Investment Plans 213 views January 7, 2022

Unit-linked Insurance Plans (ULIPs) offering a unique combination of life insurance and investment have been instrumental in raising wealth for many over the last year. The premium payable towards these plans is set aside for these two purposes. Some of these plans which invested the premium in large-cap funds generated around 30% return for investors over a year. The underlying stocks of these funds have been issued by blue chip companies having sound financials. Such stocks flourished more on the back of the bullish trend witnessed across the bourses over the last year. Consequently, Sensex touched the 60,000 milestone recently. But before disclosing the best large-cap ULIP funds, let us give you an overview of ULIP investments. It will help you understand things better.

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ULIP Fund Investment Principles

ULIPs invest in equity, debt or a combination of both depending on the fund you choose. ULIP investments flow across equity, debt and hybrid funds. Equity funds invest predominantly in stocks of different market capitalizations. These funds further classify into large-cap, mid-cap, small-cap, even multi-cap categories. Large-cap funds, as mentioned earlier, invest in blue chip companies with strong business fundamentals. These companies come in the list of top 100 entities according to market capitalizations. Whereas mid-cap and small-cap funds invest in the top 101-500 and after top 500 companies according to market capitalization, respectively. Multi-cap funds are the ones that invest across market capitalizations.

What is Market Capitalization?

Above, we came across the term ‘market capitalization’ which many of us may not know. Well, it’s the value of a company’s stock that you can calculate by multiplying the price and the number of outstanding shares. So, if the company’s outstanding shares amount to 10 lakh and the unit price is INR 500, the market capitalization will amount to INR 500 crore.

Let’s Discuss the Top Performing Large-cap ULIP Funds

The list of top-performing large-cap ULIP funds includes PNB MetLife Multiplier III Fund, Kotak Life Frontline Equity Fund, Future Generali Life Pension Active Fund, etc. Let’s discuss the return, portfolio composition and other details related to these funds.

PNB MetLife Multiplier III Fund

The top-rated large-cap fund has delivered a return of 32% over the last year, with its top five holdings being Reliance Industries, Infosys, ICICI Bank, Larsen & Toubro and Bharti Airtel. All these together hold 27.45% of the assets the fund has collected so far from the investors. The latest price of these stocks is as follows –

Top StocksAsset Holdings Latest Price (In INR)
Reliance Industries7.94%2444.3
Infosys6.05%1825
ICICI Bank5.78%798.1
Larsen & Toubro3.86%1911.85
Bharti Airtel3.82%708.25

Kotak Life Frontline Equity Fund

This large-cap ULIP fund is not far behind the earlier one with a return of 31.01%. The asset size of the fund amounts to INR 12,380.33 Million. Its top five holdings together constitute 29.60% of its total asset size. Let’s check the holdings and their latest price in the below table.

Top StocksAsset Holdings Latest Price (In INR)
Infosys7.13%1818.45
ICICI Bank6.89%791
Reliance Industries6.63%2438.2
Tata Consultancy Services 5.10%3833.6
ICICI Pru Nifty ETF3.85%191.06

Future Generali Life Pension Active Fund

The fund has impressed with a 30.14% return over a year. Such returns have been made possible with effective asset allocation. Check the top five holdings of the fund, their portfolio weightage and latest price below. Take a look!

Top StocksAsset Holdings Latest Price (In INR)
Kotak Banking ETF6.71%378.3
Infosys6.31%1,808.05
Nippon India ETF Bank BeES5.95%377.66
ICICI Bank5.03%786.5
Tata Consultancy Services4.89%3,827

Note – Data sourced from MORNINGSTAR, an investment advisory firm, as on Jan 6, 2022.

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