Latest news with #UnitLinkedInsurancePlans
&w=3840&q=100)
Business Standard
14-05-2025
- Business
- Business Standard
Max Financial Services stock jumps 4%, hits 52-week high post Q4 results
Max Financial Services share price today: Shares of Max Financial Services (MFSL) jumped over 4 per cent to hit a 52-week high of ₹1,351 on Wednesday after the company reported in-line fourth quarter (Q4 FY25) performance, led by strong execution at its life insurance unit, Axis Max Life. At 2:30 PM, the MFSL stock was trading at ₹1,340.70, up 3.9 per cent from the previous day's close of ₹1,290.1 on the National Stock Exchange (NSE). In comparison, the benchmark Nifty50 index was trading at 24,629.10 levels, up 50.75 points or 0.2 per cent. The stock has surged over 15 per cent on a year-to-date (YTD) basis. The company's total market capitalisation stood at ₹46,269.54 crore. Max Financial Services Q4 FY25 results update The company reported a consolidated net profit of ₹31.31 crore in the quarter under review against a net loss of ₹44.05 crore during the year-ago period. However, the company's sales fell 16.87 per cent year-on-year (Y-o-Y) to ₹12,375.7 crore compared to ₹14,887.5 crore in the corresponding quarter of the previous fiscal. For the full FY25, the company's consolidated net profit declined 3.78 per cent to ₹327.21 crore in the reported quarter as against ₹340.08 crore during the year-ago period. Sales declined 0.23 per cent to ₹46,468.91 crore in Q4 FY25 from ₹46,575.62 crore during the year-ago quarter. According to analysts at brokerage Motilal Oswal Financial Services (MOFSL), Max Financial reported strong sequential growth in VNB (Value of New Business) margin due to a sequential decline in share of ULIPs (Unit Linked Insurance Plans), while the share of non-PAR savings improved Q-o-Q during Q4 FY25. For Q4 FY25, VNB came in at ₹882 crore, up 8 per cent from ₹820 crore in the year-ago period. VNB margin improved by 45 basis points to 29.02 per cent. "The proprietary channel maintained a strong growth trajectory, led by agency, cross-sell, and e-commerce. Persistency trends improved across cohorts," the brokerage said. About Max Financial Services Incorporated in February 1988, Max Financial Services, which operates as a holding company for Max Life Insurance Company, is involved in the business of investments and providing management advisory services. Focused on life insurance, it actively manages Axis Max Life Insurance Company, India's largest non-bank, private life insurance company. Axis Max Life Insurance is a joint venture between Max Financial Services and Axis Bank. Apart from life insurance, it also offers health, pension, and annuity plans. It offers child protection, retirement, savings, and growth plans to individuals and groups.
India Today
07-05-2025
- Business
- India Today
ULIPs, mutual funds or stocks: What's the best for long-term wealth creation?
When it comes to building wealth over the long term, people often come across three popular investment options: ULIPs (Unit Linked Insurance Plans), mutual funds, and stocks. But which one is truly the best for creating wealth over time? Let's break it down in simple terms. UNDERSTANDING ULIPs: A MIX OF INSURANCE AND INVESTMENT ULIPs are a mix of insurance and investment, meaning a part of your premium goes towards life insurance, while the rest is invested in various funds, like equity or debt. The key advantage of ULIPs is the insurance coverage that comes along with the investment. However, they have charges like mortality costs, higher fund management fees, and fund allocation fees. According Manish Kothari, CEO & Co-Founder, ZFunds, 'For ULIPs, the associated costs like mortality cost, higher fund management charges, higher fund allocation charges eat into investor savings. Also, ULIPs come with a minimum 5-year lock-in, making liquidity a challenge.' STRICT TERMS AND LIMITED FLEXIBILITY WITH ULIPS Also, ULIPs have stricter terms. 'Once you go in for a ULIP plan, you need to keep paying premiums without fail for three years or more before you can even take a withdrawal,' said Swapnil Aggarwal, Director, VSRK Capital. He added, 'ULIPs do not have the option to switch funds or AMC as frequently as mutual funds, either. You are well and truly stuck once you opt for a ULIP plan, and that is quite limiting during times of uncertainty in the markets.' STOCKS: HIGH POTENTIAL, BUT MORE RISK On the other hand, stocks are shares of companies listed on the stock market. Investing in stocks means you directly own a part of a company. Stocks can offer some of the highest returns over time, especially if you invest in growing companies, but they also come with more risk. Stock prices can be volatile, and short-term market fluctuations can lead to losses. Manish Kothari stated, 'For stocks, it is essential to plan the entry and exit prices. Making the right calls demands a combination of skill, research and time that the common investors might not have.' MUTUAL FUNDS: THE BALANCED OPTION FOR WEALTH CREATION This is where mutual funds have an edge. With mutual funds, you don't have to worry about market timing, and professional management helps reduce the chances of making costly mistakes. Swapnil Aggarwal, Director at VSRK Capital, agrees with this view, highlighting that mutual funds are superior to ULIPs due to their flexibility and liquidity. He mentioned, 'For long-term wealth creation, mutual funds are comparatively superior to ULIPS because of their flexibility and liquidity. While both ULIPs and mutual funds have similar overall returns, mutual funds give the investor greater freedom.' THE FLEXIBILITY OF MUTUAL FUNDS Unlike ULIPs, mutual funds allow you to invest or redeem your money at any time without being tied down for a certain period. 'With mutual funds, you have the option to invest or redeem your money at any time without being tied down for a certain period. You also have the choice of switching between the different funds or Asset Management Companies (AMCs) depending on your objectives or variation in the market,' he added. Manish Kothari, the CEO and Co-Founder of ZFunds, also believes that equity mutual funds are an ideal choice for long-term wealth creation. 'Equity mutual funds are best for long-term wealth creation as they help investors build a diversified portfolio across market caps and industries, that is managed by a professional fund manager. Having a diversified portfolio is crucial to mitigate the market risks and volatility,' said Kothari. COST-EFFECTIVENESS AND ACCESSIBILITY OF MUTUAL FUNDS Additionally, they are affordable, with fund management fees regulated and reduced as the fund size grows. You can start investing with as little as Rs 10, making them accessible to everyone, mentioned Manish Kothari. 'The open-ended design of mutual funds also enables additional investments and provides liquidity to investors. Thus, making them a more flexible option,' he added. WHICH IS BEST FOR LONG-TERM WEALTH CREATION? It really depends on your goals, risk tolerance, and investment knowledge. If you want a combination of insurance and investment, a ULIP might suit you, but if your focus is purely on wealth creation, mutual funds and stocks are usually the better options. Stocks might offer the highest potential returns, but they come with more risk and require more attention. Mutual funds provide a good middle ground with less risk and professional management. Ultimately, the best investment for you will depend on your personal financial goals and how comfortable you are with risk. Diversifying your investments across these options can also help you balance risk and return, ensuring that you're on the right path to building wealth over the long term.
