Any fund that guarantees some money has to ensure that they invest a major portion of the money collected into some debt instruments. They cannot be investing a larger chunk of your money into equity and GUARANTEE returns at the same time. So, to answer ramesh’s question, ICICI might not report lesser profit but may not run in parallel with the sensex. Ask for the portfolio of the fund and you would understand where ICICI has invested the fund amounts.

As Mohit says, whenver you are investing into any funds, always check the percentage of money thats getting allocated. There are some policies from Bajaj wherein you would be paying 25,000 as yearly premium, and after a year you would find that your fund value is only about Rs.15,000. In this case, the company has consumed about 50% of your premium as FUND allocation charges (in simple terms, Bajaj has taken 12,500/- out of your 25,000 premium towards their own pocket claiming it to be administration charges etc.,).

Same applies for all other insurance companies too. Each one has a product wherein the premium allocation is very high and also low. So its upto the customer to ask for these details first before going with the policy. There are some policies with bajaj where in 94% is getting allocated to your account while only 6% goes for premium allocation charges.

So before you buy any policy, put down all the variables that you need to analyse in an excel sheet. Then fill up the values from each of the company providing such similar policies and compare them. INSURANCE is very important and is considered to be for long term savings. So please give very high focus and priority for this.

I am not into any insurance company and I dont market any products either. Bajaj was an example as I had seen their policy brochures already.