HDFC SL Crest : Simple case study to understand if it’s a good plan for you

HDFC has launched a new scheme, SL Crest which is an invest cum insurance plan but for the first time a plan guarantees Highest NAV with a minimum NAV assured.  Here are few basic facts :HDFC SL Crest Bank

  1. Offer price is Rs 10 on date of launch.
  2. Highest NAV Guarantee option is Rs 15 or the Highest NAV during the first seven years of the plan.
  3. The plan matures in 10 years.
  4. Minimum Premium paying term is 5 years which is paid annually.
  5. Minimum premium amount is 50 thousand INR.
  6. You can withdraw your investment minimum after five years but you get it at current NAV and not the highest. That means if current rate is 13 which is less than 15, you get 13 and not 15. However this also means that if the rate is 18 you get 18 not 15.
  7. To get the Maximum NAV benefit, you should withdraw only at the end of seventh year,.
  8. Sum Assured is 10 times the annual premium. This means if your premium is 10K your insurance is 1 lakh.

Below I have taken some sample conditions to understand how CREST will perform and what percentage of profit you will get. Also I am comparing it with NSC which gives me 8% interest yearly.

Assumptions to make calculation simpler :

  • I have taken sample NAV values to calculate for first five years.
  • I am considering a period of Five Years for profit calculation.
  • 10 thousand as minimum premium.

Profit Percentage after Five Years (  but you withdraw money at the end of Seven Years )

HDFC SL Crest Calculations.

Assuming that maximum NAV went to Rs 17 in Five years which is more than guaranteed NAV of 15, one can make a profit of 25%.


NSC Calculations :

Investing same amount of premium to buy NSC every year gives you a guaranteed income of 17200 on same investment amount. Here you have a profit of 34.4%.

NSC Income

Now for HDFC SL Crest to beat the NSC income in this scenario, the NAV should reach 67200/3691 = 18.2

What if you withdraw at the end of Seven Years :

According to the the scheme, if you keep the investments till 7 complete years, you will get the benefit of Maximum NAV which means if NAV at the end of 7th year is 12 but during this period it was 23 you get the money according to 23 NAV.

What if you withdraw after Five Years :

In this case you do not get the benefit of maximum NAV so if the NAV at the end of Fifth year is 15 you get 3691 * 15 = 55365 where income is 5365 i.e. 10% but way less than NSC.

However if the NAV is more then 15 say for example 18 or 19 you make almost the same what NSC gives you in profit.

This is a lucky scenario where if you see that you get good profit you can make a quit without keeping the investment for another two years. Lets say if you get NAV of 25 you make 3691*25 = 92275 where you get 42K which is like 90% profit. Good Deal.

What if you withdraw before Five years :

In case for some reason you have to withdraw before five years, you will get interest of 3.5% PA which is same as Bank Interest for savings account and there will be some charges applicable for discontinuing the policy.

Conclusion :

HDFC SL Crest looks like a good plan if opted for seven straight years or if you have NAV greater than 18.2 so that you get much more benefit than what you would have got from NSC itself.  Another great feature of this plan is 30 days trial period before which you can opt out if you don’t find it useful.

Year Investment NAV Unit
1st 10000 10 1000
2nd 10000 13 769
3rd 10000 15 667
4th 10000 17 588
5TH 10000 15 667
Total 3691
Total Unit 3691
Highest NAV 17
Investment 50000
Return Value 62747
Profit Percentage 25%


  1. Hi,
    Nice comparison, however, there are quite a few charges applicable to this scheme like ALLOCATION CHARGE,FM CHARGE,PA CHARGE,GUARANTEE CHARGE,
    MORTALITY CHARGE which are not taken into account. Considering these charges, the number of units offered will be lesser impacting the return further.



  2. I have invested in HDFC SL crest with Highest NAV option in Jan 2011. Are the unit price same for all investors or does it differ for each investor? What is the highest unit price attained since launch?

  3. Crest is the most safe Unit Linked Insurance Plan ?
    Charges : IRDA says in any united linked plan where term is less then 10 years, Insurance company cannot take more then 2.95% of (Investment Amount + Returns on Investments)

    Next ,They say Rs.15 Garanteed on every Unit you hold in account.

    Year 1 Nav Rs.10
    Year 2 Nav Rs.11
    Year 3 Nav Rs.12
    Year 4 Nav Rs.13
    Year 5 Nav Rs.14

    Above is as assumed NAV growth Year on Year.

    Averge Cost of Unit (Sum of each years NAV which is Rs.60 divided by 5 years. Therefore each unit will Cost Rs.12 on an average.

    Company gives Rs. 15 therefore a profit of Rs.3 on each unit one holds. Therefore bare minimum profit in terms of percentage will be
    Rs.3 divided by Rs. 12 * 100 = 25% for 10 years. Further divide 25% /10 years = 2.5% as % return.

    Which means your charges are almost recovered. When HDFC SLIC gives garantee of rs. 15 on every unit you hold.

    Actual Profits will be only if, Markets Fall In first 5 years and you are able to buy more units and less price.Or When Unit Value touches at least Rs20. Which is realistic figure in 10 yrs time.

    If one ends up buying units in positive market ie. above Rs. 10 but not over Rs.15. and Maturity Unit Value is 15. Then this investment will work like a capital protection garantee. But if NAV goes beyond 20 0r more you are sure to book profits.

    If you end up buying units in negative market ie below rs.10 where your average would be lets say 8/7 or even 6 … you will surely book a profit.

  4. I am new to market investments.
    My doubt is, can a mutual fund company manipulate the NAV of such highest NAV funds in such a way that it may not grow beyond certain limit.
    For example, just in continuation to your above calculation, is it possible for the company to manage the fund is such a manner that the NAV may not grow beyond Rs 20. I feel, the way NAV is calculated on daily basis, it should not be possible. Just wanted to be extra sure.

  5. i have purchased 2 hdfc sl crest
    one is fixed NAV
    and other is free assest allocation type.
    how can i check the nav and switch in free assest allocation.
    please guide

  6. I have paid a premium of 5 lakhs for the HDFC SL CREST plan.
    However I am planning to discontinue the plan at the end of one year.
    How much can I expect to get after 5 YEARS when my funds are moved to the DISCONTIUED POLICY FUND after DISCONTINUANCE CHARGES and FUND MANAGEMENT CHARGE OF 0.5 % per annum is levied and interest rates as on a Saving bank accounts are applied to the fund.

  7. Hi, thanks for this simple explanation. I just want to understand one thing about NSC. In your example, it says that in first year, you invest 10000, your return is 16000. Can you explain this how we are getting 16000 return in first year while investing only 10000 ?

  8. THanks Pankaj for detials on HDFC SL crest. Juts one point your calculation on NSC does not look right . NSC you get 8.35 % /annum does not match with your table , first year you get zero second 8350 , and so on Thanks Amit Vashisht

  9. This is just a pacca cheating investment by HDFC .

    There is a sample case study mentioned above which is just a fraud case .

    Let me explain with my Sample case study. Lets say you have invested 1 Lakh each per year from 2010 December onwards in HDFC SL crest and in a standard bank Fixed deposit(9% per annum in SBI).
    At the end of 10 years (2020 dec), if the NAV is still below 15, we will get 15 per unit, then you get around 7.2 Lakhs from SL Crest ..
    On the other hand, if you keep on investing in Fixed deposit each december till 2015, you will be getting around 11.2 Lakhs from the Fixed deposit. and this is a guaranteed return by Dec 2020.
    If you need to get atleast 11.2 L from HDFC, the unit price should have touched Rs21 in between 2010 and 2017…. and its now almost 2013, 3 years (almost half) have passed in the time period of 2010 – 2017, and the NAV has the highest value till now as Rs10.12 … and there is nt a clear picture on how this value is obtained (might be that the top level of people will count their diseases and decide on how much the value is) and they r saying in the above case study that it will touch 17 … what a bloody cheating case it is… frauds… so Please do not invest in these fraud agencies if you value your money and earned it using righteous ways… I am an engineer from NIT calicut and I have worked for 2.5 years in a MNC at bangalore .. I have lost Rs 1 lakh to these frauds … and the agent in not replying now …. dont go into this trap …

  10. Hdfc invests about 90% of premium amount for first 5 years. I feel that they are manuplating the NAV willfully. It is hightime, IRDA should investigate HDFC SLIC schemes and penalise them. In spite of all the manipulations, the above company is understood to be making losses. HDFC SLIC is for their employees and Agents and their least priority is Customers.

  11. this is total fraud by HDFC , i am investing 50000 from 2013 and if i have invested in fixed deposit it would be way more return i have recived what is i am getting curretly which is less then 5%.


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