Covering Them All

ICICI Prudential Pinnacle Super is a low-priced scheme bundled with a lot of investment options and strategy to cater to all kind of investors. Those who are looking for modest returns can consider this policy

Launched in March 2011, ICICI Pru Pinnacle Super also mirrors most other guaranteed net asset value (NAV) unit-linked schemes in the market. The unique proposition of this product is the varied investment option and strategies available under the scheme.

Pinnacle Super offers two types of investing strategy including fixed portfolio and smart trigger portfolio strategy. Further, under fixed portfolio, policy holders have the option of seven funds to invest in. Smart trigger portfolio strategy books gains made in equity markets and reinvest the gains in the choice of fund.

Also, there are three types of guarantees on offer for the investor. These include highest guarantee NAV, 110% of the guaranteed NAV and highest NAV recorded on a daily basis subject to a minimum of Rs 15.

The cost structure of Pinnacle Super is lower compared to other similar schemes. The investment option does not attract any extra charge. Further, transfer from one investment strategy to another once in every policy year is free of cost. However, the three types of guarantees do attract an extra charge of 0.5%. Since it is more of an investment scheme, investors will be better off taking a lowest death benefit as the mortality charge is 1.25 times that of LIC charge.

Unlike most other insurance companies, ICICI gives loyalty units at 2% of fund value on maturity as an incentive to policyholders. A few other benefits include:
1) Increase or decrease of sum assured anytime within the policy tenure.
2) Additional riders such as critical illness and waiver of premium benefit on payment of additional charge

Pinnacle Super offers a range of funds for the investor. The equity basket is larger than that of debt funds. Most of the equity-oriented funds have more than 80% equity exposure. However, only a few of these have outperformed their respective benchmarks. Of the four equity funds, multi-cap growth and dynamic P/E fund are the one that has shown impressive returns, while bluechip fund, which aims to invest in Nifty stocks, has been a laggard. Opportunity fund has an interesting investment objective of investing in resources, consumption-related, investment-related industries. This fund has the potential to do well in the near term. The performances of debt-oriented income fund and money market fund have better than their benchmark.

ICICI Prudential clearly boasts of a large-cap equity portfolio having invested into many of the prime blue-chip equity stocks. Like others, ICICI''s portfolio is also highly exposed to banking and oil and gas sector. Interestingly, the portfolio has always been highly bullish on metal sector, which has been quite volatile sector. While some other like healthcare sector, a relatively low beta sector, fails to catch the attention of fund manager.

Upon maturity, the policyholder receives the accumulated fund value. If you have selected the highest NAV guarantee fund option, the fund value will be computed on the basis of, highest NAV, 110% of the highest NAV or NAV whichever is higher of Rs 15 or the highest NAV during the initial seven years of fund.
However, if the free asset allocation strategy is selected, then the fund value will be the corpus prevailing in the investment option on the date of the maturity.
On sudden demise of the policyholder, the nominee will receive higher of the sum assured or the fund value in case of single premium. However, if the policyholder has opted for a five year limited premium option, then the death benefit is a sum of both sum assured and fund value.

Pinnacle Super is a low-priced scheme bundled with a lot of investment options and strategy to cater to all kind of investors. However, the fact is that as the guarantee is provided, the scheme is managed in a conservative manner. Investors looking for modest returns, like 8-10%, can invest in this policy. Those who are not opting any guarantee should opt for dynamic P/E or multi cap growth fund to maximise returns.

Skandita Agrawal