Skip Ribbon Commands
Skip to main content
 
NAV Formula:
 
As stipulated by IRDA, the Net Asset Value (NAV) computation formula for Linked Funds stands modified effective August 18, 2011
 
"We wish to intimate all our policyholders that pursuant to the Insurance Regulatory and Development Authority circular dated 29th July 2011 the formula for computation of the Net Asset Value Per Unit (NAV) for Linked funds stands modified as under:
 
Old Formula: (As prescribed by IRDA and as Stated in the policy document)
 
The basis used for calculation of NAV would be the Appropriation Price and Expropriation Price.
 
The Appropriation Price shall apply in a situation when the company is required to purchase the assets to allocate the units at the valuation date
 
The Expropriation Price shall apply in a situation when the company is required to sell assets to redeem the units at the valuation date.
 
The NAV per unit of each Investment Fund will be calculated as per the prevailing IRDA guidelines mentioned below
 
When Appropriation Price is applied: The NAV shall be computed as:
 
(Market Value of Investments held by the fund + The Expenses incurred in Purchase of the Assets + Value of Any Current Assets + Any Accrued Income Net of Fund Management Charges - Value of any Current Liabilities - provisions, if any)
 
Divided by the number of units existing at valuation date (before any new units are allocated)
 
When Expropriation Price is applied: The NAV shall be computed as:
 
(Market Value of Investments held by the fund - The Expenses incurred in Sale of the Assets + Value of Any Current Assets + Any Accrued Income Net of Fund Management Charges - Value of any Current Liabilities - provisions, if any)
 
Divided by the number of units existing at valuation date (before any new units are allocated)
 
Modified Formula: (As stipulated by IRDA effective August 18, 2011)
 
(Market Value of Investments held by the fund + Value of Any Current Assets - Value of any Current Liabilities & Provisions, if any)
 
Divided by the number of units existing at valuation date (before creation or redemption of any units)
 
Please note that the above change is effective 18th August 2011 and all the policy contracts issued by us (linked funds) stands modified to the above extent.
 

 
Equity Valuation:
 
As stipulated by IRDA through its circular dated 30th Oct 13, Insurer shall select from NSE and BSE as Primary and Secondary Exchanges and valuation of equity shares shall be made on closing price of the Primary Exchange selected. If such security is not listed/not traded on the Primary Exchange, Insurer shall use the closing price of the Secondary Exchange.
 
Aditya Birla Sun life Insurance Co. Ltd. (ABSLI) has adopted NSE as its Primary Exchange and BSE as Secondary exchange, thus effective 7th Nov 2013 ABSLI would change its existing equity valuation policy of using lower of the last quoted closing prices on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), at the valuation date To last quoted closing price of the primary exchange NSE.
 
The revised equity valuation policy reads as – "All traded equity shares shall be valued at the last quoted closing price on the National Stock Exchange (NSE) on valuation day. In case on any particular valuation day the scrip is not traded on NSE then the value at which it is traded on The Stock Exchange, Mumbai (BSE) shall be used. If the security is not traded on both NSE and BSE then the value at which it is traded on the earliest previous day shall be used, provided such previous day is not more than thirty days prior to the valuation day."