The Hindu Business Line : Aviva Life's growth fund clocks 35% rise

Kolkata May 15 Aviva Life Insurance India's growth fund has clocked a compounded annualised growth of 35 per cent since its inception in January 2004.

The fund, which aims to provide long-term cumulative capital appreciation while managing the risk of a relatively high exposure to equities, has sought to diversify its portfolio by spreading its assets over a range of sectors.

Equities accounted for nearly 65 per cent of its net assets at the end of the March quarter. On the other hand, Aviva India's balanced fund, which has about 32 per cent invested in equities, has recorded a CAGR of 25 per cent since inception in June 2002.

Mulls new products

Aviva India, said Mr Vivek Khanna, Director, Marketing, is exploring the possibility of introducing new products, including unit-linked ones. It currently has a range of fund options, including unitised with-profits and unit-linked products.

On another front, the company has brought about a capital infusion of about Rs 190 crore. This, Mr Khanna said, will support its growth for the time being. The paid-up capital currently stands at Rs 758 crore.

To scale up branches

As for marketing, the insurer has tie-ups with about 30 banks (some of which are co-operative banks), the most recent one being with IndusInd Bank. The aim now is to scale up the number of branches to 192 from the current 156.

Roughly 65 per cent of Aviva India's business is on account of bancassurance; the company intends to tap other distribution channels more effectively.

Guaranteed plan

Aviva India has launched a product that provides a guaranteed addition of Rs 70 per Rs 1,000 sum assured for every completed year.

Christened `Dhan Vriddhi', it also ensures a 20 per cent payout of the basic sum assured as survival benefit at 5-year intervals till maturity.

The product, Mr Khanna maintained, will offer the full sum assured with accrued guaranteed additions on the death of the policyholder.

While an individual (between 13 and 55 years) may pay a minimum annual premium of Rs 5,000, the product can be bought for a term extending from 10 years to 25 years.

The minimum sum assured is Rs 50,000.

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