7. 7 PUNJAB COLLEGE OF TECHNICAL EDUCATION The whole Idea behind Unit Linked Pension Plan is retirement Planning . It does not have death benefit attached to it and hence has no mortality charges. To buy this plan, Investor has to pay Rs.30,000 annually. Fund Management Charges in the ULPP is 0.80% per year. Administration charges is Rs.240 pa from the second year onwards & Premium allocation charge is 2.5% pa.
8. PUNJAB COLLEGE OF TECHNICAL EDUCATION 8 SIP may be the right way to build a long –term Portfolio. It is a way to invest in Mutual Funds regularly. The investors save regularly & build an Investment. Under SIP, an investor has to invest Rs.2,500 monthly for 20 years in an Equity diversified mutual fund scheme. The FMC is decreasing over a long term period of time. It is 2% for the first 5 years, 1.75% for the next 5 years & 1.5% for the remaining period thereafter. Thus Pension Plans score over MFs in Long run because of its low FMC.
