How to create wealth in short term-Illustration(Part2)

Read this first to understand the below illustration...

Scenario 1 – Lowest recorded unit purchase in the next 12 months.
Age – 30
Net Invested Premium – 1lac p.a,
Premium paying term – 5yrs
Plan Term – 10yrs

1st year Net invested premium is 1lac and assuming the unit price at the time of entering into the plan is 10rs.
Assuming that in the next 12 months, the unit price of the fund touched a low of 6rs and ended at 11.50rs.
Instead of normal unit allocation of 10000units, you will get units purchased at the rate of 6rs.
So you will get 16667 units in the 1st year.

2nd year Net invested premium is 1lac and the unit price at the time of purchase is 11.50rs.
Assuming that in the next 12 months, the unit price of the fund increased and ended at 13.50rs.
You will get units purchased at the rate of 11.50rs.
So you will get 8696units in the 2nd year.

3rd year Net invested premium is 1lac and the unit price at the time of purchase is 13.50rs.
Assuming that in the next 12 months, the unit price of the fund decreased and ended at 9.75rs.
You will get units purchased at the rate of 9.75rs.
So you will get 10256 units in the 3rd year.

4th year Net invested premium is 1lac and the unit price at the time of purchase is 9.75rs.
Assuming that in the next 12 months, the unit price of the fund increased and ended at 14.75rs.
You will get units purchased at the rate of 9.75rs.
So you will get 10256 units in the 4th year.

5th year Net invested premium is 1lac and the unit price at the time of purchase is 14.75rs.
Assuming that in the next 12 months, the unit price of the fund increased and ended at 18.50rs.
You will get units purchased at the price of 14.75rs.
So you will get 6780 units in the 5th year.

Now total of all the units accumulated is 52655.
The NAV at the end of 5th year is 18.50rs.
So fund value= total number of units*Current unit price
52655*18.50=974117.50

Almost close to double the invested amount in this illustration!!!
Scenario 2 – Highest recorded NAV in the last 7yrs.

As in the above illustration, we could see that at the end of 5th year the NAV price is at 16.50rs.
Assuming that in the next 2 years, if the NAV peaks to 22rs and comes back to 18rs also.
You will get, total number of units*Highest recorded NAV in last 7years.
52655*22=1158410.

Scenario 3 – Unit Price at maturity.

At the time of maturity if the NAV is 30rs, which is higher than the other 2 scenarios mentioned above.
You will get, total number of units*Unit price at maturity.
52655*30=1579650.

So an investment of Rs.500, 000 will give you Rs.1, 579,650/- within a period of 10years!!!

The above mentioned profits are completely tax free!!!

Above all these benefits, if you pay 5 premiums at once you will get 10% of the total premiums as cash back on the spot!!!

Please note that all the above mentioned figures are only for understanding and for illustration purpose only and the returns may vary depending on the invested amount and market fluctuations.