What is the fund management charge for ULIP?

Fund management is one of the ULIP charges that tags along when you buy a plan. It is charged for managing the fund and is levied as the percent value of the fund value. Though the charges differ from fund to fund, 1.35% is the maximum charge per annum according to IRDAI guidelines. Generally, debt-oriented ULIPs have lower fund management charges than equity-oriented ULIPs. You should also understand the fact that the charges of fund management are levied on the total amount accumulated, not the premiums paid. Thus, as the amount grows the sum deducted as fund management also grows. Moreover, the charges are deducted on a daily basis at 1/365th of the annual charges in determining the unit price.

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