HDFC Standard HDFC SL ProGrowth Super II Review

Plan Summary

 

Simple ULIP Plan with Higher Charges but a good performing Opportunities Fund

 

Official Overview

You will settle for nothing but the best. Be it for self or for your loved ones. With HDFC SL ProGrowth Super II, you have a smart savings-cum-insurance plan that will help you effortlessly provide the finest for your family, be it today or tomorrow.
Advantages

• You can choose any of the following 8 plan options as per your requirement.
  • Life Option = Death Benefit
  • Extra Life Option = Death Benefit + Accidental Death Benefit
  • Life & Health Option = Death Benefit + Critical Illness Benefit
  • Extra Life & Health Option = Death Benefit + Critical Illness Benefit + Accidental Death Benefit
  • Life & Disability Option = Death Benefit + Accidental Total & Permanent Disability Benefit
  • Extra Life & Disability Option = Death Benefit + Accidental Death Benefit + Accidental Total & Permanent Disability Benefit
  • Life & Health & Disability Option = Death Benefit + Critical Illness + Accidental Total & Permanent Disability Benefit
  • Extra Life & Health & Disability Option = Death Benefit + Accidental Death Benefit+ Critical Illness + Accidental Total & Permanent Disability Benefit
• This plan provides valuable protection to your family in case you are not around. In case of your unfortunate demise during the policy term, we will pay the Sum Assured and your total fund value to your family.
• This plan can be taken by filling Short Medical Questionnaire, which may not require you to go for medicals. Kindly refer to the product brochure for details.
• You can change your investment fund choices in two ways:
  • Switching: You can move your accumulated funds from one fund to another anytime
  • Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need
• Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

Editor’s Review

HDFC SL ProGrowth Super II is a very simple ULIP Plan. Infact its so simple that there is nothing much to write about this plan. The only distinguishing feature of this plan is that it allows various combination of riders which is nothing great. Many ULIP plans in the industry give such options.

Plan Charges

This Plan has higher charges as compared to other plans in the industry. The overall net Yield is 7.59% @10% which is on the lower side considering similar products across industry. The plan charges Premium Allocation Charge of 4% every year for first 7 years i.e. 42% of one year premium in total.

The plan do not provide any loyalty or any other kind of additions over the plan term.

Fund Performance

HDFC ProGrowth Super II has higher charges compared to other ULIP Plans but lets see how its funds perform as a good fund performance can easily overcome higher charges.

The plan has two funds dedicated to Equities i.e. Blue Chip Fund (Large Cap) and Opportunities Fund (Mid Cap).These funds were launched only from January, 2010 so its not possible to have a long term analysis of these funds, but lets see how it has performed in last 1 Year or so.

Blue Chip Fund NAV at Lauch (01/01/2010) Rs. 10 Current NAV (15/4/2011) Rs. 10.5725 Yield 4.428% BSE-Sensex Yield 8.013%

Opportunities Fund NAV at Launch (01/01/2010) Rs. 10 Current NAV (15/4/2011) Rs. 11.8131 Yield 13.85%

So, the Blue Chip Fund has performed very badly as compared to BSE Sensex whereas Opportunities Fund has fared much better. However, the returns mentioned above should be taken with a pinch of salt as the fund is in existence for only over one year and we do not have long term history of the fund.

Also, out of 13.85% of yield of Opportunities fund Only around 10.51% is actually earned by you and the balance is adjusted against expenses going on the basis of the Net Yield of this product.

 

Key Features

• Simple ULIP PLan
• Large Range of Riders to choose from
• Death Benefit of Sum Assured + Fund Value

Benefits

• Good Performance of Opportunities Fund

Negatives

• Bad Performance of Blue Chip Fund
• Fund Performance based on only relatively new fund
• No historical long term fund performance available
• No Loyalty Additions
• Lower Yield Net of Charges as compared to other Industry Products

Our Recommendation

The only plus point in this plan is the good fund performance of Opportunities Fund on a relatively short term period, which may or may not be continued in the future. If we leave that out of the picture, the charges on the product are relatively high and consequently Yield Net of Charges is on the lower side. There are no loyalty additions or any other kind of incentive also.

All in all, the product can be recommended only if the opportunities fund continue its good returns, otherwise the plan feature are not anything to recommend about.

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