deduction of mortality charges and other charges are done only by redeeming my units, not by dropping the nav value!

      I’ve learned the only possible charge is fund management charges (fmc) which is adjusted in nav on an yearly basis. But there is a cap on it of about 1.35% of the fund value.

      Any suggestions, how I can get further details about it ?

      1. Check: for Fund Performances.

        Portfolio details are here:

        However a casual glance of Maximizer shows it has many of the Blue chips and they have gone up in value substantially over the last few weeks!!

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