Investors can expect better returns from our Pension Fund: MD & CEO Max Life

You have recently obtained a license to be a sponsor of a pension fund to manage NPS (National Pension System). When is the fund likely to launch and what can investors expect?

The launch of a Pension Fund Management (PFM) subsidiary is one of the key elements of our long-term aspiration to become a major player in the retirement space. We are currently in the process of setting up a PFM company and expect to start business under our subsidiary in the next five to six months.

Since fund management is critical to our business, potential investors can expect better returns by choosing our PFM subsidiary. Max Life as a sponsor has recently demonstrated its investment capabilities with Total Asset Management (AUM) ₹1 trillion mark, which is a testament to the consistent and long-term performance of the portfolio. Like other pension fund managers, investors will have the flexibility to allocate and rearrange funds as per their risk appetite.

Term insurance premiums have seen a sharp rise of 20-40% since the outbreak of Covid-19. What has been the increase in the premium of Max Life term plan and what is the reason for the increase?

The prices of our term plans have increased in line with the growth experienced by the overall industry. The reason for the increase is mainly due to increase in reinsurance cost along with some other factors.

With some tax exemptions on ULIPs, has the product become less attractive to investors?

ULIPs (unit-linked insurance plans) have seen a rise, mainly because of the uptick in the market. We believe that the transparency and long-term efficiency of ULIPs continue to make them a strong investment and savings instrument. We have not experienced any significant drop in sales of ULIPs post the changed tax rules.