2.3 Maintain Fund Investments Component

This topic provides information on maintaining fund investments component details.

To validate the Prudential Investment Guidelines it is mandatory to define the various investment components that constitute the fund investment for a product or policy. Investment components are a division of the fund that is allocated for investment in policies. These components may be individual components or a combination of two or more components. Based on the relation of the allotted fund characteristic, these components are allotted a percentage or ratio, which describes the relation of these funds to the total Fund Investment.

Refer the chapter Prudential Investment Guidelines Standard and FOREX Compliance, in the LEP user guide for more information on maintaining Prudential Investment Guidelines and forex compliance.

To maintain the Fund Investment Components, you need to:

  • Define the various investment components as part of system parameters maintenance under the parameter code INVESTMENTCOMP.
  • Specify the Investment component code and its corresponding description.

Note:

The system does not differentiate onshore/offshore components at this level.

You need to maintain ratios for respective investment components type according to the following considerations:

  • The total sum of these ratios must be equal to 100.
  • The list of Investment Components is available as per the system parameters maintenance.
  1. On Home screen, type UTDFICRM in the text box and click Next.
  2. Select New from the Actions menu in the Application tool bar or click New icon to input the details of the fund component.
    The Fund level Investment Components – Ratio Maintenance Detail screen is displayed.

    Figure 2-45 Fund level Investment Components – Ratio Maintenance Detail


    Description of Figure 2-45 follows
    Description of "Figure 2-45 Fund level Investment Components – Ratio Maintenance Detail"

  3. On Fund level Investment Components – Ratio Maintenance Detail screen, specify the fields.
    For more information on fields in the screen, refer the below table.

    Table 2-87 Fund level Investment Components – Ratio Maintenance Detail

    Field Description
    Fund ID Alphanumeric; 6 Characters; Mandatory

    Specify the Fund ID. Alternatively, you can select fund ID from the option list. The list displays a record of all stored fund types.

    Fund Level Investment Components - Ratio Maintenance

    After selecting the required fund types you are provided with the records matching the input information specified to the system.

    Table 2-88 Fund level Investment Components – Ratio Maintenance Detail

    Field Description
    Component Type Alphanumeric; 3 Characters; Optional

    Specify the Component Type. This adjoining option list displays all valid component type maintained in the system. You can choose the appropriate one..

    Investment Component Display

    The portion of the allocated Fund investment is displayed here as the Investment component.

    Percentage Numeric; 5 Characters; Optional

    This is the ratio or percentage of the Total Investment Fund including the selected component. It should be input as 100.

  4. After capturing these details, click Ok button to save the component.

Parent topic: Fund Rules Setup